Planet Fitness Profits Surge on Strong Comps, Tax Reform

Planet Fitness Profits Surge on Strong Comps, Tax Reform

Planet Fitness‘ (NYSE:PLNT) $10-per-month memberships and non-intimidating environment are proving widespread with fitness center-goers, which, in flip, is driving strong income and earnings progress. The corporate reported first-quarter outcomes this week.

Planet Fitness outcomes: The uncooked numbers

Metric Q1 2018 Q1 2017 Yr-Over-Yr Change
Income $121.33 million $ninety one.10 million 33%
Working revenue $38.ninety two million $33.05 million 18%
Earnings per share $zero.23 $zero.14 sixty four%

DATA SOURCE: PLANET FITNESS Q1 2018 EARNINGS PRESS RELEASE.

What occurred with Planet Fitness this quarter?

Planet Fitness' systemwide similar-retailer gross sales maintained their torrid price of progress, rising a blistering eleven.1%. Mixed with the almost 200  new shops Planet Fitness opened in the course of the previous yr — together with forty seven places within the first quarter — this helped to gasoline a 33.2% rise in complete income, to $121 million.

PLANET FITNESS EXPANDED ITS STORE COUNT TO 1,565 LOCATIONS IN THE FIRST QUARTER. IMAGE SOURCE: PLANET FITNESS.

“Our success is being fueled by the enlargement of our excessive worth, low value non-intimidating fitness idea in present and new markets mixed with rising model consciousness from elevated investments in nationwide and native promoting,” CEO Chris Rondeau stated in a press launch.

Company-owned shops income jumped 21% to $32.7 million — pushed by similar-retailer gross sales progress and Planet Fitness' acquisition of six franchisee-owned shops through the quarter — whereas gear income leapt 24.eight% to $34 million, boosted by new retailer openings.

Moreover, franchise phase income soared forty eight.four% to $fifty four.6 million, although it must be famous that $10.5 million of this improve is from promoting income, which Planet Fitness started reporting within the first quarter in reference to its adoption of a brand new U.S. GAAP income recognition commonplace, and which the corporate makes use of to fund advertising campaigns on behalf of franchisees.

All advised, adjusted internet revenue, which benefited from a decrease efficient tax price on account of tax reform, climbed forty two.three% to $26.2 million, or $zero.27 per share. And adjusted EBITDA — or earnings earlier than curiosity, taxes, depreciation, and amortization — elevated 15.four% to $forty eight.eight million.

Wanting ahead

Planet Fitness reiterated its full-yr monetary steerage, which incorporates:

  • Complete income progress of roughly 20%.
  • Systemwide similar-retailer gross sales progress within the “excessive single-digit vary.”
  • Adjusted internet revenue and adjusted EPS progress of roughly forty%.

“We proceed to discover methods to strengthen our providing, together with using know-how to offer extra immersive exercise experiences and personalised exercise suggestions,” Rondeau stated. “By concentrating on informal and first-time gym customers, we consider Planet Fitness has an extended runway for progress based mostly on the truth that the overwhelming majority of the U.S. inhabitants doesn't personal a health club membership.”

10 shares we like higher than Planet Fitness
When investing geniuses David and Tom Gardner have a inventory tip, it may possibly pay to pay attention. In any case, the publication they've run for over a decade, Motley Idiot Inventory Advisor, has quadrupled the market.*

David and Tom simply revealed what they consider are the ten greatest shares for buyers to purchase proper now… and Planet Fitness wasn't one among them! That's proper — they assume these 10 shares are even higher buys.

The submit Planet Fitness Profits Surge on Strong Comps, Tax Reform appeared first on Well being Membership Information.

14
Like
Save

Comments

Write a comment

*

*