Planet Fitness (PLNT) has commenced a $280 million accelerated share repurchase (ASR) agreement with Citibank. Under the terms of this agreement, the company will disburse $280 million in cash to Citibank and will initially receive approximately 3.1 million shares of its Class A common stock, representing about 80% of the shares it anticipates repurchasing through the ASR Agreement.
This transaction is part of Planet Fitness's broader $500 million share repurchase authorization. As of June 13, 2024, prior to the completion of the ASR Agreement, approximately $355 million remained available for share repurchases under the 2022 Share Repurchase Program.
Additionally, the company has announced that its Board of Directors has approved a new share repurchase program of up to $500 million. This new program will take effect upon the completion of the ASR Agreement, succeeding the existing 2022 Share Repurchase Program.
For the fiscal year 2024, Planet Fitness now projects adjusted net income growth in the range of 4% to 6%, a revision from its previous estimate of 6% to 8%. The company also maintains its expectation that adjusted diluted net income per share will increase between 7% and 9%.
