my17cents - “Bricks and Clicks” Planet Fitness Fourth Quarter 2020 Earnings

  1. Membership was up in Jan 2021 over Dec 2020.
  2. PfplusappJan 2021 usage was 70% of Jan 2020 usage.
  3. 4% of new joins come from gyms that have closed.  
  4. 41 new Planet Fitness stores were opened system-wide during the period, bringing system-wide total stores to 2,124 as of December 31, 2020.
  5. 130 new Planet Fitness stores were opened system-wide during the year, bringing system-wide total stores to 2,124 as of December 31, 2020.
  6. 18 month extension for Franchises on re-equipment investment obligation.
  7. Current view 75 - 100 new stores guided for opening in 2021 but fluid due to Covid.  New development will be modest.  Back up to 200 per year hopefully in future, a question of when and not what if?
  8. System-wide same store sales decreased 10.6%. By segment, franchisee-owned same store sales decreased 10.6% and corporate-owned same store sales decreased 11.7%.
  9. Mobile App is in the Top 3 for Health and Fitness App Stores.
  10. 41% of Membership has downloaded the app. Driving usage due to membership.
  11. Service the Members at home in a full circle wellness journey.  Trying to be a one stop shop for app usage adding yoga, meditation and nutrition.  Geared content for the people who are first time gym goers.  
  12.  App Usage for those using the QR Codes on Machines, workout time length, visit usage providing data to help track journey of Members and will be able to guide future signups in their journey by using this data.
  13. PF+ app 20% subscribers are non-PF brick and mortar members.  25% of those joined a brick and mortar member.
  14. PF+ taking this time to see what content/trainers are being consumed the most.  It’s real time learning for them as they add more content over time.
  15. Acquisition through app with conversion rates and upgrades to Black Card via app.
  16. Revenue share for the app is still being worked out with the franchisees so it’s a win-win.  All or portion of app revenue.
  17.  The opportunity for merchandise sales through the app i.e. bands for exercise, nutrition items and other merchandise is being looked at.

*These are quick takeaways from listening in on the Earnings Call and Press Statements.  Forward-looking statements are not assurances of future performance. Instead, they are based only on the Company's current beliefs, expectations and assumptions regarding the future of the business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company's control.

my17cents - Why the Technogym Bench will fail.

In concept the Technogym Bench is perfect for home workouts.  Weights, bands and everything you need in a somewhat small, somewhat stowaway package. Let’s watch the video..

Perfect, right?  You can even workout to the app!  Over 200 exercises. What don’t I like about it?

  1.  The COST!  Technogym home products have been costly in the past.  Way above the cost of a Peloton or Bowflex.  For example the cost of the Technogym Run Now Treadmill goes for $11,995!  The Technogym Excite Bike goes for $5,995!
  2. The MUSIC.  Did you listen to that video?  Like that song?  Hope so cuz’ that and tunes like that is what you’ll be listening to with the app videos. Music is expensive and most companies don’t get the rights to the music we work out to.  Companies like Peloton pay a huge price to have the right music for your workouts.  Will Technogym?  I doubt it. Go back to YouTube and watch a few of the OrangeTheoryFitness Home Workout Videos.  Did that?  Did you like those five songs?  Hope so because every video contains those five songs.  Technogym needs to merge with the likes of Peloton or maybe even Les MIlls to bridge the music gap.

So cost and music will be the end for the Technogym Bench except for at a few hotel gyms around the world.  Great concept, bad execution.