Revenue during the quarter grew 9.99 percent to $116.42 million from $105.84 million in the previous year period. Gross margin for the quarter expanded 238 basis points over the previous year period to 61.39 percent. Total expenses were 69.02 percent of quarterly revenues, down from 72.80 percent for the same period last year. This has led to an improvement of 378 basis points in operating margin to 30.98 percent.

Operating income for the quarter was $36.07 million, compared with $28.79 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $44.15 million compared with $37.50 million in the prior year period. At the same time, adjusted EBITDA margin improved 249 basis points in the quarter to 37.92 percent from 35.43 percent in the last year period.

Christopher Rondeau, Chief Executive Officer, commented, “it was another terrific year for Planet Fitness. We increased system-wide same store sales high-single digits, grew adjusted net income 27% and returned $271 million to shareholders through a special one-time dividend. The foundation of our success starts with our affordable, non-intimidating fitness offering. Our welcoming in-store experience featuring industry leading cardio and strength equipment is resonating with an increasing number of consumers as we expand brand awareness through our growing national and local advertising spend combined with our powerful franchise base that continues to bring our brand to new communities. We ended the year with over 1.6 million additional members in 2016, many of whom had never belonged to a gym before, and the new year is off to a strong start. I’m incredibly proud of everything we have accomplished, especially how we’ve enriched so many members’ lives and delivered strong returns for our franchisees and shareholders. We are excited to build on our current momentum in 2017 and over the long-term.”

For fiscal year 2017, Planet Fitness, Inc expects revenue to be in the range of $405 million to $415 million and its adjusted net income to be in the range of $71 million to $74 millionand its  expects adjusted diluted earnings per share to be in the range of $0.72 to $0.75.

The company has spent $14.69 million cash to meet investing activities during the year as against cash outgo of $19.16 million in the last year. It has incurred net capital expenditure of $14.69 million on net basis during the year, down 23.31 percent or $4.47 million from year ago.

The company has spent $85.18 million cash to carry out financing activities during the year as against cash outgo of $74.24 million in the last year period.

Cash and cash equivalents stood at $40.39 million as on Dec. 31, 2016, up 28.52 percent or $8.96 million from $31.43 million on Dec. 31, 2015.

Working capital increases
Planet Fitness, Inc has recorded an increase in the working capital over the last year. It stood at $7.95 million as at Dec. 31, 2016, up 18.81 percent or $1.26 million from $6.69 million on Dec. 31, 2015. Current ratio was at 1.10 as on Dec. 31, 2016, down from 1.10 on Dec. 31, 2015.

Cash conversion cycle (CCC) has increased to 16 days for the quarter from 10 days for the last year period. Days sales outstanding went up to 12 days for the quarter compared with 10 days for the same period last year.

Days inventory outstanding has decreased to 2 days for the quarter compared with 5 days for the previous year period. At the same time, days payable outstanding went up to 29 days for the quarter from 25 for the same period last year.