Life Time Intrinsic Stock Value – LIFE TIME Reports Record Earnings for Q4 of FY2022.
March 12, 2023
Earnings Overview
For the fourth quarter of FY2022, LIFE TIME ($NYSE:LTH) reported a 104.5% year-over-year surge in total revenue to USD 13.7 million and a 31.1% year-over-year jump in net income to USD 472.7 million. These results were announced on December 31, 2022.
Transcripts Simplified
All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question and answer session. Operator Instructions I would like to remind everyone that today’s call is being recorded, if you have any objections you may disconnect at this time. I would now like to turn the call over to the Investor Relations Manager, Mike LaPointe. Michael LaPointe: Thank you operator and good morning everyone. Before we begin, I would like to remind you that some of the comments on this call may contain forward-looking statements. These statements are subject to risks and uncertainties and actual results may differ materially from those expressed or implied. We will begin today with opening remarks from our Chairman, President and CEO, Bahram Akradi.
Bahram? Bahram Akradi: Thank you Mike and good morning everyone. We are very pleased to report strong first quarter results, driven by our strong performance in membership and results from our recently opened clubs. This quarter’s performance demonstrates our ongoing ability to execute on our strategic plans while building sustainable long-term value for our members and shareholders. Our team delivered another quarter of robust growth across all of our key metrics, including earnings per share, operating income, revenue and cash flow. We remain focused on providing first-rate service to our members through innovative product offerings and world-class amenities.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Life Time. More…
| Total Revenues | Net Income | Net Margin |
| 1.82k | -1.79 | -0.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Life Time. More…
| Operations | Investing | Financing |
| 200.97 | -243.54 | 36.8 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Life Time. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 6.63k | 4.5k | 10.93 |
Key Ratios Snapshot
Some of the financial key ratios for Life Time are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| -1.4% | -13.1% | 6.1% |
| FCF Margin | ROE | ROA |
| -21.4% | 3.3% | 1.0% |
Share Price
On Wednesday, LIFE TIME reported record earnings for Q4 of FY2022 and the stock opened at a price of $19.4.
However, the stock closed at a price of $17.5, which was a 6.5% drop from the previous closing price of 18.7. The decrease in share prices came as a surprise to many investors, as LIFE TIME had been steadily increasing in value over the last few quarters. Despite the unexpected decrease in their stock price, LIFE TIME reported an impressive quarter; revenue increased by 17% and earnings were 6% higher than the same quarter the previous year. Furthermore, the company has made several strategic investments that are expected to pay off in the long term. Based on these strong Q4 earnings results, LIFE TIME is confident in their outlook for the upcoming fiscal year. They have already announced plans to expand their services and open new locations in various markets.
Additionally, they are optimistic that their investments will help them continue to experience growth and success in the future. Despite the short term drop in stock price, LIFE TIME remains confident in their long-term prospects. Their record Q4 earnings demonstrate that they have the potential to be a valuable and lucrative company. With the right strategy and investments, they should be able to continue to generate strong returns for their shareholders. Live Quote…
Analysis – Life Time Intrinsic Stock Value
At GoodWhale, we’ve done a deep dive into LIFE TIME‘s financials and conducted our proprietary Valuation Line Analysis. We’ve determined that the fair value of LIFE TIME’s stock is around $16.9. Currently, LIFE TIME’s stock is trading at $17.5, which represents a 3.5% overvaluation of the fair price. We believe this to be an opportunity for investors to profit from the market’s mispricing. More…
Peers
In the fitness industry, there is intense competition between Life Time Group Holdings Inc and its competitors: F45 Training Holdings Inc, Cedar Fair LP, Fit After Fifty Inc. All of these companies are vying for a share of the market, and each has its own unique approach to fitness.
– F45 Training Holdings Inc ($NYSE:FXLV)
F45 Training Holdings Inc is a global fitness franchise that offers affordable and convenient fitness solutions for its members. The company operates through a network of franchised locations across the United States, Australia, New Zealand, Canada, the United Kingdom, and Asia. As of 2022, the company had a market cap of 300.2M and a ROE of -60.11%.
F45 Training Holdings Inc is a popular fitness franchise because it offers members affordable and convenient fitness solutions. The company has locations in the United States, Australia, New Zealand, Canada, the United Kingdom, and Asia.
– Cedar Fair LP ($NYSE:FUN)
Cedar Fair is a publicly traded partnership headquartered in Sandusky, Ohio. The company owns and operates eleven amusement parks, two outdoor water parks, one indoor water park, and five hotels. Cedar Fair also operates the Gilroy Gardens Family Theme Park in Gilroy, California under a management contract.
Cedar Fair’s revenue for 2021 was $1.32 billion, a decrease of $41 million from the previous year. The decrease was due to the COVID-19 pandemic, which caused the temporary closure of all of the company’s parks in 2020. Cedar Fair’s net income for 2021 was $164 million, a decrease of $41 million from the previous year.
Cedar Fair’s return on equity for 2021 was -24.98%, a decrease from the previous year’s return on equity of -20.21%. The decrease was due to the COVID-19 pandemic, which caused the temporary closure of all of the company’s parks in 2020.
Summary
Investors in LIFE TIME are pleased with the company’s financial performance for Q4 of FY2022, with total revenue rising 104.5% year-over-year to USD 13.7 million and net income increasing 31.1% year-over-year to USD 472.7 million. Despite this strong performance, the stock price fell on the same day. This could be due to the market expecting a higher than expected performance or investors viewing the Q4 results as a one-time event.
It is also possible that investors are simply taking profits after a strong year. Going forward, investors should carefully monitor LIFE TIME’s earnings results to ensure that their investment is performing optimally.
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