Planet Fitness (PLNT) Q2 Earnings & Revenues Top Estimates

Core Insights - Planet Fitness, Inc. reported strong second-quarter 2024 results, with adjusted earnings and revenues exceeding expectations and showing year-over-year growth [1][3] - The company's performance was bolstered by new store openings, increased royalty revenues, and an asset-light growth model, contributing to a rise in system-wide same-store sales [1][3] Earnings & Revenue Discussion - Adjusted earnings per share (EPS) reached 71 cents, surpassing the Zacks Consensus Estimate of 65 cents by 9.2%, and increased from 65 cents in the prior-year quarter [3] - Quarterly revenues amounted to $300.9 million, exceeding the consensus mark of $292 million by 2.9%, and improved 5.1% year over year, driven by a 4.2% increase in system-wide same-store sales [3] - Adjusted EBITDA was reported at $127.5 million, up from $118.9 million in the same quarter last year [4] Segmental Performance - Franchise segment revenues increased by 9.1% year over year to $107.8 million, driven by a $6.3 million rise in royalty revenues and contributions from new stores [5] - Corporate-owned stores generated revenues of $125.5 million, a 10.3% increase from $113.8 million in the prior year, attributed to new store openings and acquisitions [6] - Equipment segment revenues totaled $67.7 million, down 8.4% year over year, primarily due to lower sales to both new and existing franchisee-owned stores [7] Other Financial Details - As of June 30, 2024, Planet Fitness had cash and cash equivalents of $247 million, down from $275.8 million at the end of 2023, while long-term debt increased to $2.16 billion from $1.96 billion [8] 2024 Outlook Updated - The company expects revenues to grow in the 4-6% range from 2023 levels, with system-wide same-store sales projected to increase by 3-5% [9] - Adjusted EBITDA is anticipated to rise by 7-9%, while adjusted net income is now expected to increase by 4-6%, down from a previous forecast of 6-8% [10]