INVESTORS CLEARLY LIKE IT, THE
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>>> FROM SITTING ON THE COUCH
BINGING NETFLIX TO HITTING THE
GYM, DID OMICRON HAPPEN TO KILL
YOUR NEW YEAR’S RESOLUTION?
I NEVER MAKE THEM BECAUSE I
ALWAYS BREAK THEM, BUT I FEEL
LIKE MOST PEOPLE SAY I’M GOING
TO WORKOUT, I’M GOING TO BE
HEALTHY, I’M GOING TO LOSE
WEIGHT.
NOW WE SEE THE SURGE IN OMICRON,
AND THAT IS POSING A REAL
CHALLENGE FOR AMERICANS WHO ARE
LOOKING TO HIT THE GYM FOR THIS
MONTH IN WHAT IS USUALLY THE
BUSIEST TIME FOR THE GYM
MEMBERSHIPS.
PEOPLE ARE JUST DECIDING TO STAY
HOME.
HERE’S SOME DATA TO BACK THAT
UP.
AN ANALYTICS FIRM FINDS THAT
FOOT TRAFFIC FELL 12% IN GYMS,
IN-PERSON GYM USE FOR THE FINAL
WEEK OF 2021, BUT THERE’S ONE
GYM OPERATOR THAT SAYS BUSINESS
IS ACTUALLY BOOMING.
F45 CHAIRMAN AND CEO, ADAM
GILCHRIST.
CONGRATULATIONS YOU’RE GETTING
PEOPLE INTO YOUR WORKOUT CENTER.
CAN YOU TELL US WHAT EXACTLY IS
F45?
>> YEAH.
IT’S AHA 45-MINUTE FULL-BODY
WORKOUT.
WE EMPLOY --
[INAUDIBLE]
WITH HIGH INTENSITY TRAINING.
AND REALLY WE’RE BUILT ON THREE
PILLARS, MOTIVATION, INNOVATION
AND RESULTS.
AND THE KEY FOR US IS ABOUT OUR
MEMBERS JUST COMING IN AND
HAVING SOME FUN AND ENJOYING,
YOU KNOW --
[INAUDIBLE]
REALLY HAVING THAT
COMMUNITY-BASED RELATIONSHIP
WITH US.
YOU KNOW, WE BELIEVE IT’S A
CRITICAL PART TO NOT JUST OUR
SUCCESS, BUT ALL OUR MEMBERS
THAT COME AND JOIN AND LOOKING
FOR A PLACE OUTSIDE THEIR HOME
OR WORK JUST TO ENJOY
THEMSELVES.
LAUREN: YEAH.
I THINK A LOT OF PEOPLE WOULD
AGREE THEY’RE KIND OF CRAVING
THAT INTERACTION OR COMPETITION,
IF YOU WILL.
SOMETIMES YOU WORK OUT HARDER IF
YOU’RE WORKING OUT WITH SOMEONE
ELSE BECAUSE YOU’RE COMPETING
WITH THEM OR SHOWING OFF.
DEPENDS ON HOW YOU LOOK AT IT.
IT’S GOT TO BE A RISKY TIME FOR
SOME OF YOUR FRANCHISES TO OPEN
UP RIGHT NOW, NO?
>> WELL, QUITE THE CONTRARY.
WE HAVE RECORD NUMBS OF F --
NUMBERS OF F45 STUDIOS OPENING.
WE HAD OVER 100 LAST QUARTER
WHICH IS AN INDUSTRY RECORD.
WE LOOK FORWARD TO OPENING OVER
1,000 THIS YEAR.
AND AS WE SIT HERE TODAY, LAST
QUARTER WE HAD MORE VISITATION
PER MEMBER THAN ANY OTHER
QUARTER OVER THE LAST NINE YEARS
OF OUR BUSINESS.
SO TYPICALLY TRACKED AT 2.7
TIMES PER WEEK, AND NOW WE’RE UP
TO 3 TIME PER WEEK.
SO WE’RE REALLY EXCITED ABOUT
SEEING MEMBERS GET BACK INTO THE
GROOVE.
WE OBVIOUSLY BELIEVE THE
STRENGTH OF OUR BUSINESS, HAVE
ASSISTED ALL OUR FRANCHISEES TO
CONTINUE TO GATHER MOMENTUM.
25% OF THE INDUSTRY IS GOING TO
REMAIN CLOSED.
THAT’S REALLY DISAPPOINTING.
HOWEVER, IT ENABLES US TO LOOK
AT A LOT OF OPPORTUNITIES, YOU
KNOW, TO CONSIDER NEW SITES AND
TO CONTINUE TO EXPAND OUR
NETWORK GLOBALLY.
LAUREN: I’M ASSUMING YOUR
COMPETITORS ARE ORANGE THEORY,
SOUL CYCLE, WOULD YOU AGREE?
OR IS IT SOMETHING ELSE?
>> YEAH.
THEY’RE GREAT COMPETITORS, AND
WE’RE VERY FORTUNATE TO BE BASED
IN 70 COUNTRIES IN COMPARISON TO
SOME OF OUR PEERS LIKE SOWING
CYCLE AND ORANGE -- SOUL CYCLE
AND ORANGE THEORY THAT ARE ONLY
OPERATING IN A HANDFUL.
WE BELIEVE THAT, YOU KNOW,
COMPETITION IS FANTASTIC, AND WE
OBVIOUSLY RELISH THE OPPORTUNITY
TO WAKE UP EVERY DAY AND TO
DELIVER THE WORLD’S BEST WORKOUT
TO OUR MEMBERS.
WE HAVE A MAJOR FOCUS AND A
MANDATE TO --
[INAUDIBLE]
WITH OUR ATHLETICS DEPARTMENT
WHICH HAS OVER 20 INCREDIBLE
ATHLETIC DIRECTORS
CHOREOGRAPHING OUR WORKOUT TO
DELIVER TO OUR MEMBERS EVERY
DAY, OUR TECHNOLOGY-ENABLED F45
PLATFORM.
LAUREN: YOU’RE IN 43 STATES, SO
YOU’RE PRETTY WIDESPREAD ACROSS
THE NATION.
DO MEMBERS HAVE TO WEAR MASKS?
>> YEAH, DEPENDING ON THE STATE.
FOR EXAMPLE, IN CALIFORNIA, YES.
FLORIDA, NO.
BUT YOU’VE GOT TO CONSIDER THE
FACT THAT WE’RE IN 70 CUBS,
AND -- COUNTRIES, AND, YOU KNOW,
WE’RE NOT HERE TO JUDGE ANY
GOVERNMENT DECISION.
WE HOPE THAT IT’S BASED ON THE
BEST SCIENCE THAT’S AVAILABLE.
AND, LOOK, THE CHALLENGE WORKING
OUT IN A MASK, IT IS AWKWARD.
AND I THINK --
LAUREN: YEAH.
[LAUGHTER]
>> I DON’T THINK ANYONE WILL
DISPUTE THAT.
HOWEVER, WE’RE SEEING PEOPLE
TURNING UP.
AND ALTHOUGH THAT’S A CHALLENGE,
TO TURN UP AND BE IN AN AWKWARD,
YOU KNOW, MASK ENVIRONMENT,
WE’RE SEEING PEOPLE IN
CALIFORNIA COMING BACK WITH
HIGHER VISITATION THAN
PRE-PANDEMIC WHICH, FOR US, IS
REALLY AMAZING.
LAUREN: YEAH.
YOU KNOW, I’VE WORKED OUT IN A
MASK.
IT IS UNCOMFORTABLE, BUT IT -- I
DON’T WORK OUT AT HOME, I’M JUST
ONE OF THOSE PEOPLE, I CAN’T DO
IT.
SO, YOU KNOW, IF THAT’S WHAT IT
TAKES FOR ME TO WORK OUT, I’LL
WEAR A MASK IF I HAVE TO, I
SUPPOSE.
ADAM, ARE YOU FROM AUSTRALIA?
>> YEAH.
I WAS -- I’VE BEEN BASED IN THE
U.S. NOW FOR FIVE YEARS, BUT I
GREW UP IN SYDNEY WHICH WAS A
GREAT CITY AND VERY FORTUNATE TO
HAVE A GREAT TEAM AROUND ME, A A
LOT OF SYDNEY FOLKS IN OUR C
SUITE.
BASED OUT OF BOSTON AT THE
MOMENT.
LAUREN: ALL RIGHT.
ADAM GILCHRIST, CONGRATULATIONS