Planet Fitness(PLNT) - 2024 Q4 - Annual Results

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]