Life Time Group (LTH) Oppenheimer's 24th Annual Virtual Consumer Growth and E-Commerce Conference summary

Key messages from analyst event

• Demonstrated adaptability and transformation over three decades, consistently growing revenue and EBITDA.

• Highlighted the depth and passion of the executive team, emphasizing the company's strength beyond its founder.

• Showcased the embedded potential in existing assets, projecting $450 million in revenue and $250 million in EBITDA from clubs open by end of 2023.

• Emphasized multiple growth avenues, including mall partnerships, mixed-use developments, and asset takeovers, with a target of 30%+ IRR on new investments.

• Addressed investor misunderstandings and received strong positive feedback from the event.

Consumer trends and business resilience

• Members average 144 visits per year, making the service integral to their lives and highly resilient to economic pressures.

• No advertising or promotions are needed, with marketing spend at just 1.4% of revenue, reflecting strong organic demand.

• Retention rates are at historic highs, about 10% better than previous bests, with attrition trends improving monthly.

• Demand remains robust, with all centers exceeding forecasts and no signs of consumer weakness.

Differentiation and member engagement

• Positioned as an "Athletic Country Club" rather than a gym, offering diverse amenities like Beach Clubs, Kids Camp, sports, and wellness services.

• Focus on desirability in all aspects—staff, programs, schedules, and technology—drives profitability.

• Community-building through programs like ARORA enhances member stickiness and engagement.