Life Time Group Holdings, Inc.

Greetings and welcome to the Lifetime Group Holdings, Inc. First Quarter 2024 Earnings Conference Call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Danny Maskey, Vice President of Corporate Finance. Thank you, Danny. You may begin.

Good morning, and thank you for joining us for the Q1 2024 Lifetime Group Holdings Earnings Conference Call. With me today are Brahma Krauti, Founder, Chairman, and CEO, and Eric Weaver, Senior Vice President, Interim CFO, and Controller. 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 those forward-looking statements made today. There's a comprehensive discussion of risk factors in the company's SEC filings, which you are encouraged to review. The company will discuss certain non-GAAP financial measures, including adjusted net income, adjusted EBITDA, adjusted diluted EPS, net debt to adjusted EBITDA, or what we refer to as net debt leverage ratio, and free cash flow. This information, along with reconciliations to the most directly comparable GAAP measures, are included, when applicable, in the company's earnings release issued this morning, our 8-K filed with the SEC, and on the investor relations section of our website. With that, I turn the call over to Eric Weaver. Eric?

Thank you, Dani, and good morning, everyone. We appreciate you all joining the call this morning. I will provide an update regarding our first quarter results, the full details of which can be found in the earnings release we issued this morning. We are pleased with the strong financial results we achieved this quarter. Total revenue for the first quarter increased 16.8% to $596.7 million versus the prior year, driven by a 19% increase in membership dues and enrollment fees and a 10.5% increase in in-center revenue. Access memberships increased 5% to end the quarter at more than 802,000 memberships, and total memberships ended the quarter at approximately 853,000. Average monthly dues were $186, up 12.7% from the first quarter last year. Revenue per access membership increased to $745 from $667 in the prior year period as we continue to benefit from higher dues, increased visits, and increased in-center activities. Net income for the first quarter was $24.9 million, down 9.5% versus the first quarter of 2023. Q1 2023 net income was elevated as a result of one-time net benefits of $8.7 million related to the sale-leaseback transactions and the sale of two triathlon events. Adjusted net income was $30.5 million, an increase of $7.3 million versus the first quarter 2023. Adjusted diluted earnings per share was $0.15 compared to $0.11 per share in the first quarter last year. Adjusted EBITDA increased 21.6% to $146 million, and our adjusted EBITDA margin of 24.5% increased 100 basis points as compared to the first quarter 2023. Our strong financial performance continues to drive growth in cash flow and a reduction of our net debt leverage versus the prior year. Net cash provided by operating activities increased 21.7% to $90.4 million as compared to the first quarter 2023. We reduced our net debt to adjusted EBITDA leverage to 3.6 times in the first quarter versus 5.2 times in the prior year period. We're excited about the continued execution and success of our business. With momentum on our side, we are very optimistic about the opportunities in front of us in 2024. I will now turn the call over to Brahm.