UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

þ		QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2007

o		TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Life Time Fitness, Inc.

(Exact name of Registrant as specified in its charter)

Minnesota		41-1689746
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)
6442 City West Parkway		55344
Eden Prairie, Minnesota		(Zip Code)
(Address of principal executive offices)

Registrant’s telephone number, including area code: 952-947-0000

 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer þ      Accelerated Filer o       Non-accelerated filer o

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

The number of shares outstanding of the Registrant’s common stock as of July 23, 2007 was 37,328,307 common shares.

 

 

TABLE OF CONTENTS

		Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets as of June 30, 2007 and December 31, 2006 (unaudited)			3
Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2007 and 2006 (unaudited)			4
Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2007 and 2006 (unaudited)			5
Notes to Unaudited Consolidated Financial Statements			6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			11
Item 3. Quantitative and Qualitative Disclosures about Market Risk			18
Item 4. Controls and Procedures			18
PART II. OTHER INFORMATION
Item 1. Legal Proceedings			18
Item 1A. Risk Factors			18
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			18
Item 3. Defaults upon Senior Securities			18
Item 4. Submission of Matters to a Vote of Security Holders			19
Item 5. Other Information			19
Item 6. Exhibits			20
SIGNATURES			21
Second Amended and Restated Credit Agreement
Certification of Principal Executive Officer
Certification of Principal Financial and Accounting Officer
Section 1350 Certifications

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

LIFE TIME FITNESS, INC. AND SUBSIDIARIES

		June 30,				December 31,
		2007				2006
ASSETS
CURRENT ASSETS:
Cash and cash equivalents		$	8,263			$	6,880
Accounts receivable, net			3,283				2,320
Inventories			12,649				8,773
Prepaid expenses and other current assets			12,251				9,201
Deferred membership origination costs			14,746				12,575
Income tax receivable			—				97
Total current assets			51,192				39,846
PROPERTY AND EQUIPMENT, net			1,076,132				902,122
RESTRICTED CASH			5,749				4,738
DEFERRED MEMBERSHIP ORIGINATION COSTS			13,496				10,875
OTHER ASSETS			43,427				30,095
TOTAL ASSETS		$	1,189,996			$	987,676
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt		$	10,265			$	15,228
Accounts payable			14,143				8,878
Construction accounts payable			52,171				49,285
Accrued expenses			46,348				37,191
Deferred revenue			36,319				29,773
Total current liabilities			159,246				140,355
LONG-TERM DEBT, net of current portion			518,108				374,327
DEFERRED RENT LIABILITY			25,606				25,716
DEFERRED INCOME TAXES			32,213				38,584
DEFERRED REVENUE			17,836				15,917
OTHER LIABILITIES			536				264
Total liabilities			753,545				595,163
COMMITMENTS AND CONTINGENCIES (Note 7)
SHAREHOLDERS’ EQUITY:
Undesignated preferred stock, 10,000,000 shares authorized; none issued or outstanding			—				—
Common stock, $.02 par value, 50,000,000 shares authorized; 37,300,484 and 36,817,199 shares issued and outstanding, respectively			747				737
Additional paid-in capital			273,214				259,905
Retained earnings			162,490				131,871
Total shareholders’ equity			436,451				392,513
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,189,996			$	987,676

See notes to unaudited consolidated financial statements.

LIFE TIME FITNESS, INC. AND SUBSIDIARIES

		For the Three								For the Six
		Months Ended								Months Ended
		June 30,								June 30,
		2007				2006				2007				2006
REVENUE:
Membership dues		$	106,667			$	80,550			$	207,195			$	156,349
Enrollment fees			6,378				5,561				12,064				10,644
In-center revenue			45,891				33,787				89,788				66,121
Total center revenue			158,936				119,898				309,047				233,114
Other revenue			3,201				2,557				6,191				4,766
Total revenue			162,137				122,455				315,238				237,880
OPERATING EXPENSES:
Center operations			94,035				68,540				183,527				133,633
Advertising and marketing			5,439				4,732				12,808				10,571
General and administrative			10,693				10,861				21,181				19,676
Other operating			3,792				2,646				7,116				5,633
Depreciation and amortization			14,678				12,146				28,365				23,665
Total operating expenses			128,637				98,925				252,997				193,178
Income from operations			33,500				23,530				62,241				44,702
OTHER INCOME (EXPENSE):
Interest expense, net of interest income of $111, $80, $155 and $149, respectively			(6,369	)			(4,140	)			(11,897	)			(8,257	)
Equity in earnings of affiliate			285				251				601				494
Total other income (expense)			(6,084	)			(3,889	)			(11,296	)			(7,763	)
INCOME BEFORE INCOME TAXES			27,416				19,641				50,945				36,939
PROVISION FOR INCOME TAXES			10,931				7,256				20,326				14,121
NET INCOME		$	16,485			$	12,385			$	30,619			$	22,818
BASIC EARNINGS PER COMMON SHARE		$	0.45			$	0.34			$	0.83			$	0.64
DILUTED EARNINGS PER COMMON SHARE		$	0.44			$	0.33			$	0.82			$	0.62
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC			36,864				36,143				36,747				35,915
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - DILUTED			37,498				37,033				37,359				36,888

See notes to unaudited consolidated financial statements.

LIFE TIME FITNESS, INC. AND SUBSIDIARIES

		For the Six Months Ended
		June 30,
		2007				2006
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income		$	30,619			$	22,818
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			28,365				23,665
Deferred income taxes			2,474				515
Loss on disposal of property and equipment, net			164				120
Amortization of deferred financing costs			405				331
Share-based compensation			3,816				4,926
Excess tax benefit from stock option exercises			(3,838	)			(5,228	)
Change in investment in unconsolidated subsidiary			(601	)			(498	)
Changes in operating assets and liabilities			4,692				13,706
Other			81				128
Net cash provided by operating activities			66,177				60,483
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property and equipment			(200,446	)			(110,432	)
Proceeds from sale of property and equipment			48				6,566
Proceeds from property insurance settlement			48				—
Increase in other assets			(9,555	)			(345	)
Decrease (increase) in restricted cash			(1,011	)			96
Net cash used in investing activities			(210,916	)			(104,115	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term borrowings			105,000				1,650
Repayments on long-term borrowings			(6,147	)			(12,654	)
Proceeds from revolving credit facility, net			40,000				36,800
Increase in deferred financing costs			(1,896	)			(651	)
Excess tax benefit from stock option exercises			3,838				5,228
Proceeds from exercise of stock options			5,327				8,579
Net cash provided by financing activities			146,122				38,952
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS			1,383				(4,680	)
CASH AND CASH EQUIVALENTS — Beginning of period			6,880				4,680
CASH AND CASH EQUIVALENTS — End of period		$	8,263			$	—
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
Cash payments for interest, including capitalized interest of $3,773 and $1,962, respectively		$	15,114			$	7,766
Cash payments for income taxes		$	16,924			$	7,079
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES:
Purchases of property and equipment in accounts payable		$	3,671			$	2,054

See notes to unaudited consolidated financial statements.

LIFE TIME FITNESS, INC. AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of Presentation

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary to fairly present financial position, results of operations and cash flows for the periods have been included.

These interim consolidated financial statements and the related notes should be read in conjunction with the annual consolidated financial statements and notes included in the latest Form 10-K, as filed with the Securities and Exchange Commission (“SEC”), which includes audited consolidated financial statements for the three fiscal years ended December 31, 2006.

2. Share-Based Compensation

We have four share-based compensation plans, the FCA, Ltd. 1996 Stock Option Plan (the 1996 Plan), the Life Time Fitness, Inc. 1998 Stock Option Plan (the 1998 Plan), the Life Time Fitness, Inc. 2004 Long-Term Incentive Plan (the 2004 Plan) and an Employee Stock Purchase Plan (the ESPP), collectively, the share-based compensation plans. In connection with approval for the 2004 Plan, our Board of Directors approved a resolution to cease making additional grants under the 1996 Plan and the 1998 Plan. The types of awards that may be granted under the 2004 Plan include incentive and non-qualified options to purchase shares of common stock, stock appreciation rights, restricted shares, restricted share units, performance awards and other types of share-based awards. As of June 30, 2007, we had granted a total of 5,587,165 options to purchase common stock under all of the share-based compensation plans, of which options to purchase 1,381,025 shares were outstanding, and a total of 389,311 restricted shares, of which 317,648 restricted shares were unvested. We use the term “restricted shares” to define nonvested shares granted to employees, whereas Statement of Financial Accounting Standards No. 123, Share-Based Payment (SFAS 123(R)) reserves that term for fully vested and outstanding shares whose sale is contractually or governmentally prohibited for a specified period of time.

The total number of options to purchase common stock include shares that vest on continued service (time-based) or upon achievement of certain market condition criteria (market-based). Most of the time-based options vest over a period of four or five years. The market-based options were granted to certain members of management at or around the time of our initial public offering. Upon meeting specific market performance criteria governing these stock options, sixty percent of these shares had vested as of December 31, 2005. The remaining forty percent of the shares, upon meeting additional specific market performance criteria, vested during the second quarter of 2006.

Total share-based compensation expense included in our consolidated statements of operations for the three and six months ended June 30, 2007 and 2006, was as follows (in thousands):

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2007				2006				2007				2006
Share-based compensation expense related to stock options		$	771			$	3,329			$	1,701			$	4,224
Share-based compensation expense related to restricted shares			1,195				386				2,054				702
Share-based compensation expense related to ESPP			32				—				61				—
Total share-based compensation expense		$	1,998			$	3,715			$	3,816			$	4,926

The following table summarizes the stock option transactions for the six months ended June 30, 2007:

										Weighted
										Average
						Weighted				Remaining				Aggregate
						Average				Contractual				Intrinsic
						Exercise				Term (in				Value (in
Options		Shares				Price				years)				thousands)
Outstanding on December 31, 2006			1,724,599			$	20.15
Granted			2,477				50.85
Exercised			(339,151	)			15.71
Canceled			(6,900	)			24.46
Outstanding at June 30, 2007			1,381,025			$	21.28				7.0			$	44,125
Vested or Expected to Vest at June 30, 2007			1,321,904			$	21.13				7.0			$	42,434
Exercisable at June 30, 2007			731,346			$	18.30				6.6			$	25,544

The weighted average grant date fair value of stock options granted during the six months ended June 30, 2007 and 2006, was $20.35 and $18.33, respectively. The aggregate intrinsic value of options (the amount by which the market price of the stock on the date of exercise exceeded the exercise price of the option) exercised during the six months ended June 30, 2007 and 2006 was $12.1 million and $19.8 million, respectively. As of June 30, 2007, there was $6.2 million of unrecognized compensation expense related to stock options that is expected to be recognized over a weighted average period of 1.7 years.

The fair value of each stock option was estimated on the date of the grant using the Black-Scholes option pricing model. No options were granted in the three months ended June 30, 2007.

		Three Months Ended								Six Months Ended
		June 30,								June 30,
Weighted Average Valuation Assumptions(1)		2007				2006				2007				2006
Risk-free interest rate (2)			—				5.0	%			4.7	%			5.0	%
Expected dividend yield			—				—				—				—
Expected stock price volatility (3)			—				36.0	%			36.9	%			36.0	%
Expected life of stock options (in years) (3)			—				5.0				5.0				5.0

Net cash proceeds from the exercise of stock options were $5.3 million and $8.6 million for the six months ended June 30, 2007, and 2006, respectively. The actual income tax benefit realized from stock option exercises total $3.8 million and $5.2 million, respectively, for those same periods.

A summary of restricted stock activity follows:

		Restricted				Range of Market
		Shares				Price Per Share
		Outstanding				on Grant Date
Balance — December 31, 2006			210,894			$	24.75-50.82
Granted			145,876				49.06-53.70
Canceled			(1,740	)			46.51
Vested			(37,382	)			26.23-47.40
Balance — June 30, 2007			317,648			$	24.75-53.70

During the six months ended June 30, 2007 and 2006, we issued 145,876 and 31,506 shares of restricted stock, respectively, with an aggregate fair value of $7.2 million and $1.5 million, respectively. The fair market value of restricted shares that vested during the six months ended June 30, 2007 was $1.3 million. The total value of each restricted stock grant, based on the fair market value of the stock on the date of grant, is amortized to compensation expense on a straight-line basis over the related vesting period.

Our ESPP provides for the sale of our common stock to our employees at discounted purchase prices. The cost per share under this plan is 90% of the fair market value of our common stock on the last day of the purchase period, as defined. The current purchase period under the ESPP began July 1, 2007 and ends December 31, 2007. Compensation expense under the ESPP is based on the discount of 10% at the end of the purchase period.

In June 2006, our Board of Directors authorized the repurchase of 500,000 shares of our common stock from time to time in the open market or otherwise for the primary purpose of offsetting the dilutive effect of shares pursuant to our Employee Stock Purchase Plan. During the first six months of 2007, we repurchased 2,235 shares for approximately $109. As of June 30, 2007, there were 489,265 remaining shares authorized to be repurchased for this purpose. The shares repurchased to date have been purchased in the open market and, upon repurchase, became authorized but unissued shares of our common stock.

3. Earnings per Share

Basic earnings per common share (EPS) is computed by dividing net income by the weighted average number of shares of common stock outstanding during each period. Diluted EPS is computed similarly to basic EPS, except that the denominator is increased for any dilutive common stock equivalents, such as the assumed exercise of dilutive stock options using the treasury stock method and unvested restricted stock awards using the treasury stock method. A reconciliation of these amounts is as follows (share amounts and net income in thousands):

		Three Months Ended								Six Months Ended
		June 30,								June 30,
		2007				2006				2007				2006
Net income		$	16,485			$	12,385			$	30,619			$	22,818
Weighted average number of common shares outstanding — basic			36,864				36,143				36,747				35,915
Effect of dilutive stock options and restricted stock awards			634				890				612				973
Weighted average number of common shares outstanding — diluted			37,498				37,033				37,359				36,888
Basic earnings per common share		$	0.45			$	0.34			$	0.83			$	0.64
Diluted earnings per common share		$	0.44			$	0.33			$	0.82			$	0.62

4. Operating Segments

Our operations are conducted mainly through our sports and athletic, professional fitness, family recreation and resort/spa centers. We have aggregated the activities of our centers into one reportable segment as none of the centers meet the quantitative thresholds for separate disclosure under SFAS No. 131, Disclosures about Segments of an Enterprise and Related Information, and each of the centers has similar expected economic characteristics, service and product offerings and customers. Our chief operating decision makers use EBITDA as the primary measure of segment performance. For purposes of segment financial reporting and discussion of results of operations, “Centers” represent the revenue and associated costs (including general and administrative expenses) from membership dues and enrollment fees, all in-center activities including personal training, spa, cafe and other activities offered to members and non-member participants and rental income generated at the centers. Included in the “All Other” category in the table below is operating information related to nutritional products, media, athletic events, and two restaurants, and expenses, including interest expense, and corporate assets (including depreciation and amortization) not directly attributable to centers. The accounting policies of the “Centers” and operations classified as “All Other” are the same as those described in the summary of significant accounting policies in the annual consolidated financial statements and notes included in the latest Form 10-K, as filed with the SEC.

Financial data and reconciling information for our reporting segment to the consolidated amounts in the financial statements are as follows (in thousands):

		Centers				All Other				Consolidated
Three months ended June 30, 2007:
Revenue		$	158,936			$	3,201			$	162,137
Net income (loss)		$	18,404			$	(1,919	)		$	16,485
Provision (benefit) for income taxes			12,210				(1,279	)			10,931
Interest expense, net			4,600				1,769				6,369
Depreciation and amortization			13,108				1,570				14,678
EBITDA		$	48,322			$	141			$	48,463
Total assets		$	1,057,223			$	132,773			$	1,189,996
Three months ended June 30, 2006:
Revenue		$	119,898			$	2,557			$	122,455
Net income (loss)		$	13,872			$	(1,487	)		$	12,385
Provision (benefit) for income taxes			8,247				(991	)			7,256
Interest expense, net			3,156				984				4,140
Depreciation and amortization			10,643				1,503				12,146
EBITDA		$	35,918			$	9			$	35,927
Total assets		$	713,170			$	91,343			$	804,513
Six months ended June 30, 2007:
Revenue		$	309,047			$	6,191			$	315,238
Net income (loss)		$	34,180			$	(3,561	)		$	30,619
Provision (benefit) for income taxes			22,700				(2,374	)			20,326
Interest expense, net			8,792				3,105				11,897
Depreciation and amortization			25,120				3,245				28,365
EBITDA		$	90,792			$	415			$	91,207
Total assets		$	1,057,223			$	132,773			$	1,189,996
Six months ended June 30, 2006:
Revenue		$	233,114			$	4,766			$	237,880
Net income (loss)		$	25,669			$	(2,851	)		$	22,818
Provision (benefit) for income taxes			16,022				(1,901	)			14,121
Interest expense, net			6,533				1,724				8,257
Depreciation and amortization			20,663				3,002				23,665
EBITDA		$	68,887			$	(26	)		$	68,861
Total assets		$	713,170			$	91,343			$	804,513

5. Income Taxes

We adopted the provisions of FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes (FIN 48), on January 1, 2007. No cumulative effect upon adoption of FIN 48 was recorded; however, certain amounts have been reclassified in the consolidated balance sheet in order to comply with the requirements of the statement.

At January 1, 2007, we provided a liability for $9.4 million for unrecognized tax benefits related to various federal and state income tax matters. Of this amount, $1.1 million would affect our effective tax rate if recognized. The remaining $8.3 million consists of items that are offset by deferred tax assets, and the federal tax benefit of state income tax items.

As of June 30, 2007, we provided a liability for $10.4 million for unrecognized tax benefits related to various federal and state income tax matters. Of this amount, $1.2 million would affect our effective tax rate if recognized. The remaining $9.2 million consists of items that are offset by deferred tax assets, and the federal tax benefit of state income tax items.

Interest and penalties related to unrecognized tax benefits are recognized as a component of the provision for income taxes. At January 1, 2007, we recorded a liability of $0.5 million, net of taxes of $0.3 million for interest and penalties. The liability for the payment of interest and penalties did not materially change during the six months ended June 30, 2007.

We file tax returns in the U.S. federal jurisdiction and various state jurisdictions. The tax years 2003 through 2006 remain open to examination. Approximately $1.2 million of unrecognized tax benefits relate to items that are affected by expiring statutes of limitation within the next 12 months, of which $0.1 million may impact our effective tax rate.

6. Supplementary Cash Flow Information

Decreases (increases) in operating assets and increases (decreases) in operating liabilities are as follows:

		For the Six Months Ended
		June 30,
		2007				2006
Accounts receivable		$	(963	)		$	1,966
Income taxes receivable			3,935				6,531
Inventories			(3,876	)			(723	)
Prepaids and other current assets			(3,050	)			(2,714	)
Deferred membership origination costs			(4,792	)			(2,440	)
Accounts payable			4,499				(262	)
Accrued expenses			312				3,987
Deferred revenue			8,465				7,079
Deferred rent			(110	)			282
Other liabilities			272				—
		$	4,692			$	13,706

7. Commitments and Contingencies

Litigation — We are engaged in legal proceedings incidental to the normal course of business. Due to their nature, such legal proceedings involve inherent uncertainties, including but not limited to, court rulings, negotiations between affected parties and governmental intervention. We have established reserves for matters that are probable and estimable in amounts we believe are adequate to cover reasonable adverse judgments not covered by insurance. Based upon the information available to us and discussions with legal counsel, it is our opinion that the outcome of the various legal actions and claims that are incidental to our business will not have a material adverse impact on the consolidated financial position, results of operations or cash flows; however, such matters are subject to many uncertainties, and the outcome of individual matters are not predictable with assurance.

Item 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Forward-Looking Statements

The following discussion may contain forward-looking statements regarding us and our business, prospects and results of operations that are subject to certain risks and uncertainties posed by many factors and events that could cause our actual business, prospects and results of operations to differ materially from those that may be anticipated by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those described under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2006. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this report. We undertake no obligation to revise any forward-looking statements in order to reflect events or circumstances that may subsequently arise. Readers are urged to carefully review and consider the various disclosures made by us in this report and in our other reports filed with the SEC that advise interested parties of the risks and factors that may affect our business.

The interim financial statements filed on this Form 10-Q and the discussions contained herein should be read in conjunction with the annual consolidated financial statements and notes included in the latest Form 10-K, as filed with the SEC, which includes audited consolidated financial statements for the three fiscal years ended December 31, 2006.

Overview

We operate distinctive and large sports and athletic, professional fitness, family recreation and resort/spa centers. As of July 15, 2007, we operated 65 centers primarily in residential locations across 15 states under the LIFE TIME FITNESS brand. We commenced operations in 1992 by opening centers in the Minneapolis and St. Paul, Minnesota area. During this period of initial growth, we refined the format and model of our center while building our membership base, infrastructure and management team. As a result, several of the centers that opened during our early years have designs that differ from our current model center.

We compare the results of our centers based on how long the centers have been open at the most recent measurement period. We include a center for comparable center revenue purposes beginning on the first day of the thirteenth full calendar month of the center’s operation, prior to which time we refer to the center as a new center. As we grow our presence in existing markets by opening new centers, we expect to attract some memberships away from our other existing centers already in those markets, reducing revenue and initially lowering the memberships of those existing centers. In addition, as a result of new center openings in existing markets, and because older centers will represent an increasing proportion of our center base over time, our comparable center revenue may be lower in future periods than in the past. Of the eight new centers we plan to open in 2007, we expect that four will be in existing markets. We do not expect that operating costs of our planned new centers will be significantly higher than centers opened in the past, and we also do not expect that the planned increase in the number of centers will have a material adverse effect on the overall financial condition or results of operations of existing centers. Another result of opening new centers, as well as the assumption of operations of seven leased facilities in 2006, is that our center operating margins may be lower than they have been historically while the centers build membership base. We expect both the addition of pre-opening expenses and the lower revenue volumes characteristic of newly-opened centers, as well as the facility costs for the seven leased centers, to affect our center operating margins at these new centers and on a consolidated basis. Our operating results generally do not include the center owned by Bloomingdale LIFE TIME Fitness, L.L.C. because it is accounted for as an investment in an unconsolidated affiliate and is not consolidated in our financial statements.

We measure performance using such key operating statistics as average revenue per membership, including membership dues and enrollment fees, average in-center revenue per membership and center operating expenses, with an emphasis on payroll and occupancy costs, as a percentage of sales and comparable center revenue growth. We use center revenue and EBITDA margins to evaluate overall performance and profitability on an individual center basis. In addition, we focus on several membership statistics on a center-level and system-wide basis. These metrics include growth of center membership levels and growth of system-wide memberships, percentage center membership to target capacity, center membership usage, center membership mix among individual, couple and family memberships and center attrition rates.

We have three primary sources of revenue. First, our largest source of revenue is membership dues and enrollment fees paid by our members. We recognize revenue from monthly membership dues in the month to which they pertain. We recognize revenue from enrollment fees over the expected average life of the membership, which we estimate to be 36 months. Second, we generate revenue, which we refer to as in-center revenue, at our centers from fees for personal training, dieticians, group fitness training and other member activities, sales of products at our LifeCafe, sales of products and services offered at our LifeSpa and renting space in certain of our centers. And third, we have expanded the LIFE TIME FITNESS brand into other wellness-related offerings that generate revenue, which we refer to as other revenue, including our media, corporate wellness and athletic events businesses. Our primary media offering is our magazine, Experience Life. Other revenue also includes our two restaurants and rental income on our Highland Park, Minnesota office building.

Center operations expenses consist primarily of salary, commissions, payroll taxes, benefits, real estate taxes and other occupancy costs, utilities, repairs and maintenance, supplies, administrative support and communications to operate our centers. Advertising and marketing expenses consist of our marketing department costs and media and advertising costs to support center membership growth and our media, athletic event and nutritional product businesses. General and administrative expenses include costs relating to our centralized support functions, such as accounting, information systems, procurement, real estate and development and member relations. Our other operating expenses include the costs associated with our media, corporate wellness and athletic events businesses, our two restaurants and other corporate expenses, as well as gains or losses on our dispositions of assets. Our total operating expenses may vary from period to period depending on the number of new centers opened during that period and the number of centers engaged in presale activities.

Our primary capital expenditures relate to the construction of new centers and updating and maintaining our existing centers. The land acquisition, construction and equipment costs for a current model center, since 2000, has ranged from approximately $18 to $36 million, and can vary considerably based on variability in land cost and the cost of construction labor, as well as whether or not a tennis area is included or whether or not we expand the gymnasium. The average cost for the current model centers opened in 2006 increased to $29.5 million as a result of higher land costs and higher construction costs in states where we are opening centers. We expect the average cost of new centers constructed in 2007 to be approximately $30 million. We perform maintenance and make improvements on our centers and equipment throughout each year. We conduct a more thorough remodeling project at each center approximately every four to six years.

Critical Accounting Policies and Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the U.S., or GAAP, requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. In recording transactions and balances resulting from business operations, we use estimates based on the best information available. We use estimates for such items as depreciable lives, volatility factors, expected lives and rate of return in determining fair value of option grants, tax provisions and provisions for uncollectible receivables. We also use estimates for calculating the amortization period for deferred enrollment fee revenue and associated direct costs, which are based on the weighted average expected life of center memberships. We revise the recorded estimates when better information is available, facts change or we can determine actual amounts. These revisions can affect operating results.

Our critical accounting policies and use of estimates are discussed in and should be read in conjunction with the annual consolidated financial statements and notes included in the latest Form 10-K, as filed with the SEC, which includes audited consolidated financial statements for the three fiscal years ended December 31, 2006.

Results of Operations

The following table sets forth our statement of operations data as a percentage of total revenues and also sets forth other financial and operating data:

		For the Three								For the Six
		Months Ended								Months Ended
		June 30,								June 30,
		2007				2006				2007				2006
Revenue
Center revenue:
Membership dues			65.8	%			65.8	%			65.7	%			65.7	%
Enrollment fees			3.9				4.5				3.8				4.5
In-center revenue			28.3				27.6				28.5				27.8
Total center revenue			98.0				97.9				98.0				98.0
Other revenue			2.0				2.1				2.0				2.0
Total revenue			100.0				100.0				100.0				100.0
Operating expenses
Center operations			58.0				56.0				58.2				56.2
Advertising and marketing			3.4				3.8				4.1				4.4
General and administrative			6.6				8.9				6.7				8.3
Other operating			2.3				2.2				2.3				2.4
Depreciation and amortization			9.0				9.9				9.0				9.9
Total operating expenses			79.3				80.8				80.3				81.2
Income from operations			20.7				19.2				19.7				18.8
Other income (expense)
Interest expense, net			(4.0	)			(3.4	)			(3.8	)			(3.5	)
Equity in earnings of affiliate			0.2				0.2				0.2				0.2
Total other income (expense)			(3.8	)			(3.2	)			(3.6	)			(3.3	)
Income before income taxes			16.9				16.0				16.1				15.5
Provision for income taxes			6.7				5.9				6.4				5.9
Net income			10.2	%			10.1	%			9.7	%			9.6	%
Other financial and operating data:
Average center revenue per membership		$	338			$	318			$	672			$	632
Average in-center revenue per membership		$	98			$	90			$	195			$	179
Centers open at end of period			64				49				64				49
Number of memberships at end of period			489,489				393,011				489,489				393,011

Three Months Ended June 30, 2007, Compared to Three Months Ended June 30, 2006

Total revenue. Total revenue increased $39.6 million, or 32.4%, to $162.1 million for the three months ended June 30, 2007, from $122.5 million for the three months ended June 30, 2006.

Total center revenue grew $39.0 million, or 32.6%, to $158.9 million for the three months ended June 30, 2007, from $119.9 million for the three months ended June 30, 2006. Comparable center revenue increased 6.6% for the three months ended June 30, 2007 compared to the three months ended June 30, 2006. Of the $39.0 million increase in total center revenue,

	•		67.1% was from membership dues, which increased $26.1 million, due to increased memberships at new and existing centers, junior membership programs and increased sales of Sports, Advantage and other value-added memberships.
	•		28.9% was from in-center revenue, which increased $12.1 million primarily as a result of our members’ increased use of our personal training, member activities, LifeCafe and LifeSpa products and services. As a result of this in-center revenue growth and our focus on broadening our offerings to our members, average in-center revenue per membership increased to $98 for the three months ended June 30, 2007, from $90 for the three months ended June 30, 2006.

•

4.0% was from enrollment fees, which are deferred until a center opens and recognized on a straight-line basis over 36 months. Enrollment fees increased $0.8 million for the three months ended June 30, 2007 to $6.4 million. Our number of memberships increased 24.5% to 489,489 at June 30, 2007, from 393,011 at June 30, 2006.

Other revenue increased $0.6 million, or 25.2%, to $3.2 million for the three months ended June 30, 2007, which was primarily due to increased advertising revenue from our media business.

Center operations expenses. Center operations expenses totaled $94.0 million, or 59.2% of total center revenue (or 58.0% of total revenue), for the three months ended June 30, 2007 compared to $68.5 million, or 57.2% of total center revenue (or 56.0% of total revenue), for the three months ended June 30, 2006. This $25.5 million increase primarily consisted of $13.6 million in additional payroll-related costs to support increased memberships at new centers and an increase of $6.6 million in facility-related costs, including incremental lease expense for the seven leased centers for which we assumed operations in late July 2006, utilities and real estate taxes, and an increase in expenses to support in-center products and services. As a percent of total center revenue, center operations expense increased primarily due to the lower center operating margins associated with new centers including the leased centers.

Advertising and marketing expenses. Advertising and marketing expenses were $5.4 million, or 3.4% of total revenue, for the three months ended June 30, 2007, compared to $4.7 million, or 3.8% of total revenue, for the three months ended June 30, 2006. These expenses increased primarily due to advertising for our new centers and those centers engaging in presale activities. As a percent of total revenue, advertising and marketing expenses decreased primarily due to fewer and more efficient marketing campaigns.

General and administrative expenses. General and administrative expenses were $10.7 million, or 6.6% of total revenue, for the three months ended June 30, 2007, compared to $10.9 million, or 8.9% of total revenue, for the three months ended June 30, 2006. These expenses decreased primarily due to lower share-based compensation expense compared to the prior period.

Other operating expenses. Other operating expenses were $3.8 million for the three months ended June 30, 2007, compared to $2.6 million for the three months ended June 30, 2006.

Depreciation and amortization. Depreciation and amortization was $14.7 million for the three months ended June 30, 2007, compared to $12.1 million for the three months ended June 30, 2006. This $2.6 million increase was due primarily to depreciation on our new centers opened in 2006 and early 2007.

Interest expense, net. Interest expense, net of interest income, was $6.4 million for the three months ended June 30, 2007, compared to $4.1 million for the three months ended June 30, 2006. This increase was primarily the result of increased average debt balances and increased interest rates on floating rate debt.

Provision for income taxes. The provision for income taxes was $10.9 million for the three months ended June 30, 2007, compared to $7.3 million for the three months ended June 30, 2006. This $3.6 million increase was due to an increase in income before income taxes of $7.8 million.

Net income. As a result of the factors described above, net income was $16.5 million, or 10.2% of total revenue, for the three months ended June 30, 2007, compared to $12.4 million, or 10.1% of total revenue, for the three months ended June 30, 2006.

Six Months Ended June 30, 2007, Compared to Six Months Ended June 30, 2006

Total revenue. Total revenue increased $77.3 million, or 32.5%, to $315.2 million for the six months ended June 30, 2007, from $237.9 million for the six months ended June 30, 2006.

Total center revenue grew $75.9 million, or 32.6%, to $309.0 million for the six months ended June 30, 2007, from $233.1 million for the six months ended June 30, 2006. Comparable center revenue increased 7.0% for the six months ended June 30, 2007 compared to the six months ended June 30, 2006. Of the $75.9 million increase in total center revenue,

•

67.0% was from membership dues, which increased $50.8 million, due to increased memberships at new and existing centers, junior membership programs and increased sales of Sports, Advantage and other value-added memberships.

	•		29.1% was from in-center revenue, which increased $23.7 million primarily as a result of our members’ increased use of our personal training, member activities, LifeCafe and LifeSpa products and services. As a result of this in-center revenue growth and our focus on broadening our offerings to our members, average in-center revenue per membership increased to $195 for the six months ended June 30, 2007, from $179 for the six months ended June 30, 2006.
	•		3.9% was from enrollment fees, which are deferred until a center opens and recognized on a straight-line basis over 36 months. Enrollment fees increased $1.4 million for the six months ended June 30, 2007 to $12.1 million. Our number of memberships increased 24.5% to 489,489 at June 30, 2007, from 393,011 at June 30, 2006.

Other revenue increased $1.4 million, or 29.9%, to $6.2 million for the six months ended June 30, 2007, which was primarily due to increased advertising revenue from our media business.

Center operations expenses. Center operations expenses totaled $183.5 million, or 59.4% of total center revenue (or 58.2% of total revenue), for the six months ended June 30, 2007 compared to $133.6 million, or 57.3% of total center revenue (or 56.2% of total revenue), for the six months ended June 30, 2006. This $49.9 million increase primarily consisted of $25.7 million in additional payroll-related costs to support increased memberships at new centers and an increase of $13.0 million in facility-related costs, including incremental lease expense for the seven leased centers for which we assumed operations in late July 2006, utilities and real estate taxes, and an increase in expenses to support in-center products and services. As a percent of total center revenue, center operations expense increased primarily due to the lower center operating margins associated with new centers including the leased centers.

Advertising and marketing expenses. Advertising and marketing expenses were $12.8 million, or 4.1% of total revenue, for the six months ended June 30, 2007, compared to $10.6 million, or 4.4% of total revenue, for the six months ended June 30, 2006. These expenses increased primarily due to advertising for our new centers and those centers engaging in presale activities.

General and administrative expenses. General and administrative expenses were $21.2 million, or 6.7% of total revenue, for the six months ended June 30, 2007, compared to $19.7 million, or 8.3% of total revenue, for the six months ended June 30, 2006. This $1.5 million increase was primarily due to increased costs to support the growth in our membership and center base in 2007. As a percent of total revenue, general and administrative expense decreased primarily due to lower share-based compensation expense in the first six months of 2007 compared to the same period in 2006.

Other operating expenses. Other operating expenses were $7.1 million for the six months ended June 30, 2007, compared to $5.6 million for the six months ended June 30, 2006.

Depreciation and amortization. Depreciation and amortization was $28.4 million for the six months ended June 30, 2007, compared to $23.7 million for the six months ended June 30, 2006. This $4.7 million increase was due primarily to depreciation on our new centers opened in 2006 and early 2007.

Interest expense, net. Interest expense, net of interest income, was $11.9 million for the six months ended June 30, 2007, compared to $8.3 million for the six months ended June 30, 2006. This increase was primarily the result of increased average debt balances and increased interest rates on floating rate debt.

Provision for income taxes. The provision for income taxes was $20.3 million for the six months ended June 30, 2007, compared to $14.1 million for the six months ended June 30, 2006. This $6.2 million increase was due to an increase in income before income taxes of $14.0 million.

Net income. As a result of the factors described above, net income was $30.6 million, or 9.7% of total revenue, for the six months ended June 30, 2007, compared to $22.8 million, or 9.6% of total revenue, for the six months ended June 30, 2006.

Liquidity and Capital Resources

Liquidity

Historically, we have satisfied our liquidity needs through various debt arrangements, sales of equity and cash provided by operations. Principal liquidity needs have included the development of new centers, debt service requirements and expenditures necessary to maintain and

update our existing centers and their related fitness equipment. We believe that we can satisfy our current and longer-term debt service obligations and capital expenditure requirements with cash flow from operations, by the extension of the terms of or refinancing our existing debt facilities, through sale-leaseback transactions and by continuing to raise long-term debt or equity capital, although there can be no assurance that such actions can or will be completed. Our business model operates with negative working capital because we carry minimal accounts receivable due to our ability to have monthly membership dues paid by electronic draft, we defer enrollment fee revenue and we fund the construction of our new centers under standard arrangements with our vendors that are paid with proceeds from long-term debt.

Operating Activities

As of June 30, 2007, we had total cash and cash equivalents of $8.3 million and $5.7 million of restricted cash that serves as collateral for certain of our debt arrangements. We also had $96.2 million available under the existing terms of our revolving credit facility as of June 30, 2007.

Net cash provided by operating activities was $66.2 million for the six months ended June 30, 2007, compared to $60.5 million for the six months ended June 30, 2006.

Investing Activities

Investing activities consist primarily of purchasing real property, constructing new centers and purchasing new fitness equipment. In addition, we invest in capital expenditures to maintain and update our existing centers. We finance the purchase of our property and equipment by cash payments or by financing through notes payable or capital lease obligations. For current model centers, our investment, through June 30, 2007, has ranged from approximately $18 to $36 million, which includes the land, the building and approximately $3 million of exercise equipment, furniture and fixtures. We expect the average cost of new centers constructed in 2007 to be approximately $30 million.

Net cash used in investing activities was $210.9 million for the six months ended June 30, 2007, compared to $104.1 million for the six months ended June 30, 2006. The increase of $106.8 million was primarily due to capital expenditures for the construction of new centers, purchase of land for future centers and updates to our existing centers.

The following schedule reflects capital expenditures by type of expenditure:

		For the Six Months Ended
		June 30,
		2007				2006
		(In thousands)
Capital expenditures for new center land, building and construction		$	173,135			$	91,588
Capital expenditures for updating existing centers and corporate infrastructure			27,311				18,844
Total capital expenditures		$	200,446			$	110,432

At July 15, 2007, we had purchased the real property for the eight new centers that we plan to open in 2007, five of which had already opened. In addition, we had purchased the real property for six of the ten current model centers we plan to open in 2008, and we had entered into agreements to purchase real property for the development of three current model centers that we plan to open in 2008.

We expect our capital expenditures to be approximately $160 to $180 million in the remaining six months of 2007, of which we expect approximately $25 to $35 million to be one-time in nature for the remodel of the seven centers leased in July 2006 and the completion of a new office building we plan to move into in the fourth quarter of 2007. In addition, we expect to incur approximately $122 to $127 million for new center construction and approximately $13 to $18 million for the updating of existing centers and corporate infrastructure. We plan to fund these capital expenditures with cash from operations, our revolving line of credit and additional mortgage financing.

Financing Activities

Net cash provided by financing activities was $146.1 million for the six months ended June 30, 2007, compared to $39.0 million for the six months ended June 30, 2006. The change of $107.1 million was primarily due to a new $105.0 million mortgage financing.

On April 15, 2005, we entered into a Credit Agreement, with U.S. Bank National Association, as administrative agent and lead arranger, J.P. Morgan Securities, Inc., as syndication agent, and the banks party thereto from time to time (the “U.S. Bank Facility”). On May 31, 2007, we entered into a Second Amended and Restated Credit Agreement effective May 31, 2007 to amend and restate our U.S. Bank Facility. The material changes to the U.S. Bank Facility increase the amount of the facility from $300.0 million to $400.0 million, which may be increased by an additional $25.0 million upon the exercise of an accordion feature, and extend the term of the facility to May 31, 2012. Interest on the amounts borrowed under the U.S. Bank Facility continues to be based on (i) a base rate, which is the greater of (a) U.S. Bank’s prime rate and (b) the federal funds rate plus 50 basis points, or (ii) an adjusted Eurodollar rate, plus, in either case (i) or (ii), the applicable margin within a range based on our consolidated leverage ratio. In connection with the amendment and restatement of the U.S. Bank Facility, the applicable margin ranges were reduced to zero at all times (from zero to 25 basis points) for base rate borrowings and decreased to 62.5 to 150 basis points (from 75 to 175 basis points) for Eurodollar borrowings. As of June 30, 2007, $285.0 million was outstanding on the U.S. Bank Facility, plus $18.8 million related to letters of credit.

The weighted average interest rate and debt outstanding under the revolving credit facility for the six months ended June 30, 2007 was 6.7% and $194.2 million, respectively. The weighted average interest rate and debt outstanding under the revolving credit facility for the six months ended June 30, 2006 was 6.2% and $108.6 million, respectively.

On January 24, 2007, LTF CMBS I, LLC, a wholly owned subsidiary, obtained a commercial mortgage-backed loan in the original principal amount of $105.0 million from Goldman Sachs Commercial Mortgage Capital, L.P. pursuant to a loan agreement dated January 24, 2007. The mortgage financing is secured by six properties owned by the subsidiary and operated as Life Time Fitness centers located in Tempe, Arizona, Commerce Township, Michigan, and Garland, Flower Mound, Willowbrook and Sugar Land, Texas. The mortgage financing matures in February 2017.

Interest on the amounts borrowed under the mortgage financing referenced above is 6.03% per annum, with a constant monthly debt service payment of $0.6 million. Our subsidiary LTF CMBS I, LLC, as landlord, and LTF Club Operations Company, Inc., another wholly owned subsidiary of ours as tenant, entered into a lease agreement dated January 24, 2007 with respect to the properties. The initial term of the lease ends in February 2022, but the lease term may be extended at the option of LTF Club Operations Company, Inc. for two additional periods of five years each. Our subsidiaries may not transfer any of the properties except as permitted under the loan agreement. We guarantee the obligations of our subsidiary under the lease.

As additional security for LTF CMBS I, LLC’s obligations under the mortgage financing, the subsidiary granted a security interest in all assets owned from time to time by the subsidiary including the properties which had a net book value of $99.1 million on January 24, 2007, the revenues from the properties and all other tangible and intangible property, and certain bank accounts belonging to the subsidiary that the lender has required pursuant to the mortgage financing.

We are in compliance in all material respects with all restrictive and financial covenants under our various credit facilities as of June 30, 2007.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We invest our excess cash in highly liquid short-term investments. These investments are not held for trading or other speculative purposes. Changes in interest rates affect the investment income we earn on our cash and cash equivalents and, therefore, impact our cash flows and results of operations. As of June 30, 2007 and December 31, 2006, our floating rate indebtedness was approximately $285.0 million and $245.0 million, respectively. If long-term floating interest rates were to have increased by 100 basis points during the six months ended June 30, 2007, our interest costs would have increased by approximately $1.0 million. If short-term interest rates were to have increased by 100 basis points during the six months ended June 30, 2007, our interest income from cash equivalents would have increased by less than $0.1 million. These amounts are determined by considering the impact of the hypothetical interest rates on our floating rate indebtedness and cash equivalents balances at June 30, 2007.

Item 4. CONTROLS AND PROCEDURES

As of the end of the period covered by this report, we conducted an evaluation, under the supervision and with the participation of the principal executive officer and principal financial officer, of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)). Based on this evaluation, the principal executive officer and principal financial officer concluded that our disclosure controls and procedures are effective to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms and is accumulated and communicated to our management, including the principal executive and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. There was no change in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

PART II. OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

Not applicable.

ITEM 1A. RISK FACTORS

Not applicable.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities in Second Quarter 2007

										Total Number of				Maximum Number of
		Total Number				Average				Shares Purchased as				Shares that May Yet be
		of Shares				Price Paid				Part of Publicly				Purchased Under the
Period		Purchased				per Share				Announced Plan (1)				Plan (1)
April 1 - 30, 2007			—				—				—				489,265
May 1 - 31, 2007			—				—				—				489,265
June 1 - 30, 2007			—				—				—				489,265
Total			—				—				—				489,265

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

At the Annual Meeting of Shareholders held on April 26, 2007, the shareholders voted on the following:

1. Proposal to elect a board of seven directors, to serve until the next annual meeting of shareholders or until their successors have been duly elected and qualified. The following directors were elected based on the votes listed below:

Nominee		For				Withheld
Bahram Akradi			33,826,174				386,339
Giles H. Bateman			34,159,342				53,171
James F. Halpin			34,159,677				52,836
Guy C. Jackson			33,457,419				755,094
John B. Richards			34,137,822				74,691
Stephen R. Sefton			33,826,417				386,096
Joseph H. Vassalluzzo			34,142,784				69,729

2. Proposal to ratify the appointment of Deloitte & Touche LLP as our independent registered public accounting firm for the fiscal year ending December 31, 2007. The proposal passed on a vote of 34,068,858 in favor, 131,704 against, 11,951 abstentions and no broker non-votes.

As of the close of business on the record date for the meeting, which was February 26, 2007, there were 36,839,977 shares of common stock outstanding and entitled to vote at the meeting. Each share of common stock was entitled to one vote per share.

ITEM 5. OTHER INFORMATION

Not applicable.

ITEM 6. EXHIBITS

     Exhibits filed with this report

Exhibit
No.		Description		Method of Filing
3.1		Amended and Restated Articles of Incorporation of the Registrant		Incorporated by reference to Exhibit 3.1 to the Registrant’s Form 10-Q for the quarter ended June 30, 2004 (File No. 001-32230)
3.2		Amended and Restated Bylaws of the Registrant		Incorporated by reference to Exhibit 3.4 to Amendment No. 2 to the Registrant’s Registration Statement on Form S-1 (File No. 333-113764), filed with the Commission on May 21, 2004
4		Specimen of Common Stock Certificate		Incorporated by reference to Exhibit 4 to Amendment No. 4 to the Registrant’s Registration Statement of Form S-1 (File No. 333-113764), filed with the Commission on June 23, 2004
10.1		Second Amended and Restated Credit Agreement, dated as of May 31, 2007, among the Company, U.S. Bank National Association, as administrative agent and lead arranger, J.P. Morgan Securities Inc. and Royal Bank of Canada, as co-syndication agents, BMO Capital Markets, as documentation agent, and the banks party thereto from time to time		Filed Electronically
31.1		Rule 13a-14(a)/15d-14(a) Certification by Principal Executive Officer		Filed Electronically
31.2		Rule 13a-14(a)/15d-14(a) Certification by Principal Financial and Accounting Officer		Filed Electronically
32		Section 1350 Certifications		Filed Electronically

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, Life Time Fitness, Inc. has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized on August 1, 2007.

INDEX TO EXHIBITS

Exhibit
No.		Description		Method of Filing
3.1		Amended and Restated Articles of Incorporation of the Registrant		Incorporated by reference to Exhibit 3.1 to the Registrant’s Form 10-Q for the quarter ended June 30, 2004 (File No. 001-32230)
3.2		Amended and Restated Bylaws of the Registrant		Incorporated by reference to Exhibit 3.4 to Amendment No. 2 to the Registrant’s Registration Statement on Form S-1 (File No. 333-113764), filed with the Commission on May 21, 2004
4		Specimen of Common Stock Certificate		Incorporated by reference to Exhibit 4 to Amendment No. 4 to the Registrant’s Registration Statement of Form S-1 (File No. 333-113764), filed with the Commission on June 23, 2004
10.1		Second Amended and Restated Credit Agreement, dated as of May 31, 2007, among the Company, U.S. Bank National Association, as administrative agent and lead arranger, J.P. Morgan Securities Inc. and Royal Bank of Canada, as co-syndication agents, BMO Capital Markets, as documentation agent, and the banks party thereto from time to time		Filed Electronically
31.1		Rule 13a-14(a)/15d-14(a) Certification by Principal Executive Officer		Filed Electronically
31.2		Rule 13a-14(a)/15d-14(a) Certification by Principal Financial and Accounting Officer		Filed Electronically
32		Section 1350 Certifications		Filed Electronically