Planet Fitness, Inc. (PLNT) Stock | Positive Q3 2015 Financial Results

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Planet Fitness, Inc. (NASDAQ: PLNT)

 

Planet Fitness, Inc. (PLNT), a fitness center company on Thursday announced positive third quarter 2015 financial results. Total revenue was $68.8 million up 8.4% from third quarter 2014. Adjusted EBITDA was 26.5 million up 11.8% from third quarter 2014.  PLNT also announced they have opened 26 new Planet Fitness stores.

 

Planet Fitness, Inc. CEO Comments

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.”  PR Newswire

 

PLNT Technical Analysis

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PLNT gapped up in price on Friday to $16.92, up from the prior day’s close of $15.03, which is a 13% increase on the favorable news. Taking a look at the daily chart, we can see the last time PLNT traded above this price level was on October 16th, when it closed at $17.04. Taking a further look back on the chart, we can see PLNT has been in an overall decline dating back to September 3rd when it traded at $18.60. PLNT does have a low float of 15.52 million shares and was trading over 2 times the normal daily trading volume. For trading purposes, my entry point would have been $17.00 looking for a run to $17.50. My stop loss would have been $16.85, fearing anything below that and the stock would start to fill in the gap up.

 

Company Profile

Planet Fitness, Inc. is a holding company. The Company, through its subsidiary, Pla-Fit Holdings, LLC., is a franchisor and operator of fitness centers in the United States. The Company is engaged in licensing and selling franchises under the Planet Fitness trade name, owning and operating fitness centers under the Planet Fitness trade name and selling fitness-related equipment to franchisee-owned stores. The Company operates through three segments, including the Franchise segment, the Corporate-owned stores segment and the Equipment segment. The Company’s stores include around 20,000 square feet of area and offer Planet Fitness-branded cardio, circuit- and weight-training equipment. It also offers PE@PF fitness instruction program. As of June 30, 2015 the Company owned 1,014 stores, including 58 corporate-owned stores and 956 franchisee-owned stores. The Company offers standard and PF Black Card memberships. The Company offers water massage beds, massage chairs and tanning equipment, among others to its PF Black Card members.

The Company’s Franchise segment includes the operations related to its franchising business in the United States, Puerto Rico and Canada. The Company’s Corporate-owned stores segment includes the operations of corporate-owned stores across the United States and Canada. The Company sells Planet Fitness-branded apparel, beverages and other accessories. The Company’s Equipment segment includes the sale of equipment to franchisee-owned stores. The Company delivers and assembles equipment at each franchisee store.  Reuters

 

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