HAMPTON, N.H., Feb. 25,
2020 /PRNewswire/ -- Today, Planet Fitness, Inc. (NYSE:PLNT)
reported financial results for its fourth quarter ended
December 31, 2019 and announced its full year 2020
outlook.
Fourth Quarter Fiscal 2019 Highlights
- Total revenue increased from the prior year period by 9.8% to
$191.5 million.
- System-wide same store sales increased 8.6%.
- Net income attributable to Planet Fitness, Inc. was
$29.7 million, or $0.36 per diluted share, compared to net income
attributable to Planet Fitness, Inc. of $24.8 million, or $0.29 per diluted share, in the prior year
period.
- Net income was $34.3 million,
compared to net income of $28.8
million in the prior year period.
- Adjusted net income(1) increased 20.6% to
$39.2 million, or $0.44 per diluted share, compared to $32.5 million, or $0.34 per diluted share, in the prior year
period.
- Adjusted EBITDA(1) increased 23.0% to $76.6 million from $62.3
million in the prior year period.
- 102 new Planet Fitness stores were opened system-wide during
the period, bringing system-wide total stores to 2,001 as of
December 31, 2019.
Fiscal Year 2019 Highlights
- Total revenue increased from the prior year by 20.2% to
$688.8 million.
- System-wide same store sales increased 8.8%.
- Net income attributable to Planet Fitness, Inc. was
$117.7 million, or $1.41 per diluted share, compared to $88.0 million, or $1.00 per diluted share, in the prior year.
- Net income was $135.4 million,
compared to $103.2 million in the
prior year.
- Adjusted net income(1) increased 22.7% to
$146.7 million, or $1.59 per diluted share, compared to $119.5 million, or $1.22 per diluted share, in the prior year.
- Adjusted EBITDA(1) increased 26.4% to $282.2 million from $223.2
million in the prior year.
- 261 new Planet Fitness stores were opened system-wide during
the year, bringing system-wide total stores to 2,001 as of
December 31, 2019.
"2019 was filled with many important milestones and financial
achievements," said Chris Rondeau,
Chief Executive Officer. "We opened a company record 261 new stores
system-wide and ended the year with 2,001 Planet Fitness locations
and approximately 14.4 million members. Our ability to attract
casual, first time gym users to our welcoming, non-intimidating
fitness concept, combined with higher black card pricing, fueled an
8.8% improvement in system-wide same store sales on top of a 10.2%
increase in 2018. Revenue in all three of our operating segments -
Franchise, Corporate-Owned Stores and Equipment - grew
double-digits in 2019, with Franchise, our highest margin segment,
growing the fastest, which along with the repurchase of 6.1 million
shares, helped drive a 30% increase in Adjusted net income per
share, diluted(1) year-over-year. We begin 2020
with great momentum in our business, a long runway for growth, and
an experienced group of franchisees eager to capitalize on the many
opportunities that still lie ahead."
(1) Adjusted net income, Adjusted EBITDA and Adjusted
net income per share, diluted are non-GAAP measures. For
reconciliations of Adjusted EBITDA and Adjusted net income to U.S.
GAAP ("GAAP") net income and a computation of Adjusted net income
per share, diluted, see "Non-GAAP Financial Measures" accompanying
this press release.
Operating Results for the Fourth Quarter Ended
December 31, 2019
For the fourth quarter of 2019, total revenue increased
$17.2 million or 9.8% to $191.5 million from $174.4
million in the prior year period. By segment:
- Franchise segment revenue increased $16.7 million or 29.6% to $73.3 million from $56.6
million in the prior year period;
- Corporate-owned stores segment revenue increased $5.0 million or 13.7% to $41.2 million from $36.2
million in the prior year period, $3.1 million of which is from new corporate-owned
stores opened or acquired since September
30, 2018; and
- Equipment segment revenue decreased $4.6
million or 5.6% to $77.0
million from $81.6 million in
the prior year period, driven by a decrease in replacement
equipment sales to existing franchisee-owned stores, partially
offset by higher equipment sales to new franchisee-owned
stores.
System-wide same store sales increased 8.6%. By segment,
franchisee-owned same store sales increased 8.8% and
corporate-owned same store sales increased 5.8%.
For the fourth quarter of 2019, net income attributable to
Planet Fitness, Inc. was $29.7
million, or $0.36 per diluted
share, compared to net income attributable to Planet Fitness, Inc.
of $24.8 million, or $0.29 per diluted share, in the prior year
period. Net income was $34.3 million
in the fourth quarter of 2019 compared to $28.8 million in the prior year period. Adjusted
net income increased 20.6% to $39.2
million, or $0.44 per diluted
share, from $32.5 million, or
$0.34 per diluted share, in the prior
year period. Adjusted net income has been adjusted to reflect a
normalized federal income tax rate of 26.8% for the fourth quarter
of 2019 and 26.3% for the prior year period and excludes certain
non-cash and other items that we do not consider in the evaluation
of ongoing operational performance (see "Non-GAAP Financial
Measures").
Adjusted EBITDA, which is defined as net income before interest,
taxes, depreciation and amortization, adjusted for the impact of
certain non-cash and other items that we do not consider in the
evaluation of ongoing operational performance (see "Non-GAAP
Financial Measures"), increased 23.0% to $76.6 million from $62.3
million in the prior year period.
Segment EBITDA represents our Total Segment EBITDA broken down
by the Company's reportable segments. Total Segment EBITDA is equal
to EBITDA, which is defined as net income before interest, taxes,
depreciation and amortization (see "Non-GAAP Financial
Measures").
- Franchise segment EBITDA increased $12.0
million or 30.8% to $50.7
million, driven by royalties from new franchisee-owned
stores opened since September 30,
2018, a higher average royalty rate by 46 basis points and
higher same store sales of 8.8%;
- Corporate-owned stores segment EBITDA increased $0.5 million or 3.6% to $15.1 million; and
- Equipment segment EBITDA decreased by $0.3 million or 1.7% to $18.7 million.
Operating Results for the Fiscal Year Ended December 31,
2019
For the fiscal year ended December 31, 2019, total revenue
increased $115.9 million or 20.2% to
$688.8 million from $572.9 million in the prior year. By segment:
- Franchise segment revenue increased $53.4 million or 23.8% to $277.6 million from $224.1
million in the prior year;
- Corporate-owned stores segment revenue increased $21.1 million or 15.2% to $159.7 million from $138.6
million in the prior year, $10.7
million of which is from new corporate-owned stores opened
or acquired since January 1, 2018;
and
- Equipment segment revenue increased $41.4 million or 19.7% to $251.5 million from $210.2
million in the prior year, driven by an increase in
equipment sales to new stores and an increase in replacement
equipment sales to existing franchisee-owned stores.
System-wide same store sales increased 8.8%. By segment,
franchisee-owned same store sales increased 9.0% and
corporate-owned same store sales increased 6.1%.
For the year ended December 31, 2019, net income
attributable to Planet Fitness, Inc. was $117.7 million, or $1.41 per diluted share, compared to net income
attributable to Planet Fitness, Inc. of $88.0 million, or $1.00 per diluted share, in the prior year. Net
income was $135.4 million in 2019
compared to $103.2 million in the
prior year. Adjusted net income increased 22.7% to $146.7 million, or $1.59 per diluted share, from $119.5 million, or $1.22 per diluted share, in the prior year
period. Adjusted net income has been adjusted to reflect a
normalized federal income tax rate of 26.8% for the year ended
December 31, 2019 and 26.3% for the
prior year period and excludes certain non-cash and other items
that we do not consider in the evaluation of ongoing operational
performance (see "Non-GAAP Financial Measures").
Adjusted EBITDA, which is defined as net income before interest,
taxes, depreciation and amortization, adjusted for the impact of
certain non-cash and other items that we do not consider in the
evaluation of ongoing operational performance (see "Non-GAAP
Financial Measures"), increased 26.4% to $282.2 million from $223.2
million in the prior year period.
Segment EBITDA represents our Total Segment EBITDA broken down
by the Company's reportable segments. Total Segment EBITDA is equal
to EBITDA, which is defined as net income before interest, taxes,
depreciation and amortization (see "Non-GAAP Financial
Measures").
- Franchise segment EBITDA increased $39.7
million or 26.0% to $192.3
million driven by royalties from new franchisee-owned stores
opened since January 1, 2018, a
higher average royalty rate and higher same store sales of
9.0%;
- Corporate-owned stores segment EBITDA increased $8.9 million or 15.7% to $65.6 million, driven primarily by additional
stores opened and acquired since January 1,
2018, an increase in same store sales of 6.1% and higher
annual fees; and
- Equipment segment EBITDA increased by $12.0 million or 25.2% to $59.6 million driven by an increase in equipment
sales to new stores and an increase in replacement equipment sales
to existing franchisee-owned stores.
Share Repurchase Program
On December 4, 2019, we entered
into a $300 million accelerated share
repurchase agreement (the "2019 ASR Agreement") with JPMorgan Chase
Bank, N.A. ("JPMC"). We acquired shares under the 2019 ASR
Agreement as part of our 2019 $500
million share repurchase authorization (the "2019 Share
Repurchase Authorization"). On December 5,
2019, we paid JPMC $300
million in cash and received approximately 3.3 million
shares of our Class A common stock. At final settlement, JPMC may
be required to deliver additional shares to us, or, under certain
circumstances, we may be required to deliver shares of our Class A
common stock or may elect to make a cash payment to JPMC, based
generally on the average of the daily volume-weighted average
prices of our Class A common stock during the term of the 2019 ASR
Agreement. The 2019 ASR Agreement contains provisions customary for
agreements of this type, including provisions for adjustments to
the transaction terms, the circumstances generally under which the
2019 ASR Agreement may be accelerated, extended or terminated early
by JPMC and various acknowledgments, representations and warranties
made by the parties to one another. Final settlement of the 2019
ASR Agreement is expected to be completed during the second quarter
of 2020, although the settlement may be accelerated at JPMC's
option. Following this accelerated share repurchase there will is
approximately $200 million remaining
on the 2019 Share Repurchase Authorization.
2020 Outlook
For the year ending December 31,
2020, the Company expects:
- Total revenue increase of approximately 12% as compared to the
year ended December 31, 2019;
- System-wide same store sales of approximately 8%;
- Adjusted net income to increase approximately 10% as compared
to the year ended December 31, 2019;
and
- Adjusted net income per diluted share to increase approximately
16% as compared to the year ended December
31, 2019.
Presentation of Financial Measures
Planet Fitness, Inc. (the "Company") was formed in March 2015 for the purpose of facilitating the
initial public offering (the "IPO") and related recapitalization
transactions that occurred in August
2015, and in order to carry on the business of Pla-Fit
Holdings, LLC ("Pla-Fit Holdings") and its subsidiaries. As the
sole managing member of Pla-Fit Holdings, the Company operates and
controls all of the business and affairs of Pla-Fit Holdings, and
through Pla-Fit Holdings, conducts its business. As a result, the
Company consolidates Pla-Fit Holdings' financial results and
reports a non-controlling interest related to the portion of
Pla-Fit Holdings not owned by the Company.
The financial information presented in this press release
includes non-GAAP financial measures such as EBITDA, Segment
EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted net
income per share, diluted, to provide measures that we believe are
useful to investors in evaluating the Company's performance. These
non-GAAP financial measures are supplemental measures of the
Company's performance that are neither required by, nor presented
in accordance with GAAP. These financial measures should not be
considered in isolation or as substitutes for GAAP financial
measures such as net income or any other performance measures
derived in accordance with GAAP. In addition, in the future, the
Company may incur expenses or charges such as those added back to
calculate Adjusted EBITDA, Adjusted net income and Adjusted net
income per share, diluted. The Company's presentation of Adjusted
EBITDA, Adjusted net income and Adjusted net income per share,
diluted, should not be construed as an inference that the Company's
future results will be unaffected by similar amounts or other
unusual or nonrecurring items. See the tables at the end of this
press release for a reconciliation of EBITDA, Adjusted EBITDA,
Total Segment EBITDA, Adjusted net income, and Adjusted net income
per share, diluted, to their most directly comparable GAAP
financial measure.
The non-GAAP financial measures used in our full-year outlook
will differ from net income and net income per share, diluted,
determined in accordance with GAAP in ways similar to those
described in the reconciliations at the end of this press release.
We do not provide guidance for net income or net income per share,
diluted, determined in accordance with GAAP or a reconciliation of
guidance for Adjusted net income and Adjusted net income per share,
diluted, to the most directly comparable GAAP measure because we
are not able to predict with reasonable certainty the amount or
nature of all items that will be included in our net income and net
income per share, diluted, for the year ending December 31, 2020. These items are uncertain,
depend on many factors and could have a material impact on our net
income and net income per share, diluted, for the year ending
December 31, 2020.
Same store sales refers to year-over-year sales comparisons for
the same store sales base of both corporate-owned and
franchisee-owned stores. We define the same store sales base to
include those stores that have been open and for which monthly
membership dues have been billed for longer than 12 months. We
measure same store sales based solely upon monthly dues billed to
members of our corporate-owned and franchisee-owned stores.
Investor Conference Call
The Company will hold a conference call at 4:30 pm (ET) on February 25, 2020 to discuss
the news announced in this press release. A live webcast of the
conference call will be accessible at www.planetfitness.com
via the "Investor Relations" link. The webcast will be
archived on the website for one year.
About Planet Fitness
Founded in 1992 in Dover, NH,
Planet Fitness is one of the largest and fastest-growing
franchisors and operators of fitness centers in the United States by number of members and
locations. As of December 31, 2019, Planet Fitness had
approximately 14.4 million members and 2,001 stores in 50 states,
the District of Columbia,
Puerto Rico, Canada, the Dominican Republic, Panama, Mexico and Australia. The Company's mission is to enhance
people's lives by providing a high-quality fitness experience in a
welcoming, non-intimidating environment, which we call the
Judgement Free ZoneĀ®. More than 95% of Planet Fitness stores are
owned and operated by independent business men and women.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the federal securities laws, which involve risks and
uncertainties. Forward-looking statements include the
Company's statements with respect to expected future performance
presented under the heading "2020 Outlook," those attributed to the
Company's Chief Executive Officer in this press release, the
Company's statements about its share repurchase program and other
statements, estimates and projections that do not relate solely to
historical facts. Forward-looking statements can be identified by
words such as "believe," "expect," "goal," plan," "will,"
"prospects," "future," "strategy" and similar references to future
periods, although not all forward-looking statements include these
identifying words. Forward-looking statements are not
assurances of future performance. Instead, they are based only on
the Company's current beliefs, expectations and assumptions
regarding the future of the business, future plans and strategies,
projections, anticipated events and trends, the economy and other
future conditions. Because forward-looking statements relate to the
future, they are subject to inherent uncertainties, risks and
changes in circumstances that are difficult to predict and many of
which are outside of the Company's control. Actual results and
financial condition may differ materially from those indicated in
the forward-looking statements. Important factors that could cause
our actual results to differ materially include risks and
uncertainties associated with competition in the fitness industry,
the Company's and franchisees' ability to attract and retain new
members, the Company's and franchisees' ability to identify and
secure suitable sites for new franchise stores, changes in consumer
demand, changes in equipment costs, the Company's ability to expand
into new markets domestically and internationally, operating costs
for the Company and franchisees generally, availability and cost of
capital for franchisees, acquisition activity, developments and
changes in laws and regulations, our substantial increased
indebtedness as a result of our refinancing and securitization
transactions and our ability to incur additional indebtedness or
refinance that indebtedness in the future, our future financial
performance and our ability to pay principal and interest on our
indebtedness, our corporate structure and tax receivable
agreements, failures, interruptions or security breaches of
the Company's information systems or technology, general economic
conditions and the other factors described in the Company's annual
report on Form 10-K for the year ended December 31, 2018 and,
once available, the Company's annual report on Form 10-K for the
year ended December 31, 2019, as well as the Company's other
filings with the Securities and Exchange Commission. In light of
the significant risks and uncertainties inherent in forward-looking
statements, investors should not place undue reliance on
forward-looking statements, which reflect the Company's views only
as of the date of this press release. Except as required by law,
neither the Company nor any of its affiliates or representatives
undertake any obligation to provide additional information or to
correct or update any information set forth in this release,
whether as a result of new information, future developments or
otherwise.
Planet Fitness,
Inc. and subsidiaries
|
Consolidated
Statements of Operations
|
(Unaudited)
|
(Amounts in
thousands, except per share amounts)
|
|
|
|
For the three
months ended
December 31,
|
|
For the year ended
December 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Revenue:
|
|
|
|
|
|
|
|
|
Franchise
|
|
$
|
58,515
|
|
|
$
|
45,739
|
|
|
$
|
223,139
|
|
|
$
|
175,314
|
|
Commission
income
|
|
1,615
|
|
|
1,620
|
|
|
4,288
|
|
|
6,632
|
|
National advertising
fund revenue
|
|
13,169
|
|
|
9,197
|
|
|
50,155
|
|
|
42,194
|
|
Corporate-owned
stores
|
|
41,216
|
|
|
36,234
|
|
|
159,697
|
|
|
138,599
|
|
Equipment
|
|
76,996
|
|
|
81,570
|
|
|
251,524
|
|
|
210,159
|
|
Total
revenue
|
|
191,511
|
|
|
174,360
|
|
|
688,803
|
|
|
572,898
|
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
59,378
|
|
|
62,532
|
|
|
194,449
|
|
|
162,646
|
|
Store
operations
|
|
22,745
|
|
|
19,851
|
|
|
86,108
|
|
|
75,005
|
|
Selling, general and
administrative
|
|
20,874
|
|
|
20,380
|
|
|
78,818
|
|
|
72,446
|
|
National advertising
fund expense
|
|
13,167
|
|
|
9,622
|
|
|
50,153
|
|
|
42,619
|
|
Depreciation and
amortization
|
|
12,030
|
|
|
9,313
|
|
|
44,346
|
|
|
35,260
|
|
Other loss
(gain)
|
|
1,747
|
|
|
(80)
|
|
|
1,846
|
|
|
878
|
|
Total operating costs
and expenses
|
|
129,941
|
|
|
121,618
|
|
|
455,720
|
|
|
388,854
|
|
Income from
operations
|
|
61,570
|
|
|
52,742
|
|
|
233,083
|
|
|
184,044
|
|
Other expense,
net:
|
|
|
|
|
|
|
|
|
Interest
income
|
|
1,468
|
|
|
2,201
|
|
|
7,053
|
|
|
4,681
|
|
Interest
expense
|
|
(16,660)
|
|
|
(15,021)
|
|
|
(60,852)
|
|
|
(50,746)
|
|
Other
expense
|
|
(1,283)
|
|
|
(5,837)
|
|
|
(6,107)
|
|
|
(6,175)
|
|
Total other expense,
net
|
|
(16,475)
|
|
|
(18,657)
|
|
|
(59,906)
|
|
|
(52,240)
|
|
Income before income
taxes
|
|
45,095
|
|
|
34,085
|
|
|
173,177
|
|
|
131,804
|
|
Provision for income
taxes
|
|
10,840
|
|
|
5,307
|
|
|
37,764
|
|
|
28,642
|
|
Net income
|
|
34,255
|
|
|
28,778
|
|
|
135,413
|
|
|
103,162
|
|
Less net income
attributable to non-controlling interests
|
|
4,590
|
|
|
3,983
|
|
|
17,718
|
|
|
15,141
|
|
Net income
attributable to Planet Fitness, Inc.
|
|
$
|
29,665
|
|
|
$
|
24,795
|
|
|
$
|
117,695
|
|
|
$
|
88,021
|
|
Net income per share
of Class A common stock:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.37
|
|
|
$
|
0.29
|
|
|
$
|
1.42
|
|
|
$
|
1.01
|
|
Diluted
|
|
$
|
0.36
|
|
|
$
|
0.29
|
|
|
$
|
1.41
|
|
|
$
|
1.00
|
|
Weighted-average
shares of Class A common stock outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
80,831
|
|
|
85,774
|
|
|
82,977
|
|
|
87,235
|
|
Diluted
|
|
81,453
|
|
|
86,302
|
|
|
83,619
|
|
|
87,675
|
|
Planet Fitness,
Inc. and subsidiaries
|
Consolidated
Balance Sheets
|
(Unaudited)
|
(Amounts in
thousands, except per share amounts)
|
|
|
|
December
31,
|
|
December 31,
|
|
|
2019
|
|
2018
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
436,256
|
|
|
$
|
289,431
|
|
Restricted
cash
|
|
42,539
|
|
|
30,708
|
|
Accounts receivable,
net of allowance for bad debts of $111 and $84 at
December 31, 2019 and 2018, respectively
|
|
42,268
|
|
|
38,960
|
|
Inventory
|
|
877
|
|
|
5,122
|
|
Prepaid
expenses
|
|
8,025
|
|
|
4,947
|
|
Other
receivables
|
|
9,226
|
|
|
12,548
|
|
Income tax
receivable
|
|
947
|
|
|
6,824
|
|
Total current
assets
|
|
540,138
|
|
|
388,540
|
|
Property and
equipment, net of accumulated depreciation of $73,621, as of
December 31,
2019 and
$53,086 as of December 31, 2018
|
|
145,481
|
|
|
114,367
|
|
Right-of-use assets,
net
|
|
155,633
|
|
|
ā
|
|
Intangible assets,
net
|
|
233,921
|
|
|
234,330
|
|
Goodwill
|
|
227,821
|
|
|
199,513
|
|
Deferred income
taxes
|
|
412,293
|
|
|
414,841
|
|
Other assets,
net
|
|
1,903
|
|
|
1,825
|
|
Total
assets
|
|
$
|
1,717,190
|
|
|
$
|
1,353,416
|
|
Liabilities and
stockholders' deficit
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current maturities of
long-term debt
|
|
$
|
17,500
|
|
|
$
|
12,000
|
|
Accounts
payable
|
|
21,267
|
|
|
30,428
|
|
Accrued
expenses
|
|
31,623
|
|
|
32,384
|
|
Equipment
deposits
|
|
3,008
|
|
|
7,908
|
|
Deferred revenue,
current
|
|
27,596
|
|
|
23,488
|
|
Payable pursuant to tax
benefit arrangements, current
|
|
26,468
|
|
|
24,765
|
|
Other current
liabilities
|
|
18,016
|
|
|
430
|
|
Total current
liabilities
|
|
145,478
|
|
|
131,403
|
|
Long-term debt, net
of current maturities
|
|
1,687,505
|
|
|
1,160,127
|
|
Deferred rent, net of
current portion
|
|
ā
|
|
|
10,083
|
|
Lease liabilities,
net of current portion
|
|
152,920
|
|
|
ā
|
|
Deferred revenue, net
of current portion
|
|
34,458
|
|
|
26,374
|
|
Deferred tax
liabilities
|
|
1,116
|
|
|
2,303
|
|
Payable pursuant to
tax benefit arrangements, net of current portion
|
|
400,748
|
|
|
404,468
|
|
Other
liabilities
|
|
2,719
|
|
|
1,447
|
|
Total noncurrent
liabilities
|
|
2,279,466
|
|
|
1,604,802
|
|
Stockholders' equity
(deficit):
|
|
|
|
|
Class A common stock,
$.0001 par value - 300,000 shares authorized, 78,525 and 83,584
shares issued and outstanding as of December 31, 2019
and 2018, respectively
|
|
8
|
|
|
9
|
|
Class B common stock,
$.0001 par value - 100,000 shares authorized, 8,562 and 9,448
shares issued and outstanding as of December 31, 2019
and 2018, respectively
|
|
1
|
|
|
1
|
|
Accumulated other
comprehensive income
|
|
303
|
|
|
94
|
|
Additional paid in
capital
|
|
29,820
|
|
|
19,732
|
|
Accumulated
deficit
|
|
(736,587)
|
|
|
(394,410)
|
|
Total stockholders'
deficit attributable to Planet Fitness Inc.
|
|
(706,455)
|
|
|
(374,574)
|
|
Non-controlling
interests
|
|
(1,299)
|
|
|
(8,215)
|
|
Total stockholders'
deficit
|
|
(707,754)
|
|
|
(382,789)
|
|
Total liabilities and
stockholders' deficit
|
|
$
|
1,717,190
|
|
|
$
|
1,353,416
|
|
Planet Fitness,
Inc. and subsidiaries
|
Consolidated
Statements of Cash Flows
|
(Unaudited)
|
(Amounts in
thousands, except per share amounts)
|
|
|
For the Year Ended
December 31,
|
|
2019
|
|
2018
|
Cash flows from
operating activities:
|
|
|
|
Net income
|
$
|
135,413
|
|
|
$
|
103,162
|
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
Depreciation and
amortization
|
44,346
|
|
|
35,260
|
|
Amortization of
deferred financing costs
|
5,454
|
|
|
3,400
|
|
Amortization of
favorable leases and asset retirement obligations
|
237
|
|
|
375
|
|
Amortization of
interest rate caps
|
ā
|
|
|
1,170
|
|
Deferred tax
expense
|
21,625
|
|
|
23,933
|
|
Loss on
re-measurement of tax benefit arrangement
|
5,966
|
|
|
4,765
|
|
Provision for bad
debts
|
87
|
|
|
19
|
|
(Gain) Loss on
disposal of property and equipment
|
(159)
|
|
|
462
|
|
Loss on
extinguishment of debt
|
ā
|
|
|
4,570
|
|
Loss on reacquired
franchise rights
|
1,810
|
|
|
360
|
|
Equity-based
compensation
|
4,826
|
|
|
5,479
|
|
Changes in operating
assets and liabilities:
|
|
|
|
Accounts
receivable
|
(895)
|
|
|
(1,923)
|
|
Due from related
parties
|
(472)
|
|
|
3,598
|
|
Inventory
|
4,244
|
|
|
(2,430)
|
|
Other assets and
other current assets
|
(3,198)
|
|
|
5,778
|
|
Accounts payable and
accrued expenses
|
(6,268)
|
|
|
14,506
|
|
Other liabilities and
other current liabilities
|
1,687
|
|
|
(2,835)
|
|
Income
taxes
|
6,231
|
|
|
194
|
|
Payments pursuant to tax benefit arrangements
|
(24,998)
|
|
|
(30,493)
|
|
Equipment
deposits
|
(4,900)
|
|
|
1,410
|
|
Deferred
revenue
|
11,452
|
|
|
9,640
|
|
Deferred
rent
|
1,823
|
|
|
3,999
|
|
Net cash provided by
operating activities
|
204,311
|
|
|
184,399
|
|
Cash flows from
investing activities:
|
|
|
|
Additions to property
and equipment
|
(57,890)
|
|
|
(40,860)
|
|
Acquisitions of
franchises
|
(52,613)
|
|
|
(45,752)
|
|
Proceeds from sale of
property and equipment
|
109
|
|
|
196
|
|
Purchase of
intellectual property
|
(300)
|
|
|
ā
|
|
Net cash used in
investing activities
|
(110,694)
|
|
|
(86,416)
|
|
Cash flows from
financing activities:
|
|
|
|
Proceeds from
issuance of long-term debt
|
550,000
|
|
|
1,200,000
|
|
Proceeds from
issuance of Class A common stock
|
2,863
|
|
|
1,209
|
|
Principal payments on
capital lease obligations
|
(93)
|
|
|
(47)
|
|
Repayment of
long-term debt
|
(12,000)
|
|
|
(712,469)
|
|
Payment of deferred
financing and other debt-related costs
|
(10,577)
|
|
|
(27,133)
|
|
Repurchase and
retirement of Class A common stock
|
(458,166)
|
|
|
(342,383)
|
|
Dividend equivalent
paid to members of Pla-Fit Holdings
|
(243)
|
|
|
(957)
|
|
Distributions to
members of Pla-Fit Holdings
|
(7,436)
|
|
|
(8,300)
|
|
Net cash used in
financing activities
|
64,348
|
|
|
109,920
|
|
Effects of exchange
rate changes on cash and cash equivalents
|
691
|
|
|
(844)
|
|
Net increase in cash,
cash equivalents and restricted cash
|
158,656
|
|
|
207,059
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
320,139
|
|
|
113,080
|
|
Cash, cash
equivalents and restricted cash, end of period
|
$
|
478,795
|
|
|
$
|
320,139
|
|
Supplemental cash
flow information:
|
|
|
|
Net cash paid for
income taxes
|
$
|
10,001
|
|
|
$
|
5,016
|
|
Cash paid for
interest
|
$
|
53,713
|
|
|
$
|
38,624
|
|
Non-cash investing
activities:
|
|
|
|
Non-cash additions to
property and equipment
|
$
|
2,827
|
|
|
$
|
5,451
|
|
Planet Fitness, Inc. and subsidiaries
Non-GAAP Financial Measures
(Unaudited)
(Amounts in thousands, except per share
amounts)
To supplement its consolidated financial statements, which are
prepared and presented in accordance with GAAP, the Company uses
the following non-GAAP financial measures: EBITDA, Total Segment
EBITDA, Adjusted EBITDA, Adjusted net income and Adjusted net
income per share, diluted (collectively, the "non-GAAP financial
measures"). The Company believes that these non-GAAP financial
measures, when used in conjunction with GAAP financial measures,
are useful to investors in evaluating our operating performance.
These non-GAAP financial measures presented in this release are
supplemental measures of the Company's performance that are neither
required by, nor presented in accordance with GAAP. These financial
measures should not be considered in isolation or as substitutes
for GAAP financial measures such as net income or any other
performance measures derived in accordance with GAAP. In addition,
in the future, the Company may incur expenses or charges such as
those added back to calculate Adjusted EBITDA, Adjusted net income
and Adjusted net income per share, diluted. The Company's
presentation of Adjusted EBITDA, Adjusted net income, and Adjusted
net income per share, diluted, should not be construed as an
inference that the Company's future results will be unaffected by
unusual or nonrecurring items.
EBITDA, Segment EBITDA and Adjusted EBITDA
We refer to EBITDA and Adjusted EBITDA as we use these measures
to evaluate our operating performance and we believe these measures
provide useful information to investors in evaluating our
performance. We have also disclosed Segment EBITDA as an important
financial metric utilized by the Company to evaluate performance
and allocate resources to segments in accordance with ASC 280,
Segment Reporting. We define EBITDA as net income before
interest, taxes, depreciation and amortization. Segment EBITDA sums
to Total Segment EBITDA, which is equal to the Non-GAAP financial
metric EBITDA. We believe that EBITDA, which eliminates the impact
of certain expenses that we do not believe reflect our underlying
business performance, provides useful information to investors to
assess the performance of our segments as well as the business as a
whole. Our Board of Directors also uses EBITDA as a key metric to
assess the performance of management. We define Adjusted EBITDA as
net income before interest, taxes, depreciation and amortization,
adjusted for the impact of certain additional non-cash and other
items that we do not consider in our evaluation of ongoing
performance of the Company's core operations. These items include
certain purchase accounting adjustments, stock offering-related
costs, and certain other charges and gains. We believe that
Adjusted EBITDA is an appropriate measure of operating performance
in addition to EBITDA because it eliminates the impact of other
items that we believe reduce the comparability of our underlying
core business performance from period to period and is therefore
useful to our investors in comparing the core performance of our
business from period to period.
A reconciliation of Adjusted EBITDA to net income, the most
directly comparable GAAP measure, is set forth below.
|
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
(in
thousands)
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
34,255
|
|
|
$
|
28,778
|
|
|
$
|
135,413
|
|
|
$
|
103,162
|
|
Interest
income
|
|
(1,468)
|
|
|
(2,201)
|
|
|
(7,053)
|
|
|
(4,681)
|
|
Interest
expense(1)
|
|
16,660
|
|
|
15,021
|
|
|
60,852
|
|
|
50,746
|
|
Provision for income
taxes
|
|
10,840
|
|
|
5,307
|
|
|
37,764
|
|
|
28,642
|
|
Depreciation and
amortization
|
|
12,030
|
|
|
9,313
|
|
|
44,346
|
|
|
35,260
|
|
EBITDA
|
|
$
|
72,317
|
|
|
$
|
56,218
|
|
|
$
|
271,322
|
|
|
$
|
213,129
|
|
Purchase accounting
adjustments-revenue(2)
|
|
244
|
|
|
78
|
|
|
768
|
|
|
1,019
|
|
Purchase accounting
adjustments-rent(3)
|
|
122
|
|
|
184
|
|
|
470
|
|
|
732
|
|
Loss on reacquired
franchise rights(4)
|
|
1,810
|
|
|
ā
|
|
|
1,810
|
|
|
360
|
|
Transaction
fees(5)
|
|
ā
|
|
|
17
|
|
|
ā
|
|
|
307
|
|
Severance
costs(6)
|
|
ā
|
|
|
ā
|
|
|
ā
|
|
|
352
|
|
Pre-opening
costs(7)
|
|
772
|
|
|
608
|
|
|
1,793
|
|
|
1,461
|
|
Indemnification
receivable(8)
|
|
ā
|
|
|
342
|
|
|
ā
|
|
|
342
|
|
Tax benefit
arrangement remeasurement(9)
|
|
1,328
|
|
|
4,765
|
|
|
5,966
|
|
|
4,765
|
|
Other(14)
|
|
(7)
|
|
|
48
|
|
|
48
|
|
|
733
|
|
Adjusted
EBITDA
|
|
$
|
76,586
|
|
|
$
|
62,260
|
|
|
$
|
282,177
|
|
|
$
|
223,200
|
|
(1)
|
Includes $4.6 million
of loss on extinguishment of debt in the year ended December 31,
2018.
|
(2)
|
Represents the impact
of revenue-related purchase accounting adjustments associated with
the acquisition of Pla-Fit Holdings on November 8, 2012 by TSG (the
"2012 Acquisition"). At the time of the 2012 Acquisition, the
Company maintained a deferred revenue account, which consisted of
deferred area development agreement fees, deferred franchise fees,
and deferred enrollment fees that the Company billed and collected
up front but recognizes for GAAP purposes at a later date. In
connection with the 2012 Acquisition, it was determined that the
carrying amount of deferred revenue was greater than the fair value
assessed in accordance with ASC 805āBusiness Combinations, which
resulted in a write-down of the carrying value of the deferred
revenue balance upon application of acquisition push-down
accounting under ASC 805. These amounts represent the additional
revenue that would have been recognized in these periods if the
write-down to deferred revenue had not occurred in connection with
the application of acquisition pushdown accounting.
|
(3)
|
Represents the impact
of rent-related purchase accounting adjustments. In accordance with
guidance in ASC 805 ā Business Combinations, in connection with the
2012 Acquisition, the Company's deferred rent liability was
required to be written off as of the acquisition date and rent was
recorded on a straight-line basis from the acquisition date through
the end of the lease term. This resulted in higher overall recorded
rent expense each period than would have otherwise been recorded
had the deferred rent liability not been written off as a result of
the acquisition push down accounting applied in accordance with ASC
805. Adjustments of $0.1 million, $0.1 million, $0.2 million and
$0.4 million in the three months ended December 31, 2019 and
2018 and the years ended December 31, 2019 and 2018,
respectively, reflect the difference between the higher rent
expense recorded in accordance with U.S. GAAP since the acquisition
and the rent expense that would have been recorded had the 2012
Acquisition not occurred. Adjustments of $0.1 million, $0.1
million, $0.3 million and $0.4 million in the three months ended
December 31, 2019 and 2018 and the years ended
December 31, 2019 and 2018, respectively, are due to the
amortization of favorable and unfavorable lease intangible assets.
All of the rent related purchase accounting adjustments are
adjustments to rent expense which is included in store operations
on our consolidated statements of operations.
|
(4)
|
Represents the impact
of a non-cash loss recorded in accordance with ASC 805 - Business
Combinations related to our acquisition of 12 franchisee-owned
stores in December 2019. The loss recorded under GAAP represents
the difference between the fair value of the reacquired franchise
rights and the contractual terms of the reacquired franchise rights
and is included in other (gain) loss on our consolidated statements
of operations.
|
(5)
|
Represents
transaction fees and expenses that could not be capitalized related
to the securitized debt transaction in 2018.
|
(6)
|
Represents severance
expense recorded in connection with an equity award
modification.
|
(7)
|
Represents costs
associated with new corporate-owned stores incurred prior to the
store opening, including payroll-related costs, rent and occupancy
expenses, marketing and other store operating supply
expenses.
|
(8)
|
Represents a
receivable recorded in connection with a contractual obligation of
the Company's co-founders to indemnify the Company with respect to
pre-IPO tax liabilities pursuant to the 2012
Acquisition.
|
(9)
|
Represents gains and
losses related to the adjustment of our tax benefit arrangements
primarily due to changes in our effective tax rate.
|
(10)
|
Represents certain
other charges and gains that we do not believe reflect our
underlying business performance. In the year ended December 31,
2018 this amount included expense of $0.6 million related to the
write off of certain assets that were being tested for potential
use across the system.
|
A reconciliation of Segment EBITDA to Total Segment EBITDA is
set forth below.
|
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
(in
thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Segment
EBITDA
|
|
|
|
|
|
|
|
|
Franchise
|
|
$
|
50,734
|
|
|
$
|
38,778
|
|
|
$
|
192,281
|
|
|
$
|
152,571
|
|
Corporate-owned
stores
|
|
15,108
|
|
|
14,589
|
|
|
65,613
|
|
|
56,704
|
|
Equipment
|
|
18,698
|
|
|
19,028
|
|
|
59,618
|
|
|
47,607
|
|
Corporate and
other
|
|
(12,222)
|
|
|
(16,177)
|
|
|
(46,190)
|
|
|
(43,753)
|
|
Total Segment
EBITDA(1)
|
|
$
|
72,318
|
|
|
$
|
56,218
|
|
|
$
|
271,322
|
|
|
$
|
213,129
|
|
|
|
(1)
|
Total Segment EBITDA
is equal to EBITDA.
|
Adjusted Net Income and Adjusted Net Income per Diluted
Share
Adjusted net income assumes that all net income is attributable
to Planet Fitness, Inc., which assumes the full exchange of all
outstanding Holdings Units for shares of Class A common stock of
Planet Fitness, Inc., adjusted for certain non-recurring items that
we do not believe directly reflect our core operations. Adjusted
net income per share, diluted, is calculated by dividing Adjusted
net income by the total shares of Class A common stock outstanding
plus any dilutive options and restricted stock units as calculated
in accordance with GAAP and assuming the full exchange of all
outstanding Holdings Units and corresponding Class B common stock
as of the beginning of each period presented. Adjusted net income
and Adjusted net income per share, diluted, are supplemental
measures of operating performance that do not represent, and should
not be considered, alternatives to net income and earnings per
share, as calculated in accordance with GAAP. We believe Adjusted
net income and Adjusted net income per share, diluted, supplement
GAAP measures and enable us to more effectively evaluate our
performance period-over-period. A reconciliation of Adjusted net
income to net income, the most directly comparable GAAP measure,
and the computation of Adjusted net income per share, diluted, are
set forth below.
|
|
Three months ended
December 31,
|
|
Year ended
December 31,
|
(in thousands,
except per share amounts)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net income
|
|
$
|
34,255
|
|
|
$
|
28,778
|
|
|
$
|
135,413
|
|
|
$
|
103,162
|
|
Provision for income
taxes, as reported
|
|
10,840
|
|
|
5,307
|
|
|
37,764
|
|
|
28,642
|
|
Purchase accounting
adjustments-revenue(1)
|
|
244
|
|
|
78
|
|
|
768
|
|
|
1,019
|
|
Purchase accounting
adjustments-rent(2)
|
|
122
|
|
|
184
|
|
|
470
|
|
|
732
|
|
Loss on reacquired
franchise rights(3)
|
|
1,810
|
|
|
ā
|
|
|
1,810
|
|
|
360
|
|
Transaction
fees(4)
|
|
ā
|
|
|
17
|
|
|
ā
|
|
|
307
|
|
Loss on extinguishment
of debt(5)
|
|
ā
|
|
|
ā
|
|
|
ā
|
|
|
4,570
|
|
Severance
costs(6)
|
|
ā
|
|
|
ā
|
|
|
ā
|
|
|
352
|
|
Pre-opening
costs(7)
|
|
772
|
|
|
608
|
|
|
1,793
|
|
|
1,461
|
|
Indemnification
receivable(8)
|
|
ā
|
|
|
342
|
|
|
ā
|
|
|
342
|
|
Tax benefit
arrangement remeasurement(9)
|
|
1,328
|
|
|
4,765
|
|
|
5,966
|
|
|
4,765
|
|
Other(10)
|
|
(7)
|
|
|
48
|
|
|
48
|
|
|
733
|
|
Purchase accounting
amortization(11)
|
|
4,164
|
|
|
3,940
|
|
|
16,318
|
|
|
15,716
|
|
Adjusted income
before income taxes
|
|
$
|
53,528
|
|
|
$
|
44,067
|
|
|
$
|
200,350
|
|
|
$
|
162,161
|
|
Adjusted income
taxes(12)
|
|
14,346
|
|
|
11,590
|
|
|
53,694
|
|
|
42,648
|
|
Adjusted net
income
|
|
$
|
39,182
|
|
|
$
|
32,477
|
|
|
$
|
146,656
|
|
|
$
|
119,513
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
per share, diluted
|
|
$
|
0.44
|
|
|
$
|
0.34
|
|
|
$
|
1.59
|
|
|
$
|
1.22
|
|
|
|
|
|
|
|
|
|
|
Adjusted
weighted-average shares outstanding(13)
|
|
90,015
|
|
|
95,758
|
|
|
92,358
|
|
|
97,950
|
|
(1)
|
Represents the impact
of revenue-related purchase accounting adjustments associated with
the 2012 Acquisition. At the time of the 2012 Acquisition, the
Company maintained a deferred revenue account, which consisted of
deferred area development agreement fees, deferred franchise fees,
and deferred enrollment fees that the Company billed and collected
up front but recognizes for GAAP purposes at a later date. In
connection with the 2012 Acquisition, it was determined that the
carrying amount of deferred revenue was greater than the fair value
assessed in accordance with ASC 805āBusiness Combinations, which
resulted in a write-down of the carrying value of the deferred
revenue balance upon application of acquisition push-down
accounting under ASC 805. These amounts represent the additional
revenue that would have been recognized in these periods if the
write-down to deferred revenue had not occurred in connection with
the application of acquisition pushdown accounting.
|
(2)
|
Represents the impact
of rent-related purchase accounting adjustments. In accordance with
guidance in ASC 805 ā Business Combinations, in connection with the
2012 Acquisition, the Company's deferred rent liability was
required to be written off as of the acquisition date and rent was
recorded on a straight-line basis from the acquisition date through
the end of the lease term. This resulted in higher overall recorded
rent expense each period than would have otherwise been recorded
had the deferred rent liability not been written off as a result of
the acquisition push down accounting applied in accordance with ASC
805. Adjustments of $0.1 million, $0.1 million, $0.2 million and
$0.4 million in the three months ended December 31, 2019 and
2018 and the years ended December 31, 2019 and 2018,
respectively, reflect the difference between the higher rent
expense recorded in accordance with U.S. GAAP since the acquisition
and the rent expense that would have been recorded had the 2012
Acquisition not occurred. Adjustments of $0.1 million, $0.1
million, $0.3 million and $0.4 million in the three months ended
December 31, 2019 and 2018 and the years ended
December 31, 2019 and 2018, respectively, are due to the
amortization of favorable and unfavorable lease intangible assets.
All of the rent related purchase accounting adjustments are
adjustments to rent expense which is included in store operations
on our consolidated statements of operations.
|
(3)
|
Represents the impact
of a non-cash loss recorded in accordance with ASC 805 - Business
Combinations related to our acquisition of 12 franchisee-owned
stores in December 2019. The loss recorded under GAAP represents
the difference between the fair value of the reacquired franchise
rights and the contractual terms of the reacquired franchise rights
and is included in other (gain) loss on our consolidated statements
of operations.
|
(4)
|
Represents
transaction fees and expenses that could not be capitalized related
to the securitized debt transaction in 2018.
|
(5)
|
Represents a loss on
extinguishment of debt related to the write-off of deferred
financing costs associated with the Term Loan B which the Company
repaid in August 2018.
|
(6)
|
Represents severance
expense recorded in connection with an equity award
modification.
|
(7)
|
Represents costs
associated with new corporate-owned stores incurred prior to the
store opening, including payroll-related costs, rent and occupancy
expenses, marketing and other store operating supply
expenses.
|
(8)
|
Represents a
receivable recorded in connection with a contractual obligation of
the Company's co-founders to indemnify the Company with respect to
pre-IPO tax liabilities pursuant to the 2012
Acquisition.
|
(9)
|
Represents gains and
losses related to the adjustment of our tax benefit arrangements
primarily due to changes in our effective tax rate.
|
(10)
|
Represents certain
other charges and gains that we do not believe reflect our
underlying business performance. In the year ended December 31,
2018 this amount included expense of $0.6 million related to the
write-off of certain assets that were being tested for potential
use across the system.
|
(11)
|
Includes $3.1
million, $3.1 million, $12.4 million and $12.4 million of
amortization of intangible assets, other than favorable leases, for
the three months ended December 31, 2019 and 2018 and the
years ended December 31, 2019 and 2018, respectively recorded
in connection with the 2012 Acquisition, and $1.1 million, $0.8
million, $4.0 million and $3.3 million of amortization of
intangible assets for the three months ended
December 31, 2019 and 2018 and the years ended
December 31, 2019 and 2018, respectively, created in
connection with historical acquisitions of franchisee-owned stores.
The adjustment represents the amount of actual non-cash
amortization expense recorded, in accordance with GAAP, in each
period.
|
(12)
|
Represents corporate
income taxes at an assumed effective tax rate of 26.8% for the
three months and year ended December 31, 2019 and 26.3% for
the three months and year ended December 31, 2018, applied to
adjusted income before income taxes.
|
(13)
|
Assumes the full
exchange of all outstanding Holdings Units and corresponding shares
of Class B common stock for shares of Class A common stock of
Planet Fitness, Inc.
|
A reconciliation of net income per share, diluted, to Adjusted
net income per share, diluted is set forth below for the three
months and years ended December 31, 2019 and 2018:
|
|
For the three
months ended
December 31, 2019
|
|
For the three
months ended
December 31, 2018
|
(in thousands,
except per share amounts)
|
|
Net
income
|
|
Weighted Average
Shares
|
|
Net income per
share, diluted
|
|
Net
income
|
|
Weighted Average
Shares
|
|
Net income per
share, diluted
|
Net income
attributable to Planet Fitness, Inc.(1)
|
|
$
|
29,665
|
|
|
81,453
|
|
|
$
|
0.36
|
|
|
$
|
24,795
|
|
|
86,302
|
|
|
$
|
0.29
|
|
Assumed exchange of
shares(2)
|
|
4,590
|
|
|
8,562
|
|
|
|
|
3,983
|
|
|
9,456
|
|
|
|
Net Income
|
|
34,255
|
|
|
|
|
|
|
28,778
|
|
|
|
|
|
Adjustments to arrive
at adjusted income
before income taxes(3)
|
|
19,273
|
|
|
|
|
|
|
15,289
|
|
|
|
|
|
Adjusted income
before income taxes
|
|
53,528
|
|
|
|
|
|
|
44,067
|
|
|
|
|
|
Adjusted income
taxes(4)
|
|
14,346
|
|
|
|
|
|
|
11,590
|
|
|
|
|
|
Adjusted Net
Income
|
|
$
|
39,182
|
|
|
90,015
|
|
|
$
|
0.44
|
|
|
$
|
32,477
|
|
|
95,758
|
|
|
$
|
0.34
|
|
|
|
(1)
|
Represents net income
attributable to Planet Fitness, Inc. and the associated weighted
average shares, diluted of Class A common stock
outstanding.
|
(2)
|
Assumes the full
exchange of all outstanding Holdings Units and corresponding shares
of Class B common stock for shares of Class A common stock of
Planet Fitness, Inc. Also assumes the addition of net income
attributable to non-controlling interests corresponding with the
assumed exchange of Holdings Units and share of Class B common
stock for shares of Class A common stock.
|
(3)
|
Represents the total
impact of all adjustments identified in the adjusted net income
table above to arrive at adjusted income before income
taxes.
|
(4)
|
Represents corporate
income taxes at an assumed effective tax rate of 26.8% and 26.3%
for the three months ended December 31, 2019 and 2018,
respectively, applied to adjusted income before income
taxes.
|
|
|
Year Ended
December 31, 2019
|
|
Year Ended
December 31, 2018
|
(in thousands,
except per share amounts)
|
|
Net
income
|
|
Weighted
Average
Shares
|
|
Net income
per share,
diluted
|
|
Net
income
|
|
Weighted
Average
Shares
|
|
Net income
per share,
diluted
|
Net income
attributable to Planet Fitness, Inc.(1)
|
|
$
|
117,695
|
|
|
83,619
|
|
|
$
|
1.41
|
|
|
$
|
88,021
|
|
|
87,675
|
|
|
$
|
1.00
|
|
Assumed exchange of
shares(2)
|
|
17,718
|
|
|
8,739
|
|
|
|
|
15,141
|
|
|
10,275
|
|
|
|
Net Income
|
|
135,413
|
|
|
|
|
|
|
103,162
|
|
|
|
|
|
Adjustments to arrive
at adjusted income
before income taxes(3)
|
|
64,937
|
|
|
|
|
|
|
58,999
|
|
|
|
|
|
Adjusted income
before income taxes
|
|
200,350
|
|
|
|
|
|
|
162,161
|
|
|
|
|
|
Adjusted income
taxes(4)
|
|
53,694
|
|
|
|
|
|
|
42,648
|
|
|
|
|
|
Adjusted Net
Income
|
|
$
|
146,656
|
|
|
92,358
|
|
|
$
|
1.59
|
|
|
$
|
119,513
|
|
|
97,950
|
|
|
$
|
1.22
|
|
|
|
(1)
|
Represents net income
attributable to Planet Fitness, Inc. and the associated weighted
average shares, diluted of Class A common stock
outstanding.
|
(2)
|
Assumes the full
exchange of all outstanding Holdings Units and corresponding shares
of Class B common stock for shares of Class A common stock of
Planet Fitness, Inc. Also assumes the addition of net income
attributable to non-controlling interests corresponding with the
assumed exchange of Holdings Units and shares of Class B common
stock for shares of Class A common stock.
|
(3)
|
Represents the total
impact of all adjustments identified in the adjusted net income
table above to arrive at adjusted income before income
taxes.
|
(4)
|
Represents corporate
income taxes at an assumed effective tax rate of 26.8% and 26.3%
for the years ended December 31, 2019 and 2018, respectively,
applied to adjusted income before income taxes.
|
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SOURCE Planet Fitness, Inc.