Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 04, 2017 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | PLNT | |
Entity Registrant Name | PLANET FITNESS, INC. | |
Entity Central Index Key | 1,637,207 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Class A Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 85,651,353 | |
Class B Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 12,701,228 |
Condensed consolidated balance
Condensed consolidated balance sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 78,521 | $ 40,393 |
Accounts receivable, net of allowance for bad debts of $79 and $687 at June 30, 2017 and December 31, 2016, respectively | 15,721 | 26,873 |
Due from related parties | 2,925 | 2,864 |
Inventory | 1,447 | 1,802 |
Restricted assets – national advertising fund | 859 | 3,074 |
Other receivables | 10,550 | 7,935 |
Other current assets | 7,330 | 8,284 |
Total current assets | 117,353 | 91,225 |
Property and equipment, net of accumulated depreciation of $32,700 as of June 30, 2017 and $30,987 as of December 31, 2016 | 67,564 | 61,238 |
Intangible assets, net | 244,437 | 253,862 |
Goodwill | 176,981 | 176,981 |
Deferred income taxes | 737,953 | 410,407 |
Other assets, net | 10,353 | 7,729 |
Total assets | 1,354,641 | 1,001,442 |
Current liabilities: | ||
Current maturities of long-term debt | 7,185 | 7,185 |
Accounts payable | 18,532 | 28,507 |
Accrued expenses | 12,215 | 19,190 |
Equipment deposits | 7,560 | 2,170 |
Deferred revenue, current | 20,271 | 17,780 |
Payable to related parties pursuant to tax benefit arrangements, current | 24,487 | 8,072 |
Other current liabilities | 565 | 369 |
Total current liabilities | 90,815 | 83,273 |
Long-term debt, net of current maturities | 699,175 | 702,003 |
Deferred rent, net of current portion | 5,166 | 5,108 |
Deferred revenue, net of current portion | 7,746 | 8,351 |
Deferred tax liabilities | 1,142 | 1,238 |
Payable to related parties pursuant to tax benefit arrangements, net of current portion | 702,566 | 410,999 |
Other liabilities | 4,786 | 5,225 |
Total noncurrent liabilities | 1,420,581 | 1,132,924 |
Commitments and contingencies (note 11) | ||
Stockholders' equity (deficit): | ||
Accumulated other comprehensive loss | (1,332) | (1,174) |
Additional paid in capital | 10,629 | 34,467 |
Accumulated deficit | (142,864) | (164,062) |
Total stockholders' deficit attributable to Planet Fitness Inc. | (133,557) | (130,759) |
Non-controlling interests | (23,198) | (83,996) |
Total stockholders' deficit | (156,755) | (214,755) |
Total liabilities and stockholders' deficit | 1,354,641 | 1,001,442 |
Class A Common Stock [Member] | ||
Stockholders' equity (deficit): | ||
Common stock, value | 9 | 6 |
Class B Common Stock [Member] | ||
Stockholders' equity (deficit): | ||
Common stock, value | $ 1 | $ 4 |
Condensed consolidated balance3
Condensed consolidated balance sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts receivable, allowance for bad debts | $ 79 | $ 687 |
Property and equipment, accumulated depreciation | $ 32,700 | $ 30,987 |
Class A Common Stock [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 300,000,000 | 300,000,000 |
Common stock, shares issued | 85,649,000 | 61,314,000 |
Common stock, shares outstanding | 85,649,000 | 61,314,000 |
Class B Common Stock [Member] | ||
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 12,701,000 | 37,185,000 |
Common stock, shares outstanding | 12,701,000 | 37,185,000 |
Condensed consolidated statemen
Condensed consolidated statements of operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenue: | ||||
Franchise | $ 32,791 | $ 25,506 | $ 63,072 | $ 46,997 |
Commission income | 5,003 | 3,973 | 11,519 | 10,159 |
Corporate-owned stores | 28,285 | 26,383 | 55,326 | 52,080 |
Equipment | 41,237 | 35,610 | 68,501 | 65,579 |
Total revenue | 107,316 | 91,472 | 198,418 | 174,815 |
Operating costs and expenses: | ||||
Cost of revenue | 31,452 | 27,801 | 52,576 | 51,440 |
Store operations | 14,604 | 15,760 | 29,788 | 30,492 |
Selling, general and administrative | 14,768 | 12,381 | 28,588 | 24,226 |
Depreciation and amortization | 7,894 | 7,678 | 15,845 | 15,382 |
Other loss (gain) | 348 | 21 | 316 | (165) |
Total operating costs and expenses | 69,066 | 63,641 | 127,113 | 121,375 |
Income from operations | 38,250 | 27,831 | 71,305 | 53,440 |
Other expense, net: | ||||
Interest expense, net | (9,028) | (6,161) | (17,791) | (12,528) |
Other (expense) income | (933) | (160) | (251) | 234 |
Total other expense, net | (9,961) | (6,321) | (18,042) | (12,294) |
Income before income taxes | 28,289 | 21,510 | 53,263 | 41,146 |
Provision for income taxes | 10,285 | 3,419 | 17,393 | 6,709 |
Net income | 18,004 | 18,091 | 35,870 | 34,437 |
Less net income attributable to non-controlling interests | 5,592 | 13,959 | 14,616 | 26,936 |
Net income attributable to Planet Fitness, Inc. | $ 12,412 | $ 4,132 | $ 21,254 | $ 7,501 |
Class A Common Stock [Member] | ||||
Net income per share of Class A common stock: | ||||
Basic | $ 0.16 | $ 0.11 | $ 0.30 | $ 0.20 |
Diluted | $ 0.16 | $ 0.11 | $ 0.30 | $ 0.20 |
Weighted-average shares of Class A common stock outstanding: | ||||
Basic | 79,153,778 | 36,771,417 | 71,678,755 | 36,684,701 |
Diluted | 79,193,050 | 36,773,112 | 71,712,769 | 36,686,187 |
Condensed consolidated stateme5
Condensed consolidated statements of comprehensive income (loss) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income including non-controlling interests | $ 18,004 | $ 18,091 | $ 35,870 | $ 34,437 |
Other comprehensive income (loss), net: | ||||
Unrealized gain (loss) on interest rate caps, net of tax | 179 | (79) | 356 | (662) |
Foreign currency translation adjustments | 13 | (3) | 5 | (96) |
Total other comprehensive income (loss), net | 192 | (82) | 361 | (758) |
Total comprehensive income including non-controlling interests | 18,196 | 18,009 | 36,231 | 33,679 |
Less: total comprehensive income attributable to non-controlling interests | 5,639 | 13,899 | 14,753 | 26,392 |
Total comprehensive income attributable to Planet Fitness, Inc. | $ 12,557 | $ 4,110 | $ 21,478 | $ 7,287 |
Condensed consolidated stateme6
Condensed consolidated statements of cash flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 35,870 | $ 34,437 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15,845 | 15,382 |
Amortization of deferred financing costs | 942 | 741 |
Amortization of favorable leases and asset retirement obligations | 184 | 198 |
Amortization of interest rate caps | 954 | 221 |
Deferred tax expense | 14,589 | 6,703 |
Loss on extinguishment of debt | 79 | |
Third party debt refinancing expense | 1,021 | |
Gain on re-measurement of tax benefit arrangement | (541) | |
Provision for bad debts | 28 | 13 |
Gain on disposal of property and equipment | (323) | (165) |
Equity-based compensation | 1,012 | 960 |
Changes in operating assets and liabilities, excluding effects of acquisitions: | ||
Accounts receivable | 11,542 | 7,785 |
Due to and due from related parties | (289) | 7,531 |
Inventory | 355 | 3,664 |
Other assets and other current assets | (3,239) | (3,074) |
Accounts payable and accrued expenses | (14,144) | (13,931) |
Other liabilities and other current liabilities | (33) | 4 |
Income taxes | (406) | (5,822) |
Payable to related parties pursuant to tax benefit arrangements | (7,909) | (6,007) |
Equipment deposits | 5,390 | (1,068) |
Deferred revenue | 1,826 | 2,232 |
Deferred rent | 245 | 282 |
Net cash provided by operating activities | 62,998 | 50,086 |
Cash flows from investing activities: | ||
Additions to property and equipment | (14,127) | (4,487) |
Proceeds from sale of property and equipment | 142 | |
Net cash used in investing activities | (14,127) | (4,345) |
Cash flows from financing activities: | ||
Principal payments on capital lease obligations | (25) | |
Repayment of long-term debt | (3,592) | (2,550) |
Payment of deferred financing and other debt-related costs | (1,278) | |
Premiums paid for interest rate caps | (366) | |
Proceeds from issuance of Class A common stock | 26 | |
Repurchase and retirement of Class B common stock | (1,583) | |
Dividend equivalent payments | (139) | |
Distributions to Continuing LLC Members | (5,592) | (17,472) |
Net cash used in financing activities | (10,941) | (21,630) |
Effects of exchange rate changes on cash and cash equivalents | 198 | 123 |
Net increase in cash and cash equivalents | 38,128 | 24,234 |
Cash and cash equivalents, beginning of period | 40,393 | 31,430 |
Cash and cash equivalents, end of period | 78,521 | 55,664 |
Supplemental cash flow information: | ||
Net cash paid for income taxes | 2,914 | 5,971 |
Cash paid for interest | 15,890 | 11,479 |
Non-cash investing activities: | ||
Non-cash additions to property and equipment | $ 988 | $ 226 |
Condensed consolidated stateme7
Condensed consolidated statement of changes in equity (deficit) - 6 months ended Jun. 30, 2017 - USD ($) shares in Thousands, $ in Thousands | Total | Accumulated Other Comprehensive (Loss) Income [Member] | Additional Paid-in capital [Member] | Accumulated Deficit [Member] | Non-Controlling Interests [Member] | Class A Common Stock [Member] | Class A Common Stock [Member]Common Stock [Member] | Class B Common Stock [Member] | Class B Common Stock [Member]Common Stock [Member] |
Beginning balance at Dec. 31, 2016 | $ (214,755) | $ (1,174) | $ 34,467 | $ (164,062) | $ (83,996) | $ 6 | $ 4 | ||
Beginning balance (shares) at Dec. 31, 2016 | 61,314 | 37,185 | |||||||
Net income | 35,870 | 21,254 | 14,616 | ||||||
Equity-based compensation expense | 1,012 | 1,046 | (34) | ||||||
Exchanges of Class B common stock, value issued | 51,220 | 3 | |||||||
Exchanges of Class B common stock, shares issued | 24,334 | ||||||||
Exchanges of Class B common stock, shares exchanged | (24,334) | ||||||||
Exchanges of Class B common stock, value exchanged | (382) | (50,838) | (3) | ||||||
Retirement of Class B common stock, shares | (150) | ||||||||
Exercise of stock options | 26 | 26 | |||||||
Exercise of stock options, shares | 1 | ||||||||
Tax benefit arrangement liability and deferred taxes arising from secondary offerings and other exchanges | 25,928 | 25,928 | |||||||
Forfeiture of dividend equivalents | 443 | 26 | 417 | ||||||
Distributions paid to members of Pla-Fit Holdings | (5,640) | (48) | (5,592) | ||||||
Other comprehensive income | 361 | 224 | 137 | ||||||
Ending balance at Jun. 30, 2017 | $ (156,755) | $ (1,332) | $ 10,629 | $ (142,864) | $ (23,198) | $ 9 | $ 1 | ||
Ending balance (shares) at Jun. 30, 2017 | 85,649 | 12,701 |
Business organization
Business organization | 6 Months Ended |
Jun. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Business organization | (1) Business organization Planet Fitness, Inc. (the “Company”), through its subsidiaries, is a franchisor and operator of fitness centers, with more than 10.4 million members and 1,403 owned and franchised locations (referred to as stores) in 48 states, the District of Columbia, Puerto Rico, Canada and the Dominican Republic as of June 30, 2017. The Company serves as the reporting entity for its various subsidiaries that operate three distinct lines of business: • Licensing and selling franchises under the Planet Fitness trade name. • Owning and operating fitness centers under the Planet Fitness trade name. • Selling fitness-related equipment to franchisee-owned stores. The Company was formed as a Delaware corporation on March 16, 2015 for the purpose of facilitating an initial public offering (the “IPO”) which was completed on August 11, 2015 and related transactions in order to carry on the business of Pla-Fit Holdings, LLC and its subsidiaries (“Pla-Fit Holdings”). As of August 5, 2015, in connection with the recapitalization transactions that occurred prior to the IPO, the Company became the sole managing member and holder of 100% of the voting power of Pla-Fit Holdings. Pla-Fit Holdings owns 100% of Planet Intermediate, LLC which has no operations but is the 100% owner of Planet Fitness Holdings, LLC, a franchisor and operator of fitness centers. With respect to the Company, Pla-Fit Holdings and Planet Intermediate, LLC, each entity owns nothing other than the respective entity below it in the corporate structure and each entity has no other material operations. Subsequent to the IPO and the related recapitalization transactions, the Company is a holding company whose principal asset is a controlling equity interest in Pla-Fit Holdings. As the sole managing member of Pla-Fit Holdings, the Company operates and controls all of the business and affairs of Pla-Fit Holdings, and through Pla-Fit Holdings, conducts its business. As a result, the Company consolidates Pla-Fit Holdings’ financial results and reports a non-controlling interest related to the portion of limited liability company units of Pla-Fit Holdings (“Holdings Units”) not owned by the Company. Unless otherwise specified, “the Company” refers to both Planet Fitness, Inc. and Pla-Fit Holdings throughout the remainder of these notes. In March 2017, the Company completed a secondary offering (“March Secondary Offering”) of 15,000,000 shares of its Class A common stock at a price of $20.44 per share. All of the shares sold in the March Secondary Offering were offered by certain existing holders of Holdings Units and TSG AIV II-A L.P and TSG PF Co-Investors A L.P. (“Direct TSG Investors”), funds affiliated with TSG Consumer Partners, LLC (“TSG”). The Company did not receive any proceeds from the sale of shares of Class A common stock offered by the Direct TSG Investors and the participating holders of Holdings Units. The shares sold in the March Secondary Offering consisted of (i) 4,790,758 existing shares of Class A common stock held by the Direct TSG Investors and (ii) 10,209,242 newly-issued shares of Class A common stock issued in connection with the exercise of the exchange right by the holders of Holdings Units that participated in the March Secondary Offering. Simultaneously, and in connection with the exchange, 10,209,242 shares of Class B common stock were surrendered by the holders of Holdings Units that participated in the March Secondary Offering and canceled. Additionally, in connection with the exchange, Planet Fitness, Inc. received 10,209,242 Holdings Units, increasing its total ownership interest in Pla-Fit Holdings. In May 2017, the Company completed a secondary offering (“May Secondary Offering”) of 16,085,510 shares of its Class A common stock at a price of $20.28 per share. All of the shares sold in the May Secondary Offering were offered by certain existing holders of Holdings Units and the Direct TSG Investors, funds affiliated with TSG. The Company did not receive any proceeds from the sale of shares of Class A common stock offered by the Direct TSG Investors and the participating holders of Holdings Units. The shares sold in the May Secondary Offering consisted of (i) 5,215,691 existing shares of Class A common stock held by the Direct TSG Investors and (ii) 10,869,819 newly-issued shares of Class A common stock issued in connection with the exercise of the exchange right by the holders of Holdings Units that participated in the May Secondary Offering. Simultaneously, and in connection with the exchange, 10,869,819 shares of Class B common stock were surrendered by the holders of Holdings Units that participated in the May Secondary Offering and canceled. Additionally, in connection with the exchange, Planet Fitness, Inc. received 10,869,819 Holdings Units, increasing its total ownership interest in Pla-Fit Holdings. In addition to the March Secondary Offering and May Secondary Offering, during the six months ended June 30, 2017, certain existing holders of Holdings Units have exercised their exchange rights and exchanged 3,254,455 Holdings Units for 3,254,455 newly-issued shares of Class A common stock. Simultaneously, and in connection with these exchanges, 3,254,455 shares of Class B common stock were surrendered by the holders of Holdings Units that exercised their exchange rights and canceled. Additionally, in connection with these exchanges, Planet Fitness, Inc. received 3,254,455 Holdings Units, increasing its total ownership interest in Pla-Fit Holdings. Following the completion of the March Secondary Offering, May Secondary Offering and other exchanges described above, and as of June 30, 2017, Planet Fitness, Inc. held 100% of the voting interest and 87.1% of the economic interest of Pla-Fit Holdings and the holders of Holdings Units of Pla-Fit Holdings (the “Continuing LLC Owners”) held the remaining 12.9% economic interest in Pla-Fit Holdings. As future exchanges of Holdings Units occur, Planet Fitness, Inc.’s economic interest in Pla-Fit Holdings will increase. |
Summary of significant accounti
Summary of significant accounting policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | (2) Summary of significant accounting policies (a) Basis of presentation and consolidation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, these interim financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented have been reflected. All significant intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements as of and for the three and six months ended June 30, 2017 and 2016 are unaudited. The condensed consolidated balance sheet as of December 31, 2016 has been derived from the audited financial statements at that date but does not include all of the disclosures required by U.S. GAAP. These interim condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (the “Annual Report”) filed with the SEC on March 6, 2017 . As discussed in Note 1, as a result of the recapitalization transactions, Planet Fitness, Inc. consolidates Pla-Fit Holdings. The Company also consolidates entities in which it has a controlling financial interest, the usual condition of which is ownership of a majority voting interest. The Company also considers for consolidation certain interests where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary. The primary beneficiary of a VIE is considered to possess the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the rights to receive benefits from the VIE that are significant to it. The principal entities in which the Company possesses a variable interest include franchise entities and certain other entities. The Company is not deemed to be the primary beneficiary for Planet Fitness franchise entities. Therefore, these entities are not consolidated. The results of the Company have been consolidated with Matthew Michael Realty LLC (“MMR”) and PF Melville LLC (“PF Melville”) based on the determination that the Company is the primary beneficiary with respect to these VIEs. These entities are real estate holding companies that derive a majority of their financial support from the Company through lease agreements for corporate stores. See Note 3 for further information related to the Company’s VIEs. (b) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Significant areas where estimates and judgments are relied upon by management in the preparation of the consolidated financial statements include revenue recognition, valuation of assets and liabilities in connection with acquisitions, valuation of equity-based compensation awards, the evaluation of the recoverability of goodwill and long-lived assets, including intangible assets, income taxes, including deferred tax assets and liabilities and reserves for unrecognized tax benefits, and the liability for the Company’s tax benefit arrangements. (c) Fair Value ASC 820, Fair Value Measurements and Disclosures Level 1—Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3—Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The table below presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016: Quoted Significant Total fair prices other Significant value at in active observable unobservable June 30, markets inputs inputs 2017 (Level 1) (Level 2) (Level 3) Interest rate caps $ 220 $ — $ 220 $ — Quoted Significant Total fair prices other Significant value at in active observable unobservable December 31, markets inputs inputs 2016 (Level 1) (Level 2) (Level 3) Interest rate caps $ 306 $ — $ 306 $ — (d) Recent accounting pronouncements The FASB issued ASU No. 2014-09, Revenue from Contracts with Customers The FASB issued ASU No. 2016-02, Leases The FASB issued ASU No. 2016-09, Stock Compensation The FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments The FASB issued ASU No. 2017-04, Intangibles–Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, |
Variable interest entities
Variable interest entities | 6 Months Ended |
Jun. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Variable interest entities | (3) Variable interest entities The carrying values of VIEs included in the consolidated financial statements as of June 30, 2017 and December 31, 2016 are as follows: June 30, 2017 December 31, 2016 Assets Liabilities Assets Liabilities PF Melville $ 4,245 $ — $ 4,071 $ — MMR 3,258 — 3,156 — Total $ 7,503 $ — $ 7,227 $ — The Company also has variable interests in certain franchisees mainly through the guarantee of certain debt and lease agreements as well as financing provided by the Company and by certain related parties to franchisees. The Company’s maximum obligation, as a result of its guarantees of leases and debt, is approximately $1,132 and $1,350 as of June 30, 2017 and December 31, 2016, respectively. The amount of the Company’s maximum obligation represents a loss that the Company could incur from the variability in credit exposure without consideration of possible recoveries through insurance or other means. In addition, the amount bears no relation to the ultimate settlement anticipated to be incurred from the Company’s involvement with these entities, which is estimated at $0. |
Goodwill and intangible assets
Goodwill and intangible assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | (4) Goodwill and intangible assets A summary of goodwill and intangible assets at June 30, 2017 and December 31, 2016 is as follows: Weighted average Gross amortization carrying Accumulated Net carrying June 30, 2017 period (years) amount amortization Amount Customer relationships 11.1 $ 171,782 (79,671 ) $ 92,111 Noncompete agreements 5.0 14,500 (13,477 ) 1,023 Favorable leases 7.5 2,935 (1,824 ) 1,111 Order backlog 0.4 3,400 (3,400 ) — Reacquired franchise rights 5.8 8,950 (5,058 ) 3,892 201,567 (103,430 ) 98,137 Indefinite-lived intangible: Trade and brand names N/A 146,300 — 146,300 Total intangible assets $ 347,867 $ (103,430 ) $ 244,437 Goodwill $ 176,981 $ — $ 176,981 Weighted average Gross amortization carrying Accumulated Net carrying December 31, 2016 period (years) amount amortization Amount Customer relationships 11.1 $ 171,782 $ (72,655 ) $ 99,127 Noncompete agreements 5.0 14,500 (12,027 ) 2,473 Favorable leases 7.5 2,935 (1,643 ) 1,292 Order backlog 0.4 3,400 (3,400 ) — Reacquired franchise rights 5.8 8,950 (4,280 ) 4,670 201,567 (94,005 ) 107,562 Indefinite-lived intangible: Trade and brand names N/A 146,300 — 146,300 Total intangible assets $ 347,867 $ (94,005 ) $ 253,862 Goodwill $ 176,981 $ — $ 176,981 The Company determined that no impairment charges were required during any periods presented. Amortization expense related to the intangible assets totaled $4,710 and $4,940 for the three months ended June 30, 2017 and 2016 three months ended June 30, 2017 and 2016 Amount Remainder of 2017 $ 8,789 2018 14,583 2019 14,215 2020 12,517 2021 12,422 Thereafter 35,611 Total $ 98,137 |
Long-term debt
Long-term debt | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Long-term debt | (5) Long-term debt Long-term debt as of June 30, 2017 and December 31, 2016 consists of the following: June 30, 2017 December 31, 2016 Term loan B requires quarterly installments plus interest through the term of the loan, maturing March 31, 2021. Outstanding borrowings bear interest at LIBOR or base rate (as defined) plus a margin at the election of the borrower (4.25% at June 30, 2017 and 4.33% at December 31, 2016) $ 713,062 $ 716,654 Revolving credit line, requires interest only payments through the term of the loan, maturing March 31, 2019. Outstanding borrowings bear interest at LIBOR or base rate (as defined) plus a margin at the election of the borrower (6.25% at June 30, 2017 and 6.00% December 31, 2016) — — Total debt, excluding deferred financing costs $ 713,062 716,654 Deferred financing costs, net of accumulated amortization (6,702 ) (7,466 ) Total debt 706,360 709,188 Current portion of long-term debt and line of credit 7,185 7,185 Long-term debt, net of current portion $ 699,175 $ 702,003 On May 26, 2017, the Company amended the credit agreement governing its senior secured credit facility to reduce the applicable interest rate margin for term loan borrowings by 50 basis points, with an additional 25 basis point reduction in applicable interest rate possible in the future so long as the Total Net Leverage Ratio (as defined in the credit agreement) is less than 3.50 to 1.00. The amendment to the credit agreement also reduced the interest rate margin for revolving loan borrowings by 25 basis points. In connection with the amendment to the credit agreement, during the three months ended June 30, 2017, the Company capitalized deferred financing costs of $257, recorded expense of $1,021 related to certain third party fees included in other expense on the consolidated statement of operations, and a loss on extinguishment of debt of $79 included in interest expense on the consolidated statement of operations. Future annual principal payments of long-term debt as of June 30, 2017 are as follows: Amount Remainder of 2017 $ 3,593 2018 7,185 2019 7,185 2020 7,185 2021 687,914 Total $ 713,062 |
Derivative instruments and hedg
Derivative instruments and hedging activities | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative instruments and hedging activities | (6) Derivative instruments and hedging activities The Company utilizes interest-rate-related derivative instruments to manage its exposure related to changes in interest rates on its variable-rate debt instruments. The Company does not enter into derivative instruments for any purpose other than cash flow hedging. The Company does not speculate using derivative instruments. By using derivative financial instruments to hedge exposures to changes in interest rates, the Company exposes itself to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is an asset, the counterparty owes the Company, which creates credit risk for the Company. When the fair value of a derivative contract is a liability, the Company owes the counterparty and, therefore, the Company is not exposed to the counterparty’s credit risk in those circumstances. The Company minimizes counterparty credit risk in derivative instruments by entering into transactions with high-quality counterparties whose credit rating is higher than A1/A+ at the inception of the derivative transaction. The derivative instruments entered into by the Company do not contain credit-risk-related contingent features. Market risk is the adverse effect on the value of a derivative instrument that results from a change in interest rates. The market risk associated with interest-rate contracts is managed by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken. The Company assesses interest rate risk by continually identifying and monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating hedging opportunities. The Company monitors interest rate risk attributable to both the Company’s outstanding or forecasted debt obligations as well as the Company’s offsetting hedge positions. In order to manage the market risk arising from the outstanding term loans, the Company has entered into a series of interest rate caps. The Company entered into two additional interest rate caps effective March 31, 2017 and terminating on March 31, 2019 with variable notional amounts in order to hedge one month LIBOR greater than 2.5%. As of June 30, 2017, the Company had interest rate cap agreements with notional amounts of $194,000 outstanding that were entered into in order to hedge three month LIBOR greater than 1.5%, and interest rate cap agreements with notional amounts of $163,429 that were entered into in order to hedge one month LIBOR greater than 2.5%. The interest rate cap balances of $220 and $306 were recorded within other assets in the condensed consolidated balance sheets as of June 30, 2017 and December 31, 2016, respectively. These amounts have been measured at fair value and are considered to be a Level 2 fair value measurement. The Company recorded an increase to the value of its interest rate caps of $180, net of tax of $89 and a reduction to the value of its interest rate caps of $79, net of tax of $15, within other comprehensive income (loss) during the three months ended June 30, 2017 and 2016, respectively, and an increase to the value of its interest rate caps of $356, net of tax of $145 and a reduction to the value of its interest rate caps of $662, net of tax of $128, within other comprehensive income (loss) during the six months ended June 30, 2017 and 2016, respectively. As of June 30, 2017, the Company does not expect to reclassify any amounts included in accumulated other comprehensive income (loss) into earnings during the next 12 months. Transactions and events expected to occur over the next 12 months that could necessitate reclassifying these derivatives’ loss to earnings include the re-pricing of variable-rate debt. |
Related party transactions
Related party transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related party transactions | (7) Related party transactions Amounts due from related parties of $2,925 and $2,864 as of June 30, 2017 and December 31, 2016, respectively, primarily relate to currently due or potential reimbursements for certain taxes accrued or paid by the Company (see Note 10). Activity with entities considered to be related parties is summarized below: For the three months ended June 30, For the six months ended June 30, 2017 2016 2017 2016 Franchise revenue $ 382 $ 412 $ 830 $ 833 Equipment revenue 554 174 573 767 Total revenue from related parties $ 936 $ 586 $ 1,403 $ 1,600 Additionally, the Company had deferred area development agreement revenue from related parties of $258 and $422 as of June 30, 2017 and December 31, 2016, respectively. As of June 30, 2017, the Company had $727,053 payable to related parties pursuant to tax benefit arrangements (see Note 10). The Company provides administrative services to the Planet Fitness NAF, LLC (“NAF”) and charges NAF a fee for providing those services. These services include accounting services, information technology, data processing, product development, legal and administrative support, and other operating expenses, which amounted to $428 and $438 for the three months ended June 30, 2017 and 2016, respectively, and $1,001 and $875 for the six months ended June 30, 2017 and 2016, respectively. |
Stockholder's equity
Stockholder's equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Stockholder's equity | (8) Stockholder’s equity Pursuant to the exchange agreement between the Company and the Continuing LLC Owners, the Continuing LLC Owners (or certain permitted transferees thereof) have the right, from time to time and subject to the terms of the exchange agreement, to exchange their Holdings Units, along with a corresponding number of shares of Class B common stock, for shares of Class A common stock (or cash at the option of the Company) on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends, reclassifications and similar transactions. In connection with any exchange by a Continuing LLC Owner of Holdings Units for shares of Class A common stock, the number of Holdings Units held by the Company is correspondingly increased as it acquires the exchanged Holdings Units, and a corresponding number of shares of Class B common stock are cancelled. In March 2017, the Company completed the March Secondary Offering of 15,000,000 shares of its Class A common stock at a price of $20.44 per share. All of the shares sold in the March Secondary Offering were offered by certain existing holders of Holdings Units and the Direct TSG Investors. The Company did not receive any proceeds from the sale of shares of Class A common stock offered by the Direct TSG Investors and the participating holders of Holdings Units. The shares sold in the March Secondary Offering consisted of (i) 4,790,758 existing shares of Class A common stock held by the Direct TSG Investors and (ii) 10,209,242 newly-issued shares of Class A common stock issued in connection with the exercise of the exchange right by the holders of Holdings Units that participated in the March Secondary Offering. Simultaneously, and in connection with the exchange, 10,209,242 shares of Class B common stock were surrendered by the holders of Holdings Units that participated in the March Secondary Offering and canceled. Additionally, in connection with the exchange, Planet Fitness, Inc. received 10,209,242 Holdings Units, increasing its total ownership interest in Pla-Fit Holdings. In May 2017, the Company completed the May Secondary Offering of 16,085,510 shares of its Class A common stock at a price of $20.28 per share. All of the shares sold in the May Secondary Offering were offered by certain existing holders of Holdings Units and the Direct TSG Investors. The Company did not receive any proceeds from the sale of shares of Class A common stock offered by the Direct TSG Investors and the participating holders of Holdings Units. The shares sold in the May Secondary Offering consisted of (i) 5,215,691 existing shares of Class A common stock held by the Direct TSG Investors and (ii) 10,869,819 newly-issued shares of Class A common stock issued in connection with the exercise of the exchange right by the holders of Holdings Units that participated in the May Secondary Offering. Simultaneously, and in connection with the exchange, 10,869,819 shares of Class B common stock were surrendered by the holders of Holdings Units that participated in the May Secondary Offering and canceled. Additionally, in connection with the exchange, Planet Fitness, Inc. received 10,869,819 Holdings Units, increasing its total ownership interest in Pla-Fit Holdings. In addition to the March Secondary Offering and May Secondary Offering, during the six months ended June 30, 2017, certain existing holders of Holdings Units exercised their exchange rights and exchanged 3,254,455 Holdings Units for 3,254,455 newly-issued shares of Class A common stock. Simultaneously, and in connection with these exchanges, 3,254,455 shares of Class B common stock were surrendered by the holders of Holdings Units that exercised their exchange rights and canceled. Additionally, in connection with these exchanges, Planet Fitness, Inc. received 3,254,455 Holdings Units, increasing its total ownership interest in Pla-Fit Holdings. As a result of these transactions, as of June 30, 2017: • Holders of our Class A common stock owned 85,648,906 shares of our Class A common stock, representing 87.1% of the voting power in the Company and, through the Company, 85,648,906 Holdings Units representing 87.1% of the economic interest in Pla-Fit Holdings; • the Continuing LLC Owners collectively owned 12,701,228 Holdings Units, representing 12.9% of the economic interest in Pla-Fit Holdings and 12,701,228 shares of our Class B common stock, representing 12.9% of the voting power in the Company. |
Earnings per share
Earnings per share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per share | (9) Earnings per share Basic earnings per share of Class A common stock is computed by dividing net income attributable to Planet Fitness, Inc. by the weighted-average number of shares of Class A common stock outstanding during the same period. Diluted earnings per share of Class A common stock is computed by dividing net income attributable to Planet Fitness, Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities. Shares of the Company’s Class B common stock do not share in the earnings or losses attributable to Planet Fitness, Inc. and are therefore not participating securities. As such, separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been presented. Shares of the Company’s Class B common stock are, however, considered potentially dilutive shares of Class A common stock because shares of Class B common stock, together with the related Holdings Units, are exchangeable into shares of Class A common stock on a one-for-one basis. The following table sets forth reconciliations used to compute basic and diluted earnings per share of Class A common stock: Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Numerator Net income $ 18,004 $ 18,091 $ 35,870 $ 34,437 Less: net income attributable to non-controlling interests 5,592 13,959 14,616 26,936 Net income attributable to Planet Fitness, Inc. $ 12,412 $ 4,132 $ 21,254 $ 7,501 Denominator Weighted-average shares of Class A common stock outstanding - basic 79,153,778 36,771,417 71,678,755 36,684,701 Effect of dilutive securities: Stock options 33,564 - 28,893 - Restricted stock units 5,708 1,695 5,121 1,486 Weighted-average shares of Class A common stock outstanding - diluted 79,193,050 36,773,112 71,712,769 36,686,187 Earnings per share of Class A common stock - basic $ 0.16 $ 0.11 $ 0.30 $ 0.20 Earnings per share of Class A common stock - diluted $ 0.16 $ 0.11 $ 0.30 $ 0.20 Weighted average shares of Class B common stock of 19,197,461 and 61,795,837 for the three months ended June 30, 2017 and 2016, respectively, and 26,745,818 and 61,951,804 for the six months ended June 30, 2017 and 2016, respectively, were evaluated under the if-converted method for potential dilutive effects and were determined to be anti-dilutive. Weighted average stock options outstanding of 491,856 and 218,941 for the three months ended June 30, 2017 and 2016, respectively, and 302,457 and 172,975 for the six months ended June 30, 2017 and 2016, respectively, were evaluated under the treasury stock method for potential dilutive effects and were determined to be anti-dilutive. |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income taxes | (10) Income taxes The Company is the sole managing member of Pla-Fit Holdings, which is treated as a partnership for U.S. federal and certain state and local income taxes. As a partnership, Pla-Fit Holdings is not subject to U.S. federal and certain state and local income taxes. Any taxable income or loss generated by Pla-Fit Holdings is passed through to and included in the taxable income or loss of its members, including the Company, on a pro rata basis. Planet Fitness, Inc. is subject to U.S. federal income taxes, in addition to state and local income taxes with respect to our allocable share of any taxable income of Pla-Fit Holdings. The Company is also subject to taxes in foreign jurisdictions. The Company incurs U.S. federal and state income taxes on its pro rata share of income flowed through from Pla-Fit Holdings. Our effective tax rate on such income was approximately 39.5% for the three and six months ended June 30, 2017 and 2016. The provision for income taxes also reflects an effective state tax rate of 2.0% for the three and six months ended June 30, 2017 and 2.1% for three and six months ended June 30, 2016, applied to non-controlling interests, representing the remaining percentage of income before taxes, excluding income from variable interest entities, related to Pla-Fit Holdings. Undistributed earnings of foreign operations were not material for the three and six months ended June 30, 2017 and 2016. Net deferred tax assets of $737,953 and $410,407 as of June 30, 2017 and December 31, 2016, respectively, relate primarily to the tax effects of temporary differences in the book basis as compared to the tax basis of our investment in Pla-Fit Holdings as a result of the secondary offerings, other exchanges, recapitalization transactions and IPO. As of June 30, 2017, the Company does not have any material net operating loss carryforwards. As of June 30, 2017 and December 31, 2016, the total liability related to uncertain tax positions was $2,608. The Company recognizes interest accrued and penalties, if applicable, related to unrecognized tax benefits in income tax expense. As of June 30, 2017, the Company anticipates that the liability for unrecognized tax benefits could decrease by up to $2,608 within the next 12 months due to the expiration of certain statutes of limitation or the settlement of examinations or issues with tax authorities. Interest and penalties for the three and six months ended June 30, 2017 and 2016 were not material. Tax benefit arrangements The Company’s acquisition of Holdings Units in connection with the IPO and future and certain past exchanges of Holdings Units for shares of the Company’s Class A common stock (or cash at the option of the Company) are expected to produce and have produced favorable tax attributes. In connection with the IPO, the Company entered into two tax receivable agreements. Under the first of those agreements, the Company generally is required to pay to certain existing and previous equity owners of Pla-Fit Holdings (the “TRA Holders”) 85% of the applicable tax savings, if any, in U.S. federal and state income tax that the Company is deemed to realize as a result of certain tax attributes of their Holdings Units sold to the Company (or exchanged in a taxable sale) and that are created as a result of (i) the sales of their Holdings Units for shares of Class A common stock and (ii) tax benefits attributable to payments made under the tax receivable agreement (including imputed interest). Under the second tax receivable agreement, the Company generally is required to pay to the Direct TSG Investors 85% of the amount of tax savings, if any, that the Company is deemed to realize as a result of the tax attributes of the Holdings Units held in respect of the Direct TSG Investors’ interest in the Company, which resulted from the Direct TSG Investors’ purchase of interests in Pla-Fit Holdings in 2012, and certain other tax benefits. Under both agreements, the Company generally retains the benefit of the remaining 15% of the applicable tax savings. In connection with the March Secondary Offering, May Secondary Offering, and related and other exchanges during the six months ended June 30, 2017, 24,333,516 Holdings Units were redeemed by the TRA Holders for newly issued shares of Class A common stock, resulting in an increase in the tax basis of the net assets of Pla-Fit Holdings subject to the provisions of the tax receivable agreements. As a result of the change in Planet Fitness, Inc.’s ownership percentage of Pla-Fit Holdings that occurred in conjunction with the exchanges, we recorded a decrease to our net deferred tax assets of $22,479 during the six months ended June 30, 2017. As a result of these exchanges, during the six months ended June 30, 2017, we also recognized deferred tax assets in the amount of $364,839, and corresponding tax benefit arrangement liabilities of $316,432, representing 85% of the tax benefits due to the TRA Holders. The offset to the entries recorded in connection with exchanges was to equity. As of June 30, 2017 and December 31, 2016, the Company had a liability of $727,053 and $419,071, respectively, related to its projected obligations under the tax benefit arrangements. Projected future payments under the tax benefit arrangements are as follows: Amount Remainder of 2017 $ 3,507 2018 29,972 2019 35,740 2020 35,503 2021 36,548 Thereafter 585,783 Total $ 727,053 |
Commitments and contingencies
Commitments and contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and contingencies | (11) Commitments and contingencies From time to time, and in the ordinary course of business, the Company is subject to various claims, charges, and litigation, such as employment-related claims and slip and fall cases. The Company is not currently aware of any legal proceedings or claims that the Company believes will have, individually or in the aggregate, a material adverse effect on the Company’s financial position or result of operations. |
Segments
Segments | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segments | (12) Segments The Company has three reportable segments: (i) Franchise; (ii) Corporate-owned stores; and (iii) Equipment. The Company’s operations are organized and managed by type of products and services and segment information is reported accordingly. The Company’s chief operating decision maker (the “CODM”) is its Chief Executive Officer. The CODM reviews financial performance and allocates resources by reportable segment. There have been no operating segments aggregated to arrive at the Company’s reportable segments. The Franchise segment includes operations related to the Company’s franchising business in the United States, Puerto Rico, Canada and the Dominican Republic. The Corporate-owned stores segment includes operations with respect to all Corporate-owned stores throughout the United States and Canada. The Equipment segment includes the sale of equipment to franchisee-owned stores. The accounting policies of the reportable segments are the same as those described in Note 2. The Company evaluates the performance of its segments and allocates resources to them based on revenue and earnings before interest, taxes, depreciation, and amortization, referred to as Segment EBITDA. Revenues for all operating segments include only transactions with unaffiliated customers and include no intersegment revenues. The tables below summarize the financial information for the Company’s reportable segments for the three and six months ended June 30, 2017 and 2016. The “Corporate and other” category, as it relates to Segment EBITDA, primarily includes corporate overhead costs, such as payroll and related benefit costs and professional services which are not directly attributable to any individual segment. Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Revenue Franchise segment revenue - U.S. $ 37,017 $ 29,143 $ 73,445 $ 56,373 Franchise segment revenue - International 777 336 1,146 783 Franchise segment total 37,794 29,479 74,591 57,156 Corporate-owned stores - U.S. 27,210 25,306 53,183 50,004 Corporate-owned stores - International 1,075 1,077 2,143 2,076 Corporate-owned stores total 28,285 26,383 55,326 52,080 Equipment segment - U.S. 41,237 35,610 68,501 65,579 Equipment segment total 41,237 35,610 68,501 65,579 Total revenue $ 107,316 $ 91,472 $ 198,418 $ 174,815 Franchise segment revenue includes franchise revenue and commission income. Franchise revenue includes revenue generated from placement services of $2,871 and $2,653 for the three months ended June 30, 2017 and 2016, respectively, and $4,977 and $4,728 for the six months ended June 30, 2017 and 2016, respectively. Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Segment EBITDA Franchise $ 32,487 $ 24,682 $ 64,519 $ 48,494 Corporate-owned stores 12,840 9,547 23,533 19,709 Equipment 9,809 7,859 15,904 14,177 Corporate and other (9,925 ) (6,739 ) (17,057 ) (13,324 ) Total Segment EBITDA $ 45,211 $ 35,349 $ 86,899 $ 69,056 The following table reconciles total Segment EBITDA to income before taxes: Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Total Segment EBITDA $ 45,211 $ 35,349 $ 86,899 $ 69,056 Less: Depreciation and amortization 7,894 7,678 15,845 15,382 Other (income) expense (933 ) (160 ) (251 ) 234 Income from operations 38,250 27,831 71,305 53,440 Interest expense, net (9,028 ) (6,161 ) (17,791 ) (12,528 ) Other (income) expense (933 ) (160 ) (251 ) 234 Income before income taxes $ 28,289 $ 21,510 $ 53,263 $ 41,146 The following table summarizes the Company’s assets by reportable segment: June 30, 2017 December 31, 2016 Franchise $ 236,008 $ 202,580 Corporate-owned stores 151,389 153,761 Equipment 185,252 208,809 Unallocated 781,992 436,292 Total consolidated assets $ 1,354,641 $ 1,001,442 The table above includes $2,665 and $2,795 of long-lived assets located in the Company’s corporate-owned stores in Canada as of June 30, 2017 and December 31, 2016, respectively. All other assets are located in the U.S. The following table summarizes the Company’s goodwill by reportable segment: June 30, 2017 December 31, 2016 Franchise $ 16,938 $ 16,938 Corporate-owned stores 67,377 67,377 Equipment 92,666 92,666 Consolidated goodwill $ 176,981 $ 176,981 |
Corporate-owned and franchisee-
Corporate-owned and franchisee-owned stores | 6 Months Ended |
Jun. 30, 2017 | |
Other Industries [Abstract] | |
Corporate-owned and franchisee-owned stores | (13) Corporate-owned and franchisee-owned stores The following table shows changes in our corporate-owned and franchisee-owned stores for the three and six months ended June 30, 2017 and 2016: For the three months ended June 30, For the six months ended June 30, 2017 2016 2017 2016 Franchisee-owned stores: Stores operated at beginning of period 1,309 1,113 1,255 1,066 New stores opened 37 36 91 84 Stores debranded or consolidated (1) (1 ) (1 ) (1 ) (2 ) Stores operated at end of period 1,345 1,148 1,345 1,148 Corporate-owned stores: Stores operated at beginning of period 58 58 58 58 New stores opened — — — — Stores operated at end of period 58 58 58 58 Total stores: Stores operated at beginning of period 1,367 1,171 1,313 1,124 New stores opened 37 36 91 84 Stores debranded or consolidated (1) (1 ) (1 ) (1 ) (2 ) Stores operated at end of period 1,403 1,206 1,403 1,206 (1) The term “debrand” refers to a franchisee-owned store whose right to use the Planet Fitness brand and marks has been terminated in accordance with the franchise agreement. We retain the right to prevent debranded stores from continuing to operate as fitness centers. The term “consolidated” refers to the combination of a franchisee’s store with another store located in close proximity with our prior approval. This often coincides with an enlargement, re-equipment and/or refurbishment of the remaining store. |
Summary of significant accoun21
Summary of significant accounting policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of presentation and consolidation | (a) Basis of presentation and consolidation The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, these interim financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented have been reflected. All significant intercompany balances and transactions have been eliminated in consolidation. The condensed consolidated financial statements as of and for the three and six months ended June 30, 2017 and 2016 are unaudited. The condensed consolidated balance sheet as of December 31, 2016 has been derived from the audited financial statements at that date but does not include all of the disclosures required by U.S. GAAP. These interim condensed consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2016 (the “Annual Report”) filed with the SEC on March 6, 2017 . As discussed in Note 1, as a result of the recapitalization transactions, Planet Fitness, Inc. consolidates Pla-Fit Holdings. The Company also consolidates entities in which it has a controlling financial interest, the usual condition of which is ownership of a majority voting interest. The Company also considers for consolidation certain interests where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a variable interest entity (“VIE”), is required to be consolidated by its primary beneficiary. The primary beneficiary of a VIE is considered to possess the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the rights to receive benefits from the VIE that are significant to it. The principal entities in which the Company possesses a variable interest include franchise entities and certain other entities. The Company is not deemed to be the primary beneficiary for Planet Fitness franchise entities. Therefore, these entities are not consolidated. The results of the Company have been consolidated with Matthew Michael Realty LLC (“MMR”) and PF Melville LLC (“PF Melville”) based on the determination that the Company is the primary beneficiary with respect to these VIEs. These entities are real estate holding companies that derive a majority of their financial support from the Company through lease agreements for corporate stores. See Note 3 for further information related to the Company’s VIEs. |
Use of estimates | (b) Use of estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Significant areas where estimates and judgments are relied upon by management in the preparation of the consolidated financial statements include revenue recognition, valuation of assets and liabilities in connection with acquisitions, valuation of equity-based compensation awards, the evaluation of the recoverability of goodwill and long-lived assets, including intangible assets, income taxes, including deferred tax assets and liabilities and reserves for unrecognized tax benefits, and the liability for the Company’s tax benefit arrangements. |
Fair Value | (c) Fair Value ASC 820, Fair Value Measurements and Disclosures Level 1—Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2—Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Level 3—Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The table below presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016: Quoted Significant Total fair prices other Significant value at in active observable unobservable June 30, markets inputs inputs 2017 (Level 1) (Level 2) (Level 3) Interest rate caps $ 220 $ — $ 220 $ — Quoted Significant Total fair prices other Significant value at in active observable unobservable December 31, markets inputs inputs 2016 (Level 1) (Level 2) (Level 3) Interest rate caps $ 306 $ — $ 306 $ — |
Recent accounting pronouncements | (d) Recent accounting pronouncements The FASB issued ASU No. 2014-09, Revenue from Contracts with Customers The FASB issued ASU No. 2016-02, Leases The FASB issued ASU No. 2016-09, Stock Compensation The FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments The FASB issued ASU No. 2017-04, Intangibles–Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, |
Summary of significant accoun22
Summary of significant accounting policies (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Company's Assets and Liabilities Measured at Fair Value on Recurring Basis | The table below presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2017 and December 31, 2016: Quoted Significant Total fair prices other Significant value at in active observable unobservable June 30, markets inputs inputs 2017 (Level 1) (Level 2) (Level 3) Interest rate caps $ 220 $ — $ 220 $ — Quoted Significant Total fair prices other Significant value at in active observable unobservable December 31, markets inputs inputs 2016 (Level 1) (Level 2) (Level 3) Interest rate caps $ 306 $ — $ 306 $ — |
Variable interest entities (Tab
Variable interest entities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Carrying Value of Variable Interest Entities of Consolidated Financial Statements | The carrying values of VIEs included in the consolidated financial statements as of June 30, 2017 and December 31, 2016 are as follows: June 30, 2017 December 31, 2016 Assets Liabilities Assets Liabilities PF Melville $ 4,245 $ — $ 4,071 $ — MMR 3,258 — 3,156 — Total $ 7,503 $ — $ 7,227 $ — |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill and Intangible Assets | A summary of goodwill and intangible assets at June 30, 2017 and December 31, 2016 is as follows: Weighted average Gross amortization carrying Accumulated Net carrying June 30, 2017 period (years) amount amortization Amount Customer relationships 11.1 $ 171,782 (79,671 ) $ 92,111 Noncompete agreements 5.0 14,500 (13,477 ) 1,023 Favorable leases 7.5 2,935 (1,824 ) 1,111 Order backlog 0.4 3,400 (3,400 ) — Reacquired franchise rights 5.8 8,950 (5,058 ) 3,892 201,567 (103,430 ) 98,137 Indefinite-lived intangible: Trade and brand names N/A 146,300 — 146,300 Total intangible assets $ 347,867 $ (103,430 ) $ 244,437 Goodwill $ 176,981 $ — $ 176,981 Weighted average Gross amortization carrying Accumulated Net carrying December 31, 2016 period (years) amount amortization Amount Customer relationships 11.1 $ 171,782 $ (72,655 ) $ 99,127 Noncompete agreements 5.0 14,500 (12,027 ) 2,473 Favorable leases 7.5 2,935 (1,643 ) 1,292 Order backlog 0.4 3,400 (3,400 ) — Reacquired franchise rights 5.8 8,950 (4,280 ) 4,670 201,567 (94,005 ) 107,562 Indefinite-lived intangible: Trade and brand names N/A 146,300 — 146,300 Total intangible assets $ 347,867 $ (94,005 ) $ 253,862 Goodwill $ 176,981 $ — $ 176,981 |
Summary of Amortization expenses | The anticipated annual amortization expense to be recognized in future years as of June 30, 2017 is as follows: Amount Remainder of 2017 $ 8,789 2018 14,583 2019 14,215 2020 12,517 2021 12,422 Thereafter 35,611 Total $ 98,137 |
Long-term debt (Tables)
Long-term debt (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt as of June 30, 2017 and December 31, 2016 consists of the following: June 30, 2017 December 31, 2016 Term loan B requires quarterly installments plus interest through the term of the loan, maturing March 31, 2021. Outstanding borrowings bear interest at LIBOR or base rate (as defined) plus a margin at the election of the borrower (4.25% at June 30, 2017 and 4.33% at December 31, 2016) $ 713,062 $ 716,654 Revolving credit line, requires interest only payments through the term of the loan, maturing March 31, 2019. Outstanding borrowings bear interest at LIBOR or base rate (as defined) plus a margin at the election of the borrower (6.25% at June 30, 2017 and 6.00% December 31, 2016) — — Total debt, excluding deferred financing costs $ 713,062 716,654 Deferred financing costs, net of accumulated amortization (6,702 ) (7,466 ) Total debt 706,360 709,188 Current portion of long-term debt and line of credit 7,185 7,185 Long-term debt, net of current portion $ 699,175 $ 702,003 |
Schedule of Future Annual Payments of Long-term Debt | Future annual principal payments of long-term debt as of June 30, 2017 are as follows: Amount Remainder of 2017 $ 3,593 2018 7,185 2019 7,185 2020 7,185 2021 687,914 Total $ 713,062 |
Related party transactions (Tab
Related party transactions (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Activity with entities considered to be related parties is summarized below: For the three months ended June 30, For the six months ended June 30, 2017 2016 2017 2016 Franchise revenue $ 382 $ 412 $ 830 $ 833 Equipment revenue 554 174 573 767 Total revenue from related parties $ 936 $ 586 $ 1,403 $ 1,600 |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerators and Denominators Used to Compute Basic and Diluted Earnings per Share | The following table sets forth reconciliations used to compute basic and diluted earnings per share of Class A common stock: Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Numerator Net income $ 18,004 $ 18,091 $ 35,870 $ 34,437 Less: net income attributable to non-controlling interests 5,592 13,959 14,616 26,936 Net income attributable to Planet Fitness, Inc. $ 12,412 $ 4,132 $ 21,254 $ 7,501 Denominator Weighted-average shares of Class A common stock outstanding - basic 79,153,778 36,771,417 71,678,755 36,684,701 Effect of dilutive securities: Stock options 33,564 - 28,893 - Restricted stock units 5,708 1,695 5,121 1,486 Weighted-average shares of Class A common stock outstanding - diluted 79,193,050 36,773,112 71,712,769 36,686,187 Earnings per share of Class A common stock - basic $ 0.16 $ 0.11 $ 0.30 $ 0.20 Earnings per share of Class A common stock - diluted $ 0.16 $ 0.11 $ 0.30 $ 0.20 |
Income taxes (Tables)
Income taxes (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Future Payments Under Tax Benefit Arrangements | Projected future payments under the tax benefit arrangements are as follows: Amount Remainder of 2017 $ 3,507 2018 29,972 2019 35,740 2020 35,503 2021 36,548 Thereafter 585,783 Total $ 727,053 |
Segments (Tables)
Segments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Summary of Financial Information for the Company's Reportable Segments | The tables below summarize the financial information for the Company’s reportable segments for the three and six months ended June 30, 2017 and 2016. Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Revenue Franchise segment revenue - U.S. $ 37,017 $ 29,143 $ 73,445 $ 56,373 Franchise segment revenue - International 777 336 1,146 783 Franchise segment total 37,794 29,479 74,591 57,156 Corporate-owned stores - U.S. 27,210 25,306 53,183 50,004 Corporate-owned stores - International 1,075 1,077 2,143 2,076 Corporate-owned stores total 28,285 26,383 55,326 52,080 Equipment segment - U.S. 41,237 35,610 68,501 65,579 Equipment segment total 41,237 35,610 68,501 65,579 Total revenue $ 107,316 $ 91,472 $ 198,418 $ 174,815 Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Segment EBITDA Franchise $ 32,487 $ 24,682 $ 64,519 $ 48,494 Corporate-owned stores 12,840 9,547 23,533 19,709 Equipment 9,809 7,859 15,904 14,177 Corporate and other (9,925 ) (6,739 ) (17,057 ) (13,324 ) Total Segment EBITDA $ 45,211 $ 35,349 $ 86,899 $ 69,056 |
Reconciliation of Total Segment EBITDA to Income Before Taxes | The following table reconciles total Segment EBITDA to income before taxes: Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 Total Segment EBITDA $ 45,211 $ 35,349 $ 86,899 $ 69,056 Less: Depreciation and amortization 7,894 7,678 15,845 15,382 Other (income) expense (933 ) (160 ) (251 ) 234 Income from operations 38,250 27,831 71,305 53,440 Interest expense, net (9,028 ) (6,161 ) (17,791 ) (12,528 ) Other (income) expense (933 ) (160 ) (251 ) 234 Income before income taxes $ 28,289 $ 21,510 $ 53,263 $ 41,146 |
Summary of Company's Assets by Reportable Segment | The following table summarizes the Company’s assets by reportable segment: June 30, 2017 December 31, 2016 Franchise $ 236,008 $ 202,580 Corporate-owned stores 151,389 153,761 Equipment 185,252 208,809 Unallocated 781,992 436,292 Total consolidated assets $ 1,354,641 $ 1,001,442 |
Summary of Company's Goodwill by Reportable Segment | The following table summarizes the Company’s goodwill by reportable segment: June 30, 2017 December 31, 2016 Franchise $ 16,938 $ 16,938 Corporate-owned stores 67,377 67,377 Equipment 92,666 92,666 Consolidated goodwill $ 176,981 $ 176,981 |
Corporate-owned and franchise30
Corporate-owned and franchisee-owned stores (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Other Industries [Abstract] | |
Schedule of Changes in Corporate-owned and Franchisee-owned Stores | The following table shows changes in our corporate-owned and franchisee-owned stores for the three and six months ended June 30, 2017 and 2016: For the three months ended June 30, For the six months ended June 30, 2017 2016 2017 2016 Franchisee-owned stores: Stores operated at beginning of period 1,309 1,113 1,255 1,066 New stores opened 37 36 91 84 Stores debranded or consolidated (1) (1 ) (1 ) (1 ) (2 ) Stores operated at end of period 1,345 1,148 1,345 1,148 Corporate-owned stores: Stores operated at beginning of period 58 58 58 58 New stores opened — — — — Stores operated at end of period 58 58 58 58 Total stores: Stores operated at beginning of period 1,367 1,171 1,313 1,124 New stores opened 37 36 91 84 Stores debranded or consolidated (1) (1 ) (1 ) (1 ) (2 ) Stores operated at end of period 1,403 1,206 1,403 1,206 (1) The term “debrand” refers to a franchisee-owned store whose right to use the Planet Fitness brand and marks has been terminated in accordance with the franchise agreement. We retain the right to prevent debranded stores from continuing to operate as fitness centers. The term “consolidated” refers to the combination of a franchisee’s store with another store located in close proximity with our prior approval. This often coincides with an enlargement, re-equipment and/or refurbishment of the remaining store. |
Business Organization - Additio
Business Organization - Additional Information (Detail) | 1 Months Ended | 6 Months Ended | ||||||
May 31, 2017$ / sharesshares | Mar. 31, 2017Store$ / sharesshares | Jun. 30, 2017MemberStoreStateshares | Dec. 31, 2016Store | Jun. 30, 2016Store | Mar. 31, 2016Store | Dec. 31, 2015Store | Aug. 05, 2015 | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Number of members | Member | 10,400,000 | |||||||
Number of owned and franchised locations | Store | 1,367 | 1,403 | 1,313 | 1,206 | 1,171 | 1,124 | ||
Number of states in which entity operates | State | 48 | |||||||
Date of formation | Mar. 16, 2015 | |||||||
Holdings Units [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Stock issued during period, shares, conversion of units | 3,254,455 | |||||||
Class A Common Stock [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Number of stock issued during period | 3,254,455 | |||||||
Stock issued during period, shares, conversion of units | 24,334,000 | |||||||
Class B Common Stock [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Number of shares exchanged | 3,254,455 | |||||||
Secondary Offering [Member] | Class A Common Stock [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Number of stock issued during period | 16,085,510 | 15,000,000 | ||||||
Share price | $ / shares | $ 20.28 | $ 20.44 | ||||||
Secondary Offering [Member] | Class A Common Stock [Member] | Direct TSG Investors [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Number of stock issued during period | 5,215,691 | 4,790,758 | ||||||
Secondary Offering [Member] | Class A Common Stock [Member] | Holdings Units [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Number of stock issued during period | 10,869,819 | 10,209,242 | ||||||
Secondary Offering [Member] | Class B Common Stock [Member] | Holdings Units [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Number of shares exchanged | 10,869,819 | 10,209,242 | ||||||
Pla-Fit Holdings, LLC [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Percentage of ownership | 100.00% | 100.00% | ||||||
Percentage of economic interest | 87.10% | |||||||
Pla-Fit Holdings, LLC [Member] | Holdings Units [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Percentage of economic interest | 12.90% | |||||||
Pla-Fit Holdings, LLC [Member] | Secondary Offering [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Number of units held by owners | 10,869,819 | 10,209,242 | ||||||
Pla-Fit Holdings, LLC [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Number of units held by owners | 3,254,455 | |||||||
Pla-Fit Holdings, LLC [Member] | Secondary Offering [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Number of units held by owners | 10,869,819 | 10,209,242 | ||||||
Pla-Fit Holdings, LLC [Member] | Planet Intermediate, LLC [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Percentage of ownership | 100.00% | |||||||
Planet Intermediate, LLC [Member] | Planet Fitness Holdings, LLC [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | ||||||||
Percentage of ownership | 100.00% |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Summary of Company's Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - Interest Rate Cap [Member] - Fair Value Measurements Recurring - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate caps | $ 220 | $ 306 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Interest rate caps | $ 220 | $ 306 |
Variable Interest Entities - Ca
Variable Interest Entities - Carrying Value of Variable Interest Entities of Consolidated Financial Statements (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Variable Interest Entity [Line Items] | ||
Assets | $ 7,503 | $ 7,227 |
PF Melville [Member] | ||
Variable Interest Entity [Line Items] | ||
Assets | 4,245 | 4,071 |
MMR [Member] | ||
Variable Interest Entity [Line Items] | ||
Assets | $ 3,258 | $ 3,156 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Detail) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Variable Interest Entity Consolidated Carrying Amount Assets And Liabilities [Abstract] | ||
Maximum obligation of guarantees of leases and debt | $ 1,132,000 | $ 1,350,000 |
Maximum loss exposure Involvement of estimated value | $ 0 |
Goodwill and Intangible Asset35
Goodwill and Intangible Assets - Summary of Goodwill and Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Goodwill And Intangible Assets [Line Items] | ||
Total intangible assets, Gross carrying amount | $ 347,867 | $ 347,867 |
Gross carrying amount | 201,567 | 201,567 |
Accumulated amortization | (103,430) | (94,005) |
Net carrying Amount | 98,137 | 107,562 |
Total intangible assets, Net carrying Amount | 244,437 | 253,862 |
Goodwill, Gross carrying amount | 176,981 | 176,981 |
Goodwill, Net carrying Amount | 176,981 | 176,981 |
Trade and Brand Names [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Indefinite-lived intangible, Net carrying Amount | $ 146,300 | $ 146,300 |
Customer Relationships [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Weighted average amortization period (years) | 11 years 1 month 6 days | 11 years 1 month 6 days |
Gross carrying amount | $ 171,782 | $ 171,782 |
Accumulated amortization | (79,671) | (72,655) |
Net carrying Amount | $ 92,111 | $ 99,127 |
Noncompete Agreements [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Weighted average amortization period (years) | 5 years | 5 years |
Gross carrying amount | $ 14,500 | $ 14,500 |
Accumulated amortization | (13,477) | (12,027) |
Net carrying Amount | $ 1,023 | $ 2,473 |
Favorable Leases [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Weighted average amortization period (years) | 7 years 6 months | 7 years 6 months |
Gross carrying amount | $ 2,935 | $ 2,935 |
Accumulated amortization | (1,824) | (1,643) |
Net carrying Amount | $ 1,111 | $ 1,292 |
Order Backlog [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Weighted average amortization period (years) | 4 months 24 days | 4 months 24 days |
Gross carrying amount | $ 3,400 | $ 3,400 |
Accumulated amortization | $ (3,400) | $ (3,400) |
Reacquired Franchise Rights [Member] | ||
Goodwill And Intangible Assets [Line Items] | ||
Weighted average amortization period (years) | 5 years 9 months 18 days | 5 years 9 months 18 days |
Gross carrying amount | $ 8,950 | $ 8,950 |
Accumulated amortization | (5,058) | (4,280) |
Net carrying Amount | $ 3,892 | $ 4,670 |
Goodwill and Intangible Asset36
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Goodwill And Intangible Assets [Line Items] | |||||
Impairment charges | $ 0 | $ 0 | |||
Amortization of intangible assets | $ 4,710,000 | $ 4,940,000 | 9,425,000 | $ 9,880,000 | |
Favorable And Unfavorable Leases [Member] | |||||
Goodwill And Intangible Assets [Line Items] | |||||
Amortization of intangible assets | $ 88,000 | $ 97,000 | $ 181,000 | $ 194,000 |
Goodwill and Intangible Asset37
Goodwill and Intangible Assets - Summary of Amortization expenses (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Remainder of 2017 | $ 8,789 | |
2,018 | 14,583 | |
2,019 | 14,215 | |
2,020 | 12,517 | |
2,021 | 12,422 | |
Thereafter | 35,611 | |
Net carrying Amount | $ 98,137 | $ 107,562 |
Long-term Debt - Schedule of Lo
Long-term Debt - Schedule of Long-term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Total debt, excluding deferred financing costs | $ 713,062 | $ 716,654 |
Deferred financing costs, net of accumulated amortization | (6,702) | (7,466) |
Total debt | 706,360 | 709,188 |
Current portion of long-term debt and line of credit | 7,185 | 7,185 |
Long-term debt, net of current portion | 699,175 | 702,003 |
Term Loan B [Member] | ||
Debt Instrument [Line Items] | ||
Total debt, excluding deferred financing costs | $ 713,062 | $ 716,654 |
Long-term Debt - Schedule of 39
Long-term Debt - Schedule of Long-term Debt (Parenthetical) (Detail) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity date | Mar. 31, 2019 | Mar. 31, 2019 |
Total rate - base plus spread | 6.25% | 6.00% |
Term Loan B [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument maturity date | Mar. 31, 2021 | Mar. 31, 2021 |
Total rate - base plus spread | 4.25% | 4.33% |
Long-term Debt - Additional Inf
Long-term Debt - Additional Information (Detail) - USD ($) $ in Thousands | May 26, 2017 | Jun. 30, 2017 | Jun. 30, 2017 |
Debt Instrument [Line Items] | |||
Third party debt refinancing expense | $ 1,021 | ||
Loss on extinguishment of debt | 79 | ||
Term Loan B [Member] | |||
Debt Instrument [Line Items] | |||
Decrease in interest rate margin for term loan borrowings | (0.50%) | ||
Additional reduction in interest rate margin for term loan borrowings | (0.25%) | ||
Maximum [Member] | Term Loan B [Member] | |||
Debt Instrument [Line Items] | |||
Total net leverage ratio | 3.50% | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Decrease in interest rate margin for term loan borrowings | (0.25%) | ||
Amended Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Capitalized and deferred financing costs | $ 257 | $ 257 | |
Amended Credit Facility [Member] | Other Expense [Member] | |||
Debt Instrument [Line Items] | |||
Third party debt refinancing expense | 1,021 | ||
Amended Credit Facility [Member] | Interest Expense [Member] | |||
Debt Instrument [Line Items] | |||
Loss on extinguishment of debt | $ 79 |
Long-term Debt - Schedule of Fu
Long-term Debt - Schedule of Future Annual Payments of Long-term Debt (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Disclosure [Abstract] | ||
Remainder of 2017 | $ 3,593 | |
2,018 | 7,185 | |
2,019 | 7,185 | |
2,020 | 7,185 | |
2,021 | 687,914 | |
Total | $ 713,062 | $ 716,654 |
Derivative Instruments and He42
Derivative Instruments and Hedging Activities - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2017Cap | Dec. 31, 2016USD ($) | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||
Unrealized loss on interest rate caps, net of tax | $ 179,000 | $ (79,000) | $ 356,000 | $ (662,000) | ||
LIBOR plus 1.5% [Member] | ||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||
Derivative, interest rate cap floor | 1.50% | 1.50% | ||||
LIBOR Plus 2.5% [Member] | ||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||
Derivative, interest rate cap floor | 2.50% | 2.50% | 2.50% | |||
Interest Rate Cap [Member] | ||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||
Number of additional caps | Cap | 2 | |||||
Derivative, inception date | Mar. 31, 2017 | |||||
Derivative, maturity date | Mar. 31, 2019 | |||||
Interest rate caps | $ 220,000 | $ 220,000 | $ 306,000 | |||
Unrealized loss on interest rate caps, net of tax | 180,000 | (79,000) | 356,000 | (662,000) | ||
Unrealized gain (loss) on interest rate caps, tax | 89,000 | $ (15,000) | 145,000 | $ (128,000) | ||
Interest Rate Cap [Member] | LIBOR plus 1.5% [Member] | ||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||
Derivative, notional amount | 194,000,000 | 194,000,000 | ||||
Interest Rate Cap [Member] | LIBOR Plus 2.5% [Member] | ||||||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||||||
Derivative, notional amount | $ 163,429,000 | $ 163,429,000 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | |||||
Due from related parties, current portion | $ 2,925 | $ 2,925 | $ 2,864 | ||
Liability payable under tax benefit obligations | 727,053 | 727,053 | |||
Area Development Agreements [Member] | |||||
Related Party Transaction [Line Items] | |||||
Deferred area development revenue from related parties | 258 | 258 | $ 422 | ||
Planet Fitness NAF, LLC [Member] | |||||
Related Party Transaction [Line Items] | |||||
Administrative fees charged | $ 428 | $ 438 | $ 1,001 | $ 875 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Related Party Transactions (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Related Party Transaction [Line Items] | ||||
Total revenue from related parties | $ 936 | $ 586 | $ 1,403 | $ 1,600 |
Franchise [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total revenue from related parties | 382 | 412 | 830 | 833 |
Equipment [Member] | ||||
Related Party Transaction [Line Items] | ||||
Total revenue from related parties | $ 554 | $ 174 | $ 573 | $ 767 |
Stockholder's Equity - Addition
Stockholder's Equity - Additional Information (Detail) - USD ($) | 1 Months Ended | 6 Months Ended | ||
May 31, 2017 | Mar. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 | |
Class Of Stock [Line Items] | ||||
Proceeds from sale of shares | $ 26,000 | |||
Pla-Fit Holdings, LLC [Member] | ||||
Class Of Stock [Line Items] | ||||
Number of units held by owners | 3,254,455 | |||
Holdings Units [Member] | ||||
Class Of Stock [Line Items] | ||||
Exchanges of Class B common stock, shares | 3,254,455 | |||
Class A Common Stock [Member] | ||||
Class Of Stock [Line Items] | ||||
Number of stock issued during period | 3,254,455 | |||
Exchanges of Class B common stock, shares | 24,334,000 | |||
Number of units owned by holders | 85,649,000 | 61,314,000 | ||
Class B Common Stock [Member] | ||||
Class Of Stock [Line Items] | ||||
Number of shares exchanged | 3,254,455 | |||
Number of units owned by holders | 12,701,000 | 37,185,000 | ||
Secondary Offering [Member] | Pla-Fit Holdings, LLC [Member] | ||||
Class Of Stock [Line Items] | ||||
Number of units held by owners | 10,869,819 | 10,209,242 | ||
Secondary Offering [Member] | Class A Common Stock [Member] | ||||
Class Of Stock [Line Items] | ||||
Number of stock issued during period | 16,085,510 | 15,000,000 | ||
Share price | $ 20.28 | $ 20.44 | ||
Proceeds from sale of shares | $ 0 | $ 0 | ||
Secondary Offering [Member] | Class A Common Stock [Member] | Direct TSG Investors [Member] | ||||
Class Of Stock [Line Items] | ||||
Number of stock issued during period | 5,215,691 | 4,790,758 | ||
Secondary Offering [Member] | Class A Common Stock [Member] | Holdings Units [Member] | ||||
Class Of Stock [Line Items] | ||||
Number of stock issued during period | 10,869,819 | 10,209,242 | ||
Secondary Offering [Member] | Class B Common Stock [Member] | Holdings Units [Member] | ||||
Class Of Stock [Line Items] | ||||
Number of shares exchanged | 10,869,819 | 10,209,242 | ||
Secondary Offering [Member] | Pla-Fit Holdings, LLC [Member] | ||||
Class Of Stock [Line Items] | ||||
Number of units held by owners | 10,869,819 | 10,209,242 | ||
Secondary Offering and Exchange [Member] | Investor [Member] | ||||
Class Of Stock [Line Items] | ||||
Number of units owned by holders | 85,648,906 | |||
Secondary Offering and Exchange [Member] | Continuing LLC Owners [Member] | ||||
Class Of Stock [Line Items] | ||||
Number of units held by owners | 12,701,228 | |||
Secondary Offering and Exchange [Member] | Class A Common Stock [Member] | Investor [Member] | ||||
Class Of Stock [Line Items] | ||||
Number of units owned by holders | 85,648,906 | |||
Secondary Offering and Exchange [Member] | Class B Common Stock [Member] | Continuing LLC Owners [Member] | ||||
Class Of Stock [Line Items] | ||||
Number of units held by owners | 12,701,228 | |||
Secondary Offering and Exchange [Member] | Pla-Fit Holdings, LLC [Member] | Investor [Member] | ||||
Class Of Stock [Line Items] | ||||
Percentage of economic interest | 87.10% | |||
Secondary Offering and Exchange [Member] | Pla-Fit Holdings, LLC [Member] | Continuing LLC Owners [Member] | ||||
Class Of Stock [Line Items] | ||||
Percentage of economic interest | 12.90% | |||
Secondary Offering and Exchange [Member] | Pla-Fit Holdings, LLC [Member] | Class A Common Stock [Member] | Investor [Member] | ||||
Class Of Stock [Line Items] | ||||
Percentage of voting power | 87.10% | |||
Secondary Offering and Exchange [Member] | Pla-Fit Holdings, LLC [Member] | Class B Common Stock [Member] | Continuing LLC Owners [Member] | ||||
Class Of Stock [Line Items] | ||||
Percentage of voting power | 12.90% |
Earnings per share - Reconcilia
Earnings per share - Reconciliation of Numerators and Denominators Used to Compute Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Numerator | ||||
Net income | $ 18,004 | $ 18,091 | $ 35,870 | $ 34,437 |
Less: net income attributable to non-controlling interests | 5,592 | 13,959 | 14,616 | 26,936 |
Net income attributable to Planet Fitness, Inc. | $ 12,412 | $ 4,132 | $ 21,254 | $ 7,501 |
Stock Options [Member] | ||||
Effect of dilutive securities: | ||||
Weighted-average shares outstanding adjustment | 33,564 | 28,893 | ||
Restricted Stock Units [Member] | ||||
Effect of dilutive securities: | ||||
Weighted-average shares outstanding adjustment | 5,708 | 1,695 | 5,121 | 1,486 |
Class A Common Stock [Member] | ||||
Denominator | ||||
Weighted-average shares of Class A common stock outstanding - basic | 79,153,778 | 36,771,417 | 71,678,755 | 36,684,701 |
Effect of dilutive securities: | ||||
Weighted-average shares of Class A common stock outstanding - diluted | 79,193,050 | 36,773,112 | 71,712,769 | 36,686,187 |
Earnings per share of Class A common stock - basic | $ 0.16 | $ 0.11 | $ 0.30 | $ 0.20 |
Earnings per share of Class A common stock - diluted | $ 0.16 | $ 0.11 | $ 0.30 | $ 0.20 |
Earnings per share - Additional
Earnings per share - Additional Information (Detail) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Stock Options [Member] | ||||
Earnings Per Share Diluted [Line Items] | ||||
Anti-dilutive securities excluded from the calculation of earnings per share | 491,856 | 218,941 | 302,457 | 172,975 |
Class B Common Stock [Member] | Continuing LLC Owners Exchange Agreement | ||||
Earnings Per Share Diluted [Line Items] | ||||
Anti-dilutive securities excluded from the calculation of earnings per share | 19,197,461 | 61,795,837 | 26,745,818 | 61,951,804 |
Income Taxes - Additional infor
Income Taxes - Additional information (Detail) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)Agreementshares | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Tax Credit Carryforward [Line Items] | |||||
Effective income tax rate | 39.50% | 39.50% | 39.50% | 39.50% | |
Effective income tax rate reconciliation noncontrolling interest | 2.00% | 2.10% | 2.00% | 2.10% | |
Undistributed earnings of foreign operations | $ 0 | $ 0 | $ 0 | $ 0 | |
Net deferred tax assets | 737,953,000 | 737,953,000 | $ 410,407,000 | ||
Net operating loss carryforwards | 0 | 0 | |||
Total liability related to uncertain tax positions | 2,608,000 | 2,608,000 | 2,608,000 | ||
Decrease in next twelve months for unrecognized tax benefits | 2,608,000 | 2,608,000 | |||
Unrecognized tax benefits, Income tax penalties and interest expense | $ 0 | $ 0 | $ 0 | $ 0 | |
Number of tax receivable agreements | Agreement | 2 | ||||
Applicable tax savings | 85.00% | 85.00% | |||
Percentage of remaining tax savings | 15.00% | ||||
Tax benefit obligation | $ 727,053,000 | $ 727,053,000 | $ 419,071,000 | ||
TRA Holders [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Decrease in deferred tax assets | (22,479,000) | ||||
Deferred tax asset | 364,839,000 | 364,839,000 | |||
Deferred tax liability | $ 316,432,000 | $ 316,432,000 | |||
Class A Common Stock [Member] | TRA Holders [Member] | |||||
Tax Credit Carryforward [Line Items] | |||||
Number of shares exchanged | shares | 24,333,516 |
Income Taxes - Schedule of Futu
Income Taxes - Schedule of Future Payments Under Tax Benefit Arrangements (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||
Remainder of 2017 | $ 3,507 | |
2,018 | 29,972 | |
2,019 | 35,740 | |
2,020 | 35,503 | |
2,021 | 36,548 | |
Thereafter | 585,783 | |
Total | $ 727,053 | $ 419,071 |
Segments - Additional Informati
Segments - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)Segment | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | Segment | 3 | ||||
Number of operating segments | Segment | 0 | ||||
Description of factors used to identify entity's reportable segments | No operating segments aggregated to arrive at the Company's reportable segments. | ||||
Revenue | $ 107,316,000 | $ 91,472,000 | $ 198,418,000 | $ 174,815,000 | |
Franchise [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 37,794,000 | 29,479,000 | 74,591,000 | 57,156,000 | |
Franchise [Member] | Placement Services [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 2,871,000 | 2,653,000 | 4,977,000 | 4,728,000 | |
Corporate-owned Stores [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 28,285,000 | $ 26,383,000 | 55,326,000 | $ 52,080,000 | |
Corporate-owned Stores [Member] | Canada [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Long-lived assets | $ 2,665,000 | 2,665,000 | $ 2,795,000 | ||
Intersegment Eliminations [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | $ 0 |
Segments - Summary of Financial
Segments - Summary of Financial Information for the Company's Reportable Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 107,316 | $ 91,472 | $ 198,418 | $ 174,815 |
Total Segment EBITDA | 45,211 | 35,349 | 86,899 | 69,056 |
Corporate And Other Non Segment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Segment EBITDA | (9,925) | (6,739) | (17,057) | (13,324) |
Franchise [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 37,794 | 29,479 | 74,591 | 57,156 |
Franchise [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Segment EBITDA | 32,487 | 24,682 | 64,519 | 48,494 |
Franchise [Member] | US [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 37,017 | 29,143 | 73,445 | 56,373 |
Franchise [Member] | International [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 777 | 336 | 1,146 | 783 |
Corporate-owned Stores [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 28,285 | 26,383 | 55,326 | 52,080 |
Corporate-owned Stores [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Segment EBITDA | 12,840 | 9,547 | 23,533 | 19,709 |
Corporate-owned Stores [Member] | US [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 27,210 | 25,306 | 53,183 | 50,004 |
Corporate-owned Stores [Member] | International [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,075 | 1,077 | 2,143 | 2,076 |
Equipment [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 41,237 | 35,610 | 68,501 | 65,579 |
Equipment [Member] | Operating Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Total Segment EBITDA | 9,809 | 7,859 | 15,904 | 14,177 |
Equipment [Member] | US [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 41,237 | $ 35,610 | $ 68,501 | $ 65,579 |
Segments - Reconciliation of To
Segments - Reconciliation of Total Segment EBITDA to Income Before Taxes (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Segment Reporting [Abstract] | ||||
Total Segment EBITDA | $ 45,211 | $ 35,349 | $ 86,899 | $ 69,056 |
Depreciation and amortization | 7,894 | 7,678 | 15,845 | 15,382 |
Other (income) expense | (933) | (160) | (251) | 234 |
Income from operations | 38,250 | 27,831 | 71,305 | 53,440 |
Interest expense, net | (9,028) | (6,161) | (17,791) | (12,528) |
Income before income taxes | $ 28,289 | $ 21,510 | $ 53,263 | $ 41,146 |
Segments - Summary of Company's
Segments - Summary of Company's Assets by Reportable Segment (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total consolidated assets | $ 1,354,641 | $ 1,001,442 |
Operating Segments [Member] | Franchise [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total consolidated assets | 236,008 | 202,580 |
Operating Segments [Member] | Corporate-owned Stores [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total consolidated assets | 151,389 | 153,761 |
Operating Segments [Member] | Equipment [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total consolidated assets | 185,252 | 208,809 |
Unallocated [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total consolidated assets | $ 781,992 | $ 436,292 |
Segments - Summary of Company54
Segments - Summary of Company's Goodwill by Reportable Segment (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Segment Reporting Other Significant Reconciling Item [Line Items] | ||
Goodwill, Net carrying Amount | $ 176,981 | $ 176,981 |
Franchise [Member] | ||
Segment Reporting Other Significant Reconciling Item [Line Items] | ||
Goodwill, Net carrying Amount | 16,938 | 16,938 |
Corporate-owned Stores [Member] | ||
Segment Reporting Other Significant Reconciling Item [Line Items] | ||
Goodwill, Net carrying Amount | 67,377 | 67,377 |
Equipment [Member] | ||
Segment Reporting Other Significant Reconciling Item [Line Items] | ||
Goodwill, Net carrying Amount | $ 92,666 | $ 92,666 |
Corporate-owned and Franchise55
Corporate-owned and Franchisee-owned Stores - Schedule of Changes in Corporate-owned and Franchisee-owned Stores (Detail) - Store | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Franchisor Disclosure [Line Items] | |||||
Stores operated at beginning of period | 1,367 | 1,171 | 1,313 | 1,124 | |
New stores opened | 37 | 36 | 91 | 84 | |
Stores debranded or consolidated | [1] | (1) | (1) | (1) | (2) |
Stores operated at end of period | 1,403 | 1,206 | 1,403 | 1,206 | |
Franchisee-Owned Stores [Member] | |||||
Franchisor Disclosure [Line Items] | |||||
Stores operated at beginning of period | 1,309 | 1,113 | 1,255 | 1,066 | |
New stores opened | 37 | 36 | 91 | 84 | |
Stores debranded or consolidated | [1] | (1) | (1) | (1) | (2) |
Stores operated at end of period | 1,345 | 1,148 | 1,345 | 1,148 | |
Corporate-Owned Stores [Member] | |||||
Franchisor Disclosure [Line Items] | |||||
Stores operated at beginning of period | 58 | 58 | 58 | 58 | |
Stores operated at end of period | 58 | 58 | 58 | 58 | |
[1] | The term “debrand” refers to a franchisee-owned store whose right to use the Planet Fitness brand and marks has been terminated in accordance with the franchise agreement. We retain the right to prevent debranded stores from continuing to operate as fitness centers. The term “consolidated” refers to the combination of a franchisee’s store with another store located in close proximity with our prior approval. This often coincides with an enlargement, re-equipment and/or refurbishment of the remaining store. |