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Planet Fitness (PLNT) Sets IPO Price at $14-$16/Share

July 27, 2015 7:11 AM EDT

Planet Fitness, Inc. (NYSE: PLNT) amended its S-1 with the SEC for its upcoming initial public offering. The company plans to 13,500,000 shares of its Class A common stock at a price between $14-$16 per share. Shares will list on the NYSE under the ticker symbol "PLNT."

The company is selling 9,122,657 shares in the offering and selling shareholders are selling an additional 4,377,343 shares.

J.P. Morgan, BofA Merrill Lynch, Jefferies and Credit Suisse are acting as active book-running managers of the proposed offering with Guggenheim Securities, Robert W. Baird, William Blair and Piper Jaffray acting as junior book-running managers and Cowen & Company as a co-manager.

The underwriters will have a 30-day option to purchase up to an additional 2,025,000 shares of common stock.

Founded in 1992 in Dover, N.H., Planet Fitness is one of the largest and fastest-growing franchisors and operators of fitness centers in the United States by number of members and locations. As of March 31, 2015, Planet Fitness had more than 7.1 million members and 976 stores in 47 states, Puerto Rico and Canada. The Company's mission is to enhance people's lives by providing a high-quality fitness experience in a welcoming, non-intimidating environment, which we call the Judgement Free Zone.

Company growth highlights:

  • 918 stores as of December 31, 2014, compared to 389 as of December 31, 2010, reflecting a compound annual growth rate (“CAGR”) of 23.9%;
  • 6.1 million members as of December 31, 2014, compared to 2.3 million as of December 31, 2010, reflecting a CAGR of 27.6%;
  • 2014 system-wide sales of $1.2 billion, reflecting a CAGR of 30.1%, or increase of $774.3 million, since 2010;
  • 2014 total revenue of $279.8 million, reflecting a CAGR of 32.0%, or increase of $187.5 million, since 2010, of which 3.6% is attributable to revenues from corporate-owned stores acquired from or sold to franchisees since 2010;
  • 33 consecutive quarters of system-wide same store sales growth (which we define as year-over-year growth solely of monthly dues from stores that have been open and for which membership dues have been billed for longer than 12 months);
  • 2014 Adjusted EBITDA of $100.6 million, reflecting a CAGR of 45.3%, or increase of $78.0 million, since 2010; and
  • 2014 net income of $37.3 million, reflecting a CAGR of 22.6%, or increase of $20.8 million, since 2010. Our historical results benefit from insignificant income taxes due to our status as a pass-through entity for U.S. federal income tax purposes, and we anticipate future results will not be consistent as our income will be subject to U.S. federal and state taxes.


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