Planet Fitness, Inc. (NYSE: PLNT) stock jumped about 10% after the franchisee and operator of fitness centers reported financial results for its third quarter ended September 30, 2019.
Third Quarter Fiscal 2019 Highlights
- Total revenue increased from the prior year period by 22.1% to $166.8 million.
- System-wide same store sales increased 7.9%.
- Net income attributable to Planet Fitness, Inc. was $25.8 million, or $0.31 per diluted share, compared to net income attributable to Planet Fitness, Inc. of $17.5 million, or $0.20 per diluted share in the prior year period.
- Net income increased 45.0% to $29.7 million, compared to net income of $20.5 million in the prior year period.
- Adjusted net income increased 19.5% to $33.1 million, or $0.36 per diluted share, compared to $27.7 million, or $0.28 per diluted share in the prior year period.
- Adjusted EBITDA increased 22.2% to $65.7 million from $53.8 million in the prior year period.
- 41 new Planet Fitness stores were opened during the period, bringing system-wide total stores to 1,899 as of September 30, 2019.
As for the Company’s outlook, Planet Fitness expects that for the year ending December 31st, 2019 – Total revenue to increase approximately 19% as compared to the year ended December 31, 2018, up from prior guidance of approximately 18%, and adjusted net income to increase approximately 21% as compared to the year ended December 31, 2018, up from prior guidance of approximately 20%
“”We delivered another quarter of very solid results,” stated Chris Rondeau, Chief Executive Officer. “High-single digit 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% 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. 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.”
In addition, on Friday the Company also announced international expansion to Australia. The country’s first official Judgement Free Zones® are located in Tuggerah and Gosford in the Central Coast of New South Wales, and a location in Casula is expected to open in 2020.
Planet Fitness has signed an Area Development Agreement with Bravo Fit Holdings Pty Ltd. (“Bravo”), which will bring a minimum of 35 Planet Fitness locations to Australia over the next several years.
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