Life Time Group Holdings continues to bounce back from its pandemic downturn.
From January to March this year, Chanhassen-based Life Time earned $27.5 million, a big increase from the loss of $38 million it reported during the same time last year. It was also a lot more than the $10 million to $11 million in profits company executives earlier estimated.
Revenue jumped more than 30% to nearly $511 million, which Life Time called a new first-quarter record on Tuesday as it announced its earnings. Its revenue beat Wall Street predictions, and its share price went up almost 7% in Tuesday trading.
"I am very pleased with our first quarter results. ... We have great confidence that we can continue to elevate our programming and experiences for our dedicated member base while also growing our revenue," Life Time CEO Bahram Akradi said in a call with analysts.
Tuesday's earnings follow a successful end-of-year quarter in which Life Time earned a profit of $13.7 million, way better than its 2021 loss of almost $305 million.
Life Time's growth is due in large part to its increase in membership dues, which Life Time has been raising for months. Fitness center memberships increased by about 39,000 in the first three months of the year. Total memberships, which include digital on-hold memberships, increased about 9% to 813,500.
As of the end of March, Life Time operated 164 athletic centers, with three opening in the first quarter and seven more planned to open later this year.
To help generate funds, Life Time has also sold and leased back several of its properties, including a property it sold for about $45 million earlier this month. The company said it remains on track to complete $300 million in sale-leaseback transactions in 2023.
