F45 Training Holdings Inc.

Hello and welcome to the F45 Training Holdings Q3 2021 earnings call. My name is Lauren and I'll be coordinating your call today. If you would like to ask a question during the presentation, you may do so by pressing star followed by one on your telephone keypad. I will now hand you over to your host, Bruce Williams, Managing Director, to begin. Bruce, please go ahead.

Good morning, everyone, and thank you for joining the call to discuss F45 Training's third quarter results, which we released this morning and can be found on the investor relations section of our website at F45Training.com. Today's call will be hosted by Chief Executive Officer Adam Gilchrist and Chief Financial Officer Chris Payne. Before we get started, I want to remind everyone that the management's remarks on this call may contain forward-looking statements and within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on the current management's expectations. These may include, without limitations, predictions, expectations, targets, or estimates, including regarding our anticipated financial performance, and the actual results could differ materially from those mentioned. Those forward-looking statements also involve substantial risks and uncertainties, some of which may be outside of our control that can cause the actual results to differ materially from those expressed in or implied by such statements. These factors and uncertainties, among others, are discussed in our filings with the SEC. We encourage you to review these filings for a discussion of these factors, including our quarterly report on Form 10-Q and in our earnings release. You should not place undue reliance on these forward-looking statements. We speak only as of today and we undertake no obligation to update or revise them for any new information. This call will also contain certain non-GAAP financial measures, which we believe are useful supplemental measures that assist in evaluating our ability to generate earnings, provide consistency and comparability with our past performance, and facilitate period-to-period comparisons of our core operating results and the results of peer companies. Reconciliations of these non-GAAP measures to the most comparable GAAP measures and definitions of these indicators are included in our quarterly report on Form 10-Q and in our earnings release. Now, I would like to turn the call over to Adam.

Thank you, Bruce, and thanks, everyone, for joining us today to review our third quarter results. We are very pleased to report strong third quarter results. Notably, we continue to execute on our growth strategy demonstrated by strong new franchise sales, including additional multi-unit deals and continued strength in new studio openings. Additionally, we saw encouraging sequential improvements in studio performance with visitation and average unit volumes exceeding pre-pandemic levels in the US, which is our most significant growth market. Our rest of world studios experienced similar recovery as government-mandated restrictions were lifted. I'm also very pleased that as government-mandated restrictions in Australia have eased over the last few weeks, we have seen a rapid uplift in our Australian studio performances. As you know, we have a differentiated approach to fitness, firmly rooted in the three pillars of our DNA, innovation, motivation, and, of course, results. This differentiated approach to fitness continues to drive interest in our business, both from potential franchise partners and new members. And as a result of our global studio footprint and brand awareness, we continue to grow at a rapid pace. In the third quarter, we sold 210 net new franchises and ended the quarter with 3,011 franchises sold. We also opened 63 net new studios globally and ended the quarter with 1,618 total studios, an 18% increase versus the prior year. We are well on our way to achieving over full year goals of franchises sold and studio openings, demonstrating the strong continued interest from franchisees to open new F45 studios. Moreover, we are encouraged by the strong franchise pipeline of approximately 1,400 sold but not yet opened studios. As I've said before, a significant portion of these sold but unopened studios are comprised of very experienced, well-capitalized, multi-unit franchisees. Now I'll turn it over to Chris to go over our financial results, and then I'll spend some time discussing our growth strategy.