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Investment Opportunities

Life Time IPO: Fitness Company to Go Public on NYSE

A Life Time IPO is coming to the NYSE. The company is returning to the public markets after years as a privately held company. Let’s look at the details…

Life Time IPO: About the Business

Life Time IPO

Life Time is a lifestyle brand that offers health, fitness and wellness experiences. The Chanhassen, Minnesota-based company was founded in 1992 by Bahram Akradi. Today, Life Time has a community of nearly 1.4 million individual members and 767 thousand memberships.

The firm operates a network of over 150 “distinctive, resort-like athletic destinations.” The company has facilities across 29 states in the United States and one province in Canada. The company highlights member benefits that include…

  • Top-of-the-line fitness equipment
  • Spacious locker rooms
  • Group fitness studios
  • Indoor and outdoor pools
  • Bistros
  • Indoor and outdoor tennis courts
  • Basketball courts
  • LifeSpa
  • LifeCafe
  • Childcare and Kids Academy learning spaces

Life Time has had rapid growth over the years. But the pandemic and mandated shut down of many gyms has heavily impacted the fitness industry. And the Life Time IPO filing lays out the hit that the company took from COVID-19…

Life Time Impacted by COVID-19

Several gyms had to close their doors by March 2020 due to Covid-19 pandemic restrictions. Life Time was no exception. The fitness company did not collect any fees from members while its centers were closed. And it reflects in the company’s finances with a sharp 50% drop in revenue for 2020.

Despite the shut down, Life Time continued to open clubs and coworking centers with no plans of slowing down. The company opened nine facilities between December 2019, and August 2021. The company also opened a coworking space in downtown Minneapolis in the past month. Life Time plans to open six new locations by the end of the year and 20 or more locations by 2022 and 2023, according to the company filing.

Life Time reported that the company has already witnessed a strong recovery and substantial momentum over its 2020 figures. Let’s look at Life Time’s finances…

Life Time IPO: Financial Data

Detailed financial information is in the Life Time IPO prospectus, allowing you to gain more insight into the company’s finances. If you’re in the market for LTH stock, let’s look at the details.

Life Time highlights some key information for investors. The company’s statement of operations and balance sheet data are summarized as follows…

Total Revenue: The company recorded a sharp drop in total revenue due to the pandemic. Life Time recorded $1.9 billion million in total revenue for the year ended December 2019. In December 2020, Life Time reported over $948.4 million billion for the year – representing a 50% drop.

Net Income (Loss): Life Time’s net losses have skyrocketed. For the year ended December 2019, the company recorded $30 million in net income. By December 2020, the company’s net losses increased to over $360.2 million. For the six months ended June 2021, the company’s reported net loss is $229.2 million.

Cash: Life Time’s cash flow has gone up and down in recent years. The company recorded $48 million in cash as of December 2019. By December 2020, the company’s cash decreased to $33.2 million. But by June 2021, Life Time’s cash bounced back to $104.2 million.

Total Debt: Life Time’s total debt has stayed relatively the same in recent years. The company recorded $2.26 billion in debt as of December 2019. The figure rose slightly to $2.29 billion as of December 2020. The company’s debt is $2.4 billion as of June 30, 2021.

The company incurred significant debt going private. Life Time was a publicly-traded company from 2004 to 2015. Bahram Akradi took the company private in 2015 in a $4 billion deal. The deal involved Akradi and private equity firms Leonard Green & Partners, TPG and LNK Partners. After the Life Time IPO, Akradi and the firms will remain major shareholders.

The company plans to use the proceeds from the offering to repay loans, as well as cover fees and expenses related to going public. So how much money can the Life Time IPO raise? Let’s look at the filing details…

LTH Stock: Filing Details

Life Time filed on September 13 and set its terms on September 29. The company plans to list on the New York Stock Exchange (NYSE) on October 7. Life Time will trade under the ticker symbol LTH.

The company plans to sell 46.2 million shares of common stock. A range of $18 to $21 per share is expected for the offering. The company could raise $831.6 million at the low end of its expected range.

At the top end of the expected pricing range, Life Time could raise up to $970.2 million. The deal, at its midpoint price, would value Life Time at approximately $4.1 billion, according to Renaissance Capital. The offering is expected to price on October 6.

An offering at the top end of the range would make the Life Time IPO the largest ever by a Minnesota public company.

Goldman Sachs, Morgan Stanley and Bank of America are leading the offering.

If you’re interested in other fitness-related investing opportunities, check out these sports stocks to consider investing in. You can also check out the iFit IPO. The fitness company is on track to hit the Nasdaq exchange on October 6.

As always, make sure to research before you invest. IPOs can be volatile for the first few months and share prices are constantly changing. But if IPO investing interests you, check out our top recent IPOs and our IPO calendar. We update the calendar daily to give you the latest news on upcoming and filed IPOs.

If you’re looking for the latest investment opportunities, consider signing up for Liberty Through Wealth. This free e-letter is full of market insights from leading experts. You’ll hear from bestselling author and investment expert Alexander Green. It’s one of the easiest ways to stay on top of market news out there. All you need to do is enter your email address in the box below to get started.


About

Aimee Bohn graduated from the College of Business and Economics at Towson University. Her background in marketing research helps her uncover valuable trends. Researching IPOs and other trends has been her primary focus over the past year. When Aimee isn’t writing for Investment U, you can usually find her doing graphic design or traveling with friends.

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