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Planet Fitness, Inc. Pumps Up Full-Year Outlook

Image source: Planet Fitness.

Planet Fitness (NYSE:PLNT) reported first-quarter results on May 10. The fitness center operator is attracting thousands of new customers as it rapidly expands its store base.

Planet Fitness results: The raw numbers


Q1 2016

Q1 2015

Growth (YOY)


$83.343 million

$76.922 million


Adjusted net income

$15.175 million

$12.595 million


Adjusted EPS




What happened with Planet Fitness this quarter?

Planet Fitness opened 48 new franchise stores in the fourth quarter, bringing its total store count to 1,171 as of March 31, 2016. The company also experienced a 6.8% increase in systemwide same-store sales. Together, that helped drive an 8.3% year-over-year increase in total revenue to $83.3 million.

EBITDA (earnings before interest, taxes, depreciation, and amortization) -- adjusted to exclude acquisition and IPO-related costs and other special items -- rose 20.4% to $34.3 million.

On a segment-by-segment basis, franchise EBITDA soared 75.4% to $23.8 million, driven by royalties from new stores, higher same-store sales from existing stores, and overall margin expansion. EBITDA for Planet Fitness' corporate-owned stores jumped 30.3% to $10.2 million, and was also driven primarily by new store openings. However, equipment segment EBITDA fell 6.6% to $6.3 million, due to lower overall sales.

All told, pro forma adjusted net income -- a non-GAAP metric that helps to make Planet Fitness' results more comparable by treating it as though it were a public company in the prior-year period --...