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Life Time Fitness, Inc. (LTM)

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Life Time Fitness, Inc. (LTM). By Liam Garrity-Rokous. Buy Pitch. Life Time Fitness Overview. Market Cap: $2.01B Share Price (Friday 3/14/2014): $49.30 Description: The company mainly owns and operates health clubs that offer a variety of services Number of Centers: 109 P/E: 16.8 - PowerPoint PPT Presentation
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Life Time Fitness, Inc. (LTM) By Liam Garrity-Rokous Buy Pitch
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Page 1: Life Time Fitness, Inc. (LTM)

Life Time Fitness, Inc. (LTM)By Liam Garrity-Rokous

Buy Pitch

Page 2: Life Time Fitness, Inc. (LTM)

Life Time Fitness Overview

• Market Cap: $2.01B• Share Price (Friday 3/14/2014): $49.30• Description: The company mainly owns and operates

health clubs that offer a variety of services • Number of Centers: 109 • P/E: 16.8• Forward P/E: 13.3• Major Domestic Competitors: Town Sports

International Holdings, Inc. (CLUB)

Page 3: Life Time Fitness, Inc. (LTM)

Investment Thesis

• LTM has a created a high barrier to entry in a low barrier to entry industry

• LTM has a very attractive long-term growth profile• LTM outperforms all of its competitors in the long-term

and the company at an attractive valuation with a strong change of high returns

Page 4: Life Time Fitness, Inc. (LTM)

A High Barrier To Entry In ALow Barrier To Entry Industry

•Explanation of why point number one means we should buy this company

•Relevant numbers, studies, facts, statistics, etc. that back up point number one

•Graphics optional

Page 5: Life Time Fitness, Inc. (LTM)

[Your Point Number One (continued)]

The company plans to open six new large format centers in 2014

Page 6: Life Time Fitness, Inc. (LTM)

Attractive Long-TermGrowth Profile

Page 7: Life Time Fitness, Inc. (LTM)

LTM’s strong growth has translated into large increase in EBITDA and Net Income

Page 8: Life Time Fitness, Inc. (LTM)

How Has LTM’s SharePrice Reacted?

Page 9: Life Time Fitness, Inc. (LTM)

Can LTM Deliver Moving Forward?

Quarterly Earnings & Estimates

There have been no negative earnings surprises for last six quarters!

Page 10: Life Time Fitness, Inc. (LTM)

LTM vs. CLUB

Page 11: Life Time Fitness, Inc. (LTM)

Valuation

Current Ev/EBITDA =8.05x

Average Ev/EBITDA For Last 16 Quarters =9x

7/6/2009 1/22/2010 8/10/2010 2/26/2011 9/14/2011 4/1/2012 10/18/2012 5/6/2013 11/22/2013 6/10/20140

2

4

6

8

10

12Ev/EBITDA Multiples (Quarterly)

Ev/EBITDA Multiples (Quarterly)

Bottom Line Estimate = $60

Page 12: Life Time Fitness, Inc. (LTM)

Conclusion

• LTM is unique in its size and track record of earnings growth

• LTM’s growth will accelerate and allow the company to increase its market share

• LTM outperforms all of its competitors in the long-term, it currently trades at an attractive long-term valuation, and it has room for significant share price appreciation in the long-term

• THIS IS A GREAT LONG TERM STOCK AND IT IS A “MUST HAVE” FOR ANY PORTFOLIO!


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