afternoon, full quarter and of good begin by our XXXX discuss everyone. outlook. details and the I’ll Chris, our year reviewing third results then Thanks,
increased The XXXX, combined of our joins $XX.X Card to increased October Approximately pricing X.X%. of net growth. increase same-store QX member XX% rate place a the driven perspective, points increase increased rate stores balance revenue million our $X franchisees of period. put the from total was and in XXXX. in that segment with same-store X penetration sales XX.X% in corporate growth increased and on basis last increase growth, Black our to a prior XX.X% comp third the new same-store Card $XXX.X being Black with the sales for X.X% XX sales system-wide For year by Total with X.X% system-wide in was compared was quarter year, by million from driven
Card increase Black approximately same-store of increased in the During sales. the quarter, basis points drove XXX the pricing
XXXX was of in fund franchise period. includes Our $XX.X beginning segment $XX.X the in XX.X% from now prior million national which advertising million, increase revenue, an revenue,
me drivers our the million, fees. year, membership million which Royalty compares franchise drivers: stores by three down and our segment. royalty consists XXX of third, same average franchisee revenue Let was I revenue of have quarter revenue higher of on increase increased third as last increase more rate. overall break year; and on second, $XX year-over-year fastest X.X%; XX.X%. annual This the since membership we of $XX growing This monthly same-store dues First, an royalties the then of sales last of a had to mentioned, royalty quarter in
that For same more including the higher stores year, was quarter, third X.X% up their royalty driven in from the period the stores at rate last royalty franchise X.X%, by rates agreements. average amended
million dues other to franchise sign-ups, to number due stores amended stores. fees new are have agreements area well primarily development increase the $X.X just online and was and franchise to and of our royalty compared period. for the fees to these from instead that system, transfer point-of-sale agreements related received our the in agreements mentioned. The fees Next, These their existing of processing from to million paid as prior fees were as rate paying fees us decrease fees member $X franchise sale existing through new the of
we FAP change headwind recognize and ADA quarter. in to prior QX $X.X the addition, revenue the this about of In million was compared in year how
in As versus is the related our we last for outlined franchise time million million $X.X received franchise was placement is to period of at a quarter These our previously, compared equipment sales segment $X.X on which fees to assembly year. franchise need and recognize the we now revenue and within third the are XX-year over revenue, fees these signed. stores. Also agreement we placement to lease
to commission third and have attributable increase primarily their was vendor million to party $X.X agreements was international equipment the that’s arrangements commissions a paying that stores to just openings, and income, The number compared which rate the discussed. million preferred for decrease their commissions store royalty to commissions $X.X our Our new ago. are from existing year amended franchise of
advertising Finally, zero national new compared how fund as NAF account into we revenue rules went year. last million year January $XX.X of for effect X on contributions related to this was to GAAP the
an reminder, Ad Fund to Due prior these sheet. balance revenue marketing as really to expenses. associated contributions the a as now we recent As year, only the impact with contributions must managing on recognize our the expenses and changes, this National NAF record had accounting the
by and was to of corporate-owned franchise store in $X.X Long fee $X.X the the acquired stores million $XX.X $XX.X XXXX Island we six due million as was annual in segment eastern as same Our period. the corporate in store stores XX% increased corporate-owned new Of January, four driven sales driven increased well X.X% year late these million increased prior revenue revenue. to $X.X $X.X opened million we from million was increase, million in by
approximately in contributed As to Colorado in stores revenue. August, Chris four which mentioned, third $X.X we quarter acquired franchise million
XX.X% franchise-owned million existing equipment sales new Turning was driven ago. segment. stores XX sales equipment to by million million. or by our higher U.S. a to The additional and $XX.X versus from $XX.X store Revenue equipment replacement increased increase year $X.X the in to
the replacement compared of our ago. XX% For quarter, equipment to a revenue year XX% sales total equipment were
quarter. million stores owned by revenue, new to relates expenses, opened stores was direct six an which by to XX%, The to to year last $XX.X the of operation cost the was associated four year compared increase and are increased a sales ago, existing the to our with increase to increase Our cost sales equipment million XXXX, a $XX.X QX in amounted which franchise associated $XX.X primarily of equipment during with to January X, compared year. and on million Store stores, Corporate-owned stores $XX.X driven new the acquired ago. which costs million driven in
prior was August, open in end stores experienced SG&A in by the for to a we compensation. and ago. the incremental cost quarter planned primarily quarter store addition, versus with and well our some the higher The as compared support to payroll year the $XX.X In opened acquired prior and additional increased one was four recent year. to Stores of increase the infrastructure as associated to year, operations variable million million corporate and $XX.X growing Colorado related Corporate the equity
We the advertising generated quarters year-over-year to percentage to first growth the was of expect SG&A this expense fund the in come year. in growth revenue the the offsetting million, three in compared fourth quarter. NAF National quarter down $XX.X we aforementioned in the experienced
from this income million basis the the in period. approximately to gross prior year NAF approximately XXX operating to revenue in a driven $XX million by for of basis compared ago. to margins decrease quarter XXX year which the points operating statement XX.X% points third mentioned This operating $XX.X increased by year. expense NAF income by to negatively earlier, income Our up XX.X% decreased impacted on quarter Operating the the the and margins was compared the of
to So basis on an income and excluding basis approximately points NAF, XX.X%. adjusted impact margins operating of the increased XX adjusted
to for tax the XX% year was period. the effective rate prior GAAP in quarter XX.X% Our third compared
level. we non-controlling earnings corporate all Fitness stated adjusted to before, approximately was have tax income and the Planet if the were at level, income Fitness of because taxed XXXX appropriate XX.X% the company at the taxed Planet which not the is As attributable of for rate the Inc. interest,
Inc. non-recurring the prior share million income adjusted would approximately rate to be last $XX.X period. compared ago. income or a an to Fitness Planet diluted XXXX net year For per increase basis, diluted $X.XX reform attributable million share, share On a XXXX, to or XXXX, for of XX.X% adjusted respectively. income compared exclude was to late normalized per appropriate expenses $XX.X period. quarter income $X.XX share million of tax $X.XX for prior Adjusted an third XX.X%. and the quarter third per $XX.X XX.X% of basis, with was an On a the million net million tax million year or following adjusted and of GAAP income net XX.X% year diluted of diluted in and $XX.X compared has per year, was been $X.XX the Net the tax XXXX, in rate passage or $XX.X $XX.X reflect
overall adjusted the to points segment, million from basis of segment XXX approximately EBITDA average a excluding $XX.X the primarily franchise On adjusted today’s net and which are sales to by and XX.X%. XX% of received increased of franchisee in the the in other from an segment, EBITDA, decreased as in stores non-cash year the to franchise margin earnings GAAP our EBITDA is also base basis, be EBITDA to in $XX.X equipment same-store before driven reconciliation net period. evaluation of release. margins result as items a lowest in was earnings revenue, in provided net and XX% GAAP increase not defined segment. included million and higher the have XX.X% income from Adjusted of million growth impact $XX.X taxes, of coming ongoing We same-store NAF, in can our of The EBITDA income A NAF, for found income adjusted having margin our well million the as to income of that the higher considered $XX.X operating adjusted performance, adjusted rate. of increased reconciliation decrease release. X.X%, an royalties not interest, prior our impact owned net sales depreciation By excluding certain amortization, in additional royalty adjusted
annual same-store fees, stores stores XX.X% sales, primarily the XXXX. discussed in $XX.X expense, approximately revenue increased in in and The our by EBITDA by corporate four partially NAF NAF, XXX higher higher points segment margin late X.X% and in increase revenue, basis franchise increase franchise increased adjusted January million, EBITDA adjusted offset EBITDA in opened costs above. Corporate-owned XX% stores SG&A XX.X%. the segment we margins was to by to six increase driven the acquired to the excluding Excluding due
Our Corporate margins Stores points XX segment XX.X%. approximately to basis increased EBITDA
Our and $X.X equipment year franchisee replacement a driven Equipment owned XX.X% sales ago. million by increased higher stores versus to segment EBITDA existing store new higher to equipment sales
margins for still new We XX% in the and expect were be compared handled equipment decrease adjusted account segment to points the basis going as to equipment equipment rebates XXX that XX.X% ago, Our a how under in year EBITDA was to XX.X% full with discounts for contract. of margins result differently XX% forward. mainly and the due are year one-time impact a we current margin a
Now turning to the balance sheet.
XXXX, September note of $XXX.X of million equivalents capacity our million. and of variable cash cash under and XX, As undrawn we borrowing $XX had funding
the third common repurchased for stock During we million. of XXX,XXX $XX.X Planet shares a Fitness’ A total cost Class of quarter, approximately
end billion approximately of our of the in $XXX in debt, the XXXX, due quarter, end million million $XXX notes a share solely with plan fixed that at a interest which Total of $XXX of financing securitization, the rate consisting $X.X XXXX, $XXX was due long-term of of with includes X.XXX%. whole deferred As notes four-year excluding cost in approved X.XXX% September interest repurchase and of QX, September August. of board the the seven-year third million net rate business remain
our sales is from XX%. now now increase grow up This approximately outlook XX% expect We sell approximately to XXX EBITDA to XXX up adjusted in assumes approximately approximately now and to year-over-year, by approximately new equipment our EPS approximately the outlook. grow related expected expect to approximately year same-store for the increase stores. end equipment scheduled system-wide Now now our XX% questions. primarily our and stores the guidance I’ll new we full XX%. raising back sales guidance. year to of on are previous our Based XXXX, we the compared to We of call will to visibility of guidance previous XX% placements and the full to in We to expect better range. XX%. XX% of operator to previous now from place approximately timing elements high Adjusted X% XX%, revenue at up guidance of turn from
