Life Time Q3 Earnings Drop; Issues Q4, FY23 Outlook

(RTTNews) - Life Time Group Holdings, Inc. (LTH), an athletic country club chain, on Wednesday reported lower earnings for the third quarter particularly in the absence of a one-time gain the company had recorded in the same quarter last year. However, revenue jumped during the three-month period.

The company also issued earnings and revenue guidance for the next quarter and fiscal 2023.

Quarterly net income decreased to $7.9 million or $0.04 per share from $24.7 million or $0.12 per share for the same period last year, mainly due to a gain from sale-leasebacks of $48.6 million in the prior year period and a loss from a sale-leaseback transaction in the current year amounting to $12.7 million.

Excluding items, earnings were $26.7 million or $0.13 per share compared with a loss of $11.5 million or $0.06 per share of the previous year.

On average, seven analysts polled by Thomson Reuters expected earnings of $0.12 per share for the year. Analysts' estimates typically exclude special items.

Total revenues, increased to $585.2 million from $496.4 million in the prior year.

The Street estimate was for revenue of $587.03 million.

Looking ahead to the fourth quarter the company expects net income in the range of $14 million to $17 million and revenue in the range of $555 million to $565 million.

Looking forward to the full year, the company expects net income in the range of $66 million to $69 million and revenue in the range of $2.213 billion to $2.223 billion.

In pre-market activity, Life Time shares are trading at $14.70 up 2.80% on the New York Stock Exchange.