Planet Fitness Enters Into ASR Agreement; Updates 2024 Growth Expectations

(RTTNews) - Planet Fitness (PLNT) has entered into a $280 million accelerated share repurchase agreement with Citibank. The company will pay the Bank $280 million in cash and will initially receive approximately 3.1 million shares of the company's class A common stock, which is approximately 80% of the shares of the company's class A common stock it expects to repurchase under the ASR Agreement.

The company will acquire shares under the ASR Agreement as part of its $500 million share repurchase authorization. As of June 13, 2024, before giving effect to the ASR Agreement, approximately $355 million remained available for share repurchases pursuant to the 2022 Share Repurchase Program.

The company also announced that its Board has authorized a new share repurchase program of up to $500 million, contingent upon, and effective at the completion of the ASR Agreement, to replace the existing 2022 Share Repurchase Program.

For 2024, the company now expects adjusted net income to increase in the 4% to 6% range, revised from prior guidance of 6% to 8%. It continues to expect adjusted net income per share, diluted to increase in the 7% to 9% range.