When It’s not a Membership of a Lifetime-Cancel Life Time Fitness
Life Time also has been growing revenue from its ancillary businesses, including athletic events for members and non-members, both inside and outside their fitness centers, publishing, corporate wellness and other health programs. CEO Bahram Akradi will continue to lead Life Time Fitness as a $4 billion offer by private equity investors is set to take the company private and position it to continue growing. Akradi, the company’s founder, is rolling over $125 million of his investment into the deal and said he’s excited about the future direction of the company. Revenue from ancillary businesses is small but grew twice as fast as overall revenue -- $7.1 million, or 14.4 percent, to $56.7 million in 2014. It’s important, officials said, because although it is nowhere near as high as membership revenue, it fosters member engagement and retention with the clubs. Akradi has led the company since its inception in 1992 and said he had no intention of retiring. The Chanhassen-based company, which slowed its expansion of new centers during the economic downturn a few years ago, is now adding new locations at a steady clip. “I really see myself as captain of a ship that I have built,” Akradi said. Last year, the company opened six new fitness centers, and its revenue grew 7 percent to $1.3 billion.
Founded in 1992, when it opened its first club in Brooklyn Park, Life Time has more than 24,000 employees. Net income for the quarter was $22.4 million, or 59 cents per share. Its adjusted net income of 71 cents per share was 2 cents above estimates. On Feb. 3, two private-equity firms announced their acquisition of Eos Fitness, a chain of 16 fitness clubs operating in the Phoenix, Las Vegas and Southern California. It hired two investment bankers, Guggenheim Securities and Wells Fargo Securities, to explore strategic alternatives for Life Time. A glance at their investments sees Leonard Green & Partners with shares of Whole Foods Market, J. Crew and Petco; TPG with Beringer Wines, Burger King and Neiman Marcus; and LNK Partners with Staples, Quaker Oats and Pepsi. All three private-equity groups have extensive experience investing in retail. David Landau, a partner with the private equity firm LNK Partners, was a director of Life Time from 2000 to 2006 while he was a partner with another private equity firm. In its most recent quarterly earnings report, the company exceeded analysts’ expectations, reporting fourth-quarter revenue of $315.3 million, up 8.3 percent from the same period last year. “We are confident that we will have a long and successful partnership as we continue to serve Life Time’s many loyal members and customers,” Akradi said in the announcement of the sale. “Life Time Fitness is a truly outstanding business and Bahram Akradi and his management team are absolutely terrific,” Landau said. Its largest presence is in its home market, with 23 locations in the Twin Cities area. In August, the company announced it was examining options to convert its real estate assets into a Real Estate Investment Trust as a way to increase shareholder value.
The transaction is expected to close in the third quarter of 2015 pending approval from shareholders. Life Time is not the only fitness chain trying to find a strategic alternative to its ownership structure. Company spokesman Jason Thunstrom said that for club members the agreement “merely is an ownership change for our company. Under the terms of the merger agreement, the investors will buy all of the outstanding shares of common stock for $72.10 per share in cash. On Feb. 25, New York-based Town Sports International Holdings Inc., an operator of fitness clubs in the Northeast and mid-Atlantic states, announced that it had hired an investment banker to review strategic alternatives, including a possible sale of the company. Among the events include the Life Time Tri, a premier triathlon series held across the country, and various themed runs like a St. Patrick Day 5K and Torchlight 5K and indoor triathlons, as well as programs to help members train for those events. “We have tons of opportunity in this company to impact the health and well-being of the people in the United States,” Akradi said. Life Time’s board of directors unanimously approved the agreement with private-equity firms Leonard Green & Partners, TPG and LNK Partners.
The likes of Anthony Joshua, Stephen Fry, and Dolly Parton are amongst those who have previously recorded episodes. Time to Walk on your Apple Watch. Walking has been a feature of my life during the good times and the bad, come rain or shine. All episodes will then be available with the latest on top. The walk is recorded at a place that is important to the presenter. Prince William’s brother, Prince Harry, has a relationship with Apple too. Alongside the Time to Walk episode, Apple is making donations to three charities chosen by Prince Willam. Crisis Text Line in the U.S. For me, it provides an opportunity to clear my mind and gain some perspective. The service costs US$9.99 per month or US$79.99 for a year and is also included in Apple One bundles. I personally really enjoyed the one from Malcolm Gladwell. All three of these charities provide support for people in crisis. Those people share stories, photos (which users can see on their Apple Watch), and music. In the episode, released Monday, The Duke of Cambridge discusses the importance of keeping mentally fit and reflects on a moment he was out of his comfort zone. It’s a key part of how I manage my mental health. 25-40 minute walk with some of the world’s most interesting people.
Tested: Does Listening to Music Affect Pace? So, the coaches offer tips and training advice, but also let you go out on your own for a few minutes. Each workout follows a route in a new place-the three released at launch take you to London, Brooklyn, and Miami Beach. While Time to Walk tells stories through the people hosting the walk, Time to Run tells stories through the places you “visit” on your run. “Both the creative production team and the trainers themselves said ‘when I’m out running, part of what I want to do is to be able to escape a little bit,’” Blahnik explains. The coaches describe what they’re running by on their route and then your Apple Watch will buzz, letting you know there’s an image to view, taken by the trainer on their run and shown on your watch’s screen. “You get the coaching you need at just the right time, but not too much so you can also enjoy the music,” he adds. Blahnik says this was intentional and a big part of how they designed the experience, so you can expect this structure for most of the workouts.
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