Planet Fitness, Hampton, New Hampshire, reported $111.88 million in first quarter 2021 income, a 12.1 percent decrease from very first quarter 2020 when revenue ended up being $127.2 million, the ongoing company announced on might 6. It did, however, report adding 600,000 net members which are brand new the quarter, closing with 14.1 million memberships.
In addition stated that nearly 100 percent of its groups are now actually reopened and that it launched 22 places which can be brand new the quarter, bringing system-wide total shops to 2,146 at the time of March 31, 2021.
Planet Fitness CEO Chris Rondeau stated: “we have been extremely motivated by the clear and enhancement that is constant general sentiment we witnessed in the usa during the very first quarter additionally the matching impact it had on our company. We are very happy to announce that we experienced sequential member that is web in each month of the quarter, ending March with 14.1 million people. We believe the headline that is good on COVID-19 vaccine availability drove a seasonality change within our account styles as March account development exceeded March 2019, reinforcing our belief that folks are eager to get back in to our gyms.”
He anticipates the working environment will continue to be volatile into the term that is near. But, he expressed optimism as a result of the company’s membership and usage trends as well as its partnership that is current with company iFIT wellness & Fitness Inc.
“As we look to the long run, we believe our reason for boosting individuals everyday lives and developing a healthier globe sets us, and our franchisees, up for long-term success,” he stated.
Planet Fitness’ revenue comes from three sections: its franchisees, its groups which can be corporate-owned its equipment product sales to franchisees. The franchisee revenue increased $5.5 million or 9.5 % to $64.1 million compared to $58.5 million in first quarter 2020. Element of this part income includes reduced royalty and advertising that is national collections in the three months finished March 31, 2021, also reduced account amounts because of COVID-19, but those decreases had been offset by way of a deferral of $14.1 million of royalty income and $4.6 million of national advertising investment income in the 90 days ended March 31, 2020, that has been collected not recognized due to short-term store closures as a consequence of COVID-19.
One other two segments experienced revenue decreases. Corporate-owned shops section income decreased $2.6 million or 6.5 per cent to $37.9 million from $40.5 million into the 12 months period that is prior. The decrease had been mainly as a result of membership that is paid off and temporary store closures related to COVID-19, partially offset by the opening of five new corporate-owned stores since Jan. 1, 2020, and $5.9 million of deferred revenue that was gathered yet not recognized into the 90 days ended March 31, 2020, as a result of COVID-19 store closures, in line with the company.
Equipment section income decreased $18.2 million or 64.7 % to $9.9 million from $28.2 million into the year that is prior, because of lower gear sales to brand new and existing franchisee-owned shops in the three months ended March 31, 2021 set alongside the three months ended March 31, 2020. It was primarily as a result of supplying all franchisees having a expansion that is 12-month all new store development obligations and an 18-month expansion on re-equipment responsibilities, both as a result of COVID-19.
The organization is not supplying a 2021 full-year outlook at the moment due to the doubt surrounding the COVID-19 pandemic.