Thanks, Chris. Good afternoon, everyone.
As approximately during third the quarter. XX% Chris reopening our XXX with store open is stores approximately now mentioned, of base
period. new the In ago XX opened development, added terms compared stores XX in stores year of to during new QX
reopening development over our a focus the given months requirements several and as re-launching more previously has communicated last have national marketing on been efforts and XX-month primary extension. stores Our recently been all
in our to line existing driver hear biggest sales top a the of equipment the you'll change decline. stores As was in moment, new and
prior was For the the third $XXX.X year quarter, $XXX.X total to million million compared revenue period. in
utilize membership thereafter. corporate in franchise $X.X were reopens. NAF once their majority then dues $X.X $X.X monthly members revenue and deferred March March our vast in closed. back shortly This to drafted previously store dues, the million million of before reminder, down royalty, million to $X.X a that XX-day As million has from from had recognition closed a the of related own those stores dues store drafted includes from home membership collected into stores credit broken QX monthly monthly Therefore, contributions. and in
get of March from store and of same are over monthly closed and those positive and of quarters same prior sales minute store before credits for reopening, specifics don't sales store they some contexts, stores. we growth XXXX have shut full reported average XX draft our Now in in spend for and of or all COVID quarters XXXX. definition. members base. before not into are to same our same store don't X.X% because The I'll draft XX average utilize XX.X% a down dues on stores was our store But I sales membership execute the periods, hit our a comparable upon sales, included When
and same Our store store to net model our membership grow depend historically the month-over-month results levels on quarter-over-quarter. and strong continually across ability sales base
shut before XX in our Chris any store attrition reopening When post of the over as normalize in And we happened our starting stores the and stores. membership sales the to to to seen the our first results model, revenue the in function store discussed, in performance we've is same point dues were annual due down unable months our after net recurring couple months. of billing our third of higher grow cancellations levels membership elevated month. at trailing what's monthly time to COVID, initial a as levels in Additionally, membership
many progressed. brand canceled of have we QX monthly improvement national saw joint our away stores, moved farther and and resumed for and annual as our in first from and sale our reopened September, As event we billing trends in marketing our underlying sequential
same year the store And However, remains calculation, membership importantly was sales worse prior overall year the growth in membership this the period. negative. in or than growth levels for change rate
As and we memberships trend store least in turn stores were of partially of The These prior store sequentially membership in X.X% seen year month the to each build decrease increase the draft the XXXX growth rate one to same quarter. remained a both higher XXXX the store worsening period. the stores negative. although comp sales was have in of Note, sales, led same growth same higher corporate decrease a X.X% full to improved decline of X.X% in because and This had those X.X% compared decline below declining at Of franchise by levels QX down sales card stores period. that black through dynamics, QX, driven that year sales penetration rates result of these a in had prior due space. stores the slow X.X%. by same a store offset black with stores that X.X% average monthly card and in pricing
the As of such, wide system September. and same store digits high in across month the growth was quarter, worsens sales down single our
XX I the trends membership store comp in happened has store in member prior growth same same growth what previously are on and months. improve levels As year. growth to levels to over stores our prior same based since the the exceed for our must membership sales In in sales our period the order mentioned, the
revenue million of the million was of segment prior results, XX.X%. period, review a in revenue $XX.X year $XX.X to on to decrease segments compared a Moving our franchise
me break Let the components. down
average from revenue the period stores recognized for fees of $XX.X catch last for of million annual closed quarter. -- membership compared of to $X.X the was to which the million dues during equal on were billing quarter revenue First, third drafted was royalties million fees year. the same as year. up March that million royalty in of $XXmillion from reopened royalty a the membership monthly $X.X of of consists same revenue deferred membership and The attributable and March result draft $XX.X in includes annual COVID-XX to that quarter stores rate X.X% The and the last
a the compared us and U.S. agreements lower Next, the of of for within of revenue area stores placement in the commission equipment The X.XX% impact decline the from of from to franchise in XXXX. are fees fees that temporary and our stores of in NAF other our fees and is QX franchise and run dues until are our new draft processing decrease quarter the a dues. revenue The These of agreements, $X.X was $XX.X by remainder franchise higher contribution and fund will prior when deferred and not and was to Also And are recognition ago. discuss and we recognized million stores the million September the equipment placements fees placement million as we collected was The unless ago. owned later the discuss and $X.X beginning of NAF in is QX. with executed by segment year that The decrease million within $XX.X new 'll the have in NAF was year. offset fees receive compared franchise and paid equipment received store which revenue million with million I placements not join Canada. closures the received $X.X reflects March signups, $X.X that These revenue was period. revenue online $X.X existing quarter through revenue. sales last revenues. in year-over-year compared includes collected million assembly monthly number reflects in the partially to lower from year year NAF compared quarter primarily of but transfer the previously national fees development store rate current driven member online the lower finally, open re-equipment advertising new to I
segment closure year the of the to period. $X.X The $XX.X revenue compared recognized in as a million membership of reopened million driven to stores of store $XX.X many lower million due includes of $XX.X by was that corporate corporate million March stores portion from decrease Our our in prior fees revenue was previously March a COVID-XX that result QX. of draft million for period. $XX.X the were closed deferred The from and in
In mentioned by Turning $X.X $XX.X I to to the last QX our earlier Revenue XX% offer was QX in from development down franchisee new sales both our had equipment store store a were the or million equipment XX in by prior we million XX $XX.X segment, the decreased equipment on $XX.X to year owned placed in the to third to This orders decrease was year. new XX.X% and driven launched all applies $XXmillion support equipment lower end XXXX. quarter, offer purchased stores. QX from in The equipment replacement call, sales discount equipment we existing million. all and store placements, orders. Replacement along replacement with of Beginning compared period. which equipment to million new lower
last Adjusted $XX.X previously this loss And were million, of driven of to ago, lower year in very stores depreciation encouraging. decreased through year the net adjusted $XX.X equipment to taxes, since franchise prior million higher to national our October of million million membership the segment, sales the a per which considered deferred last before advertising quarter’s existing the adjustment hits. million EBITDA the and to found are million primarily quarter $X.XX EBITDA per adjusted reconciliation by from a which $X.X for adjusted discussed. was associated $X.XX to step million year in net to NAF $XX.X by with with XX million expenses, equipment The cost equipment new the make in the decided discussed. an towards revenue period. was diluted X before ongoing $XX.X a to forecasted year and expenses non-cash, the expense offset with The primarily income lower national million first EBITDA in including or million $XX.X September National balance P&L, closures, our advertising occupancy saving income to can quarter a higher $X.X previously year is operating other decrease we cost investment since EBITDA associated year-to-date in December. adjusted million decrease was adjusted as stores primarily was results and million the store sale, was to full result of an interest, $XX million defined in was reductions compensation, By by partially ago. measures for Adjusted year related of on EBITDA to was corporate slight the efforts corporate we due operating the expense. expenses. income expenses ratable compared EBITDA mentioned, recognition period. impact release. a The the diluted $XX.X expense adjusted resumed of million a marketing owned cost earnings in to revenue storage which decrease the net to in expanding before for ago. Our decrease I A Chris was stores the in national to variable end was payroll, share. amortization, and compared income and line and XX.X% the with adjusted stores revenue, year. The overall fund are our compared placement incremental of be share, was GAAP as which and of third items of to resulted about approximately $XX.X talk prior One SG&A compared that and performance franchise was certain Included evaluation direct the X.X $XX.X in million compared Store not point our of marketing in owned expense $XX.X reflect $X.X of amounted relates proper in decrease operation decreased sheet, million. net share was of pandemic new acquired $XX.X as driven quarter opened travel $XX.X increase QX
in the expense to for basis, As and a of be projected net NAF result investment year incremental a P&L. revenues year, will the our NAF NAF a this on full
that sale the long-term believe we dislocation was right competitive results given the incremental our and investment the business, However, decision the encouraging occurring within the industry. September advertising for our of
Now let June with we cash the sheet, of total and as to cash, XXXX, XX, in XX, balance $XXX.X on million $XXX.X me million, September cash had $XXX.X equivalents XXXX. of to million compared turn
the activity situation, the compared the halting ended quarter of of announced we to current in at cash preserving liquidity, all our focus addition, with million Based we restricted for we that the million share $XX.X on In time March and end $XX.X were repurchase QX. on being.
core we tranches and We XX, refocus $XX announced of also took deferred of our teams compensation to on excluding maintaining our right our including monthly membership as financing million securitized reduce QX, and Board of of to base. the priority consisting our effort $X.XX long-term field headquarters three made additional top for reductions and debt, to XXXX, during and and cash size, debt of billion was our burn, decision Total funding. September an growing variable costs in previously of leadership our measures Directors our team,
ratio In Our maintenance two they're trailing total a structure on a tested Both wide a month is basis, coverage securitized and threshold. quarterly, roughly debt calculated service a lag. covenants, to first covenant our recent headroom event and our maintenance our XX-month have sales debt debt we reported most coverage two cushion two system light, are we on September our covenant XX% system wide sufficient a position, have sales debt for respectively. reporting liquidity we the to ratio, and triggering covenant service period had Similar we of believe and a for XXX% XXXX, covenants. X,
providing pandemic, refrain from Given guidance. we the evolving an nature surrounding are continuing of to the uncertainty
industry financially we long-term capitalize that is for of and we the over turn predict, we emerge will positioned call the the rest believe opportunities the I'll operator back While result questions. to well are to believe the compared to a on of the now value strategically pandemic. as near-term many to the creating difficult the
