DEF: Life Time Group Holdings Announces 2025 Annual Meeting and Executive Compensation Details

Life Time Group Holdings invites stockholders to its 2025 annual meeting on April 25, 2025, detailing director elections, executive compensation, and auditor ratification.

Summary

• Life Time Group Holdings, Inc. will hold its 2025 annual meeting of stockholders virtually on April 25, 2025.
• The meeting will include the election of four Class I directors, an advisory vote on executive compensation, and ratification of Deloitte & Touche LLP as the company's independent auditor for the fiscal year ending December 31, 2025.
• In 2024, Life Time experienced record levels of member engagement and retention, expanded its number of centers in an asset-light manner, strengthened its financial position through equity and debt transactions, and significantly reduced its leverage ratio.
• For 2025, the company plans to continue growing revenue and profitability and executing its asset-light growth strategy.
• The Board of Directors recommends stockholders vote for the election of the director nominees, approval of the executive compensation, and ratification of the selection of Deloitte & Touche LLP.
• The company's executive compensation program is designed to motivate, reward, attract, and retain high-caliber executives responsible for driving the company's success.
• The Board of Directors has determined that each of our directors other than Mr. Akradi, Mr. Landau and Mr. Lasher qualifies as independent in accordance with the NYSE rules.
• The Principal Stockholders collectively continue to beneficially own more than 50% of our common stock and voting power.

Sentiment

Score: 8

Explanation: The document expresses a positive outlook, highlighting strong financial performance, strategic growth plans, and commitment to stakeholder value. The tone is optimistic and confident.

Positives

• Life Time experienced record levels of member engagement and retention.
• The company strengthened its financial position through equity and debt transactions.
• Life Time significantly reduced its leverage ratio from 3.6 to 2.3.
• Total revenue increased more than $400 million or 18.2% to over $2.6 billion.
• Adjusted EBITDA increased $140 million to $676.8 million.
• The company achieved a 6.0% net income margin and a 25.8% Adjusted EBITDA margin, both of which exceeded the 3.4% net income margin and 24.2% Adjusted EBITDA margin in 2023.
• The company ended the year with 866,085 total memberships, up approximately 6.3% from the end of 2023.

Risks

• The Principal Stockholders collectively continue to beneficially own more than 50% of our common stock and voting power.
• As a controlled company we may elect not to comply with certain NYSE corporate governance requirements, including: that a majority of the Board of Directors consist of independent directors; that the Board of Directors have a nominating and corporate governance committee that is composed entirely of independent directors with a written charter addressing the committees purpose and responsibilities; that the Board of Directors have a compensation committee that is composed entirely of independent directors with a written charter addressing the committees purpose and responsibilities; and that we have an annual performance evaluation of the nominating and corporate governance committee and compensation committee.

Future Outlook

For 2025, the company plans to continue growing revenue and profitability and executing its asset-light growth strategy in both existing and new markets.

Management Comments

• We are proud of our performance in 2024.
• Our financial results continue to demonstrate the strong desirability for our athletic country clubs, programs, services, products and events.
• We are well-positioned this year to build upon the success of 2024.
• We remain grounded in our more than 30-year commitment to provide our members with unparalleled experiences that allow them to achieve healthier, happier lives through our comprehensive Healthy Way of Life ecosystem featuring the best places, people and programs.
• Our leadership team, board of directors and I remain as committed as ever to grow long-term value in our company and we believe we are well positioned for success.

Industry Context

The announcement highlights Life Time's focus on the healthy lifestyle and leisure market, emphasizing member engagement, retention, and expansion through asset-light strategies, aligning with broader trends in the fitness and wellness industry.

Comparison to Industry Standards

• The document does not provide specific comparisons to industry standards in terms of financial metrics or operational performance.
• However, the peer group used for executive compensation benchmarking includes companies like Cedar Fair, Marriott Vacations Worldwide, Six Flags Entertainment, Hilton Grand Vacations, Norwegian Cruise Line Holdings, Vail Resorts, Hilton Worldwide Holdings, RH, Hyatt Hotels Corporation, Royal Caribbean Cruises, Wyndham Hotels & Resorts, Lululemon Athletica, SeaWorld Entertainment, and Wynn Resorts, suggesting that Life Time benchmarks itself against companies in the hospitality, leisure, and retail sectors.
• The document does not provide specific comparisons to industry standards in terms of financial metrics or operational performance.

Related Party Transactions

• The company leases a center from a general partnership in which Mr. Akradi has a 100% interest.
• The company leases a center from subsidiaries of LTRE, a limited liability company jointly owned by Mr. Akradi and Mr. Lasher.
• The company has sale-leaseback transactions with entities related to LNK, Mr. Akradi, and Mr. Lasher.
• The company purchases products and services from companies in which holders of more than 5% of its common stock have a material interest, including Halo Branded Solutions, DIRECTV, Tecta America Corporation, Global Music Rights LLC, ImageFIRST Uniform Rental, Insight Global LLC, HUB International, and Parts Town, LLC.

Stakeholder Impact

• Shareholders are invited to participate in the annual meeting and vote on key proposals.
• Employees are impacted by the company's compensation programs and benefit plans.
• Customers benefit from the company's focus on providing unparalleled experiences and a comprehensive Healthy Way of Life ecosystem.
• Suppliers and creditors are affected by the company's financial performance and strategic decisions.

Next Steps

• Stockholders are encouraged to vote on the proposals outlined in the proxy statement.
• The company will continue to execute its growth strategy and focus on member engagement and retention.
• The company will monitor and adapt its executive compensation program to align with performance and stakeholder interests.

Key Dates