There are definitely problems here. When the CEO is known to never acknowledge issues and acts as arrogant as any CEO out there and then does a 180 and says things are more difficult than he's seen in the last 25 years there are obviously major problems. Membership attrition is high, new member acqusition is more challenging (and more costly), in-center revenue is struggling mightily, and there are no more operating costs to remove from the model...wow, talk about a disaster. the next leg is down not up and i don't know how everyone isn't running for the door on this stock. it is so clearly a sell.

And what about new clubs? Same store sales are down mid single digits and the company has almost no new clubs (as a % of total square footage and store count) to cover up this slip in same store. As more centers reach maturity and start going negative on comps the entire revenue figure will begin to steadily go backwards. Why do you think LTM did a deal for advertising in their clubs? They are desperate for revenue and it isn't going to help. They are going away from the core business and it will hurt member experience (who likes ads slammed in their face everywhere they go?) which will hurt LTM in the long run.

This train hasn't wrecked yet but it's on its way in my opinion.

who knows. Maybe I am completely wrong but every single variable looks so bad it's hard to draw any other conclusion.