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Nov 14

Planet Fitness Reports 22 Percent Increase in 2019 Q3 Revenue – Club Industry

Fitness Comments Off on Planet Fitness Reports 22 Percent Increase in 2019 Q3 Revenue – Club Industry

Planet Fitness, Hampton, New Hampshire, reported third quarter 2019 revenue of $166.8 million, a year-over-year increase of 22.1 percent, according tofinancials released Nov. 7.

The company opened 41 new franchisedclubs during the quarter and saw system-wide same-store sales increase by 7.9 percent.

Related: Club Industry's Top 100 Health Clubs of 2019 Photo Gallery

"We delivered another quarter of very solid results," CEO Chris Rondeau said in a media release. "High system-wide same store sales, combined with accelerated new store openings and our franchisees' continued commitment to re-equip their existing clubs with new equipment, fueled a 22 percent increase in total revenue.The third quarter was also highlighted by our highest-attended franchisee conference to date with over 1,500 attendees from across the system coming together to share ideas on how to strengthen the Planet Fitness brand, enhance the member experience and drive new member sign-ups.

The company's franchise segment revenue increased to $66.7 million, corporate-owned stores segment revenue grew to$40.7 million and equipment segment revenue improved to $59.4 million, representing increases of 21.7percent, 15.1percentand 27.9percent, respectively.

Planet Fitness' adjusted EBITDAincreased 22.2percent to $65.7million.

The 41new club openings boosted Planet Fitness' total facility count to 1,899as of Sept.30, 2019.

Based on several factors, including our experienced franchisees and their ability to execute, the significant amount of projected store expansion still ahead and our increasing marketing spend, I am confident that the business is well positioned to drive continued growth and increased profitability, Rondeau said in the release.

In other news, the company has proposed a recapitalization transaction of its subsidiaries' existing securitized financing facility. As of Sept. 30, the company claimed $1.2 billion in outstanding debt under its existing financing facility and is seeking to issue $550 million Series 2019-1 Fixed Rate Senior Secured Notes. Net proceeds from the facility will be used to pay transaction costs and for working capital and general corporate purposes. The proposal, if approved, is slated to close during the fourth quarter.

Additionally, Planet Fitness announced its first Australian clubs have opened in the New South Wales cities of Tuggerah and Gosford with a third location expected to open in Casula in 2020. The company has signed a special development agreement with Bravo Fit Holdings Pty Ltd., a group consisting of American and Australian franchisees, to develop 35 locations in the country in coming years.

The company ranked No. 6 onClub Industrys Top 100 Health Clubs of 2019 listwith$572.9 million in 2018revenue from corporate-owned locations and franchisee fees but not individual franchisee revenue.

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Planet Fitness Reports 22 Percent Increase in 2019 Q3 Revenue - Club Industry

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