Planet Fitness Tops Q3 Estimates, Shares Jump

Shares of Planet Fitness Inc. PLNT gained more than 12 percent in after-hours trading on Thursday after the company reported stronger-than-expected results for the third quarter and lifted its 2015 forecast. The Newington, New Hampshire-based company reported a quarterly loss of $3.9 million, versus a year-ago profit of $8.1 million. Excluding one-time items, the company's adjusted earnings came in at $0.10 per share. Its revenue rose 8.4 percent to $68.8 million. However, analysts were projecting earnings of $0.09 per share on revenue of $67 million. Its sales at stores open more than a year climbed 6.9 percent. Franchise segment revenue surged 25.4 percent to $19.8 million in the quarter, while corporate-owned stores segment revenue rose 10.8 percent to $25.2 million. Equipment segment revenue dropped 4.5 percent to $23.9 million. Adjusted EBITDA rose 11.8 percent to $26.5 million from $23.7 million. During the quarter, the company opened 26 new Planet Fitness franchise stores. Christopher Rondeau, Chief Executive Officer, commented, "We are very pleased with our third quarter results. Our performance was driven by the continued execution of our strategy: expansion of the Planet Fitness store base coupled with system-wide same store sales growth. Our unique fitness offering and powerful national advertising strategy continue to resonate with a broad consumer audience. Looking ahead, we see a long runway for growth. With our three operating segments – Franchise, Corporate Stores and Equipment – we are well positioned to generate strong top-line gains, margin expansion and significant free cash flow over the long-term." For the year, Planet Fitness now expects earnings of $0.51 to $0.52 per share on revenue of $318 million to $321 million. The company had earlier expected earnings of $0.47 to $0.48 per share on revenue of $314 million to $316 million. Planet Fitness shares jumped 12.19 percent to $16.94 in the after-hours trading session.