Planet Fitness ups guidance after Q3, starts new buyback

 Increases 2024 revenue and Adjusted EBITDA outlook

Initiated new $500 million share repurchase program upon $280 million share repurchase completion

Share Repurchase Program

On June 12, 2024, we entered into a $280 million accelerated share repurchase agreement (the "ASR Agreement") with Citibank, N.A. (the "Bank"). On June 14, 2024, we paid the Bank $280 million in cash and received approximately 3.1 million shares of our Class A common stock, which were retired.

Final settlement of the ASR Agreement occurred on September 16, 2024. At final settlement, the Bank delivered 0.7 million additional shares of the Company's Class A common stock, which were retired. The final number of shares repurchased was determined based on the volume-weighted average stock price of the Company's Class A common stock of $76.88 during the term of the transaction, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR Agreement.

On June 13, 2024, the Company's board of directors approved a share repurchase program of up to $500 million to replace the 2022 share repurchase program, which became effective on September 16, 2024 upon the completion of the ASR Agreement. As of September 30, 2024, there is $500 million remaining under the 2024 share repurchase program.

2024 Outlook

For the year ending December 31, 2024, the Company is reiterating the following expectations:

• New equipment placements of approximately 120 to 130 in franchisee-owned locations
• System-wide new club openings of approximately 140 to 150 locations

The following are the Company's growth expectations over its 2023 results:

• System-wide same club sales in the 4% to 5% percentage range (previously 3% to 5%)
• Revenue to increase in the 8% to 9% range (previously 4% to 6%)
• Adjusted EBITDA to increase in the 8% to 9% range (previously 7% to 9%)
• Adjusted net income to increase in the 8% to 9% range (previously 4% to 6%)
• Adjusted net income per share, diluted to increase in the 11% to 12% range (previously 7% to 9%), based on adjusted diluted weighted-average shares outstanding of approximately 86.5 million, inclusive of the shares repurchased as part of the ASR Agreement.

The Company continues to expect 2024 net interest expense to be approximately $75.0 million (excluding the write-off of deferred financing costs associated with our debt refinancing transaction). It also expects capital expenditures to increase approximately 20% (previously 25%) driven by additional clubs in our corporate-owned portfolio and depreciation and amortization to increase approximately 10% (previously 11% to 12%).

Investor Conference Call

The Company will hold a conference call at 8:00AM (ET) on November 7, 2024 to discuss the news announced in this press release. A live webcast of the conference call will be accessible at www.planetfitness.com via the "Investor Relations" link. The webcast will be archived on the website for one year.

https://www.prnewswire.com/news-releases/planet-fitness-inc-announces-third-quarter-2024-results-302298159.html