System-wide same store sales increased
8.4%
Ended third quarter with total membership of more
than 18.5 million
Opened 26 new Planet Fitness stores
bringing total to 2,498
Updates 2023 outlook
HAMPTON,
N.H., Nov. 7, 2023 /PRNewswire/ -- Today, Planet
Fitness, Inc. (NYSE:PLNT) reported financial results for its third
quarter ended September 30, 2023.
"I'm honored to serve as interim CEO of such a truly unique
brand with a strong track record of growth as we enter the next
chapter of the Planet Fitness journey. As a Board member, and a
Planet Fitness franchisee, I know firsthand the power of this
brand, the strength of our team, and our commitment to a welcoming,
non-intimidating culture, all of which uniquely position us to
continue to lead the industry. My priorities are to lead the team
as we execute on the current strategy with a focus on enhancing
returns on stores as well as assisting the Board with the
search for a permanent CEO," said Governor Craig Benson, interim Chief Executive Officer.
"We ended the third quarter with more than 18.5 million members,
drove 8.4 percent system-wide same store sales growth primarily
from an increase in members, and grew our store count to nearly
2,500 locations globally. With our industry-leading results, we're
adjusting our store-level return model to further improve the
attractiveness of opening and operating Planet Fitness stores in a
new macro-environment. The changes include decreasing certain
capital investments by extending the timing for replacing equipment
and completing remodels, to set us and our franchisees up for
continued long-term sustainable growth."
Third Quarter Fiscal 2023 results
- Total revenue increased from the prior year period by 13.6% to
$277.6 million.
- System-wide same store sales increased by 8.4%.
- System-wide sales increased $124.8
million to $1,092.9 million,
from $968.1 million in the prior year
period.
- Net income attributable to Planet Fitness, Inc. was
$39.1 million, or $0.46 per diluted share, compared to $26.9 million, or $0.32 per diluted share, in the prior year
period.
- Net income increased $10.6
million to $41.3 million,
compared to $30.7 million in the
prior year period.
- Adjusted net income(1) increased $13.6 million to $51.8
million, or $0.59 per diluted
share, compared to $38.2 million, or
$0.42 per diluted share, in the prior
year period.
- Adjusted EBITDA(1) increased $18.0 million to $111.9
million from $93.9 million in
the prior year period.
- 26 new Planet Fitness stores were opened during the period,
including 2 corporate-owned and 24 franchisee-owned stores,
bringing system-wide total stores to 2,498 as of September 30, 2023.
- Cash, cash equivalents and marketable securities of
$474.1 million, which includes cash
and cash equivalents of $309.0
million, marketable securities of $118.7 million and restricted cash of
$46.4 million.
(1) Adjusted net income and Adjusted EBITDA are
non-GAAP measures. For reconciliations of Adjusted EBITDA and
Adjusted net income to U.S. GAAP ("GAAP") net income see "Non-GAAP
Financial Measures" accompanying this press release.
Operating Results for the Third Quarter Ended September 30, 2023
For the third quarter 2023, total revenue increased $33.2
million or 13.6% to $277.6 million
from $244.4 million in the prior year
period, which included the impact of the system-wide same store
sales growth of 8.4%. By segment:
- Franchise segment revenue increased $17.4 million or 21.6% to $98.2 million from $80.7
million in the prior year period. The increase in franchise
segment revenue for the third quarter of 2023 was primarily due to
an $8.0 million increase in franchise
royalty revenue, a $3.5 million
increase in franchise and other fees, a $3.0
million increase in National Advertising Fund ("NAF")
revenue, a $1.5 million increase in
equipment placement revenue and $1.3
million of revenue associated with the sale of HVAC units to
franchisees. Of the $8.0 million
increase in franchise royalty revenue, $4.4
million was attributable to a franchisee-owned same store
sales increase of 8.2%, $1.7 million
was from higher royalties on annual fees and $1.6 million was attributable to new stores
opened since July 1, 2022;
- Corporate-owned stores segment revenue increased $11.9 million or 11.8% to $113.2 million from $101.3
million in the prior year period. Of the increase,
$6.8 million was from the
corporate-owned store same store sales increase of 10.1%, and
$5.1 million was from new store
openings since July 1, 2022 and the
April 2023 acquisition of 4 stores in
Florida; and
- Equipment segment revenue increased $3.8
million or 6.1% to $66.1
million from $62.3 million in
the prior year period, driven by $5.6
million of higher equipment sales to existing
franchisee-owned stores in the three months ended September 30, 2023. We had equipment sales to 22
and 27 new franchisee-owned stores in the three months ended
September 30, 2023 and September 30, 2022, respectively.
For the third quarter of 2023, net income attributable to Planet
Fitness, Inc. was $39.1 million, or
$0.46 per diluted share, compared to
$26.9 million, or $0.32 per diluted share, in the prior year
period. Net income was $41.3 million
in the third quarter of 2023 compared to $30.7 million in the prior year period. Adjusted
net income increased $13.6 million to
$51.8 million, or $0.59 per diluted share, from $38.2 million, or $0.42 per diluted share, in the prior year
period. Adjusted net income has been adjusted to reflect a
normalized federal income tax rate of 25.9% for both the current
and 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 $18.0
million to $111.9 million from
$93.9 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 $14.1
million to $67.6 million. The
increase in franchise segment EBITDA for the third quarter of 2023
was primarily attributable to the franchise revenue increases as
described above of $17.4 million,
partially offset by $1.3 million of
higher cost of goods sold from HVAC units sold to franchisees,
$0.8 million of higher selling,
general, and administrative expenses, and higher national
advertising fund expenses of $0.6
million;
- Corporate-owned stores segment EBITDA increased $3.8 million to $44.3
million. Of the increase, $3.9
million was attributable to the stores included in the same
store sales base and $2.2 million was
from new store openings since July 1,
2022 and the April 2023
acquisition of 4 stores in Florida, partially offset by $1.0 million of higher corporate store selling,
general, and administrative expenses in the three months ended
September 30, 2023 and by a
$1.3 million gain in the prior year
related to the sale of corporate-owned stores; and
- Equipment segment EBITDA increased by $0.6 million to $16.4
million, primarily driven by higher equipment sales to
existing franchisee-owned stores in the three months ended
September 30, 2023 compared to the
three months ended September 30,
2022, as described above.
2023 Outlook
For the year ending December 31,
2023, the Company is updating or reiterating the following
expectations as compared to the Company's 2022 results, which
assumes there are no material new supply chain disruptions:
- It now expects new equipment placements of between
approximately 130 and 140 in franchisee-owned locations (previously
it expected approximately 140)
- It now expects system-wide new store openings of between
approximately 150 and 160 locations (previously it expected
approximately 160)
- It continues to expect system-wide same store sales in the high
single-digit percentage range
The following are 2023 growth expectations over the Company's
2022 results:
- It now expects revenue to increase approximately 14%
(previously it expected approximately 12%)
- It now expects Adjusted EBITDA to increase approximately 18%
(previously it expected approximately 17%)
- It now expects Adjusted net income to increase approximately
33% (previously it expected approximately 30%)
- It now expects Adjusted earnings per share to increase
approximately 35% (previously it expected approximately 34%), based
on Adjusted diluted shares outstanding of approximately 89 million,
inclusive of the nearly 1.7 million shares repurchased through
September 30, 2023
The Company continues to expect 2023 net interest expense to be
in the low $70 million range, capital
expenditures to increase approximately 40%, and depreciation and
amortization to increase in the high-teens percentage range.
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 or 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, 2023. 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, 2023, and therefore
cannot be made available without unreasonable effort.
Same store sales refers to year-over-year sales comparisons for
the same store sales base of both corporate-owned and
franchisee-owned stores, which is calculated for a given period by
including only sales from stores that had sales in the comparable
months of both years. 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 8:00 AM (ET) on November 7, 2023 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 world by number
of members and locations. As of September
30, 2023, Planet Fitness had more than 18.5 million members
and 2,498 stores in 50 states, the District of Columbia, Puerto Rico, Canada, 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 90% 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 "2023 Outlook," those attributed to the Company's
Interim Chief Executive Officer in this press release, the
Company's expected membership growth, share repurchases, 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 competition in the
fitness industry, the Company's and franchisees' ability to
attract and retain 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, our
ability to successfully identify and engage a highly qualified
permanent CEO, general economic conditions and the other factors
described in the Company's annual report on Form 10-K for the year
ended December 31, 2022, and 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
|
Condensed Consolidated Statements of Operations
(Unaudited)
|
(Amounts in
thousands, except per share amounts)
|
|
|
|
For the three months
ended
September
30,
|
|
For the nine months
ended
September
30,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue:
|
|
|
|
|
|
|
|
|
Franchise
|
|
$
80,587
|
|
$
66,168
|
|
$ 237,313
|
|
$ 200,243
|
National advertising
fund revenue
|
|
17,578
|
|
14,578
|
|
52,378
|
|
43,130
|
Corporate-owned
stores
|
|
113,245
|
|
101,330
|
|
332,885
|
|
278,940
|
Equipment
|
|
66,141
|
|
62,310
|
|
163,664
|
|
133,191
|
Total
revenue
|
|
277,551
|
|
244,386
|
|
786,240
|
|
655,504
|
Operating costs and
expenses:
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
53,751
|
|
48,531
|
|
132,561
|
|
103,436
|
Store
operations
|
|
63,120
|
|
57,892
|
|
188,011
|
|
161,789
|
Selling, general and
administrative
|
|
33,290
|
|
27,148
|
|
93,705
|
|
86,176
|
National advertising
fund expense
|
|
17,618
|
|
17,009
|
|
52,496
|
|
50,445
|
Depreciation and
amortization
|
|
37,477
|
|
32,572
|
|
110,254
|
|
90,427
|
Other (gains) losses,
net
|
|
(56)
|
|
(700)
|
|
7,705
|
|
(2,452)
|
Total operating costs
and expenses
|
|
205,200
|
|
182,452
|
|
584,732
|
|
489,821
|
Income from
operations
|
|
72,351
|
|
61,934
|
|
201,508
|
|
165,683
|
Other expense,
net:
|
|
|
|
|
|
|
|
|
Interest
income
|
|
4,245
|
|
1,561
|
|
12,339
|
|
2,244
|
Interest
expense
|
|
(21,704)
|
|
(21,917)
|
|
(64,771)
|
|
(66,527)
|
Other income,
net
|
|
148
|
|
4,762
|
|
631
|
|
9,000
|
Total other expense,
net
|
|
(17,311)
|
|
(15,594)
|
|
(51,801)
|
|
(55,283)
|
Income before income
taxes
|
|
55,040
|
|
46,340
|
|
149,707
|
|
110,400
|
Equity losses of
unconsolidated entities, net of tax
|
|
(242)
|
|
(2)
|
|
(580)
|
|
(334)
|
Provision for income
taxes
|
|
13,474
|
|
15,661
|
|
38,855
|
|
35,942
|
Net income
|
|
41,324
|
|
30,677
|
|
110,272
|
|
74,124
|
Less net income
attributable to non-controlling interests
|
|
2,190
|
|
3,764
|
|
7,299
|
|
8,405
|
Net income
attributable to Planet Fitness, Inc.
|
|
$
39,134
|
|
$
26,913
|
|
$ 102,973
|
|
$
65,719
|
Net income per share of
Class A common stock:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.46
|
|
$
0.32
|
|
$
1.22
|
|
$
0.78
|
Diluted
|
|
$
0.46
|
|
$
0.32
|
|
$
1.21
|
|
$
0.78
|
Weighted-average shares
of Class A common stock outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
84,610
|
|
84,156
|
|
84,558
|
|
84,377
|
Diluted
|
|
84,886
|
|
84,547
|
|
84,870
|
|
84,798
|
Planet Fitness, Inc. and
subsidiaries
|
Condensed Consolidated Balance Sheets (Unaudited)
|
(Amounts in
thousands, except per share amounts)
|
|
|
|
September 30,
2023
|
|
December 31,
2022
|
Assets
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
308,970
|
|
$
409,840
|
Restricted
cash
|
|
46,381
|
|
62,659
|
Short-term
marketable securities
|
|
108,460
|
|
ā
|
Accounts
receivable, net of allowances for uncollectible amounts of $0 and
$0 as of
September
30, 2023 and December 31, 2022, respectively
|
|
36,362
|
|
46,242
|
Inventory
|
|
7,536
|
|
5,266
|
Prepaid
expenses
|
|
18,073
|
|
11,078
|
Other
receivables
|
|
8,678
|
|
14,975
|
Income tax
receivables
|
|
5,659
|
|
5,471
|
Total current
assets
|
|
540,119
|
|
555,531
|
Long-term marketable
securities
|
|
10,252
|
|
ā
|
Property and equipment,
net of accumulated depreciation of $296,677 and $227,869 as
of
September
30, 2023 and December 31, 2022, respectively
|
|
366,780
|
|
348,820
|
Investments, net of
allowances for expected credit losses of $14,951 and
$14,957
as of
September 30, 2023 and December 31, 2022, respectively
|
|
46,037
|
|
25,122
|
Right-of-use assets,
net
|
|
381,819
|
|
346,937
|
Intangible assets,
net
|
|
385,462
|
|
417,067
|
Goodwill
|
|
717,502
|
|
702,690
|
Deferred income
taxes
|
|
492,965
|
|
454,565
|
Other assets,
net
|
|
3,911
|
|
3,857
|
Total
assets
|
|
$
2,944,847
|
|
$
2,854,589
|
Liabilities and
stockholders' deficit
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Current
maturities of long-term debt
|
|
$
20,750
|
|
$
20,750
|
Accounts
payable
|
|
28,364
|
|
20,578
|
Accrued
expenses
|
|
56,430
|
|
66,993
|
Equipment
deposits
|
|
13,933
|
|
8,443
|
Restricted
liabilities ā national advertising fund
|
|
805
|
|
ā
|
Deferred revenue,
current
|
|
64,352
|
|
53,759
|
Payable pursuant
to tax benefit arrangements, current
|
|
38,193
|
|
31,940
|
Other current
liabilities
|
|
50,019
|
|
42,067
|
Total current
liabilities
|
|
272,846
|
|
244,530
|
Long-term debt, net of
current maturities
|
|
1,966,682
|
|
1,978,131
|
Lease liabilities, net
of current portion
|
|
379,810
|
|
341,843
|
Deferred revenue, net
of current portion
|
|
32,670
|
|
33,152
|
Deferred tax
liabilities
|
|
1,397
|
|
1,471
|
Payable pursuant to tax
benefit arrangements, net of current portion
|
|
451,569
|
|
462,525
|
Other
liabilities
|
|
4,803
|
|
4,498
|
Total noncurrent
liabilities
|
|
2,836,931
|
|
2,821,620
|
Stockholders' equity
(deficit):
|
|
|
|
|
Class A common
stock, $.0001 par value - 300,000 authorized, 85,410 and 83,430
shares issued and
outstanding as of September 30, 2023 and December 31, 2022,
respectively
|
|
9
|
|
8
|
Class B common
stock, $.0001 par value - 100,000 authorized, 2,733 and 6,146
shares issued and
outstanding as of September 30, 2023 and December 31, 2022,
respectively
|
|
ā
|
|
1
|
Accumulated other
comprehensive loss
|
|
(684)
|
|
(448)
|
Additional paid
in capital
|
|
570,397
|
|
505,144
|
Accumulated
deficit
|
|
(726,800)
|
|
(703,717)
|
Total stockholders'
deficit attributable to Planet Fitness, Inc.
|
|
(157,078)
|
|
(199,012)
|
Non-controlling
interests
|
|
(7,852)
|
|
(12,549)
|
Total stockholders'
deficit
|
|
(164,930)
|
|
(211,561)
|
Total liabilities and
stockholders' deficit
|
|
$
2,944,847
|
|
$
2,854,589
|
Planet Fitness, Inc. and
subsidiaries
|
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
(Amounts in
thousands, except per share amounts)
|
|
|
|
For the nine months
ended September 30,
|
|
|
2023
|
|
2022
|
Cash flows from
operating activities:
|
|
|
|
|
Net income
|
|
$
110,272
|
|
$
74,124
|
Adjustments to
reconcile net income to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and
amortization
|
|
110,254
|
|
90,427
|
Amortization of
deferred financing costs
|
|
4,114
|
|
4,129
|
Write-off of deferred
financing costs
|
|
ā
|
|
1,583
|
Accretion of
marketable securities discount
|
|
(2,224)
|
|
ā
|
Dividends accrued on
investment
|
|
(1,490)
|
|
(1,391)
|
Deferred tax
expense
|
|
34,884
|
|
35,026
|
Equity losses of
unconsolidated entities, net of tax
|
|
580
|
|
334
|
Gain on adjustment of
allowance for credit losses on held-to-maturity
investment
|
|
(6)
|
|
(1,572)
|
Gain on re-measurement
of tax benefit arrangement
|
|
ā
|
|
(8,381)
|
Loss on reacquired
franchise rights
|
|
110
|
|
1,160
|
Gain on sale of
corporate-owned stores
|
|
ā
|
|
(1,324)
|
Equity-based
compensation
|
|
6,326
|
|
6,942
|
Other
|
|
133
|
|
267
|
Changes in operating
assets and liabilities, excluding effects of
acquisitions:
|
|
|
|
|
Accounts
receivable
|
|
10,086
|
|
(7,477)
|
Inventory
|
|
(2,270)
|
|
(3,071)
|
Other assets and other
current assets
|
|
(1,722)
|
|
(567)
|
Restricted liabilities
(assets) - national advertising fund
|
|
805
|
|
(1,773)
|
Accounts payable and
accrued expenses
|
|
(7,488)
|
|
(22,521)
|
Other liabilities and
other current liabilities
|
|
6,855
|
|
1,728
|
Income
taxes
|
|
(104)
|
|
(2,111)
|
Payable pursuant to
tax benefit arrangements
|
|
(21,780)
|
|
(14,211)
|
Equipment
deposits
|
|
5,495
|
|
26,049
|
Deferred
revenue
|
|
9,428
|
|
11,506
|
Leases
|
|
4,662
|
|
1,550
|
Net cash provided by
operating activities
|
|
266,920
|
|
190,426
|
Cash flows from
investing activities:
|
|
|
|
|
Additions to property
and equipment
|
|
(84,636)
|
|
(65,138)
|
Acquisition of
franchisees, net of cash acquired
|
|
(26,264)
|
|
(424,940)
|
Proceeds from sale of
corporate-owned stores
|
|
ā
|
|
20,820
|
Proceeds from sale of
property and equipment
|
|
2
|
|
60
|
Purchases of
marketable securities
|
|
(155,007)
|
|
ā
|
Maturities of
marketable securities
|
|
37,990
|
|
ā
|
Other
investments
|
|
(20,000)
|
|
ā
|
Net cash used in
investing activities
|
|
(247,915)
|
|
(469,198)
|
Cash flows from
financing activities:
|
|
|
|
|
Principal payments on
capital lease obligations
|
|
(152)
|
|
(207)
|
Proceeds from issuance
of long-term debt
|
|
ā
|
|
900,000
|
Proceeds from issuance
of Variable Funding Notes
|
|
ā
|
|
75,000
|
Repayment of long-term
debt and Variable Funding Notes
|
|
(15,563)
|
|
(719,625)
|
Payment of financing
and other debt-related costs
|
|
ā
|
|
(15,951)
|
Proceeds from issuance
of Class A common stock
|
|
8,575
|
|
779
|
Repurchase and
retirement of Class A common stock
|
|
(125,030)
|
|
(94,314)
|
Distributions paid to
members of Pla-Fit Holdings
|
|
(4,216)
|
|
(2,945)
|
Net cash (used in)
provided by financing activities
|
|
(136,386)
|
|
142,737
|
Effects of exchange
rate changes on cash and cash equivalents
|
|
233
|
|
(729)
|
Net decrease in cash,
cash equivalents and restricted cash
|
|
(117,148)
|
|
(136,764)
|
Cash, cash equivalents
and restricted cash, beginning of period
|
|
472,499
|
|
603,941
|
Cash, cash equivalents
and restricted cash, end of period
|
|
$
355,351
|
|
$
467,177
|
Supplemental cash flow
information:
|
|
|
|
|
Net cash paid for
income taxes
|
|
$
4,394
|
|
$
3,072
|
Cash paid for
interest
|
|
$
60,964
|
|
$
60,535
|
Non-cash investing
& financing activities:
|
|
|
|
|
Non-cash additions to
property and equipment
|
|
$
20,590
|
|
$
11,566
|
Accrued taxes on share
repurchases
|
|
$
1,048
|
|
$
ā
|
Fair value of common
stock issued as consideration for acquisition
|
|
$
ā
|
|
$
393,730
|
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, acquisition transaction 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.
Planet Fitness, Inc. and
subsidiaries
|
Non-GAAP Financial Measures
(Unaudited)
|
(Amounts in
thousands, except per share amounts)
|
|
A reconciliation of
Adjusted EBITDA to net income, the most directly comparable GAAP
measure, is set forth below.
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
(in
thousands)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
|
|
$
41,324
|
|
$
30,677
|
|
$
110,272
|
|
$
74,124
|
Interest
income
|
|
(4,245)
|
|
(1,561)
|
|
(12,339)
|
|
(2,244)
|
Interest
expense(1)
|
|
21,704
|
|
21,917
|
|
64,771
|
|
66,527
|
Provision for income
taxes
|
|
13,474
|
|
15,661
|
|
38,855
|
|
35,942
|
Depreciation and
amortization
|
|
37,477
|
|
32,572
|
|
110,254
|
|
90,427
|
EBITDA
|
|
$
109,734
|
|
$
99,266
|
|
$
311,813
|
|
$
264,776
|
Purchase accounting
adjustments-revenue(2)
|
|
45
|
|
84
|
|
378
|
|
213
|
Purchase accounting
adjustments-rent(3)
|
|
173
|
|
109
|
|
461
|
|
328
|
Loss on reacquired
franchise rights(4)
|
|
ā
|
|
ā
|
|
110
|
|
1,160
|
Gain on settlement of
preexisting contract with acquiree(5)
|
|
ā
|
|
ā
|
|
ā
|
|
(2,059)
|
Transaction fees and
acquisition-related costs(6)
|
|
ā
|
|
396
|
|
394
|
|
5,344
|
(Gain) loss on
adjustment of allowance for credit losses
on held-to-maturity
investments(7)
|
|
(101)
|
|
273
|
|
(6)
|
|
(1,572)
|
Dividend income on
held-to-maturity investments(8)
|
|
(511)
|
|
(477)
|
|
(1,490)
|
|
(1,391)
|
Legal
matters(9)
|
|
ā
|
|
238
|
|
6,250
|
|
1,189
|
Tax benefit
arrangement remeasurement(10)
|
|
ā
|
|
(4,510)
|
|
ā
|
|
(8,381)
|
Gain on sale of
corporate-owned stores(11)
|
|
ā
|
|
(1,324)
|
|
ā
|
|
(1,324)
|
Executive transition
costs(12)
|
|
2,502
|
|
ā
|
|
3,722
|
|
ā
|
Other(13)
|
|
50
|
|
(153)
|
|
(590)
|
|
1,447
|
Adjusted
EBITDA
|
|
$
111,892
|
|
$
93,902
|
|
$
321,042
|
|
$
259,730
|
(1)
|
Includes a $1,583 loss
on extinguishment of debt in the nine months ended September 30,
2022.
|
(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 $41, $45, $123, and $135 in the three and nine
months ended September 30, 2023 and 2022, respectively, reflect the
difference between the higher rent expense recorded in accordance
with GAAP since the acquisition and the rent expense that would
have been recorded had the 2012 Acquisition not occurred.
Adjustments of $138, $65, $338, and $194 in the three and nine
months ended September 30, 2023 and 2022, respectively, are due to
the amortization of favorable and unfavorable leases. 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 ā Business
Combinations related to our acquisition of franchisee-owned stores.
The loss recorded under GAAP represents the difference between the
fair value and the contractual terms of the reacquired franchise
rights and is included in other losses (gains), net on our
consolidated statement of operations.
|
(5)
|
Represents a gain on
settlement of deferred revenue from existing contracts with
acquired franchisee-stores recorded in accordance with ASC 805 ā
Business Combinations, and is included in other losses (gains), net
on our consolidated statement of operations.
|
(6)
|
Represents transaction
fees and acquisition-related costs incurred in connection with our
acquisition of franchisee-owned stores.
|
(7)
|
Represents a (gain)
loss on the adjustment of the allowance for credit losses on the
Company's held-to-maturity investments.
|
(8)
|
Represents dividend
income on held-to-maturity investments.
|
(9)
|
Represents costs
associated with legal matters in which the Company is a defendant.
In connection with the summary of terms for a settlement agreement
that was agreed to between the Company and a franchisee in Mexico
(the "Preliminary Settlement Agreement"), the Company recorded an
estimated liability for the legal settlement of $8,550 as of
December 31, 2022, inclusive of estimated future legal fees. During
the second quarter of 2023, the Company revised its estimate of the
legal settlement and recorded an increase to the liability of
$6,250 during the nine months ended September 30, 2023 to $14,500,
net of legal fees paid. In the three and nine months ended
September 30, 2022, the amounts represent a reserve against an
indemnification receivable related to a legal matter.
|
(10)
|
Represents gains
related to the adjustment of our tax benefit arrangements primarily
due to changes in our deferred state tax rate.
|
(11)
|
Represents a gain on
the sale of corporate-owned stores.
|
(12)
|
Represents certain
severance and related expenses in the three and nine months ended
September 30, 2023 recorded in connection with the departure of the
Chief Executive Officer and in the nine months ended September 30,
2023, also includes severance expenses recorded in connection with
the elimination of the President and Chief Operating Officer
position.
|
(13)
|
Represents certain
other charges and gains that we do not believe reflect our
underlying business performance.
|
|
|
A reconciliation of
Segment EBITDA to Total Segment EBITDA is set forth
below.
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
(in
thousands)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Segment
EBITDA
|
|
|
|
|
|
|
|
|
Franchise
|
|
$
67,583
|
|
$
53,475
|
|
$
198,418
|
|
$
167,910
|
Corporate-owned
stores
|
|
44,264
|
|
40,446
|
|
126,499
|
|
103,287
|
Equipment
|
|
16,434
|
|
15,803
|
|
39,134
|
|
34,638
|
Corporate and
other
|
|
(18,547)
|
|
(10,458)
|
|
(52,238)
|
|
(41,059)
|
Total Segment
EBITDA(1)
|
|
$
109,734
|
|
$
99,266
|
|
$
311,813
|
|
$
264,776
|
(1)
|
Total Segment EBITDA is
equal to EBITDA.
|
|
|
Planet Fitness, Inc. and
subsidiaries
Non-GAAP Financial Measures
(Unaudited)
(Amounts in thousands, except
per share amounts)
Adjusted Net Income and Adjusted Net Income per Diluted
Share
Our presentation of Adjusted net income and Adjusted net income
per share, diluted, 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
September 30,
|
|
Nine months ended
September 30,
|
(in thousands,
except per share amounts)
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
|
|
$
41,324
|
|
$
30,677
|
|
$
110,272
|
|
$
74,124
|
Provision for income
taxes, as reported
|
|
13,474
|
|
15,661
|
|
38,855
|
|
35,942
|
Purchase accounting
adjustments-revenue(1)
|
|
45
|
|
84
|
|
378
|
|
213
|
Purchase accounting
adjustments-rent(2)
|
|
173
|
|
109
|
|
461
|
|
328
|
Loss on reacquired
franchise rights(3)
|
|
ā
|
|
ā
|
|
110
|
|
1,160
|
Gain on settlement of
preexisting contract with acquiree(4)
|
|
ā
|
|
ā
|
|
ā
|
|
(2,059)
|
Transaction fees and
acquisition-related costs(5)
|
|
ā
|
|
396
|
|
394
|
|
5,344
|
Loss on extinguishment
of debt(6)
|
|
ā
|
|
ā
|
|
ā
|
|
1,583
|
(Gain) loss on
adjustment of allowance for credit losses on held-to-maturity
investments(7)
|
|
(101)
|
|
273
|
|
(6)
|
|
(1,572)
|
Dividend income on
held-to-maturity investments(8)
|
|
(511)
|
|
(477)
|
|
(1,490)
|
|
(1,391)
|
Legal
matters(9)
|
|
ā
|
|
238
|
|
6,250
|
|
1,189
|
Tax benefit
arrangement remeasurement(10)
|
|
ā
|
|
(4,510)
|
|
ā
|
|
(8,381)
|
Gain on sale of
corporate-owned stores(11)
|
|
ā
|
|
(1,324)
|
|
ā
|
|
(1,324)
|
Executive transition
costs(12)
|
|
2,502
|
|
ā
|
|
3,722
|
|
ā
|
Other(13)
|
|
50
|
|
(153)
|
|
(590)
|
|
1,447
|
Purchase accounting
amortization(14)
|
|
12,954
|
|
10,611
|
|
38,485
|
|
29,644
|
Adjusted income before
income taxes
|
|
$
69,910
|
|
$
51,585
|
|
$
196,841
|
|
$
136,247
|
Adjusted income tax
expense(15)
|
|
18,107
|
|
13,361
|
|
50,982
|
|
35,288
|
Adjusted net
income(16)
|
|
$
51,803
|
|
$
38,224
|
|
$
145,859
|
|
$
100,959
|
|
|
|
|
|
|
|
|
|
Adjusted net income per
share, diluted
|
|
$
0.59
|
|
$
0.42
|
|
$
1.64
|
|
$
1.11
|
|
|
|
|
|
|
|
|
|
Adjusted
weighted-average shares outstanding
|
|
88,420
|
|
90,692
|
|
89,107
|
|
90,571
|
(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 805 ā Business 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 $41, $45, $123, and $135 in the three and nine
months ended September 30, 2023 and 2022, respectively, reflect the
difference between the higher rent expense recorded in accordance
with GAAP since the acquisition and the rent expense that would
have been recorded had the 2012 Acquisition not occurred.
Adjustments of $138, $65, $338, and $194 in the three and nine
months ended September 30, 2023 and 2022, respectively, are due to
the amortization of favorable and unfavorable leases. 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 ā Business
Combinations related to our acquisition of franchisee-owned stores.
The loss recorded under GAAP represents the difference between the
fair value and the contractual terms of the reacquired franchise
rights and is included in other losses (gains), net on our
consolidated statement of operations.
|
(4)
|
Represents a gain on
settlement of deferred revenue from existing contracts with
acquired franchisee-stores recorded in accordance with ASC 805 ā
Business Combinations, and is included in other losses (gains), net
on our consolidated statement of operations.
|
(5)
|
Represents transaction
fees and acquisition-related costs incurred in connection with our
acquisition of franchisee-owned stores.
|
(6)
|
Represents a loss on
extinguishment of debt in the nine months ended September 30,
2022.
|
(7)
|
Represents a (gain)
loss on the adjustment of the allowance for credit losses on the
Company's held-to-maturity investments.
|
(8)
|
Represents dividend
income on held-to-maturity investments.
|
(9)
|
Represents costs
associated with legal matters in which the Company is a defendant.
In connection with the summary of terms for a settlement agreement
that was agreed to between the Company and a franchisee in Mexico
(the "Preliminary Settlement Agreement"), the Company recorded an
estimated liability for the legal settlement of $8,550 as of
December 31, 2022, inclusive of estimated future legal fees. During
the second quarter of 2023, the Company revised its estimate of the
legal settlement and recorded an increase to the liability of
$6,250 during the nine months ended September 30, 2023 to $14,500,
net of legal fees paid. In the three and nine months ended
September 30, 2022, the amounts represent a reserve against an
indemnification receivable related to a legal matter.
|
(10)
|
Represents gains
related to the adjustment of our tax benefit arrangements primarily
due to changes in our deferred state tax rate.
|
(11)
|
Represents a gain on
the sale of corporate-owned stores.
|
(12)
|
Represents certain
severance and related expenses in the three and nine months ended
September 30, 2023 recorded in connection with the departure of the
Chief Executive Officer and in the nine months ended September 30,
2023, also includes severance expenses recorded in connection with
the elimination of the President and Chief Operating Officer
position.
|
(13)
|
Represents certain
other charges and gains that we do not believe reflect our
underlying business performance.
|
(14)
|
Includes $3,096,
$3,096, $9,288 and 9,288 of amortization of intangible assets, for
the three and nine months ended September 30, 2023 and 2022,
recorded in connection with the 2012 Acquisition, and $9,858,
$7,515, $29,197 and $20,357 of amortization of intangible assets
for the three and nine months ended September 30, 2023 and 2022,
respectively, recorded 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.
|
(15)
|
Represents corporate
income taxes at an assumed blended tax rate of 25.9% for both the
three and nine months ended September 30, 2023 and 2022, applied to
adjusted income before income taxes.
|
(16)
|
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.
|
|
|
Planet Fitness, Inc. and
subsidiaries
|
Non-GAAP Financial Measures
(Unaudited)
|
(Amounts in
thousands, except per share amounts)
|
|
A reconciliation of net
income per share, diluted, to Adjusted net income per share,
diluted is set forth below for the three and
nine months ended September 30, 2023 and 2022:
|
|
|
|
For the three months
ended
September 30,
2023
|
|
For the three months
ended
September 30,
2022
|
(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)
|
|
$ 39,134
|
|
84,886
|
|
$
0.46
|
|
$ 26,913
|
|
84,547
|
|
$
0.32
|
Assumed exchange of
shares(2)
|
|
2,190
|
|
3,534
|
|
|
|
3,764
|
|
6,145
|
|
|
Net income
|
|
41,324
|
|
|
|
|
|
30,677
|
|
|
|
|
Adjustments to arrive
at adjusted income
before
income taxes(3)
|
|
28,586
|
|
|
|
|
|
20,908
|
|
|
|
|
Adjusted income before
income taxes
|
|
69,910
|
|
|
|
|
|
51,585
|
|
|
|
|
Adjusted income tax
expense(4)
|
|
18,107
|
|
|
|
|
|
13,361
|
|
|
|
|
Adjusted net
income
|
|
$ 51,803
|
|
88,420
|
|
$
0.59
|
|
$ 38,224
|
|
90,692
|
|
$
0.42
|
(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 Class B common shares 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 blended tax rate of 25.9% for both the
three months ended September 30, 2023 and 2022, applied to adjusted
income before income taxes.
|
|
|
|
|
For the nine months
ended
September 30,
2023
|
|
For the nine months
ended
September 30,
2022
|
(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)
|
|
$
102,973
|
|
84,870
|
|
$
1.21
|
|
$ 65,719
|
|
84,798
|
|
$
0.78
|
Assumed exchange of
shares(2)
|
|
7,299
|
|
4,237
|
|
|
|
8,405
|
|
5,773
|
|
|
Net income
|
|
110,272
|
|
|
|
|
|
74,124
|
|
|
|
|
Adjustments to arrive
at adjusted
income before income taxes(3)
|
|
86,569
|
|
|
|
|
|
62,123
|
|
|
|
|
Adjusted income before
income taxes
|
|
196,841
|
|
|
|
|
|
136,247
|
|
|
|
|
Adjusted income tax
expense(4)
|
|
50,982
|
|
|
|
|
|
35,288
|
|
|
|
|
Adjusted net
income
|
|
$
145,859
|
|
89,107
|
|
$
1.64
|
|
$
100,959
|
|
90,571
|
|
$
1.11
|
(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 Class B common shares 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 blended tax rate of 25.9% for both the
nine months ended September 30, 2023 and 2022, applied to adjusted
income before income taxes.
|
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SOURCE Planet Fitness, Inc.