Planet Fitness(US:PLNT)2024-08-07 20:07Financial Performance - Total revenue for Q2 2024 reached $300,941, an increase of 5.2% compared to $286,463 in Q2 2023[11]. - Net income attributable to Planet Fitness, Inc. for Q2 2024 was $48,640, up 18.3% from $41,135 in Q2 2023[11]. - Basic net income per share for Q2 2024 was $0.56, compared to $0.49 in Q2 2023, reflecting an increase of 14.3%[11]. - Total operating costs and expenses for Q2 2024 were $213,562, a slight increase from $209,461 in Q2 2023[11]. - The company reported a total comprehensive income of $48,651 for Q2 2024, compared to $44,214 in Q2 2023, representing an increase of 10.5%[13]. - Net income for the period ending June 30, 2024, is reported at $49,312,000, reflecting a significant increase compared to previous periods[23]. - Net income for the six months ended June 30, 2024, was $84,285,000, an increase from $68,948,000 in the same period of 2023, representing a growth of approximately 22.1%[17]. - Adjusted net income for Q2 2024 reached $62,167 thousand, up 7.2% from $57,665 thousand in Q2 2023[112]. - Adjusted net income for the first half of 2024 was $109,427 thousand, a 16.3% rise from $94,056 thousand in the first half of 2023[115]. Assets and Liabilities - As of June 30, 2024, total assets increased to $2,974,040 thousand from $2,969,693 thousand as of December 31, 2023, reflecting a growth of approximately 0.15%[9]. - Cash and cash equivalents decreased to $246,961 thousand from $275,842 thousand, a decline of about 10.5%[9]. - Total current liabilities rose to $272,126 thousand compared to $251,329 thousand, marking an increase of approximately 8.3%[9]. - Long-term debt increased significantly to $2,156,551 thousand from $1,962,874 thousand, representing a rise of about 9.8%[9]. - The accumulated deficit grew to $(910,626) thousand from $(691,461) thousand, indicating an increase of approximately 31.7%[9]. - Total stockholders' deficit attributable to Planet Fitness, Inc. increased to $(317,664) thousand from $(115,649) thousand, a rise of approximately 174.5%[9]. - As of June 30, 2024, the total equity deficit stands at $319,830,000, with an accumulated deficit of $910,626,000[19]. - The total debt, net of deferred financing costs, was $2,177,051 as of June 30, 2024, compared to $1,983,624 as of December 31, 2023[53]. Revenue Segments - Total revenue from corporate-owned stores for Q2 2024 was $125,466, up 10.3% from $113,759 in Q2 2023[11]. - Franchise segment revenue in the U.S. for Q2 2024 was $104,541, up 8.8% from $96,337 in Q2 2023[85]. - Corporate-owned stores segment revenue in the U.S. for Q2 2024 was $124,187, an increase of 10.4% from $112,618 in Q2 2023[85]. - Franchise segment revenue increased to $107,790,000 for the three months ended June 30, 2024, up 9.9% from $98,842,000 in the prior year[97]. - Corporate-owned stores segment revenue increased to $125,466,000 for the three months ended June 30, 2024, compared to $113,759,000 in the same period of 2023, reflecting a growth of 10.5%[97]. Membership and Store Growth - As of June 30, 2024, Planet Fitness has approximately 19.7 million members and operates 2,617 locations across various regions[26]. - The number of franchisee-owned stores increased to 2,358 as of June 30, 2024, from 2,230 a year earlier, marking a growth of 5.7%[95]. - Corporate-owned stores increased to 259 as of June 30, 2024, from 242 a year earlier, representing a growth of 7.0%[95]. - Planet Fitness opened 18 new stores in the three months ended June 30, 2024, compared to 26 new stores in the same period of 2023[100]. - The company had contractual commitments to open approximately 1,000 new stores as of June 30, 2024[95]. Cash Flow and Investments - Cash flows from operating activities for the first six months of 2024 were $167,948, compared to $157,330 in the same period of 2023, indicating a growth of 6.5%[17]. - The company reported a net cash used in investing activities of $90,436,000 for the six months ended June 30, 2024, a significant decrease from $201,021,000 in the prior year, indicating improved cash management[17]. - The company issued $800,000,000 in long-term debt during the six months ended June 30, 2024, to support its financing activities[17]. - Net cash provided by operating activities increased to $167,948,000 for the six months ended June 30, 2024, compared to $157,330,000 for the same period in 2023, reflecting a rise of about 6.5%[17]. Strategic Initiatives - The company is focused on expanding its franchise model, which is critical for revenue growth and operational profitability[5]. - Future growth strategies include new store development by existing and new franchisees, which is essential for increasing revenues and operating profits[5]. - The company anticipates continued growth through new store development and strategic partnerships, despite potential risks associated with competition and market conditions[4]. Accounting and Compliance - The company is evaluating the impact of new accounting standards effective after December 15, 2023, on its financial disclosures[34]. - The company was in compliance with its debt covenants as of June 30, 2024, with no material changes to debt obligations during the period[154].