PLANET FITNESS, INC., 10-Q filed on 9/2/2015
Quarterly Report
Document and Entity Information
6 Months Ended
Jun. 30, 2015
Sep. 2, 2015
Class A Common Stock [Member]
Sep. 2, 2015
Class B Common Stock [Member]
Document Information [Line Items]
 
 
 
Document Type
10-Q 
 
 
Amendment Flag
false 
 
 
Document Period End Date
Jun. 30, 2015 
 
 
Document Fiscal Year Focus
2015 
 
 
Document Fiscal Period Focus
Q2 
 
 
Trading Symbol
PLNT 
 
 
Entity Registrant Name
PLANET FITNESS, INC. 
 
 
Entity Central Index Key
0001637207 
 
 
Current Fiscal Year End Date
--12-31 
 
 
Entity Filer Category
Non-accelerated Filer 
 
 
Entity Common Stock, Shares Outstanding
 
36,597,985 
62,111,755 
Balance sheets (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Mar. 16, 2015
Statement of Financial Position [Abstract]
 
 
Assets
$ 1 
$ 1 
Commitments and contingencies
   
   
Stockholders' Equity
 
 
Common Stock, par value $0.01 per share 1,000 shares authorized, 100 shares issued and outstanding
Total equity
Total liabilities and equity
$ 1 
$ 1 
Balance sheets (Parenthetical) (USD $)
Jun. 30, 2015
Mar. 16, 2015
Statement of Financial Position [Abstract]
 
 
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, shares authorized
1,000 
1,000 
Common stock, shares issued
100 
100 
Common stock, shares outstanding
100 
100 
Condensed consolidated balance sheets - Pla-Fit Holdings, LLC and subsidiaries (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Current assets:
 
 
Cash and cash equivalents
$ 32,148 
$ 43,291 
Accounts receivable, net of allowance for bad debts of $945 and $399 at June 30, 2015 and December 31, 2014, respectively
11,374 
19,275 
Due from related parties
644 
1,141 
Inventory
767 
3,012 
Restricted assets - NAF (note 5)
1,696 
 
Other current assets
7,398 
8,599 
Total current assets
54,027 
75,318 
Property and equipment, net
51,901 
49,579 
Intangible assets, net
284,390 
295,162 
Goodwill
176,981 
176,981 
Other assets, net
12,391 
12,236 
Total assets
579,690 
609,276 
Current liabilities:
 
 
Current maturities of long-term debt
5,100 
3,900 
Accounts payable
11,754 
26,738 
Accrued expenses
9,804 
8,494 
Current maturities of obligations under capital leases
143 
376 
Equipment deposits
2,805 
6,675 
Restricted liabilities - NAF (note 5)
1,696 
 
Deferred revenue, current
17,797 
14,549 
Other current liabilities
148 
153 
Total current liabilities
49,247 
60,885 
Long-term debt, net of current maturities
499,725 
383,175 
Obligations under capital leases, net of current portion
21 
45 
Deferred rent, net of current portion
4,291 
3,012 
Deferred revenue, net of current portion
9,308 
9,330 
Deferred tax liabilities - non current
696 
606 
Other liabilities
482 
474 
Total noncurrent liabilities
514,523 
396,642 
Commitments and contingencies (note 13)
   
   
Equity:
 
 
Members' equity
10,994 
146,156 
Accumulated other comprehensive income (loss)
(1,529)
(636)
Total equity attributable to Pla-Fit Holdings, LLC
9,465 
145,520 
Noncontrolling interests in variable interest entities
6,455 
6,229 
Total equity
15,920 
151,749 
Total liabilities and equity
$ 579,690 
$ 609,276 
Condensed consolidated balance sheets - Pla-Fit Holdings, LLC and subsidiaries (Parenthetical) (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Pla-Fit Holdings, LLC [Member]
 
 
Accounts receivable, allowance for bad debts
$ 945 
$ 399 
Condensed consolidated statements of operations (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Pla-Fit Holdings, LLC [Member]
 
 
 
 
Revenue:
 
 
 
 
Franchise
$ 18,691 
$ 15,364 
$ 35,658 
$ 27,825 
Commission income
3,188 
3,063 
7,978 
7,102 
Corporate-owned stores
24,975 
22,428 
48,521 
40,131 
Equipment
32,099 
21,842 
63,718 
45,233 
Total revenue
78,953 
62,697 
155,875 
120,291 
Operating costs and expenses:
 
 
 
 
Cost of revenue
25,300 
18,449 
51,246 
37,674 
Store operations
14,708 
12,942 
29,049 
23,324 
Selling, general and administrative
12,354 
8,094 
26,492 
14,714 
Depreciation and amortization
7,983 
8,507 
16,184 
15,043 
Other (gain) loss
(61)
 
(67)
1,293 
Total operating costs and expenses
60,284 
47,992 
122,904 
92,048 
Income from operations
18,669 
14,705 
32,971 
28,243 
Other expense, net:
 
 
 
 
Interest expense, net
(6,560)
(5,046)
(11,316)
(11,608)
Other expense
(76)
(263)
(812)
(642)
Total other expense, net
(6,636)
(5,309)
(12,128)
(12,250)
Income before income taxes
12,033 
9,396 
20,843 
15,993 
Provision for income taxes
419 
446 
691 
784 
Net income
11,614 
8,950 
20,152 
15,209 
Less net income attributable to noncontrolling interests
113 
109 
226 
318 
Net income attributable to Pla-Fit Holdings, LLC
$ 11,501 
$ 8,841 
$ 19,926 
$ 14,891 
Condensed consolidated statements of comprehensive income (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Pla-Fit Holdings, LLC [Member]
 
 
 
 
Net income including noncontrolling interests
$ 11,614 
$ 8,950 
$ 20,152 
$ 15,209 
Other comprehensive loss, net:
 
 
 
 
Losses on interest rate swaps
 
 
 
(92)
Unrealized loss on interest rate cap
(161)
 
(940)
 
Foreign currency translation adjustments
(54)
(3)
47 
(3)
Total other comprehensive loss, net
(215)
(3)
(893)
(95)
Total comprehensive income including noncontrolling interests
11,399 
8,947 
19,259 
15,114 
Less: total comprehensive income attributable to noncontrolling interests
113 
109 
226 
318 
Total comprehensive income attributable to Pla-Fit Holdings, LLC
$ 11,286 
$ 8,838 
$ 19,033 
$ 14,796 
Condensed consolidated statements of cash flows (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Pla-Fit Holdings, LLC [Member]
 
 
Cash flows from operating activities:
 
 
Net income
$ 20,152 
$ 15,209 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
Depreciation and amortization
16,184 
15,043 
Amortization of deferred financing costs
686 
690 
Amortization of favorable leases and asset retirement obligations
235 
163 
Deferred tax benefit
21 
Provision for bad debts
546 
37 
Gain on disposal of property and equipment
(67)
 
Unrealized gain on interest rate swaps
 
(139)
Loss on extinguishment of debt
 
4,697 
Changes in operating assets and liabilities, excluding effects of acquisitions and dispositions:
 
 
State income taxes
431 
(1,530)
Accounts receivable
7,352 
8,280 
Notes receivable and due from related parties
1,958 
1,293 
Inventory
2,245 
671 
Other assets and other current assets
(587)
(181)
Accounts payable and accrued expenses
(13,164)
(16,587)
Other liabilities and other current liabilities
42 
(101)
Equipment deposits
(3,870)
2,164 
Deferred revenue
3,230 
1,864 
Deferred rent
1,242 
662 
Net cash provided by operating activities
36,636 
32,237 
Cash flows from investing activities:
 
 
Additions to property and equipment
(8,538)
(3,808)
Acquisition of franchises
 
(38,638)
Proceeds from sale of property and equipment
67 
 
Net cash used in investing activities
(8,471)
(42,446)
Cash flows from financing activities:
 
 
Proceeds from issuance of long-term debt
120,000 
390,000 
Principal payments on capital lease obligations
(258)
(800)
Repayment of long-term debt
(2,250)
(183,850)
Payment of deferred financing and other debt-related costs
(1,698)
(7,785)
Distributions to variable interest entities
 
(358)
Distributions to members
(155,088)
(186,970)
Net cash (used in) provided by financing activities
(39,294)
10,237 
Effects of exchange rate changes on cash and cash equivalents
(14)
Net (decrease) increase in cash and cash equivalents
(11,143)
31 
Cash and cash equivalents, beginning of period
43,291 
31,267 
Cash and cash equivalents, end of period
32,148 
31,298 
Supplemental cash flow information:
 
 
Net cash paid for income taxes
288 
932 
Cash paid for interest
10,826 
7,294 
Non-cash investing activities:
 
 
Non-cash consideration for acquisition of franchises
 
$ 3,000 
Condensed consolidated statement of changes in equity (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands
Pla-Fit Holdings, LLC [Member]
USD ($)
Members' Equity [Member]
Pla-Fit Holdings, LLC [Member]
USD ($)
Accumulated Other Comprehensive Loss [Member]
Pla-Fit Holdings, LLC [Member]
USD ($)
Noncontrolling Interests in Variable Interest Entities [Member]
Pla-Fit Holdings, LLC [Member]
USD ($)
Beginning balance at Dec. 31, 2014
$ 151,749 
$ 146,156 
$ (636)
$ 6,229 
Net income
20,152 
19,926 
 
226 
Other comprehensive loss
(893)
 
(893)
 
Distributions to members
(155,088)
(155,088)
 
 
Ending balance at Jun. 30, 2015
15,920 
10,994 
(1,529)
6,455 
Beginning balance at Mar. 31, 2015
 
 
 
 
Net income
11,614 
 
 
 
Other comprehensive loss
(215)
 
 
 
Ending balance at Jun. 30, 2015
$ 15,920 
 
 
 
Organization

(1) Organization

Planet Fitness, Inc. (the “Corporation”) was formed as a Delaware corporation on March 16, 2015. The Corporation was formed for the purpose of completing an initial public offering (the “IPO”) and related transactions in order to carry on the business of Pla-Fit Holdings, LLC and its subsidiaries (the “Company”). As of August 5, 2015, in connection with the Reclassification transaction discussed below, the Corporation became the sole managing member and holder of 100% of the voting power of the Company. The Company owns 100% of Planet Intermediate, LLC which has no operations but is the 100% owner of Planet Fitness Holdings, LLC, a franchisor and operator of fitness centers. With respect to the Corporation, the Company and Planet Intermediate, LLC, each entity owns nothing other than the respective entity below it in the corporate structure and each entity has no other material operations, assets, or liabilities.

As described in more detail in Note 4, on August 11, 2015, the Corporation completed an IPO pursuant to which the Corporation and selling stockholders sold an aggregate of 15,525,000 shares of Class A common stock at a public offering price of $16.00 per share. The Corporation received $156.9 million in proceeds, net of underwriting discounts and commissions, which were used to purchase limited liability company units (“Holdings Units”) from existing holders (“Continuing LLC Owners”) of interests in the Company, at a purchase price per unit equal to the IPO price per share of Class A common stock, less underwriting discounts and commissions.

Subsequent to the IPO and the related recapitalization transactions described in Note 4, we are a holding company and our principal asset is a controlling equity interest in the Company. As the sole managing member of the Company, we operate and control all of the business and affairs of the Company, and through the Company and its subsidiaries, conduct our business. As a result, beginning in the third quarter of 2015, we will consolidate the Company’s financial results and report a non-controlling interest related to the portion of Holdings Units not owned by us.

(1) Business organization

Pla-Fit Holdings, LLC (the “Company”), through its subsidiaries, is a franchisor and operator of fitness centers, with more than 7.2 million members and 1,014 owned and franchised locations (referred to as stores) in 47 states, Puerto Rico and Canada as of June 30, 2015.

The Company serves as the reporting entity for its various subsidiaries that operate three distinct lines of business:

 

  Licensing and selling franchises under the Planet Fitness trade name.

 

  Owning and operating fitness centers under the Planet Fitness trade name.

 

  Selling fitness-related equipment to franchisee-owned stores.

The results of the Company have been consolidated with Matthew Michael Realty LLC (“MMR”) and PF Melville LLC (“PF Melville”) based on the determination that the Company is the primary beneficiary with respect to these variable interest entities (“VIEs”). These entities are real estate holding companies that derive a majority of their financial support from the Company through lease agreements.

Planet Fitness, Inc. (the “Corporation”) was formed as a Delaware corporation on March 16, 2015 for the purpose of facilitating an initial public offering and other related transactions in order to carry on the business of the Company and its subsidiaries. The Company owns 100% of Planet Intermediate, LLC which has no operations but is the 100% owner of Planet Fitness Holdings, LLC. With respect to the Corporation, the Company and Planet Intermediate, LLC, each entity owns nothing other than the respective entity below it in the corporate structure and each entity has no other material operations, assets, or liabilities.

On August 11, 2015, the Corporation completed an initial public offering (“IPO”) pursuant to which the Corporation and selling stockholders sold an aggregate of 15,525,000 shares of Class A common stock at a public offering price of $16.00 per share. The Corporation received $156.9 million in proceeds, net of underwriting discounts and commissions, which were used to purchase Holdings Units from the Company at a price equal to the IPO price per share of $16.00 less underwriting discounts and commissions. Subsequent to the IPO and related recapitalization transactions that occurred in connection with the IPO, the Corporation is the sole managing member of the Company and, although it has a minority economic interest in the Company, it has the sole voting power in, and controls the management of, the Company.

Summary of significant accounting policies

(2) Summary of significant accounting policies

Basis of Accounting

The balance sheet as of June 30, 2015 is unaudited. The balance sheets have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Separate statements of operations, comprehensive income, changes in stockholder’s equity, and cash flows have not been presented in the financial statements because there have been no activities in this entity since its inception through June 30, 2015. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of March 16, 2015 and related notes included in our final prospectus for the Corporation’s IPO dated August 6, 2015 filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended (the “Securities Act”), with the SEC (the “Prospectus”)Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year.

(2) Summary of significant accounting policies

 

(a) Basis of presentation and consolidation

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, these interim financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented have been reflected. All significant intercompany balances and transactions have been eliminated in consolidation.

The condensed consolidated financial statements as of and for the three and six months ended June 30, 2015 and 2014 are unaudited. The condensed consolidated balance sheet as of December 31, 2014 has been derived from the audited financial statements at that date but does not include all of the disclosures required by U.S. GAAP. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2014 and related notes included in our final prospectus for the Corporation’s IPO dated August 6, 2015 filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended (the “Securities Act”), with the SEC (the “Prospectus”)Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year.

The Company also consolidates entities in which it has a controlling financial interest, the usual condition of which is ownership of a majority voting interest. The Company also considers for consolidation certain interests where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a VIE, is required to be consolidated by its primary beneficiary. The primary beneficiary of a VIE is considered to possess the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the rights to receive benefits from the VIE that are significant to it. The principal entities in which the Company possesses a variable interest include franchise entities and certain other entities. The Company is not deemed to be the primary beneficiary for Planet Fitness franchise entities. Therefore, these entities are not consolidated. See note 3 for further information related to the Company’s VIEs.

 

(b) Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Significant areas where estimates and judgments are relied upon by management in the preparation of the consolidated financial statements include revenue recognition, valuation of assets and liabilities in connection with acquisitions, valuation of equity-based compensation awards, and the evaluation of the recoverability of goodwill and long-lived assets, including intangible assets.

 

(c) Fair Value

The table below presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014:

 

     Total fair
value at
June 30,

2015
     Quoted
prices
in active
markets

(Level 1)
     Significant
other
observable
inputs

(Level 2)
     Significant
unobservable
inputs
(Level 3)
 

Interest rate caps

   $ 771       $ —         $ 771       $ —     
     Total fair
value at
December 31,
2014
     Quoted
prices
in active
markets
(Level 1)
     Significant
other
observable
inputs
(Level 2)
     Significant
unobservable
inputs
(Level 3)
 

Interest rate caps

   $ 1,711       $ —         $ 1,711       $ —     

 

(d) Equity-based compensation

The Company has granted equity awards to employees in the form of Class M Units. During the six months ended June 30, 2015, there were forfeitures of 21.053 Class M units. There were no grants or exercises of Class M Units during the six months ended June 30, 2015. During the six months ended June 30, 2015, the Company modified the vesting terms of 10.737 outstanding Class M Units such that those units are fully vested and eligible to receive distributions following a liquidity event. There were no other changes in awards during the six months ended June 30, 2015. As a result, the total vested awards outstanding at June 30, 2015 was 110.315. The amount of total unrecognized compensation cost related to all awards under this plan was $5,459 as of June 30, 2015.

(e) Recent accounting pronouncements

The FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs in April 2015. This guidance requires reporting entities present debt issuance costs as a direct deduction from the carrying amount of the related debt liability. The guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity must apply this guidance retrospectively to all prior periods presented in the financial statements. The Company expects the only impact of the adoption of this guidance to be on balance sheet presentation.

The FASB issued ASU No. 2015-02, Income Statement—Consolidation in February 2015. This guidance affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Specifically, the guidance 1) modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, 2) eliminates the presumption that a general partner should consolidate a limited partnership, 3) affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships, and 4) provides a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. The guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

The FASB issued ASU No. 2014-09, Revenue from Contracts with Customers in September 2014. This guidance requires that an entity recognize revenue to depict the transfer of a promised good or service to its customers in an amount that reflects consideration to which the entity expects to be entitled in exchange for such transfer. This guidance also specifies accounting for certain costs incurred by an entity to obtain or fulfill a contract with a customer and provides for enhancements to revenue specific disclosures intended to allow users of the financial statements to clearly understand the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with its customers. In July 2015, the FASB voted to defer the effective date of the new revenue recognition standard by one year, which would result in this guidance becoming effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 for public companies. The Company is currently evaluating the impact, if any, the adoption of this guidance will have on its consolidated financial statements.

Stockholders' equity
Stockholders' equity

(3) Stockholders’ equity

As of June 30, 2015, the Corporation was authorized to issue 1,000 shares of Common Stock, par value $0.01 per share, 100 shares of which were issued and outstanding at June 30, 2015 and March 16, 2015.

Subsequent events
Subsequent events

(4) Subsequent events

The recapitalization transactions

We refer to the Merger, Reclassification and entry into the Exchange agreement, each as described below, as the “recapitalization transactions.” The Merger was effected pursuant to a merger agreement by and among the Corporation and Planet Fitness Holdings, L.P. and the recapitalization transactions were effected pursuant to a recapitalization agreement by and among the Corporation, the Company, the Continuing LLC Owners and holders of interests in Planet Fitness Holdings, L.P. (“Direct TSG Investors”).

 

Merger

Prior to the Merger, the Direct TSG Investors held interests in Planet Fitness Holdings, L.P., a predecessor entity to the Corporation that held indirect interests in the Company. Planet Fitness Holdings, L.P. was formed in October 2014 and had no material assets, liabilities or operations, other than as a holding company owning indirect interests in the Company. The Direct TSG Investors consist of investment funds affiliated with TSG Consumer Partners, LLC (“TSG”). Pursuant to a merger agreement dated June 22, 2015, upon the pricing of the IPO, Planet Fitness Holdings, L.P. merged with and into the Corporation, and the interests in Planet Fitness Holdings, L.P. held by the Direct TSG Investors were converted into 26,106,930 shares of Class A common stock of the Corporation. We refer to this as the “Merger.” All shares of Class A common stock have both voting and economic rights in Planet Fitness, Inc.

The Merger was effected on August 5, 2015, prior to the time our Class A common stock was registered under the Exchange Act and prior to the completion of the IPO.

Reclassification

The equity interests of the Company previously consisted of three different classes of limited liability company units (Class M, Class T and Class O). Prior to the completion of the IPO, the limited liability company agreement of the Company was amended and restated to, among other things, modify its capital structure to create a single new class of units, the Holdings Units. We refer to this capital structure modification as the “Reclassification.”

The Direct TSG Investors’ indirect interest in the Company was held through Planet Fitness Holdings, L.P. As a result, following the Merger, in which Planet Fitness Holdings, L.P. merged with and into the Corporation, the Direct TSG Investors’ indirect interests in the Company are held through the Corporation. Therefore, the Holdings Units received in the Reclassification were allocated to: (1) the Continuing LLC Owners based on their existing interests in the Company; and (2) the Corporation to the extent of the Direct TSG Investors’ indirect interest in the Company. The number of Holdings Units allocated to the Corporation in the Reclassification was equal to the number of shares of Class A common stock that the Direct TSG Investors received in the Merger (on a one-for-one basis).

The Reclassification was effected on August 5, 2015, prior to the time our Class A common stock was registered under the Exchange Act and prior to the completion of the IPO.

Following the Merger and the Reclassification, the Corporation issued to Continuing LLC Owners 72,602,810 shares of Class B common stock, one share of Class B common stock for each Holdings Unit they held. The shares of Class B common stock have no rights to dividends or distributions, whether in cash or stock, but entitle the holder to one vote per share on matters presented to stockholders of the Corporation. Holdings Units are held by the Continuing LLC Owners and by the Corporation. The Continuing LLC Owners consist of investment funds affiliated with TSG and certain employees and directors.

Pursuant to the LLC agreement that went into effect at the time of the Reclassification (“New LLC Agreement”), the Corporation was designated as the sole managing member of the Company. Accordingly, the Corporation has the right to determine when distributions will be made by the Company to its members and the amount of any such distributions (subject to the requirements with respect to the tax distributions described below). If the Corporation authorizes a distribution by the Company, the distribution will be made to the members of the Company pro rata in accordance with the percentages of their respective Holdings Units.

The holders of Holdings Units will incur U.S. federal, state and local income taxes on their allocable share of any taxable income of the Company (as calculated pursuant to the New LLC Agreement). Net profits and net losses of the Company will generally be allocated to its members pursuant to the New LLC Agreement pro rata in accordance with the percentages of their respective Holdings Units. The New LLC Agreement will provide for cash distributions to the holders of Holdings Units for purposes of funding their tax obligations in respect of the income of the Company that is allocated to them, to the extent other distributions from the Company for the relevant year have been insufficient to cover such liability. Generally, these tax distributions will be computed based on the taxable income of the Company allocable to the holders of Holdings Units multiplied by an assumed, combined tax rate equal to the maximum rate applicable to an individual or corporation resident in San Francisco, California (taking into account the non-deductibility of certain expenses and the character of our income).

Exchange agreement

Following the Merger and the Reclassification, the Corporation and the Continuing LLC Owners entered into an exchange agreement under which the Continuing LLC Owners (or certain permitted transferees thereof) have the right, from time to time and subject to the terms of the exchange agreement, to exchange their Holdings Units, along with a corresponding number of shares of Class B common stock, for shares of Class A common stock on a one-for-one basis, subject to customary conversion rate adjustments for stock splits, stock dividends, reclassifications and similar transactions. As a Continuing LLC Owner exchanges Holdings Units, along with a corresponding number of shares of Class B common stock, for shares of Class A common stock, the number of Holdings Units held by the Corporation will be correspondingly increased as it acquires the exchanged Holdings Units and cancels a corresponding number of shares of Class B common stock.

Offering transactions

In connection with the completion of the IPO on August 11, 2015, in order to facilitate the disposition of equity interests in the Company held by Continuing LLC Owners affiliated with TSG, the Corporation used the net proceeds received to purchase issued and outstanding Holdings Units from these Continuing LLC Owners that they received in the Reclassification. In connection with the IPO, the Corporation purchased 10,491,055 issued and outstanding Holdings Units from these Continuing LLC Owners for an aggregate of $156.9 million. As such, the Corporation acquired a minority equity percentage of the Holdings Units held by the Continuing LLC Owners issued to them in the Reclassification, which is in addition to the 26,106,930 Holdings Units that the Corporation acquired in the Reclassification on a one-for-one basis in relation to the number of shares of Class A common stock issued to the Direct TSG Investors in the Merger. Accordingly, following the IPO, the Corporation holds 36,597,985 Holdings Units that is equal to the number of shares of Class A common stock that were issued to the Direct TSG Investors and investors in the IPO. The Direct TSG Investors, who did not receive Holdings Units in the Reclassification but received shares of Class A common stock in the Merger, sold 5,033,945 shares of Class A common stock in the IPO as selling stockholders. All expenses of the IPO, other than underwriter discounts and commissions, were borne by the Company or reimbursed by the Company to the Corporation.

As a result of the recapitalization transactions and the offering transactions, upon completion of the IPO:

 

    the investors in the IPO collectively own 15,525,000 shares of our Class A common, representing 15.7% of the voting power in the Corporation and, through the Corporation, 15.7% of the economic interest in the Company;

 

    the Direct TSG Investors own 21,072,985 shares of our Class A common stock, representing 21.4% of the voting power in the Corporation and, through the Corporation, 21.4% of the economic interest in the Company; and

 

    the Continuing LLC Owners collectively hold 62,111,755 Holdings Units, representing 62.9% of the economic interest in the Company and 62,111,755 shares of our Class B common stock, representing 62.9% of the voting power in the Corporation.

 

Tax receivable agreements

The Corporation’s acquisition of Holdings Units in connection with the IPO and future and certain past exchanges of Holdings Units for shares of our Class A common stock (or cash) are expected to produce and have produced favorable tax attributes. In connection with the IPO, the Corporation entered into two tax receivable agreements. Under the first of those agreements, the Corporation generally is required to pay to the Continuing LLC Owners 85% of the applicable cash savings, if any, in U.S. federal and state income tax that the Corporation is deemed to realize as a result of certain tax attributes of their Holdings Units sold to the Corporation (or exchanged in a taxable sale) and that are created as a result of (i) the sales of their Holdings Units for shares of Class A common stock and (ii) tax benefits attributable to payments made under the tax receivable agreement (including imputed interest). Under the second tax receivable agreement, the Corporation generally is required to pay to the Direct TSG Investors 85% of the amount of cash savings, if any, that the Corporation is deemed to realize as a result of the tax attributes of the Holdings Units held in respect of the Direct TSG Investors’ interest in the Corporation, which resulted from the Direct TSG Investors’ purchase of interests in the Company in 2012, and certain other tax benefits. Under both agreements, the Corporation generally retains the benefit of the remaining 15% of the applicable tax savings.

Variable interest entities (Pla-Fit Holdings, LLC [Member])
Variable interest entities

(3) Variable interest entities

The carrying values of VIEs included in the consolidated financial statements as of June 30, 2015 and December 31, 2014 are as follows:

 

     June 30, 2015      December 31, 2014  
     Assets      Liabilities      Assets      Liabilities  

PF Melville

   $ 3,604       $ —         $ 3,479       $ —     

MMR

   $ 2,851         —           2,750         —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 6,455       $ —         $ 6,229       $ —     
  

 

 

    

 

 

    

 

 

    

 

 

 

The Company also has variable interests in certain franchisees mainly through the guarantee of certain debt and lease agreements as well as financing provided by the Company and by certain related parties to franchisees. The Company’s maximum obligation, as a result of its guarantees of leases and debt, is approximately $2,270 and $2,896 as of June 30, 2015 and December 31, 2014, respectively.

The amount of the Company’s maximum obligation represents a loss that the Company could incur from the variability in credit exposure without consideration of possible recoveries through insurance or other means. In addition, the amount bears no relation to the ultimate settlement anticipated to be incurred from the Company’s involvement with these entities, which is estimated at $0.

Acquisition (Pla-Fit Holdings, LLC [Member])
Acquisition

(4) Acquisition

On March 31, 2014, the Company purchased certain assets from one of its franchisees, including eight franchisee-owned stores in New York, for consideration of $42,931, including a cash payment of $39,931 and a $3,000 discount to be applied to future equipment purchases. The $3,000 equipment discount has been recorded as deferred revenue by the Company and is being recognized as future equipment sales are made by the Company to the franchisee. In addition, as a result of the transaction, the Company incurred a loss on unfavorable reacquired franchise rights of $1,293, which has been reflected in other operating costs in the statement of operations. The loss incurred reduced the net purchase price to $41,638. The Company financed the purchase through its credit facility. The purchase consideration was allocated as follows:

 

     Amount  

Fixed assets

   $ 7,634   

Reacquired franchise rights

     8,950   

Membership relationships

     5,882   

Favorable leases, net

     700   

Other assets

     35   

Goodwill

     19,771   

Liabilities assumed, including deferred revenues

     (1,334
  

 

 

 
   $ 41,638   
  

 

 

 
National advertising fund (Pla-Fit Holdings, LLC [Member])
National advertising fund

(5) National advertising fund

On July 26, 2011, the Company established Planet Fitness NAF, LLC (“NAF”) for the creation and development of marketing, advertising, and related programs and materials for all Planet Fitness stores. On behalf of the NAF, the Company collects 2% of gross monthly membership billings from franchisees, in accordance with the provisions of the franchise agreements. The Company also contributes 2% of monthly membership billings from stores owned by the Company to the NAF. The use of amounts received by NAF is restricted to advertising, product development, public relations, merchandising, and administrative expenses and programs to increase sales and further enhance the public reputation of the Planet Fitness brand. The Company consolidates and reports all assets and liabilities held by the NAF. Amounts received by NAF are reported as restricted assets and restricted liabilities within current assets and current liabilities on the condensed consolidated balance sheets. The Company provides administrative services to NAF and charges NAF a fee for providing those services. These services include accounting services, information technology, data processing, product development, legal and administrative support, and other operating expenses, which amounted to $355 and $278 for the three months ending June 30, 2015 and 2014, respectively, and $684 and $555 for the six months ending June 30, 2015 and 2014, respectively. The fees paid to the Company by NAF are included in the condensed consolidated statements of operations as a reduction in general and administrative expense, where the expense incurred by the Company was initially recorded.

Property and equipment (Pla-Fit Holdings, LLC [Member])
Property and equipment

(6) Property and equipment

Property and equipment as of June 30, 2015 and December 31, 2014 consists of the following:

 

     June 30, 2015      December 31, 2014  

Land

   $ 910       $ 910   

Equipment

     24,934         22,137   

Leasehold improvements

     34,705         27,361   

Buildings and improvements

     5,107         5,119   

Vehicles

     155         155   

Other

     4,570         4,250   

Construction in progress

     2,204         5,375   
  

 

 

    

 

 

 
     72,585         65,307   

Accumulated Depreciation

     (20,684      (15,728
  

 

 

    

 

 

 

Total

   $ 51,901       $ 49,579   
  

 

 

    

 

 

 

The Company recorded depreciation expense of $2,710 and $2,460 for the three months ended June 30, 2015 and 2014, respectively, and $5,643 and $4,122 for the six months ended June 30, 2015 and 2014, respectively.

Goodwill and intangible assets (Pla-Fit Holdings, LLC [Member])
Goodwill and intangible assets

(7) Goodwill and intangible assets

A summary of goodwill and intangible assets at June 30, 2015 and December 31, 2014 is as follows:

 

June 30, 2015

   Weighted
average
amortization
period (years)
     Gross
carrying
amount
     Accumulated
amortization
     Net carrying
Amount
 

Customer relationships

     11.1       $ 171,782       $ (49,437    $ 122,345   

Noncompete agreements

     5.0         14,500         (7,679      6,821   

Favorable leases

     7.5         2,935         (1,016      1,919   

Order backlog

     0.4         3,400         (3,400      —     

Reacquired franchise rights

     5.8         8,950         (1,945      7,005   
     

 

 

    

 

 

    

 

 

 
        201,567         (63,477      138,090   

Indefinite-lived intangible:

           

Trade and brand names

     N/A         146,300         —           146,300   
     

 

 

    

 

 

    

 

 

 

Total intangible assets

      $ 347,867       $ (63,477    $ 284,390   
     

 

 

    

 

 

    

 

 

 

Goodwill

      $ 176,981       $ —         $ 176,981   
     

 

 

    

 

 

    

 

 

 

December 31, 2014

   Weighted
average
amortization
period (years)
     Gross
carrying
amount
     Accumulated
amortization
     Net carrying
Amount
 

Customer relationships

     11.1       $ 171,782       $ (41,130    $ 130,652   

Noncompete agreements

     5.0         14,500         (6,229      8,271   

Favorable leases

     7.5         2,935         (779      2,156   

Order backlog

     0.4         3,400         (3,400      —     

Reacquired franchise rights

     5.8         8,950         (1,167      7,783   
     

 

 

    

 

 

    

 

 

 
        201,567         (52,705      148,862   

Indefinite-lived intangible:

           

Trade and brand names

     N/A         146,300         —           146,300   
     

 

 

    

 

 

    

 

 

 

Total intangible assets

      $ 347,867       $ (52,705    $ 295,162   
     

 

 

    

 

 

    

 

 

 

Goodwill

      $ 176,981       $ —         $ 176,981   
     

 

 

    

 

 

    

 

 

 

The Company determined that no impairment charges were required during any periods presented.

Long-term debt (Pla-Fit Holdings, LLC [Member])
Long-term debt

(8) Long-term debt

Long-term debt as of June 30, 2015 and December 31, 2014 consists of the following:

 

     June 30, 2015      December 31, 2014  

Term loan B requires quarterly installments plus interest through the term of the loan, maturing March 31, 2021. Outstanding borrowings bear interest at LIBOR or base rate (as defined) plus a margin at the election of the borrower (4.75% at June 30, 2015 and December 31, 2014)

   $ 504,825       $ 387,075   

Revolving credit line, requires interest only payments through the term of the loan, maturing March 31, 2019. Outstanding borrowings bear interest at LIBOR or base rate (as defined) plus a margin at the election of the borrower (4.25% at June 30, 2015 and December 31, 2014)

     —           —     
  

 

 

    

 

 

 

Total debt

   $ 504,825       $ 387,075   

Current portion of long-term debt and line of credit

     5,100         3,900   
  

 

 

    

 

 

 

Long-term debt, net of current portion

   $ 499,725       $ 383,175   
  

 

 

    

 

 

 

On March 31, 2014, the Company entered into a five-year $430,000 credit facility with a consortium of banks and lenders to refinance its existing indebtedness, as well as to provide funds for working capital, capital expenditures, acquisitions, a $173,900 dividend and general corporate purposes. The facility consists of a $390,000 Term Loan and a $40,000 Revolving Credit Facility. On March 31, 2015, the Company amended this credit facility to increase the Term Loan to $510,000 to fund a cash dividend of $140,000. The unused portion of the Revolving Credit Facility as of June 30, 2015 was $40,000. The Term Loan calls for quarterly principal installment payments of $1,275 through March 2021. Capitalized debt issuance costs associated with the outstanding term loan and revolving credit line totaled $9,930 and are reflected in other long-term assets in the Company’s condensed consolidated balance sheet, net of accumulated amortization of $1,623 as of June 30, 2015.

The credit facility requires the Company to meet certain financial covenants, which the Company was in compliance with as of June 30, 2015. The facility is secured by all of the Company’s assets, excluding the assets attributable to the consolidated VIEs (see note 3).

Future annual principal payments of long-term debt as of June 30, 2015 are as follows:

 

     Amount  

Remainder of 2015

   $ 2,550   

2016

     5,100   

2017

     5,100   

2018

     5,100   

2019

     5,100   

Thereafter

     481,875   
  

 

 

 

Total

   $ 504,825   
  

 

 

 

Derivative instruments and hedging activities (Pla-Fit Holdings, LLC [Member])
Derivative instruments and hedging activities

(9) Derivative instruments and hedging activities

The Company utilizes interest-rate-related derivative instruments to manage its exposure related to changes in interest rates on its variable-rate debt instruments. The Company does not enter into derivative instruments for any purpose other than cash flow hedging. The Company does not speculate using derivative instruments.

By using derivative financial instruments to hedge exposures to changes in interest rates, the Company exposes itself to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is an asset, the counterparty owes the Company, which creates credit risk for the Company. When the fair value of a derivative contract is a liability, the Company owes the counterparty and, therefore, the Company is not exposed to the counterparty’s credit risk in those circumstances. The Company minimizes counterparty credit risk in derivative instruments by entering into transactions with high-quality counterparties whose credit rating is higher than A1/A+ at the inception of the derivative transaction. The derivative instruments entered into by the Company do not contain credit-risk-related contingent features.

Market risk is the adverse effect on the value of a derivative instrument that results from a change in interest rates. The market risk associated with interest-rate contracts is managed by establishing and monitoring parameters that limit the types and degree of market risk that may be undertaken.

The Company assesses interest rate risk by continually identifying and monitoring changes in interest rate exposures that may adversely impact expected future cash flows and by evaluating hedging opportunities. The Company monitors interest rate risk attributable to both the Company’s outstanding or forecasted debt obligations as well as the Company’s offsetting hedge positions.

As of June 30, 2014, the total notional amount of the Company’s outstanding LIBOR based interest-rate swap agreements that were entered into to manage fluctuations in cash flows resulting from changes in the benchmark interest rate of LIBOR was $59,774. It was determined on March 31, 2014 that the hedge was ineffective and expense of $92 was reclassified from other comprehensive income to interest expense. The interest rate swaps were terminated in September 2014.

In September 2014, the Company entered into a series of interest rate caps. As of June 30, 2015, the Company had interest rate cap agreements with notional amounts of $194,000 outstanding that were entered into in order to hedge LIBOR greater than 1.5%.

The interest rate cap balances of $771 and $1,711 were recorded within other assets in the condensed consolidated balance sheets as of June 30, 2015 and December 31, 2014, respectively. These amounts have been measured at fair value and are considered to be a Level 2 fair value measurement. The Company recorded a reduction to the value of its interest rate caps of $940 within other comprehensive loss during the six months ended June 30, 2015.

 

As of June 30, 2015, the Company does not expect to reclassify any amounts included in accumulated other comprehensive income into earnings during the next 12 months. Transactions and events expected to occur over the next twelve months that will necessitate reclassifying these derivatives’ loss to earnings include the re-pricing of variable-rate debt.

Deferred revenue (Pla-Fit Holdings, LLC [Member])
Deferred revenue

(10) Deferred revenue

The summary set forth below represents the balances in deferred revenue as of June 30, 2015 and December 31, 2014:

 

     June 30, 2015      December 31, 2014  

Prepaid membership fees

   $ 4,757       $ 5,382   

Enrollment fees

     1,727         1,692   

Equipment discount

     2,534         2,689   

Annual membership fees

     7,789         5,696   

Area development and franchise fees

     10,298         8,420   
  

 

 

    

 

 

 

Total deferred revenue

     27,105         23,879   

Long-term portion of deferred revenue

     9,308         9,330   
  

 

 

    

 

 

 

Current portion of deferred revenue

   $ 17,797       $ 14,549   
  

 

 

    

 

 

 

Equipment deposits received in advance of delivery, placement and customer acceptance as of June 30, 2015 and December 31, 2014 were $2,805 and $6,675, respectively.

Related party transactions (Pla-Fit Holdings, LLC [Member])
Related party transactions

(11) Related party transactions

Amounts due from members as of June 30, 2015 and December 31, 2014 relate to reimbursements for taxes owed and paid by the Company on their behalf.

 

     June 30, 2015      December 31, 2014  

Accounts receivable – related entities

   $ 17       $ 11   

Accounts receivable – members

     627         1,130   
  

 

 

    

 

 

 
     644         1,141   

Due from related parties, current portion

     644         1,141   
  

 

 

    

 

 

 

Due from related parties, net of current portion

   $ —         $ —     
  

 

 

    

 

 

 

Activity with entities considered to be related parties is summarized below.

 

     Three months ended June 30,      Six months ended June 30,  
     2015      2014      2015      2014  

Franchise revenue

   $ 305       $ 201       $ 567       $ 346   

Equipment revenue

     47         650         102         1,319   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenue from related parties

   $ 352       $ 851       $ 669       $ 1,665   
  

 

 

    

 

 

    

 

 

    

 

 

 

The Company paid management fees to TSG totaling $250 during each of the three months ended June 30, 2015 and 2014, and $515 and $580 for the six months ended June 30, 2015 and 2014, respectively.

Income taxes (Pla-Fit Holdings, LLC [Member])
Income taxes

(12) Income taxes

The Company’s effective tax rate during all periods presented is significantly lower than the U.S. federal statutory tax rate of 35% due to its election to be treated as a pass-through entity for U.S. federal income taxes and for most state income taxes. Net deferred tax liabilities of $396 and $343 as of June 30, 2015 and December 31, 2014, respectively, relate primarily to the tax effects of temporary differences for acquired intangible assets. Deferred tax assets as of June 30, 2015 and December 31, 2014 are immaterial and included in other assets in the accompanying condensed consolidated balance sheets. The Company has net operating loss carryforwards related to its Canada operations of approximately $176, which begin to expire in 2034. It is more likely than not that the results of future operations will generate sufficient taxable income to realize the deferred tax assets.

As of June 30, 2015, the total liability related to uncertain tax positions is $300. The Company recognizes interest accrued and penalties, if applicable, related to unrecognized tax benefits in income tax expense. Interest and penalties for the six months ending June 30, 2015 were not material.

Commitments and contingencies (Pla-Fit Holdings, LLC [Member])
Commitments and contingencies

(13) Commitments and contingencies

The Company rents equipment, office, and warehouse space at various locations in the United States and Canada under noncancelable operating leases. Rental expense was $4,511 and $4,109 for the three months ending June 30, 2015 and 2014, respectively, and $8,971 and $7,451 for the six months ending June 30, 2015 and 2014, respectively. Approximate annual future commitments under noncancelable operating leases as of June 30, 2015 are as follows:

 

     Amount  

Remainder of 2015

   $ 6,651   

2016

     13,245   

2017

     12,730   

2018

     11,773   

2019

     10,379   

Thereafter

     54,088   
  

 

 

 

Total

   $ 108,866   
  

 

 

 

From time to time, and in the ordinary course of business, the Company is subject to various claims, charges, and litigation, such as employment-related claims and slip and fall cases. The Company is not currently aware of any legal proceedings or claims that the Company believes will have, individually or in the aggregate, a material adverse effect on the Company’s financial position or result of operations.

As of June 30, 2015, the Company had advertising purchase commitments of approximately $16,168, including commitments made by the NAF. In addition, the Company had open purchase orders of approximately $11,310 primarily related to equipment to be sold to franchisees.

The Company’s maximum obligation, as a result of its guarantees of leases and debt, is approximately $2,270 and $2,896 as of June 30, 2015 and December 31, 2014, respectively.

During 2013, the Company adopted the 2013 Performance Incentive Plan, which calls for pre-determined bonuses to be paid to employees of the Company upon a future liquidity event of the Company, including an initial public offering that exceeds a predetermined threshold. As of June 30, 2015, awards outstanding under this plan total $1,707. Given the uncertainty of the underlying event, no compensation expense has been recorded as of June 30, 2015 related to this plan. The bonuses will be recorded in the third quarter of 2015 as a result of the IPO that was completed on August 11, 2015.

Segments (Pla-Fit Holdings, LLC [Member])
Segments

(14) Segments

The Company has three reportable segments: (i) Franchise; (ii) Corporate-owned stores; and (iii) Equipment.

The Company’s operations are organized and managed by type of products and services and segment information is reported accordingly. The Company’s chief operating decision maker (the “CODM”) is its Chief Executive Officer. The CODM reviews financial performance and allocates resources by reportable segment. There have been no operating segments aggregated to arrive at the Company’s reportable segments.

The Franchise segment includes operations related to the Company’s franchising business in the United States, Puerto Rico, and Canada. The Corporate-owned stores segment includes operations with respect to all Corporate-owned stores throughout the United States and Canada. The Equipment segment includes the sale of equipment to franchisee-owned stores.

 

The accounting policies of the reportable segments are the same as those described in note 2. The Company evaluates the performance of its segments and allocates resources to them based on revenue and earnings before interest, taxes, depreciation, and amortization, referred to as Segment EBITDA. Revenues for all operating segments include only transactions with unaffiliated customers and include no intersegment revenues.

The tables below summarize the financial information for the Company’s reportable segments for the three and six months ended June 30, 2015 and 2014. The “Corporate and other” column, as it relates to Segment EBITDA, primarily includes corporate overhead costs, such as payroll and related benefit costs and professional services which are not directly attributable to any individual segment.

 

     Three months ended June 30,      Six months ended June 30,  
     2015      2014      2015      2014  

Revenue

           

Franchise segment

   $ 21,879       $ 18,427       $ 43,636       $ 34,927   

Corporate-owned stores segment

     24,975         22,428         48,521         40,131   

Equipment segment

     32,099         21,842         63,718         45,233   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenue

   $ 78,953       $ 62,697       $ 155,875       $ 120,291   
  

 

 

    

 

 

    

 

 

    

 

 

 

Franchise segment revenue includes franchise revenue and commission income.

Franchise revenue includes revenues generated from franchisee-owned stores in Puerto Rico of $105 and $84 for the three months ended June 30, 2015 and 2014, respectively, and $205 and $161 for the six months ended June 30, 2015 and 2014, respectively. The Company’s Canadian corporate-owned stores generated revenue of $705 and $0 for the three months ended June 30, 2015 and 2014, respectively, and $1,008 and $0 for the six months ended June 30, 2015 and 2014, respectively. Equipment revenue includes revenues from equipment sold in Puerto Rico of $0 and $583 for both the three and six months ended June 30, 2015 and 2014, respectively. All other revenue for the periods presented was generated from corporate-owned and franchisee-owned stores within the United States. Franchise revenue includes revenue generated from placement services of $2,298 and $1,507 for the three months ended June 30, 2015 and 2014, respectively, and $4,272 and $3,098 for the six months ended June 30, 2015 and 2014, respectively. Included in selling, general and administrative expenses were costs related to placement services of $756 and $510 for the three months ended June 30, 2015 and 2014, respectively, and $1,511 and $1,007 for the six months ended June 30, 2015 and 2014, respectively.

 

     Three months ended June 30,      Six months ended June 30,  
     2015      2014      2015      2014  

Segment EBITDA

           

Franchise

   $ 17,704       $ 14,579       $ 31,282       $ 27,432   

Corporate-owned stores

     9,288         8,342         17,086         14,784   

Equipment

     7,242         4,461         14,005         9,479   

Corporate and other

     (7,658      (4,433      (14,030      (9,051
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Segment EBITDA

   $ 26,576       $ 22,949       $ 48,343       $ 42,644   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

The following table reconciles total Segment EBITDA to income before taxes:

 

     Three months ended June 30,      Six months ended June 30,  
     2015      2014      2015      2014  

Total Segment EBITDA

   $ 26,576       $ 22,949       $ 48,343       $ 42,644   

Less:

           

Depreciation and amortization

     7,983         8,507         16,184         15,043   

Other expense

     (76      (263      (812      (642
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from operations

     18,669         14,705         32,971         28,243   

Interest expense, net

     (6,560      (5,046      (11,316      (11,608

Other expense

     (76      (263      (812      (642
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income taxes

   $ 12,033       $ 9,396       $ 20,843       $ 15,993   
  

 

 

    

 

 

    

 

 

    

 

 

 

The following table summarizes the Company’s assets by reportable segment:

 

     June 30, 2015      December 31, 2014  

Franchise

   $ 145,266       $ 183,964   

Corporate-owned stores

     170,635         161,183   

Equipment

     251,183         250,578   

Unallocated

     12,606         13,551   
  

 

 

    

 

 

 

Total consolidated assets

   $ 579,690       $ 609,276   
  

 

 

    

 

 

 

The table above includes $3,829 and $2,011 of long-lived assets located in the Company’s corporate-owned stores in Canada as of June 30, 2015 and December 31, 2014, respectively.

The following table summarizes the Company’s goodwill by reportable segment:

 

     June 30,
2015
     December 31,
2014
 

Franchise

   $ 16,938       $ 16,938   

Corporate-owned stores

     67,377         67,377   

Equipment

     92,666         92,666   
  

 

 

    

 

 

 

Consolidated goodwill

   $ 176,981       $ 176,981   
  

 

 

    

 

 

 

Corporate-owned and franchisee-owned stores (Pla-Fit Holdings, LLC [Member])
Corporate-owned and franchisee-owned stores

(15) Corporate-owned and franchisee-owned stores

The following table shows changes in our corporate-owned and franchisee-owned stores for the three and six months ended June 30, 2015 and 2014:

 

     Three months ended June 30,      Six months ended June 30,  
     2015      2014      2015      2014  

Franchisee-owned stores:

           

Stores operated at beginning of period

     919         732         863         704   

New stores opened

     37         33         96         69   

Stores debranded, sold or consolidated(1)

     —           (1      (3      (9
  

 

 

    

 

 

    

 

 

    

 

 

 

Stores operated at end of period

     956         764         956         764   
  

 

 

    

 

 

    

 

 

    

 

 

 

Corporate-owned stores:

           

Stores operated at beginning of period

     57         53         55         45   

New stores opened

     1         1         3         1   

Stores acquired from franchisees

     —           —           —           8   
  

 

 

    

 

 

    

 

 

    

 

 

 

Stores operated at end of period

     58         54         58         54   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total stores:

           

Stores operated at beginning of period

     976         785         918         749   

New stores opened

     38         34         99         70   

Stores debranded, sold or consolidated(1)

     —           (1      (3      (1
  

 

 

    

 

 

    

 

 

    

 

 

 

Stores operated at end of period

     1,014         818         1,014         818   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) The term “debrand” refers to a franchisee-owned store whose right to use the Planet Fitness brand and marks has been terminated due to non-compliance with brand standards in accordance with the franchise agreement. We retain the right to prevent debranded stores from continuing to operate as fitness centers. The term “consolidation” refers to the combination of a franchisee’s store with another store located in close proximity owned by the same franchisee, with our prior approval. This often coincides with an enlargement, re-equipment and/or refurbishment of the remaining store.
Summary of significant accounting policies (Policies)

Basis of Accounting

The balance sheet as of June 30, 2015 is unaudited. The balance sheets have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Separate statements of operations, comprehensive income, changes in stockholder’s equity, and cash flows have not been presented in the financial statements because there have been no activities in this entity since its inception through June 30, 2015. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of March 16, 2015 and related notes included in our final prospectus for the Corporation’s IPO dated August 6, 2015 filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended (the “Securities Act”), with the SEC (the “Prospectus”)Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year.

(a) Basis of presentation and consolidation

The accompanying unaudited interim condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Accordingly, these interim financial statements do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the results of operations, financial position and cash flows for the periods presented have been reflected. All significant intercompany balances and transactions have been eliminated in consolidation.

The condensed consolidated financial statements as of and for the three and six months ended June 30, 2015 and 2014 are unaudited. The condensed consolidated balance sheet as of December 31, 2014 has been derived from the audited financial statements at that date but does not include all of the disclosures required by U.S. GAAP. These interim condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2014 and related notes included in our final prospectus for the Corporation’s IPO dated August 6, 2015 filed pursuant to Rule 424(b) under the Securities Act of 1933, as amended (the “Securities Act”), with the SEC (the “Prospectus”)Operating results for the interim periods are not necessarily indicative of the results that may be expected for the full year.

The Company also consolidates entities in which it has a controlling financial interest, the usual condition of which is ownership of a majority voting interest. The Company also considers for consolidation certain interests where the controlling financial interest may be achieved through arrangements that do not involve voting interests. Such an entity, known as a VIE, is required to be consolidated by its primary beneficiary. The primary beneficiary of a VIE is considered to possess the power to direct the activities of the VIE that most significantly impact its economic performance and has the obligation to absorb losses or the rights to receive benefits from the VIE that are significant to it. The principal entities in which the Company possesses a variable interest include franchise entities and certain other entities. The Company is not deemed to be the primary beneficiary for Planet Fitness franchise entities. Therefore, these entities are not consolidated. See note 3 for further information related to the Company’s VIEs.

(b) Use of estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Although these estimates are based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results. Significant areas where estimates and judgments are relied upon by management in the preparation of the consolidated financial statements include revenue recognition, valuation of assets and liabilities in connection with acquisitions, valuation of equity-based compensation awards, and the evaluation of the recoverability of goodwill and long-lived assets, including intangible assets.

(c) Fair Value

The table below presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014:

 

     Total fair
value at
June 30,

2015
     Quoted
prices
in active
markets

(Level 1)
     Significant
other
observable
inputs

(Level 2)
     Significant
unobservable
inputs
(Level 3)
 

Interest rate caps

   $ 771       $ —         $ 771       $ —     
     Total fair
value at
December 31,
2014
     Quoted
prices
in active
markets
(Level 1)
     Significant
other
observable
inputs
(Level 2)
     Significant
unobservable
inputs
(Level 3)
 

Interest rate caps

   $ 1,711       $ —         $ 1,711       $ —     

(d) Equity-based compensation

The Company has granted equity awards to employees in the form of Class M Units. During the six months ended June 30, 2015, there were forfeitures of 21.053 Class M units. There were no grants or exercises of Class M Units during the six months ended June 30, 2015. During the six months ended June 30, 2015, the Company modified the vesting terms of 10.737 outstanding Class M Units such that those units are fully vested and eligible to receive distributions following a liquidity event. There were no other changes in awards during the six months ended June 30, 2015. As a result, the total vested awards outstanding at June 30, 2015 was 110.315. The amount of total unrecognized compensation cost related to all awards under this plan was $5,459 as of June 30, 2015.

(e) Recent accounting pronouncements

The FASB issued ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs in April 2015. This guidance requires reporting entities present debt issuance costs as a direct deduction from the carrying amount of the related debt liability. The guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity must apply this guidance retrospectively to all prior periods presented in the financial statements. The Company expects the only impact of the adoption of this guidance to be on balance sheet presentation.

The FASB issued ASU No. 2015-02, Income Statement—Consolidation in February 2015. This guidance affects reporting entities that are required to evaluate whether they should consolidate certain legal entities. Specifically, the guidance 1) modifies the evaluation of whether limited partnerships and similar legal entities are variable interest entities or voting interest entities, 2) eliminates the presumption that a general partner should consolidate a limited partnership, 3) affects the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related party relationships, and 4) provides a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. The guidance is effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

The FASB issued ASU No. 2014-09, Revenue from Contracts with Customers in September 2014. This guidance requires that an entity recognize revenue to depict the transfer of a promised good or service to its customers in an amount that reflects consideration to which the entity expects to be entitled in exchange for such transfer. This guidance also specifies accounting for certain costs incurred by an entity to obtain or fulfill a contract with a customer and provides for enhancements to revenue specific disclosures intended to allow users of the financial statements to clearly understand the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with its customers. In July 2015, the FASB voted to defer the effective date of the new revenue recognition standard by one year, which would result in this guidance becoming effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2017 for public companies. The Company is currently evaluating the impact, if any, the adoption of this guidance will have on its consolidated financial statements.

Summary of significant accounting policies (Tables) (Pla-Fit Holdings, LLC [Member])
Summary of Company's Assets and Liabilities Measured at Fair Value on Recurring Basis

The table below presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014:

 

     Total fair
value at
June 30, 2015
     Quoted
prices

in active
markets
(Level 1)
     Significant
other
observable
inputs

(Level 2)
     Significant
unobservable
inputs

(Level 3)
 

Interest rate caps

   $ 771       $ —         $ 771       $ —     
     Total fair
value at
December 31,
2014
     Quoted
prices
in active
markets
(Level 1)
     Significant
other
observable
inputs
(Level 2)
     Significant
unobservable
inputs

(Level 3)
 

Interest rate caps

   $ 1,711       $ —         $ 1,711       $ —     
Variable interest entities (Tables) (Pla-Fit Holdings, LLC [Member])
Carrying Value of Variable Interest Entities of Consolidated Financial Statements

The carrying values of VIEs included in the consolidated financial statements as of June 30, 2015 and December 31, 2014 are as follows:

 

     June 30, 2015      December 31, 2014  
     Assets      Liabilities      Assets      Liabilities  

PF Melville

   $ 3,604       $ —         $ 3,479       $ —     

MMR

   $ 2,851         —           2,750         —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   $ 6,455       $ —         $ 6,229       $ —     
  

 

 

    

 

 

    

 

 

    

 

 

 

Acquisition (Tables) (Pla-Fit Holdings, LLC [Member])
Schedule of Allocated Purchase Consideration

The purchase consideration was allocated as follows:

 

     Amount  

Fixed assets

   $ 7,634   

Reacquired franchise rights

     8,950   

Membership relationships

     5,882   

Favorable leases, net

     700   

Other assets

     35   

Goodwill

     19,771   

Liabilities assumed, including deferred revenues

     (1,334
  

 

 

 
   $ 41,638   
  

 

 

 
Property and equipment (Tables) (Pla-Fit Holdings, LLC [Member])
Schedule of Property and Equipments

Property and equipment as of June 30, 2015 and December 31, 2014 consists of the following:

 

     June 30, 2015      December 31, 2014  

Land

   $ 910       $ 910   

Equipment

     24,934         22,137   

Leasehold improvements

     34,705         27,361   

Buildings and improvements

     5,107         5,119   

Vehicles

     155         155   

Other

     4,570         4,250   

Construction in progress

     2,204         5,375   
  

 

 

    

 

 

 
     72,585         65,307   

Accumulated Depreciation

     (20,684      (15,728
  

 

 

    

 

 

 

Total

   $ 51,901       $ 49,579   
  

 

 

    

 

 

 
Goodwill and intangible assets (Tables) (Pla-Fit Holdings, LLC [Member])
Summary of Goodwill and Intangible Assets

A summary of goodwill and intangible assets at June 30, 2015 and December 31, 2014 is as follows:

 

June 30, 2015

   Weighted
average
amortization
period (years)
     Gross
carrying
amount
     Accumulated
amortization
     Net carrying
Amount
 

Customer relationships

     11.1       $ 171,782       $ (49,437    $ 122,345   

Noncompete agreements

     5.0         14,500         (7,679      6,821   

Favorable leases

     7.5         2,935         (1,016      1,919   

Order backlog

     0.4         3,400         (3,400      —     

Reacquired franchise rights

     5.8         8,950         (1,945      7,005   
     

 

 

    

 

 

    

 

 

 
        201,567         (63,477      138,090   

Indefinite-lived intangible:

           

Trade and brand names

     N/A         146,300         —           146,300   
     

 

 

    

 

 

    

 

 

 

Total intangible assets

      $ 347,867       $ (63,477    $ 284,390   
     

 

 

    

 

 

    

 

 

 

Goodwill

      $ 176,981       $ —         $ 176,981   
     

 

 

    

 

 

    

 

 

 

December 31, 2014

   Weighted
average
amortization
period (years)
     Gross
carrying
amount
     Accumulated
amortization
     Net carrying
Amount
 

Customer relationships

     11.1       $ 171,782       $ (41,130    $ 130,652   

Noncompete agreements

     5.0         14,500         (6,229      8,271   

Favorable leases

     7.5         2,935         (779      2,156   

Order backlog

     0.4         3,400         (3,400      —     

Reacquired franchise rights

     5.8         8,950         (1,167      7,783   
     

 

 

    

 

 

    

 

 

 
        201,567         (52,705      148,862   

Indefinite-lived intangible:

           

Trade and brand names

     N/A         146,300         —           146,300   
     

 

 

    

 

 

    

 

 

 

Total intangible assets

      $ 347,867       $ (52,705    $ 295,162   
     

 

 

    

 

 

    

 

 

 

Goodwill

      $ 176,981       $ —         $ 176,981   
     

 

 

    

 

 

    

 

 

 
Long-term debt (Tables) (Pla-Fit Holdings, LLC [Member])

Long-term debt as of June 30, 2015 and December 31, 2014 consists of the following:

 

     June 30, 2015      December 31, 2014  

Term loan B requires quarterly installments plus interest through the term of the loan, maturing March 31, 2021. Outstanding borrowings bear interest at LIBOR or base rate (as defined) plus a margin at the election of the borrower (4.75% at June 30, 2015 and December 31, 2014)

   $ 504,825       $ 387,075   

Revolving credit line, requires interest only payments through the term of the loan, maturing March 31, 2019. Outstanding borrowings bear interest at LIBOR or base rate (as defined) plus a margin at the election of the borrower (4.25% at June 30, 2015 and December 31, 2014)

     —           —     
  

 

 

    

 

 

 

Total debt

   $ 504,825       $ 387,075   

Current portion of long-term debt and line of credit

     5,100         3,900   
  

 

 

    

 

 

 

Long-term debt, net of current portion

   $ 499,725       $ 383,175   
  

 

 

    

 

 

 

Future annual principal payments of long-term debt as of June 30, 2015 are as follows:

 

     Amount  

Remainder of 2015

   $ 2,550   

2016

     5,100   

2017

     5,100   

2018

     5,100   

2019

     5,100   

Thereafter

     481,875   
  

 

 

 

Total

   $ 504,825   
  

 

 

 

Deferred revenue (Tables) (Pla-Fit Holdings, LLC [Member])
Schedule of Deferred Revenue

The summary set forth below represents the balances in deferred revenue as of June 30, 2015 and December 31, 2014:

 

     June 30, 2015      December 31, 2014  

Prepaid membership fees

   $ 4,757       $ 5,382   

Enrollment fees

     1,727         1,692   

Equipment discount

     2,534         2,689   

Annual membership fees

     7,789         5,696   

Area development and franchise fees

     10,298         8,420   
  

 

 

    

 

 

 

Total deferred revenue

     27,105         23,879   

Long-term portion of deferred revenue

     9,308         9,330   
  

 

 

    

 

 

 

Current portion of deferred revenue

   $ 17,797       $ 14,549   
  

 

 

    

 

 

 
Related party transactions (Tables) (Pla-Fit Holdings, LLC [Member])

Amounts due from members as of June 30, 2015 and December 31, 2014 relate to reimbursements for taxes owed and paid by the Company on their behalf.

 

     June 30, 2015      December 31, 2014  

Accounts receivable – related entities

   $ 17       $ 11   

Accounts receivable – members

     627         1,130   
  

 

 

    

 

 

 
     644         1,141   

Due from related parties, current portion

     644         1,141   
  

 

 

    

 

 

 

Due from related parties, net of current portion

   $ —         $ —     
  

 

 

    

 

 

 

Activity with entities considered to be related parties is summarized below.

 

     Three months ended June 30,      Six months ended June 30,  
     2015      2014      2015      2014  

Franchise revenue

   $ 305       $ 201       $ 567       $ 346   

Equipment revenue

     47         650         102         1,319   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenue from related parties

   $ 352       $ 851       $ 669       $ 1,665   
  

 

 

    

 

 

    

 

 

    

 

 

 
Commitments and contingencies (Tables) (Pla-Fit Holdings, LLC [Member])
Schedule of Future Commitments Under Noncancelable Operating Leases

Approximate annual future commitments under noncancelable operating leases as of June 30, 2015 are as follows:

 

     Amount  

Remainder of 2015

   $ 6,651   

2016

     13,245   

2017

     12,730   

2018

     11,773   

2019

     10,379   

Thereafter

     54,088   
  

 

 

 

Total

   $ 108,866   
  

 

 

 
Segments (Tables) (Pla-Fit Holdings, LLC [Member])

The tables below summarize the financial information for the Company’s reportable segments for the three and six months ended June 30, 2015 and 2014.  

     Three months ended June 30,      Six months ended June 30,  
         2015              2014          2015      2014  

Revenue

           

Franchise segment

   $ 21,879       $ 18,427       $ 43,636       $ 34,927   

Corporate-owned stores segment

     24,975         22,428         48,521         40,131   

Equipment segment

     32,099         21,842         63,718         45,233   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total revenue

   $ 78,953       $ 62,697       $ 155,875       $ 120,291   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

     Three months ended June 30,      Six months ended June 30,  
         2015              2014                2015                  2014        

Segment EBITDA

           

Franchise

   $ 17,704       $ 14,579       $ 31,282       $ 27,432   

Corporate-owned stores

     9,288         8,342         17,086         14,784   

Equipment

     7,242         4,461         14,005         9,479   

Corporate and other

     (7,658      (4,433      (14,030      (9,051
  

 

 

    

 

 

    

 

 

    

 

 

 

Total Segment EBITDA

   $ 26,576       $ 22,949       $ 48,343       $ 42,644   
  

 

 

    

 

 

    

 

 

    

 

 

 

The following table reconciles total Segment EBITDA to income before taxes:

 

     Three months ended June 30,      Six months ended June 30,  
     2015      2014      2015      2014  

Total Segment EBITDA

   $ 26,576       $ 22,949       $ 48,343       $ 42,644   

Less:

           

Depreciation and amortization

     7,983         8,507         16,184         15,043   

Other expense

     (76      (263      (812      (642
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from operations

     18,669         14,705         32,971         28,243   

Interest expense, net

     (6,560      (5,046      (11,316      (11,608

Other expense

     (76      (263      (812      (642
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income taxes

   $ 12,033       $ 9,396       $ 20,843       $ 15,993   
  

 

 

    

 

 

    

 

 

    

 

 

 

The following table summarizes the Company’s assets by reportable segment:

 

     June 30, 2015      December 31, 2014  

Franchise

   $ 145,266       $ 183,964   

Corporate-owned stores

     170,635         161,183   

Equipment

     251,183         250,578   

Unallocated

     12,606         13,551   
  

 

 

    

 

 

 

Total consolidated assets

   $ 579,690       $ 609,276   
  

 

 

    

 

 

 

The following table summarizes the Company’s goodwill by reportable segment:

 

     June 30,
2015
     December 31,
2014
 

Franchise

   $ 16,938       $ 16,938   

Corporate-owned stores

     67,377         67,377   

Equipment

     92,666         92,666   
  

 

 

    

 

 

 

Consolidated goodwill

   $ 176,981       $ 176,981   
  

 

 

    

 

 

 

Corporate-owned and franchisee-owned stores (Tables) (Pla-Fit Holdings, LLC [Member])
Schedule of Changes in Corporate-owned and Franchisee-owned Stores

The following table shows changes in our corporate-owned and franchisee-owned stores for the three and six months ended June 30, 2015 and 2014:

 

     Three months ended June 30,      Six months ended June 30,  
     2015      2014      2015      2014  

Franchisee-owned stores:

           

Stores operated at beginning of period

     919         732         863         704   

New stores opened

     37         33         96         69   

Stores debranded, sold or consolidated(1)

     —           (1      (3      (9
  

 

 

    

 

 

    

 

 

    

 

 

 

Stores operated at end of period

     956         764         956         764   
  

 

 

    

 

 

    

 

 

    

 

 

 

Corporate-owned stores:

           

Stores operated at beginning of period

     57         53         55         45   

New stores opened

     1         1         3         1   

Stores acquired from franchisees

     —           —           —           8   
  

 

 

    

 

 

    

 

 

    

 

 

 

Stores operated at end of period

     58         54         58         54   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total stores:

           

Stores operated at beginning of period

     976         785         918         749   

New stores opened

     38         34         99         70   

Stores debranded, sold or consolidated(1)

     —           (1      (3      (1
  

 

 

    

 

 

    

 

 

    

 

 

 

Stores operated at end of period

     1,014         818         1,014         818   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(1) The term “debrand” refers to a franchisee-owned store whose right to use the Planet Fitness brand and marks has been terminated due to non-compliance with brand standards in accordance with the franchise agreement. We retain the right to prevent debranded stores from continuing to operate as fitness centers. The term “consolidation” refers to the combination of a franchisee’s store with another store located in close proximity owned by the same franchisee, with our prior approval. This often coincides with an enlargement, re-equipment and/or refurbishment of the remaining store.
Organization - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
6 Months Ended 0 Months Ended
Jun. 30, 2015
Jun. 30, 2015
Planet Intermediate, LLC [Member]
Jun. 30, 2015
Planet Fitness Holdings, LLC [Member]
Aug. 5, 2015
Subsequent Event [Member]
Aug. 5, 2015
Subsequent Event [Member]
Planet Intermediate, LLC [Member]
Aug. 5, 2015
Subsequent Event [Member]
Planet Fitness Holdings, LLC [Member]
Aug. 11, 2015
Subsequent Event [Member]
IPO [Member]
Class A Common Stock [Member]
Aug. 11, 2015
Subsequent Event [Member]
IPO [Member]
Class A Common Stock [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
 
 
 
 
 
 
 
 
Date of formation
Mar. 16, 2015 
 
 
 
 
 
 
 
Percentage of voting power in connection with the reclassification
 
 
 
100.00% 
 
 
 
 
Percentage of ownership
 
100.00% 
100.00% 
 
100.00% 
100.00% 
 
 
Number of stock issued during period
 
 
 
 
 
 
15,525,000 
 
Initial public offering price per share
 
 
 
 
 
 
 
$ 16.00 
Proceeds from issuance initial public offering
 
 
 
 
 
 
$ 156.9 
 
Shareholders' Equity - Additional Information (Detail) (USD $)
Jun. 30, 2015
Mar. 16, 2015
Equity [Abstract]
 
 
Common stock, shares authorized
1,000 
1,000 
Common stock, par value
$ 0.01 
$ 0.01 
Common stock, shares issued
100 
100 
Common stock, shares outstanding
100 
100 
Subsequent Events - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended 0 Months Ended
Jun. 30, 2015
Mar. 16, 2015
Aug. 11, 2015
Subsequent Event [Member]
Aug. 11, 2015
Subsequent Event [Member]
Aug. 11, 2015
Subsequent Event [Member]
IPO [Member]
Aug. 11, 2015
Subsequent Event [Member]
IPO [Member]
Aug. 11, 2015
Subsequent Event [Member]
Class A Common Stock [Member]
IPO [Member]
Aug. 11, 2015
Subsequent Event [Member]
Class A Common Stock [Member]
IPO [Member]
Aug. 11, 2015
Subsequent Event [Member]
Class B Common Stock [Member]
IPO [Member]
Aug. 11, 2015
Subsequent Event [Member]
Holdings Units [Member]
Aug. 11, 2015
Direct TSG Investors [Member]
Subsequent Event [Member]
Class A Common Stock [Member]
Aug. 11, 2015
Direct TSG Investors [Member]
Subsequent Event [Member]
Class A Common Stock [Member]
IPO [Member]
Aug. 11, 2015
Direct TSG Investors [Member]
Subsequent Event [Member]
Class A Common Stock [Member]
IPO [Member]
Aug. 11, 2015
Continuing LLC Owners [Member]
Subsequent Event [Member]
Aug. 5, 2015
Continuing LLC Owners [Member]
Subsequent Event [Member]
Class B Common Stock [Member]
Jun. 22, 2015
Merger Agreement [Member]
Direct TSG Investors [Member]
Class A Common Stock [Member]
Subsequent Event [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares converted
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
26,106,930 
Common stock, shares issued
 
 
 
 
 
 
15,525,000 
 
 
 
5,033,945 
21,072,985 
 
 
72,602,810 
 
Number of units purchased
 
 
 
 
 
 
 
 
 
 
 
 
 
10,491,055 
 
 
Aggregate amount of units purchased
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 156.9 
 
 
Common stock, shares outstanding
100 
100 
 
 
 
 
 
 
62,111,755 
36,597,985 
 
 
 
 
 
 
Percentage of voting power
 
 
 
 
 
62.90% 
 
15.70% 
 
 
 
 
21.40% 
 
 
 
Percentage of economic interest
 
 
 
 
62.90% 
 
15.70% 
 
 
 
 
21.40% 
 
 
 
 
Number of units held by owners
 
 
 
 
 
62,111,755 
 
 
 
 
 
 
 
 
 
 
Applicable percentage of cash savings
 
 
 
85.00% 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of remaining tax savings
 
 
15.00% 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Organization - Additional Information (Detail) (USD $)
In Millions, except Share data, unless otherwise specified
6 Months Ended 0 Months Ended 0 Months Ended 6 Months Ended 0 Months Ended 6 Months Ended 0 Months Ended 6 Months Ended
Jun. 30, 2015
Aug. 11, 2015
IPO [Member]
Class A Common Stock [Member]
Subsequent Event [Member]
Aug. 11, 2015
IPO [Member]
Class A Common Stock [Member]
Subsequent Event [Member]
Jun. 30, 2015
Pla-Fit Holdings, LLC [Member]
Stores
States
Mar. 31, 2015
Pla-Fit Holdings, LLC [Member]
Stores
Dec. 31, 2014
Pla-Fit Holdings, LLC [Member]
Stores
Jun. 30, 2014
Pla-Fit Holdings, LLC [Member]
Stores
Mar. 31, 2014
Pla-Fit Holdings, LLC [Member]
Stores
Dec. 31, 2013
Pla-Fit Holdings, LLC [Member]
Stores
Aug. 11, 2015
Pla-Fit Holdings, LLC [Member]
IPO [Member]
Class A Common Stock [Member]
Subsequent Event [Member]
Aug. 11, 2015
Pla-Fit Holdings, LLC [Member]
IPO [Member]
Class A Common Stock [Member]
Subsequent Event [Member]
Jun. 30, 2015
Planet Intermediate, LLC [Member]
Aug. 5, 2015
Planet Intermediate, LLC [Member]
Subsequent Event [Member]
Jun. 30, 2015
Planet Fitness Holdings, LLC [Member]
Aug. 5, 2015
Planet Fitness Holdings, LLC [Member]
Subsequent Event [Member]
Jun. 30, 2015
Minimum [Member]
Pla-Fit Holdings, LLC [Member]
Members
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of members
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
7,200,000 
Number of owned and franchised locations
 
 
 
1,014 
976 
918 
818 
785 
749 
 
 
 
 
 
 
 
Number of states in which entity operates
 
 
 
47 
 
 
 
 
 
 
 
 
 
 
 
 
Date of formation
Mar. 16, 2015 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Percentage of ownership
 
 
 
 
 
 
 
 
 
 
 
100.00% 
100.00% 
100.00% 
100.00% 
 
Number of stock issued during period
 
15,525,000 
 
 
 
 
 
 
 
15,525,000 
 
 
 
 
 
 
Initial public offering price per share
 
 
$ 16.00 
 
 
 
 
 
 
 
$ 16.00 
 
 
 
 
 
Proceeds from issuance initial public offering
 
$ 156.9 
 
 
 
 
 
 
 
$ 156.9 
 
 
 
 
 
 
Summary of Significant Accounting Policies - Summary of Company's Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Pla-Fit Holdings, LLC [Member], Interest Rate Cap [Member], USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Interest rate caps
$ 771 
$ 1,711 
Significant Other Observable Inputs (Level 2) [Member]
 
 
Fair Value Assets And Liabilities Measured On Recurring Basis [Line Items]
 
 
Interest rate caps
$ 771 
$ 1,711 
Summary of Significant Accounting Policies - Additional Information (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, except Share data, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Significant Accounting Policies [Line Items]
 
Share based compensation, other changes in awards
Share based compensation, total vested awards outstanding
110 
Share based compensation, total unrecognized compensation
$ 5,459 
Class M Units [Member]
 
Significant Accounting Policies [Line Items]
 
Share based compensation, shares forfeited
21.053 
Share based compensation, shares granted
Share based compensation, shares exercised
Share based compensation, vesting terms modified
10.737 
Variable Interest Entities - Carrying Value of Variable Interest Entities of Consolidated Financial Statements (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Variable Interest Entity [Line Items]
 
 
Assets
$ 6,455 
$ 6,229 
Liabilities
PF Melville [Member]
 
 
Variable Interest Entity [Line Items]
 
 
Assets
3,604 
3,479 
Liabilities
MMR [Member]
 
 
Variable Interest Entity [Line Items]
 
 
Assets
2,851 
2,750 
Liabilities
$ 0 
$ 0 
Variable Interest Entities - Additional Information (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
Jun. 30, 2015
Dec. 31, 2014
Variable Interest Entity [Line Items]
 
 
Maximum loss exposure Involvement of estimated value
$ 0 
 
Maximum [Member]
 
 
Variable Interest Entity [Line Items]
 
 
Maximum obligation of guarantees of leases and debt
$ 2,270,000 
$ 2,896,000 
Acquisition - Additional Information (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, unless otherwise specified
0 Months Ended
Mar. 31, 2014
Jun. 30, 2015
Stores
Mar. 31, 2015
Stores
Dec. 31, 2014
Stores
Jun. 30, 2014
Stores
Mar. 31, 2014
Stores
Dec. 31, 2013
Stores
Business Acquisition [Line Items]
 
 
 
 
 
 
 
Number of franchise owned stores
 
1,014 
976 
918 
818 
785 
749 
Purchase price consideration before loss incurred
$ 42,931 
 
 
 
 
 
 
Business combination, cash payment
39,931 
 
 
 
 
 
 
Business combination, discount on purchase
3,000 
 
 
 
 
 
 
Deferred revenue
 
27,105 
 
23,879 
 
 
 
Business combination, purchase price
41,638 
 
 
 
 
 
 
New York [Member]
 
 
 
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
 
 
 
Number of franchise owned stores
 
 
 
 
 
Equipment Discount [Member]
 
 
 
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
 
 
 
Deferred revenue
3,000 
2,534 
 
2,689 
 
3,000 
 
Reacquired Franchise Rights [Member]
 
 
 
 
 
 
 
Business Acquisition [Line Items]
 
 
 
 
 
 
 
Loss on unfavorable reacquisition of franchise rights
$ 1,293 
 
 
 
 
 
 
Acquisition - Schedule of Allocated Purchase Consideration (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Mar. 31, 2014
Franchisee Acquisition [Member]
Mar. 31, 2014
Franchisee Acquisition [Member]
Reacquired Franchise Rights [Member]
Mar. 31, 2014
Franchisee Acquisition [Member]
Membership Relationships [Member]
Business Acquisition [Line Items]
 
 
 
 
 
Fixed assets
 
 
$ 7,634 
 
 
Intangible assets
 
 
 
8,950 
5,882 
Favorable leases, net
 
 
700 
 
 
Other assets
 
 
35 
 
 
Goodwill
176,981 
176,981 
19,771 
 
 
Liabilities assumed, including deferred revenues
 
 
(1,334)
 
 
Total
 
 
$ 41,638 
 
 
National Advertising Fund - Additional Information (Detail) (Pla-Fit Holdings, LLC [Member], Planet Fitness NAF, LLC [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Pla-Fit Holdings, LLC [Member] |
Planet Fitness NAF, LLC [Member]
 
 
 
 
Related Party Transaction [Line Items]
 
 
 
 
Percentage of franchise membership billing revenue
 
 
2.00% 
 
Initial administrative fees charged
$ 355 
$ 278 
$ 684 
$ 555 
Property and Equipment - Schedule of Property and Equipments (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
$ 72,585 
$ 65,307 
Accumulated Depreciation
(20,684)
(15,728)
Total
51,901 
49,579 
Land [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
910 
910 
Equipment [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
24,934 
22,137 
Leasehold Improvements [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
34,705 
27,361 
Buildings and Improvements [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
5,107 
5,119 
Vehicles [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
155 
155 
Other [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
4,570 
4,250 
Construction in Progress [Member]
 
 
Property, Plant and Equipment [Line Items]
 
 
Property and equipment, gross
$ 2,204 
$ 5,375 
Property and Equipment - Additional Information (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Pla-Fit Holdings, LLC [Member]
 
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
 
Depreciation expense
$ 2,710 
$ 2,460 
$ 5,643 
$ 4,122 
Goodwill and Intangible Assets - Summary of Goodwill and Intangible Assets (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, unless otherwise specified
6 Months Ended 12 Months Ended
Jun. 30, 2015
Dec. 31, 2014
Goodwill And Intangible Assets [Line Items]
 
 
Total intangible assets, Gross carrying amount
$ 347,867 
$ 347,867 
Gross carrying amount
201,567 
201,567 
Accumulated amortization
(63,477)
(52,705)
Net carrying Amount
138,090 
148,862 
Total intangible assets, Net carrying Amount
284,390 
295,162 
Goodwill, Gross carrying amount
176,981 
176,981 
Goodwill, Net carrying Amount
176,981 
176,981 
Trade and Brand Names [Member]
 
 
Goodwill And Intangible Assets [Line Items]
 
 
Indefinite-lived intangible, Net carrying Amount
146,300 
146,300 
Customer Relationships [Member]
 
 
Goodwill And Intangible Assets [Line Items]
 
 
Weighted average amortization period (years)
11 years 1 month 6 days 
11 years 1 month 6 days 
Gross carrying amount
171,782 
171,782 
Accumulated amortization
(49,437)
(41,130)
Net carrying Amount
122,345 
130,652 
Noncompete Agreements [Member]
 
 
Goodwill And Intangible Assets [Line Items]
 
 
Weighted average amortization period (years)
5 years 
5 years 
Gross carrying amount
14,500 
14,500 
Accumulated amortization
(7,679)
(6,229)
Net carrying Amount
6,821 
8,271 
Favorable Leases [Member]
 
 
Goodwill And Intangible Assets [Line Items]
 
 
Weighted average amortization period (years)
7 years 6 months 
7 years 6 months 
Gross carrying amount
2,935 
2,935 
Accumulated amortization
(1,016)
(779)
Net carrying Amount
1,919 
2,156 
Order Backlog [Member]
 
 
Goodwill And Intangible Assets [Line Items]
 
 
Weighted average amortization period (years)
4 months 24 days 
4 months 24 days 
Gross carrying amount
3,400 
3,400 
Accumulated amortization
(3,400)
(3,400)
Reacquired Franchise Rights [Member]
 
 
Goodwill And Intangible Assets [Line Items]
 
 
Weighted average amortization period (years)
5 years 9 months 18 days 
5 years 9 months 18 days 
Gross carrying amount
8,950 
8,950 
Accumulated amortization
(1,945)
(1,167)
Net carrying Amount
$ 7,005 
$ 7,783 
Goodwill and Intangible Assets - Additional Information (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
6 Months Ended 12 Months Ended
Jun. 30, 2015
Dec. 31, 2014
Pla-Fit Holdings, LLC [Member]
 
 
Goodwill And Intangible Assets [Line Items]
 
 
Impairment charges
$ 0 
$ 0 
Long-term Debt - Schedule of Long-term Debt (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Debt Instrument [Line Items]
 
 
Total debt
$ 504,825 
$ 387,075 
Current portion of long-term debt and line of credit
5,100 
3,900 
Long-term debt, net of current portion
499,725 
383,175 
Term Loan B [Member]
 
 
Debt Instrument [Line Items]
 
 
Total debt
$ 504,825 
$ 387,075 
Long-term Debt - Schedule of Long-term Debt (Parenthetical) (Detail) (Pla-Fit Holdings, LLC [Member])
6 Months Ended 12 Months Ended
Jun. 30, 2015
Dec. 31, 2014
Term Loan B [Member]
 
 
Debt Instrument [Line Items]
 
 
Total rate - base plus spread
4.75% 
4.75% 
Debt instrument maturity date
Mar. 31, 2021 
Mar. 31, 2021 
Revolving Credit Facility [Member]
 
 
Debt Instrument [Line Items]
 
 
Total rate - base plus spread
4.25% 
4.25% 
Debt instrument maturity date
Mar. 31, 2019 
Mar. 31, 2019 
Long-term Debt - Additional Information (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
3 Months Ended 6 Months Ended 12 Months Ended 6 Months Ended 12 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Jun. 30, 2015
Jun. 30, 2015
Term Loan B [Member]
Dec. 31, 2014
Term Loan B [Member]
Mar. 31, 2015
Term Loan B [Member]
Mar. 31, 2014
Term Loan B [Member]
Jun. 30, 2015
Revolving Credit Facility [Member]
Dec. 31, 2014
Revolving Credit Facility [Member]
Mar. 31, 2014
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
Credit facility expiration period
 
5 years 
 
 
 
 
 
 
 
 
Credit facility maximum borrowing capacity
 
$ 430,000,000 
 
 
 
$ 510,000,000 
$ 390,000,000 
 
 
$ 40,000,000 
Funds used to pay dividend
140,000,000 
173,900,000 
 
 
 
 
 
 
 
 
Unused portion of credit facility
 
 
 
 
 
 
 
40,000,000 
 
 
Credit facility quarterly principal installment payment
 
 
 
1,275,000 
 
 
 
 
 
 
Debt instrument maturity date
 
 
 
Mar. 31, 2021 
Mar. 31, 2021 
 
 
Mar. 31, 2019 
Mar. 31, 2019 
 
Capitalized debt issuance costs
 
 
9,930,000 
 
 
 
 
 
 
 
Accumulated amortization, net
 
 
$ 1,623,000 
 
 
 
 
 
 
 
Long-term Debt - Schedule of Future Annual Payments of Long-term Debt (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Pla-Fit Holdings, LLC [Member]
 
 
Debt Instrument [Line Items]
 
 
Remainder of 2015
$ 2,550 
 
2016
5,100 
 
2017
5,100 
 
2018
5,100 
 
2019
5,100 
 
Thereafter
481,875 
 
Total
$ 504,825 
$ 387,075 
Derivative Instruments and Hedging Activities - Additional Information (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
3 Months Ended 6 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2015
Jun. 30, 2014
Interest Rate Swap Agreements [Member]
Mar. 31, 2014
Interest Rate Swap Agreements [Member]
Accumulated Net Gain (Loss) from Cash Flow Hedges Including Portion Attributable to Noncontrolling Interest [Member]
Reclassification out of Accumulated Other Comprehensive Income [Member]
Jun. 30, 2015
Interest Rate Cap [Member]
Dec. 31, 2014
Interest Rate Cap [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
 
 
 
 
 
 
Derivative, amount of hedged item
 
 
$ 59,774,000 
 
 
 
Interest expense
 
 
 
92,000 
 
 
Derivative, notional amount
 
 
 
 
194,000,000 
 
Derivative, interest rate cap floor
 
 
 
 
1.50% 
 
Interest rate caps
 
 
 
 
771,000 
1,711,000 
Unrealized loss on interest rate cap
$ (161,000)
$ (940,000)
 
 
$ (940,000)
 
Deferred Revenue - Schedule of Deferred Revenue (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Mar. 31, 2014
Deferred Revenue Arrangement [Line Items]
 
 
 
Deferred revenue
$ 27,105 
$ 23,879 
 
Deferred revenue, long-term portion
9,308 
9,330 
 
Deferred revenue, current portion
17,797 
14,549 
 
Prepaid Membership Fees [Member]
 
 
 
Deferred Revenue Arrangement [Line Items]
 
 
 
Deferred revenue
4,757 
5,382 
 
Enrollment Fees [Member]
 
 
 
Deferred Revenue Arrangement [Line Items]
 
 
 
Deferred revenue
1,727 
1,692 
 
Equipment Discount [Member]
 
 
 
Deferred Revenue Arrangement [Line Items]
 
 
 
Deferred revenue
2,534 
2,689 
3,000 
Annual Membership Fees [Member]
 
 
 
Deferred Revenue Arrangement [Line Items]
 
 
 
Deferred revenue
7,789 
5,696 
 
Area Development and Franchise Fees [Member]
 
 
 
Deferred Revenue Arrangement [Line Items]
 
 
 
Deferred revenue
$ 10,298 
$ 8,420 
 
Deferred Revenue - Additional Information (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Pla-Fit Holdings, LLC [Member]
 
 
Deferred Revenue Arrangement [Line Items]
 
 
Equipment deposits
$ 2,805 
$ 6,675 
Related Party Transactions - Summary of Amounts Due From Members (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Pla-Fit Holdings, LLC [Member]
 
 
Related Party Transaction [Line Items]
 
 
Accounts receivable - related entities
$ 17 
$ 11 
Accounts receivable - members
627 
1,130 
Due from related parties
644 
1,141 
Due from related parties, current portion
644 
1,141 
Due from related parties, net of current portion
$ 0 
$ 0 
Related Party Transactions - Additional Information (Detail) (Pla-Fit Holdings, LLC [Member], Direct TSG Investors [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Pla-Fit Holdings, LLC [Member] |
Direct TSG Investors [Member]
 
 
 
 
Related Party Transaction [Line Items]
 
 
 
 
Payment for management fee
$ 250 
$ 250 
$ 515 
$ 580 
Income Taxes - Additional information (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, unless otherwise specified
6 Months Ended
Jun. 30, 2015
Dec. 31, 2014
Tax Credit Carryforward [Line Items]
 
 
Effective income tax rate reconciliation at federal statutory income tax rate
35.00% 
 
Net deferred tax liabilities
$ 396 
$ 343 
Total liability related to uncertain tax positions
300 
 
Canada [Member]
 
 
Tax Credit Carryforward [Line Items]
 
 
Net operating loss carryforwards
$ 176 
 
Operating loss carryforwards, expiration date
2034 
 
Commitments and Contingencies - Additional Information (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
3 Months Ended 6 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Advertising Purchase Commitment [Member]
Jun. 30, 2015
Equipment Purchase Commitment [Member]
Jun. 30, 2015
2013 Performance Incentive Plan [Member]
Jun. 30, 2015
Maximum [Member]
Dec. 31, 2014
Maximum [Member]
Commitment And Contingencies [Line Items]
 
 
 
 
 
 
 
 
 
Rental expense
$ 4,511,000 
$ 4,109,000 
$ 8,971,000 
$ 7,451,000 
 
 
 
 
 
Purchase commitments
 
 
 
 
16,168,000 
11,310,000 
 
 
 
Maximum obligation of guarantees of leases and debt
 
 
 
 
 
 
 
2,270,000 
2,896,000 
Performance incentive plan, award outstanding
 
 
 
 
 
 
1,707,000 
 
 
Compensation expense
 
 
 
 
 
 
$ 0 
 
 
Commitments and Contingencies - Schedule of Future Commitments Under Noncancelable Operating Leases (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Pla-Fit Holdings, LLC [Member]
 
Commitment And Contingencies [Line Items]
 
Remainder of 2015
$ 6,651 
2016
13,245 
2017
12,730 
2018
11,773 
2019
10,379 
Thereafter
54,088 
Total
$ 108,866 
Segments - Additional Information (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 31, 2014
Segment Reporting Information [Line Items]
 
 
 
 
 
Number of reportable segments
 
 
 
 
Description of factors used to identify entity's reportable segments
 
 
No operating segments aggregated to arrive at the Company's reportable segments 
 
 
Revenue
$ 78,953 
$ 62,697 
$ 155,875 
$ 120,291 
 
Selling, general and administrative expenses
12,354 
8,094 
26,492 
14,714 
 
Franchise [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenue
21,879 
18,427 
43,636 
34,927 
 
Franchise [Member] |
Placement Services [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenue
2,298 
1,507 
4,272 
3,098 
 
Selling, general and administrative expenses
756 
510 
1,511 
1,007 
 
Franchise [Member] |
Puerto Rico [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenue
105 
84 
205 
161 
 
Corporate-owned Stores [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenue
24,975 
22,428 
48,521 
40,131 
 
Corporate-owned Stores [Member] |
Canada [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenue
705 
1,008 
 
Long-lived assets
3,829 
 
3,829 
 
2,011 
Equipment [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenue
32,099 
21,842 
63,718 
45,233 
 
Equipment [Member] |
Puerto Rico [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenue
583 
583 
 
Intersegment Eliminations [Member]
 
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
 
Revenue
 
 
$ 0 
 
 
Segments - Summary of Financial Information for the Company's Reportable Segments (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Segment Reporting Information [Line Items]
 
 
 
 
Total revenue
$ 78,953 
$ 62,697 
$ 155,875 
$ 120,291 
Total Segment EBITDA
26,576 
22,949 
48,343 
42,644 
Franchise [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total revenue
21,879 
18,427 
43,636 
34,927 
Corporate-owned Stores [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total revenue
24,975 
22,428 
48,521 
40,131 
Equipment [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total revenue
32,099 
21,842 
63,718 
45,233 
Operating Segments [Member] |
Franchise [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Segment EBITDA
17,704 
14,579 
31,282 
27,432 
Operating Segments [Member] |
Corporate-owned Stores [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Segment EBITDA
9,288 
8,342 
17,086 
14,784 
Operating Segments [Member] |
Equipment [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Segment EBITDA
7,242 
4,461 
14,005 
9,479 
Corporate And Other Non Segment [Member]
 
 
 
 
Segment Reporting Information [Line Items]
 
 
 
 
Total Segment EBITDA
$ (7,658)
$ (4,433)
$ (14,030)
$ (9,051)
Segments - Reconciliation of Total Segment EBITDA to Income Before Taxes (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Jun. 30, 2015
Jun. 30, 2014
Pla-Fit Holdings, LLC [Member]
 
 
 
 
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
 
 
 
 
Total Segment EBITDA
$ 26,576 
$ 22,949 
$ 48,343 
$ 42,644 
Depreciation and amortization
7,983 
8,507 
16,184 
15,043 
Other expense
(76)
(263)
(812)
(642)
Income from operations
18,669 
14,705 
32,971 
28,243 
Interest expense, net
(6,560)
(5,046)
(11,316)
(11,608)
Other expense
(76)
(263)
(812)
(642)
Income before income taxes
$ 12,033 
$ 9,396 
$ 20,843 
$ 15,993 
Segments - Summary of Company's Assets by Reportable Segment (Detail) (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Mar. 16, 2015
Jun. 30, 2015
Pla-Fit Holdings, LLC [Member]
Dec. 31, 2014
Pla-Fit Holdings, LLC [Member]
Jun. 30, 2015
Pla-Fit Holdings, LLC [Member]
Operating Segments [Member]
Franchise [Member]
Dec. 31, 2014
Pla-Fit Holdings, LLC [Member]
Operating Segments [Member]
Franchise [Member]
Jun. 30, 2015
Pla-Fit Holdings, LLC [Member]
Operating Segments [Member]
Corporate-owned Stores [Member]
Dec. 31, 2014
Pla-Fit Holdings, LLC [Member]
Operating Segments [Member]
Corporate-owned Stores [Member]
Jun. 30, 2015
Pla-Fit Holdings, LLC [Member]
Operating Segments [Member]
Equipment [Member]
Dec. 31, 2014
Pla-Fit Holdings, LLC [Member]
Operating Segments [Member]
Equipment [Member]
Jun. 30, 2015
Pla-Fit Holdings, LLC [Member]
Unallocated [Member]
Dec. 31, 2014
Pla-Fit Holdings, LLC [Member]
Unallocated [Member]
Segment Reporting, Asset Reconciling Item [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
Total consolidated assets
$ 1 
$ 1 
$ 579,690 
$ 609,276 
$ 145,266 
$ 183,964 
$ 170,635 
$ 161,183 
$ 251,183 
$ 250,578 
$ 12,606 
$ 13,551 
Segments - Summary of Company's Goodwill by Reportable Segment (Detail) (Pla-Fit Holdings, LLC [Member], USD $)
In Thousands, unless otherwise specified
Jun. 30, 2015
Dec. 31, 2014
Segment Reporting, Other Significant Reconciling Item [Line Items]
 
 
Consolidated goodwill
$ 176,981 
$ 176,981 
Franchise [Member]
 
 
Segment Reporting, Other Significant Reconciling Item [Line Items]
 
 
Consolidated goodwill
16,938 
16,938 
Corporate-owned Stores [Member]
 
 
Segment Reporting, Other Significant Reconciling Item [Line Items]
 
 
Consolidated goodwill
67,377 
67,377 
Equipment [Member]
 
 
Segment Reporting, Other Significant Reconciling Item [Line Items]
 
 
Consolidated goodwill
$ 92,666 
$ 92,666 
Corporate-owned and Franchisee-owned Stores - Schedule of Changes in Corporate-owned and Franchisee-owned Stores (Detail) (Pla-Fit Holdings, LLC [Member])
3 Months Ended 6 Months Ended
Jun. 30, 2015
Stores
Jun. 30, 2014
Stores
Jun. 30, 2015
Stores
Jun. 30, 2014
Stores
Franchisor Disclosure [Line Items]
 
 
 
 
Stores operated at beginning of period
976 
785 
918 
749 
New stores opened
38 
34 
99 
70 
Stores debranded, sold or consolidated
 
(1)
(3)
(1)
Stores operated at end of period
1,014 
818 
1,014 
818 
Franchisee-Owned Stores [Member]
 
 
 
 
Franchisor Disclosure [Line Items]
 
 
 
 
Stores operated at beginning of period
919 
732 
863 
704 
New stores opened
37 
33 
96 
69 
Stores debranded, sold or consolidated
 
(1)
(3)
(9)
Stores operated at end of period
956 
764 
956 
764 
Corporate-Owned Stores [Member]
 
 
 
 
Franchisor Disclosure [Line Items]
 
 
 
 
Stores operated at beginning of period
57 
53 
55 
45 
New stores opened
Stores acquired from franchisees
 
 
 
Stores operated at end of period
58 
54 
58 
54