Planet Fitness Inc (PLNT) Reports 13.6% Increase in Total Revenue for Q3 2023
Planet Fitness Inc (NYSE:PLNT) reports a 13.6% increase in total revenue from the prior year, reaching $277.6 million.
System-wide same store sales increased by 8.4%, contributing to a total membership of over 18.5 million.
26 new Planet Fitness stores were opened during the period, bringing the total store count to 2,498.
Net income attributable to Planet Fitness, Inc. was $39.1 million, a significant increase from $26.9 million in the prior year period.
On November 7, 2023, Planet Fitness Inc (NYSE:PLNT) released its financial results for the third quarter ended September 30, 2023. The company reported a 13.6% increase in total revenue from the prior year period, reaching $277.6 million. This growth was driven by an 8.4% increase in system-wide same store sales and the opening of 26 new Planet Fitness stores, bringing the total store count to 2,498.
Financial Highlights
Net income attributable to Planet Fitness, Inc. was $39.1 million, or $0.46 per diluted share, compared to $26.9 million, or $0.32 per diluted share, in the prior year period. Adjusted net income increased $13.6 million to $51.8 million, or $0.59 per diluted share, compared to $38.2 million, or $0.42 per diluted share, in the prior year period.
Adjusted EBITDA increased $18.0 million to $111.9 million from $93.9 million in the prior year period. The company ended the quarter with cash, cash equivalents and marketable securities of $474.1 million.
Segment Performance
The franchise segment revenue increased $17.4 million or 21.6% to $98.2 million from $80.7 million in the prior year period. The corporate-owned stores segment revenue increased $11.9 million or 11.8% to $113.2 million from $101.3 million in the prior year period. The equipment segment revenue increased $3.8 million or 6.1% to $66.1 million from $62.3 million in the prior year period.
2023 Outlook
For the year ending December 31, 2023, the company expects revenue to increase approximately 14%, Adjusted EBITDA to increase approximately 18%, and Adjusted net income to increase approximately 33%. The company also expects Adjusted earnings per share to increase approximately 35%, based on Adjusted diluted shares outstanding of approximately 89 million.
Interim Chief Executive Officer, Governor Craig Benson, stated,
We ended the third quarter with more than 18.5 million members, drove 8.4 percent system-wide same store sales growth primarily from an increase in members, and grew our store count to nearly 2,500 locations globally. With our industry-leading results, were adjusting our store-level return model to further improve the attractiveness of opening and operating Planet Fitness stores in a new macro-environment."
Explore the complete 8-K earnings release (here) from Planet Fitness Inc for further details.
This article first appeared on GuruFocus.
