Thursday, Life Time Fitness, Inc. (LTM), an operator of professional fitness, family recreation and resort and spa centers, reported lower earnings for the third quarter, which topped analysts' estimates, despite higher revenue. The company lifted its earnings and revenue outlook for fiscal 2009. Meanwhile, the stock is losing in morning trade, currently down more than 16% on the NYSE.
Net income for the quarter declined to $20.6 million, from $21.6 million in the same period last year. Earnings per share declined to $0.51 per share from $0.55 per share in the corresponding period last year, yet topped the $0.49 per share projected by fifteen analysts polled by Thomson Reuters. Analysts' estimates typically exclude special items.
Revenue grew 7.8% to $214.3 million from $198.8 million in same period last year and came in marginally above the $215.17 million projected by Street analysts.
Memberships increased 6% to 590,716 at September 30, 2009 from 557,164 at September 30, 2008.
Membership dues increased to $144.8 million from $131.2 million in the year-ago quarter. Enrollment fees declined marginally to $6.6 million from $6.8 million a year-earlier. In-center revenue increased to $59.1 million from $56.2 million in the same period last year.
For the nine month period, net income declined to $54 million, or $1.36 per share, from $58.8 million, or $1.49 per share, in the same period last year. Revenue rose to $633.3 million from $575.7 million in the year-ago period.
Looking ahead, the company lifted its net income outlook range to $71 million - $72.5 million from $67 million - $71 million announced earlier. Earnings per share is expected to be between $1.78 and $1.81 per share, up from $1.65 - $1.75 per share projected earlier. Life Time said revenues are presently expected to be in $835 million - $845 million range compared to prior estimate of $830 million - $860 million. Currently, analysts expect the company to earn $1.74 per share on revenues of $843.36 million.
LTM is currently down $4.76 or 16.36% and trading at $24.34.
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