PLNT - Planet Fitness misses Q1 estimates but backs full-year guidance

2023-05-04 06:50:03 ET

Planet Fitness ( NYSE: PLNT ) reports system-wide same store sales increased by 9.9% in Q1 to edge past the consensus estimate of +9.0%.

Franchise segment revenue increased 15.7% to $92.7M and corporate-owned stores segment revenue increased 39.0% to $105.9M. Equipment segment revenue decreased 22.3% to $23.7M.

Adjusted EBITDA rose to $90.2M from $76.7M a year ago.

The gym chain opened up 36 new stores during the period, bringing system-wide total stores to 2,446 at the end of the quarter.

CEO update: "Our brand's resiliency despite inflation and other macroeconomic factors was apparent in our first quarter member trends, with all generational groups back to pre-pandemic population penetration levels, a continued overall lower cancellation rate, as well as our perks program offering even more value with discounts to help our members offset increased pricing on everyday items. We believe we are financially well-positioned to invest in growth areas, such as technology and a small dedicated international team, while also returning cash to shareholders, including the $50 million in shares repurchased year-to-date."

Looking ahead, PLNT expects 2023 revenue to increase in the 13% to 14% range, adjusted EBITDA to increase in the 17% to 18% range, and adjusted net income to increase in the 30% to 33% range.

Shares of Planet Fitness ( PLNT ) dipped 0.45% in premarket action on Thursday.

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