PLNT - Planet Fitness Q2 down 8.4% after topline misses estimates

• Planet Fitness ( NYSE: PLNT ) Q2 revenue jumped 63% Y/Y to $224.4M, missing consensus by $5.73M.
• Bifurcating revenue: Franchise segment revenue increased 13.3% to $82.5M.
• Segment wise EBITDA: Franchise segment EBITDA increased $2.6M to $54.3M; Corporate-owned stores segment EBITDA increased $29.1M to $39.5M; Equipment segment EBITDA increased by $4.6M to $10.2M.
• Corporate-owned stores segment revenue increased 150% to $101.5M; Equipment segment revenue increased 69.8% to $40.4M.
• System-wide same store sales increased 13.6% to $1,019M.
• 34 new Planet Fitness stores were opened during the period, bringing system-wide total stores to 2,324 as of June 30, 2022.
• Repaid in full its $75M of borrowings under our variable funding notes using cash on hand.
• Cash of $446.3M, which includes cash and cash equivalents of $383.5M and restricted cash of $62.8M.
• Non-GAAP EPS of $0.38 in-line with estimates.
• 2022 Outlook: New equipment placements of approximately 170 in franchisee-owned locations; System-wide same store sales in the low double-digit percentage range.
• 2022 growth expectations : Revenue to increase in the mid-50% range; Adjusted EBITDA to increase in the high-50% range; Adjusted Net Income to increase in the low-90% range. Adjusted EPS to increase in the mid-80% range.
• Company now expects 2022 net interest expense to be ~$86M as a result of its recent debt refinancing and upsizing.
• Ratings over the last few months: 'Harley Davidson, Planet Fitness picked as resilient recession stocks by BofA '; ' Planet Fitness could still be fit in an economic downturn - Jefferies '
• Author gives a Buy rating to the stock and writes: ' Planet Fitness: Get Rich On Entertainment '
• Overall SA Authors gives the stock a Buy rating with 4.00 .
• Sell-side analyst give the stock a Buy rating with 4.44 score with average price target $94.31.
• Quant rating of Hold with 3.23 and gives lowest factor grades to valuation.
• Previously (Aug. 9): Planet Fitness Non-GAAP EPS of $0.38 in-line, revenue of $224.4M misses by $5.73M

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