CHANHASSEN, Minn.,
July 1,
2024 /PRNewswire/ --
Life Time Group Holdings,
Inc. ("Life Time" or the "Company") (NYSE: LTH) announced
that on Friday, June 28, 2024, it
closed on a sale-leaseback transaction for two properties totaling
$90 million in gross proceeds. This
transaction brings the Company's total gross proceeds from
sale-leasebacks to $130 million
year-to-date. The Company is also in negotiations for additional
sale-leasebacks with expected gross proceeds of $40-$65 million,
which it expects to close by the end of the third quarter. Terms
are similar to recent transactions.
The majority of the proceeds from this transaction will be used
to reduce debt and accelerate the timing for the Company to achieve
its priority of a net debt-to-Adjusted EBITDA leverage ratio under
3 times. The continued strong financial performance of the
Company's business will be more than sufficient to cover the
incremental rent expense from these transactions.
"We are excited that we are on track to deliver positive free
cash flow in the second quarter even without the proceeds from
these sale-leasebacks," said Life Time Founder, Chairman, and
CEO, Bahram Akradi. "These sale-leaseback transactions will
additionally support the great progress we are making towards
reducing our net debt-to-Adjusted EBITDA leverage ratio to under 3
times sooner than expected, and we are confident that we will grow
our revenue and Adjusted EBITDA by low double digits while
continuing to deliver positive free cash flow."
About Life Time
Life Time (NYSE: LTH) empowers people
to live healthy, happy lives through its portfolio of more than 170
athletic country clubs across the United
States and Canada. The health and wellness pioneer also
delivers a range of healthy way of life programs and information
via its complimentary Life Time Digital app. The Company's healthy
living, healthy aging, healthy entertainment communities and
ecosystem serve people 90 days to 90+ years old and is supported by
a team of more than 39,000 dedicated professionals. In addition to
delivering the best programs and experiences through its clubs,
Life Time owns and produces nearly 30 of the most iconic athletic
events in the country.
Forward-Looking Statements
This press release includes
"forward-looking statements" within the meaning of federal
securities regulations. Forward-looking statements in this press
release include, but are not limited to, the Company's plans,
strategies and prospects, both business and financial, including
its priorities for 2024, growth, improvements to its balance sheet,
net debt and leverage ratio, free cash flow, rent expense, and
successful signings and closings of sale-leaseback transactions
(including the amount, pricing and timing thereof). These
statements are based on the beliefs and assumptions of the
Company's management. Forward-looking statements are inherently
subject to risks, uncertainties and assumptions. Generally,
statements that are not historical facts, including statements
concerning the Company's possible or assumed future actions,
business strategies, events or results of operations, are
forward-looking statements. These statements may be preceded by,
followed by or include the words "believe," "expect," "anticipate,"
"intend," "plan," "estimate" or similar expressions. In addition,
any statements or information that refer to expectations, beliefs,
plans, projections, objectives, performance or other
characterizations of future events or circumstances, including any
underlying assumptions, are forward-looking.
Factors that could cause actual results to differ materially
from those forward-looking statements included in this press
release include, but are not limited to, risks relating to our
business operations and competitive and economic environment, risks
relating to our brand, risks relating to the growth of our
business, risks relating to our technological operations, risks
relating to our capital structure and lease obligations, risks
relating to our human capital, risks relating to legal compliance
and risk management and risks relating to ownership of our common
stock and the other important factors discussed under the caption
"Risk Factors" in the Company's Annual Report on Form 10-K for the
year ended December 31, 2023, filed
with the Securities and Exchange Commission (the "SEC") on
February 28, 2024, (File No.
001-40887), as such factors may be updated from time to time in the
Company's other filings with the SEC, which are accessible on the
SEC's website at www.sec.gov. These and other important factors
could cause actual results to differ materially from those
indicated by the forward-looking statements made in this press
release. Any forward-looking statement that the Company makes in
this press release speaks only as of the date of such statement.
Except as required by law, the Company does not have any obligation
to update or revise, or to publicly announce any update or revision
to, any of the forward-looking statements, whether as a result of
new information, future events or otherwise.
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SOURCE Life Time Group Holdings, Inc.