PLNT - Planet Fitness beats Q2 top and bottom line estimates; reaffirms FY23 outlook

2023-08-03 06:51:23 ET

• Planet Fitness press release ( NYSE: PLNT ): Q2 Non-GAAP EPS of $0.65 beats by $0.10 .
• Revenue of $286.5M (+27.7% Y/Y) beats by $34.52M .
• Adjusted EBITDA increased $29.8 million to $118.9 million from $89.1 million in the prior year period.
• Cash, cash equivalents and marketable securities of $418.9 million, which includes cash and cash equivalents of $236.1 million, marketable securities of $120.3 million and restricted cash of $62.5 million.
• System-wide same store sales increased by 8.7%.

• 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 approximately 140 in franchisee-owned locations (previously it expected approximately 160)
  • It now expects system-wide new store openings of approximately 160 locations
  • 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 12% vs. estimated growth of 12.44% Y/Y (previously it expected 13% to 14% growth)
  • It now expects Adjusted EBITDA to increase approximately 17% (previously it expected 17% to 18% growth)
  • It now expects Adjusted net income to increase approximately 30% (previously it expected 30% to 33% growth)
  • It now expects Adjusted earnings per share to increase approximately 34% (previously it expected 33% to 36% growth) vs. consensus of $2.16, based on Adjusted diluted shares outstanding of approximately 89 million, inclusive of the nearly 1.7 million shares repurchased through June 30, 2023.

  The Company now expects 2023 net interest expense to be in the low $70 million range (previously it expected $75 million). It now expects capital expenditures to increase approximately 40% (previously it expected mid-30% range) and now expects depreciation and amortization to increase in the high-teens percentage range (previously it expected the mid-teens percentage range).

For further details see: