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%|
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.
“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.
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.”
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