IPO for life: on the business
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 767,000 memberships.
The company operates a network of over 150 “distinctive resort-like sports destinations”. The company has facilities in 29 states in the United States and one province in Canada. The company highlights member benefits that include …
- Top quality fitness equipment
- Spacious changing rooms
- Group fitness centers
- Indoor and outdoor pools
- Indoor and outdoor tennis courts
- Basketball courts
- Life Spa
- Life Cafe
- Learning spaces for children and the children’s academy
Life Time has grown rapidly over the years. But the pandemic and the forced closure of many gyms have had a major impact on the fitness industry. And the Life Time IPO filing illustrates the blow the company took from COVID-19 …
Lifespan affected by COVID-19
Several gyms had to close their doors by March 2020 due to restrictions related to the Covid-19 pandemic. Life Time was no exception. The fitness company did not collect any fees from members while its centers were closed. And it is reflected in the company’s finances with a steep 50% drop in revenue for 2020.
Despite the closure, Life Time continued to open clubs and coworking centers with no slowdown plans. 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 company records.
Life Time reported that the company has already seen a strong recovery and substantial momentum from 2020 data. Let’s take a look at Life Time’s finances …
IPO for life: financial data
Detailed financial information can be found in the Life Time IPO prospectus, allowing you to get more information about the company’s finances. If you are in the market for LTH shares, let’s take a look at the details.
Life Time highlights some key information for investors. The company’s income statement and balance sheet data are summarized as follows …
Total revenue: The company experienced a sharp decline in total revenues due to the pandemic. Life Time posted total revenue of $ 1.9 billion for the year ending December 2019. As of December 2020, Life Time posted over $ 948.4 billion for the year, down 50%.
Profit (Loss): Life Time’s net losses have skyrocketed. For the year ending December 2019, the company posted a net profit of $ 30 million. By December 2020, the company’s net losses increased to over $ 360.2 million. For the six months ending June 2021, the company’s reported net loss is $ 229.2 million.
Cash: Life Time’s cash flow has been going up and down over the past few years. The company recorded $ 48 million in cash in December 2019. By December 2020, the company’s cash was down to $ 33.2 million. But by June 2021, Life Time’s cash was back to $ 104.2 million.
Total debt: Life Time’s total debt has remained relatively the same in recent years. The company recorded debt of $ 2.26 billion in December 2019. The figure increased slightly to $ 2.29 billion in December 2020. The company’s debt is $ 2.4 billion as of June 30, 2021.
The company incurred significant debt by becoming private. Life Time was a publicly traded company from 2004 to 2015. Bahram Akradi deprived the company 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 companies will remain the main shareholders.
The company plans to use the proceeds of the offering to repay the loans, as well as to cover fees and expenses related to the stock exchange. So, how much money can the Life Time IPO raise? Let’s take a look at the details of archiving …
LTH action: details on archiving
Life Time was filed on September 13 and set terms on September 29. The company plans to go public on the New York Stock Exchange (NYSE) on 7 October. Life Time will be traded under the ticker symbol LTH.
The company expects to sell 46.2 million common shares. The offering is expected to range from $ 18 to $ 21 per share. The company could raise $ 831.6 million at the low end of the expected range.
At the high end of the expected price range, Life Time could raise up to $ 970.2 million. The deal, at its average price, would value Life Time at around $ 4.1 billion, according to Renaissance Capital. The offer price is scheduled for October 6.
An offering at the top of the range would make the Life Time IPO the largest ever made by a public company in Minnesota.
Goldman Sachs, Morgan Stanley and Bank of America lead the offering.
If you’re interested in other fitness-related investment opportunities, check out these sports stocks to consider investing in. You can also check out the iFit IPO. The fitness company is well on its way to hitting the Nasdaq stock exchange on October 6.
As always, be sure to research before investing. IPOs can be volatile for the first few months and stock prices change constantly. But if IPO investment interests you, check out our most recent IPOs and our IPO calendar. We update the calendar daily to give you the latest news on upcoming and archived IPOs.
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Aimee Bohn is a graduate of Towson University’s College of Business and Economics. Her background in market research helps her uncover valuable trends. Over the past year, her main focus has been on pursuing IPOs and other trends.