F45 Training, Austin, Texas, reported fourth quarter 2021 revenue increased 242 percent to $61.8 million and full-year 2021 revenue increased 63 percent to $134 million compared to $82.3 million in 2020.
The company, which went public in 2021, sold 1,057 franchises and opened 312 studios globally during 2021 with 290 of those franchises sold and 131 of those studios opened globally in the fourth quarter. The openings bring F45 Training’s total studio count to 3,301 franchises sold and 1,749 studios opened.
“I am delighted with our terrific fourth quarter and full-year results,” F45 Training President, CEO, and Chairman Adam Gilchrist said in the announcement of the results.
The company completed the year with record revenues and adjusted EBITDA, he said. It also set a record sales pace of more than 1,000 franchise sales for the full year.
“We demonstrated our ability to execute on our growth strategies and have shown that both we and our franchisees can achieve great successes despite lingering impacts of the COVID-19 pandemic,” he said.
For 2022, the company anticipates revenue between $255 million and $275 million with adjusted EBITDA between $90 million and $100 million.
Full-year net new franchises sold are estimated to be approximately 1,000 with 2022 net Initial studio openings of approximately 1,000, which is expected to be weighted toward the back half of 2022.
“Looking towards the remainder of 2022, I am confident that we have the right strategies in place to continue to drive our success,” Gilchrist said. “We continue to invest in and develop our new health and wellness concepts around the world, we have developed an incredible relationship with real estate partners that will optimize our real estate strategy to drive new studio openings and reduce the time from sale to opening, we are working on innovative franchisee financing solutions to help drive our sales pace and accelerate our new studio openings, and we have ordered approximately 1,200 equipment world packs to ensure we can meet our targets in 2022. As I have said before, our goal is to be the world’s fastest growing franchisor, and I believe our ability to achieve this goal has never been stronger.”
Fourth Quarter 2021 Results
In addition to the 242 percent increase in revenue for the quarter compared to fourth quarter 2020, F45 Training reported net income of $14.8 million and adjusted EBITDA of $25.9 million, a 376 percent increase from the prior year period.
Gross profit increased $35.4 million, or 376 percent, to $44.8 million from $9.4 million as compared to the prior year period. Gross profit margin of 72 percent compared to 52 percent in the same period last year. The increase was primarily due to a higher mix of franchise revenue as well as higher equipment margins, according to F45 Training.
Franchise revenue increased $8.7 million, or 68 percent, to $21.5 million from $12.8 million in the prior year period. The increase in franchise revenue was driven by the increase in establishment, monthly franchise fees and other franchise-related fees, according to the company.
Equipment and merchandise revenue increased $35.1 million, or 667 percent, to $40.4 million from $5.3 million in the prior year period. The increase in equipment and merchandise revenue was driven by the delivery of approximately 300 World Packs during the quarter.
Same store sales increased 6 percent globally and 53 percent in the United States.
System-wide sales increased 27 percent globally to $113.9 million and 95 percent in the United States to $49.9 million.
System-wide visits increased 7 percent globally to 6.7 million and 50 percent in the United States to 2.6 million.
Net franchises sold totaled 290 compared to 30 in the prior year period.
Full-Year 2021 Results
The full-year 2021 revenue of $134 million compared to full-year 2020 revenue of $82.3 million. Adjusted EBITDA increased from the prior year period by 104 percent to $52 million while the company reported a net loss of $182.7 million for 2021.
Franchise revenue increased $21.2 million, or 40 percent, to $73.7 million from $52.6 million in the prior year period. The increase in franchise revenue was driven by the increase in establishment, monthly franchise fees and other franchise-related fees partially offset by COVID-related concessions.
Equipment and merchandise revenue increased $30.6 million, or 103 percent, to $60.3 million from $29.8 million in 2020. The increase in equipment and merchandise revenue was driven by the increase in equipment and merchandise deliveries, the company shared.
Gross profit increased $47.5 million, or 90 percent, to $100.1 million from $52.7 million in 2020. Gross profit margin of 75 percent compared to 64 percent in the same period last year. The increase was primarily due to higher equipment margins and increased franchise margins due to lower contribution of marketing membership expenses because of the COVID-19 pandemic, the company said.
Same store sales increased 12 percent globally and 42 percent in the United States.
System-wide sales increased 36 percent globally to $410.3 million and 96 percent in the United States to $167 million.
System-wide visits increased 31 percent globally to 26.8 million and 103 percent in the United States to 10.8 million.
As of Dec. 31, 2021, F45 Training had approximately $42 million of cash and cash equivalents, and no debt outstanding. This compares to $29 million of cash and equivalents and $242 million of total debt outstanding in 2020.
As of Dec. 31, 2021, the company had approximately $89 million of capacity under its revolving credit facility.