Planet Fitness suggested its first-zone economic consequences on May 2. The gymnasium chain’s welcoming idea continues to show famous with health buffs and franchisees alike, fueling strong sales and income growth.
Planet Fitness’ revenue jumped 22.7% 12 months over 12 months to $148.Eight million remaining zone, pushed by way of an effective combination of new shop openings and surging same-shop income. New individuals are flocking to the corporation’s “judgment-unfastened” gyms. Systemwide equal-shop income elevated a brilliant 10.2% in Q1.
Impressively, this comp increase is occurring while Planet Fitness expands at a fast clip. The business enterprise opened 65 new gyms at some point in the area and a total of 241 places during the last 12 months, bringing its general shop matter to an extra than 1,800.
“The Planet Fitness logo keeps to benefit momentum, and our gadget maintains to extend,” CEO Chris Rondeau stated throughout a convention name with analysts. “Our group of skilled franchisees is bullish on competitive however considerate expansion in both new and existing markets, fulfilling our shared assignment of bringing non-intimidating low cost and reachable health to all.”
Better nevertheless, Planet Fitness is turning more profitable as it expands. Adjusted EBITDA (income before hobby, taxes, depreciation, and amortization) climbed 29.9% to $ sixty-three—four million ultimate zones. Adjusted internet profits elevated using 24—Nine% to $32.7 million. According to share, adjusted profits leaped 30% to $0.35 due in element to inventory buybacks.
“We yet again established the splendor of our excessive price, low fee welcoming fitness idea and the electricity of our commercial enterprise model with our various sales streams and sturdy free cash waft,” Rondeau said.
Planet Fitness also reiterated its 2019 full-yr steering. Management continues to anticipate:
Total revenue increase of approximately 15%
High-unmarried-digit systemwide same-keep income boom
Adjusted internet income increase of approximately 18%
Adjusted profits-in line with-percentage boom of about 25%
“As we circulate ahead, we trust we will retain to supply extensive growth and accelerated shareholder value through strong unit growth, extended countrywide and nearby advertising spending, and membership enhancement initiatives,” Rondeau said.
My call is Christine, and I’ll be your convention operator nowadays. At this time, I would really like to welcome anyone to the Planet Fitness First Quarter 2019 Earnings Call. All traces have been positioned on mute to prevent any background noise. After the speakers’ feedback, there could be a query-and-answer session. (Operator Instructions) Thank you.
Brendon Frey from ICR. You may also begin your convention.
Brendon Frey — Managing Director
Thank you for becoming a member of us these days to discuss Planet Fitness’s first quarter 2019 earnings consequences. On state-of-the-art call are Chris Rondeau, Chief Executive Officer; and Dorvin Lively, President and Chief Financial Officer. A copy of the modern-day press release is available at the Investor Relations phase of Planet Fitness’ internet site at planetfitness.Com.
I would love to remind you that sure statements we will make on this presentation are forward-looking statements. These forward-looking statements reflect Planet Fitness’s judgment and analysis best as of these days. Real outcomes may also vary materially from contemporary expectancies based on several things affecting Planet Fitness’ commercial enterprise. Accordingly, you ought not to area undue reliance on these forward-looking statements. For an extra thorough dialogue of the dangers and uncertainties associated with the forward-looking statements to be made on this convention name and webcast, we refer you to the disclaimer regarding ahead-looking statements included in our first quarter 2019 income release, which changed into provided to the SEC these days on Form 8-K, as well as our filings with the SEC referenced in that disclaimer. We no longer adopt any responsibility to update or regulate any forward-searching statements, whether as a result of recent records, future activities, or otherwise.
Also, the Company may refer to certain adjusted non-GAAP metrics in this name. Explanation of those metrics may be located in the profits launch filed earlier these days.
With that, I’ll turn the call over to Chris Rondeau, Chief Executive Officer of Planet Fitness. Chris?