Planet Fitness Tops Q2 Estimates, Shares Jump

Shares of

jumped over 8 percent in after-hours trading after the company reported better-than-expected results for the second quarter. The Newington, New Hampshire-based company posted quarterly net income of $11.5 million, compared to $8.8 million, in the year-ago period. Pro forma adjusted earnings climbed to $0.13 per share from $0.10 per share. Its total revenue climbed 25.9 percent year-over-year to $79.0 million from $62.7 million. However, analysts were expecting earnings of $0.12 per share on revenue of $77.4 million. System-wide same store sales gained 7.3 percent for the quarter. Franchisee-owned same store sales rose 7.8 percent, while corporate-owned same store sales rose 0.9 percent. Franchise segment revenue rose 18.7 percent year-over-year to $21.9 million in the latest quarter. Corporate-owned stores segment revenue rose 11.4 percent to $25.0 million, while equipment segment revenue climbed 47.0 percent to $32.1 million. Its adjusted EBITDA surged 27.5 percent to $31.0 million from $24.3 million. During the second quarter, the company added 38 new Planet Fitness stores. Christopher Rondeau, Chief Executive Officer, said, "We are very pleased with our second quarter performance, which was highlighted by solid sales growth, strong margins and the opening of our 1,000th store. Our recent results demonstrate the strength of our unique business model and we are confident that our focus on providing a high-quality fitness experience at an exceptional price point will continue to resonate with a broader consumer audience. With our strong group of well-capitalized and experienced franchisees, we believe we have a sound plan in place to expand our store footprint and drive significant growth and shareholder value over the long-term." For the year ending December 31, 2015, Planet Fitness projects pro forma adjusted net income of $0.47 to $0.48 per share and revenue of $314 million to $316 million. Planet Fitness shares gained 8.17 percent to $20.00 in the after-hours trading session.