Planet Fitness, Inc. (PLNT – Free report) Strong third quarter 2021 results, earnings and revenues exceeding Zachs estimate and increasing year on year. The increase in membership has benefited from the system-wide same store sales growth. Raised the 2021 revenue policy. Following strong results and a positive outlook, the company’s shares traded up 11.7 percent on November 4.
Income and income discussion
In the third quarter, the company reported adjusted earnings of 25 cents per share (EPS), an increase of 47.1 percent from 17 percent of the Zax deal. In the first quarter of the year, the company reported adjusted earnings of 2 cents per share.
By the end of the third quarter, the gross domestic product (ETA) was $ 62.2 million, up from $ 32 million in the previous quarter.
The quarterly revenue of $ 154.3 million surpassed the $ 136 million consensus by 13.6 percent. The top line is 46.4% higher than last quarter, with strong performance in franchise, corporate-owned shops and appliances. In the same quarter, the number of similar store sales globally increased 7.2 percent year-over-year.
In the third quarter of 2021, franchisees’ earnings came in at $ 75.4 million compared to $ 59.8 million in the first quarter. The upside was mainly due to an increase in franchise royalties ($ 10 million), NAF revenues ($ 1.3 million), franchise and other payments ($ 3.2 million). EBITDA reached $ 52 million in the franchise class compared to $ 31.1 million in the quarter.
The third-quarter earnings of corporate-owned stores rose by $ 43.9 million compared to $ 28.3 million in the first quarter. The upside was mainly due to the launch of operations in temporarily closed stores and the accumulation of revenue in seven new corporate-owned stores (as of July 1, 2020). The unit’s EBITDA reached $ 14.1 million, compared to $ 5.7 million in the previous quarter.
In the device segment, revenues total $ 35 million compared to $ 17.3 million quarterly. The peak was mainly due to high equipment sales for new and existing franchise-owned stores and discounts. EBITDA reached $ 7.9 million in the device segment compared to $ 2.3 million in the quarter.
Other financial details
A.D. As of September 30, 2021, the total cash and cash equivalents were $ 527.3 million compared to $ 469.1 million on June 30, 2021. Long-term debt (current net worth) reached $ 1,668.1 million by the end of the third quarter of 2021. End of quarter with $ 1.67 million.
By 2021, the company expects revenue from $ 530-580 million, estimated at $ 530-540 million. Sales, gross and administrative costs are expected to range from low to medium $ 90-million.
Adjusted EBITDA for 2021 is estimated at between $ 210-220 million, previously expected between $ 200 and $ 210 million. Adjusted net income is expected to be between 75 cents and 80 cents per share by 2021, up from 65-70 cents. The measurements are based on the assumption that there is no worsening of the CVD-19 epidemic, which will significantly affect performance, including long-term store closures or other prescribed operating restrictions.
The company expects new store openings in the 110-120 range for 2021, up from 75-100 previously.
Zax level and stocks to consider
Planet Fitness currently has a Zach level # 3 (hold). You can see Click here for a full list of today’s Zacks # 1 Rank.
Some of the best-selling stocks in Zach Consumer skills Sectors include Golden Entertainment, Inc. (Baden – Free report), Camp World Holdings, Inc. (CWH – Free report) And RCI Hospitality Holdings, Inc. (Rick – Free report). Golden Entertainment is Zax Level # 1 and Campking World and RCI Hospitality are Zax Level # 2 (Buy).
Gold Entertainment’s revenue for 2021 is expected to increase by 232.1 percent.
Camp World is a staggering quarter of revenue with an average of 70.9 percent.
RCI hosting three-to-five-year EPS is up 12 percent.