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Planet Fitness (PLNT) Q1 Earnings & Revenues Miss Estimates
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Planet Fitness, Inc. (PLNT - Free Report) reported first-quarter 2020 results, wherein both earnings and revenues missed the Zacks Consensus Estimate. Notably, earnings missed the consensus mark after beating in the preceding 19 quarters. Moreover, both top and bottom lines declined sharply year over year owing to the coronavirus pandemic.
Quarterly Details
Adjusted earnings came in at 16 cents per share, which missed the Zacks Consensus Estimate of 36 cents. The bottom line also declined 54.3% on a year-over-year basis.
Meanwhile, revenues of $127.2 million lagged the Zacks Consensus Estimate of $157 million and declined 14.5% on a year-over-year basis. The top line was impacted by dismal franchise and equipment sales. However, system-wide same-store sales improved 9.8% year over year in the quarter under review.
Franchise revenues decreased 11% to $58.5 million. The Corporate-owned Stores segment’s revenues improved 6.5% year over year to $40.5 million. In the Equipment segment, revenues declined 37.4% to $28.2 million owing to decreasing lower equipment sales to new and existing franchisee-owned stores.
Moreover, EBITDA in the Franchise segment declined 22.4% to $36.7 million. The segment EBITDA for the first quarter does not reflect $18.7 million of deferred royalty and national advertising fund revenue, which was collected but not recognized due to coronavirus-induced store closure. At the Corporate-owned stores segment, EBITDA fell 22.9% to $12 million. Moreover, the same declined 38.8% to $6.4 million at Equipment segment.
Total adjusted EBITDA at the end of the first quarter fell to $46.5 million from $63.5 million in the year-ago quarter.
As of Mar 31, 2020, cash and cash equivalents totaled $547.5 million compared with $436.3 million as of Dec 31, 2019. Long-term debt, net of current maturities, amounted to $1,684.7 million at the end of first-quarter 2020 compared with $1,687.5 million at 2019 end.
Coronavirus Update
Due to the coronavirus pandemic, the company’s CEO, president, chief financial and chief digital and information officers have taken a significant pay cut. The company has furloughed all employees except the store manager at each corporate-owned store location. In an effort to provide liquidity, the company has withdrawn $75.0 million variable funding notes.
Zacks Rank & Stocks to Consider
Planet Fitness, which shares space with Camping World Holdings, Inc. (CWH - Free Report) , has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks worth considering in the leisure space include Madison Square Garden Sports Corp. (MSGS - Free Report) and Madison Square Garden Entertainment Corp. (MSGE - Free Report) . Madison Square Garden Sports carries a Zacks Rank #1 (Strong Buy), while Madison Square Garden Entertainment has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Madison Square Garden Sports current quarter earnings are likely to witness growth of 21%.
Shares of Madison Square Garden Entertainment have surged 22% in the past month.
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Planet Fitness (PLNT) Q1 Earnings & Revenues Miss Estimates
Planet Fitness, Inc. (PLNT - Free Report) reported first-quarter 2020 results, wherein both earnings and revenues missed the Zacks Consensus Estimate. Notably, earnings missed the consensus mark after beating in the preceding 19 quarters. Moreover, both top and bottom lines declined sharply year over year owing to the coronavirus pandemic.
Quarterly Details
Adjusted earnings came in at 16 cents per share, which missed the Zacks Consensus Estimate of 36 cents. The bottom line also declined 54.3% on a year-over-year basis.
Meanwhile, revenues of $127.2 million lagged the Zacks Consensus Estimate of $157 million and declined 14.5% on a year-over-year basis. The top line was impacted by dismal franchise and equipment sales. However, system-wide same-store sales improved 9.8% year over year in the quarter under review.
Franchise revenues decreased 11% to $58.5 million. The Corporate-owned Stores segment’s revenues improved 6.5% year over year to $40.5 million. In the Equipment segment, revenues declined 37.4% to $28.2 million owing to decreasing lower equipment sales to new and existing franchisee-owned stores.
Moreover, EBITDA in the Franchise segment declined 22.4% to $36.7 million. The segment EBITDA for the first quarter does not reflect $18.7 million of deferred royalty and national advertising fund revenue, which was collected but not recognized due to coronavirus-induced store closure. At the Corporate-owned stores segment, EBITDA fell 22.9% to $12 million. Moreover, the same declined 38.8% to $6.4 million at Equipment segment.
Total adjusted EBITDA at the end of the first quarter fell to $46.5 million from $63.5 million in the year-ago quarter.
Planet Fitness, Inc. Price and EPS Surprise
Planet Fitness, Inc. price-eps-surprise | Planet Fitness, Inc. Quote
Other Financial Details
As of Mar 31, 2020, cash and cash equivalents totaled $547.5 million compared with $436.3 million as of Dec 31, 2019. Long-term debt, net of current maturities, amounted to $1,684.7 million at the end of first-quarter 2020 compared with $1,687.5 million at 2019 end.
Coronavirus Update
Due to the coronavirus pandemic, the company’s CEO, president, chief financial and chief digital and information officers have taken a significant pay cut. The company has furloughed all employees except the store manager at each corporate-owned store location. In an effort to provide liquidity, the company has withdrawn $75.0 million variable funding notes.
Zacks Rank & Stocks to Consider
Planet Fitness, which shares space with Camping World Holdings, Inc. (CWH - Free Report) , has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks worth considering in the leisure space include Madison Square Garden Sports Corp. (MSGS - Free Report) and Madison Square Garden Entertainment Corp. (MSGE - Free Report) . Madison Square Garden Sports carries a Zacks Rank #1 (Strong Buy), while Madison Square Garden Entertainment has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Madison Square Garden Sports current quarter earnings are likely to witness growth of 21%.
Shares of Madison Square Garden Entertainment have surged 22% in the past month.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>