Life Time Group Holdings is inching closer to being back in the black.
The Chanhassen-based fitness center operator's preliminary financial results released this week forecast a profit of $10 million to $12 million for the last three months of 2022, instead of losing up to $10 million as executives earlier expected.
For the full year, Life Time predicts a loss of $2 million to $4 million, which is still a large improvement from the loss of nearly $580 million the company experienced in 2021 after enduring temporary closures and other restrictions on its fitness centers during the pandemic.
Revenue for the full year is expected to be a little more than $1.8 billion, an uptick of about 38% from the year before.
"We have rewired the business significantly," Chief Executive Bahram Akradi said Monday at the ICR Conference in Orlando, Fla.
Price increases for memberships are a large driver of Life Time's growth. Akradi said the higher dues still make sense even in the face of a possible recession because Life Time is focused on providing a high-end experience for customers who can afford it.
Dues now average about $162 a month; however, new memberships cost about $204 a month, Akradi said.
Life Time has also expanded its programming. The company now has about 430 dedicated pickleball courts, with a goal to have 600 to 700 by the end of 2023. Other growth areas include small group training, in-person personal training and the new Arora programming for older members.
