Planet Fitness, Newington, N.H., increased revenue by 26 percent in third quarter 2016 compared to the same period a year ago, according to financial results the company released Wednesday.
Planet Fitness generated $87 million in third quarter 2016 compared to $68.8 million in third quarter 2015. Net income was $14.9 million in third quarter 2016 compared to $0.7 million in the same period a year ago.
The company opened 37 new clubs in third quarter 2016, bringing its total to 1,242 clubs as of Sept. 30, 2016.
“Our business continues to get stronger,” Planet Fitness CEO Chris Rondeau said in a statement ahead of Wednesday’s earnings call with analysts. “Third quarter system-wide same store sales increased 10 percent as a growing number of casual and first-time gym users are joining Planet Fitness.”
Rondeau also announced Planet Fitness is seeking to amend its senior secured credit facilities to allow for, among other things, incremental term loan borrowings of approximately $230 million.
“Proceeds from the incremental borrowings, plus cash on our balance sheet, will enable us to consider a special cash dividend to holders of our Class A common stock and other equivalent payments, including payments to unit holders of Pla-Fit Holdings, LLC, of up to approximately $280 million,” Rondeau said.
In the first nine months of 2016, Planet Fitness generated $261.8 million in revenue, a 17 percent increase over the $224.7 million generated in the first nine months of 2015.
For the year ending Dec. 31, 2016, Planet Fitness raised expectations for its total revenue to be between $373 million and $378 million, up from $366 million to $372 million. Its adjusted net income is expected to be $65 million to $66 million.
Rondeau announced on the call that Planet Fitness will once again serve as the lead sponsor of the New Year’s Eve celebration in New York City.
Planet Fitness’s stock price was $20.50 in after-hours trading Wednesday on the New York Stock Exchange. It opened the day at $19.61.