Planet Fitness Provides Update on COVID-19
Posted: March 18, 2020 in Chains
HAMPTON, N.H. – Planet Fitness, Inc. (NYSE: PLNT), one of the largest and fastest-growing global franchisors and operators of fitness centers with more members than any other fitness brand, has announced updates to its business operations.
In response to the evolving COVID-19 pandemic, and with the majority of stores system-wide temporarily closed as March 17, Planet Fitness has made the decision to close the remainder of its corporate stores through March 31st and is strongly urging its franchisees to do the same. The Company will reevaluate the timing of reopening on an ongoing basis.
“As one of the largest operators in the Fitness industry, with the most members, we believe it is our civic duty to take this necessary action in order to protect our members, team members and the communities where our stores are located,” said Chris Rondeau, Chief Executive Officer.
Planet Fitness has recently enhanced the functionality of its mobile app to include access to fitness content and over 500 exercises for in-home workouts. The company is encouraging members to utilize this amenity during this time of social distancing. Additionally, the company is offering “Home Work-Ins,” a series of free fitness classes for the general public, that began streaming live daily, Monday – Friday, on the Planet Fitness Facebook Page. The workouts will be led by Planet Fitness certified trainers as well as special guests.
Undrawn Variable Funding Note (“The Financing Facility”)
As previously disclosed in Company filings with the Securities & Exchange Commission, the Company has access to $75 million through a variable funding note which expires in September 2023.
Suspension of Share Repurchase Program
Planet Fitness also announced it is halting share repurchases for the time being. This action will help ensure the Company can use its strong levels of liquidity to fund ongoing operating expenses.
Rondeau concluded, “We are very focused on managing this evolving situation. Based on our cash positon of $436 million at the end of 2019 combined with cash flow generated from operations year-to-date and availability under our financing facility, we believe we have sufficient liquidity to carry us well beyond the end of this year.”