Fitness financials: Life Time Fitness’ Q4 revenue up 9.8 percent, plus Iconix, Hanesbrands/Champion, Nike

Life Time Fitness said increasing member retention and growing same center sales boosted both its fourth-quarter and FY 2010 revenues nearly 10 percent. Plus, Iconix posted increased revenue on acquisitions, Champion's parent amended its credit facility and Nike declared quarterly dividend.
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Life Time Fitness’ Q4 revenue up 9.8 percent

Life Time Fitness (NYSE:LTM) said increasing member retention and growing same center sales boosted both its fourth-quarter and FY 2010 revenues nearly 10 percent.

Fourth quarter ended Dec. 31, revenue grew 9.8 percent to $223.7 million from $203.7 million during the same period last year.

Net income for the quarter was $17.6 million, or $0.43 per diluted share, compared to net income of $18.4 million, or $0.46 per diluted share, for the same period in 2009.

Total operating expenses during the quarter totaled $189.1 million compared to $165.6 million in 2009.

Revenue for the year totaled $912.8 million, up 9.1 percent from $837.0 million during 2009.

Net income for the full year was $80.7 million, or $2 per diluted share, compared to $72.4 million, or $1.82 per diluted share, for 2009.

Full-year operating expenses were $752.1 million compared with $688.1 million in 2009.

Memberships grew 5.8 percent to 612,556 at Dec. 31, 2010, from 578,937 at Dec. 31, 2009.

Looking ahead, the company said it expects revenue to be up 6 percent to 8 percent to $970 million to $990 million for 2011. It anticipates net income to be up 13 percent to 18 percent, or $91 million to $95, and earnings per share to be $2.19 to $2.29.

Iconix posts revenue increase on acquisitions

Iconix Brand Group (Nasdaq: ICON) posted a 34 percent increase in fourth-quarter revenue boosted by extra income from acquisitions.

Fitness EM licenses the Danskin brand name for fitness equipment from Iconix's property, Triumph, formerly known as Danskin.

Total revenue for the fourth quarter ended Dec. 31 was $88.0 million compared to $65.8 million for the fourth quarter of 2009.

Net income increased 12 percent to approximately $22.1 million as compared to the prior year quarter. Earnings per share for the fourth quarter were $0.30 versus $0.27 for the prior year quarter.

Total revenue for the full year 2010 was $332.6 million, a 43 percent increase as compared to $232.1 million for the prior year.

Net income rose 32 percent to $98.8 million as compared to the prior year period. Earnings per share were $1.32 versus $1.10 for the prior year.

The company reaffirmed its full-year 2011 revenue guidance of $340 million to $350 million, and EPS guidance of $1.40 to $1.45.

Champion parent amends credit facility

Hanesbrands (NYSE: HBI), parent of Champion, said it has “favorably” amended its senior secured credit facility, which includes the company’s revolving credit facility, to reflect improved debt ratings.

It added that the amendment reduces the credit facility’s interest rate, extends the facility’s maturity date, and increases the flexibility of debt covenants and the use of excess cash flow.

In November 2010, the company issued $1 billion of 10-year fixed-rate notes, bringing the company’s portion of fixed-rate bond debt at favorable rates and long maturities to approximately 75 percent.

It added that the amendment extends the credit facility’s maturity two years until December 2015 and reduces the current interest rate on its revolver to LIBOR plus 3.25 percent, down from LIBOR plus 4.5 percent.

Nike declares quarterly dividend

Nike (NYSE: NKE) said it board of directors has declared a quarterly cash dividend of $0.31 per share on the company’s outstanding Class A and Class B Common Stock payable on April 1, 2011, to shareholders of record on March 7, 2011.

--Compiled by Wendy Geister

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