NYSE$PLNT

Planet Fitness Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Planet Fitness reported mixed Q1 2024 results, with revenue growth offset by lowered full-year outlook due to several headwinds.

Planet Fitness announced its Q1 2024 results, revealing a revenue increase of 11.6% to $248.0 million. System-wide same store sales grew by 6.2%. The company is lowering its outlook for the full year due to headwinds including a shift in consumer focus to savings, concerns over increased COVID infections, and a national advertising campaign that did not resonate as anticipated.

  • Total revenue increased by 11.6% year-over-year to $248.0 million.
  • System-wide same store sales increased by 6.2%.
  • Net income attributable to Planet Fitness, Inc. was $34.3 million, or $0.39 per diluted share.
  • The company opened 25 new Planet Fitness stores system-wide, including 23 franchisee-owned and 2 corporate-owned stores.

Headline financials

Total Revenue

$248M

Previous: $222M+11.6%
EPS (adj)

$0.53

Previous: $0.41+29.3%
Capital Expenditures

-$26.3M

Previous: -$23M-14.4%
Free Cash Flow

$8M

Previous: -$292K+2839.0%
Net Income

$34.3M

Previous: $22.7M+51.1%
Operating Income

$65.8M

Previous: $52.2M+26.2%
Gross Profit

$229M

Previous: $203M+12.9%
Cash & Equivalents

$302M

Previous: $460M-34.5%
Total Assets

$2.99B

Previous: $2.91B+3.0%

Revenue & EPS history

Planet Fitness · Revenue · Quarterly

$248M

Q1 2024+11.6%vs Q1 2023
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Planet Fitness · $278M total across 3 segments · Q3 2023

  • Corporate-Owned Clubs
    $113M+11.7%
  • Franchise Segment
    $98.2M+21.7%
  • Equipment Segment
    $66.1M+6.1%

Forward guidance

For the year ending December 31, 2024, the Company is updating or reiterating the following expectations: •It continues to expect new equipment placements of approximately 120 to 130 in franchisee-owned locations •It continues to expect system-wide new store openings of approximately 140 to 150 locations •It now expects system-wide same store sales in the 3% to 5% percentage range (previously it expected 5% to 6%) The following are 2024 growth expectations over the Company’s 2023 results: •It now expects revenue to increase in the 4% to 6% range (previously it expected 6% to 7%) •It now expects adjusted EBITDA to increase in the 7% to 9% range (previously it expected 10% to 11%) •It now expects adjusted net income to increase in the 6% to 8% range (previously it expected 9% to 10%) •It now expects adjusted net income per share, diluted to increase in the 7% to 9% range (previously it expected 10% to 11%), based on adjusted diluted weighted-average shares outstanding of approximately 88.0 million, inclusive of one million shares repurchased in 2024. The Company continues to expect 2024 net interest expense to be approximately $70.0 million. It also expects capital expenditures to increase approximately 25% driven by additional stores in our corporate-owned portfolio and depreciation and amortization to increase in the 11% to 12% range.

Tailwinds

  • Expects new equipment placements of approximately 120 to 130 in franchisee-owned locations.
  • Expects system-wide new store openings of approximately 140 to 150 locations.
  • Revenue to increase in the 4% to 6% range.
  • Adjusted EBITDA to increase in the 7% to 9% range.
  • Adjusted net income per share, diluted to increase in the 7% to 9% range.

Headwinds

  • Expects system-wide same store sales in the 3% to 5% percentage range (previously it expected 5% to 6%).
  • Revenue to increase in the 4% to 6% range (previously it expected 6% to 7%).
  • Adjusted EBITDA to increase in the 7% to 9% range (previously it expected 10% to 11%).
  • Adjusted net income to increase in the 6% to 8% range (previously it expected 9% to 10%).
  • Capital expenditures to increase approximately 25% driven by additional stores in our corporate-owned portfolio and depreciation and amortization to increase in the 11% to 12% range.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2024

Historical avgQ1 2024

+1.6%

Avg return

Earnings day

+2.5%

Avg return

5 days after

+3.4%

Avg return

30 days after

56%

24 / 43 earnings

Positive

+18.0%

Q3 2018

Best reaction

-32.5%

Q1 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-32.5%-22.7%-20.8%
Q4 2025-7.6%-9.5%-16.9%
Q3 2025+12.6%+15.4%+21.1%
Q1 2025-4.7%-7.8%+3.8%
Q4 2024-9.2%-6.7%-0.1%
Q3 2024+12.6%+11.9%+18.0%
Q2 2024+5.2%+9.8%+13.5%
Q1 2024+5.0%+6.4%+10.1%
Q4 2023-3.3%-3.6%-9.0%
Q3 2023+11.6%+16.3%+23.3%
Q2 2023-7.2%-7.2%-6.9%
Q1 2023-14.7%-13.8%-21.9%
Q4 2022+1.9%+2.5%-5.9%
Q3 2022+11.3%+15.5%+24.4%
Q2 2022-4.9%-5.4%-13.9%
Q1 2022+1.5%+5.2%+2.1%
Q4 2021-4.0%-4.8%-4.6%
Q3 2021+15.9%+14.4%-2.4%
Q2 2021-0.7%-0.7%+1.9%
Q1 2021-5.2%-5.2%-7.4%
Q4 2020-0.3%+6.7%-0.5%
Q3 2020+1.1%+9.9%+13.0%
Q2 2020-1.5%+0.4%+20.7%
Q1 2020+5.2%+4.8%+28.0%
Q4 2019-10.1%-19.9%-37.8%
Q3 2019+11.2%+13.8%+21.0%
Q2 2019-3.3%-1.3%-12.8%
Q1 2019-3.6%-1.6%+1.4%
Q4 2018+3.1%+7.8%+19.9%
Q3 2018+18.0%+16.8%+19.4%
Q2 2018+7.6%+9.1%+4.3%
Q1 2018-6.7%-2.3%+3.3%
Q4 2017+9.2%+9.7%+12.0%
Q3 2017+12.1%+12.4%+20.5%
Q2 2017+8.3%+4.6%+7.3%
Q1 2017-1.3%+0.6%+6.1%
Q4 2016-1.6%-1.6%-10.4%
Q3 2016+9.6%+8.3%+10.4%
Q2 2016+10.9%+9.7%-0.3%
Q1 2016+3.6%
Q4 2015+6.1%
Q3 2015+6.2%
Q2 2015+2.0%
Q4 2014
Q3 2014
Q2 2014
Q1 2014

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