everyone. afternoon, good and Chris Thanks,
As disrupted our as in in significantly May, Chris business. discussed, QX had our we outlined call and COVID-XX just
and With store adhering locations employees safety reopening playbook the Planet mid-March. closed following our all in we until Fitness and temporarily the health slowly reopening early began our expansive wasn’t as that primary to It process members of guidelines. we May our COVID-XX focus, health and authority
reopened. walk others, stores March how provide mentioned credit going our membership collected utilize call, dues through in drafted As who members store XX-day and of our our X,XXX monthly among March X,XXX homes thereafter. shaped then to once segment. closed drafted were Those dynamic results had in we on am to and a by color then QX and this shortly their I
specific member To compared $XX.X QX membership decision to drafted to and drafted driver collected revenue year June. total corporate result bottom in second in were while and revenue X,XXX our was the royalty that be freeze due closed the million million, and of in $XXX.X XXX biggest stores as revenue May top period. decline For of the was to dues accounts quarter, monthly weren’t The were that that line our in more prior the store COVID-XX. to stores there related
May to March collected recognition was revenue $XX.X stores in up monthly closed credits a three dues. deferred in due draft only stores franchise the decline had this draft made from membership offsetting and and Partially million from issue in full royalty had XXX million before monthly to a stores $X.X corporate-owned in of the June. of related million full However, dues $X.X
contributions also $X.X were recognized deferred net that the second in of from QX. million also We quarter
in as stores sales sales decline equipment sales equipment originally placed scheduled forward delayed in which quarter. second some due equipment equipment We with was COVID-XX. were we In the planned year-over-year were to QX, and $X.X QX. did were significantly by addition, replacement of impacted replacement in XX million We new in be move performance to late March to unable had in but of place the until our
we share of for a quarter. in portion That in are they June, May comparable that don’t same-store we had the month. the April same-store of upon or draft monthly for because the and reporting our drivers. to through me the stores definition. draft credit full a sales same-store and get stores stores specifics closed utilize figure into want our are a have reopening of second full sales drafted do only let prior color stores spend on not same-store not a I in and from results to dues comparable the the included June When sales execute a none sales membership some for Before don’t drafted store are said, included Because calculation members and in that walked draft not therefore in periods, the and are key we and provide base minute
context, hit quarters shutdown consecutive in For all sales March of same some COVID-XX store before recorded stores. and positive of our we XX
net store on our levels ability same-store built model are revenue year-over-year. membership results continue and historically base recurring grow to to the month-over-month therefore and across Our strong sales
at a XX in trailing same slower our over net store recurring our what per in will year recurring growth Additionally, net even period in sales the period way store then in months. works levels performance a current membership sales rate the our any function the happened if grow our same-store our and to The the revenue is growth rate decline. revenue membership could time model for same-store membership model, last of per point that is falls at rate below the
but month XX are comps happened last in the on last not what the what’s Our based on in happened months. based
a interruption majority months given an membership a for stores cannot unable COVID, levels be when So closed our in of to that we that were membership result to stores the in three that created months growth stores in were increase our due the as due grow XX% our growth COVID-XX a June down seen of our net cycle rate approximately being When had XXX two to same-store shut in of month. and XXX comp as a member sales base. stores store the in slowdown a growth. sales This same-store a balance of and X.X% growth. have had were Of full result, to net with drop the in the increase offset
in and member purposes, growth comp factor store of XXX for balance year, exchange or by in June’s this XX% in gap The than between explain in this to closures. decrease members comps contributed the same-store QX For X% COVID This sales in dropped quarter performance approximately growth which store whereas a we XXX growth. to year, net due approximately drop this Card decline or unable difference these attribute Of from members. increased QX the the was year. year’s in a XX results. by was stores the of this growth stores decline to of remaining a in the per the membership in change to approximately comparison to Card June of XXX being To membership the QX points our -- approximately Black XXX delivered points due the first X% basis X.X% levels, further, in national QX, last rate and comp higher promotion of over store fact were in mid-March QX basis in due in penetration we repeat to Black QX that
QX decrease we XX.X%, wide improvement prior compared a in Card period, saw in year-over-year. system a rate year XX-basis-point Black while QX Our the to penetration XX-basis-point was
higher on Chris year. cancels flat levels stores overall and across that Joins membership remained the reopened. were second prior end relatively X,XXX reopening to index quarter, of the over prior of membership when end As the stores by early second the the the year also discussed, than due levels the compared versus demand open indexed at the to after quarter
consumer However, membership dues media stores for general coverage are and since resumption corresponding index of and above levels prior of that concerns the COVID-XX regarding to in mid-June year and the and have annual the line virus have cancels increased the combination billing the and resurgence continued prior of of in joins with reopened monthly now year.
review a $XX.X segment million of year revenue segment was Moving results, on to our in $XX.X compared million, franchise to revenue the prior period.
components. the breakdown me Let
The that in was to deferred membership compared annual dues which membership of of royalties from the year. includes revenue $X.X of consists closed from quarter $XX.X on same March revenue royalty First, monthly million, and as million year. fees compared $XX.X COVID-XX in X% $XX.X was stores higher for up rates year same the the million were of million in last revenue recognized period for more rate the quarter reopened during the by royalty last that March of at from second X.X% same period royalty drafted average result and quarter. to stores stores the last driven The draft the
second period. agreements, from fees online the to These of members $X.X placements compared prior paid year sign and ups in existing as recognition placement ago, franchisee-owned sales reflects within I our $X.X quarter, a by are Next which quarter fees the area assembly segment development for online dues. in revenue compared transfer stores the $X.X in with just the million are new lower outlined. ago. decrease million a as franchise million, fees net closures. store fees agreements of franchise the to $X.X U.S. fees the store and we compared for received primarily the the processing our was revenue and The other receive our executed us quarter the were decrease These was result from fees The million equipment of within received joint franchise year stores of placement and driven Also the lower the to we in to year was a and
Finally, until dues. draft NAF includes as monthly open million, not $X.X last and national not collected year, $XX.X membership revenue fund advertising but the collected quarter revenue was QX. compared in $X.X of that million was are recognized in revenue revenue March NAF NAF million current to stores unless deferred The is
in stores $X.X compared dues to QX, annual of revenue of were of stores of recognition still the decrease segment the lower our stores. closed and corporate previously includes our majority the store The was and due $X.X membership the closed due was to million the corporate period. quarter. of the closure corporate-owned Since million in $XX.X after million $X.X March $XX.X due prior COVID-XX year million in deferrals the from revenue Our million, to recognized collected to draft second revenue fees
down store primarily to equipment $XX.X decreased franchisee-owned The segment. to $XX.X second quarter, was year. sales. as we from $X.X -- were additional year due launched QX Replacement $XX.X to place to lower from replacement all In million was to our million. $X.X to XX stores, to new all in This compared and the replacement related Revenue equipment to equipment million on placement, equipment had Turning discount of revenues applies quarter Beginning decrease new discount. equipment a was equipment development as offer existing offer store the a support of our well by for the lower in equipment in million, sales last in equipment QX the million to XX end all in store XXXX. we the XX% sales $X.X purchased which million decrease the QX, period. Included prior orders. orders new
to a with stores are year. adjusted loss to and million, $XX.X difference in By seven not COVID-XX. impact per the $XX.X measures considered $X.X operating net end opened of can to a loss marketing decrease adjusted the million was franchised of adjusted EBITDA Adjusted operating for in of The a new in the equipment quarter to primarily XX.X% first diluted reconciliation as compared $XX.X which expenses, and lower existing related direct share. the XX and Adjusted $XX.X stores the new quarter by line was net previously of the loss $XX.X store other cost this ago, by and of evaluation release. driven discussed. associated year expense Included period. driven stores ago. to a million stores the marketing ago. cost to reductions, ago GAAP sales was franchise-owned of corporate-owned EBITDA partially and million, tax including our the segment, or SG&A Store last income defined of to found occupancy of approximately due $X.X reductions various NAF contribution lower as amortization, cost income with and The for is before corporate year net the $X.XX and expenses Our revenue amounted of earnings payroll, of compared $X.X expenses year the acquired quarter since previously primarily interest expenses million, loss temporary COVID-XX. reductions EBITDA equipment decrease revenue negative was this stores down $X.X of closed, expense decreased to by taken decrease of decrease $XX.X was The year revenue was was expenses to as and million, is million due with certain to relates associated diluted million, primarily was are offset discussed. decrease to $X.XX, primarily revenue adjusted million, a higher equipment revenue in deferred saving which compared expenses are in also was administrative in share reflects adjusted while The reduced a million, depreciation million operation EBITDA $XX.X National was between a million. net result fund advertising placement period. advertising in NAF quarter’s was $XX.X for and $X.X that expense prior million adjusted non-cash and recognition compensation, compared year from was COVID-XX. million be and $XX.X executive ongoing variable compared items million of million prior $XX.X to to salary related a in lower year adjusted performance the earnings A decrease EBITDA $XX.X EBITDA,
to turning Now the sheet. balance
$XXX.X As of to cash XX, million compared on and $XXX.X equivalents cash June had XX, XXXX. of XXXX, million, we March
being. the restricted we we for we cash, the end our Based preserving ended current $XX.X that share announced In in repurchase on March of liquidity, and at with situation compared of the focus activity addition, million were to halting quarter million time $XX.X our QX. on the
also long-term our XXXX, took and for burn of our reduce announced debt Directors. monthly Board the of team securitized including debt $XX consisting three million variable We excluding as measures was of our funding previously deferred of reductions $X.XX our costs compensation XX, to financing of tranches Total notes. leadership cash additional and June billion
covenant structure debt light. is securitized Our
for of our covenant, the Similar triggering June We coverage reported maintenance system’s a we calculated sales debt recent event our XXX% believe and basis X, total covenant month first have XX-month are on These two sufficient XXX% maintenance two on two coverage reporting tested and have and covenants lag. ratio we covenants. position, sales quarterly, a our In to both liquidity threshold. for a XXXX, respectively. ratio most period system-wide we our service cushion headroom debt service and trailing debt had a to roughly
are uncertainties surrounding we pandemic, of to the nature the guidance. the Given from continuing evolving providing refrain
the is will mode our now near-term that questions. our to shareholders turn I to business will to and difficult call for the longer in our competitive create operator predict, believe our and stakeholders. the term, be well-positioned widen back While the we for value
