Planet Fitness Inc. (NYSE:PLNT) will launch its IPO on Thursday August 6th. Here’s what investors need to know about its upcoming IPO. (Source: The Securities and Exchange Commission, August 5, 2015.)
Who is Planet Fitness?
Planet Fitness is one of the largest fitness chains in the U.S. The company has more than 7.1 million members and 976 stores in the U.S., Puerto Rico, and Canada. Among its stores, 57 are corporate-owned while the remaining 919 are franchised. In June, Planet Fitness announced the opening of its 1,000th store.
Planet Fitness differentiates itself from other fitness chains by calling itself a “Judgement Free Zone.” Its base membership starts at just $10.00 a month, which helped to attract a lot of novice and occasional gym users.
The growing fitness franchise hired finance veteran Dorvin Lively two years ago as the company’s CFO. Lively has 30 years of financial experience in the retail sector. Prior to his current role, Lively served as CFO at RadioShack Corp, as well as CFO at Ace Hardware Corp.
What is Planet Fitness’s Revenue?
In 2014, Planet Fitness generated $279.8 million in revenue, a 32.6% increase over the $211.0 million in 2013. The bottom line also showed strong growth, with net income surging 44.6% from $25.8 million in 2013 to $37.3 million in 2014.
Solid growth continued into this year. In the first quarter of 2015, revenue increased 33.5% year-over-year to $76.9 million. Net income grew 34.9% year-over-year to $8.5 million.
What is Planet Fitness’s IPO Price?
Planet Fitness expects its shares to be priced between $14.00 and $16.00 apiece.
What is Planet Fitness’s Stock Symbol?
Planet Fitness plans to list its shares on the New York Stock Exchange (NYSE) under the ticker symbol “PLNT.”
How Much Money Will Planet Fitness’s IPO Raise?
Planet Fitness plans to issue 13.5 million shares. At share prices between $14.00 and $16.00 a share, the IPO would raise $202.5 million at midpoint.
How will Planet Fitness Use the Money?
Planet Fitness intends to use the net proceeds from the IPO to purchase issued and outstanding common membership units in Pla-Fit Holdings, LLC from certain existing owners.
What is Planet Fitness’s IPO Date?
Planet Fitness is expected to go public on Thursday August 6, 2015.