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Star Tribune (Minneapolis, MN)
Life Time Fitness Inc. said Thursday its fourth-quarter profit grew 11 percent, in line with investor expectations, and gave an upbeat outlook for 2014.
The Chanhassen-based company said it expects faster revenue growth in 2014 than last year. It added that profits wouldn't grow as quickly as revenue due to costs associated with an expansion that calls for six new centers to join the 109 it owns around the country.
Life Time said it earned $26 million, or 63 cents a share, in the three months ended Dec. 31, up from $23.4 million, or 56 cents a share, in the same period a year ago.
Revenue was $291 million, up 6 percent from $275.3 million a year ago.
Analysts had forecast a profit of 62 cents a share and revenue of $294 million. The company's shares rose 5.2 percent Thursday.
Executives forecast revenue growth of 8 to 9.5 percent in 2014, well above the 7 percent growth Life Time experienced for full-year 2013. It said 2014 net income would rise at a slower rate, in the 3 percent to 7 percent range, as revenue growth is offset by costs of new centers.
Separately, Life Time said it had appointed Eric Buss as interim chief financial officer, succeeding Michael Robinson, who will retire next month but remain affiliated with the company as a consultant.
4th quarter FY2013, 12/31
2013 | 2012
Revenue: $291.0 | $275.3 +5.7
Income: 26.0 | 23.4 +11.1
Earn/share: 0.63 | 0.56 +12.5
Revenue $1,205.9 | $1,126.9 +7.0
Income 121.7 | 111.5 +9.1
Earn/share 2.93 | 2.66 +10.2
Figures in millions except for earnings per share.