Planet Fitness (NYSE:PLNT) reported its first-quarter financial results on May 2. The gym chain’s welcoming concept continues to prove popular with fitness buffs and franchisees alike, fueling strong growth in revenue and earnings.
Planet Fitness results: The raw numbers
|Metric||Q1 2019||Q1 2018||Year-Over-Year Change|
|Revenue||$148.8 million||$121.3 million||22.7%|
|Net income||$27.4 million||$19.9 million||37.7%|
|Earnings per share||$0.32||$0.23||39%|
What happened this quarter?
Planet Fitness’ revenue jumped 22.7% year over year to $148.8 million last quarter, driven by a powerful combination of new store openings and surging same-store sales. New members are flocking to the company’s “judgment-free” gyms. Systemwide same-store sales increased a staggering 10.2% in Q1.
Impressively, this comp growth is occurring even as Planet Fitness expands at a rapid clip. The company opened 65 new gyms during the quarter and a total of 241 locations over the past 12 months, bringing its total store count to more than 1,800.
“The Planet Fitness brand continues to gain momentum and our system continues to expand,” CEO Chris Rondeau said during a conference call with analysts. “Our group of experienced franchisees are bullish on aggressive but thoughtful expansion in both new and existing markets, fulfilling our shared mission of bringing non-intimidating affordable and accessible fitness to all.”
Better still, Planet Fitness is becoming more profitable as it expands. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed 29.9% to $63.4 million last quarter. Adjusted net income increased by 24.9% to $32.7 million. And adjusted earnings per share leapt 30% to $0.35, due in part to stock buybacks.
“We once again demonstrated the attractiveness of our high value, low cost welcoming fitness concept and the power of our business model with our diversified revenue streams and strong free cash flow,” Rondeau said.
Planet Fitness also reiterated its 2019 full-year guidance. Management continues to expect:
- Total revenue growth of approximately 15%
- High-single-digit systemwide same-store sales growth
- Adjusted net income growth of approximately 18%
- Adjusted earnings-per-share growth of approximately 25%
“As we move forward, we believe we can continue to deliver significant growth and increased shareholder value through robust unit expansion, increased national and local advertising spending, and membership enhancement initiatives,” Rondeau said.