Planet Fitness Opens 41 New Clubs, Reports 40 Percent Growth in 2018 Q3 Revenue

Planet Fitness opened 41 new clubs.
(Photo courtesy Planet Fitness.) Planet Fitness' franchise segment revenue grew to $54.8 million, corporate-owned stores segment revenue jumped to $35.4 million and equipment segment revenue improved to $46.4 million. All represent double-digit increases from last year.

Planet Fitness, Hampton, New Hampshire, reported third quarter 2018 revenue of $136.7 million, a year-over-year increase of 40.2 percent, according to financials released Nov. 6.

The company opened 41 new franchise clubs during the quarter and saw system-wide same-store sales increase by 9.7 percent.

"I am very pleased with our third quarter performance as revenue in each of our three operating segments once again increased double-digits year-over-year," Planet Fitness CEO Chris Rondeau said in a media release. "The combination of our high value, low cost, non-intimidating fitness concept and differentiated business model continues to drive solid top and bottom line improvement."

The company's franchise segment revenue grew to $54.8 million, corporate-owned stores segment revenue jumped to $35.4 million and equipment segment revenue improved to $46.4 million, representing increases of 54.2 percent, 24 percent and 39.1 percent, respectively.

Planet Fitness' adjusted EBITDA increased 24 percent to $53.8 million.

The 41 new club openings bring Planet Fitness' total facility count to 1,646 as of Sept. 30, 2018.

"Our group of experienced franchisees are investing in expanding their footprints and each new member join is fueling an increase in our local and national advertising funds," Rondeau said in the release. "With the potential to increase our U.S. presence to approximately 4,000 stores while at the same time enhancing the member experience through in-store initiatives and brand partnerships, we believe the company is well positioned to deliver continued long-term profitable growth and return greater value to shareholders in the years to come."

In September, United PF Partners, the largest Planet Fitness franchisee, acquired a 19-club Planet Fitness franchisee in the Phoenix market, bringing its total club count to 108.

Planet Fitness ranked sixth on Club Industry's Top 100 Health Clubs of 2018, with reported revenue of $429.90 million for 2017. The company is the highest-ranking franchisor on the list.

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