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Dec 31, 2023

Planet Fitness Q4 2023 Earnings Report

Planet Fitness reported a slight revenue increase and a significant rise in adjusted net income for Q4 2023.

Key Takeaways

Planet Fitness announced its Q4 and year-end 2023 results, highlighting a 1.4% increase in total revenue to $285.1 million for the quarter and a 7.7% increase in system-wide same store sales. The company's adjusted EBITDA increased by 7.8% to $114.3 million. They also provided guidance for 2024, projecting revenue growth and adjusted EBITDA increase.

Total revenue increased by 1.4% to $285.1 million.

System-wide same store sales increased by 7.7%.

Adjusted EBITDA increased by 7.8% to $114.3 million.

Opened 77 new Planet Fitness stores, bringing the total to 2,575.

Total Revenue
$285M
Previous year: $281M
+1.4%
EPS
$0.6
Previous year: $0.53
+13.2%
System-Wide Same Store Sales
7.7%
Previous year: 9%
-14.4%
New Clubs Opened
77
Previous year: 58
+32.8%
Adjusted EBITDA
$114M
Previous year: $106M
+7.7%
Gross Profit
$105M
Cash and Equivalents
$276M
Previous year: $410M
-32.7%
Free Cash Flow
$12M
Total Assets
$2.97B
Previous year: $2.85B
+4.0%

Planet Fitness

Planet Fitness

Planet Fitness Revenue by Segment

Forward Guidance

For the year ending December 31, 2024, the company expects new equipment placements of approximately 120 to 130 in franchisee-owned locations, system-wide same store sales in the high single-digit percentage range, revenue to increase in the 6% to 7% range and adjusted EBITDA to increase in the 10% to 11% range.

Positive Outlook

  • New equipment placements of approximately 120 to 130 in franchisee-owned locations
  • System-wide same store sales in the high single-digit percentage range.
  • Revenue to increase in the 6% to 7% range
  • Adjusted EBITDA to increase in the 10% to 11% range
  • Adjusted net income to increase in the 9% to 10% range

Challenges Ahead

  • Net interest expense to be approximately $70 million.
  • Capital expenditures to increase approximately 25%
  • Depreciation and amortization to increase in the 11% to 12% range.
  • Transition year as franchisees incorporate changes
  • Material impacts from COVID-19 or other public health emergencies, or any significant new supply chain disruptions

Revenue & Expenses

Visualization of income flow from segment revenue to net income