Planet Fitness, Inc. · NYSE:PLNT
Planet Fitness — Q3 2023 Earnings Presentation
33 slides from Planet Fitness's earnings presentation, Nov 7, 2023
Slide 1: Investor Presentation November 2023
Investor Presentation November 2023 1
Slide 2: Non-GAAP and forward-looking statements
The financial information presented in this presentation includes non-GAAP financial measures such as EBITDA, Segment EBITDA, Adjusted EBITDA, and Adjusted earnings per share to provide measures that we believe are useful to investors in evaluating the Company’s performance. These non-GAAP financial
Slide 3: Planet Fitness at a Glance
Planet Fitness at a Glance Enhancing people’s lives by providing a high-quality fitness experience in a welcoming, non- intimidating environment, which we call the Judgement Free Zone® More than 2,4002 Stores Worldwide Corporate HQ Hampton, NH NYSE: PLNT 2015 IPO $4.8 Billion1 Market Cap $272M $379M
Slide 4: Q3 2023 Results
Q3 2023 Results 4 2,498 stores 18.5M+ members 8% Systemwide Same Store Sales Increase 13.6% revenue growth 19% Adj. EBITDA growth 40.3% Adj. EBITDA margin 40% Adj. EPS growth
Slide 5: Why Invest in Planet Fitness?
Why Invest in Planet Fitness? Industry Leader Largest fitness franchise by number of members and locations Growing & Successful Business Model Supporting increased consumer prioritization of health wellness, especially among Gen-Z Historical Financial Performance Strong track record of consistent po
Slide 6: Years of consistent, reliable growth
30 years of consistent, reliable growth 2022 17 million members2021 15 million members2019 2,000th store opens2017 10.5 million members2015 1,000th store opens IPO 2013 5 million members2012 TSG Consumer Partners buys PF 500th store opens 2011 First ever National advertising campaign “Lift Things Up
Slide 7: Differentiated Model
DIFFERENTIATED MODEL Disruptive Brand 80% unserved Judgement Free Great Value Streamlined Operating Model Re-equip schedules Unique royalty stream Disciplined Franchise Model 7
Slide 8: Grew industry by going after 80% unserved population
12.8M NEW MEMBERS Total U.S. gym membership growth 2011-2019 11.1M NEW MEMBERS FROM PLNT 2011-2019 Grew industry by going after 80% of U.S. population that doesn’t belong to a gym 87% & 13%OF INDUSTRY MEMBER GROWTH DROVE OF INDUSTRY UNIT GROWTH 8Source: IHRSA
Slide 9: Broad demographic appeal
Broad demographic appeal Source: 2019 Civis analytics survey data SLIGHT SKEW TO FEMALE >50% of members are female COMPELLING VALUE 26% of members have incomes under $50K 21% of members have incomes over $100K ALL AGES 13+ CAN JOIN 48% of members are under 35 15% of members are over 55 9
Slide 10: Significant size and scale advantage
Significant size and scale advantage 10 Store & Membership Marketing • 60% greater by store count than next 17 High Value Low Price competitors combined1 • Nearly 8x the membership of next largest competitor1 • More than $1B spent on marketing systemwide since 2015 IPO • Spent over $240M in systemwi
Slide 11: Confidence in long-term membership growth
Confidence in long-term membership growth driven by historic ability to gain greater share of each successive generational group and consumer prioritization of overall health and wellness GEN X MILLENNIAL GEN Z (15+) BOOMER+ GEN X MILLENNIAL GEN Z (15+) BOOMER+ GENERATIONAL MIX* 2019 14.4M MEMBERS 2
Slide 12: Digital flywheel unlocks even more value for members
REFER A FRIEND EASY DIGITAL UPGRADES DIGITAL JOINS AND INCREASED CONVERSION PERKS AND REWARDS WORKOUTS AND GUIDANCE REDUCING MEMBERSHIP FRICTION PROSPECTING VIA APP BIG PARTNERSHIPS FITNESS TRACKING HIGHER DUES LONGER TENURE MEMBERSHIP GROWTH BETTER BLACK CARD VALUE Digital flywheel unlocks even mor
Slide 13: Our Business
Our Business
Slide 14: Long track record of strong SSS growth
Long track record of strong SSS growth primarily driven by member growth 53 straight quarters of positive SSS AVERAGE: 12% 18%Annual SSS 23%22% 13% 3% 8% 8% 11% 7% 8% 10% 10% 8% NA NA 11% 14 AVERAGE: 10% 9 straight quarters of positive SSS -5% 10% 25% 2007 2008 2009 2010 2011 2012 2013 2014 2015 201
Slide 15: Our Three Segments
Our Three Segments Franchise Growing locations and members by leveraging well-capitalized entrepreneurs with local market expertise Corporate-Owned Corporate-owned locations that represent a growing business with stable profitability Equipment High-quality, Planet Fitness-branded equipment sold at a
Slide 16: Franchise
Franchise • Franchise model designed to be streamlined and easy- to-operate, with efficient staffing and minimal inventory • Supported by an active, engaged franchise operations and training system • Dedicated marketing team that provides guidance, tracking, measurement, and advice on best practices
Slide 17: Corporate-Owned Stores
Corporate-Owned Stores • Diversified corporate store geographic footprint in Northeast and Southeast markets with runway for future store development. • Target ownership of 10% of system to retain asset-light business model, an important part of shareholder value proposition. $160 $117 $167 $379 201
Slide 18: Equipment
Equipment • Franchisees obligated to: • Purchase new store equipment from PLNT1 • Replace cardio equipment every 5 years and strength equipment every 7 years • Provides high visibility into revenue generation • Leverage our scale for competitive pricing and to secure extended warranties from supplie
Slide 19: Financial Overview
Financial Overview 19
Slide 20: Strong flow-through on incremental revenue growth compared to QSR
Strong flow-through on incremental revenue growth compared to QSR COMPARISON OF MATURE UNIT ECONOMICS ILLUSTRATIVE FLOW-THROUGH OF INCREMENTAL REVENUE 46% 27% 14% 56% 40% 17% 4-wall EBITDA Variable Costs Fixed Costs Illustrative QSR Concept ~2.5x $0 $200 $400 $600 $800 $1,000 10% 20% 30% 40% 50% 4 -
Slide 21: Prioritizing high-return investments and asset-light model
Prioritizing high-return investments and committed to asset-light model 21 Capital Investments Share Repurchases • New stores • Remodels • Re-equip existing stores • Technology • Annual repurchase minimum of ~1M shares • Option to increase where appropriate
Slide 22: 2023 Outlook
2023 Outlook • New equipment placements of between approximately 130 and 140 in franchise-owned locations • System-wide new store openings of between approximately 150 and 160 locations • System wide same store sales in the high single-digit percentage range 1. Based on adjusted diluted shares outst
Slide 23: Management Team
Management Team Craig Benson Interim Chief Executive Officer Paul Barber Chief Information Officer Bill Bode Division President, U.S. Franchise Tom Fitzgerald Chief Financial Officer Kathy Gentilozzi Chief People Officer Sherrill Kaplan Chief Digital Officer Jamie Medeiros Chief Brand Officer Jennif
Slide 24: PF Purpose: Our commitment to ESG
PF Purpose: Our commitment to ESG
Slide 25: PF Purpose
PF Purpose ACCESS We increase access to fitness for all through affordable memberships, nonintimidating environment, and investment in community partners and programs. INCLUSION We create, promote and reward inclusive clubs, cultures and communities SUSTAINABILITY We strive to leave a positive impac
Slide 26: Enhancing Lives and Creating a Healthier World
Enhancing Lives and Creating a Healthier World 26 Environmental Committed to working with franchisees and partners to make environmentally sustainable decisions by reducing our environmental impact to ensure future generations have access to a healthy planet. Social Committed to increasing access to
Slide 27: Appendix
Appendix
Slide 28: Income Statement
Income Statement For the tree months ended or the year nde ‘December 3 ‘December 7 a 7 a Revenue Franchise S$ 71316 $ 64549 S$ 271,559 $238,349 National advertising fund revenue 149513868 5807552361 ‘Comporate-owned stores 10045344864 © 379,303 167.219 Equipment ous 60359 207745 129,094 Total revenu
Slide 29: Balance Sheet
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Slide 30: Cash Flow Statement
Cash Flow Statement Ces ws a peng | Nena sass s i A Sl ‘apc net| ry om ‘Naa od Nea sit Ms Wravalfotdered Gnmeng crs tse = eg (cing oes of ce nen Pt o 1» Deen sca eset am a) Detored an xp ssoie ise Lin (gn) on eemenaronet fe ei arangn sp ey (Gato aio aetna rey a one 0 ry or once his pe ‘0 = gy hel co
Slide 31: Non-GAAP Financial Measures
Non-GAAP Financial Measures 31
Slide 32: Non-GAAP Financial Measures (contd.)
Non-GAAP Financial Measures (contd.) 32
Slide 33: Contact Investor Relations
Contact Investor Relations: Stacey Caravella investor@planetfitness.com