F45 Training, Austin, Texas, pulled in $27.2 million in third quarter 2021 revenue, an increase of 24 percent from the prior year period, the company announced on Nov. 12. System-wide sales increased 33 percent to $99.4 million.
F45 also is purchasing Vive Active, an Australian fitness company that offers reformer and mat Pilates workouts through in-studio, at-home streaming and on-demand classes. The acquisition price was not disclosed, but the purchase is expected to be completed in the fourth quarter. After the acquisition, F45 intends to scale Vive Active by selectively adding new company-owned studios in key markets, as well as franchised locations in the United States and internationally. F45 has already received a multi-unit commitment from an existing franchise development group to expand the business in the United States.
2021 Full-Year Outlook
The company still anticipates its full-year revenue at between $132 million and $137 million despite upping its expected full-year new net franchises sold to between 830 and 850, compared to its prior range of 800 to 850, and upping its full-year net studio openings of between 240 and 260, compared to prior range of 220 to 260.
It also anticipates full-year adjusted EBITDA between $50 million and $52 million.
“We are very pleased with the pace and visibility of our franchisee pipeline, with over 3,000 franchises sold to-date, approximately half of which are open studios,” F45 Training CEO Adam Gilchrist said in a call with analysts. “The other half represents more than 1,400 sold, but not yet opened studios, a significant portion of which are part of multi-unit deals with well-capitalized franchisee groups. These studios are contractually obligated to open, and we continue to have high confidence in our partner’s ability to do so in a timely manner.”
More Third Quarter Numbers
In the third quarter, F45 reported loss from operations of $90.6 million while adjusted EBITDA increased 37 percent to $10.1 million.
Same store sales increased 67 percent in the United States, but because 60 percent of the brand’s Australian network was closed for the quarter, its global same-store sales increased just 6 percent.
System-wide visits increased 17 percent to 6.4 million.
In the third quarter, F45 sold 210 franchises and opened 63 studios (compared to 101 in the prior year period), bringing its total count to 3,011 franchises sold and 1,618 total studios. Net franchises sold totaled 210 compared to 155 in the prior year period.
During the third quarter, F45 Training had 3 million visits to its F45 studios in the United States. Visitation now is over 2.7 times per week on average, which is better than pre-pandemic, Gilchrist said.
One other development in the quarter involved F45 Training collaborating with OneSpaWorld to offer F45 Training’s 45-minute functional training fitness classes on its Celebrity Cruise ships.