Life Time Group Holdings, Inc.

Good morning and welcome to the Lifetime Group Holdings 2022 Fourth Quarter and Full Year Earnings Conference Call. Please be advised that reproduction of this call in whole or in part is not permitted without written authorization from the company. As a reminder, this conference is being recorded. I will now turn the call over to Ken Cooper with Investor Relations for Lifetime Group Holdings. Please go ahead.

Good morning and thank you for joining us for the Lifetime 2022 Fourth Quarter and Full Year Earnings Conference Call. With me today are Bram McCrotty, Founder, Chairman, and CEO, and Bob Houghton, CFO. During this call, the company will make forward-looking statements which involve a number of risks and uncertainties that may cause actual results to differ materially from our forward-looking statements made today. There is a comprehensive list of risk factors in the company's SEC filings, which you are encouraged to review. Also, the company will discuss certain non-GAAP financial measures, including adjusted EBITDA and free cash flow before growth capital expenditures. This information, along with reconciliations to the most directly comparable GAAP measures, where possible without unreasonable efforts, are included in the earnings release issued this morning and in the company's AK filed with the SEC and on the investor relations section of Lifetime's website. I'm now pleased to turn the call over to Bob Houghton. Bob?

Thank you, Ken, and good morning, everyone. We appreciate you taking the time to join us today. I will briefly cover our fourth quarter and full year results. The full details can be found in the earnings release we issued this morning. Baram will then outline our strategies and key initiatives, followed by updated guidance for 2023. Starting with our 2022 results, fourth quarter total revenue increased 31% to $473 million. driven by a 32% increase in membership dues and enrollment fees and a 28% increase in in-center revenue. For the full year, total revenue increased 38% to $1.8 billion. Center memberships increased 12% to end the year at more than 725,000 memberships. Fourth quarter average monthly dues were $162, up 20% from $135 in the fourth quarter last year. Fourth quarter revenue per center membership increased to $640, up 19% from $536 in the prior year period, as we continue to benefit from higher dues and increased in-center activity. We generated net income for the fourth quarter of $14 million, compared with a net loss of $305 million in the fourth quarter of 2021. Excluding the one-time expenses detailed in our earnings release in both periods, Net income improved by $51 million. Adjusted EBITDA increased 123% to $107 million, and adjusted EBITDA margin of 22.6% increased 9.3 percentage points versus 13.3% in the fourth quarter of 2021. For the full year, our net loss improved to $2 million, and our adjusted EBITDA was $282 million. We delivered another quarter of improving cash flow with net cash provided by operating activities of $76 million versus a $5 million net use of cash in the prior year period. We reduced our net debt to adjusted EBITDA leverage in the quarter, and our year-end liquidity position remains strong with cash and cash equivalents of $26 million and $423 million in total available borrowings on a revolving credit facility. As we turn to 2023, our business is in great shape and our strategies are working. We believe we are successfully using price to optimize our club performance and enhance our member experience, driving increased club usage across our strategic investments, opening new clubs and expanding margins, helping to drive increased cashflow and reduce leverage on our balance sheet. I will now turn it over to Buram to outline our 2023 strategic initiatives and financial guidance.