Planet Fitness, Newington, New Hampshire, reported first quarter 2018 revenue of $121.3 million, a 33.2 percent increase from the same period last year, according to financials released May 8. This was driven by the opening of 47 new franchise clubs during the quarter, as well as system-wide same store sales growing 11.1 percent.
"We delivered another strong financial performance as first quarter system-wide same store sales increased 11 percent for the second consecutive year and all three operating segments posted double-digit revenue gains on a percentage basis," CEO Chris Rondeau said in the earnings report. "Our success is being fueled by the expansion of our high-value, low-cost non-intimidating fitness concept in existing and new markets combined with growing brand awareness from increased investments in national and local advertising."
The company's franchise segment revenue jumped to $17.8 million, corporate-owned stores segment revenue grew to $5.7 million and equipment segment revenue improved to $6.7 million, representing increases of 48.4 percent, 21 percent and 24.8 percent, respectively.
Planet Fitness' adjusted EBITDA increased 15.4 percent to $48.8 million, and net income grew 23.8 percent to $23.5 million.
The 47 new club openings bring Planet Fitness' total facility count to 1,565 as of March 31, 2018.
By the end of 2018, Rondeau said he expects a 20 percent revenue increase over 2017, fueled by same store sales growth in the high single digit range.
In February, Planet Fitness reported $429.9 million in 2017 year-end revenue, in addition to a record-number 210 club openings.
"[W]e continue to explore ways to strengthen our offering, including utilizing technology to provide more immersive workout experiences and personalized workout recommendations," Rondeau said in the media release. "By targeting casual and first-time gym users, we believe Planet Fitness has a long runway for growth based on the fact that the vast majority of the U.S. population does not own a gym membership."
Planet Fitness ranked seventh on Club Industry's Top 100 Health Clubs of 2017, with a 2016 reported revenue of $378.2 million. The company is the highest-ranking franchisor on the list.