Planet Fitness reported more than 1.6 million new members in 2016, many of whom had never previously held a health club membership. (Photo courtesy Planet Fitness.)
Planet Fitness, Newington, New Hampshire, reported fourth quarter revenue of $116.4 million, a 10 percent increase from the same period last year, according to financials released Wednesday. This fueled a 14 percent increase in total 2016 revenue to $378.2 million.
The company reported its same store-sales grew 10.6 percent during the quarter and 8.8 percent for the year. In total, Planet Fitness added 195 new facilities in 2016, 74 of which opened in the fourth quarter. As of Dec. 31, 2016, the company claimed 1,313 clubs across the world.
"The foundation of our success starts with our affordable, non-intimidating fitness offering,” CEO Chris Rondeau said in the earnings statement. “Our welcoming in-store experience featuring industry-leading cardio and strength equipment is resonating with an increasing number of consumers as we expand brand awareness through our growing national and local advertising spend combined with our powerful franchise base that continues to bring our brand to new communities.
“I'm incredibly proud of everything we have accomplished, especially how we've enriched so many members' lives and delivered strong returns for our franchisees and shareholders,” Rondeau said. “We are excited to build on our current momentum in 2017 and over the long-term."
Planet Fitness’ adjusted EBITDA increased 22 percent to $150.6 million for the year, and it increased 17.7 percent to $44.1 million during the fourth quarter.
Quarterly franchise segment revenue grew 30.2 percent to $32.1 million, while corporate segment revenue increased 5.1 percent to $26 million. The company’s equipment segment revenue also increased 3.3 percent to $58.3 million.
Planet Fitness reported more than 1.6 million new club members in 2016, according to the statement. Many of those new members were first-time health club members. In an internal study conducted in 2016, company executives learned that more than 40 percent of Planet Fitness members have never previously held a club membership of any kind.
For 2017, the company is forecasting total revenue in the range of $405 million to $415 million, supported by same-store sales growth of at least 6 percent.
Planet Fitness (NASDAQ:PLNT) closed last Friday at $21.85 per share. Its stock price is trading in a 52-week range between $25.10 and $13.35.
Planet Fitness ranked seventh on Club Industry's Top 100 Health Clubs of 2016, with a 2015 reported revenue of $330.5 million. This was an 18 percent uptick from 2014.