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Planet Fitness Posts Mixed Q1 Earnings

  • Planet Fitness Inc (NYSE:PLNT) reported first-quarter FY22 sales growth of 66.9% year-on-year to $186.68 million, missing the consensus of $189.96 million.
  • Revenue from the Franchise segment rose 25.7% Y/Y to $65.6 million, the Corporate-owned stores climbed 101.1% to $76.2 million, and Equipment gained 206.2% Y/Y to $30.4 million.
  • Total operating costs and expenses rose 67.4% Y/Y to $138.01 million. The operating margin was 26.1%, and operating income for the quarter rose 65.5% to $48.6 million.
  • Adjusted EBITDA increased 76.9% Y/Y to $77.3 million. Adjusted EPS of $0.32 beat the consensus of $0.27.
  • The company held $536.7 million in cash and equivalents as of March 31, 2022.
  • Outlook: Planet Fitness sees FY22 sales growth in the mid-50% range. The company expects FY22 adjusted EBITDA to up in high-50% and adjusted EPS to increase in the mid-80% range.
  • Price Action: PLNT shares closed lower by 7.85% at $69.00 on Monday.