The health business is progressively recovering after being hit arduous by the pandemic final yr when health facilities closed down and other people began figuring out at house. Now as restrictions ease and folk slowly return to their routines, these facilities are witnessing a rebound. One such participant within the business, Life Time Group Holdings, is ready to go public subsequent week. Right here are some things to notice about this firm:
Life Time Group Holdings Inc. is scheduled to go public on Thursday, October 7. The corporate will start buying and selling on the NYSE underneath the ticker image LTH. It is going to provide 46.2 million shares at a value vary of $18 to $21. The IPO will probably be managed by a bunch of underwriters led by Goldman Sachs and Morgan Stanley.
Life Time describes itself as “a number one life-style model providing premium well being, health and wellness experiences to a neighborhood of almost 1.4 million particular person members, who collectively comprise greater than 767,000 memberships as of July 31, 2021.” The corporate has over 150 facilities throughout 29 states within the US and one province in Canada.
Life Time recorded 92 million visits to its facilities in 2019, 48 million visits in 2020 regardless of the pandemic, and 32 million visits in the course of the first half of 2021. In 2020, 69% of the corporate’s complete income got here from recurring membership dues whereas 29% got here from in-center income. Life Time was based in 1992 and has 30,000 staff.
In 2019, earlier than the pandemic, Life Time generated $1.9 billion in income and $30 million in web earnings. In 2020, because of the pandemic, the corporate recorded income of $0.9 billion and delivered a web lack of $360 million. Within the first six months of 2021, income amounted to $0.6 billion whereas web loss was $229 million.
In March 2020, Life Time closed all its facilities because of the COVID-19 pandemic and the corporate didn’t acquire month-to-month entry membership dues or recurring product expenses from members. It reopened its first heart in Might 2020. As of August 31, 2021, all of its 155 facilities had been open.
For the reason that finish of 2019 via August 31, 2021, the corporate has opened 9 new facilities. It intends to open six new facilities this yr, with plans to open 20 or extra new facilities in 2022 and 2023.
Life Time sees huge alternative within the well being, health and wellness business. The corporate estimates that the US wellness financial system represents a market alternative of approx. $900 billion. Life Time believes it is going to be capable of achieve traction as soon as the pandemic subsides primarily based on sure tendencies seen in the course of the pandemic.
In accordance with the Facilities for Illness Management and Prevention, US weight problems prevalence grew from 30.5% to 42.4% from 2000 to 2018. In February 2021, 42% of US adults skilled weight achieve in the course of the pandemic. Life Time believes that folks giving greater precedence to their well being will probably be a tailwind for the corporate.
As well as, primarily based on information from the Worldwide Well being, Racquet and Sportsclub, approx. 22% of complete well being golf equipment and health studios closed completely throughout 2020. This presents Life Time with a possibility to draw new clients.
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