Planet Fitness registered for its initial public offering with the Securities and Exchange Commission (SEC) on Monday and plans to trade on the New York Stock Exchange under the symbol 'PLNT.'
The company is offering 13.5 million shares of Class A stock between $14 and $16 per share in the IPO expected Aug. 6.
The following is an overview of notable numbers and figures from the 247-page registration statement filed with the SEC:
(Photo courtesy Planet Fitness SEC Registration Statement).
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Planet Fitness operated 976 clubs system-wide as of March 31, 2015.
Clubs: 919 were franchised by 187 franchisee groups and 57 were corporate-owned. Stores are located in 47 states, Puerto Rico and Canada.
Membership: More than 7.1 million as of March 31, 2015, with more than 50 percent of membership being female.
Employees: 688 at corporate-owned stores; 154 at corporate headquarters in Newington, New Hampshire.*
*Planet Fitness franchises are independently owned and operated businesses. As such, employees of franchisees are not employees of the company.
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As of March 31, 2015, 88 percent of all franchise clubs were owned and operated by a franchisee group that owns at least three stores. The largest franchisee owns 47 stores, and 9 percent of franchisee groups own more than 10 stores.
Revenues: Approximately 80 percent of Planet Fitness' franchise revenues and over 90 percent of corporate-owned store revenues in 2014 consisted of recurring revenue streams, which include royalties, vendor commissions, monthly dues and annual fees.
Return on Investment: Planet Fitness said franchisees in their second year of operations can earn, on average, a cash-on-cash return on initial investment greater than 25 percent after royalties and advertising.
Equipment: Franchisees are required to purchase fitness equipment from Planet Fitness and are required to purchase various other items from approved vendors. Planet Fitness sells equipment purchased from third-party equipment manufacturers to franchise clubs. The company also has two suppliers of tanning beds, one supplier of massage beds and chairs, and various suppliers of non-fitness equipment and miscellaneous items, such as towels and T-shirts. Franchisees are required to replace their existing equipment with new equipment every four to seven years.
Marketing: Franchisees are required to generally spend between 5 percent and 7 percent of monthly membership dues on local advertising. Together with Planet Fitness' national advertising fund, the company and franchisees have spent an estimated $150 million on marketing since 2011.
Stores: Planet Fitness had 918 stores as of Dec. 31, 2014, compared to 302 as of Dec. 31, 2009.
Membership: Planet Fitness had 6.1 million members as of Dec. 31, 2014, compared to 2.3 million as of Dec. 31, 2010.
Premium: The PF Black Card Membership, with dues of $19.99 per month compared to standard dues of $10 per month, has grown since 2010. PF Black Card members as a percentage of total membership have increased from 38 percent in 2010 to 55 percent in 2014, and average monthly dues per member have increased from $14.22 to $15.45 over the same period.
Sales: System-wide sales in 2014 were $1.2 billion, reflecting a compound annual growth rate (CAGR) of 30.1 percent, or increase of $774.3 million, since 2010.
Expansion Plans: As of March 31, 2015, franchisees have signed ADAs to open more than 1,000 additional stores during the next seven years, including approximately 500 during the next three years. Planet Fitness said it has the potential to have 4,000 locations in the United States.
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Bottom Line: Planet Fitness total revenues were $159.7 million in 2012, $211 million in 2013 and $279.8 million in 2014. Total revenues were $76.9 million in the quarter ended March 31, 2015, compared to $57.6 million in the quarter ended March 31, 2014, reflecting an increase of $19.3 million, or 33.5 percent. Revenue comes from three segments: franchise revenue, corporate-owned store revenue and equipment revenue.
Franchise Revenue: Total revenues were $34.7 million in 2012, $44.1 million in 2013 and $71.9 million in 2014. Franchise segment revenue was $21.8 million in the quarter ended March 31, 2015, compared to $16.5 million in the quarter ended March 31, 2014, reflecting an increase of $5.3 million or 32.1 percent.
Corporate-Owned Store Revenue: Revenues were $49.2 million in 2012, $67.4 million in 2013 and $85 million in 2014.
Equipment Revenue: Planet Fitness' equipment segment revenues were $75.8 million in 2012, $99.5 million in 2013 and $122.9 million in 2014.
Cash: Planet Fitness held $27.5 million of cash and cash equivalents as of March 31, 2015.
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Planet Fitness' business is conducted through Pla-Fit Holdings LLC, and its subsidiaries. Planet Fitness Inc. will be a holding company and sole manager of Pla-Fit Holdings after the IPO.
Planet Fitness' existing equity owners consist of holders of interests in Pla-Fit Holdings (Continuing LLC Owners) and Planet Fitness Holdings L.P., a predecessor entity to Planet Fitness Inc. (Direct TSG Investors).
Planet Fitness Holdings L.P. will merge with and into Planet Fitness Inc. prior to the IPO and the interests in Planet Fitness Holdings held by Direct TSG Investors will be converted into Class A shares of common stock in Planet Fitness Inc. Other investors in the offering also will own Class A shares.
The structure will allow the Continuing LLC Owners to retain equity ownership in Pla-Fit Holdings, and they will own Class B common stock in Planet Fitness Inc.
After the offering, Planet Fitness Inc. will have a board of directors and executive officers but no employees. The executive officers for Planet Fitness are Chief Executive Officer Chris Rondeau, Chief Financial Officer Dorvin Lively and Chief Administrative Officer Richard Moore.
Leadership compensation in 2014 for Rondeau was $1,088,091, for Lively was $728,635 and for Moore was $454,794.
(Club Industry photo).
Planet Fitness, which was founded in 1992, estimates the shares will generate $100 million in revenue for the company.
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