Planet Fitness (PLNT) IPO Opens 9% Lower

Today's IPO for Planet Fitness (NYSE: PLNT) opened for trading at $14.50 after pricing 13,500,000 shares of its Class A common stock at a public offering price of $16.00 per share.

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

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.

You May Also Be Interested In

• Nscale targets up to $3B in US IPO as soon as September - Bloomberg
• William Blair Starts Surrozen Inc. (SRZN) at Outperform
• Andersen prices secondary offering of 4.28M shares at $44 each