Planet Fitness, Newington, New Hampshire, reported first quarter 2017 revenue of $91.1 million, a 9.3 percent increase from the same period last year, according to financials released Tuesday. Same store sales grew 11.1 percent since the first of the year.
In a company release, CEO Chris Rondeau praised the expansion efforts of Planet Fitness franchisees. Fifty-four health clubs opened during the quarter, bringing Planet Fitness’ total to 1,367 clubs as of March 31. The recent addition of 1.2 million members also bumped the company’s overall member base beyond 10 million.
"Strong revenue and net income growth was fueled primarily by our high margin franchise segment and contributed significantly to the company's robust cash flow generation,” Rondeau said. “With approximately 1,000 new stores scheduled to open in the next five years, combined with our growing national and local advertising spend, we are confident that we'll continue to be successful in attracting more and more first time and casual gym users to Planet Fitness."
Planet Fitness’ franchise segment revenue grew to $36.8 million (33 percent), and its corporate revenue grew to $25.7 million (5.2 percent). The company’s equipment revenue decreased 9 percent to $27.3 million. Company officials attributed this drop to “fewer equipment placements in connection with new franchisee-owned store openings versus the prior year period.”
The quarter’s success has elevated the company’s 2017 outlook. Planet Fitness officials now expect between $405 million and $415 million in total revenue, with system-wide same store sales growth of at least 7 percent.
In March, the company reported $378.2 million in 2016 year-end revenue.
In other news, the company announced Dorvin Lively has been promoted from chief financial officer to president and chief financial officer of Planet Fitness Inc.
Planet Fitness ranked seventh on Club Industry's Top 100 Health Clubs of 2016, with a 2015 reported revenue of $330.5 million. This was an 18 percent uptick from 2014.