Life Time Closes on $65 Million in Sale-Leaseback Transactions
CHANHASSEN, Minn., Sept. 30, 2024 /PRNewswire/ -- Life Time Group Holdings, Inc. ("Life Time," "we," "our," "us," or the "Company") (NYSE: LTH) today announced that it has closed on two sale-leaseback transactions for two properties for approximately $65 million in gross proceeds. Terms were similar to recent transactions. Additional details were not disclosed.
These transactions bring the Company's total gross proceeds from sale-leasebacks to approximately $213 million year-to-date.
Erik Weaver, Executive Vice President and Chief Financial Officer, stated: "We're pleased to have completed these two additional sale-leaseback transactions, which will support both our future growth opportunities and our commitment to strengthening our balance sheet and further reducing net leverage. After achieving our initial net leverage milestone of 3.0 times at the end of the second quarter, which was ahead of schedule by six months, we are committed to a path of de-levering to less than 2.5 times. We believe these transactions, combined with our positive free cash flow, will accelerate the timing of reaching this important milestone. We remain excited about the strength of our business and the opportunities in front of us."
About Life Time
Life Time (NYSE:LTH) empowers people to live healthy, happy lives through its portfolio of more than 175 athletic country clubs across the United States and Canada. The health and wellness pioneer also delivers a range of healthy way of life programs and information via its complimentary Life Time Digital app. The Company's healthy living, healthy aging, healthy entertainment communities and ecosystem serve people 90 days to 90+ years old and is supported by a team of more than 42,000 dedicated professionals. In addition to delivering the best programs and experiences through its clubs, Life Time owns and produces nearly 30 of the most iconic athletic events in the country.
Forward-Looking Statements
This press release includes "forward-looking statements" within the meaning of federal securities regulations. Forward-looking statements in this press release include, but are not limited to, the Company's plans, strategies and prospects, both business and financial, including its priorities for 2024, growth, improvements to its balance sheet, net debt and leverage ratio (including the timing thereof) and free cash flow. These statements are based on the beliefs and assumptions of the Company's management. Forward-looking statements are inherently subject to risks, uncertainties and assumptions. Generally, statements that are not historical facts, including statements concerning the Company's possible or assumed future actions, business strategies, events or results of operations, are forward-looking statements. These statements may be preceded by, followed by or include the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or similar expressions. In addition, any statements or information that refer to expectations, beliefs, plans, projections, objectives, performance or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking.
Factors that could cause actual results to differ materially from those forward-looking statements included in this press release include, but are not limited to, risks relating to our business operations and competitive and economic environment, risks relating to our brand, risks relating to the growth of our business, risks relating to our technological operations, risks relating to our capital structure and lease obligations, risks relating to our human capital, risks relating to legal compliance and risk management and risks relating to ownership of our common stock and the other important factors discussed under the caption "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, filed with the Securities and Exchange Commission (the "SEC") on February 28, 2024, (File No. 001-40887), as such factors may be updated from time to time in the Company's other filings with the SEC, which are accessible on the SEC's website at www.sec.gov. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any forward-looking statement that the Company makes in this press release speaks only as of the date of such statement. Except as required by law, the Company does not have any obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements, whether as a result of new information, future events or otherwise.
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SOURCE Life Time Group Holdings, Inc.