DEF 14A: Life Time Group Holdings Sets Date for 2024 Annual Stockholders Meeting, Highlights 2023 Achievements

Life Time Group Holdings invites stockholders to its virtual annual meeting on April 26, 2024, highlighting record revenue and profitability in 2023 and strategic objectives for 2024.

Summary

• Life Time Group Holdings will hold its 2024 annual meeting of stockholders virtually on April 26, 2024.
• The meeting will address the election of four Class III directors, an advisory vote on executive compensation, and ratification of Deloitte & Touche LLP as the independent accounting firm.
• In 2023, Life Time achieved record levels of revenue and profitability, exceeding financial goals and improving its balance sheet.
• The company opened 11 new locations and focused on strategic programming initiatives to enhance member engagement.
• For 2024, Life Time plans to continue improving its balance sheet, growing revenue and profitability, and executing its asset-light growth strategy.
• The company's commitment to providing members with a comprehensive Healthy Way of Life ecosystem remains steadfast.

Sentiment

Score: 9

Explanation: The document expresses a highly positive sentiment due to the company's strong financial performance, strategic achievements, and optimistic outlook for the future.

Positives

• Life Time achieved record revenue and profitability in 2023.
• The company successfully executed its asset-light growth strategy.
• Member engagement increased significantly.
• The company is committed to diversity, equity, and inclusion.
• The company has a strong focus on corporate responsibility and ESG initiatives.

Risks

• The company is a controlled company, which may limit stockholder protections.
• Related person transactions present a heightened risk of conflicts of interest.
• The company's success depends on attracting and retaining key talent.

Future Outlook

Life Time plans to continue improving its balance sheet, growing revenue and profitability, and executing its asset-light growth strategy in 2024.

Management Comments

• Bahram Akradi, Founder, Chairman and Chief Executive Officer: '2023 was an incredible year for Life Time. We achieved our operating and strategic objectives and exceeded our financial goals, including setting record levels of revenue and profitability.'
• The 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

Life Time's focus on premium member experiences and strategic programming initiatives aligns with the broader trend of health and wellness companies differentiating themselves through personalized and engaging offerings.

Comparison to Industry Standards

• Life Time's Adjusted EBITDA margin of 24.2% exceeds its 2019 pre-pandemic margin of 23.0%.
• Comparable companies in the fitness and leisure industry, such as Planet Fitness and Xponential Fitness, also emphasize membership growth and revenue per member, but Life Time differentiates itself with its premium, comprehensive Healthy Way of Life ecosystem.
• Other companies in the broader hospitality and leisure sector, such as Hilton and Marriott, focus on customer loyalty and experience, which are similar to Life Time's emphasis on member engagement.

Management Changes

Related Party Transactions

• The company leases a center from a general partnership in which Bahram Akradi has a 100% interest.
• The company leases a facility from a limited liability company jointly owned by Bahram Akradi and Stuart Lasher.
• The company has sale-leaseback transactions with entities related to LNK and Bahram Akradi.
• The company purchases products and services from companies in which holders of more than 5% of its common stock have a material interest.

Stakeholder Impact

• Shareholders: The company's strong financial performance and strategic initiatives are expected to drive long-term value.
• Employees: The company is committed to diversity, equity, and inclusion, creating a positive and supportive work environment.
• Members: The company is focused on enhancing member engagement and providing a comprehensive Healthy Way of Life ecosystem.

Next Steps

• Stockholders are encouraged to vote on the proposals outlined in the proxy statement.
• The company will continue to execute its strategic objectives for 2024, including improving its balance sheet and growing revenue and profitability.

Key Dates

Keywords

annual meeting, stockholders, executive compensation, board of directors, financial performance, Life Time Group Holdings