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Jun 30, 2022

Planet Fitness Q2 2022 Earnings Report

Planet Fitness reported strong Q2 2022 results driven by membership growth and increased revenue across all segments.

Key Takeaways

Planet Fitness, Inc. announced its second quarter 2022 financial results, highlighted by a 63.5% increase in total revenue to $224.4 million compared to the prior year period. System-wide same store sales increased by 13.6%, and the company ended the quarter with over 16.5 million members. Net income attributable to Planet Fitness, Inc. was $22.3 million, or $0.26 per diluted share.

Total revenue increased by 63.5% to $224.4 million.

System-wide same store sales increased by 13.6%.

Net income attributable to Planet Fitness, Inc. was $22.3 million, or $0.26 per diluted share.

The company ended the quarter with more than 16.5 million members.

Total Revenue
$224M
Previous year: $137M
+63.5%
EPS
$0.38
Previous year: $0.21
+81.0%
System-Wide Same Store Sales
13.6%
New Clubs Opened
34
Previous year: 24
+41.7%
Total Membership
16.5M
Previous year: 14.8M
+11.5%
Cash and Equivalents
$384M
Previous year: $469M
-18.3%

Planet Fitness

Planet Fitness

Planet Fitness Revenue by Segment

Forward Guidance

For the year ending December 31, 2022, the Company is reiterating the following expectations as compared to the Company’s 2021 results, which includes the impact from the Sunshine Acquisition and assumes there is no significant worsening of the COVID-19 pandemic that seriously impacts performance, including prolonged store closures or other mandated operational restrictions

Positive Outlook

  • New equipment placements of approximately 170 in franchisee-owned locations
  • System-wide same store sales in the low double-digit percentage range
  • Revenue to increase in the mid-50 percent range
  • Adjusted EBITDA to increase in the high-50 percent range
  • Adjusted Net Income to increase in the low-90 percent range

Challenges Ahead

  • Assumes there is no significant worsening of the COVID-19 pandemic that seriously impacts performance, including prolonged store closures or other mandated operational restrictions
  • 2022 net interest expense to be approximately $86 million as a result of its recent debt refinancing and upsizing.
  • Adjusted earnings per share to increase in the mid-80 percent range, based on Adjusted diluted shares outstanding of approximately 90.7 million, inclusive of the issuance of equity as part of the Sunshine Acquisition and the second quarter share repurchase
  • Company reiterating the following expectations as compared to the Company’s 2021 results, which includes the impact from the Sunshine Acquisition
  • The Company does not provide guidance for net income or net income per share, diluted, determined in accordance with GAAP or a reconciliation of guidance for Adjusted EBITDA and Adjusted net income per share, diluted, to the most directly comparable GAAP measure because we are not able to predict with reasonable certainty the amount or nature of all items that will be included in our net income and net income per share, diluted, for the year ending December 31, 2022.