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Planet Fitness club exterior Photo courtesy Planet Fitness.
Planet Fitness recently announced its intentions to refinance $707 million in existing senior secured credit facilities with a new securitized financing facility of $1.225 billion.

Planet Fitness Opens 44 New Clubs, Reports 31 Percent Increase in Q2 2018 Revenue

Planet Fitness opened 44 new franchise clubs during the quarter, bringing its total global facility count to 1,608.

Planet Fitness, Hampton, New Hampshire, reported second quarter 2018 revenue of $140.6 million, a year-over-year increase of 31 percent, according to financials released August 9.

The company opened 44 new franchise clubs during the quarter and saw system-wide same-store sales increase by 10.2 percent.

"Our second quarter results reaffirm that Planet Fitness is a high-growth company," Planet Fitness CEO Chris Rondeau said in a media release. "[O]ur unique business model and recent tax reform allowed us to translate our exceptional top-line performance into an even stronger improvement in profitability."

The company's franchise segment revenue grew to $58.4 million, corporate-owned stores segment revenue jumped to $34.3 million and equipment segment revenue improved to $48.1 million, representing increases of 53.9 percent, 21.1 percent and 16.8 percent, respectively.

Planet Fitness' adjusted EBITDA increased 21.8 percent to $58.4 million, and net income improved by 40.8 percent to $30.4 million.

The 44 new club openings bring Planet Fitness' total facility count to 1,608 as of June 30, 2018.

"While we are very pleased with our many recent accomplishments, we believe the future is even brighter for our company," Rondeau said in the release. "There are numerous expansion opportunities for our high-value, low-cost non-intimidating fitness concept in the U.S. and internationally. We are pursuing exciting ways to enhance the member experience, and our strong cash generation and recent debt refinancing provide us with a high level of flexibility to return capital to shareholders. I am excited about our prospects for continued growth as I look ahead to the second half of 2018 and longer-term."

In July, Planet Fitness announced its intentions to refinance $707 million in existing senior secured credit facilities with a new securitized financing facility of $1.225 billion.

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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