Core Insights - Planet Fitness shares declined due to 2025 projections overshadowing a strong fourth quarter performance [1][4] - The company reported an adjusted earnings per share (EPS) of $0.70 for Q4 2024, with revenue of $340.45 million, both showing year-over-year growth and exceeding analyst expectations [1][4] Financial Performance - For Q4 2024, Planet Fitness achieved a same club sales growth of 5.5%, surpassing the anticipated 4.84% [1] - The company forecasts approximately 10% revenue growth for 2025, projecting revenue to reach about $1.3 billion, slightly above analyst consensus [2] - Adjusted EPS is expected to grow by 11% to 12%, while same club sales are projected to increase by 5% to 6% in 2025, both slightly below current analyst projections [2] Market Reaction - Following the unexpected departure of its CEO in September 2023, Planet Fitness shares have rebounded, hitting a record high in late January 2024 [3] - Despite the recent decline of over 8% in share price, it remains more than 40% higher than a year ago [3]

Planet Fitness Inc. (NYSE:PLNT) Q4 2024 Earnings Conference Call February 25, 2025 8:00 AM ET Company Participants Colleen Keating - Chief Executive Officer Jay Stasz - Chief Financial Officer Stacey Caravella - Vice President, Investor Relations Conference Call Participants Simeon Siegel - BMO Capital Markets Randal Konik - Jefferies Sharon Zackfia - William Blair Joe Altobello - Raymond James Rahul Krotthapalli - JP Morgan John Heinbockel - Guggenheim Partners Max Rakhlenko - TD Cowen Jonathan Komp - Bair ...

Core Insights - Planet Fitness reported revenue of $340.45 million for the quarter ended December 2024, marking a year-over-year increase of 19.4% and exceeding the Zacks Consensus Estimate by 4.24% [1] - The earnings per share (EPS) for the same period was $0.70, up from $0.60 a year ago, representing a surprise of 12.90% over the consensus estimate of $0.62 [1] Financial Performance Metrics - Total stores at the end of the period reached 2,722, slightly above the average estimate of 2,720 [4] - Same-store sales increased by 5.5%, surpassing the estimated 4.8% [4] - Corporate-owned same-store sales were reported at 4.4%, below the estimated 4.8% [4] - New stores opened totaled 86, exceeding the estimate of 81 [4] - Franchisee-owned same-store sales grew by 5.7%, above the average estimate of 4.7% [4] Revenue Breakdown - Revenue from the national advertising fund was $19.49 million, slightly below the estimate of $19.58 million, but reflecting a year-over-year increase of 10.5% [4] - Franchise revenue was reported at $89.54 million, below the estimate of $90.60 million, with an 11.1% year-over-year increase [4] - Equipment segment revenue reached $105.12 million, significantly above the average estimate of $86.99 million, representing a 49.2% year-over-year increase [4] - Corporate-owned stores segment revenue was $126.31 million, below the estimate of $130.83 million, with an 8.5% year-over-year increase [4] - Franchise segment revenue was $109.02 million, slightly below the estimate of $109.70 million, with an 11% year-over-year increase [4] Stock Performance - Planet Fitness shares have returned -4.1% over the past month, compared to the Zacks S&P 500 composite's -1.8% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Planet Fitness reported quarterly earnings of $0.70 per share, exceeding the Zacks Consensus Estimate of $0.62 per share, and showing an increase from $0.60 per share a year ago, resulting in an earnings surprise of 12.90% [1] - The company generated revenues of $340.45 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 4.24% and up from $285.09 million year-over-year [2] - Planet Fitness has consistently outperformed consensus EPS estimates over the last four quarters, achieving this four times [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.64 on revenues of $288.35 million, while for the current fiscal year, the estimate is $2.94 on revenues of $1.29 billion [7] - The estimate revisions trend for Planet Fitness is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Leisure and Recreation Services industry, to which Planet Fitness belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook for stocks in this sector [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Total revenue for the fiscal year increased by 10.3% to $1.2 billion from $1.1 billion[5] - Adjusted net income for the fiscal year rose by 12.4% to $223.8 million, or $2.59 per diluted share[11] - Net income attributable to Planet Fitness, Inc. for the year ended December 31, 2024, was $172.042 million, up 24.3% from $138.313 million in 2023[23] - Net income for the year ended December 31, 2024, increased to $174,243,000, up from $147,035,000 in 2023, representing an increase of 18.5%[27] - Adjusted EBITDA for the year ended December 31, 2024, was $487,710,000, compared to $435,376,000 in 2023, reflecting a growth of 12.0%[34] - Adjusted net income for the year 2024 was $223,754,000, up 12.5% from $199,009,000 in 2023[40] - Adjusted net income per share, diluted, increased to $2.59 in 2024 from $2.24 in 2023, representing a 15.6% growth[40] Membership and Club Growth - Net membership growth reached 1 million since the end of 2023, totaling 19.7 million members[4] - Membership count reached approximately 19.7 million as of December 31, 2024, with 2,722 clubs operating across various regions[20] - 150 new Planet Fitness clubs were opened in 2024, bringing the total to 2,722[5] - The company plans to open approximately 160 to 170 new locations in 2025[14] - System-wide same club sales growth is projected to be in the range of 5% to 6% for 2025[14] Sales Performance - Full-year system-wide same club sales increased by 5.0%[1] - Same club sales increased year-over-year, reflecting strong performance in both corporate-owned and franchisee-owned clubs[18] Cash Flow and Assets - Cash and cash equivalents increased to $293.150 million as of December 31, 2024, compared to $275.842 million in 2023[25] - Total assets grew to $3,069.708 million as of December 31, 2024, from $2,969.693 million in 2023[25] - Cash flows from operating activities for 2024 were $343,873,000, an increase from $330,254,000 in 2023, indicating a rise of 4.3%[27] - Cash, cash equivalents, and restricted cash at the end of the period increased to $349,674,000 from $322,121,000, a rise of 8.6%[27] Debt and Expenditures - Long-term debt increased to $2,148.029 million as of December 31, 2024, compared to $1,962.874 million in 2023[25] - The company issued $800,000,000 in long-term debt during 2024, compared to no issuance in 2023[27] - Capital expenditures are expected to increase by approximately 25% in 2025[12] Future Outlook - For 2025, the company expects revenue to increase by approximately 10% and adjusted EBITDA to also increase by approximately 10%[12] - The company plans to hold an investor conference call on February 25, 2025, to discuss future performance and strategies[19] - Forward-looking statements indicate expectations for continued membership and club growth, alongside potential risks in the fitness industry[21] Segment Performance - The franchise segment's Adjusted EBITDA for 2024 was $301,122,000, up from $273,008,000 in 2023, marking an increase of 10.3%[34] - The corporate-owned clubs segment reported Adjusted EBITDA of $188,751,000 for 2024, compared to $173,322,000 in 2023, a growth of 8.9%[34] - The equipment segment's Adjusted EBITDA surged to $71,778,000 in 2024, up from $56,362,000 in 2023, representing a significant increase of 27.4%[34] Stock and Shareholder Actions - The company repurchased and retired $300,205,000 of Class A common stock in 2024, compared to $125,030,000 in 2023, an increase of 140.0%[27] Tax and Other Financial Metrics - The company reported a provision for income taxes of $68,443,000 for the year 2024, up from $58,512,000 in 2023, indicating a 16.0% rise[38] - The company reported adjusted income taxes of $78,163,000 for the year 2024, compared to $69,559,000 in 2023, marking a 12.0% increase[40] - The company incurred $10,918,000 in purchase accounting amortization for Q4 2024, down from $12,955,000 in Q4 2023[38] - The loss on adjustment of allowance for credit losses on held-to-maturity investment was $297,000 in Q4 2024, significantly lower than $2,738,000 in Q4 2023[38]

Core Insights - Planet Fitness reported a strong performance in 2024, achieving a net membership growth of 1 million, totaling 19.7 million members by year-end [4][18] - The company opened 150 new clubs in 2024, contributing to a total of 2,722 clubs as of December 31, 2024 [4][8] - Revenue growth exceeded 10%, with total revenue reaching $1.2 billion, a 10.3% increase from the previous year [8][10] Fourth Quarter Highlights - Total revenue for Q4 2024 increased by $55.4 million, or 19.4%, to $340.5 million compared to $285.1 million in Q4 2023 [5][8] - System-wide same club sales grew by 5.5% in Q4 2024 [5][8] - Net income attributable to Planet Fitness, Inc. was $47.1 million, or $0.56 per diluted share, compared to $35.3 million, or $0.41 per diluted share, in the prior year [8][21] Fiscal Year Highlights - For the fiscal year 2024, net income attributable to Planet Fitness, Inc. was $172.0 million, or $2.00 per diluted share, up from $138.3 million, or $1.62 per diluted share, in 2023 [10][21] - Adjusted net income increased by 12.4% to $223.8 million, or $2.59 per diluted share, compared to $199.0 million, or $2.24 per diluted share, in the prior year [10][21] - Adjusted EBITDA rose by $52.3 million to $487.7 million from $435.4 million in the previous year [10][21] Segment Performance - Franchise segment revenue increased by $10.8 million, or 11.0%, to $109.0 million in Q4 2024 [9][20] - Corporate-owned clubs segment revenue grew by $9.9 million, or 8.5%, to $126.3 million in Q4 2024 [9][20] - Equipment segment revenue surged by $34.7 million, or 49.2%, to $105.1 million in Q4 2024, driven by higher sales to existing franchisee-owned clubs [9][20] 2025 Outlook - The company anticipates continued growth in 2025, expecting revenue to increase by approximately 10% and adjusted EBITDA to rise by about 10% [11][14] - Projected same club sales growth is expected to be in the range of 5% to 6% [14] - The company plans to open approximately 160 to 170 new clubs in 2025 [14]

Core Viewpoint - Planet Fitness is expected to report quarterly earnings of $0.62 per share, a 3.3% increase year-over-year, with revenues projected at $326.64 million, reflecting a 14.6% year-over-year growth [1]. Earnings Projections - There has been a downward revision of 1.6% in the consensus EPS estimate over the last 30 days, indicating analysts' reassessment of their initial forecasts [2]. - Changes in earnings projections are crucial for predicting investor reactions, as empirical studies show a strong correlation between earnings estimate trends and short-term stock price movements [3]. Revenue Estimates - Analysts forecast the 'Revenue- National advertising fund' to reach $19.58 million, indicating an 11.1% year-over-year increase [5]. - The 'Revenue- Franchise' is expected to be $90.60 million, reflecting a 12.4% year-over-year change [5]. - The 'Revenue- Equipment segment' is projected to reach $86.99 million, showing a significant 23.5% year-over-year increase [5]. - The 'Revenue- Corporate-owned stores segment' is estimated at $130.83 million, also indicating a 12.4% year-over-year growth [6]. Same-store Sales and Store Metrics - Same-store sales are predicted to be 4.8%, down from 7.7% in the same quarter last year [6]. - The consensus estimate for 'Total Stores - End of period' is 2,720, compared to 2,575 in the same quarter last year [6]. - 'EOP Franchise Stores' are expected to reach 2,441, up from 2,319 a year ago [7]. - 'EOP Corporate Stores' is projected at 279, compared to 256 last year [7]. - 'Corporate-owned same store sales' is expected to be 4.8%, down from 8.7% year-over-year [7]. - 'Total Stores - New stores opened' is estimated at 81, compared to 77 last year [8]. - 'Franchisee-owned same store sales' is expected to be 4.7%, down from 7.6% year-over-year [8]. - The average prediction for 'Total Stores - Beginning of period' is 2,638, compared to 2,410 last year [8]. Stock Performance - Planet Fitness shares have returned -6% over the past month, contrasting with the Zacks S&P 500 composite's +2.6% change [8]. - With a Zacks Rank 3 (Hold), Planet Fitness is expected to perform in line with the overall market in the near future [8].

Core Viewpoint - Planet Fitness is realigning its leadership team to support strategic growth initiatives and enhance operational efficiency, with new appointments effective March 3, 2025 [1][2][5]. Leadership Changes - Bill Bode will transition to the Chief Operating Officer role, overseeing operations for both franchise and corporate clubs, and has been with the company for 8 years [1][2]. - Jennifer Simmons will take on the Chief Strategy Officer role, focusing on a data-driven approach to support strategic imperatives and identify emerging trends, having been with the company for 11 years [3][2]. - Chip Ohlsson joins as Chief Development Officer, concentrating on strategic growth initiatives, while Brian Povinelli becomes Chief Marketing Officer, responsible for global marketing efforts [4][5]. Strategic Focus - The company aims to redefine its brand, enhance member experience, refine its product offerings, and accelerate club openings to drive growth in 2025 and beyond [5]. - The management team restructuring is intended to capitalize on efficiencies and leverage leader expertise to promote key growth drivers, including members and clubs [5]. Company Overview - As of December 31, 2024, Planet Fitness had approximately 19.7 million members and 2,722 clubs across various locations, including the U.S., Canada, and several other countries [7]. - The company's mission is to provide a high-quality fitness experience in a welcoming environment, known as the Judgement Free Zone® [7].

Core Insights - Planet Fitness, Inc. has achieved a new 52-week high stock price of $105.77, reflecting a 3.1% increase from the previous day's closing price of $101.55 [1] - The company is focused on redefining its brand and enhancing member experiences as it moves into 2025, supported by new leadership appointments [2] - Over the past year, Planet Fitness stock has surged 40.8%, significantly outperforming the Zacks Leisure and Recreation Services industry growth of 18.8% [3] Operational Metrics - The company reported a membership base of approximately 19.7 million as of December 31, 2024, with same-club sales growing 5% year over year [9] - In 2024, Planet Fitness opened 150 new clubs, increasing the total number of clubs to 2,722 [10] - The long-term goal is to reach 5,000 clubs in the United States, focusing on both traditional and smaller footprint locations [11] Growth Strategies - Planet Fitness has introduced a new growth model aimed at enhancing long-term expansion and operational efficiency, reducing capital requirements for franchises [6][7] - The company implemented targeted pricing strategies, raising the Classic Card membership price from $10 to $15 for new members, which is expected to yield long-term revenue benefits [8] - The Zacks Consensus Estimate for Planet Fitness' 2025 earnings per share indicates a 17.2% year-over-year growth [15] Market Performance - The stock is currently trading above both the 50-day and 200-day simple moving averages, indicating a bullish trend and positive market sentiment [12] - Planet Fitness has outperformed competitors such as Xponential Fitness, OneSpaWorld, and Vail Resorts over the past year [5] Strategic Focus - The company is sharpening its focus on brand redefinition, member experience enhancement, and accelerating club openings, which are expected to drive growth and shareholder value [16]

Planet Fitness, Inc. (PLNT) , one of the largest and fastest-growing franchisors and operators of fitness centers, revealed key operational metrics for 2024-end. Following this announcement, shares of PLTN gained 0.1% during the trading session and 3.1% in after-hours trading yesterday.The company plans to release its full fiscal year results and provide a 2025 outlook on Feb. 25, 2025.PLNT’s 2024 Performance Highlights & Strategic InitiativesThe company reported solid results for 2024, meeting growth objec ...