Tommaso Boddi/Getty Images Entertainment
Planet Fitness (New York Stock Exchange:PLNT) reported that revenue increased 13.6% year over year to $277.6 million in the third quarter. Systemwide sales increased 8.4% during the quarter.
Franchise segment revenue increased 21.6% to $98.2 million. The increase in franchise segment revenue for the quarter was primarily due to an $8.0 million increase in franchise royalty income, a $3.5 million increase in franchise and other fees, a $3.0 million increase in National Advertising Fund revenue, a $1.5 million increase in equipment placement revenue and $1.3 million of revenue associated with the sale of HVAC units to franchisees.
Revenue from the corporate-owned stores segment increased 11.8% to $113.2 million. Equipment segment revenue increased 6.1% to $66.1 million.
Adjusted EBITDA of $51.8 million was up from $38.2 million generated a year ago. Net income was $41.3 million versus $30.7 million a year ago. EPS was $0.46 vs. consensus of $0.43.
Looking ahead, PLNT sees full-year revenue growth of around +14% versus +12% in the previous outlook. The company also expects full-year adjusted EBITDA growth of around 18% versus +17% in the previous outlook. Planet Fitness (PLNT) now expects the placement of approximately 130 to 140 new teams in franchisee-owned locations, and the opening of new stores throughout the system of approximately 150 to 160 locations.
“With our industry-leading results, we are adjusting our return model at the store level to further enhance the attractiveness of opening and operating Planet Fitness stores in a new macro environment. The changes include decreasing certain capital investments by extending the to replace equipment and complete remodels, to prepare ourselves and our franchisees for continued long-term sustainable growth,” said interim CEO Craig Benson.
Planet Fitness (PLNT) Stock Rises 8.75% in premarket transactions at $60.00
