Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 02, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-37534 | |
Entity Registrant Name | PLANET FITNESS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 38-3942097 | |
Entity Address, Address Line One | 4 Liberty Lane West | |
Entity Address, City or Town | Hampton | |
Entity Address, State or Province | NH | |
Entity Address, Postal Zip Code | 03842 | |
City Area Code | 603 | |
Local Phone Number | 750-0001 | |
Title of 12(b) Security | Class A common stock, $0.0001 Par Value | |
Trading Symbol | PLNT | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001637207 | |
Current Fiscal Year End Date | --12-31 | |
Class A Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 85,438,502 | |
Class B Common Stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 2,708,410 |
Condensed consolidated balance
Condensed consolidated balance sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 308,970 | $ 409,840 |
Restricted cash | 46,381 | 62,659 |
Short-term marketable securities | 108,460 | 0 |
Accounts receivable, net of allowances for uncollectible amounts of $0 and $0 as of September 30, 2023 and December 31, 2022, respectively | 36,362 | 46,242 |
Inventory | 7,536 | 5,266 |
Prepaid expenses | 18,073 | 11,078 |
Other receivables | 8,678 | 14,975 |
Income tax receivables | 5,659 | 5,471 |
Total current assets | 540,119 | 555,531 |
Long-term marketable securities | 10,252 | 0 |
Property and equipment, net of accumulated depreciation of $296,677 and $227,869 as of September 30, 2023 and December 31, 2022, respectively | 366,780 | 348,820 |
Investments, net of allowances for expected credit losses of $14,951 and $14,957 as of September 30, 2023 and December 31, 2022, respectively | 46,037 | 25,122 |
Right-of-use assets, net | 381,819 | 346,937 |
Intangible assets, net | 385,462 | 417,067 |
Goodwill | 717,502 | 702,690 |
Deferred income taxes | 492,965 | 454,565 |
Other assets, net | 3,911 | 3,857 |
Total assets | 2,944,847 | 2,854,589 |
Current liabilities: | ||
Current maturities of long-term debt | 20,750 | 20,750 |
Accounts payable | 28,364 | 20,578 |
Accrued expenses | 56,430 | 66,993 |
Equipment deposits | 13,933 | 8,443 |
Restricted liabilities – national advertising fund | 805 | 0 |
Deferred revenue, current | 64,352 | 53,759 |
Payable pursuant to tax benefit arrangements, current | 38,193 | 31,940 |
Other current liabilities | 50,019 | 42,067 |
Total current liabilities | 272,846 | 244,530 |
Long-term debt, net of current maturities | 1,966,682 | 1,978,131 |
Lease liabilities, net of current portion | 379,810 | 341,843 |
Deferred revenue, net of current portion | 32,670 | 33,152 |
Deferred tax liabilities | 1,397 | 1,471 |
Payable pursuant to tax benefit arrangements, net of current portion | 451,569 | 462,525 |
Other liabilities | 4,803 | 4,498 |
Total noncurrent liabilities | 2,836,931 | 2,821,620 |
Commitments and contingencies (Note 14) | ||
Stockholders’ equity (deficit): | ||
Accumulated other comprehensive loss | (684) | (448) |
Additional paid in capital | 570,397 | 505,144 |
Accumulated deficit | (726,800) | (703,717) |
Total stockholders’ deficit attributable to Planet Fitness Inc. | (157,078) | (199,012) |
Non-controlling interests | (7,852) | (12,549) |
Total stockholders’ deficit | (164,930) | (211,561) |
Total liabilities and stockholders’ deficit | 2,944,847 | 2,854,589 |
Class A Common Stock | ||
Stockholders’ equity (deficit): | ||
Common stock | 9 | 8 |
Class B Common Stock | ||
Stockholders’ equity (deficit): | ||
Common stock | $ 0 | $ 1 |
Condensed consolidated balanc_2
Condensed consolidated balance sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Accounts receivable, allowance for bad debts | $ 0 | $ 0 |
Accumulated depreciation | 296,677 | 227,869 |
Allowance for expected credit loss | $ 14,951 | $ 14,957 |
Class A Common Stock | ||
Stockholders’ equity (deficit): | ||
Common stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common stock, shares issued (in shares) | 85,410,000 | 83,430,000 |
Common stock, shares outstanding (in shares) | 85,410,000 | 83,430,000 |
Class B Common Stock | ||
Stockholders’ equity (deficit): | ||
Common stock, par value (in usd per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 2,733,000 | 6,146,000 |
Common stock, shares outstanding (in shares) | 2,733,000 | 6,146,000 |
Condensed consolidated statemen
Condensed consolidated statements of operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue: | ||||
Total revenue | $ 277,551 | $ 244,386 | $ 786,240 | $ 655,504 |
Operating costs and expenses: | ||||
Cost of revenue | 53,751 | 48,531 | 132,561 | 103,436 |
Store operations | 63,120 | 57,892 | 188,011 | 161,789 |
Selling, general and administrative | 33,290 | 27,148 | 93,705 | 86,176 |
National advertising fund expense | 17,618 | 17,009 | 52,496 | 50,445 |
Depreciation and amortization | 37,477 | 32,572 | 110,254 | 90,427 |
Other (gains) losses, net | (56) | (700) | 7,705 | (2,452) |
Total operating costs and expenses | 205,200 | 182,452 | 584,732 | 489,821 |
Income from operations | 72,351 | 61,934 | 201,508 | 165,683 |
Other expense, net: | ||||
Interest income | 4,245 | 1,561 | 12,339 | 2,244 |
Interest expense | (21,704) | (21,917) | (64,771) | (66,527) |
Other income, net | 148 | 4,762 | 631 | 9,000 |
Total other expense, net | (17,311) | (15,594) | (51,801) | (55,283) |
Income before income taxes | 55,040 | 46,340 | 149,707 | 110,400 |
Equity losses of unconsolidated entities, net of tax | (242) | (2) | (580) | (334) |
Provision for income taxes | 13,474 | 15,661 | 38,855 | 35,942 |
Net income | 41,324 | 30,677 | 110,272 | 74,124 |
Less net income attributable to non-controlling interests | 2,190 | 3,764 | 7,299 | 8,405 |
Net income attributable to Planet Fitness, Inc. | $ 39,134 | $ 26,913 | $ 102,973 | $ 65,719 |
Class A Common Stock | ||||
Net income per share of Class A common stock: | ||||
Basic (in usd per share) | $ 0.46 | $ 0.32 | $ 1.22 | $ 0.78 |
Diluted (in usd per share) | $ 0.46 | $ 0.32 | $ 1.21 | $ 0.78 |
Weighted-average shares of Class A common stock outstanding: | ||||
Basic (in shares) | 84,609,522 | 84,156,488 | 84,557,902 | 84,377,324 |
Diluted (in shares) | 84,886,319 | 84,546,613 | 84,870,312 | 84,797,924 |
Franchise | ||||
Revenue: | ||||
Total revenue | $ 80,587 | $ 66,168 | $ 237,313 | $ 200,243 |
National advertising fund revenue | ||||
Revenue: | ||||
Total revenue | 17,578 | 14,578 | 52,378 | 43,130 |
Corporate-owned stores | ||||
Revenue: | ||||
Total revenue | 113,245 | 101,330 | 332,885 | 278,940 |
Equipment | ||||
Revenue: | ||||
Total revenue | $ 66,141 | $ 62,310 | $ 163,664 | $ 133,191 |
Condensed consolidated statem_2
Condensed consolidated statements of comprehensive income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income including non-controlling interests | $ 41,324 | $ 30,677 | $ 110,272 | $ 74,124 |
Other comprehensive (loss) income, net: | ||||
Foreign currency translation adjustments | (393) | (516) | 17 | (638) |
Change in unrealized gain (loss) on marketable securities, net of tax | 42 | 0 | (253) | 0 |
Total other comprehensive (loss) income, net | (351) | (516) | (236) | (638) |
Total comprehensive income including non-controlling interests | 40,973 | 30,161 | 110,036 | 73,486 |
Less: total comprehensive income attributable to non-controlling interests | 2,190 | 3,764 | 7,299 | 8,405 |
Total comprehensive income attributable to Planet Fitness, Inc. | $ 38,783 | $ 26,397 | $ 102,737 | $ 65,081 |
Condensed consolidated statem_3
Condensed consolidated statements of cash flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 110,272 | $ 74,124 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 110,254 | 90,427 |
Amortization of deferred financing costs | 4,114 | 4,129 |
Write-off of deferred financing costs | 0 | 1,583 |
Accretion of marketable securities discount | (2,224) | 0 |
Dividends accrued on investment | (1,490) | (1,391) |
Deferred tax expense | 34,884 | 35,026 |
Equity losses of unconsolidated entities, net of tax | 580 | 334 |
Gain on adjustment of allowance for credit losses on held-to-maturity investment | (6) | (1,572) |
Gain on re-measurement of tax benefit arrangement | 0 | (8,381) |
Loss on reacquired franchise rights | 110 | 1,160 |
Gain on sale of corporate-owned stores | 0 | (1,324) |
Equity-based compensation | 6,326 | 6,942 |
Other | 133 | 267 |
Changes in operating assets and liabilities, excluding effects of acquisitions: | ||
Accounts receivable | 10,086 | (7,477) |
Inventory | (2,270) | (3,071) |
Other assets and other current assets | (1,722) | (567) |
Restricted liabilities (assets) - national advertising fund | 805 | (1,773) |
Accounts payable and accrued expenses | (7,488) | (22,521) |
Other liabilities and other current liabilities | 6,855 | 1,728 |
Income taxes | (104) | (2,111) |
Payable pursuant to tax benefit arrangements | (21,780) | (14,211) |
Equipment deposits | 5,495 | 26,049 |
Deferred revenue | 9,428 | 11,506 |
Leases | 4,662 | 1,550 |
Net cash provided by operating activities | 266,920 | 190,426 |
Cash flows from investing activities: | ||
Additions to property and equipment | (84,636) | (65,138) |
Acquisition of franchisees, net of cash acquired | (26,264) | (424,940) |
Proceeds from sale of corporate-owned stores | 0 | 20,820 |
Proceeds from sale of property and equipment | 2 | 60 |
Purchases of marketable securities | (155,007) | 0 |
Maturities of marketable securities | 37,990 | 0 |
Other investments | (20,000) | 0 |
Net cash used in investing activities | (247,915) | (469,198) |
Cash flows from financing activities: | ||
Principal payments on capital lease obligations | (152) | (207) |
Proceeds from issuance of long-term debt | 0 | 900,000 |
Proceeds from issuance of Variable Funding Notes | 0 | 75,000 |
Repayment of long-term debt and Variable Funding Notes | (15,563) | (719,625) |
Payment of financing and other debt-related costs | 0 | (15,951) |
Proceeds from issuance of Class A common stock | 8,575 | 779 |
Repurchase and retirement of Class A common stock | (125,030) | (94,314) |
Distributions paid to members of Pla-Fit Holdings | (4,216) | (2,945) |
Net cash (used in) provided by financing activities | (136,386) | 142,737 |
Effects of exchange rate changes on cash and cash equivalents | 233 | (729) |
Net decrease in cash, cash equivalents and restricted cash | (117,148) | (136,764) |
Cash, cash equivalents and restricted cash, beginning of period | 472,499 | 603,941 |
Cash, cash equivalents and restricted cash, end of period | 355,351 | 467,177 |
Supplemental cash flow information: | ||
Net cash paid for income taxes | 4,394 | 3,072 |
Cash paid for interest | 60,964 | 60,535 |
Non-cash investing & financing activities: | ||
Non-cash additions to property and equipment | 20,590 | 11,566 |
Accrued taxes on share repurchases | 1,048 | 0 |
Fair value of common stock issued as consideration for acquisition | $ 0 | $ 393,730 |
Condensed consolidated statem_4
Condensed consolidated statement of changes in equity (deficit) (Unaudited) - USD ($) $ in Thousands | Total | Class A common stock | Class B common stock | Common stock Class A common stock | Common stock Class B common stock | Accumulated other comprehensive income (loss) | Additional paid- in capital | Accumulated deficit | Non-controlling interests |
Beginning balance (in shares) at Dec. 31, 2021 | 83,804,000 | 3,056,000 | |||||||
Beginning balance at Dec. 31, 2021 | $ (642,845) | $ 8 | $ 1 | $ 12 | $ 63,428 | $ (708,804) | $ 2,510 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 74,124 | 65,719 | 8,405 | ||||||
Equity-based compensation expense | 6,942 | 6,942 | |||||||
Exchanges of Class B common stock and other adjustments (in shares) | 548,000 | (548,000) | |||||||
Exchanges of Class B common stock and other adjustments | 0 | 22,534 | (22,534) | ||||||
Repurchase and retirement of Class A common stock (in shares) | (1,528,000) | ||||||||
Repurchase and retirement of Class A common stock | (94,314) | 6,426 | (94,314) | (6,426) | |||||
Exercise of stock options, vesting of restricted share units and ESPP share purchase (in shares) | 73,000 | ||||||||
Exercise of stock options, vesting of restricted share units and ESPP share purchase | 998 | 998 | |||||||
Issuance of common stock for acquisition (in shares) | 517,000 | 3,638,000 | |||||||
Issuance of common stock for acquisition | 393,730 | 416,509 | (22,779) | ||||||
Tax benefit arrangement liability and deferred taxes arising from exchanges of Class B common stock and other adjustments | 17,528 | 17,528 | |||||||
Non-cash adjustments to VIEs | (686) | (686) | |||||||
Distributions paid to members of Pla-Fit Holdings | (2,945) | (2,945) | |||||||
Other comprehensive loss | (638) | (638) | |||||||
Ending balance (in shares) at Sep. 30, 2022 | 83,414,000 | 6,146,000 | |||||||
Ending balance at Sep. 30, 2022 | (248,106) | $ 8 | $ 1 | (626) | 534,365 | (737,399) | (44,455) | ||
Beginning balance (in shares) at Jun. 30, 2022 | 84,230,000 | 6,146,000 | |||||||
Beginning balance at Jun. 30, 2022 | (229,008) | $ 8 | $ 1 | (110) | 529,026 | (714,297) | (43,636) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 30,677 | 26,913 | 3,764 | ||||||
Equity-based compensation expense | 1,341 | 1,341 | |||||||
Repurchase and retirement of Class A common stock (in shares) | (831,000) | ||||||||
Repurchase and retirement of Class A common stock | (50,015) | 3,432 | (50,015) | (3,432) | |||||
Exercise of stock options, vesting of restricted share units and ESPP share purchase (in shares) | 15,000 | ||||||||
Exercise of stock options, vesting of restricted share units and ESPP share purchase | 624 | 624 | |||||||
Tax benefit arrangement liability and deferred taxes arising from exchanges of Class B common stock and other adjustments | (58) | (58) | |||||||
Non-cash adjustments to VIEs | (229) | (229) | |||||||
Distributions paid to members of Pla-Fit Holdings | (922) | (922) | |||||||
Other comprehensive loss | (516) | (516) | |||||||
Ending balance (in shares) at Sep. 30, 2022 | 83,414,000 | 6,146,000 | |||||||
Ending balance at Sep. 30, 2022 | (248,106) | $ 8 | $ 1 | (626) | 534,365 | (737,399) | (44,455) | ||
Beginning balance (in shares) at Dec. 31, 2022 | 83,430,000 | 6,146,000 | 83,430,000 | 6,146,000 | |||||
Beginning balance at Dec. 31, 2022 | (211,561) | $ 8 | $ 1 | (448) | 505,144 | (703,717) | (12,549) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 110,272 | 102,973 | 7,299 | ||||||
Equity-based compensation expense | 6,326 | 6,326 | |||||||
Exchanges of Class B common stock and other adjustments (in shares) | 3,412,312 | 3,413,000 | (3,413,000) | ||||||
Exchanges of Class B common stock and other adjustments | 0 | $ 1 | $ (1) | (9,096) | 9,096 | ||||
Repurchase and retirement of Class A common stock (in shares) | (1,699,000) | ||||||||
Repurchase and retirement of Class A common stock | (126,078) | 3,117 | (126,078) | (3,117) | |||||
Exercise of stock options, vesting of restricted share units and ESPP share purchase (in shares) | 266,000 | ||||||||
Exercise of stock options, vesting of restricted share units and ESPP share purchase | 8,611 | 8,611 | |||||||
Tax benefit arrangement liability and deferred taxes arising from exchanges of Class B common stock and other adjustments | 56,295 | 56,295 | |||||||
Non-cash adjustments to VIEs | (389) | (389) | |||||||
Deconsolidation of VIEs | (3,954) | 22 | (3,976) | ||||||
Distributions paid to members of Pla-Fit Holdings | (4,216) | (4,216) | |||||||
Other comprehensive loss | (236) | (236) | |||||||
Ending balance (in shares) at Sep. 30, 2023 | 85,410,000 | 2,733,000 | 85,410,000 | 2,733,000 | |||||
Ending balance at Sep. 30, 2023 | (164,930) | $ 9 | $ 0 | (684) | 570,397 | (726,800) | (7,852) | ||
Beginning balance (in shares) at Jun. 30, 2023 | 83,980,000 | 4,151,000 | |||||||
Beginning balance at Jun. 30, 2023 | (215,961) | $ 9 | $ 0 | (333) | 564,170 | (765,815) | (13,992) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 41,324 | 39,134 | 2,190 | ||||||
Equity-based compensation expense | 1,533 | 1,533 | |||||||
Exchanges of Class B common stock and other adjustments (in shares) | 1,417,603 | 1,418,000 | (1,418,000) | ||||||
Exchanges of Class B common stock and other adjustments | 0 | (4,430) | 4,430 | ||||||
Exercise of stock options, vesting of restricted share units and ESPP share purchase (in shares) | 12,000 | ||||||||
Exercise of stock options, vesting of restricted share units and ESPP share purchase | 591 | 591 | |||||||
Tax benefit arrangement liability and deferred taxes arising from exchanges of Class B common stock and other adjustments | 8,533 | 8,533 | |||||||
Deconsolidation of VIEs | (119) | (119) | |||||||
Distributions paid to members of Pla-Fit Holdings | (480) | (480) | |||||||
Other comprehensive loss | (351) | (351) | |||||||
Ending balance (in shares) at Sep. 30, 2023 | 85,410,000 | 2,733,000 | 85,410,000 | 2,733,000 | |||||
Ending balance at Sep. 30, 2023 | $ (164,930) | $ 9 | $ 0 | $ (684) | $ 570,397 | $ (726,800) | $ (7,852) |
Business organization
Business organization | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business organization | Business organization Planet Fitness, Inc. (the “Company”), through its subsidiaries, is a franchisor and operator of fitness centers, with more than 18.5 million members and 2,498 owned and franchised locations (referred to as stores) in 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico and Australia as of September 30, 2023. 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; and • Selling fitness-related equipment to franchisee-owned stores. In 2012 investment funds affiliated with TSG Consumer Partners, LLC (“TSG”), purchased interests in Pla-Fit Holdings. The Company was formed as a Delaware corporation on March 16, 2015 for the purpose of facilitating an initial public offering (the “IPO”) 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, 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. The Company is a holding company whose principal asset is a controlling equity interest in the membership units (“Holdings Units”) 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 Holdings Units not owned by the Company. As of September 30, 2023, the Company held 100.0% of the voting interest and approximately 96.9% of the economic interest in Pla-Fit Holdings and the owners of Holdings Units other than the Company (the “Continuing LLC Owners”) held the remaining 3.1% economic interest in Pla-Fit Holdings. As future exchanges of Holdings Units occur, the economic interest in Pla-Fit Holdings held by Planet Fitness, Inc. will increase. |
Summary of significant accounti
Summary of significant accounting policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | 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 nine months ended September 30, 2023 and 2022 are unaudited. The condensed consolidated balance sheet as of December 31, 2022 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, 2022 (the “Annual Report”) filed with the SEC on March 1, 2023, as amended on March 2, 2023. The Company’s significant interim accounting policies include the proportional recognition of national advertising fund expenses within interim periods. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year. (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 equity-based compensation awards, valuation of assets and liabilities acquired in business combinations, valuation of certain investments and other financial instruments including valuation of investments without readily determinable fair values, the evaluation of the recoverability of goodwill and long-lived assets, including intangible assets, allowance for expected credit losses, contingent liabilities, the present value of lease liabilities, income taxes, including deferred tax assets and liabilities, and the liability for the Company’s tax benefit arrangements. (c) Marketable securities Marketable securities primarily consist of commercial paper, corporate debt securities, U.S. treasury securities, and U.S. government agency securities. We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification at each balance sheet date. We may sell these securities at any time for use in current operations even if they have not yet reached maturity. The Company invests in a diversified portfolio of marketable securities and limits the concentration of its investment in any particular security. Securities with maturities greater than three months, but less than one year, are included in current assets and securities with maturities greater than one year are included within investments in non-current assets on the consolidated balance sheets. All marketable securities classified as available-for-sale are reported at fair value. If the estimated fair value of an available-for-sale debt security is below its amortized cost basis, then the Company evaluates the security for impairment. The Company considers its intent to sell the security or whether it is more likely than not that it will be required to sell the security before recovery of its amortized basis. If either of these criteria are met, the debt security’s amortized cost basis is written down to fair value through other income (expense), net in the consolidated statements of operations. If neither of these criteria are met, the Company evaluates whether unrealized losses have resulted from a credit loss or other factors. The factors considered in determining whether a credit loss exists can include the extent to which fair value is less than the amortized cost basis, changes to the rating of the security by a rating agency, any adverse conditions specifically related to the security, as well as other factors. An impairment relating to credit losses is recorded through an allowance for credit losses reported in other income (expense), net in the consolidated statements of operations. The allowance is limited by the amount that the fair value of the debt security is below its amortized cost basis. When a credit loss exists, the Company compares the present value of cash flows expected to be collected from the debt security with the amortized cost basis of the security to determine what allowance amount, if any, should be recorded. Unrealized gains or losses not resulting from credit losses are recorded through accumulated other comprehensive income (loss). Realized gains and losses from the sale of marketable securities are determined based on the specific identification method. Realized gains and losses are reported in other income (expense), net in the consolidated statements of operations. Interest income from marketable securities is recognized as earned within the condensed consolidated statement of operations. (d) Fair value ASC 820, Fair Value Measurements and Disclosures , establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows: 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 fair value measurements and levels of marketable securities are included in Note 3. The carrying value and estimated fair value of certain liabilities as of September 30, 2023 and December 31, 2022 were as follows: September 30, 2023 December 31, 2022 Carrying value Estimated fair value Carrying value Estimated fair value Liabilities Long-term debt (1) $ 2,009,625 $ 1,763,500 $ 2,025,188 $ 1,730,634 (1) The estimated fair value of the Company’s fixed rate long-term debt is estimated primarily based on current bid prices for the long-term debt. Judgment is required to develop these estimates. As such, the fair value of long-term debt is classified within Level 2, as defined under U.S. GAAP. (e) Recent accounting pronouncements |
Investments
Investments | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Investments - Marketable securities The following table summarizes the amortized cost, gross unrealized gains (losses), and fair value of the Company’s cash equivalents and marketable securities: September 30, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash Equivalents Marketable Securities Level 1 Money market funds $ 981 $ — $ — $ 981 $ 981 $ — Level 2 Commercial paper 74,471 — (86) 74,385 7,955 66,430 Corporate debt securities 44,252 — (157) 44,095 — 44,095 U.S. treasury securities 4,988 — (5) 4,983 — 4,983 U.S. government agency securities 3,209 — (5) 3,204 — 3,204 Total level 2 126,920 — (253) 126,667 7,955 118,712 Total $ 127,901 $ — $ (253) $ 127,648 $ 8,936 $ 118,712 The Company held no marketable securities as of December 31, 2022. The Company primarily invests in current marketable debt securities with a maximum weighted average duration of up to twelve months. As of September 30, 2023, the fair value of non-current marketable debt securities with a maturity beyond twelve months from the end of the period was $10,252, which are included within long-term marketable securities in the consolidated balance sheet. The remainder of the marketable securities are classified as current. Fair values were determined using market prices from third-party pricing sources. For marketable securities with unrealized loss positions, the Company does not intend to sell these securities and it is more likely than not that the Company will hold these securities until maturity or a recovery of the cost basis and they are therefore all categorized as available for sale. No allowance for credit losses was recorded for these securities as of September 30, 2023. Investments - Held-to-maturity debt securities As of September 30, 2023, the Company’s debt security investment consists of redeemable preferred shares that are accounted for as a held-to-maturity investment, with a contractual maturity in 2026. The Company’s investment is measured at amortized cost within investments in the condensed consolidated balance sheets. The Company reviews its held-to-maturity securities for expected credit losses under ASC Topic 326, Credit Impairment , on an ongoing basis. During the three and nine months ended September 30, 2023 and 2022, the Company’s review of the investee’s operations and financial position indicated that an adjustment to its allowance for expected credit losses was necessary. A roll forward of the Company’s allowance for expected credit losses on held-to-maturity investments is as follows: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Beginning allowance for expected credit losses $ 15,052 $ 15,617 $ 14,957 $ 17,462 (Gain) loss on adjustment of allowance for expected credit losses (101) 273 (6) (1,572) Write-offs, net of recoveries — — — — Ending allowance for expected credit losses $ 14,951 $ 15,890 $ 14,951 $ 15,890 The amortized cost, including accrued dividends, of the Company’s held-to-maturity debt security investments was $29,767 and $28,277 and the allowance for expected credit losses was $14,951 and $14,957, as of September 30, 2023 and December 31, 2022, respectively. During the three months ended September 30, 2023 and 2022, the Company recognized dividend income of $511 and $477, respectively, and during the nine months ended September 30, 2023 and 2022, of $1,490 and $1,391, respectively, within other income on the consolidated statements of operations. Equity method investments On April 9, 2021, the Company acquired a 21% ownership interest in Bravo Fit Holdings Pty Ltd, the Company’s franchisee and store operator in Australia, which is deemed to be a related party, for $10,000. In the fourth quarter of 2022, the Company invested an additional $2,449 in Bravo Fit Holdings Pty Ltd. Following such additional investment, the Company’s ownership remained at 21%. For the three months ended September 30, 2023 and 2022, the Company’s proportionate share of the earnings in accordance with the equity method was a loss of $94 and $2, respectively, and for the nine months ended September 30, 2023 and 2022, the Company’s proportionate share of the earnings was a loss of $432 and $334, respectively, recorded within equity earnings of unconsolidated entities on the condensed consolidated statement of operations. The adjusted carrying value of the equity method investment was $11,370 and $11,802 as of September 30, 2023 and December 31, 2022, respectively. On June 23, 2023, the Company acquired a 12.5% ownership interest for $10,000 in Planet Fitmex, LLC, which is classified as an equity method investment as a result of its organizational structure. In August 2023, the Company invested an additional $10,000 in Planet Fitmex, LLC. Following such additional investment, the Company’s ownership stake increased to 22.2% with a total investment of $20,000. Planet Fitmex, LLC, is a franchisee of the Company, store operator in Mexico, and is deemed to be a related party. For both the three and nine months ended September 30, 2023, the Company’s proportionate share of the earnings was a loss of $148 recorded within equity earnings of unconsolidated entities on the condensed consolidated statement of operations. The adjusted carrying value of the equity method investment was $19,852 as of September 30, 2023. Subsequent to quarter end, in November 2023, the Company invested an additional $15,596 in Planet Fitmex, LLC, and following such additional investment, the Company’s ownership stake increased to 25.2%. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions Sunshine Fitness acquisition On February 10, 2022, the Company and Pla-Fit Holdings (together with the Company, the “Buyers”), acquired 100% of the equity interests (“Sunshine Acquisition”) of Sunshine Fitness Growth Holdings, LLC, a Delaware limited liability company and Planet Fitness franchisee (“Sunshine Fitness”). The Company acquired 114 stores in Alabama, Florida, Georgia, North Carolina, and South Carolina from Sunshine Fitness. The following pro forma financial information for the nine months ended September 30, 2022 summarizes the combined results of operations for the Company and Sunshine Fitness, as though the companies were combined as of the beginning of 2021. The three and nine months ended September 30, 2023 and the three months ended September 30, 2022 total revenues, income before taxes, and net income are included within the condensed consolidated statements of operations. For the nine months ended September 30, 2022 Total revenues $ 675,954 Income before taxes 110,246 Net income 74,008 Florida acquisition On April 16, 2023, the Company purchased from one of its franchisees a majority of the assets associated with four franchisee stores operating in Florida (the “Florida Acquisition”) for approximately $26,264. As a result of the transaction, the Company incurred a loss on unfavorable reacquired franchise rights of $110, which is included in other losses (gains), net on the condensed consolidated statement of operations. The loss incurred reduced the net purchase price to $26,154. The Company financed the purchase through cash on hand. The acquired stores are included in the Corporate-owned stores segment. The preliminary allocation of the purchase consideration was as follows: Amount Property and equipment $ 3,851 Right of use assets 5,424 Other long-term assets 95 Intangible assets 6,880 Goodwill 14,812 Deferred revenue (687) Other current liabilities (17) Lease liabilities (4,204) Total $ 26,154 The goodwill created through the purchase is attributable to the assumed future value of the cash flows from the stores acquired. The goodwill is amortizable and deductible for tax purposes over 15 years. The following table sets forth the components of identifiable intangible assets acquired in the Florida Acquisition and their estimated useful lives as of the date of the acquisition: Preliminary Fair Value Preliminary Useful Life Reacquired franchise rights (1) $ 6,650 6.8 Customer relationships (2) 230 6.0 Total intangible assets subject to amortization $ 6,880 (1) Reacquired franchise rights represent the fair value of the reacquired franchise agreements using the income approach, specifically, the multi-period excess earnings method. (2) Customer relationships represent the fair value of the existing contractual customer relationships using the income approach, specifically, the multi-period excess earnings method. The acquisition did not have a material effect on the results of operations of the Company. Certain estimated values for the Florida Acquisition, including goodwill and intangible assets, are not yet finalized and are subject to revision as additional information becomes available and more detailed analyses are completed. |
Sale of corporate-owned stores
Sale of corporate-owned stores | 9 Months Ended |
Sep. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Sale of corporate-owned stores | Sale of corporate-owned storesOn August 31, 2022, the Company sold 6 corporate-owned stores located in Colorado to a franchisee for $20,820. The net value of assets derecognized in connection with the sale amounted to $19,496, which included goodwill of $14,423, intangible assets of $2,629, and net tangible assets of $2,444, which resulted in a gain on sale of corporate-owned stores of $1,324 during the three months ended September 30, 2022. |
Goodwill and intangible assets
Goodwill and intangible assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and intangible assets | Goodwill and intangible assets A summary of goodwill and intangible assets at September 30, 2023 and December 31, 2022 is as follows: September 30, 2023 Gross Accumulated Net carrying Customer relationships $ 199,043 $ (165,174) $ 33,869 Reacquired franchise and area development rights 274,708 (69,715) 204,993 473,751 (234,889) 238,862 Indefinite-lived intangible: Trade and brand names 146,600 — 146,600 Total intangible assets $ 620,351 $ (234,889) $ 385,462 Goodwill $ 717,502 $ — $ 717,502 December 31, 2022 Gross Accumulated Net carrying Customer relationships $ 198,813 $ (153,243) $ 45,570 Reacquired franchise and area development rights 268,058 (43,161) 224,897 466,871 (196,404) 270,467 Indefinite-lived intangible: Trade and brand names 146,600 — 146,600 Total intangible assets $ 613,471 $ (196,404) $ 417,067 Goodwill $ 702,690 $ — $ 702,690 A roll forward of goodwill between December 31, 2022 and September 30, 2023 is as follows: Franchise Corporate-owned stores Equipment Total As of December 31, 2022 $ 16,938 $ 593,086 $ 92,666 $ 702,690 Acquisition of franchisee-owned stores — 14,812 — 14,812 As of September 30, 2023 $ 16,938 $ 607,898 $ 92,666 $ 717,502 The Company determined that no impairment charges were required during any periods presented. Amortization expense related to the intangible assets totaled $12,965 and $10,611 for the three months ended September 30, 2023 and 2022, respectively, and $38,517 and $29,644 for the nine months ended September 30, 2023 and 2022, respectively. The anticipated annual amortization expense related to intangible assets to be recognized in future years as of September 30, 2023 is as follows: Amount Remainder of 2023 $ 12,954 2024 49,190 2025 36,713 2026 32,079 2027 27,956 Thereafter 79,970 Total $ 238,862 |
Long-term debt
Long-term debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt Long-term debt as of September 30, 2023 and December 31, 2022 consists of the following: September 30, 2023 December 31, 2022 2018-1 Class A-2-II notes $ 593,750 $ 598,438 2019-1 Class A-2 notes 529,375 533,500 2022-1 Class A-2-I notes 418,625 421,812 2022-1 Class A-2-II notes 467,875 471,437 Total debt, excluding deferred financing costs 2,009,625 2,025,187 Deferred financing costs, net of accumulated amortization (22,193) (26,306) Total debt 1,987,432 1,998,881 Current portion of long-term debt 20,750 20,750 Long-term debt, net of current portion $ 1,966,682 $ 1,978,131 Future annual principal payments of long-term debt as of September 30, 2023 are as follows: Amount Remainder of 2023 $ 5,188 2024 20,750 2025 600,438 2026 419,312 2027 10,250 Thereafter 953,687 Total $ 2,009,625 On August 1, 2018, Planet Fitness Master Issuer LLC (the “Master Issuer”), a limited-purpose, bankruptcy remote, wholly-owned indirect subsidiary of Pla-Fit Holdings, LLC, entered into a base indenture and a related supplemental indenture (collectively, the “2018 Indenture”) under which the Master Issuer may issue multiple series of notes. On the same date, the Master Issuer issued Series 2018-1 4.262% Fixed Rate Senior Secured Notes, Class A-2-I (the “2018 Class A-2-I Notes”) with an initial principal amount of $575,000 and Series 2018-1 4.666% Fixed Rate Senior Secured Notes, Class A-2-II (the “2018 Class A-2-II Notes” and, together with the 2018 Class A-2-I Notes, the “2018 Notes”) with an initial principal amount of $625,000. In connection with the issuance of the 2018 Notes, the Master Issuer also entered into a revolving financing facility that allows for the incurrence of up to $75,000 in revolving loans and/or certain letters of credit (the “Letters of Credit”) under the Master Issuer’s Series 2018-1 Variable Funding Senior Notes, Class A-1 (the “2018 Variable Funding Notes”). The Company fully drew down on the 2018 Variable Funding Notes on March 20, 2020. On December 3, 2019, the Master Issuer issued Series 2019-1 3.858% Fixed Rate Senior Secured Notes, Class A-2 (the “2019 Notes” and, together with the 2018 Notes, the “Notes”) with an initial principal amount of $550,000. The 2019 Notes were issued under the 2018 Indenture and a related supplemental indenture dated December 3, 2019 (together, the “2019 Indenture”). On February 10, 2022, the Company completed a prepayment in full of its 2018 Class A-2-I Notes and an issuance of Series 2022-1 3.251% Fixed Rate Senior Secured Notes, Class A-2-I with an initial principal amount of $425,000 and Series 2022-1 4.008% Fixed Rate Senior Secured Notes, Class A-2-II with an initial principal amount of $475,000 (the “2022 Notes” and, together with the 2018 Notes and 2019 Notes, the “Notes”), and also entered into a new revolving financing facility that allows for the issuance of up to $75,000 in Variable Funding Notes (“2022 Variable Funding Notes”) and certain Letters of Credit (the issuance of such notes, the “Series 2022-I Issuance”). The 2022 Notes were issued under the 2018 Indenture and a related supplemental indenture dated February 10, 2022 (together, with the 2019 Indenture, the “Indenture”). Together, the Notes, 2018 Variable Funding Notes and 2022 Variable Funding Notes will be referred to as the “Securitized Senior Notes”. On February 10, 2022, the Company borrowed the full amount of the $75,000 2022 Variable Funding Notes and used such proceeds to repay the outstanding principal amount (together with all accrued and unpaid interest thereon) of the 2018 Variable Funding Notes in full. On May 9, 2022, the Company repaid in full its $75,000 of borrowings under the 2022 Variable Funding Notes using cash on hand. The Notes were issued in securitization transactions pursuant to which most of the Company’s domestic revenue-generating assets, consisting principally of franchise-related agreements, certain corporate-owned store assets, equipment supply agreements and intellectual property and license agreements for the use of intellectual property, were assigned to the Master Issuer and certain other limited-purpose, bankruptcy remote, wholly-owned indirect subsidiaries of the Company that act as guarantors of the Securitized Senior Notes and that have pledged substantially all of their assets to secure the Securitized Senior Notes. Interest and principal payments on the Notes are payable on a quarterly basis. The requirement to make such quarterly principal payments on the Notes is subject to certain financial conditions set forth in the Indenture. The legal final maturity date of the 2018 Class A-2-II Notes is in September 2048, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the 2018 Class A-2-II Notes will be repaid in or prior to September 2025. The legal final maturity date of the 2019 Notes is in December 2049, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the 2019 Notes will be repaid in or prior to December 2029. The legal final maturity date of the 2022 Notes is in February 2052, but it is anticipated that, unless earlier prepaid to the extent permitted under the Indenture, the 2022 Class A-2-I Notes will be repaid in or prior to December 2026 and the 2022 Class A-2-II Notes will be repaid in or prior to December 2031 (together, the “Anticipated Repayment Dates”). If the Master Issuer has not repaid or refinanced the Notes prior to the respective Anticipated Repayment Dates, additional interest will accrue pursuant to the Indenture. As noted above, the Company borrowed the full $75,000 in 2022 Variable Funding Notes on February 10, 2022, which was repaid in full using cash on hand on May 9, 2022. If outstanding, the 2022 Variable Funding Notes will accrue interest at a variable interest rate based on (i) the prime rate, (ii) overnight federal funds rates, (iii) the secured overnight financing rate for U.S. Dollars, or (iv) with respect to advances made by conduit investors, the weighted average cost of, or related to, the issuance of commercial paper allocated to fund or maintain such advances, in each case plus any applicable margin and as specified in the 2022 Variable Funding Notes. There is a commitment fee on the unused portion of the 2022 Variable Funding Notes of 0.5% based on utilization. It is anticipated that the principal and interest on the 2022 Variable Funding Notes, if any, will be repaid in full on or prior to December 2026, subject to two additional one-year extension options. Following the anticipated repayment date (and any extensions thereof), additional interest will accrue on the 2022 Variable Funding Notes equal to 5.0% per year. In connection with the issuance of the 2018 Notes, 2019 Notes, and 2022 Notes, the Company incurred debt issuance costs of $27,133, $10,577, and $16,193 respectively. The debt issuance costs are being amortized to interest expense through the Anticipated Repayment Dates of the Notes utilizing the effective interest rate method. As a result of the repayment of the 2018 Class A-2-I Notes prior to the Anticipated Repayment Date, the Company recorded a loss on early extinguishment of debt of $1,583 within interest expense on the Consolidated statements of operations during the nine months ended September 30, 2022, consisting of the write-off of remaining unamortized deferred financing costs related to the issuance of the 2018 Class A-2-I Notes. The Securitized Senior Notes are subject to covenants and restrictions customary for transactions of this type, including (i) that the Master Issuer maintains specified reserve accounts to be used to make required payments in respect of the Securitized Senior Notes, (ii) provisions relating to optional and mandatory prepayments and the related payment of specified amounts, including specified make-whole payments in the case of the Notes under certain circumstances, (iii) certain indemnification payments in the event, among other things, the assets pledged as collateral for the Securitized Senior Notes are in stated ways defective or ineffective, (iv) a cap on non-securitized indebtedness of $50,000 (provided that the Company may incur non-securitized indebtedness in excess of such amount, subject to the leverage ratio cap described below, under certain conditions, including if the relevant lenders execute a non-disturbance agreement that acknowledges the bankruptcy-remote status of the Master Issuer and its subsidiaries and of their respective assets), (v) a leverage ratio cap incurrence test on the Company of 7.0x (calculated without regard for any indebtedness subject to the $50,000 cap) and (vi) covenants relating to recordkeeping, access to information and similar matters. Pursuant to a parent company support agreement, the Company has agreed to cause its subsidiary to perform each of its obligations (including any indemnity obligations) and duties under the Management Agreement and under the contribution agreements entered into in connection with the securitized financing facility, in each case as and when due. To the extent that such subsidiary has not performed any such obligation or duty within the prescribed time frame after such obligation or duty was required to be performed, the Company has agreed to either (i) perform such obligation or duty or (ii) cause such obligations or duties to be performed on the Company’s behalf. The Securitized Senior Notes are also subject to customary rapid amortization events provided for in the Indenture, including events tied to failure to maintain stated debt service coverage ratios, certain manager termination events, an event of default, and the failure to repay or refinance the Notes on the applicable scheduled Anticipated Repayment Dates. The Securitized Senior Notes are also subject to certain customary events of default, including events relating to non-payment of required interest, principal, or other amounts due on or with respect to the Securitized Senior Notes, failure to comply with covenants within certain time frames, certain bankruptcy events, breaches of specified representations and warranties, failure of security interests to be effective, and certain judgments. In accordance with the Indenture, certain cash accounts have been established with the Indenture trustee (the “Trustee”) for the benefit of the trustee and the noteholders, and are restricted in their use. The Company holds restricted cash which primarily represents cash collections held by the Trustee, interest, principal, and commitment fee reserves held by the Trustee related to the Securitized Senior Notes. As of September 30, 2023, the Company had restricted cash held by the Trustee of $46,381. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases Leases Classification September 30, 2023 December 31, 2022 Assets Operating lease ROU assets Right of use asset, net $ 381,819 $ 346,937 Finance lease assets Property and equipment, net 219 370 Total lease assets $ 382,038 $ 347,307 Liabilities Current: Operating Other current liabilities $ 33,589 $ 33,233 Financing Other current liabilities 140 38 Noncurrent: Operating Lease liabilities, net of current portion 379,810 341,843 Financing Other liabilities 88 342 Total lease liabilities $ 413,627 $ 375,456 Weighted-average remaining lease term (years) - operating leases 8.1 8.1 Weighted-average discount rate - operating leases 5.2 % 4.7 % During the three and nine months ended September 30, 2023 and 2022, the components of lease cost were as follows: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Operating lease cost $ 16,467 $ 14,677 $ 47,154 $ 41,411 Variable lease cost 5,917 5,691 16,936 15,415 Total lease cost $ 22,384 $ 20,368 $ 64,090 $ 56,826 The Company’s costs related to short-term leases, those with a duration between one and twelve months, were immaterial. Supplemental disclosures of cash flow information related to leases were as follows: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Cash paid for lease liabilities $ 13,877 $ 14,172 $ 41,985 $ 40,405 Operating lease ROU assets obtained in exchange for operating lease liabilities, excluding acquisitions $ 38,683 $ 6,073 $ 59,410 $ 29,234 Operating lease ROU assets obtained in exchange for operating lease liabilities through acquisitions $ — $ — $ 4,204 $ 162,827 As of September 30, 2023, maturities of lease liabilities were as follows: Amount Remainder of 2023 $ 9,506 2024 60,149 2025 68,800 2026 69,264 2027 66,584 Thereafter 242,152 Total lease payments $ 516,455 Less: imputed interest 102,828 Present value of lease liabilities $ 413,627 As of September 30, 2023, future operating lease payments exclude approximately $29,938 of legally binding minimum lease payments for leases signed but not yet commenced. |
Leases | Leases Leases Classification September 30, 2023 December 31, 2022 Assets Operating lease ROU assets Right of use asset, net $ 381,819 $ 346,937 Finance lease assets Property and equipment, net 219 370 Total lease assets $ 382,038 $ 347,307 Liabilities Current: Operating Other current liabilities $ 33,589 $ 33,233 Financing Other current liabilities 140 38 Noncurrent: Operating Lease liabilities, net of current portion 379,810 341,843 Financing Other liabilities 88 342 Total lease liabilities $ 413,627 $ 375,456 Weighted-average remaining lease term (years) - operating leases 8.1 8.1 Weighted-average discount rate - operating leases 5.2 % 4.7 % During the three and nine months ended September 30, 2023 and 2022, the components of lease cost were as follows: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Operating lease cost $ 16,467 $ 14,677 $ 47,154 $ 41,411 Variable lease cost 5,917 5,691 16,936 15,415 Total lease cost $ 22,384 $ 20,368 $ 64,090 $ 56,826 The Company’s costs related to short-term leases, those with a duration between one and twelve months, were immaterial. Supplemental disclosures of cash flow information related to leases were as follows: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Cash paid for lease liabilities $ 13,877 $ 14,172 $ 41,985 $ 40,405 Operating lease ROU assets obtained in exchange for operating lease liabilities, excluding acquisitions $ 38,683 $ 6,073 $ 59,410 $ 29,234 Operating lease ROU assets obtained in exchange for operating lease liabilities through acquisitions $ — $ — $ 4,204 $ 162,827 As of September 30, 2023, maturities of lease liabilities were as follows: Amount Remainder of 2023 $ 9,506 2024 60,149 2025 68,800 2026 69,264 2027 66,584 Thereafter 242,152 Total lease payments $ 516,455 Less: imputed interest 102,828 Present value of lease liabilities $ 413,627 As of September 30, 2023, future operating lease payments exclude approximately $29,938 of legally binding minimum lease payments for leases signed but not yet commenced. |
Revenue recognition
Revenue recognition | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognition | Revenue recognition Contract Liabilities Contract liabilities consist primarily of deferred revenue resulting from initial and renewal franchise fees and area development agreement (“ADA”) fees paid by franchisees, as well as transfer fees, which are generally recognized on a straight-line basis over the term of the underlying franchise agreement, and national advertising fund (“NAF”) revenue billed in advance of satisfaction of the Company’s performance obligation. Also included are corporate-owned store enrollment fees, annual fees and monthly fees as well as deferred equipment rebates relating to its equipment business. The Company classifies these contract liabilities as deferred revenue in its condensed consolidated balance sheets. The following table reflects the change in contract liabilities between December 31, 2022 and September 30, 2023: Contract liabilities Balance at December 31, 2022 $ 86,911 Revenue recognized that was included in the contract liability at the beginning of the year (50,443) Increase, excluding amounts recognized as revenue during the period 60,554 Balance at September 30, 2023 $ 97,022 The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2023. The Company has elected to exclude short-term contracts, sales and usage-based royalties and any other variable consideration recognized on an “as invoiced” basis. Contract liabilities to be recognized in: Amount Remainder of 2023 $ 40,424 2024 25,559 2025 4,967 2026 3,894 2027 3,417 Thereafter 18,761 Total $ 97,022 Equipment deposits received in advance of delivery as of September 30, 2023 and December 31, 2022 were $13,933 and $8,443, respectively, and are expected to be recognized as revenue in the next twelve months. |
Related party transactions
Related party transactions | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactions Activity with franchisees considered to be related parties is summarized below: For the three months ended For the nine months ended 2023 2022 2023 2022 Franchise revenue - interim CEO $ 958 $ 729 $ 2,882 $ 2,461 Franchise revenue - other 656 233 1,206 434 Equipment revenue - interim CEO 1,294 1,648 2,305 1,661 Equipment revenue - other 1,641 — 1,641 — Total revenue from related parties $ 4,549 $ 2,610 $ 8,034 $ 4,556 Additionally, the Company had deferred ADA and franchise agreement revenue of $722 and $467 as of September 30, 2023 and December 31, 2022, respectively. Of this amount $146 and $138 is from a franchisee in which the Company’s interim CEO has a financial interest. As of September 30, 2023 and December 31, 2022, the Company had $81,687 and $80,717, respectively, payable to related parties pursuant to tax benefit arrangements, see Note 13. The Company provides administrative services to the NAF and typically charges the NAF a fee for providing these services. The services provided include accounting, information technology, data processing, product development, legal and administrative support, and other operating expenses, which amounted to $893 and $651 for the three months ended September 30, 2023 and 2022, respectively, and $2,679 and $1,955 for the nine months ended September 30, 2023 and 2022, respectively. For the three months ended September 30, 2023 and 2022, the Company incurred approximately $63 and $71, respectively, and $427 and $246 for the nine months ended September 30, 2023 and 2022, respectively, which is included within selling, general and administrative expense on the condensed consolidated statements of operations, for corporate travel to a third-party company which is affiliated with the former Chief Executive Officer. A member of the Company’s board of directors, who is also the Company’s interim Chief Executive Officer and a franchisee, holds an approximate 10.5% ownership of a company that sells amenity tracking compliance software to Planet Fitness stores to which the Company made payments of approximately $101 and $109, during the three months ended September 30, 2023 and 2022, respectively, and $270 and $198 during the nine months ended September 30, 2023 and 2022. |
Stockholders' equity
Stockholders' equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Stockholders' equity | Stockholders’ 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 of Holdings Units for shares of Class A common stock by a Continuing LLC Owner, 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 canceled. During the nine months ended September 30, 2022, in connection with the Sunshine Acquisition, the Company issued 517,348 shares of Class A Common Stock and 3,637,678 membership units of Pla-Fit Holdings, LLC, together with shares of Class B Common Stock. See Note 4. During the three and nine months ended September 30, 2023, respectively, certain existing holders of Holdings Units exercised their exchange rights and exchanged 1,417,603 and 3,412,312 Holdings Units for 1,417,603 and 3,412,312 newly-issued shares of Class A common stock. Simultaneously, and in connection with these exchanges, 1,417,603 and 3,412,312 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 1,417,603 and 3,412,312 Holdings Units, increasing its total ownership interest in Pla-Fit Holdings. As a result of the above transactions, as of September 30, 2023: • Holders of Class A common stock owned 85,410,391 shares of Class A common stock, representing 96.9% of the voting power in the Company and, through the Company, 85,410,391 Holdings Units representing 96.9% of the economic interest in Pla-Fit Holdings; and • the Continuing LLC Owners collectively owned 2,733,410 Holdings Units, representing 3.1% of the economic interest in Pla-Fit Holdings, and 2,733,410 shares of Class B common stock, representing 3.1% of the voting power in the Company. Share repurchase program 2022 share repurchase program On November 4, 2022, the Company’s board of directors approved a share repurchase program of up to $500,000, which replaced the 2019 share repurchase program. During the nine months ended September 30, 2023, the Company repurchased 1,698,753 shares of Class A common stock for a total cost of $125,030. A one percent share repurchase excise tax of $1,048 was also incurred as a result of new legislation that went into effect beginning in 2023. All repurchased shares were retired. Subsequent to these repurchases, there is $374,970 remaining under the 2022 share repurchase program. The timing of purchases and amount of stock repurchased are subject to the Company’s discretion and dependent upon market and business conditions, the Company’s general working capital needs, stock price, applicable legal requirements and other factors. The ability to repurchase shares at any particular time is also subject to the terms of the Indenture governing the Securitized Senior Notes. Purchases may be effected through one or more open market transactions, privately negotiated transactions, transactions structured through investment banking institutions, or a combination of the foregoing. Preferred stock The Company had 50,000,000 shares of preferred stock authorized and none issued or outstanding as of September 30, 2023 and December 31, 2022. |
Earnings per share
Earnings per share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per share | 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 Nine months ended 2023 2022 2023 2022 Numerator Net income $ 41,324 $ 30,677 $ 110,272 $ 74,124 Less: net income attributable to non-controlling interests 2,190 3,764 7,299 8,405 Net income attributable to Planet Fitness, Inc. $ 39,134 $ 26,913 $ 102,973 $ 65,719 Denominator Weighted-average shares of Class A common stock outstanding - basic 84,609,522 84,156,488 84,557,902 84,377,324 Effect of dilutive securities: Stock options 212,953 338,981 239,709 357,315 Restricted stock units 48,282 50,854 64,347 62,050 Performance stock units 15,562 290 8,354 1,235 Weighted-average shares of Class A common stock outstanding - diluted 84,886,319 84,546,613 84,870,312 84,797,924 Earnings per share of Class A common stock - basic $ 0.46 $ 0.32 $ 1.22 $ 0.78 Earnings per share of Class A common stock - diluted $ 0.46 $ 0.32 $ 1.21 $ 0.78 Weighted average shares of Class B common stock of 3,533,885 and 6,145,722 for the three months ended September 30, 2023 and 2022, respectively, and 4,236,271 and 5,773,562 for the nine months ended September 30, 2023 and 2022, 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 307,606 and 258,093 for the three months ended September 30, 2023 and 2022, respectively, and 250,595 and 243,507 for the nine months ended September 30, 2023 and 2022, were evaluated under the treasury stock method for potential dilutive effects and were determined to be anti-dilutive. Weighted average restricted stock units outstanding of 968 and 705 for the three months ended September 30, 2023 and 2022, respectively, and 5,684 and 323 for the nine months ended September 30, 2023 and 2022, respectively, were evaluated under the treasury stock method for potential dilutive effects and were determined to be anti-dilutive. Weighted average performance stock units outstanding of 36,717 and 1,058 for the three months ended September 30, 2023 and 2022, respectively, and 1,981 and 281 for the nine months ended September 30, 2023 and 2022, respectively, were evaluated under the treasury stock method for potential dilutive effects and were determined to be anti-dilutive. |
Income taxes
Income taxes | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 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 the allocable share of any taxable income of Pla-Fit Holdings. The Company’s effective tax rate was 24.5% and 33.8% for the three months ended September 30, 2023 and 2022, respectively. The effective tax rate for the three months ended September 30, 2023 differed from the U.S. federal statutory rate of 21% primarily due to state and local taxes, partially offset by income attributable to non-controlling interests. The Company’s effective tax rate was 26.0% and 32.6% for the nine months ended September 30, 2023 and 2022, respectively. The effective tax rate for the nine months ended September 30, 2023 differed from the U.S. federal statutory rate of 21% primarily due to state and local taxes, partially offset by income attributable to non-controlling interests. The Company was also subject to taxes in foreign jurisdictions. Net deferred tax assets of $491,568 and $453,094 as of September 30, 2023 and December 31, 2022, respectively, relate primarily to the tax effects of temporary differences in the book basis as compared to the tax basis of the investment in Pla-Fit Holdings as a result of the secondary offerings, other exchanges, recapitalization transactions and the IPO. As of September 30, 2023 and December 31, 2022, the total liability related to uncertain tax positions was $328 and $328, respectively. The Company recognizes accrued interest and penalties, if applicable, related to unrecognized tax benefits in income tax expense. Interest and penalties for the three and nine months ended September 30, 2023 and 2022 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 exchanges 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 TSG AIV II-A L.P and TSG PF Co-Investors A L.P. (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. As of September 30, 2023 and December 31, 2022, the Company had a liability of $489,762 and $494,465, 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 2023 $ 11,129 2024 38,397 2025 47,379 2026 49,868 2027 52,515 Thereafter 290,474 Total $ 489,762 During the three and nine months ended September 30, 2023, 1,417,603 and 3,412,312 Holdings Units, respectively, were exchanged 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. As a result of the change in Planet Fitness, Inc.’s ownership percentage of Pla-Fit Holdings, the Company recorded a $1,704 and $4,358 decrease to net deferred tax assets during the three and nine months ended September 30, 2023, respectively. As a result of these exchanges, during the three and nine months ended September 30, 2023, the Company also recognized deferred tax assets in the amount of $24,999 and $77,730, respectively, as a result of the increase in tax basis. A portion of these exchanges were not made by TRA Holders, which did not result in an increase in the tax benefit arrangement liability. Of the exchanges that were made by TRA Holders, they resulted in an increase in the tax benefit arrangement liability of $14,762 and $17,077 in the three and nine months ended September 30, 2023, respectively. The offset to the entries recorded in connection with exchanges was to additional paid in capital within stockholders’ deficit. |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 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. On May 27, 2022, the Company and other defendants, including an officer of the Company who is a related party, received a final judgment after appeal to the joint and several judgment against them in a civil action brought by a former employee. In connection with the 2012 acquisition of Pla-Fit Holdings on November 8, 2012, the sellers are obligated to indemnify the Company related to this specific matter. The Company has incurred legal costs on behalf of the defendants in the case, which include a related party. These costs have historically not been material. During the fourth quarter of 2022, the Company and other defendants, as applicable, paid the final judgment in full, of which the Company paid $3,414. Mexico Acquisition On March 19, 2020, a franchisee in Mexico exercised a put option that requires the Company to acquire their franchisee-owned stores in Mexico. In February 2023, the Company and the franchisee agreed on a summary of terms for a settlement agreement (“Preliminary Settlement Agreement”), which will include the Company’s acquisition of the franchisee-owned stores and a release of all claims by all parties. In connection with the Preliminary Settlement Agreement, the Company recorded an estimated liability for the legal settlement of $8,550 as of December 31, 2022, inclusive of estimated future legal fees, through other loss on the statement of operations. The Company revised its estimate of the legal settlement and recorded an increase to the liability of $6,250 during the nine months ended September 30, 2023. The remaining liability as of September 30, 2023 is $14,500, after utilization of the accrual for estimated legal fees during 2023. Subsequent to quarter end, on October 20, 2023, the Company finalized its settlement with the franchisee in Mexico for $31,619, which included the acquisition by the Company of five stores in Mexico and the settlement of all claims. The Company is not currently aware of any other 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 | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segments | 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 interim 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, Panama, Mexico and Australia, including revenues and expenses from the NAF. The Corporate-owned stores segment includes operations with respect to all corporate-owned stores throughout the United States and Canada. The Equipment segment primarily 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 nine months ended September 30, 2023 and 2022. 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 Nine months ended 2023 2022 2023 2022 Revenue Franchise segment revenue - U.S. $ 95,209 $ 78,873 $ 281,836 $ 237,612 Franchise segment revenue - International 2,956 1,873 7,855 5,761 Franchise segment total 98,165 80,746 289,691 243,373 Corporate-owned stores - U.S. 112,080 100,247 329,505 275,962 Corporate-owned stores - International 1,165 1,083 3,380 2,978 Corporate-owned stores total 113,245 101,330 332,885 278,940 Equipment segment - U.S. 62,605 60,952 158,335 124,781 Equipment segment - International 3,536 1,358 5,329 8,410 Equipment segment total 66,141 62,310 163,664 133,191 Total revenue $ 277,551 $ 244,386 $ 786,240 $ 655,504 Franchise revenue includes revenue generated from placement services of $5,884 and $4,376 for the three months ended September 30, 2023 and 2022, respectively, and $13,760 and $10,102 for the nine months ended September 30, 2023 and 2022, respectively. Three months ended Nine months ended 2023 2022 2023 2022 Segment EBITDA Franchise $ 67,583 $ 53,475 $ 198,418 $ 167,910 Corporate-owned stores 44,264 40,446 126,499 103,287 Equipment 16,434 15,803 39,134 34,638 Corporate and other (18,547) (10,458) (52,238) (41,059) Total Segment EBITDA $ 109,734 $ 99,266 $ 311,813 $ 264,776 The following table reconciles total Segment EBITDA to income before taxes: Three months ended Nine months ended 2023 2022 2023 2022 Total Segment EBITDA $ 109,734 $ 99,266 $ 311,813 $ 264,776 Less: Depreciation and amortization 37,477 32,572 110,254 90,427 Other income 148 4,762 631 9,000 Equity losses of unconsolidated entities, net of tax (242) (2) (580) (334) Income from operations 72,351 61,934 201,508 165,683 Interest income 4,245 1,561 12,339 2,244 Interest expense (21,704) (21,917) (64,771) (66,527) Other income 148 4,762 631 9,000 Income before income taxes $ 55,040 $ 46,340 $ 149,707 $ 110,400 The following table summarizes the Company’s assets by reportable segment: September 30, 2023 December 31, 2022 Franchise $ 177,045 $ 161,355 Corporate-owned stores 1,624,489 1,559,985 Equipment 187,899 200,020 Unallocated 955,414 933,229 Total consolidated assets $ 2,944,847 $ 2,854,589 The table above includes $721 and $916 of long-lived assets located in the Company’s international corporate-owned stores as of September 30, 2023 and December 31, 2022, respectively. All other assets are located in the U.S. The following table summarizes the Company’s goodwill by reportable segment: September 30, 2023 December 31, 2022 Franchise $ 16,938 $ 16,938 Corporate-owned stores 607,898 593,086 Equipment 92,666 92,666 Consolidated goodwill $ 717,502 $ 702,690 |
Corporate-owned and franchisee-
Corporate-owned and franchisee-owned stores | 9 Months Ended |
Sep. 30, 2023 | |
Franchisors [Abstract] | |
Corporate-owned and franchisee-owned stores | Corporate-owned and franchisee-owned stores The following table shows changes in corporate-owned and franchisee-owned stores for the three and nine months ended September 30, 2023 and 2022: For the three months ended For the nine months ended 2023 2022 2023 2022 Franchisee-owned stores: Stores operated at beginning of period 2,230 2,091 2,176 2,142 New stores opened 24 25 82 89 Stores acquired from the Company — 6 — 6 Stores debranded, sold, or consolidated (1) — — (4) (115) Stores operated at end of period 2,254 2,122 2,254 2,122 Corporate-owned stores: Stores operated at beginning of period 242 233 234 112 New stores opened 2 4 6 11 Stores sold to franchisees — (6) — (6) Stores acquired from franchisees — — 4 114 Stores operated at end of period 244 231 244 231 Total stores: Stores operated at beginning of period 2,472 2,324 2,410 2,254 New stores opened 26 29 88 100 Stores acquired, debranded, sold or consolidated (1) — — — (1) Stores operated at end of period 2,498 2,353 2,498 2,353 (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. The Company retains 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 prior approval. This often coincides with an enlargement, re-equipment and/or refurbishment of the remaining store. |
VIE deconsolidation
VIE deconsolidation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
VIE deconsolidation | VIE deconsolidationDuring 2023, a triggering event occurred that resulted in the Company analyzing the PF Melville LLC and Matthew Michael Realty LLC VIEs to determine if they still met the criteria for consolidation. As a result of the analysis, the Company determined these entities no longer qualify for consolidation as VIEs as the Company no longer qualifies as the primary beneficiary of the VIEs and therefore deconsolidated the entities. The deconsolidation removed the net assets and non-controlling interest from the VIEs and did not impact the Company’s condensed consolidated statements of operations. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) Attributable to Parent | $ 39,134 | $ 26,913 | $ 102,973 | $ 65,719 |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation and consolidation | 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 nine months ended September 30, 2023 and 2022 are unaudited. The condensed consolidated balance sheet as of December 31, 2022 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, 2022 (the “Annual Report”) filed with the SEC on March 1, 2023, as amended on March 2, 2023. The Company’s significant interim accounting policies include the proportional recognition of national advertising fund expenses within interim periods. Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year. |
Use of estimates | Use of estimatesThe 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 equity-based compensation awards, valuation of assets and liabilities acquired in business combinations, valuation of certain investments and other financial instruments including valuation of investments without readily determinable fair values, the evaluation of the recoverability of goodwill and long-lived assets, including intangible assets, allowance for expected credit losses, contingent liabilities, the present value of lease liabilities, income taxes, including deferred tax assets and liabilities, and the liability for the Company’s tax benefit arrangements. |
Marketable securities | Marketable securities Marketable securities primarily consist of commercial paper, corporate debt securities, U.S. treasury securities, and U.S. government agency securities. We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification at each balance sheet date. We may sell these securities at any time for use in current operations even if they have not yet reached maturity. The Company invests in a diversified portfolio of marketable securities and limits the concentration of its investment in any particular security. Securities with maturities greater than three months, but less than one year, are included in current assets and securities with maturities greater than one year are included within investments in non-current assets on the consolidated balance sheets. All marketable securities classified as available-for-sale are reported at fair value. If the estimated fair value of an available-for-sale debt security is below its amortized cost basis, then the Company evaluates the security for impairment. The Company considers its intent to sell the security or whether it is more likely than not that it will be required to sell the security before recovery of its amortized basis. If either of these criteria are met, the debt security’s amortized cost basis is written down to fair value through other income (expense), net in the consolidated statements of operations. If neither of these criteria are met, the Company evaluates whether unrealized losses have resulted from a credit loss or other factors. The factors considered in determining whether a credit loss exists can include the extent to which fair value is less than the amortized cost basis, changes to the rating of the security by a rating agency, any adverse conditions specifically related to the security, as well as other factors. An impairment relating to credit losses is recorded through an allowance for credit losses reported in other income (expense), net in the consolidated statements of operations. The allowance is limited by the amount that the fair value of the debt security is below its amortized cost basis. When a credit loss exists, the Company compares the present value of cash flows expected to be collected from the debt security with the amortized cost basis of the security to determine what allowance amount, if any, should be recorded. Unrealized gains or losses not resulting from credit losses are recorded through accumulated other comprehensive income (loss). Realized gains and losses from the sale of marketable securities are determined based on the specific identification method. Realized gains and losses are reported in other income (expense), net in the consolidated statements of operations. Interest income from marketable securities is recognized as earned within the condensed consolidated statement of operations. |
Fair value | Fair value ASC 820, Fair Value Measurements and Disclosures , establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. Categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The three levels are defined as follows: 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. |
Recent accounting pronouncements | Recent accounting pronouncementsThere are no recent accounting pronouncements that are expected to have a material impact on the Company’s financial position or results of operations. |
Investments - Held-to-maturity debt securities | Investments - Held-to-maturity debt securities As of September 30, 2023, the Company’s debt security investment consists of redeemable preferred shares that are accounted for as a held-to-maturity investment, with a contractual maturity in 2026. The Company’s investment is measured at amortized cost within investments in the condensed consolidated balance sheets. The Company reviews its held-to-maturity securities for expected credit losses under ASC Topic 326, Credit Impairment , on an ongoing basis. |
Summary of significant accoun_3
Summary of significant accounting policies (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of the Carrying Value and Estimated Fair Value of Certain Liabilities | The carrying value and estimated fair value of certain liabilities as of September 30, 2023 and December 31, 2022 were as follows: September 30, 2023 December 31, 2022 Carrying value Estimated fair value Carrying value Estimated fair value Liabilities Long-term debt (1) $ 2,009,625 $ 1,763,500 $ 2,025,188 $ 1,730,634 (1) The estimated fair value of the Company’s fixed rate long-term debt is estimated primarily based on current bid prices for the long-term debt. Judgment is required to develop these estimates. As such, the fair value of long-term debt is classified within Level 2, as defined under U.S. GAAP. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost, Gross Unrealized Gains (Losses), and Fair Value of Cash Equivalents and Marketable Securities | The following table summarizes the amortized cost, gross unrealized gains (losses), and fair value of the Company’s cash equivalents and marketable securities: September 30, 2023 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Cash Equivalents Marketable Securities Level 1 Money market funds $ 981 $ — $ — $ 981 $ 981 $ — Level 2 Commercial paper 74,471 — (86) 74,385 7,955 66,430 Corporate debt securities 44,252 — (157) 44,095 — 44,095 U.S. treasury securities 4,988 — (5) 4,983 — 4,983 U.S. government agency securities 3,209 — (5) 3,204 — 3,204 Total level 2 126,920 — (253) 126,667 7,955 118,712 Total $ 127,901 $ — $ (253) $ 127,648 $ 8,936 $ 118,712 |
Schedule of Allowance for Expected Credit Losses on Held-to-maturity Investments | A roll forward of the Company’s allowance for expected credit losses on held-to-maturity investments is as follows: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Beginning allowance for expected credit losses $ 15,052 $ 15,617 $ 14,957 $ 17,462 (Gain) loss on adjustment of allowance for expected credit losses (101) 273 (6) (1,572) Write-offs, net of recoveries — — — — Ending allowance for expected credit losses $ 14,951 $ 15,890 $ 14,951 $ 15,890 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Pro Forma Financial Information | The following pro forma financial information for the nine months ended September 30, 2022 summarizes the combined results of operations for the Company and Sunshine Fitness, as though the companies were combined as of the beginning of 2021. The three and nine months ended September 30, 2023 and the three months ended September 30, 2022 total revenues, income before taxes, and net income are included within the condensed consolidated statements of operations. For the nine months ended September 30, 2022 Total revenues $ 675,954 Income before taxes 110,246 Net income 74,008 |
Schedule of Purchase Consideration | The preliminary allocation of the purchase consideration was as follows: Amount Property and equipment $ 3,851 Right of use assets 5,424 Other long-term assets 95 Intangible assets 6,880 Goodwill 14,812 Deferred revenue (687) Other current liabilities (17) Lease liabilities (4,204) Total $ 26,154 |
Schedule of Components of Identifiable Intangible Assets Acquired | The following table sets forth the components of identifiable intangible assets acquired in the Florida Acquisition and their estimated useful lives as of the date of the acquisition: Preliminary Fair Value Preliminary Useful Life Reacquired franchise rights (1) $ 6,650 6.8 Customer relationships (2) 230 6.0 Total intangible assets subject to amortization $ 6,880 (1) Reacquired franchise rights represent the fair value of the reacquired franchise agreements using the income approach, specifically, the multi-period excess earnings method. (2) Customer relationships represent the fair value of the existing contractual customer relationships using the income approach, specifically, the multi-period excess earnings method. |
Goodwill and intangible assets
Goodwill and intangible assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill and Intangible Assets | A summary of goodwill and intangible assets at September 30, 2023 and December 31, 2022 is as follows: September 30, 2023 Gross Accumulated Net carrying Customer relationships $ 199,043 $ (165,174) $ 33,869 Reacquired franchise and area development rights 274,708 (69,715) 204,993 473,751 (234,889) 238,862 Indefinite-lived intangible: Trade and brand names 146,600 — 146,600 Total intangible assets $ 620,351 $ (234,889) $ 385,462 Goodwill $ 717,502 $ — $ 717,502 December 31, 2022 Gross Accumulated Net carrying Customer relationships $ 198,813 $ (153,243) $ 45,570 Reacquired franchise and area development rights 268,058 (43,161) 224,897 466,871 (196,404) 270,467 Indefinite-lived intangible: Trade and brand names 146,600 — 146,600 Total intangible assets $ 613,471 $ (196,404) $ 417,067 Goodwill $ 702,690 $ — $ 702,690 |
Schedule of Rollforward of Goodwill | A roll forward of goodwill between December 31, 2022 and September 30, 2023 is as follows: Franchise Corporate-owned stores Equipment Total As of December 31, 2022 $ 16,938 $ 593,086 $ 92,666 $ 702,690 Acquisition of franchisee-owned stores — 14,812 — 14,812 As of September 30, 2023 $ 16,938 $ 607,898 $ 92,666 $ 717,502 The following table summarizes the Company’s goodwill by reportable segment: September 30, 2023 December 31, 2022 Franchise $ 16,938 $ 16,938 Corporate-owned stores 607,898 593,086 Equipment 92,666 92,666 Consolidated goodwill $ 717,502 $ 702,690 |
Schedule of Amortization Expenses | The anticipated annual amortization expense related to intangible assets to be recognized in future years as of September 30, 2023 is as follows: Amount Remainder of 2023 $ 12,954 2024 49,190 2025 36,713 2026 32,079 2027 27,956 Thereafter 79,970 Total $ 238,862 |
Long-term debt (Tables)
Long-term debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt as of September 30, 2023 and December 31, 2022 consists of the following: September 30, 2023 December 31, 2022 2018-1 Class A-2-II notes $ 593,750 $ 598,438 2019-1 Class A-2 notes 529,375 533,500 2022-1 Class A-2-I notes 418,625 421,812 2022-1 Class A-2-II notes 467,875 471,437 Total debt, excluding deferred financing costs 2,009,625 2,025,187 Deferred financing costs, net of accumulated amortization (22,193) (26,306) Total debt 1,987,432 1,998,881 Current portion of long-term debt 20,750 20,750 Long-term debt, net of current portion $ 1,966,682 $ 1,978,131 |
Schedule of Future Annual Principal Payments of Long-term Debt | Future annual principal payments of long-term debt as of September 30, 2023 are as follows: Amount Remainder of 2023 $ 5,188 2024 20,750 2025 600,438 2026 419,312 2027 10,250 Thereafter 953,687 Total $ 2,009,625 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Balance Sheet Classification of Lease Assets and Liabilities | Leases Classification September 30, 2023 December 31, 2022 Assets Operating lease ROU assets Right of use asset, net $ 381,819 $ 346,937 Finance lease assets Property and equipment, net 219 370 Total lease assets $ 382,038 $ 347,307 Liabilities Current: Operating Other current liabilities $ 33,589 $ 33,233 Financing Other current liabilities 140 38 Noncurrent: Operating Lease liabilities, net of current portion 379,810 341,843 Financing Other liabilities 88 342 Total lease liabilities $ 413,627 $ 375,456 Weighted-average remaining lease term (years) - operating leases 8.1 8.1 Weighted-average discount rate - operating leases 5.2 % 4.7 % |
Schedule of Components of Lease Cost | During the three and nine months ended September 30, 2023 and 2022, the components of lease cost were as follows: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Operating lease cost $ 16,467 $ 14,677 $ 47,154 $ 41,411 Variable lease cost 5,917 5,691 16,936 15,415 Total lease cost $ 22,384 $ 20,368 $ 64,090 $ 56,826 Supplemental disclosures of cash flow information related to leases were as follows: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Cash paid for lease liabilities $ 13,877 $ 14,172 $ 41,985 $ 40,405 Operating lease ROU assets obtained in exchange for operating lease liabilities, excluding acquisitions $ 38,683 $ 6,073 $ 59,410 $ 29,234 Operating lease ROU assets obtained in exchange for operating lease liabilities through acquisitions $ — $ — $ 4,204 $ 162,827 |
Schedule of Supplemental Disclosures of Cash Flow Information Related to Leases | During the three and nine months ended September 30, 2023 and 2022, the components of lease cost were as follows: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Operating lease cost $ 16,467 $ 14,677 $ 47,154 $ 41,411 Variable lease cost 5,917 5,691 16,936 15,415 Total lease cost $ 22,384 $ 20,368 $ 64,090 $ 56,826 Supplemental disclosures of cash flow information related to leases were as follows: Three months ended September 30, Nine months ended September 30, 2023 2022 2023 2022 Cash paid for lease liabilities $ 13,877 $ 14,172 $ 41,985 $ 40,405 Operating lease ROU assets obtained in exchange for operating lease liabilities, excluding acquisitions $ 38,683 $ 6,073 $ 59,410 $ 29,234 Operating lease ROU assets obtained in exchange for operating lease liabilities through acquisitions $ — $ — $ 4,204 $ 162,827 |
Schedule of Maturities of Lease Liabilities | As of September 30, 2023, maturities of lease liabilities were as follows: Amount Remainder of 2023 $ 9,506 2024 60,149 2025 68,800 2026 69,264 2027 66,584 Thereafter 242,152 Total lease payments $ 516,455 Less: imputed interest 102,828 Present value of lease liabilities $ 413,627 |
Schedule of Maturities of Lease Liabilities | As of September 30, 2023, maturities of lease liabilities were as follows: Amount Remainder of 2023 $ 9,506 2024 60,149 2025 68,800 2026 69,264 2027 66,584 Thereafter 242,152 Total lease payments $ 516,455 Less: imputed interest 102,828 Present value of lease liabilities $ 413,627 |
Revenue recognition (Tables)
Revenue recognition (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Contract Liabilities | The following table reflects the change in contract liabilities between December 31, 2022 and September 30, 2023: Contract liabilities Balance at December 31, 2022 $ 86,911 Revenue recognized that was included in the contract liability at the beginning of the year (50,443) Increase, excluding amounts recognized as revenue during the period 60,554 Balance at September 30, 2023 $ 97,022 |
Schedule of Remaining Performance Obligation | The following table illustrates estimated revenues expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of September 30, 2023. The Company has elected to exclude short-term contracts, sales and usage-based royalties and any other variable consideration recognized on an “as invoiced” basis. Contract liabilities to be recognized in: Amount Remainder of 2023 $ 40,424 2024 25,559 2025 4,967 2026 3,894 2027 3,417 Thereafter 18,761 Total $ 97,022 |
Related party transactions (Tab
Related party transactions (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Activity with franchisees considered to be related parties is summarized below: For the three months ended For the nine months ended 2023 2022 2023 2022 Franchise revenue - interim CEO $ 958 $ 729 $ 2,882 $ 2,461 Franchise revenue - other 656 233 1,206 434 Equipment revenue - interim CEO 1,294 1,648 2,305 1,661 Equipment revenue - other 1,641 — 1,641 — Total revenue from related parties $ 4,549 $ 2,610 $ 8,034 $ 4,556 |
Earnings per share (Tables)
Earnings per share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of 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 Nine months ended 2023 2022 2023 2022 Numerator Net income $ 41,324 $ 30,677 $ 110,272 $ 74,124 Less: net income attributable to non-controlling interests 2,190 3,764 7,299 8,405 Net income attributable to Planet Fitness, Inc. $ 39,134 $ 26,913 $ 102,973 $ 65,719 Denominator Weighted-average shares of Class A common stock outstanding - basic 84,609,522 84,156,488 84,557,902 84,377,324 Effect of dilutive securities: Stock options 212,953 338,981 239,709 357,315 Restricted stock units 48,282 50,854 64,347 62,050 Performance stock units 15,562 290 8,354 1,235 Weighted-average shares of Class A common stock outstanding - diluted 84,886,319 84,546,613 84,870,312 84,797,924 Earnings per share of Class A common stock - basic $ 0.46 $ 0.32 $ 1.22 $ 0.78 Earnings per share of Class A common stock - diluted $ 0.46 $ 0.32 $ 1.21 $ 0.78 |
Income taxes (Tables)
Income taxes (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Projected Future Payments Under Tax Benefit Arrangements | Projected future payments under the tax benefit arrangements are as follows: Amount Remainder of 2023 $ 11,129 2024 38,397 2025 47,379 2026 49,868 2027 52,515 Thereafter 290,474 Total $ 489,762 |
Segments (Tables)
Segments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule 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 nine months ended September 30, 2023 and 2022. 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 Nine months ended 2023 2022 2023 2022 Revenue Franchise segment revenue - U.S. $ 95,209 $ 78,873 $ 281,836 $ 237,612 Franchise segment revenue - International 2,956 1,873 7,855 5,761 Franchise segment total 98,165 80,746 289,691 243,373 Corporate-owned stores - U.S. 112,080 100,247 329,505 275,962 Corporate-owned stores - International 1,165 1,083 3,380 2,978 Corporate-owned stores total 113,245 101,330 332,885 278,940 Equipment segment - U.S. 62,605 60,952 158,335 124,781 Equipment segment - International 3,536 1,358 5,329 8,410 Equipment segment total 66,141 62,310 163,664 133,191 Total revenue $ 277,551 $ 244,386 $ 786,240 $ 655,504 Three months ended Nine months ended 2023 2022 2023 2022 Segment EBITDA Franchise $ 67,583 $ 53,475 $ 198,418 $ 167,910 Corporate-owned stores 44,264 40,446 126,499 103,287 Equipment 16,434 15,803 39,134 34,638 Corporate and other (18,547) (10,458) (52,238) (41,059) Total Segment EBITDA $ 109,734 $ 99,266 $ 311,813 $ 264,776 |
Schedule of Reconciliation of Total Segment EBITDA to Income Before Taxes | The following table reconciles total Segment EBITDA to income before taxes: Three months ended Nine months ended 2023 2022 2023 2022 Total Segment EBITDA $ 109,734 $ 99,266 $ 311,813 $ 264,776 Less: Depreciation and amortization 37,477 32,572 110,254 90,427 Other income 148 4,762 631 9,000 Equity losses of unconsolidated entities, net of tax (242) (2) (580) (334) Income from operations 72,351 61,934 201,508 165,683 Interest income 4,245 1,561 12,339 2,244 Interest expense (21,704) (21,917) (64,771) (66,527) Other income 148 4,762 631 9,000 Income before income taxes $ 55,040 $ 46,340 $ 149,707 $ 110,400 |
Schedule of Company's Assets by Reportable Segment | The following table summarizes the Company’s assets by reportable segment: September 30, 2023 December 31, 2022 Franchise $ 177,045 $ 161,355 Corporate-owned stores 1,624,489 1,559,985 Equipment 187,899 200,020 Unallocated 955,414 933,229 Total consolidated assets $ 2,944,847 $ 2,854,589 |
Schedule of Company's Goodwill by Reportable Segment | A roll forward of goodwill between December 31, 2022 and September 30, 2023 is as follows: Franchise Corporate-owned stores Equipment Total As of December 31, 2022 $ 16,938 $ 593,086 $ 92,666 $ 702,690 Acquisition of franchisee-owned stores — 14,812 — 14,812 As of September 30, 2023 $ 16,938 $ 607,898 $ 92,666 $ 717,502 The following table summarizes the Company’s goodwill by reportable segment: September 30, 2023 December 31, 2022 Franchise $ 16,938 $ 16,938 Corporate-owned stores 607,898 593,086 Equipment 92,666 92,666 Consolidated goodwill $ 717,502 $ 702,690 |
Corporate-owned and franchise_2
Corporate-owned and franchisee-owned stores (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Franchisors [Abstract] | |
Schedule of Changes in Corporate-Owned and Franchisee-Owned Stores | The following table shows changes in corporate-owned and franchisee-owned stores for the three and nine months ended September 30, 2023 and 2022: For the three months ended For the nine months ended 2023 2022 2023 2022 Franchisee-owned stores: Stores operated at beginning of period 2,230 2,091 2,176 2,142 New stores opened 24 25 82 89 Stores acquired from the Company — 6 — 6 Stores debranded, sold, or consolidated (1) — — (4) (115) Stores operated at end of period 2,254 2,122 2,254 2,122 Corporate-owned stores: Stores operated at beginning of period 242 233 234 112 New stores opened 2 4 6 11 Stores sold to franchisees — (6) — (6) Stores acquired from franchisees — — 4 114 Stores operated at end of period 244 231 244 231 Total stores: Stores operated at beginning of period 2,472 2,324 2,410 2,254 New stores opened 26 29 88 100 Stores acquired, debranded, sold or consolidated (1) — — — (1) Stores operated at end of period 2,498 2,353 2,498 2,353 (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. The Company retains 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 prior approval. This often coincides with an enlargement, re-equipment and/or refurbishment of the remaining store. |
Business organization (Details)
Business organization (Details) member in Millions | 9 Months Ended | ||||||
Sep. 30, 2023 state member segment store | Jun. 30, 2023 store | Dec. 31, 2022 store | Sep. 30, 2022 store | Jun. 30, 2022 store | Dec. 31, 2021 store | Aug. 05, 2015 | |
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||||
Number of owned and franchised locations | store | 2,498 | 2,472 | 2,410 | 2,353 | 2,324 | 2,254 | |
Number of states in which entity operates | state | 50 | ||||||
Number of reportable segments | segment | 3 | ||||||
Pla-Fit Holdings, LLC | |||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||||
Percentage of ownership | 100% | 100% | |||||
Percentage of economic interest | 96.90% | ||||||
Pla-Fit Holdings, LLC | Holdings Units | |||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||||
Percentage of economic interest | 3.10% | ||||||
Planet Intermediate, LLC | Pla-Fit Holdings, LLC | |||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||||
Percentage of ownership | 100% | ||||||
Planet Fitness Holdings, LLC | Planet Intermediate, LLC | |||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||||
Percentage of ownership | 100% | ||||||
Minimum | |||||||
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items] | |||||||
Number of members (more than) | member | 18.5 |
Summary of significant accoun_4
Summary of significant accounting policies - Schedule of the Carrying Value and Estimated Fair Value of Certain Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Carrying value | ||
Liabilities | ||
Long-term debt | $ 2,009,625 | $ 2,025,188 |
Estimated fair value | ||
Liabilities | ||
Long-term debt | $ 1,763,500 | $ 1,730,634 |
Investments - Amortized Cost, G
Investments - Amortized Cost, Gross Unrealized Gains (Losses), and Fair Value of Cash Equivalents and Marketable Securities (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Schedule of Equity Method Investments [Line Items] | ||
Cash and cash equivalents | $ 308,970 | $ 409,840 |
Amortized Cost | 127,901 | |
Unrealized Gains | 0 | |
Unrealized Losses | (253) | |
Debt securities | 127,648 | |
Cash Equivalents | ||
Schedule of Equity Method Investments [Line Items] | ||
Debt securities | 8,936 | |
Marketable Securities | ||
Schedule of Equity Method Investments [Line Items] | ||
Debt securities | 118,712 | |
Level 2 | ||
Schedule of Equity Method Investments [Line Items] | ||
Amortized Cost | 126,920 | |
Unrealized Gains | 0 | |
Unrealized Losses | (253) | |
Debt securities | 126,667 | |
Level 2 | Cash Equivalents | ||
Schedule of Equity Method Investments [Line Items] | ||
Debt securities | 7,955 | |
Level 2 | Marketable Securities | ||
Schedule of Equity Method Investments [Line Items] | ||
Debt securities | 118,712 | |
Money market funds | Level 1 | ||
Schedule of Equity Method Investments [Line Items] | ||
Cash and cash equivalents | 981 | |
Money market funds | Level 1 | Cash Equivalents | ||
Schedule of Equity Method Investments [Line Items] | ||
Cash and cash equivalents | 981 | |
Money market funds | Level 1 | Marketable Securities | ||
Schedule of Equity Method Investments [Line Items] | ||
Cash and cash equivalents | 0 | |
Commercial paper | Level 2 | ||
Schedule of Equity Method Investments [Line Items] | ||
Amortized Cost | 74,471 | |
Unrealized Gains | 0 | |
Unrealized Losses | (86) | |
Debt securities | 74,385 | |
Commercial paper | Level 2 | Cash Equivalents | ||
Schedule of Equity Method Investments [Line Items] | ||
Debt securities | 7,955 | |
Commercial paper | Level 2 | Marketable Securities | ||
Schedule of Equity Method Investments [Line Items] | ||
Debt securities | 66,430 | |
Corporate debt securities | Level 2 | ||
Schedule of Equity Method Investments [Line Items] | ||
Amortized Cost | 44,252 | |
Unrealized Gains | 0 | |
Unrealized Losses | (157) | |
Debt securities | 44,095 | |
Corporate debt securities | Level 2 | Cash Equivalents | ||
Schedule of Equity Method Investments [Line Items] | ||
Debt securities | 0 | |
Corporate debt securities | Level 2 | Marketable Securities | ||
Schedule of Equity Method Investments [Line Items] | ||
Debt securities | 44,095 | |
U.S. treasury securities | Level 2 | ||
Schedule of Equity Method Investments [Line Items] | ||
Amortized Cost | 4,988 | |
Unrealized Gains | 0 | |
Unrealized Losses | (5) | |
Debt securities | 4,983 | |
U.S. treasury securities | Level 2 | Cash Equivalents | ||
Schedule of Equity Method Investments [Line Items] | ||
Debt securities | 0 | |
U.S. treasury securities | Level 2 | Marketable Securities | ||
Schedule of Equity Method Investments [Line Items] | ||
Debt securities | 4,983 | |
U.S. government agency securities | Level 2 | ||
Schedule of Equity Method Investments [Line Items] | ||
Amortized Cost | 3,209 | |
Unrealized Gains | 0 | |
Unrealized Losses | (5) | |
Debt securities | 3,204 | |
U.S. government agency securities | Level 2 | Cash Equivalents | ||
Schedule of Equity Method Investments [Line Items] | ||
Debt securities | 0 | |
U.S. government agency securities | Level 2 | Marketable Securities | ||
Schedule of Equity Method Investments [Line Items] | ||
Debt securities | $ 3,204 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Nov. 09, 2023 | Jun. 23, 2023 | Apr. 09, 2021 | Aug. 31, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2021 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Marketable securities | $ 0 | |||||||||||
Non-current marketable debt securities | $ 10,252,000 | 0 | $ 10,252,000 | |||||||||
Amortized cost of held-to-maturity debt security investments | 29,767,000 | 28,277,000 | 29,767,000 | |||||||||
Allowance for expected credit loss | 14,951,000 | $ 14,957,000 | $ 15,890,000 | 14,951,000 | $ 15,890,000 | $ 15,052,000 | $ 15,617,000 | $ 17,462,000 | ||||
Dividends accrued on investment | 511,000 | 477,000 | 1,490,000 | 1,391,000 | ||||||||
Equity losses of unconsolidated entities, net of tax | 242,000 | 2,000 | 580,000 | 334,000 | ||||||||
Planet Fitness Australia Holdings | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership percentage | 21% | 21% | ||||||||||
Payment to acquire equity method investment | $ 10,000 | $ 2,449,000 | ||||||||||
Equity losses of unconsolidated entities, net of tax | 94,000 | $ 2,000 | 432,000 | $ 334,000 | ||||||||
Underlying equity in net assets | 11,370,000 | $ 11,802,000 | 11,370,000 | |||||||||
Planet Fitmex, LLC | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership percentage | 12.50% | 22.20% | ||||||||||
Payment to acquire equity method investment | $ 10,000,000 | $ 10,000,000 | ||||||||||
Equity losses of unconsolidated entities, net of tax | 148,000 | 148,000 | ||||||||||
Underlying equity in net assets | $ 19,852,000 | $ 19,852,000 | ||||||||||
Total investment | $ 20,000 | |||||||||||
Planet Fitmex, LLC | Subsequent Event | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Ownership percentage | 25.20% | |||||||||||
Payment to acquire equity method investment | $ 15,596,000 |
Investments - Schedule of Allow
Investments - Schedule of Allowance for Expected Credit Losses on Held-to-maturity Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Securities, Held-to-maturity, Allowance for Credit Loss [Roll Forward] | ||||
Beginning allowance for expected credit losses | $ 15,052 | $ 15,617 | $ 14,957 | $ 17,462 |
(Gain) loss on adjustment of allowance for expected credit losses | (101) | 273 | (6) | (1,572) |
Write-offs, net of recoveries | 0 | 0 | 0 | 0 |
Ending allowance for expected credit losses | $ 14,951 | $ 15,890 | $ 14,951 | $ 15,890 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Thousands | Apr. 16, 2023 USD ($) store | Sep. 30, 2023 store | Jun. 30, 2023 store | Dec. 31, 2022 store | Sep. 30, 2022 store | Jun. 30, 2022 store | Feb. 10, 2022 store | Dec. 31, 2021 store |
Business Acquisition [Line Items] | ||||||||
Number of owned and franchised locations | store | 2,498 | 2,472 | 2,410 | 2,353 | 2,324 | 2,254 | ||
Sunshine Fitness | ||||||||
Business Acquisition [Line Items] | ||||||||
Percentage of voting interests acquired | 100% | |||||||
Number of owned and franchised locations | store | 114 | |||||||
Florida Acquisition | ||||||||
Business Acquisition [Line Items] | ||||||||
Number of owned and franchised locations | store | 4 | |||||||
Purchase price of the acquisition | $ | $ 26,264 | |||||||
Loss on unfavorable reacquired franchise rights | $ | 110 | |||||||
Consideration transferred, adjusted | $ | $ 26,154 |
Acquisitions - Schedule of Pro
Acquisitions - Schedule of Pro Forma Financial Information (Details) - Sunshine Fitness $ in Thousands | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Business Acquisition [Line Items] | |
Total revenues | $ 675,954 |
Income before taxes | 110,246 |
Net income | $ 74,008 |
Acquisitions - Schedule of Purc
Acquisitions - Schedule of Purchase Consideration (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Apr. 16, 2023 | Dec. 31, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 717,502 | $ 702,690 | |
Florida Acquisition | |||
Business Acquisition [Line Items] | |||
Property and equipment | $ 3,851 | ||
Right of use assets | 5,424 | ||
Other long-term assets | 95 | ||
Intangible assets | 6,880 | ||
Goodwill | 14,812 | ||
Deferred revenue | (687) | ||
Other current liabilities | (17) | ||
Lease liabilities | (4,204) | ||
Net assets acquired | $ 26,154 |
Acquisitions - Components of Id
Acquisitions - Components of Identifiable Intangible Assets Acquired (Details) - Florida Acquisition $ in Thousands | Apr. 16, 2023 USD ($) |
Business Acquisition [Line Items] | |
Preliminary Fair Value | $ 6,880 |
Reacquired franchise rights | |
Business Acquisition [Line Items] | |
Preliminary Fair Value | $ 6,650 |
Preliminary Useful Life | 6 years 9 months 18 days |
Customer relationships | |
Business Acquisition [Line Items] | |
Preliminary Fair Value | $ 230 |
Preliminary Useful Life | 6 years |
Sale of corporate-owned stores
Sale of corporate-owned stores (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2022 USD ($) store | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Proceeds from sale of corporate-owned stores | $ 0 | $ 20,820 | ||
Gain on sale of corporate-owned stores | $ 0 | $ 1,324 | ||
Sale | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of stores sold | store | 6 | |||
Proceeds from sale of corporate-owned stores | $ 20,820 | |||
Net value of assets sold | 19,496 | |||
Goodwill | 14,423 | |||
Intangible assets | 2,629 | |||
Net tangible assets | $ 2,444 | |||
Gain on sale of corporate-owned stores | $ 1,324 |
Goodwill and intangible asset_2
Goodwill and intangible assets - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Goodwill And Intangible Assets [Line Items] | ||
Gross carrying amount | $ 473,751 | $ 466,871 |
Accumulated amortization | (234,889) | (196,404) |
Net carrying Amount | 238,862 | 270,467 |
Total intangible assets, Gross carrying amount | 620,351 | 613,471 |
Total intangible assets, Net carrying Amount | 385,462 | 417,067 |
Goodwill, Gross carrying amount | 717,502 | 702,690 |
Goodwill, Accumulated amortization | 0 | 0 |
Goodwill, Net carrying Amount | 717,502 | 702,690 |
Trade and brand names | ||
Goodwill And Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 146,600 | 146,600 |
Customer relationships | ||
Goodwill And Intangible Assets [Line Items] | ||
Gross carrying amount | 199,043 | 198,813 |
Accumulated amortization | (165,174) | (153,243) |
Net carrying Amount | 33,869 | 45,570 |
Reacquired franchise and area development rights | ||
Goodwill And Intangible Assets [Line Items] | ||
Gross carrying amount | 274,708 | 268,058 |
Accumulated amortization | (69,715) | (43,161) |
Net carrying Amount | $ 204,993 | $ 224,897 |
Goodwill and intangible asset_3
Goodwill and intangible assets - Schedule of Rollforward of Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Beginning Balance | $ 702,690 |
Acquisition of franchisee-owned stores | 14,812 |
Ending Balance | 717,502 |
Franchise | |
Goodwill [Roll Forward] | |
Beginning Balance | 16,938 |
Acquisition of franchisee-owned stores | 0 |
Ending Balance | 16,938 |
Corporate-owned stores | |
Goodwill [Roll Forward] | |
Beginning Balance | 593,086 |
Acquisition of franchisee-owned stores | 14,812 |
Ending Balance | 607,898 |
Equipment | |
Goodwill [Roll Forward] | |
Beginning Balance | 92,666 |
Acquisition of franchisee-owned stores | 0 |
Ending Balance | $ 92,666 |
Goodwill and intangible asset_4
Goodwill and intangible assets - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Impairment charges | $ 0 | |||
Amortization of intangible assets | $ 12,965,000 | $ 10,611,000 | $ 38,517,000 | $ 29,644,000 |
Goodwill and intangible asset_5
Goodwill and intangible assets - Schedule of Amortization Expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Remainder of 2023 | $ 12,954 | |
2024 | 49,190 | |
2025 | 36,713 | |
2026 | 32,079 | |
2027 | 27,956 | |
Thereafter | 79,970 | |
Net carrying Amount | $ 238,862 | $ 270,467 |
Long-term debt - Schedule of Lo
Long-term debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Total debt, excluding deferred financing costs | $ 2,009,625 | $ 2,025,187 |
Deferred financing costs, net of accumulated amortization | (22,193) | (26,306) |
Total debt | 1,987,432 | 1,998,881 |
Current portion of long-term debt | 20,750 | 20,750 |
Long-term debt, net of current portion | 1,966,682 | 1,978,131 |
2018-1 Class A-2-II notes | Senior fixed-rate term notes | ||
Debt Instrument [Line Items] | ||
Total debt, excluding deferred financing costs | 593,750 | 598,438 |
2019-1 Class A-2 notes | Senior fixed-rate term notes | ||
Debt Instrument [Line Items] | ||
Total debt, excluding deferred financing costs | 529,375 | 533,500 |
2022-1 Class A-2-I notes | Senior fixed-rate term notes | ||
Debt Instrument [Line Items] | ||
Total debt, excluding deferred financing costs | 418,625 | 421,812 |
2022-1 Class A-2-II notes | Senior fixed-rate term notes | ||
Debt Instrument [Line Items] | ||
Total debt, excluding deferred financing costs | $ 467,875 | $ 471,437 |
Long-term debt - Schedule of Fu
Long-term debt - Schedule of Future Annual Principal Payments of Long-term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
Remainder of 2023 | $ 5,188 | |
2024 | 20,750 | |
2025 | 600,438 | |
2026 | 419,312 | |
2027 | 10,250 | |
Thereafter | 953,687 | |
Total | $ 2,009,625 | $ 2,025,187 |
Long-term debt - Narrative (Det
Long-term debt - Narrative (Details) | 9 Months Ended | |||||
May 09, 2022 USD ($) | Feb. 10, 2022 USD ($) extension | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 03, 2019 USD ($) | Aug. 01, 2018 USD ($) | |
Debt Instrument [Line Items] | ||||||
Proceeds from issuance of Variable Funding Notes | $ 0 | $ 75,000,000 | ||||
Repayment of long-term debt and Variable Funding Notes | 15,563,000 | 719,625,000 | ||||
Debt issuance costs | $ 16,193,000 | $ 10,577,000 | $ 27,133,000 | |||
Restricted cash | $ 46,381,000 | |||||
2018-1 Class A-2-I notes | ||||||
Debt Instrument [Line Items] | ||||||
Loss on extinguishment of debt | $ 1,583,000 | |||||
2018-1 Class A-2-I notes | Senior fixed-rate term notes | ||||||
Debt Instrument [Line Items] | ||||||
Fixed interest rate | 4.262% | |||||
Principal amount | $ 575,000,000 | |||||
2018-1 Class A-2-II notes | Senior fixed-rate term notes | ||||||
Debt Instrument [Line Items] | ||||||
Fixed interest rate | 4.666% | |||||
Principal amount | $ 625,000,000 | |||||
Variable funding notes | Borrowings under Variable Funding Notes | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 75,000,000 | |||||
2019-1 Class A-2 notes | Senior fixed-rate term notes | ||||||
Debt Instrument [Line Items] | ||||||
Fixed interest rate | 3.858% | |||||
Principal amount | $ 550,000,000 | |||||
3.251% Fixed Rate Class A-2-I Senior Secured Notes | Senior fixed-rate term notes | ||||||
Debt Instrument [Line Items] | ||||||
Fixed interest rate | 3.251% | |||||
Principal amount | $ 425,000 | |||||
4.008% Fixed Rate Class A-2-II Senior Secured Notes | Senior fixed-rate term notes | ||||||
Debt Instrument [Line Items] | ||||||
Fixed interest rate | 4.008% | |||||
Principal amount | $ 475,000 | |||||
2022 Variable Funding Notes | Borrowings under Variable Funding Notes | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 75,000 | |||||
Proceeds from issuance of Variable Funding Notes | $ 75,000,000 | |||||
Repayment of long-term debt and Variable Funding Notes | $ 75,000,000 | |||||
Commitment fee percentage | 0.50% | |||||
Number of additional extensions | extension | 2 | |||||
Term of extension (in years) | 1 year | |||||
Line of credit interest rate | 5% | |||||
Securitized Senior Notes | Securitized Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Cap on non-securitized indebtedness | $ 50,000,000 | |||||
Leverage ratio cap | 7 |
Leases - Balance Sheet Classifi
Leases - Balance Sheet Classification of Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property and equipment, net of accumulated depreciation of $296,677 and $227,869 as of September 30, 2023 and December 31, 2022, respectively | Property and equipment, net of accumulated depreciation of $296,677 and $227,869 as of September 30, 2023 and December 31, 2022, respectively |
Operating lease ROU assets | $ 381,819 | $ 346,937 |
Finance lease assets | 219 | 370 |
Total lease assets | $ 382,038 | $ 347,307 |
Liabilities | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities |
Current operating lease liabilities | $ 33,589 | $ 33,233 |
Current financing lease liabilities | 140 | 38 |
Noncurrent operating lease liabilities | 379,810 | 341,843 |
Noncurrent finance lease liabilities | 88 | 342 |
Total lease liabilities | $ 413,627 | $ 375,456 |
Weighted-average remaining lease term (years) - operating leases | 8 years 1 month 6 days | 8 years 1 month 6 days |
Weighted-average discount rate - operating leases | 5.20% | 4.70% |
Leases - Components of Lease Co
Leases - Components of Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 16,467 | $ 14,677 | $ 47,154 | $ 41,411 |
Variable lease cost | 5,917 | 5,691 | 16,936 | 15,415 |
Total lease cost | $ 22,384 | $ 20,368 | $ 64,090 | $ 56,826 |
Leases - Supplemental Disclosur
Leases - Supplemental Disclosures of Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Cash paid for lease liabilities | $ 13,877 | $ 14,172 | $ 41,985 | $ 40,405 |
Operating lease ROU assets obtained in exchange for operating lease liabilities, excluding acquisitions | 38,683 | 6,073 | 59,410 | 29,234 |
Operating lease ROU assets obtained in exchange for operating lease liabilities through acquisitions | $ 0 | $ 0 | $ 4,204 | $ 162,827 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Remainder of 2023 | $ 9,506 | |
2024 | 60,149 | |
2025 | 68,800 | |
2026 | 69,264 | |
2027 | 66,584 | |
Thereafter | 242,152 | |
Total lease payments | 516,455 | |
Less: imputed interest | 102,828 | |
Present value of lease liabilities | $ 413,627 | $ 375,456 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Leases [Abstract] | |
Lease payments for leases signed but not yet commenced | $ 29,938 |
Revenue recognition - Schedule
Revenue recognition - Schedule of Contract Liabilities (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Contract liabilities | |
Beginning Balance | $ 86,911 |
Revenue recognized that was included in the contract liability at the beginning of the year | (50,443) |
Increase, excluding amounts recognized as revenue during the period | 60,554 |
Ending Balance | $ 97,022 |
Revenue recognition - Remaining
Revenue recognition - Remaining Performance Obligation (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 97,022 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 40,424 |
Remaining performance obligation, expected timing of satisfaction | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 25,559 |
Remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 4,967 |
Remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 3,894 |
Remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 3,417 |
Remaining performance obligation, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 18,761 |
Remaining performance obligation, expected timing of satisfaction |
Revenue recognition - Narrative
Revenue recognition - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Revenue from Contract with Customer [Abstract] | ||
Equipment deposits | $ 13,933 | $ 8,443 |
Related party transactions - Sc
Related party transactions - Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Related Party Transaction [Line Items] | ||||
Total revenue | $ 277,551 | $ 244,386 | $ 786,240 | $ 655,504 |
Related Party | ||||
Related Party Transaction [Line Items] | ||||
Total revenue | 4,549 | 2,610 | 8,034 | 4,556 |
Related Party | Franchise revenue - interim CEO | ||||
Related Party Transaction [Line Items] | ||||
Total revenue | 958 | 729 | 2,882 | 2,461 |
Related Party | Franchise revenue - other | ||||
Related Party Transaction [Line Items] | ||||
Total revenue | 656 | 233 | 1,206 | 434 |
Related Party | Equipment revenue - interim CEO | ||||
Related Party Transaction [Line Items] | ||||
Total revenue | 1,294 | 1,648 | 2,305 | 1,661 |
Related Party | Equipment revenue - other | ||||
Related Party Transaction [Line Items] | ||||
Total revenue | $ 1,641 | $ 0 | $ 1,641 | $ 0 |
Related party transactions - Na
Related party transactions - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Deferred revenue | $ 97,022 | $ 97,022 | $ 86,911 | ||
Accounts payable | 28,364 | 28,364 | 20,578 | ||
Revenue | 277,551 | $ 244,386 | 786,240 | $ 655,504 | |
Selling, general and administrative | 33,290 | 27,148 | 93,705 | 86,176 | |
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Accounts payable | 81,687 | 81,687 | 80,717 | ||
Revenue | 4,549 | 2,610 | 8,034 | 4,556 | |
Related Party | Administrative Service | Planet Fitness NAF, LLC | |||||
Related Party Transaction [Line Items] | |||||
Revenue | $ 893 | 651 | $ 2,679 | 1,955 | |
Related Party | Director | Amenity Tracking Compliance Software Company | |||||
Related Party Transaction [Line Items] | |||||
Ownership percentage | 10.50% | 10.50% | |||
Related Party | Reacquired area development rights | |||||
Related Party Transaction [Line Items] | |||||
Deferred revenue | $ 722 | $ 722 | 467 | ||
Related Party | Reacquired area development rights | CEO | |||||
Related Party Transaction [Line Items] | |||||
Deferred revenue | 146 | 146 | $ 138 | ||
Affiliated Entity | Corporate travel | |||||
Related Party Transaction [Line Items] | |||||
Selling, general and administrative | 63 | 71 | 427 | 246 | |
Affiliated Entity | Payments amenity tracking compliance software | |||||
Related Party Transaction [Line Items] | |||||
Purchases from related party | $ 101 | $ 109 | $ 270 | $ 198 |
Stockholders' equity (Details)
Stockholders' equity (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Nov. 04, 2022 | |
Class of Stock [Line Items] | ||||||
Repurchase and retirement of common stock | $ 50,015,000 | $ 126,078,000 | $ 94,314,000 | |||
Share repurchase excise tax | $ 1,048,000 | $ 1,048,000 | ||||
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 | 50,000,000 | |||
Preferred stock, shares issued (in shares) | 0 | 0 | 0 | |||
Preferred stock, shares outstanding (in shares) | 0 | 0 | 0 | |||
2022 share repurchase program | ||||||
Class of Stock [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 500,000,000 | |||||
Remaining authorized amount | $ 374,970,000 | $ 374,970,000 | ||||
Pla-Fit Holdings, LLC | ||||||
Class of Stock [Line Items] | ||||||
Stock received during period, shares | 1,417,603 | 3,412,312 | ||||
Investor | Secondary Offering and Exchange | ||||||
Class of Stock [Line Items] | ||||||
Number of units held by owners (in shares) | 85,410,391 | 85,410,391 | ||||
Investor | Pla-Fit Holdings, LLC | Secondary Offering and Exchange | ||||||
Class of Stock [Line Items] | ||||||
Percentage of economic interest | 96.90% | |||||
Continuing LLC Owners | Secondary Offering and Exchange | ||||||
Class of Stock [Line Items] | ||||||
Number of units held by owners (in shares) | 2,733,410 | 2,733,410 | ||||
Continuing LLC Owners | Pla-Fit Holdings, LLC | Secondary Offering and Exchange | ||||||
Class of Stock [Line Items] | ||||||
Percentage of economic interest | 3.10% | |||||
Holdings Units | ||||||
Class of Stock [Line Items] | ||||||
Shares exchanged for Class A common stock (in shares) | 1 | |||||
Holdings Units | Sunshine Fitness | ||||||
Class of Stock [Line Items] | ||||||
Business acquisition, equity interest issued or issuable, number of shares | 3,637,678 | |||||
Class A Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Number of shares exchanged (in shares) | 1,417,603 | 3,412,312 | ||||
Number of Class A shares exchanged (in shares) | 1,417,603 | 3,412,312 | ||||
Class A Common Stock | 2022 share repurchase program | ||||||
Class of Stock [Line Items] | ||||||
Repurchase and retirement of common stock (in shares) | 1,698,753 | |||||
Repurchase and retirement of common stock | $ 125,030,000 | |||||
Class A Common Stock | Investor | Secondary Offering and Exchange | ||||||
Class of Stock [Line Items] | ||||||
Number of units held by owners (in shares) | 85,410,391 | 85,410,391 | ||||
Class A Common Stock | Investor | Pla-Fit Holdings, LLC | Secondary Offering and Exchange | Common Stockholders | ||||||
Class of Stock [Line Items] | ||||||
Percentage of voting power | 96.90% | 96.90% | ||||
Class A Common Stock | Sunshine Fitness | ||||||
Class of Stock [Line Items] | ||||||
Business acquisition, equity interest issued or issuable, number of shares | 517,348 | |||||
Class B Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Shares exchanged for Class A common stock (in shares) | 1 | |||||
Number of shares exchanged (in shares) | 1,417,603 | 3,412,312 | ||||
Class B Common Stock | Continuing LLC Owners | Secondary Offering and Exchange | ||||||
Class of Stock [Line Items] | ||||||
Number of units held by owners (in shares) | 2,733,410 | 2,733,410 | ||||
Class B Common Stock | Continuing LLC Owners | Pla-Fit Holdings, LLC | Secondary Offering and Exchange | Continuing LLC Owners | ||||||
Class of Stock [Line Items] | ||||||
Percentage of voting power | 3.10% | 3.10% |
Earnings per share - Narrative
Earnings per share - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Performance stock units | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 36,717 | 1,058 | 1,981 | 281 |
Holdings Units | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Shares exchanged for Class A common stock (in shares) | 1 | |||
Class B Common Stock | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Shares exchanged for Class A common stock (in shares) | 1 | |||
Class B Common Stock | Equity Unit Purchase Agreements | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 3,533,885 | 6,145,722 | 4,236,271 | 5,773,562 |
Class B Common Stock | Stock options | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 307,606 | 258,093 | 250,595 | 243,507 |
Class B Common Stock | Restricted stock units | ||||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share (in shares) | 968 | 705 | 5,684 | 323 |
Earnings per share - Reconcilia
Earnings per share - Reconciliation of Numerators and Denominators Used to Compute Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator | ||||
Net income | $ 41,324 | $ 30,677 | $ 110,272 | $ 74,124 |
Less: net income attributable to non-controlling interests | 2,190 | 3,764 | 7,299 | 8,405 |
Net income attributable to Planet Fitness, Inc. | $ 39,134 | $ 26,913 | $ 102,973 | $ 65,719 |
Stock options | ||||
Effect of dilutive securities: | ||||
Weighted-average shares outstanding adjustment (in shares) | 212,953 | 338,981 | 239,709 | 357,315 |
Restricted stock units | ||||
Effect of dilutive securities: | ||||
Weighted-average shares outstanding adjustment (in shares) | 48,282 | 50,854 | 64,347 | 62,050 |
Performance stock units | ||||
Effect of dilutive securities: | ||||
Weighted-average shares outstanding adjustment (in shares) | 15,562 | 290 | 8,354 | 1,235 |
Class A Common Stock | ||||
Denominator | ||||
Weighted-average shares of Class A common stock outstanding - basic (in shares) | 84,609,522 | 84,156,488 | 84,557,902 | 84,377,324 |
Effect of dilutive securities: | ||||
Weighted-average shares of Class A common stock outstanding - diluted (in shares) | 84,886,319 | 84,546,613 | 84,870,312 | 84,797,924 |
Earnings per share of Class A common stock - basic (in usd per share) | $ 0.46 | $ 0.32 | $ 1.22 | $ 0.78 |
Earnings per share of Class A common stock - diluted (in usd per share) | $ 0.46 | $ 0.32 | $ 1.21 | $ 0.78 |
Income taxes - Narrative (Detai
Income taxes - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 | Sep. 30, 2023 USD ($) agreement shares | Sep. 30, 2022 | Dec. 31, 2022 USD ($) | |
Tax Credit Carryforward [Line Items] | |||||
Effective income tax rate | 24.50% | 33.80% | 26% | 32.60% | |
Net deferred tax assets | $ 491,568 | $ 491,568 | $ 453,094 | ||
Total liability related to uncertain tax positions | 328 | $ 328 | 328 | ||
Number of tax receivable agreements | agreement | 2 | ||||
Percentage of remaining tax savings | 15% | ||||
Tax benefit obligation | 489,762 | $ 489,762 | $ 494,465 | ||
Decrease in deferred tax assets | 1,704 | 4,358 | |||
Deferred tax asset | $ 24,999 | $ 77,730 | |||
Class A Common Stock | |||||
Tax Credit Carryforward [Line Items] | |||||
Number of shares exchanged (in shares) | shares | 1,417,603 | 3,412,312 | |||
TRA Holders | |||||
Tax Credit Carryforward [Line Items] | |||||
Applicable tax savings (in percentage) | 85% | 85% | |||
Deferred tax liability | $ 14,762 | $ 17,077 |
Income taxes - Schedule of Proj
Income taxes - Schedule of Projected Future Payments Under Tax Benefit Arrangements (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Income Tax Disclosure [Abstract] | ||
Remainder of 2023 | $ 11,129 | |
2024 | 38,397 | |
2025 | 47,379 | |
2026 | 49,868 | |
2027 | 52,515 | |
Thereafter | 290,474 | |
Total | $ 489,762 | $ 494,465 |
Commitments and contingencies (
Commitments and contingencies (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Oct. 20, 2023 USD ($) store | Dec. 31, 2022 USD ($) | Sep. 30, 2023 USD ($) | |
Mexico Acquisition | |||
Loss Contingencies [Line Items] | |||
Estimated liability for legal settlement | $ 8,550 | ||
Increase in loss contingency reserve | $ 6,250 | ||
Loss contingency reserve | $ 14,500 | ||
Mexico Acquisition | Subsequent Event | |||
Loss Contingencies [Line Items] | |||
Settlement with franchisee | $ 31,619 | ||
Number of franchise stores acquired | store | 5 | ||
Pending Litigation | Civil Action Brought By Former Employee | |||
Loss Contingencies [Line Items] | |||
Loss contingency, paid liability | $ 3,414 |
Segments - Narrative (Details)
Segments - Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) segment | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Number of reportable segments | segment | 3 | ||||
Number of operating segments | segment | 0 | ||||
Revenue | $ 277,551 | $ 244,386 | $ 786,240 | $ 655,504 | |
Franchise revenue - interim CEO | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 98,165 | 80,746 | 289,691 | 243,373 | |
Franchise revenue - interim CEO | Placement Services | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 5,884 | 4,376 | 13,760 | 10,102 | |
Corporate-owned stores | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue | 113,245 | $ 101,330 | 332,885 | $ 278,940 | |
Corporate-owned stores | International corporate-owned stores | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-lived assets | $ 721 | $ 721 | $ 916 |
Segments - Financial Informatio
Segments - Financial Information for the Company's Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 277,551 | $ 244,386 | $ 786,240 | $ 655,504 |
Total Segment EBITDA | 109,734 | 99,266 | 311,813 | 264,776 |
Corporate and other | ||||
Segment Reporting Information [Line Items] | ||||
Total Segment EBITDA | (18,547) | (10,458) | (52,238) | (41,059) |
Franchise revenue - interim CEO | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 98,165 | 80,746 | 289,691 | 243,373 |
Franchise revenue - interim CEO | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total Segment EBITDA | 67,583 | 53,475 | 198,418 | 167,910 |
Franchise revenue - interim CEO | US | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 95,209 | 78,873 | 281,836 | 237,612 |
Franchise revenue - interim CEO | International | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,956 | 1,873 | 7,855 | 5,761 |
Corporate-owned stores | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 113,245 | 101,330 | 332,885 | 278,940 |
Corporate-owned stores | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total Segment EBITDA | 44,264 | 40,446 | 126,499 | 103,287 |
Corporate-owned stores | US | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 112,080 | 100,247 | 329,505 | 275,962 |
Corporate-owned stores | International | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,165 | 1,083 | 3,380 | 2,978 |
Equipment revenue - interim CEO | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 66,141 | 62,310 | 163,664 | 133,191 |
Equipment revenue - interim CEO | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total Segment EBITDA | 16,434 | 15,803 | 39,134 | 34,638 |
Equipment revenue - interim CEO | US | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 62,605 | 60,952 | 158,335 | 124,781 |
Equipment revenue - interim CEO | International | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 3,536 | $ 1,358 | $ 5,329 | $ 8,410 |
Segments - Reconciliation of To
Segments - Reconciliation of Total Segment EBITDA to Income Before Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting [Abstract] | ||||
Total Segment EBITDA | $ 109,734 | $ 99,266 | $ 311,813 | $ 264,776 |
Depreciation and amortization | 37,477 | 32,572 | 110,254 | 90,427 |
Other income | 148 | 4,762 | 631 | 9,000 |
Equity losses of unconsolidated entities, net of tax | (242) | (2) | (580) | (334) |
Income from operations | 72,351 | 61,934 | 201,508 | 165,683 |
Interest income | 4,245 | 1,561 | 12,339 | 2,244 |
Interest expense | (21,704) | (21,917) | (64,771) | (66,527) |
Income before income taxes | $ 55,040 | $ 46,340 | $ 149,707 | $ 110,400 |
Segments - Company's Assets by
Segments - Company's Assets by Reportable Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total consolidated assets | $ 2,944,847 | $ 2,854,589 |
Operating Segments | Franchise | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total consolidated assets | 177,045 | 161,355 |
Operating Segments | Corporate-owned stores | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total consolidated assets | 1,624,489 | 1,559,985 |
Operating Segments | Equipment | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total consolidated assets | 187,899 | 200,020 |
Unallocated | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total consolidated assets | $ 955,414 | $ 933,229 |
Segments - Company's Goodwill b
Segments - Company's Goodwill by Reportable Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Consolidated goodwill | $ 717,502 | $ 702,690 |
Franchise | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Consolidated goodwill | 16,938 | 16,938 |
Corporate-owned stores | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Consolidated goodwill | 607,898 | 593,086 |
Equipment | ||
Segment Reporting, Other Significant Reconciling Item [Line Items] | ||
Consolidated goodwill | $ 92,666 | $ 92,666 |
Corporate-owned and franchise_3
Corporate-owned and franchisee-owned stores - Schedule of Changes in Corporate-owned and Franchisee-owned Stores (Details) - store | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Number Of Stores [Roll Forward] | ||||
Stores operated at beginning of period | 2,472 | 2,324 | 2,410 | 2,254 |
New stores opened | 26 | 29 | 88 | 100 |
Stores acquired, debranded, sold or consolidated | 0 | 0 | 0 | (1) |
Stores operated at end of period | 2,498 | 2,353 | 2,498 | 2,353 |
Franchisee-owned stores: | ||||
Number Of Stores [Roll Forward] | ||||
Stores operated at beginning of period | 2,230 | 2,091 | 2,176 | 2,142 |
New stores opened | 24 | 25 | 82 | 89 |
Stores acquired from the Company | 0 | 6 | 0 | 6 |
Stores acquired, debranded, sold or consolidated | 0 | 0 | (4) | (115) |
Stores operated at end of period | 2,254 | 2,122 | 2,254 | 2,122 |
Corporate-owned stores: | ||||
Number Of Stores [Roll Forward] | ||||
Stores operated at beginning of period | 242 | 233 | 234 | 112 |
New stores opened | 2 | 4 | 6 | 11 |
Stores acquired from the Company | 0 | 0 | 4 | 114 |
Stores sold to franchisees | 0 | (6) | 0 | (6) |
Stores operated at end of period | 244 | 231 | 244 | 231 |