$BTDG In The News: Fitness Stocks Round Out the

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Lee Adams
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$BTDG In The News: Fitness Stocks Round Out the "Reopening" Portfolio (PLNT, BTDG, NLS, PTON)

May 24, 2021 (OTC PR WIRE via COMTEX) -- The big trend defining markets right now as long-end interest rates crawl ever higher is the bias toward the value side of the market over the growth side.

Another way to state this same dynamic is this: a bias toward stocks that will show a jump in cash flows as society reopens upon our approach to a vaccine-induced state of Covid-19 herd immunity.

One of the most important areas in that constellation of concepts is the physical fitness space.

And one of the most important reasons to love this space at this point isn't simply that people will be returning to normal consumer behavior in the year ahead (versus the year behind), but because we have seen enormous consolidation in the space over the past year due to financial stress.

That factor equates to pricing power looking forward, and that represents a huge advantage for shareholders in related fitness names.

With that in mind, we take a look at some of the most interesting names in the fitness space, including Planet Fitness Inc (NYSE: PLNT), B2Digital Inc (OTC US: BTDG), Nautilus Inc (NYSE: NLS), and Peloton Interactive Inc (NASDAQ: PTON).

Planet Fitness Inc (NYSE: PLNT) bills itself as one of the largest and fastest-growing franchisors and operators of fitness centers in the United States by number of members and locations. As of March 31, 2021, Planet Fitness had more than 14.1 million members and 2,146 stores in 50 states, the District of Columbia, Puerto Rico, Canada, Panama, Mexico and Australia.

The Company's mission is to enhance people's lives by providing a high-quality fitness experience in a welcoming, non-intimidating environment, which we call the Judgement Free Zone(R). More than 95% of Planet Fitness stores are owned and operated by independent professionals.

Planet Fitness Inc (NYSE: PLNT) most recently reported financial results for its first quarter ended March 31, 2021, including a total revenue decrease from the prior year period by 12.1% to $111.9 million, a system wide same store sales decrease of 14.9%, and the note that net income attributable to Planet Fitness, Inc. was $5.6 million, or $0.07 per diluted share, compared to $8.6 million, or $0.11 per diluted share in the prior year period.

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"We are very encouraged by the clear and steady improvement in overall sentiment we witnessed in America during the first quarter and the corresponding impact it had on our business. We're pleased to announce that we experienced sequential net member growth in each month of the quarter, ending March with 14.1 million members," said Chris Rondeau, Chief Executive Officer.

Even in light of this news, PLNT hasn't really done much of anything over the past week, with shares logging no net movement over that period.

Planet Fitness Inc (NYSE: PLNT) generated sales of $111.9M, according to information released in the company's most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -16.4% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($503.9M against $115.2M).


B2Digital Inc (OTC US: BTDG) is a very interesting name in this space. In fact, most people probably don't realize the name is in the fitness space. But it is. B2Digital is best-known as "the premier development league for MMA". In other words, it has established itself as basically the Farm League for the UFC. But the company's business model is actually levered to its growth as a training facility chain through its ONE MORE Gym segment. While its increasingly high-profile MMA live events segment is making money, its main function is to build a household name for the brand to draw in demand for its gym network

The company has, we should note, a rapidly growing network of fitness facilities. With a market cap of just over $5 million, it is on pace to possibly drive $4-5 million in sales over the coming year from its gym network (not to mention as much as another $1.5 million from its live pay-per-view MMA events) as it expands locations and drives growth from recent acquisitions. And that's in spite of the massive headwind that has been in place thus far this year from the pandemic.

B2Digital Inc (OTC US: BTDG) most recently announced a continuation of that trend, with the company just announcing the closing of its acquisition of the equity, assets, and interests of Club Fitness, Inc., an Alabama Corporation located in Alabama.

According to the release, this fitness facility will become the fifth "One More Gym" location to be owned and operated by B2Digital as a fitness and fighter training facility linked to the Company's B2 Fighting Series combat sports brands. The Company plans to renovate the facility and add Jiu-Jitsu, Boxing, and MMA instruction areas to integrate it fully into the B2 Training Facilities Network. The Company continues to seek to drive long-term shareholder value by cultivating the strong synergy between its B2 Fighting Series and One More Gym brands, creating an ecosystem for fighter development, as well as a high-impact marketing channel targeting aspiring fighters and MMA fans.

"The Birmingham area has great potential for the B2 brand," commented Greg P. Bell, Chairman & CEO of B2Digital. "This location should fit into our model hand-in-glove given our existing branding footprint in the region and its overall potential as a high-quality training facility location. This acquisition continues to make good on our stated plan to acquire 1-2 new gyms each quarter to drive and increased our revenue growth for B2. We continue to anticipate brand-derived revenue growth for each acquired gym leading to continued overall performance in the business over the short-, intermediate-, and long-term horizons."

B2Digital Inc (OTC US: BTDG) pulled in sales strong sales in its last reported quarterly financials, with top line growth of 126%, and an estimate for that to double again this quarter and then accelerate from there as it stacks up a widening footprint in the gym space, which represents a rapidly growing channel to the bottom line for its shareholders over the coming 12 months.

Nautilus Inc (NYSE: NLS) bills itself as a global leader in innovative home fitness solutions. The company's diverse brand portfolio includes Bowflex(R), Nautilus(R), Schwinn(R), and a broad selection of exercise bikes, cardio equipment, strength training products, as well as the JRNY(R) fitness service.

Nautilus, Inc. empowers healthier living through individualized connected fitness experiences. The company sells its products through direct and retail channels. Nautilus, Inc. uses the investor relations page of its website to make information available to its investors and the market.

Nautilus Inc (NYSE: NLS) most recently announced unaudited operating results for the three-month transition period ended March 31, 2021, including net sales that were $206.1 million, up 119.9% compared to $93.7 million for the same period last year and up 143.3%, excluding sales related to the Octane brand, which was sold in October 2020, and gross profit that was $79.1 million, up 122.2% compared to $35.6 million for the same period last year. Gross margin rates expanded by 40 basis points to 38.4% this year compared to 38.0% for the same period last year.

"Our team delivered its second consecutive quarter of record-breaking results and posted the highest quarterly revenue in our Company's 35-year history. Net revenue of $206 million exceeded the high end of guidance, growing 120% versus last year, or 143% excluding the divested Octane business. Growth was strong across both segments with Direct crossing $100 million for the first time and Retail delivering quarterly revenue second only to last quarter's sales. In addition, our international business experienced 340% growth excluding Octane and we generated $39.7 million of operating income in the quarter," said Jim Barr, Nautilus Inc. Chief Executive Officer.

Even with that news, the action hasn't really heated up in the stock, with shares moving net sideways over the past week.

Nautilus Inc (NYSE: NLS) pulled in sales of $206.1M in its last reported quarterly financials, representing top line growth of 119.9%. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($113.2M against $137.8M, respectively).

Peloton Interactive Inc (NASDAQ: PTON) frames itself as "the leading interactive fitness platform in the world with a loyal community of more than 3.6 million Members". The company pioneered connected, technology-enabled fitness, and the streaming of immersive, instructor-led boutique classes for its Members anytime, anywhere. Peloton makes fitness entertaining, approachable, effective, and convenient, while fostering social connections that encourage its Members to be the best versions of themselves.

An innovator at the nexus of fitness, technology, and media, Peloton has reinvented the fitness industry by developing a first-of-its-kind subscription platform that seamlessly combines the best equipment, proprietary networked software, and world-class streaming digital fitness and wellness content, creating a product that its Members love. The brand's immersive content is accessible through the Peloton Bike, Peloton Bike+, Peloton Tread+, and Peloton App, which allows access to a full slate of fitness classes across disciplines, on any iOS or Android device, Apple TV, Fire TV, Roku TVs, and Chromecast and Android TV.

Peloton Interactive Inc (NASDAQ: PTON) most recently announced its financial results for third quarter 2021, including the fact that Q3 ending Connected Fitness Subscriptions grew 135% to over 2.08 million and paid, Digital Subscriptions grew 404% to approximately 891,000; total Members grew to over 5.4 million, and Q3 total revenue grew 141% to $1,262.3 million.

CFO Jill Woodsworth noted, "We added a record 414,000 net connected fitness subscriptions in the quarter, bringing our end of quarter connected fitness membership base to 2.08 million up 135% year-on-year. Our better than anticipated net adds were driven by our expedited shipping investments, which accelerated Bike and Bike Plus deliveries. Net adds were also helped by our low average net monthly connected fitness churn of 0.31%, the best we've seen in six years. Our record low churn is due in large part due to the efforts that we all make at Peloton day-in day-out to drive engagement."

PTON shares have been relatively flat over the past month of action, with very little net movement during that period.

Peloton Interactive Inc (NASDAQ: PTON) generated sales of $1.3B, according to information released in the company's most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 18.5% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($2.7B against $1.3B).

DISCLAIMER: EDM Media LLC (EDM), is a third-party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. EDM is NOT affiliated in any manner with any company mentioned herein. EDM and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. EDM's market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities. The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material. All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks. All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release. EDM is not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment when investing in stocks. For current services performed EDM has been compensated seven hundred fifty dollars for news coverage of the current press releases issued by B2Digital Inc (OTC US: BTDG) by a third party.

EDM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.

This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and EDM undertakes no obligation to update such statements.

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