Planet Fitness, Inc. · NYSE:PLNT
Planet Fitness — Investor Presentation (May 2021)
30 slides from Planet Fitness's investor presentation, May 6, 2021
Slide 1: Investor Presentation Fiscal Year 2020
1 Investor Presentation Fiscal Year 2020
Slide 2: Disclaimers: Forward-looking statements
22 Disclaimers Forward-looking statements This presentation contains certain forward-looking statements within the meaning of the federal securities laws, which involve risks and uncertainties. Forward- looking statements include the Company’s expected store openings, growth potential, future earnin
Slide 3: Our Mission
3 Enhance people’s lives by providing a high-quality fitness experience in a welcoming, non-intimidating environment, which we call the Judgement Free Zone® Our Mission
Slide 4: COVID-19 Update
44 COVID-10 Update Trends for stores reopened since May/June 2020: Earliest reopen cohort shows best performance with usage indexing to nearly 90% of Q1’19 Keeping our commitment to clean PF team members required to wear masks in club Cleaning high-touch areas every 20-mins Extra sanitization statio
Slide 5: One of the Largest and Fastest-Growing Fitness Centers in the U.S.
55 One of the Largest and Fastest-Growing Fitness Centers in the U.S. Mission: Democratize fitness by breaking down barriers of intimidation and affordability Home of The Judgement Free Zone Highly-recognized national brand Exceptional value for members with standard membership of $10/month High-qua
Slide 6: Powerful business model drives significant opportunity for long-term growth
66 Powerful business model drives significant opportunity for long-term growth ◼ $2.0mm average unit volume1 ◼ 40% royalty-adjusted four-wall EBITDA margin1 ◼ 25%+ cash-on-cash returns2 ◼ Scalable model with significant growth potential ◼ New openings driven by existing franchisees ◼ Comprehensive p
Slide 7: Investment Highlights
77 Investment Highlights Differentiated fitness concept and exceptional value proposition that appeals to a broad demographic Strong store-level economics Highly attractive franchise system built for growth Predictable and recurring revenue streams with high cash flow conversion Market leader with a
Slide 8: Investment Highlights
88 Investment Highlights Differentiated fitness concept and exceptional value proposition that appeals to a broad demographic Strong store-level economics Highly attractive franchise system built for growth Predictable and recurring revenue streams with high cash flow conversion Market leader with a
Slide 9: We revolutionized the fitness industry
99 We revolutionized the fitness industry First Planet Fitness was founded in Dover, NH 3rd store opens and introduced Lunk Alarm and Judgement Free Zone Refocus on core competencies - aerobics and child daycare removed The first Planet Fitness franchise is sold and seven stores now open Branded equ
Slide 10: Differentiated concept & broad demographic appeal
1010 Differentiated concept & broad demographic appeal Judgement Free Zone ✓ All fitness levels feel welcome ✓ “No gymtimidation” ✓ “You belong” – we make it fun (monthly Pizza Mondays and Bagel Tuesdays)1 Distinct Store Experience ✓ Bright, clean, large stores maximized for essential fitness equipm
Slide 11: Investment Highlights
1111 Investment Highlights Differentiated fitness concept and exceptional value proposition that appeals to a broad demographic Strong store-level economics Highly attractive franchise system built for growth Predictable and recurring revenue streams with high cash flow conversion Market leader with
Slide 12: Nationally recognized brand fueled by unmatched advertising spend
1212 Nationally recognized brand fueled by unmatched advertising spend Approximately $1 billion spent on marketing since 2011 Brand Partnerships 2% of monthly membership dues spent on national advertising 7% of monthly membership dues spent on local advertising Memorable Marketing
Slide 13: Investment Highlights
1313 Investment Highlights Differentiated fitness concept and exceptional value proposition that appeals to a broad demographic Strong store-level economics Highly attractive franchise system built for growth Predictable and recurring revenue streams with high cash flow conversion Market leader with
Slide 14: Easy-to-operate and profitable store model
1414 Easy-to-operate and profitable store model ◼ Automatic, recurring revenue model ◼ Streamlined operations ◼ Minimal required staffing ◼ Minimal working capital needs ◼ No perishable inventory ◼ Highly-attractive return on capital Streamlined, Easy-to-Operate Store Model Illustrative Franchisee U
Slide 15: Investment Highlights
1515 Investment Highlights Differentiated fitness concept and exceptional value proposition that appeals to a broad demographic Strong store-level economics Highly attractive franchise system built for growth Predictable and recurring revenue streams with high cash flow conversion Market leader with
Slide 16: One Team, One Planet: Highly-attractive franchise system
1616 One Team, One Planet: Highly-attractive franchise system Franchisee Overview ◼ Highly-disciplined franchisee selection ◼ ~130 franchisee groups ◼ 98% of stores operated by multi-store operators1 ◼ Only 35% of franchisees own >10 stores ◼ Over 90% of unit growth in 2020 from existing franchisees
Slide 17: Investment Highlights
1717 Investment Highlights Differentiated fitness concept and exceptional value proposition that appeals to a broad demographic Strong store-level economics Highly attractive franchise system built for growth Predictable and recurring revenue streams with high cash flow conversion Market leader with
Slide 18: Predictable, recurring revenue streams
1818 Predictable, recurring revenue streams Recurring ~90% Non- recurring ~10% Historical Franchise Revenues Recurring ~90% Non- recurring ~10% Historical Corporate-Owned Store Revenues ◼ Revenues earned from franchise and corporate-owned stores consist largely of recurring revenue streams: ◼ Royalt
Slide 19: Highly-profitable, diversified business segments
1919 Highly-profitable, diversified business segments Note: Segment breakdown based on segment EBITDA, which excludes corporate overhead expenses 1 Based on the average from fiscal years 2018, 2019, and 2020. 2 Excludes negative corporate EBITDA impact 3Certain extensions have been granted such as a
Slide 20: Investment Highlights
2020 Investment Highlights Differentiated fitness concept and exceptional value proposition that appeals to a broad demographic Strong store-level economics Highly attractive franchise system built for growth Predictable and recurring revenue streams with high cash flow conversion Market leader with
Slide 21: Growth Strategies
2121 Growth Strategies Grow store base Drive revenue growth and same store sales Expand royalties Grow sales from fitness equipment 1 2 3 4
Slide 22: Grow Store Base
2222 Grow Store Base 488 606 749 918 1,124 1,300 1,493 1,703 1,943 2,124 2011 2012 2013 2014 2015 2018 U.S. store potential 1 Population data sourced from 2020 U.S. Census data; Population totals are as of 7/1/2017 while store count is as of 12/31/2020 2 Planet Fitness was founded in NH 3 Represents
Slide 23: Drive revenue growth and same store sales
2323 Drive revenue growth and same store sales 1 As of 12/31/20 2016 2020 ◼ Attract, engage, and retain members: ◼ Leverage “Bricks with Clicks” digital platform that appeals to new fitness and wellness seekers ◼ Increase brand awareness as NAF and LAF grow ◼ Targeted digital marketing to efficientl
Slide 24: Expand royalties
2424 Expand royalties Average Monthly Royalty Rate 2016 2020 3.7% 6.3% 63% 37% Franchises with <7% royalty rate Franchises with 7% royalty rate
Slide 25: Grow fitness equipment sales
2525 Grow fitness equipment sales • U.S franchisees required to purchase equipment from Planet Fitness ensuring consistency across all stores • Due to scale, we offer: • Competitive pricing • Stronger warranties and enhanced service levels • Convenient order and placement process Benefits to our fra
Slide 26: Investment Highlights
2626 Investment Highlights Differentiated fitness concept and exceptional value proposition that appeals to a broad demographic Strong store-level economics Highly attractive franchise system built for growth Predictable and recurring revenue streams with high cash flow conversion Market leader with
Slide 27: Appendix
Appendix
Slide 28: Adjusted EBITDA Reconciliation
2828 Adjusted EBITDA Reconciliation ($mm) Year Ended December 31, 2020 2019 2018 Net income (loss) (15.2) 135.4 103.2 Interest Income (3.0) (7.1) (4.7) Interest expense, net1 82.1 60.9 50.7 Provision for income taxes 0.7 37.8 28.6 Depreciation and amortization 53.8 44.3 35.3 EBITDA $118.5 $271.3 $21
Slide 29: Pro Forma Adjusted Net Income Reconciliation
2929 Pro Forma Adjusted Net Income Reconciliation ($mm) Year ended December 31, 2020 2019 2018 Net income (loss) (15.2) 135.4 103.2 Provision for income taxes, as reported 0.7 37.8 28.6 Purchase accounting adjustments – revenue1 0.3 0.8 1.0 Purchase accounting adjustments – rent2 0.5 0.4 0.7 Loss on
Slide 30: PLNT
3030 PLNT