Planet Fitness Opens 53 New Clubs, Reports More Double-Digit Growth in Q2

Planet Fitness Q2 financials
(Photo courtesy Planet Fitness.) Planet Fitness' 53 new club openings bring the company's total facility count to 1,859 as of June 30, 2019.

The opening of 53 new health clubs helped spur a second quarter 2019 revenue increase of 29.3 percent for Planet Fitness, Hampton, New Hampshire, according to financials released Aug. 8.

The company reported $181.7 million in total revenue, with $76.5 million in adjusted EBITDA and $42 million in net income—year-over-year increases of 31.1 percent and 26.6 percent, respectively.

System-wide same-store sales increased by 8.8 percent during the quarter.

CEO Chris Rondeau attributed the company's increases to well-capitalized franchisees and favorable real estate trends. He also said the company is on track to open at least 250 new locations during 2019. (This figure had been previously estimated at 225 clubs.)

"With the strong returns generated by our welcoming, non-intimidating fitness concept, franchisees are increasingly eager to reinvest in both expanding their geographic footprint and broadening awareness of the Planet Fitness brand among casual and first time gym users, as well as re-investing in their existing store fleet by re-equipping their clubs with new equipment," Rondeau said in a media release. "I am very proud of all our recent accomplishments, and I am confident that the work being done across our system by our franchisees, corporate staff and team members in our stores is setting the company up for continued success."

The company's franchise segment revenue grew to $71.8 million, corporate-owned stores segment revenue jumped to $39.7 million and equipment segment revenue improved to $70.2 million, representing increases of 23.5 percent, 15.9 percent and 45.7 percent, respectively.

The 53 new club openings bring Planet Fitness' total facility count to 1,859 as of June 30, 2019.

There was no mention in the company’s Aug. 6 shareholder call of the pending discrimination lawsuit against Planet Fitness and several of its executives, including Rondeau. Plaintiff Casey Willard, a former manager at Planet Fitness' corporate headquarters, has claimed that top executives fostered a hostile and discriminatory environment that forced her to quit her job in 2018. A trial is slated for March 2020.

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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