On August 6, 2024, Planet Fitness Inc (PLNT, Financial) released its 8-K filing for the second quarter ended June 30, 2024. Planet Fitness Inc is a franchisor and operator of fitness centers in the United States, with segments including Franchise, Corporate-owned stores, and Equipment. The company generates a majority of its revenue from the Corporate-owned stores segment.
Performance Overview
Planet Fitness Inc (PLNT, Financial) reported a total revenue increase of 5.1% year-over-year to $300.9 million, surpassing the analyst estimate of $288.23 million. The company also reported earnings per share (EPS) of $0.56, aligning with the analyst estimate of $0.56. Net income attributable to Planet Fitness Inc was $48.6 million, compared to $41.1 million in the prior year period.
Segment Analysis
The Franchise segment saw a revenue increase of 9.1% to $107.8 million, driven by higher royalty revenue and new store openings. The Corporate-owned stores segment revenue increased by 10.3% to $125.5 million, attributed to same store sales growth and new store openings. However, the Equipment segment experienced a decline of 8.4% to $67.7 million due to lower equipment sales to new and existing franchisee-owned stores.
Financial Achievements
Planet Fitness Inc (PLNT, Financial) achieved several financial milestones during the quarter:
- System-wide same store sales increased by 4.2%.
- System-wide sales rose to $1.2 billion from $1.1 billion in the prior year period.
- Adjusted net income increased by 7.8% to $62.2 million, or $0.71 per diluted share.
- Adjusted EBITDA increased by 7.2% to $127.5 million.
- 18 new Planet Fitness stores were opened, bringing the total to 2,617 stores.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $300.9 million | $286.5 million |
| Net Income | $48.6 million | $41.1 million |
| Adjusted EBITDA | $127.5 million | $118.9 million |
Balance Sheet and Cash Flow
As of June 30, 2024, Planet Fitness Inc (PLNT, Financial) reported cash and marketable securities of $447.7 million, including cash and cash equivalents of $247.0 million. The company also executed a $280 million accelerated share repurchase program during the quarter.
Challenges and Outlook
Despite the positive performance, the Equipment segment's decline poses a challenge. The company reiterated its 2024 outlook, expecting system-wide same store sales growth of 3% to 5%, revenue increase of 4% to 6%, and adjusted EBITDA growth of 7% to 9%.
"As we enter our next chapter, we are committed to further defining our growth ambition and capitalizing on the meaningful opportunities across the industry both in the U.S. and internationally," said Colleen Keating, Chief Executive Officer.
For more detailed financial information, please refer to the 8-K filing.
Explore the complete 8-K earnings release (here) from Planet Fitness Inc for further details.
