Planet Fitness has reported record results, with 16.6m members globally, according to its Q3 results. Shares jumped ten per cent on the news.

The company said 'system-wide, same-club sales' increased by 8.2 per cent in the quarter, leading to an increase in revenues of US$90.1m or 58.4 per cent to US$244.4m for the period.

This is up from US$154.3m the previous year, indicating income of around US$5 per-member-per-month.

"We continue our steady recovery from the pandemic," said CEO, Chris Rondeau. "We ended the quarter at an all-time record high for Planet Fitness. Member trends remained strong in the quarter with joins also back to pre-pandemic seasonality.

Members are continuing to visit more frequently, with cancelations lower than in 2019. "We believe this indicates that members are generally more committed to fitness," said Rondeau.

"We're focused on our efforts to continue to increase our penetration of all generations, with a strong emphasis on Gen Z, by converting teen participants from our recent High School Summer Pass Programme – and their parents and guardians – to paying members," he said.

Planet Fitness franchises increased revenues by US$5.4 million or 7.1 per cent to US$80.7 million from US$75.4m the year before.

This increase was due to a US$2.8m increase in franchise royalty revenue, a US$1.7m increase in 'equipment placement' revenue and a US$700k increase in National Advertising Fund revenue.

Partially offsetting the royalty revenue increases was a decrease of around US$2.6m as a result of the acquisition of Sunshine Fitness Growth Holdings which took place in the first quarter of 2022.

Adjusted EBITDA increased US$32.2m to US$93.9m from US$61.7m the year before, while franchise EBITDA increased US$1.4m to US$53.5m.

Corporate-owned clubs' EBITDA increased US$26.3m to US$40.4m, with US$24.9m of this attributable to the Sunshine Acquisition.

Planet Fitness said that although it had expected to upgrade equipment in 170 clubs, between 150 and 160 had been completed, with the slight delay due to a worsening of conditions in the supply chain.

For 2023, the company expects revenue to increase into the high-50 percent range, adjusted EBITDA to increase approximately 60 per cent and adjusted net income to increase into the low-100 per cent range

In terms of the cost of borrowing, Planet Fitness says it expects net interest expenses for 2022 to come in at around US$86m as a result of debt refinancing and upsizing.

The company arranged US$900m of securitised debt in January this year against its future earnings. The company has around US$1.75bn of debt.

Planet Fitness third quarter fiscal 2022 results summary

Total revenue increased from the prior year period by 58.4 per cent to US$244.4m.System-wide same club sales increased 8.2 per cent.

System-wide sales increased US$98m to US$968m, from US$870 million in the prior year period.Net income attributable to Planet Fitness, Inc. was US$26.9m, or $0.32 per diluted share, compared to US$17.4m, or US$0.21 per diluted share, in the prior year period.

Net income increased US$12.0m to US$30.7m, compared to US$18.6m in the prior year period.Adjusted net income(1) increased US$16.6m to US$38.2m, or $0.42 per diluted share, compared to $21.7m, or $0.25 per diluted share, in the prior year period.

Adjusted EBITDA(1) increased $32.2m to $93.9m from $61.7m in the prior year period.29 new Planet Fitness stores were opened during the period, bringing system-wide total stores to 2,353 as of September 30, 2022.

Repurchased and retired approximately 831,029 shares of Class A common stock using $50m of cash on hand.Cash of $467.2m, which includes cash and cash equivalents of $404.5m and restricted cash of $62.7m.

Read HCM's profile with Chris Rondeau here.