BOSTON--(BUSINESS WIRE)--Easy Mile Fitness, a privately held Planet Fitness franchisee, has completed an acquisition adding 15 locations in Oregon and two in Alaska from the Bravo Fit Franchise Group. The 17 locations are throughout Portland, Bend, Medford and Yakima, Oregon and Anchorage, Alaska. The new additions make Easy Mile Fitness the largest Planet Fitness operator in Oregon, with Alaska marking the fifth state they operate in. ...

Financial Data and Key Metrics Changes - Total revenue increased by 14% to $761 million, driven by a 14% increase in membership dues and enrollment fees, and a 14.4% increase in in-center revenue [5][6] - Net income for the quarter was $72.1 million, an increase of 36.5%, including approximately $9 million of tax-effective losses on sale leaseback [6][7] - Adjusted net income was $84.1 million, up 60.5% year over year, while adjusted EBITDA increased by 21.6% to $211 million [7][8] - Free cash flow was $112 million for the second quarter, marking the fifth consecutive quarter of positive free cash flow [8] Business Line Data and Key Metrics Changes - Memberships reached over 849,000, with total memberships, including on-hold memberships, at approximately 899,000 [6] - Average monthly dues grew by 10.6% year over year to $219, and average revenue per center membership was $888, an increase of 11.8% from the prior year quarter [6][7] - Comparable center revenue grew by 11.2%, prompting an increase in full-year comparable center revenue guidance to between 9.5% and 10% [5][6] Market Data and Key Metrics Changes - Lifetime Digital accounts increased by 216% year over year to 2.3 million [11] - The nutritional supplement line saw revenue growth of 31% compared to the prior year quarter [12] Company Strategy and Development Direction - The company is focusing on growth, with plans to accelerate the development of new club openings, targeting 12 to 14 openings in 2026 [11] - The company aims to maintain a strong balance sheet and has achieved a BB credit rating, which will help lower interest costs and increase earnings [10] - The company is committed to an asset-light, high-margin expansion strategy to drive sustained revenue and adjusted EBITDA growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance and growth opportunities ahead, noting that visits per membership are up 5.7% year over year [10] - The management team emphasized that they are not seeing any signs of weakness in membership or revenue growth, despite typical seasonal fluctuations [20][30] - The company is focused on maintaining a strong customer experience and is cautious about overextending membership growth to ensure quality [43][52] Other Important Information - The company closed on the sale leaseback of three properties, generating net proceeds of approximately $149 million [9] - The company plans to close another $100 million in sale leaseback transactions in the second half of the year [10] Q&A Session Summary Question: How did new membership sign-ups track through the quarter? - Management noted that membership sign-ups were slightly slower in the first half of the quarter but picked up significantly in the latter half, resulting in a strong finish [16][18] Question: Any further commentary on monetizing membership? - Management indicated that revenue per membership increased nearly 12%, reflecting effective monetization strategies [22] Question: Clarification on unit guidance and timing shifts? - Management explained that the narrowing of unit guidance was due to a focus on existing spaces and ensuring financial stability, with a robust pipeline for future growth [26][27] Question: Expectations for membership in the back half of the year? - Management expects typical seasonality to affect membership numbers, but they are not seeing any signs of weakness [30][32] Question: How does the waitlist affect member growth? - Management clarified that waitlists are a tool for managing member experience and should not be viewed as a KPI [50][52] Question: Insights on average revenue per membership growth? - Management reported no signs of fatigue among demographics and emphasized strong performance across all business areas [60] Question: Trends in in-center revenue and initiatives? - Management highlighted growth in personal training and nutritional products, with plans for further expansion in these areas [66][70] Question: Pricing strategies for legacy members? - Management confirmed that pricing adjustments for legacy members were consistent with their strategy and that they remain optimistic about comp sales growth [78] Question: Pipeline for new clubs beyond 2026? - Management indicated a solid pipeline and expects to maintain growth of at least 10 to 12 clubs per year [81][82]

Core Insights - SEGG Media Corporation has signed a binding Letter of Intent to acquire the rights to David Lloyd's All-Sports Arena in Boca Raton, FL, valued at $14 million, marking the brand's entry into the U.S. market [2][3] Company Overview - SEGG Media is a technology company focused on the intersection of sports, entertainment, and gaming, operating under the NASDAQ ticker SEGG [2][11] - David Lloyd is a prominent figure in British and European sports, known for founding David Lloyd Leisure, which operates 130 health and fitness clubs serving over 710,000 members [4][12] Facility Details - The All-Sports Arena will be a 100,000 square-foot facility in Boca Raton, designed to combine sports infrastructure with co-working and business amenities, branded as "Sports.com All-Sports Arena, designed by David Lloyd" [3][8] - Key features of the facility include indoor padel, basketball, and pickleball courts, climbing walls, AI-driven golf simulators, and a luxury co-working space of approximately 10,000 square feet [8][10] Financial Projections - The Boca facility is projected to generate over $6 million in EBITDA in its first year of operations, with plans for additional facilities to be developed [10] Strategic Expansion - The Boca Raton launch is part of a broader international rollout strategy, with plans for expansion across major U.S. cities and the Middle East, leveraging Sports.com's digital audience and David Lloyd's operational expertise [7][9]

Core Viewpoint - SEGG Media Corporation has signed a binding Letter of Intent to acquire the rights to David Lloyd's All-Sports Arena in Boca Raton, FL, valued at $14 million, marking the entry of the David Lloyd brand into the U.S. market [3][4] Company Overview - SEGG Media Corporation operates in the sports, entertainment, and gaming sectors, focusing on immersive fan engagement and AI-driven experiences [11] - David Lloyd is a prominent figure in global sport and fitness, known for founding David Lloyd Leisure, which operates 130 premium health and fitness clubs [6][12] Strategic Partnership - The LOI was signed during Wimbledon, symbolizing a significant partnership between SEGG Media and David Lloyd, aimed at creating a unique sports and business ecosystem [4][7] - The Boca Raton facility will be branded as "Sports.com All-Sports Arena, designed by David Lloyd," featuring a blend of sports infrastructure and business amenities [4][9] Facility Features - The arena will span 100,000 square feet and include indoor padel, basketball, and pickleball courts, climbing walls, AI-driven golf simulators, and a luxury co-working space [4][15] - The facility is projected to generate over $6 million in EBITDA in its first year of operations [10] Expansion Plans - This launch is part of a broader international rollout strategy, with plans for additional facilities across major U.S. cities and the Middle East [8][9]

Group 1 - The company has acquired its first locations in Illinois, increasing its total club count to 198 across 14 states [1] - The newly acquired clubs were previously owned by Pizzazz Fitness and will continue to operate under the Planet Fitness brand [2] - National Fitness Partners (NFP) is backed by Argonne Capital Group, LLC, a private investment firm based in Atlanta [2]

Core Viewpoint - Planet Fitness Inc has been upgraded to "buy" from "hold" by Stifel, with a price target increase to $120 from $82, citing stabilizing new membership rates and potential tailwinds for comparable sales growth in the mid- to high-single-digit range over the next several years [1] Group 1 - Shares of Planet Fitness are up 1.4% before market opening, approaching an all-time high of $109.91, with a year-over-year increase of 59% and a year-to-date gain of 5.3% [2] - If premarket strength continues, the stock will achieve its sixth consecutive daily gain [2] Group 2 - Short interest has increased by 27.6% in the past two weeks, with 6.66 million shares sold short, representing 8% of the total available float [3] - At the current trading pace, it would take short sellers more than four days to cover their positions [3] Group 3 - An unwinding of pessimism in the options market may provide additional support, as the put/call open interest ratio stands at 0.83, indicating higher-than-usual put exposure among short-term traders [4]

Financial Data and Key Metrics Changes - Total revenue increased by 18.3% to $706 million, driven by a 17.9% increase in membership dues and enrollment fees and an 18.7% increase in in-center revenue [4][8] - Net income rose by 206% to $76.1 million, while adjusted net income increased by 189% to $88.1 million [8] - Adjusted EBITDA grew by 31.2% to $191.6 million, with an adjusted EBITDA margin of 27.1%, up 260 basis points year-over-year [9] - Net cash provided by operating activities increased approximately 103% to $184 million compared to the prior year [10] Business Line Data and Key Metrics Changes - Comparable center revenue increased by 12.9%, up from 11.1% in the prior year period, attributed to higher membership dues and strong performance in in-center businesses [5][6] - Average monthly dues grew by 11.8% year-over-year to $208, and average revenue per center membership increased by 13.3% to $844 [7][8] - Center memberships increased by 3% year-over-year, totaling over 826,000, with total memberships reaching approximately 880,000 when including on-hold memberships [6][7] Market Data and Key Metrics Changes - Visits in comparable centers increased by 4.7% compared to the first quarter of the previous year, indicating strong member engagement [12] - The company is focused on premium markets with strong demand and higher dues rates, which is reflected in the membership growth strategy [7][14] Company Strategy and Development Direction - The company aims to maintain a strong balance sheet and positive free cash flow while growing the business, with plans to open 10 to 12 clubs per year [12][13] - The strategy includes focusing on member experience and attracting higher revenue memberships, with a robust pipeline for club growth [13][14] - The company is also expanding into digital health and wellness through LT Digital and LT Health initiatives, with significant growth expected in these areas [14][88] Management's Comments on Operating Environment and Future Outlook - Management raised revenue and adjusted EBITDA guidance modestly due to macroeconomic uncertainties, emphasizing the importance of maintaining a strong balance sheet [12][14] - The company is monitoring customer behavior closely, noting that while retention rates are high, new member sign-ups may be slightly softer due to economic conditions [41][60] - Management expressed confidence in navigating both robust and challenging economic conditions, leveraging a strong financial position to capitalize on opportunities [25][56] Other Important Information - The company has signed a letter of intent for a sale-leaseback of three properties for approximately $150 million, expected to close in the second quarter [10] - The company does not anticipate significant impacts from tariffs on its operations, having assessed exposure in key areas [11][43] Q&A Session Summary Question: How many clubs have wait lists and what is the strategy around that? - Management indicated that many clubs are using waitlists to manage capacity and ensure a quality member experience, focusing on full dues-paying customers [20][21] Question: What is the capacity to open more clubs beyond the planned 10 to 12? - Management stated that while 10 to 12 clubs is the target for 2025, there is potential to exceed that number if economic conditions allow [25][26] Question: How does the company view pricing strategies for legacy members? - Management confirmed that no significant legacy price increases were implemented in Q1, with plans to roll out increases in the following quarters [31][33] Question: How is the company addressing potential impacts from tariffs? - Management noted minimal exposure to tariffs, with most equipment sourced from Italy and Sweden, and ongoing efforts to mitigate any potential impacts [48][49] Question: How is LT Health performing and what are the growth expectations? - Management reported significant month-over-month growth in LT Health and emphasized the goal of establishing it as a trusted nutritional brand [86][88]

Core Insights - Planet Fitness reported revenue of $276.66 million for the quarter ended March 2025, marking an 11.6% year-over-year increase, with EPS of $0.59 compared to $0.53 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $281.54 million, resulting in a surprise of -1.73%, while the EPS also missed the consensus estimate of $0.62 by -4.84% [1] Financial Performance Metrics - Total stores at the end of the period were 2,741, slightly below the estimated 2,746 [4] - Same-store sales increased by 6.1%, exceeding the estimated 5.4% [4] - Franchisee-owned same-store sales were reported at 6.2%, also above the estimated 5.4% [4] - Corporate-owned same-store sales were 5.1%, slightly above the 5% average estimate [4] - The company opened 19 new stores, below the average estimate of 23 [4] Revenue Breakdown - National advertising fund revenue was $21.94 million, surpassing the average estimate of $21.55 million, reflecting a year-over-year change of +10.9% [4] - Franchise revenue reached $93.24 million, slightly below the average estimate of $93.54 million, with a year-over-year increase of +10.7% [4] - Equipment segment revenue was $27.81 million, exceeding the average estimate of $27.36 million, with a significant year-over-year increase of +28.7% [4] - Corporate-owned stores segment revenue was $133.67 million, below the average estimate of $136.20 million, showing a year-over-year change of +9.2% [4] - Franchise segment revenue was $115.18 million, slightly above the estimated $115.09 million, with a year-over-year increase of +10.7% [4] Stock Performance - Planet Fitness shares have returned +7.6% over the past month, compared to the Zacks S&P 500 composite's +11.3% 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]