Planet Fitness(PLNT) - 2023 Q1 - Quarterly Report

Membership and Store Growth - As of March 31, 2023, Planet Fitness had over 18.1 million members and 2,446 stores across various regions, including the U.S., Canada, and Australia[128] - The company opened 36 new stores during the three months ended March 31, 2023, compared to 37 new stores in the same period of 2022[135] - Planet Fitness had commitments to open more than 1,000 new stores under existing agreements, indicating strong future growth potential[128] - The number of franchisee-owned stores increased to 2,211 as of March 31, 2023, from 2,062 a year earlier, demonstrating effective expansion strategies[135] Financial Performance - Total revenue for the three months ended March 31, 2023, was $222.2 million, a 19.0$186.7 million in the same period of 2022[130] - Net income for the three months ended March 31, 2023, was $24,769,000, compared to$18,376,000 for the same period in 2022, representing a year-over-year increase of 35.0%[149] - Adjusted net income for the three months ended March 31, 2023, was $36,391,000, compared to$28,548,000 in the prior year, indicating a 27.5% increase[149] - Net income attributable to Planet Fitness, Inc. was $22.7 million, an increase from$16.5 million in the prior year, reflecting a net income margin of 10.4%[158] Revenue Breakdown - Franchise revenue increased to $75.9 million, up$9.8 million or 14.8% from $66.1 million in the prior year, driven by a same-store sales increase of 9.7$105.9 million, a 39.0% increase from $76.2 million, with$23.5 million attributed to the acquisition of 114 stores[162] - Equipment segment revenue decreased to $23.7 million, down$6.8 million or 22.3% due to lower equipment sales to new franchisee-owned stores[163] EBITDA and Operational Efficiency - Segment EBITDA for the Franchise segment was $64.7 million, up from$60.1 million year-over-year, while Corporate-owned stores segment EBITDA increased to $33.5 million from$23.4 million[130] - EBITDA for the three months ended March 31, 2023, was $88.0 million, an increase from$78.2 million in the same period of 2022, highlighting improved operational efficiency[130] - Adjusted EBITDA for Q1 2023 was $90,211,000, up from$76,687,000 in Q1 2022, reflecting a growth of 17.6%[149] Cash Flow and Capital Expenditures - For the three months ended March 31, 2023, net cash provided by operating activities was $97.9 million, an increase of$39.9 million compared to $58.0 million in the same period of 2022[183] - Net cash used in investing activities decreased to$23.0 million from $449.7 million in the prior year, primarily due to a$425.8 million cash outflow for the Sunshine Acquisition in the previous period[184] - Total capital expenditures for the three months ended March 31, 2023, were $22.997 million, slightly down from$23.872 million in the same period of 2022[184] Legal and Financial Liabilities - The company recorded a legal liability increase of $3,300,000 related to a settlement agreement, bringing the total estimated liability to$11,850,000 as of March 31, 2023[147] - Interest expense for Q1 2023 was $21,599,000, slightly down from$22,631,000 in Q1 2022, showing a decrease of 4.6%[149] - The provision for income taxes was $9,567,000 in Q1 2023, compared to$11,711,000 in Q1 2022, representing a decrease of 18.3%[149] Market and Economic Conditions - Future operating performance and ability to service debt will be influenced by economic conditions and various uncontrollable factors[180] - The company is exposed to foreign exchange fluctuations, particularly with the Canadian dollar, Mexican peso, and Australian dollar, but a 10% change in exchange rates would have a negligible impact on net income[192]