Executive Memo and Presentation

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Assignment1AJWMI530Spring2024StudentInputSheetprotected.xlsb
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Key

Assignment 1A Student Name:
Data and Analytics Submission Template
Due: Sunday Midnight end of Week 4
Planet Fitness Life Time Group Holdings
Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands
12/31/23 12/31/22 12/31/21 12/31/20 Comments 12/31/23 12/31/22 12/31/21 12/31/20 Comments
Balance Sheet
Current Assets 471,817 555,531 662,414 566,816 174,524 131,036 131,524 165,699
Property, Plant & Equipment 390,405 348,820 173,687 160,677 3,171,616 2,901,242 2,791,464 2,692,712
Goodwill + Intangible Assets 1,090,009
tc={F3B79546-E70A-7D47-846D-7B284D6FAA03}: [Threaded comment] Your version of Excel allows you to read this threaded comment; however, any edits to it will get removed if the file is opened in a newer version of Excel. Learn more: https://go.microsoft.com/fwlink/?linkid=870924 Comment: Intangible assets + Goodwill 		1,119,757 429,506 444,896 1,407,486 1,406,580
tc={5682D998-242F-A94E-A436-0BF33DB7F609}: [Threaded comment] Your version of Excel allows you to read this threaded comment; however, any edits to it will get removed if the file is opened in a newer version of Excel. Learn more: https://go.microsoft.com/fwlink/?linkid=870924 Comment: Goodwill + Intangible assets 		1,407,417 1,397,595
Right of Use Assets 381,010 346,937 190,330 164,252 2,202,601 2,116,761 1,864,528 1,708,597
Other Assets 636,452
tc={FBD8E9F1-14D3-1A40-8236-0824857594B6}: [Threaded comment] Your version of Excel allows you to read this threaded comment; however, any edits to it will get removed if the file is opened in a newer version of Excel. Learn more: https://go.microsoft.com/fwlink/?linkid=870924 Comment: Investments + Deferred income taxes + Other assets 		483,544 560,046 513,096 75,914 69,744 61,742 52,955
Total Assets (sum rows 11-15) 2,969,693 2,854,589 2,015,983 1,849,737 TA 7,032,141 6,625,363 6,256,675 6,017,558 TA
Current Liabilities 251,329 244,530 176,610 111,895 CL 557,198 457,406 406,252 443,132 CL
Long Term Debt + Notes 1,962,874 1,978,131
tc={D9064CB7-306D-5845-81BF-9EF68002B026}: [Threaded comment] Your version of Excel allows you to read this threaded comment; however, any edits to it will get removed if the file is opened in a newer version of Excel. Learn more: https://go.microsoft.com/fwlink/?linkid=870924 Comment: Long term debt + Borrowings under Variable Funding Notes 		1,740,273 1,751,426 LTD 1,859,027 1,805,698 1,775,719 2,133,330 LTD
Lease Liabilities 381,589 341,843 197,682 167,910 2,268,863 2,162,424 1,909,883 1,738,393
Other Liabilities 492,892
tc={E24EFF44-FB02-CB48-88A7-899FAD54C4DD}: [Threaded comment] Your version of Excel allows you to read this threaded comment; however, any edits to it will get removed if the file is opened in a newer version of Excel. Learn more: https://go.microsoft.com/fwlink/?linkid=870924 Comment: Deferred revenue + Deferred tax liabilities + Payable pursuant to tax benefit arrangements + Other liabilities 		501,646 544,263 524,179 92,941 75,574
tc={303C7F8E-8D52-6D49-AB6B-963D97CF46E4}: [Threaded comment] Your version of Excel allows you to read this threaded comment; however, any edits to it will get removed if the file is opened in a newer version of Excel. Learn more: https://go.microsoft.com/fwlink/?linkid=870924 Comment: Deferred income taxes + Other liabilities 		73,429 221,290
Total Debt (Total Liabilities) (sum rows 17-20) 3,088,684 3,066,150 2,658,828 2,555,410 TD 4,778,029 4,501,102 4,165,283 4,536,145 TD
Accumulated Deficit (691,461) (703,717) (708,804) (751,578) (576,813) (652,876) (651,083) (71,714)
Total Stockholders Equity (Deficit) (118,991) (211,561) (642,845) (705,673) TE 2,254,112 2,124,261 2,091,392 1,481,413 TE
Current Ratio 1.9 2.3 3.8 5.1 = CA/CL 0.3 0.3 0.3 0.4 = CA/CL
LTD to Equity Ratio N/A N/A N/A N/A =LTD/TE 1 1 1 1 =LTD/TE
Total Debt to Total Assets Ratio 1.0 1.1 1.3 1.4 =TD/TA 0.7 0.7 0.7 0.8 =TD/TA
Return on Assets 5% 4% 2% -1% =NI/TA 1% -0% -9% -6% =NI/TA
Return on Equity -124% -52% -7% 2% =NI/TE 3% -0% -28% -24% =NI/TE
Income Statement
Revenue 1,071,326 936,772 587,023 406,618 Rev 2,216,593 1,822,557 1,318,053 948,379 Rev
Cost of revenue/Store operations/National Adv. Exp./Rent exp. 513,740 462,738 271,151 220,007 COR 1,459,492 1,313,434 1,053,921 846,303 COR
Depreciation and amortization expense 149,413 124,022 62,800 53,832 D+A 244,397 228,883 235,124 247,693 D+A
Selling, General & Admin. Expense 124,930 114,853 94,540 68,585 SG&A 201,131 213,976 480,543 149,898 SG&A
Other operating expense (income)/Other losses, net 10,379 5,081 15,137 4,434 86,363 (44,355) 43,653 63,634
Total operating expenses 798,462 706,694 443,628 346,858 1,991,383 1,711,938 1,813,241 1,307,528
Income (loss) from operations 272,864 230,078 143,395 59,760 OI 225,210 110,619 (495,188) (359,149) OI
Interest income 17,741 5,005 878 2,937 - 0 - 0 - 0 - 0
Interest expense (86,576) (88,628) (81,211) (82,117) IE (130,797) (113,537) (224,516) (128,394) IE
Equity in earnings (loss) of affiliates - 0 - 0 - 0 - 0 377 300 (9) (187)
Other income (expense) 3,512 14,983 (11,102) 4,903 - 0 - 0 - 0 - 0
Total other expenses (income), net (65,323) (68,640) (91,435) (74,277) (130,420) (113,237) (224,525) (128,581)
Income (loss) before income taxes 207,541 161,438 51,960 (14,517) 94,790 (2,618) (719,713) (487,730)
Equity losses of unconsolidated subsidiaries (1,994) (467) (179) - 0 - 0 - 0 - 0 - 0
Income tax expense 58,512 50,515 5,659 687 18,727 (825) (140,344) (127,538)
Net Income 147,035 110,456 46,122 (15,204) NI 76,063 (1,793) (579,369) (360,192) NI
Cost of revenue % of Revenue 48% 49% 46% 54% =COR/Rev 66% 72% 80% 89% =COR/Rev
Depreciation and amortization expense % of Revenue 14% 13% 11% 13% =D+A/Rev 11% 13% 18% 26% =D+A/Rev
SG&A expense % of Revenue 12% 12% 16% 17% =SG&A/Rev 9% 12% 36% 16% =SG&A/Rev
Interest expense % of Revenue -8% -9% -14% -20% =IE/Rev -6% -6% -17% -14% =IE/Rev
Net Margin 14% 12% 8% -4% =NI/Rev 3% -0% -44% -38% =NI/Rev
Cash Flow Statement
Cash flow from operating activities (CFFO) 330,254 240,207 189,289 31,138 CFFO 463,004 200,969 (20,029) (95,981) CFFO
Cash flow from investing activities (CFFI) (339,991) (506,566) (90,916) (52,278) CFFI (574,160) (243,542) (269,919) (6,115) CFFI
Cash flow from financing activities (CFFF) (141,417) 135,725 (10,246) 57,850 CFFF 115,552 36,798 288,399 87,395 CFFF
Effect of exchange rate on cash and cash equivalents 776 (808) 14 295 61 (353) (9) (55)
Net increase (decrease) in cash and cash equivalents (150,378) (131,442) 88,141 37,005 4,457 (6,128) (1,558) (14,756)
Cash and cash equivalents, beginning of period 472,499 603,941 515,800 478,795 25,509 31,637 33,195 47,951
Cash and cash equivalents, end of period 322,121 472,499 603,941 515,800 29,966 25,509 31,637 33,195
Purchases of PP&E (Capital expenditures) (135,986) (100,057) (54,074) (52,560) CapEx (693,902) (591,178) (328,909) (265,617) CapEx
Business acquisitions (43,264) (424,940) (1,888) - 0 (5,708) - 0 (9,529) (100)
Proceeds from issuance of stock 9,160 925 8,186 2,571 - 0 - 0 701,926 90,000
Free Cash flow (FCF) 194,268 140,150 135,215 (21,422) =CFFO+CapEx (230,898) (390,209) (348,938) (361,598) =CFFO+CapEx

Student Input

Assignment 1A Student Name:
Data and Analytics Submission Template
Due: Sunday Midnight end of Week 4
Shaded lines with "X" require calculations - see Comments Planet Fitness Life Time Group
Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands
12/31/23 12/32/22 12/31/21 12/31/20 Comments 12/31/23 12/32/22 12/31/21 12/31/20 Comments
Balance Sheet
Current Assets 471,817 555,531 662,414 566,816 CA 174,524 131,036 131,524 165,699 CA
Property, Plant & Equipment 390,405 348,820 173,687 160,677 3,171,616 2,901,242 2,791,464 2,692,712
Goodwill + Intangible Assets 1,090,009
tc={B30D04CF-8BDF-504B-866A-2D4A8F50BE67}: [Threaded comment] Your version of Excel allows you to read this threaded comment; however, any edits to it will get removed if the file is opened in a newer version of Excel. Learn more: https://go.microsoft.com/fwlink/?linkid=870924 Comment: Intangible assets + Goodwill 		1,119,757 429,506 444,896 1,407,486 1,406,580 1,407,417 1,397,595
Right of Use Assets 381,010 346,937 190,330 164,252 2,202,601 2,116,761 1,864,528 1,708,597
Other Assets 636,452
tc={77629F1E-71E0-4042-B98A-D446B00BC6A3}: [Threaded comment] Your version of Excel allows you to read this threaded comment; however, any edits to it will get removed if the file is opened in a newer version of Excel. Learn more: https://go.microsoft.com/fwlink/?linkid=870924 Comment: Investments + Deferred income taxes + Other assets + Long term marketable securities 		483,544 560,046 513,096 75,914 69,744 61,742 52,955
Total Assets (sum rows 11-15) 2,969,693 2,854,589 2,015,983 1,849,737 TA 7,032,141 6,625,363 6,256,675 6,017,558 TA
Current Liabilities 251,329 244,530 176,610 111,895 CL 557,198 457,406 406,252 443,132 CL
Long Term Debt + Notes 1,962,874 1,978,131
tc={2EACB641-1766-484E-A372-2A115A959C3A}: [Threaded comment] Your version of Excel allows you to read this threaded comment; however, any edits to it will get removed if the file is opened in a newer version of Excel. Learn more: https://go.microsoft.com/fwlink/?linkid=870924 Comment: Long term debt + Borrowings under Variable Funding Notes 		1,740,273 1,751,426 LTD 1,859,027 1,805,698 1,775,719 2,133,330 LTD
Lease Liabilities 381,589 341,843 197,682 167,910 2,268,863 2,162,424 1,909,883 1,738,393
Other Liabilities 492,892
tc={BC9CC7D7-AE1A-1749-8322-898C00D057BD}: [Threaded comment] Your version of Excel allows you to read this threaded comment; however, any edits to it will get removed if the file is opened in a newer version of Excel. Learn more: https://go.microsoft.com/fwlink/?linkid=870924 Comment: Deferred revenue + Deferred tax liabilities + Payable pursuant to tax benefit arrangements + Other liabilities 		501,646 544,263 524,179 92,941
tc={0DC856A1-3FA2-6B46-B349-C815D5CA1D84}: [Threaded comment] Your version of Excel allows you to read this threaded comment; however, any edits to it will get removed if the file is opened in a newer version of Excel. Learn more: https://go.microsoft.com/fwlink/?linkid=870924 Comment: Deferred income taxes + Other liabilities 		75,574 73,429 221,290
Total Debt (Total Liabilities) (sum rows 17-20) 3,088,684 3,066,150 2,658,828 2,555,410 TD 4,778,029 4,501,102 4,165,283 4,536,145 TD
Accumulated Deficit (691,461) (703,717) (708,804) (751,578) (576,813) (652,876) (651,083) (71,714)
Total Stockholders Equity (Deficit) (118,991) (211,561) (642,845) (705,673) TE 2,254,112 2,124,261 2,091,392 1,481,413 TE
X Current Ratio 1.88 2.27 3.75 5.07 = CA/CL 0.31 0.29 0.32 0.37 = CA/CL
X LTD to Equity Ratio N/A N/A N/A N/A =LTD/TE 0.82 0.85 0.85 1.44 =LTD/TE
X Total Debt to Total Assets Ratio 1.04 1.07 1.32 1.38 =TD/TA 0.68 0.68 0.67 0.75 =TD/TA
X Return on Assets 3% 4% 2% -1% =NI/TA 1% 0% -9% -6% =NI/TA
X Return on Equity -124% -52% -7% 2% =NI/TE 3% -28% -24% =NI/TE
Income Statement
Revenue 1,071,326 936,772 587,023 406,618 Rev 2,216,593 1,822,557 1,318,053 948,379 Rev
Cost of revenue/Store operations/National Adv. Exp./Rent exp. 513,740
tc={6951EFD4-F4B3-CC4D-9549-F2B8896F6054}: [Threaded comment] Your version of Excel allows you to read this threaded comment; however, any edits to it will get removed if the file is opened in a newer version of Excel. Learn more: https://go.microsoft.com/fwlink/?linkid=870924 Comment: Add together: Cost of Revenue + Store Operations + National Advertising Fund Expense 		462,738
tc={744927D1-9B5E-9E48-B01D-66A4275A6B31}: [Threaded comment] Your version of Excel allows you to read this threaded comment; however, any edits to it will get removed if the file is opened in a newer version of Excel. Learn more: https://go.microsoft.com/fwlink/?linkid=870924 Comment: Add together: Cost of Revenue + Store Operations + National Advertising Fund Expense 		271,151 220,007 COR 1,459,492
tc={5D16E49A-EA5F-E74E-A3BC-9CB3110EE8BD}: [Threaded comment] Your version of Excel allows you to read this threaded comment; however, any edits to it will get removed if the file is opened in a newer version of Excel. Learn more: https://go.microsoft.com/fwlink/?linkid=870924 Comment: Add together: + Center Operations + Rent 		1,313,434
tc={7059E3FC-8DB5-A84B-A356-DC56F0864C49}: [Threaded comment] Your version of Excel allows you to read this threaded comment; however, any edits to it will get removed if the file is opened in a newer version of Excel. Learn more: https://go.microsoft.com/fwlink/?linkid=870924 Comment: Add together: + Center Operations + Rent 		1,053,921 846,303 COR
Depreciation and amortization expense 149,413 124,022 62,800 53,832 D+A 244,397 228,883 235,124 247,693 D+A
Selling, General & Admin. Expense 124,930 114,853 94,540 68,585 SG&A 201,131 213,976 480,543 149,898 SG&A
Other operating expense (income)/Other losses, net 10,379 5,081 15,137 4,434 86,363 (44,355) 43,653 63,634
Total operating expenses 798,462 706,694 443,628 346,858 1,991,383 1,711,938 1,813,241 1,307,528
Income (loss) from operations 272,864 230,078 143,395 59,760 OI 225,210 110,619 (495,188) (359,149) OI
Interest income 17,741 5,005 878 2,937 - 0 - 0 - 0
Interest expense (86,576) (88,628) (81,211) (82,117) IE (130,797) (113,537) (224,516) (128,394) IE
Equity in earnings (loss) of affiliates - 0 - 0 377 300 (9) (187)
Other income (expense) 3,512 14,983 (11,102) 4,903 - 0 - 0
Total other expenses (income), net (65,323) (68,640) (91,435) (74,277) (130,420) (113,237) (224,525) (128,581)
Income (loss) before income taxes 207,541 161,438 51,960 (14,517) 94,790 (2,618) (719,713) (487,730)
Equity losses of unconsolidated subsidiaries (1,994) (467) (179) - 0 - 0 - 0
Income tax expense 58,512 50,515 5,659 687 18,727 (825) (140,344) (127,538)
Net Income 147,035 110,456 46,122 (15,204) NI 76,063 (1,793) (579,369) (360,192) NI
X Cost of revenue % of Revenue 48% 49% 46% 54% =COR/Rev 66% 72% 80% 89% =COR/Rev
X Depreciation and amortization expense % of Revenue 14% 13% 11% 13% =D+A/Rev 11% 13% 18% 26% =D+A/Rev
X SG&A expense % of Revenue 12% 12% 16% 17% =SG&A/Rev 9% 12% 36% 16% =SG&A/Rev
X Interest expense % of Revenue -8% -9% -14% -20% =IE/Rev -6% -6% -17% -14% =IE/Rev
X Net Margin 14% 12% 8% -4% =NI/Rev 3% -44% -38% =NI/Rev
Cash Flow Statement
Cash flow from operating activities (CFFO) 330,254 240,207 189,289 31,138 CFFO 463,004 200,969 (20,029) (95,981) CFFO
Cash flow from investing activities (CFFI) (339,991) (506,566) (90,916) (52,278) CFFI (574,160) (243,542) (269,919) (6,115) CFFI
Cash flow from financing activities (CFFF) (141,417) 135,725 (10,246) 57,850 CFFF 115,552 36,798 288,399 87,395 CFFF
Effect of exchange rate on cash and cash equivalents 776 (808) 14 295 61 (353) (9) (55)
Net increase (decrease) in cash and cash equivalents (150,378) (131,442) 88,141 37,005 4,457 (6,128) (1,558) (14,756)
Cash and cash equivalents, beginning of period 472,499 603,941 515,800 478,795 25,509 31,637 33,195 47,951
Cash and cash equivalents, end of period 322,121 472,499 603,941 515,800 29,966 25,509 31,637 33,195
Purchases of PP&E (Capital expenditures) (135,986) (100,057) (54,074) (52,560) CapEx (693,902) (591,178) (328,909) (265,617) CapEx
Business acquisitions (43,264) (424,940) (1,888) - 0 (5,708) - 0 (9,529) (100)
Proceeds from issuance of stock 9,160 925 8,186 2,571 701,926 90,000
X Free cash flow (FCF) 194,268 140,150 135,215 (21,422) =CFFO+CapEx (230,898) (390,209) (348,938) (361,598) =CFFO+CapEx

Summary Sheet

After reviewing the annual reports and entering the relevant data and ratios into the workbook, share your initial thoughts on the four topic areas that you will address in greater detail in your Assignment 1B submission of your Executive Memo and Video Presentation. 1. Profitability: Net Margin Ratio 2. Debt Management: Total Debt to Assets Ratio 3. Cash Flow: Cash Flow from Operations 4. Liquidity: Current Ratio Use the questions in the Assignment 1B instructions to guide your comments, but do not submit elaborate, detailed responses in this document. A couple short sentences or bullet points for each topic is sufficient to summarize your findings and highlight what stood out to you from your analysis.
If you need help with analyzing and interpreting trends for the four key topics of Assignment 1B, please notify your professor via email as soon as possible.
1. Profitability: Net Margin Ratio
Plant fitness net margin ended with and high percentage, but lifetime group ratio is under 5% meaning that to low for a company. Having a low ratio lets the company know they aren't strong enough.
2. Debt Management: Total Debt to Assets Ratio
Both companies has good total debt to assets ratio.
3. Cash Flow: Cash Flow from Operations
Lifetime group begin slowly with their payments but over the couple of years you can see it started to get better. Its seems that planet fitness company is bigger but they are also doing a great job.
4. Short-Term Liquidity: Current Ratio
Planet fitness current ratio started off strong but just the last year they started a little. Lifetime group is struggling in that area, anytime you are under 1.0 ratio it means you barely have enougn short term assets to cover the short term liabilities.