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Planet Fitness CEO Thinks His Company Can Win From Sports Authority's Bankruptcy

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Sports Authority filed a Chapter 11 bankruptcy petition last week, and this would benefit discount gym chain Planet Fitness Inc (NYSE: PLNT), according to a report on TheStreet.

As part of the reorganization, Sports Authority laid out plans to close or sell 140 of its 464 stores in the U.S. and Puerto Rico, in addition to distribution centers and warehouses in Denver and Chicago.

"We have already got the list of stores [up for sale] from Sports Authority, so we are looking at some of those and any other retailers that are downsizing or closing," Planet Fitness CEO Chris Rondeau told TheStreet.

Related Link: Sports Authority Bankruptcy Indicates 'Secular Implosion Of Traditional Retail'

Founded in 1992 in Dover, N.H., Planet Fitness is one of the largest and fastest-growing franchisors and operators of fitness centers in the United States by number of members and locations. It has more than 1,000 locations in 47 states and the District of Columbia, Puerto Rico, Canada, and the Dominican Republic.

For the fourth quarter, Planet Fitness said net income was $17.2 million higher than $13.8 million in the prior year period. Pro forma adjusted net income increased 24.7 percent to $17.0 million, $0.17 a share. Revenue rose 10.2 percent to $105.8 million. System-wide same store sales increased 6.2 percent.

For the full year 2015, profit was $38.1 million, up from $37.3 million last year. On a Pro forma basis, profit rose 26.2 percent to $53.2 million, or $0.54 a share. Total revenue increased 18.1 percent to $330.5 million. System-wide same store sales improved 7.7 percent. The company opened 209 new stores during the year.

Shares were down 1.41 percent at $15.39 on Monday.

Posted-In: The Sports Authority TheStrreetNews Asset Sales

 

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