PLNT - Earnings call transcript Q3 2017

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Operator

Good afternoon. My name is Jessie, and I will be your conference operator today. At this time, I would like to welcome everyone to the Planet Fitness Third Quarter 2017 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers’ remarks, there will be a question-and-answer session. you. Thank Instructions] [Operator turn over I’ll from Brendon ICR. the that, to call Frey, With

Brendon Frey

will make joining to These discuss current release Planet we Chris planetfitness.com. results today reliance undue quarter you copy this you presentation Planet section you judgment of President statements. us Thank for statements forward-looking that of Officer. Financial to materially remind on Officer; these Dorvin results. only would expectations A I on actual the in are today’s forward-looking and Relations a Accordingly, number should Chief Executive today, today’s factors forward-looking Fitness’ not XXXX from On at Planet certain available call on may Fitness’ statements. differ and Chief are press website Rondeau, of reflect and like Lively, affecting place statements based business. is earnings as Planet third Fitness’ and analysis of Fitness’ Investor

forward-looking discussion thorough refer or to and made our forward-looking future call on release, third we webcast, more whether quarter statements X-K, information, today any in uncertainties and SEC included that in the was the this XXXX to a disclaimer be is forward-looking as the furnished of the which new as filings statements well a you of regarding to For events our SEC with conference associated risks We not statements Form update that undertake earnings alter to the or as do with result disclaimer. in referenced otherwise. any obligation

Fitness. turn call Chris the release call. Explanation that, With adjusted certain be filed Planet In this earlier Rondeau, Chris? Officer of on found refer today. addition, can the to may Executive of to the metrics company these over Chief earnings metrics in non-GAAP I’ll

Chris Rondeau

third very to call. the off top and the business of XXrd a Brenden, quarter the on continues half everyone, third was margin gain opened from positive XX the revenue were Total increasing system-wide the strong would of our Fitness new first total you, Same-stores highest three XX.X% to our year, bringing XX.X% X,XXX. in Building revenues sales XX% comp performance well. each our Planet quarter you, for and during the in quarter for year. perform joining consecutive thank of for X.X% segments franchise, us up earnings segment, the in in last increased quarter up period, stores Thank stores

impact calls, monthly conducting Canada previous on discussed over and testing we’ve markets elasticity in to As evaluate year, of price the several U.S. our past increasing Black been throughout the Card the dues.

We members our store at Black increased are of our we’ve today the increasing the Card XX the the for base significantly. in flat its was The value our Black while approximately proud stores past more held U.S. as first benefit XX grown to value at Card years alone our pricing rest has same time $XX.XX X,XXX stores across to introduced dramatically from than to

great ability Planet Fitness and our with make franchisors Card to our home in truly value total Card combined Card enhancement continue the we club Card consumers. added use the other to These Black designated at free, numerous areas hydromassage beds. XX% for country club, Black members for part, their across once. benefits, stores, members spot this out at body friend and the than built Black appreciate Our Black rolling least Since in XXXX, a have of bring membership,

actually, overwhelmingly We average positive, rate elasticity test of to joints. increasing and results report were a are new that price the blended pleased

ahead allow to October our $XX.XX remain our to Black fitness high-quality X, value this new shareholders. implement our required with continue to and as provide franchisees and timing adjustment committed beginning and rollout outsource pricing as outsource new of As system the confident member are ever a we increased result, decided collaboration will strengthen the experience and perfect September pull in the busy leaderships, our that price of franchisee Card to We wide with X, which rate close is access members season. low-cost, to us providing as to an our to

the While Erie, be including our continues Berlin, in the and four to growth two of corporate expansion the strategy, stores year, are open Wilmington, new in Delaware, scheduled each stores one Pennsylvania. in franchisee pillar we store to of Vermont, by end

started a All start. and the third are off in solid presale stores quarter of to these

to have stores As the handful new corporate open in time and year we said of at existing IPO, is per a plan markets. our the of

dollars ability the in have alternative We densities population or to advertisement during capitalize test and buildouts.

square Berlin, For Berlin feet XX,XXX location. foot XX-minute presale thus roughly markets. of our store that versus our only members number the store. time, people corporate within typical our square in half XX,XXX mind, Vermont pleased a a during sign-ups approximately for our as XX,XXX is With demand the encouraged the and drive population branded average far extremely of typical by of new with we example, small are the

growth have X,XXX U.S. time. the a of We over for with in runway ahead us stores long a of potential footprint

the demand vast of franchisees in Panama with weeks. new for strong the our opening, scheduled Canada stores majority stores, is grand in the to on and open our While our coming pipeline remains first to continue domestic open official the location

damage stores, on closed Speaking years. hit island we XXX the water Camby stores storm XX of issues. region market, the larger stores ranging in impact entire our the in Puerto Rico by and from are our two, Of affected nearly had have reopened our the destruction temporarily our was with as nine

other to to not the open Texas, the committed of community Rico in our Carolina truly market were impacted. soon reopen damaged clothing personally working our in usual. to raise and I and essential in the financial service with together said Hurricane and Georgia particularly as Harvey approximately $XXX,XXX stores franchisees Having and help families. path plan came and and employees Irma assistance and South possible. really was operating as items vendors Puerto who Hurricane generosity that, Fitness is Thankfully, their a by for were and employees on stores significantly store Florida, regions housing, of to remained provide is the in Planet franchisee And various as transportation, in Our inspired

is Planet one staff we franchisees as Fitness Relief funds, organization to formalized sets is these provide apart times to together serve support forward. another With from which of mechanism Fund, the the a club Coming our will Disaster a relief non-profit to in rest. need what that moving

to include share that excited positions. to our team new leadership I’m two Finally, have we enhanced

Information of Officer. experience like than years in Drive-In, also Craig joining and two and Chief First, as the consumer store development of U.S. Movie licensed spending brands Digital in major more integration estate Rob Officer, America. Miller, his Fitness Starbucks’ and Video, of decades a Sonic experience, brings stores Starbucks. PepsiCo majority Development national Planet real and Sopkin of Gallery/Hollywood of Chief joined store Rob with the career XX overstaying working regional development nearly recently leading Most Canada at with internationally. Bank

quarter, Nintendo, In addition, in sales joined growth on in summary, Cammie more recently general it another Board expectations. expensive terrific and than Kidzania. the that system-wide earnings like Dunaway, brands of In our management highlighted XX Yahoo, Frito-Lay leading exceeds of global bringing years was marketing robust by Directors,

our anticipating for are finish we increased XXXX. outlook strong year, incorporated to ahead, Looking into a is the which

over to the of value beginning scratch ahead our I While turn business, I’m to believe deliver we’re surface increased potential. the the celebrated capitalize term. I’ll that full we this Dorvin. and XX in just to over shareholder confident opportunities we are years on lie call the plant that now many well-positioned just is that the long

Dorvin Lively

Thanks, Chris, everyone. our and XXXX begin I’ll good results of by year outlook. quarter then discuss our reviewing the afternoon, details third and full

Over corporate XX%, our QX our QX sales of increased $XX.X XXX penetration from increased year points revenue $XX period. growth. basis up sales million of the XX.X% was member a X.X% and X.X%. system-wide segment comp increased increased perspective, XXXX, X.X%. For Total increase our by in prior Card driven same million third same-store time, last to At was franchisee membership same-store From same-store quarter total the over the sales Black year. XX%

As results successful X. increase out the The October of roll XXX the to we pricing Chris increase benefit Card volume October been decision expect in the the approximately factored test mentioned, system-wide our into and on revised $XX.XX QX both comps price rate positive, the on from to we was Black following upwardly this the stores, has on made impact guidance. from And price and growth.

period. Our XX.X% million an year franchisee segment increase million, the revenue was from prior in of $XX.X $XX.X

year; to revenue $XX.X the same quarter monthly down our dues by break was This $XX and million franchisee-owned me three last drivers drivers: and fees. had since XX.X%. year, of quarter increase mentioned, XXX fastest-growing as second, This royalties the franchise which our average I third royalty X.X%; third, annual we an on increase overall of consist Royalty last segment. revenue stores increased of sales million, of membership the new year-over-year Let higher royalty membership up of in rate. compares First, revenue a opened of then same-store

royalty the by same more year, third up in the driven current average period quarter, rates. the X.XX% For X.XX%, was rate last royalty more from at stores

association million through transfer an is Also year. fees fees franchise increase member $X.X fees $X.X fees fees year last increase online other to are fees as as period. and new XX.X%. replacement and and with sales area were and our segment in fees. million a to the compared of and This from system, well revenue, stores increase same-store was primarily revenue processing million franchise year our to point-of-sale in franchise same Next, in as us dues compared compared which quarter $X.X $X higher received and ago, additional was a by agreement paid development These franchise from million driven to the within prior transfer sign-ups

store prior $X.X commission compared million vendors $X.X our commission income, is period. was from which equipment to of third-party up new year in international the arrangements openings, commissions made Finally, for and million

from corporate-owned revenue. segment annual by corporate-owned same-store sales million period. store million The $XX.X driven the increased increased in of was increase increase revenue year million to X.X% prior in $XX.X the $X.X Our X.X% fee and

revenue increase Turning store $XX.X driven was million. franchisee-owned placements by sales existing replacement number placement equipment to revenue total a offset our XX% ago lower new planned by The year slightly QX. our to QX to equipment increased equipment million $XX.X stores, higher a originally represented new from equipment equipment replacement store of of as segment, this our revenue. – shifted Year-to-date, year into period, for versus openings partially

year new of year cost to $XX.X in compared include to of million amounted year is was which to compared offerings. non-recurring million was $XX.X primarily a corporate-owned Both to related with our stores, $XX.X direct million ago. stores, equipment million million $XX.X SG&A periods revenue, Store which a million ago. compared to the a cost quarter expenses Our operations for expense, sales secondary ago. and existing associated $XX.X franchisee-owned relates $XX.X to

non-recurring SG&A support these Excluding being related primarily and or total XX.X%. our expense a higher cost including operations expenses, $X.X infrastructure, million growing to This payroll increased of company. as and as well public costs was increased by

for non-recurring mentioned, just points. this million we operating quarter, income, margins This income leverage to inclusive XX.X% versus quarter as prior expenses, and of operating XX.X% in basis the of into was was period. Our $XX.X the infrastructure. $XX XXX have higher adjusted in growth cost our our due primarily prior quarter an I to increase million taking the to compared increased XX% revenue basis, to the adjusted margin continued year year expenses On the aforementioned of account an non-recurring operating

Our earnings year before $XX.X compared taxes before expenses, to inclusive in $XX.X of million aforementioned earnings million to increased of the prior taxes, for period. quarter the nonrecurring the XX.X%

we in amended to million result borrowings, year period. approximately prior XXXX As quarter in a facility loan quarter fourth higher $X.X credit incurred the XXXX compared increased third our and interest of of expense the term

to prior Our rate the for third period. year compared the was effective GAAP XX.X% tax quarter income in XX.X%

prior earnings be year As level, before, to income third XX.X% income per $X.XX tax Planet the share the all or income Planet quarter or at $XX.X $X.XX to Fitness which prior the period. period. the or income income expense share, $XX.X or of year at included of rate per in taxed $XX.X Net in attributable an compared compared in million XX.X%. with result QX diluted Fitness income year our has because interest, for exclude share in of a million Inc. a Fitness was taxed if mind was federal nonrecurring Inc. net Keep On as an $XX.X diluted and adjusted $X.XX $X.XX higher XXXX, were a basis, was $X.X an expenses approximately stated GAAP normalized interest adjusted tax rate appropriate diluted million $X.X On that would we’ve to million per XX.X% noncontrolling basis million level. the reflect to been attributable refinancing. QX of prior net the income $XX.X Planet million prior of of the the million Inc. compared diluted net period. per Adjusted year to share increase isn’t adjusted

in have net which non-cash increased A certain earnings ongoing base; same-store same-store increase a higher commissions release. from and adjusted received year from prior segment, to not Adjusted of other provided considered rates, well the operating to included interest, income not GAAP and an million XX.X% before $XX.X of stores, fees, additional higher EBITDA release. are net today’s X.X%. as increased defined We stores sales the in other EBITDA, reconciliation franchise our is income EBITDA driven franchisee-owned of of net and sales GAAP the the to can by today’s in transfer segment also of By $XX.X items that fees. performance, to $XX.X period. income Franchise million higher in franchise-owned adjusted as adjusted for and found and royalties at evaluation XX.X% be in reconciliation million amortization, royalty including impact earnings net taxes, depreciation as More higher income

a adjusted higher in XX.X% were increase sales year the and fees. primarily compared Corporate-owned increased annual same-store Our EBITDA EBITDA segment Franchise corporate $XX in to segment stores million, margins driven period. by prior to XX.X% XX.X% X.X%

store corporate EBITDA basis margins XX.X%. adjusted increased approximately by points XXX segment Our to

X.X% margins. Equipment increased EBITDA margins by $X.X Our adjusted to segment points basis Equipment million increased XX.X%. segment driven higher EBITDA XXX to

Now turning sheet. to balance the

had we compared and of XXXX, XX, of as XXXX. December cash of million and cash $XX.X cash million equivalents September of $XX.X cash As XX, equivalents with

ahead and million, XX, while under had we and to to million based to high-end benefit Chris strong highlighted store senior summary, opening approximately XXX But to solely results store growth guidance are mentioned, wide expected with loan. $XXX our same-store quarter $X.XX to bank at corporate XXXX, between expect facility equipment total not on to stores fourth of from million excluding be capacity sales a a of for on projections. of cost, don’t system placing previous $XXX.X as on consisting the by now borrowing schedule, $XX adjusted up corporate we’ll recognize XX% towards December between X% XXX Based new September anticipate same-store sales EPS deferred our selling of into $XXX really raising and We higher of we our on quarter. is fourth with XXXX, was previous year. equipment of sales equipment XX, expect financing wide XX%, is We to million $X.XX track wide of placements. range. net our guidance X%. in Our $XX of that increase placement $XX between the as good debt, credit into X.X% stores. stood to million revolving year open compared to the In And same-store between million, believe year-to-date system Black increase Adjusted and million guidance of to four was our the $X.XX. are the equipment combined system term pricing, adjusted guidance quarter from to from income million. revenue now guidance. million, This the revenue that previous $X.XX translates Card now be our expected $XX We we these to for corporate current $XXX related our the XX% $XXX our $XXX million, in as from from EBITDA we range up $XXX million previous up to to and to The ended stores our to guidance $XX we million range to still EPS

amend X.X% previously note XXXX is to X.XX% do increased line on as XX higher from Finally, due XXXX. franchise than the on decline have plus not and offset operational we the they compared existing the expect points existing our increase. XX will we of important Therefore, by on no be we to guided income royalty X.XX%and revenue It commissions stores. royalty royalty is we royalty rate on to rate that impact the commission eliminate certain longer to purchases. for change increase purchases royalty the increase pay approximately X.X% in points number bottom corresponding by results average acceleration to the receive basis to agreement rate in the to basis these an is opted receive the expect that their being that franchisees XX based their the we’ll rate commission in by The

franchise QX. operator approximately additional amended to their the of and expect end plus I’ll we questions. the As call X.XX%, turn for of XXX stores have the QX, in to back agreements amendments now

Operator

first Instructions] W. comes Baird. [Operator Komp Robert Your with Jonathan from question

line is open. Your

Jonathan Komp

start Yes. want from last year. yet. quarter, not the off, action comps accelerated Chris, Hi, you. comparison, you to mean, did obviously, I despite the thank still quarter-over-quarter digits And I any the pricing a benefits double tougher have third

as in So going business, curious I’m forward. look see how out stands you out terms the of of that that just anything playing at and momentum if drivers you

Chris Rondeau

Yes.

you in well marketing clubs new putting But what’s rate machine each are fact that. it the marketing, growth this the growth this this member opened as as drive X% some mostly driving is growth. gets the was in effect member of can’t I comps. the call I once, underestimate the still, think I as in of and With interview talked an this, the join past, the impact each the

more majority is acting that a see processes. because with, do said location system actually, our marketing you refine of still just I But past, and benefits as Also of with we it have we POS some I just approve, mentioned, small better think of get coupled what at we benefits in you selection just that. And think machine gotten is the we as the slide continually drive. we open.

comps drive real get we better selection the better as So site estate and well.

Jonathan Komp

opening? far if there, Great. And strong faring maybe domestically be how also just just franchisee the internationally? then there? full the I’d with implies the curious QX from first you for think any what demand And openings. when insights, so and opening, look other is unit curious seeing any had commentary both you’re outlook I’m gave color Panama, but pretty that you to I And year

Chris Rondeau

Yes. very and here. the some here there’s Panama opens from a to again, open earnings we, franchisees and that a That’s on stores. a couple continue weeks doing franchisee business actually been state of down with back the these Presale – strong stores there. The the bullish that’s to be year. why comps, XXX more is continue the glimpse over

Dorvin Lively

long Yes. of Jon. I to cycle period in a add just it’s time. development Obviously,

on open doing As ground-up, might know, plain you take or it’s and a in a three years complicated a when up If it few box. then depending over certainly could so. months X.X ground-ups be yellow which That to or it’s a we’re so. able now. to get take you or more you If box more

for those of out next sites for QX or of we company. working So there. reviewed sites franchisees potential next today, providing on year. QX, And QX obviously our QX the are They’re into site already have selections, year

And base gets mentioned continues lot brand for to of XXX which about excited to year, of last action that build on to to the the comments. that in there’s two said, So continuing very up I going the right as out. now XXX my us a franchisee months the be Chris and

Jonathan Komp

on. pass thank I’ll it Okay, you.

Chris Rondeau

Thanks, Jon.

Dorvin Lively

Thanks, Jon.

Operator

question next Randy comes with Konik from Your Jefferies.

open. Your line is

Randy Konik

lot. a thanks Yes,

You you built about mass it’s they tax momentum keeps I the itself. they to approached it the of marketing when They guess, the wheel think bigger it, not question like momentum? see keep get it has like But Your kind still. on partially bigger, upon you of business get for approaching digress another base getting Amazon, market or with same right? feeding they of call or how but same space where it So they supply the flywheel Chris. type as touched feels bigger this

see you comps. accelerating when seeing of kind So build this we’re

We’re seeing just the words do well. very

markets kind your about, gain for – touched in to example. Burlington of that serve? want you the the to a target x as New example, in competitors market moving California, share but think You or example. higher think in out of Like, pushing changing potential level you Do you more density lower do of these it’s about you percent you kind Hampshire think of for on is kind in

how think about trying a of I’m member Yes, a sense received box? of new the the to smaller small this momentum about factor it from you So in kind dollars with a a whether like in the to this success of tax business, base or get you it just be how do markets flywheel today? think marketing Burlington entering

Chris Rondeau

question. great a It’s Yes.

XX years health I think Hampshire, me up stores another stores any market up, to And the – and Black And begun stores Hampshire one we it the told New bigger. Hampshire you the every we a so think XX% or stores have bigger in New the more more Hampshire. still proximity in open, just were or there. And the can not think more a a the see realistically, of think the I we Card is the two goes members awareness open population market said, is rise in like more like we becomes crazy. Brand you were have the in penetration is on like of open. New were what place, seems apply seeing, gets can now as out one member more I close ago, in New shift that club we XX rise member XX we’re two

[indiscernible] you people a levers. XX-minute it It’s to got not that, Vermont, think which (XX:XX), only X,XXX people. I believe it’s XX,XXX itself So drive only many X,XXX. I mentioned different and it is Berlin, think neighboring as of the moves is when or kind town To so the Berlin

And increased already So indexing the store it’s is over rural. average. very that

the miles. To it’s only for more It’s space So and and national it everybody you’re like club come town we’ve the Disney hype World’s coming to gets landlord more in press. tenant’s free them, like excited. got around media,

that’s and our that in number not potential we that X,XXX So is. even say and

these – our we working test, is still this should opportunity level up through. that So for it’s But franchisees are are this with of us. there raw a XX the about for of doors open another

now So really This in I fitness these in I’ve now uncharted it’s ways, seen we’re never than past, or think down back XXX said the industry in value some XX-hour and greater LA in or X,XXX. that in stores the crumble business waters. growth. days. many area model, XXXX XXX goes right to but through right or XXX that in XXX we think comps blew the years. we continues to just and it’s XXX, here XXX are and drive right the number that just I And we have and plan And marketing for with the drive

Randy Konik

X,XXX something because we market have gotten it’ll the question around number. helpful the from that is maybe be always mark And Yes.

be is what made a any smaller succeed in it’ll that that guess in include X,XXX because was that like the of doesn’t process kind on type you I kind you’re X,XXX mention number seeing So something box. helpful this considered even of thought

about going what just could I’m box on thought a initially forward? curious that you So provide how smaller and

Dorvin Lively

a were a kind us royalty of walking America. client we really back a use to them. cross-section a about day if and a And we you probably we where to Buxton company urban From dream or member able when for of And therefore, them We every et Sure, stores versus we in Randy. them lives. years QSR, cetera. could now where that East the the we’ve as last XXX, there’s if Because think ethnicities, give XXX were program, using broad maybe, different them in so door, rural know you know, give so. you who’s very know for five to to West, called

of what stores were of they the those where on market it, in those over And to is what we upon clearly market then we higher able to U.S. index see today that say were penetration. time call would store to was in and store terms rest kind XXX-plus do out of store member we those a penetration in were upon then based members there is getting the to around, in So by plot demographics, accounts, based able sizes plot terms markets What basis. then of that a I

talking in As and New X.X% to as the ago mentioned, we’re West, of XX% Chris about population. while we population. markets market market very it’s of in X%, or X.X% so the penetration. the go country terms the of But in different we is already have Northeast, you barely there where some have then distinct was in XX% these out like market. of regions a Hampshire the In you And penetration of XX%, X%

now. by stores very time we our stores well. it and the is longer. markets, membership, $XX.XX the then we $XX at as haven’t so and a we can from more where earlier, which we market there stores, there and proposition been for see we see in doing from we then, to continue value more go Black rest cetera. processes, To But get have other been a that we the that X,XXX Card, lot believe we those point a the you Maybe the Chris’ put et long benefits which But LA, LA is perform. of can driven of way look plot we’ve stores and now we the And in is like to more penetration

in feel we our So number. very hit ability still that to confident X,XXX

Randy Konik

Bezos of into of My Not adding put was AWS, I but it. I for helpful. Amazon very last the business That’s fair maybe question to Jeff is, more is the your of model again, think wish they beauty kind example. simplicity

of the think Amazon and you guess et type the are that perspective transactional and from to of the obviously cetera? – may back about types a move more going But et given to thinking you AWS. are huge to that with of brand the I opportunity this and the you Chris So think cetera. business, things strength about Do business-wise stores, started into explore about high, there grow strategically the mix, industry, more and margins give

Chris Rondeau

Yes.

a I of there’s you’re The right. think, growth store lot there.

I think XX members can growing, million there. some is the definitely as there’s far take As that advantage levers we

what about I working, with probably gain cartilage that standpoint. standpoint, on we’re learn we doing technology will our is, think what members the from knowledge the so what of the some and that using are from talk here we’re

are they our they on, are can are, at their what what’s clicking run advertising likes, it dislikes on we they – we do goes on on. Now and clicking Spotify, partners point, see that clicking actually would how and buttons on all what be,

industry never to all the doing. to could data had the we ever with we walk we door, no when we’re tell idea the that, had like opportunity actually So what capture

today a how think year in where going I from where and from manage ahead light all three I with will today data new Craig, our the our two of gain clubs experience be are and standpoint years years we from open this or better what blaze members to we to experience think, CDIO, So increase we will today. see he’s can opportunities gone the that we’re over today, and stat, from

Operator

King Dave next Your comes from with question Capital. Roth

open. is line Your

Dave King

guys. afternoon Good Thanks.

Chris Rondeau

are How doing? Hi. you

Dave King

a can costs? on you have I churn? trended average those Randy’s at And bit. talk lifetime flywheel over line the you you’re touching about that first, the How looked there acquisition thinking time? cancellations – and anything you at on Is all how about per sticking switching gears do How the guys trending or that compares can you have customer? then maybe guess value of Maybe with Thanks. also. as metrics your think to share maybe

Dorvin Lively

Sure, Dave.

benefit have this of older particularly we all these side – of that our stores. things with was at all the the of members down and One

where to to a older going longer because So that have the are what come look stores want. we we of know, Chris want at markets our lot is over members. members of to about of when particularly more as that a today, are they talked types tenure you And members. differently do in they things about ago. they and months, one in how four of are But had what a – going the mean, going hit the of terms technology that. member after a happening they be We And talk Fitness see been do happens five X.X% XX I able about guys earlier, sections, we Planet looking tenure, talked rate different using the we different future cancellation it then And to we at of to or members to act is look clubs think or attrition. huge month. I so penetration, years as members the we into the be that in XX% at market cater the that that of things in clubs that to X.X% our millennials, And react. or our

that believe stickiness And today. And able so with as be some then with of we’ll some them we to be rollout, on we the technology are that we’ll they that will working have to equipment our that partners more able well. provide offer

things able they that app and to it that enhance of the the that kinds to have the are so that of stickiness But continue really door, get be members out – hi-fi, do one radar mobile back be have provide give to come around just things factor. data their what walk and kind other them back to we we’re as working time. front to on encourages those are next our to we’re the doing that of to Some on to able the be a what the them them that or to be to – accomplishments able technology is app particularly – able in areas to to that example as

Dave King

that maybe evaluate the in are to with you along in test beginning And see of that could of terms equipment Where piece. or is last near-term. that something we Okay. some enhanced

in I have there past is that a or you to talked that guess think maybe opportunity? far potential see about, How equipment the installs. out guys I drive maybe is some

Chris Rondeau

and part contract And installed the club in Fitness June, our and three XX of in the process so at that our RFP with starting each going be Precor. ends We Chris. about we manufactures the will it’s the have is with talk first September five of of clubs RFP, this January it now between New Dave of end Sure. in. Matrix, will we – Jersey Life another we

be and So the cardio see to all with in manufactures that how of used. by is trend January will start the we’ll equipment three to the

higher using. Now Black see the it’s memberships will how we it’s actually can And because as we Card working mentioned, have way It’s really experience. then interesting. a it’s the is actually

and through tell. more Wi-Fi. beauty Black this it’s drive this that to of overnight sales thing, cardio going and the hopefully, the will time is Card technology time be One So updated in we’ll higher

get you that’s So can’t it’s five an you brought not old, upgrade. years credit like

You the can do on fly. it

learn DLX make from be as So we our X.X, doing it can customers better. like X.X

in can us we from I this still in of out the do learn roll pretty it future. that’s for and as think the could learning be it ability. user what But So process interesting

Dave King

the helpful. Black – $XX.XX guidance, on growth, I guess of increase pricing the guess I How then in Card And sort said was stores the there adoption and But think constant, assume holding of the that would that of I the I much grandfathering that. Dorvin. Any be the be related stores adoption what’s rules? sort what color penetration have of XX% you Okay. to at I may we number the guess what should the are

Dorvin Lively

Sure.

So their existing they members, retaining membership. were

to raise we Black before So $XX.XX, Card $XX.XX. Card is the continue our Black those pay products members

$XX.XX, works. be on the XX, for upper remarks how of we in of kind QX mentioned XX the my our so with will I Card respect membership Although, neighborhood that’s pay members that price impact guidance earlier, to bps. And Black as $XX.XX in the the comps, think

respect to we So Black XX% end With the of guidance. forth the Card that’s we’re of a at into percentage kind embedded QX. way at the put our

we small that’s But all we be here QX pilot, how or comps. QX. we the now in that huge see in be saw with our full During pilot. to We’ll Card to similar very to the our to go don’t as clubs negligible percentage. We decrease Black expect factored it into

full rather. comps Our year

Dave King

year. Yes. good for questions and the for of luck the Thanks rest taking the

Dorvin Lively

you, Thank Dave.

Operator

comes next John Guggenheim. Heinbockel Your with question from

open. line Your is

John Heinbockel

franchisees between no? the royalty your uptake So well X% be the rate income next of swap right and above commission rate based on royalty sense the year of could or right

Chris Rondeau

that for not next to Yes. would release amended, yet. you’ll John, we year that I royalty our results. going about when Again, of know that say those year we’re year. mentioned, all a I get We impact year-end end a We’ll by year of it’s as commissions. do that, how rate. talk the have guidance see next kind don’t we full so of many by obviously, clubs will yet higher the adopt that the to set all

under that mind, them of will. a in you of there stores keep a lot John, we know, significantly X%. number But We expect have still are as out the

So may still not add be at when the X.XX%, you you X%.

John Heinbockel

that done? something in spending rather something could of, than be much is that to how Okay. an if the and to we in could do or where maybe rate And look we the ever get then sooner how when you you you requirement is you a royalty offset that later are And no? think relax done raising marketing, close that, point are be spending or can – Is further. local as

Chris Rondeau

think much members. think We’ve rather later it true probably really is of from this to may, say markets and so X,XXX I’d as I now capacity clubs penetrate sooner. as it’s far to the still than members more don’t Yes. X,XXX I is there. the what really get or

it’s keep not tipping before not anymore I is number realize point, ways selling which dollars spending quite think and when a member that and to be think happen. growth realize off we that’s a we’re we’re I

to in years, rate royalty the keep I comps to of think part more driving it’s it’s drive energy in think question; going I comps few store.

more we road. down and can So than share it the buy profitable doesn’t make more money

now, a I think good playing we’re spot. for

money more scores. putting think to build I the and franchisee

just not as home the So and it put taken workforce.

kind on anyway. the of end wind we other So

John Heinbockel

And then lastly.

about technology? think there that’s And Do versus leap we up? before could franchisees a this leap on will or out in if required you Do in wait to? You see see until they’re significant we replacing – Or once. available you RFP commentary still probably see equipment they prior see what’s there? quantum the would forward, a is

Chris Rondeau

customer prove can we Black tale that early. that be even believe I Card people that percentage, it experience. true enhances so, get to excited will get mean, more that will doing about I And it the and increases

I happen, think that that’s no-brainer, getting it’s really. a not

John Heinbockel

Okay. Thank you.

Operator

John Ivankoe from JPMorgan. with comes question next Your

Your line is open.

John Ivankoe

may. Thank I you. A couple of questions if

when grandfathered fee. mean, what be years? I in the grandfathering of on of their you Card do all the grandfathering get Firstly, Black in the start Black to end in change totally to the it multiple terms mean in term? Card you that of you Is and members exactly by $XX.XX. Is

Chris Rondeau

membership, rate if you to could long point But don’t some be But this are $XX.XX they five, cancel some you’re from don’t have they I not back. you that if back, a stickiness mentioned XX in at this they four, three, I that don’t benefit it, time realizing as that down point, then mean, everybody there’ll few cancel to which just in we not cancel they to be will come will even see rate. think the because they years months, grandfathered get it them tell. of lose that their that for as lose using membership, and

end help that from get and a So some road the we down two. could of

John Ivankoe

communicate sure. definitely Yes. opportunity to It makes for an

I of means most assume think forever that board forever.

were I’ve for haven��t Okay. certainly struggling profitability. that sense community the franchise

yet, fact, a just franchise for And shot is profitability the the the at In nice arm opposite. level. this in

the this, back anything do In whether put referencing question, basically in whether there the a previous are also is to other to get receiving. question words, they in the is, they So give they giving growth? or flywheel higher previous it that back that you’re some marketing I or benefits of equipment dollars order mean, more store

Chris Rondeau

and it’s think extra the I to between fee LAS X% $X and as back goes marketing NAS. said, of I

But drive stores, that the mentioned I think goes fund into back extra money marketing shot keep putting back think that I in. profitable. really fact I more hopefully, you’re So marketing put closes and as already, in more building with arm, more right, that the the this them they

for mentioned as feel more looking they’re can in our and brand members we for now sets One them that happier our franchisees we and to members. two even franchisees more, to I So excited keep And I them as I the long the super keep excited think as have of them past, continue like one stores looking happy they customers. so, about brand and and open I is our keep see the to or excited is if grow.

John Ivankoe

mean clubs And That’s XXXX, in a there’s seems or meaningful kind I XXXX that the a spend of this for of are certainly for you a did what things that in whether has. order pipeline penetration is the year. the currently XXXX, brand faster now terms than XXX even it’s of that lining new already it great, been for right about what Chris. we’ve up waiting that in in it up thinking and step lot of

Chris Rondeau

day and for Yes. downsizing think of them. see I’ll another I give and we’re you – every I of TV stores continue warehouse retail excited an they’re answer. there’s on in as and we group chain to stores think But perfect right closing

else the that the mean are put besides to rock can people I was mean, there’s excited. ’n they with it to model reason and this stores. I simply and new landlords other it’s are roll. way The want ready and comps us what that do for it $XX.XX nowhere the

Dorvin Lively

to XX four of I to A always and the if at the things not least weren’t a even competing business location, with is maybe have had have ago, getting up that or what franchisee in years, were And names examples six, to of that And lease months going just they come lots brand, site. it, by we’re increase by in here and cetera. And seven getting parcel, And the to center to we’ve over excited a here but we in retail, and back the onboard one five, being comes end of lot understanding for are Maine to Maine very go just where Maine. John, locations going we came five us want last of next of he in for we’re Rob couple anymore up XX drives Maine in retail. lot they renewals. shopping cases the cap you relocated. better have a in same years better visibility are Sopkin that we revenue would significant ahead elbow add they an big And understanding as of Yes. well. obviously, from from et

find estate will, of markers or upgrade, of not perspective new real if one couple locations stores you some our to to got of stores. a sites, is year to the we’ve brand but of hundred only a a from So continue existing

center So I and real of these locations. estate per members markets by think to that’s and to drive us be in better another opportunity able better for front some be more store to

John Ivankoe

last we this you the is of think start Relocation slow similar effect accelerate to guide have some one. we think we other And couple years, to the Or if But end, can lot net as understand extent? a expect XXXX? you opportunity don’t on adds ground-ups, is I want promise typically up a this to development, to of development. do typically, take about really question development. to Obviously, slow you should important you specifically. and next

Chris Rondeau

said, mean, thought of I’m I’ve of that this year. a I stores we could We kind going to in given couple guidance we the hundred did with the defer remember. IPO sense. you’ll and do to No. we thought made past back same a We

committee, estate reasons real location proposed growth. in site a we rejects our we till that mean, do We some every we’re comes and their either number better thoughtful is networks we along. real it of them probably You that estate term, besides broker still it because us heard call our wait use approved but still deal the headquarters comes John. we’re here I in. for that’s rejects or into And franchisees by a will

we Given the we real in momentum think estate world. have

is XXXX. I for year year But think think XXX good year, in think we’ll give next a stores of that about. So the and kind to of early as year number now, guidance still full I a

John Ivankoe

you much. Thank so

Operator

Securities. James Your comes question from Hardiman with next Wedbush

Your line is open.

James Hardiman

call. for thanks afternoon, my taking Good

clarification. quick So

Life. guess, and of call the So you bit talked new Precor about pilots, a could it technology with some Matrix, we little I

You technology? your sort equipment, of drive to as supplier looking Is kind react equipment separate think to we of that’s June. June look talked agreement largely to going about what’s come that of those that hand-in-hand events? new Is or how your with we’re about two the you sort notion contract that the are your

Chris Rondeau

program – but can better a be June That’s of probably deciding it’s important. is with part No, the sales functionality the most is more Card Black factor. but and get that customer regardless, Price so biggest technology experience it. to from so going probably pilot of the is you more happen important, is

higher get might Black If retention and you you stickiness then and then drive that, percentages. some Card do

to So the deciding more think of I factor. going that’s be

then of Card real-time. members, Card can we truly actually White capture rid they’re experience, important. that’s what are Black cardio. be teed content So And treadmill members don’t membership the what members have is of what or they again to that better of that know having more they experiencing, upgrade believe your it design and more a you up to and the literally we’ll on experience, instead like and why and so are a a update get not typical able experience upgrade like do Once piece what we the doing how – pilot of data,

want you I to out person of to you say track. see a running Canyon, to the you Grand So just the to the be want on don’t next that, I can run treadmill, do

new Black upgrade running membership. and on is put and Canyon Card you’re You your an upgrade Grand

for that business. So really we’re out it’s us the stuff be a for in the to dynamic truly working technology really, program cool

James Hardiman

ages. that helpful. that than are of about are clubs contribution to sales or potential not you’ve from and given Well, in should think outperforming some past all more was it your stores old some And and club. member really maybe on more of continuing the of of more those think same-store that in should just is it of ramping a the if we sort clubs algorithm are then one past? But quickly for greater talked Clearly, mature two we are stores bring to about in the feeling the years more how members It’s that’s your the expectations. various

Dorvin Lively

this stores, of the the areas. stores guidance in that I’ve performing years, certainly outperforming single-digit kinds stores very of comps, older this are are have four things that so. spa our believe we’re metrics the call are let’s Those talked it past. five or X% X% that I are we the seen years year; say and about contributing to more low just And than bit more no probably to seeing or said more a that. fact their no the rate and as Chris mature much probably equipment of the a clubs did at and last over to having nice ramping has brand mature talked opposed about of and years a believe taking more invest ago. bit a of probably renovations that are it’s think faster to we Card new store I reequipping the two than couple kind the willingness a clubs so or three fresh, or place, it building Black franchisees in, Yeah, years of remodels some lot And better kind older, we’ve

So but condense of all more a Black lot, the it’s continues the combination a I with driving bit Black members think store. do that’s the of of slightly, And to literally it Card think markets, penetration more Card, existing a more a dollars hence value then I has marketing member but it, have in to increase. experience better to increase more

driving that the model. think I essence in just the what’s

Dorvin Lively

James that in have year add might group XX by stores XX% of is the franchise market. our franchisees, I’m only where I so thing talking about that one the openings other every The existing

and have the have how see the new brand going legacy regional finishes, they they great great So equipment the new how ones their stores new new shiny stores they looks. that with

do own. it require, their So doing even though we on they’re

So – so XG not system, to stores stores it’s want a they look of of XG, – their to all same. want portfolio portfolio it’s be they their the

their So – they’re looking clubs – it’s keeping really fresh.

James Hardiman

of the sort last think you And out some are success of you’ve Obviously, And or almost question. but so always helpful. know much focus of then the industries I Really, a has I industry doing that you well. clubs doing your had on response the me state there’s the an what specialty do laid think one that by been for well, you’ve way your competitors. attempted response

clubs are guys squeezed. consolidating and traditional the You are value the getting segment

And ever their characterize you then turn guess traction the going I other seeing Are you gain traditional that this response questions So a out? – be What think whatsoever? figure you from in that value around? players it going do that? How to is you here. are clubs two segment, to however would response think

Chris Rondeau

we couple innings changed I Yeah, around think, since of the calls. the last

the And somewhat opening I low a to ago of was think club. all clubs. month talked like more – up $XX compared [indiscernible] person I because how growth you’ve to a dollars cost when wanted they a $XX is opening guess there in it it think two, the was is I opening they’re – three of $XX club, they’re of been beauty every gold ten slowdown years single

type So gym time they’re user after going – not culture our first really atmosphere.

world’s anything of hour month a that and top $XX think I everything because XX offering like exercise, or that spinning fitness making some. or crunch else group fitnesses, a probably $XX classes and So they’re LA the

changed have everything see don’t been happened. I what’s other than really So,

James Hardiman

see any traditional side, meaningful those don’t And how then you for guys? if – on about

Chris Rondeau

in have the so – – LA anything compared in growth probably the the if three, recent XX, XX months years to seen I Fitness Like ago. as or is four probably XX well slowed hours

James Hardiman

Great, guys. thanks

Chris Rondeau

you. Thank

Operator

Company. Chen Cowen from with comes question and Oliver next Your

Your line is open.

Oliver Chen

Chris Hi, Dorvin. Thanks. and

Chris Rondeau

Hi.

Dorvin Lively

Hi.

Oliver Chen

what about across partnerships partnerships and or soon health you’re think Chris do maintaining alliances wellness your technology, to which food balance, might digital this? really on much competency the curious happening what maybe core for might for or Thanks. we was about about aspects the as of companies is really but within different level line terms And be I around could contextualize and more thoughts nice how you might know And best? with business healthcare just actionable longer-term not you the focus, across as appropriate in what helpful business what’s makes sense so think their what more of of you your and and like brand you the right your about you and practical of your technology be see as model?

Chris Rondeau

shield, the have businesses Yeah, who results think that healthcare, cardio be technology goes interesting do, Right person naming to cross, I on groups but tell might what now on they doing all it blue insurance might idea or have we’ve we now, have be insurance show I blue with, reimbursing will the think of able can of to users – did. our what are whose be the that what list, doing, been the walks them the what kind a to well that to with the that data companies, no companies partnership. door partnered if to we are and

big have opportunities So we tell to sell story some getting either of corporation of to to doing or a companies would interesting be benefits, – it be subscribers the – what their are more captures data what that part willing are the and partnerships. do insurance some might

if it’s is weight some to its have give a Card something I said even there other like don’t them apps learn brand. opportunity XX new to ways we know of or million and Black I that. whether think of can the plus – I that or members, or levers nutrition So, type maybe connection loss

a partnership, As I could add [indiscernible] probably that. the as as far – think that’s they to

piece, As can conceptualize how that. technology far we the as

I capture next. can they interesting few and everything. nobody you didn’t track it. But know is track what think about this what apps, I think think people do wearables when with all really think do you but – nothing they you fitness And what’s about and technology to and and wearables data recommends very –

do past don’t the I be especially where alone data in do. to – it’s didn’t are to They first-time let know think what know They members, XX%, our going to gym as is even users. what said it. with telling to start for I they them the

can. data, them that your if had, had and you remember going they pay for had you one had So because serve their do before. to this be algorithms fitness able we to And if training them I and capture start really think bring fitness the free journey and through to next for never are journey person the up I years to Unless to it. opportunity we workout that it should free not them be for help

know in exact in thing, out. right, want we walk if down how gym hill to you to the the more them able through in through Do or day. I It through the think I you they how about get as they really and just like will walk Black people that next them on Grand so day watch. keeps don’t What about walk curious curious more TV Well, engage. and day members mean do gives they the we walk press with so workout. or like cardio. experience day them Canyon every – that can get their programs them let’s what Card same like Paris come or the like, to that’s gym River give in keeps start, to be you Charles the Boston. what next what the that’s they like just it road, it watch enhance experience like learn they climb, Otherwise, do it and to the and

Oliver Chen

sounds What reward say and things there uncontrollable just things assess numbers as you’re more the you’re we and seeing. about factors would we’re concern you’re you’re the with seeing. numbers are just across really all cylinders obviously, you a and what It hitting are Thanks. in awareness very, on candidly monitoring the we’re period very like or is risk good

Chris Rondeau

can to this. you add Dorvin

portfolio existing think they I them is franchisees. XX% our of And a good. Right rates to by down. of for is going perfect would interest build are just timing growth I crazy in XX That’s got lot now, XX because franchisee estate that paying us. growth of stores. real too equipment the slow don’t see A out. cash

necessarily slowdown So be like really us. big it’s that will a not either for

captured our never stay the customers depth had have what office today to and we thing look at big keep and opportunities and look years think or have today we at this years we the think to have the in even executing and to the be ago ago. capture we I team the in understanding will I three is what discipline really data really ability future we that didn’t better five

So months [ph] made I are single every last seen, it’s at I and much machine. XX businesses was refine more be it. think this data-driven results sharper all which the with it’s to look or We’ll decisions, the is showing think much and as results but make the the by you’ve ladders, really driving able so in

Oliver Chen

And expect any just smooth? Do what pretty or on stay range? are by, margin things that? a be similar the would multiyear are we it know the parameters from should model equipment a modeling looking should Would lastly, it longer-term we it basis? ahead within to you there a and which be question. And Dorvin, lumpy

Dorvin Lively

I think, you there next obviously, as current June. are expires contract know,

be our XX% total turning in expect this range. of year, or margins will data we’ve think the then equipment clearly guided a call our I XX% So a it percentage we equipment flat margin of replacement be down from as given perspective. kind that And – to

higher that’s year. than So last

think at for three we’re years, more replacement the I up two and thereabouts. be XX%, cycle. we’ll XX% More year coming last next or

Qs guess downtime think think, still I it Ivankoe a maybe a perspective. and sense was a in I I kind couple and QX year, from of as et new John I longer-term, you’re flat, said as club, of make by replacement be going as that given we equipment Albeit to I keep if see do, think want new January, nature a our percentage. November, continue want, period to openings earlier, it it lumpy, and fairly QX So kind And hundred increase little that in we tends of to terms tends [ph] bit more replacing about than to some of But said, the say, usually half we March is cetera. be stores back February, December, I don’t usage period. time call in but stores to lumpy just a

for with, reduction. set Is in I as it minute a big Chris a with. what et up then up a is we I think earlier, placement ago. the will contract bit probably negotiate unknown, all be little end be talked which we And grow next And mentioned technology, et that included would come bit RFP cetera. technology we under a what the which brand about is will still all that with cetera, with it price equipment end the as

nowhere to basis. determines that But of yet. the that on I conversation ultimately having what kind is go-forward that factor close that’ll think margin be rate We’re a

Oliver Chen

helpful. and that’s really I’m congrats about innovation quarter. the a digital great Thanks. super Okay on excited

Chris Rondeau

Great, you. thank

Operator

George Imperial question with Capital. Your Kelly from comes next

is line Your open.

George Kelly

couple a of for guys Hi questions you.

the Just more on to one technology start enhancements. machine

other enhancements You that What that excited Card Are mentioned Black penetration? think, boost major there else different the cities. different you that any and settings, Grand about Canyon is you’re walking exciting? through could

Chris Rondeau

a things. there’s swipe set for Spotify time your be different I mean, of going remembers so lot all to I your and guys there’s Netflix it next you own your get you. own remembers you to account account, mean logins in, the

finish last Pandora, don’t the if learned the beauty finish have the of it. you watched watch re-login like well iHeartRadio. even have at we from George Spotify, you it is every and you that, So and And maybe night right? And up treadmill the show you it home put to you watch maybe on if put time up. though So

is people each the get independently kind people from doing you You person’s what point are of where of it learning can other. they’re follow to just might each where experience actually different

be as a So doing, treadmill just I that’s we which going smarter going the to opposed product, having is years. to doing five really interesting the on to is as think what for get just same evolve are people thing

George Kelly

doing test pricing, that you the then base gave make Black put the you’re taking when the Card you you mandatory question sure what pricing, could see? Sure, comfort – new that on across what about makes sense. And

Chris Rondeau

yes. Sure,

at perk, is number Black the in at least reciprocity by and a Black their advantage their not members once, biggest used XXXX clubs will, home last took workout our clubs one far perk XX% we Black year every So if of other you of and the that of Card. Card used Card club, they home were club. the and XX% different club was of at

we Black stores, as started XX we’ve got So now had X,XXX. over Card, we

perk you’ve to value perk $X, access more well-utilized of and that X,XXX to a it’s So tons got is stores. more

in use call little we Guest Delta And private used bring beds perk. a perk spa, can about mechanical for free. the is hope stores, our now have inside that’s couple like we So a we And the it’s room Airport. just great corner privileges Card to guest bit it. Black have and a to a the which to them of in

lounge we little So session. have massage the wait it’s we tanning, a beds chairs, TV to massage our area, for have your and

an So it’s in of when bit exclusive you get there. a little deal

still no-brainer when just price, with $X great the we the greatly I to kind better a a increased think. is from and value, $XX.XX has value such up of the actually for So compared in came $XX.XX value it a

George Kelly

kind sounds weren’t you the it test in Okay. any didn’t adoption? And I when Black so did of major you – are any see doing you mean Card to difference like there changes –

Dorvin Lively

non be zero XXX were it it zero X% may to like max. With – didn’t on X%, was it we always test stores the [indiscernible] it like up the club and was

George Kelly

so Okay, twist. an you. easy Thank that’s

Dorvin Lively

Yes.

Chris Rondeau

Thanks George.

Operator

with last Amanda comes question from Your Adami Macquarie.

open. line is Your

Amanda Adami

just for been these scheduled store that you in the taking in mine into thank wanted if of from XXXX? were know pushed if QX. I make Hi of that been openings terms Most hurricanes? wanted sure have answered. my I new understood scheduled just to so, to if the XXXX into I any questions. of QX in shift the adjusted any of And of openings impact have were

Chris Rondeau

we last stores No back – of quarter, our go And in to to to guided guided terms openings. impacted by the you our if XXX we XXX. hurricane

certificate to in said I’ve get and on open. the do So just – try timing occupancy from get be three QX. number Small and for get clubs your XXX. to literally into couple have call, and that run down and couple a or still days XXX to you you issues two ran of small But open to of club. QX last a shift the as be the in could the moved handful weeks of of we’re at of before shifted a can into store town of to out make coming to into And you you a work to additional inspectors go

QX that into We’re of moved not QX. anything out with concerned

to we to of We’re very as high-end And said, XXX. comfortable. of range XXX still that at expect I be the

Amanda Adami

Thank so much. great. Okay you

Dorvin Lively

Thank you.

Operator

turn the concludes like Q&A This Rondeau. to Chris back call to Session I’ll today’s

Chris Rondeau

Thank wrapping year. great you. of speak and with show Thanks be to to catalyst. actually part see for all a QX I’m next joining with such look QX here able us. you up forward to And excited and momentum early

flywheel, new definitely stores We’re member and will. marketing opening new and from is this capturing each if this you feeling

horsepower from I you that brand this think this penetration with the as is see capturing market can as company well awareness.

is it where future it’s the look sure. So I to exciting see the to business for is and think forward

for a have us and thanks joining great So night.

Operator

now concludes This you and today’s conference may call disconnect.

Planet Fitness (PLNT) 8 Nov 172017 Q3 Earnings call transcript