Outgoing F45 Chief Executive Adam Gilchrist looks back on goal to ‘change people’s lives by creating the world’s best workout’

July 29, 2022

With media reporting on the tumbling share price of Australian-founded fitness franchise F45 Training on the New York Stock Exchange (NYSE), outgoing Chief Executive Adam Gilchrist has shared his

Following its announcement earlier this week of a fall in anticipated revenues of more than 50% and the laying off of almost half its corporate staff - first revealed in Australia on Wednesday by Australasian Leisure Management - as of this morning, the F45 share price on the NYSE was sitting at US$1.31 (A$1.87), having fallen, according to Market Watch, by a massive 61.5%.

At the time of F45’s NYSE listing in July last year its shares were priced at $16 a share.

In tandem with the now Austin, Texas, USA-based company’s revised revenue guidance it was also revealed that US$250 million of growth capital provided by two previously announced franchise financing facilities, which F45 had arranged so that franchisees could open additional studios, will now not be available.

The announcement also stated that Gilchrist, who co-founded the business in 2013, and who had been serving as President, Chief Executive and Chairman of the board of directors, had stepped down from those roles on 24th July.

He will remain on the Board as a Director with the Board to appoint a new Chairman, along with looking for a new Chief Executive.

Speaking about what he had achieved since 2013, Gilchrist advised in a statement “when we founded F45, we made it our principal goal to change people’s lives by creating the world’s best workout.”

Acknowledging his team, Gilchrist added “to the staff that have worked tirelessly since our inception, you have been incredible in your efforts, and I thank you for all of your support. To the investors that have joined us along our journey, I thank you for your commitment to F45.

“Lastly, I am forever grateful to our franchisees who deliver the world’s best workout each day to F45 members around the world.”

Richard Grellman, F45’s Lead Independent Director, commented “Adam has done a tremendous job in leading F45, and I want to thank him for his countless contributions and innovations.

“We are fortunate that we will continue to benefit from his ongoing counsel and insights during this transition and well beyond as a member of our Board."

F45’s Updated 2022 Outlook
Following F45’s comprehensive review of its strategic and financial priorities, the Company is providing revised guidance for full-year 2022.

The revised guidance assumes that the US$250 million of growth capital provided by two previously announced franchise financing facilities, which F45 had arranged for franchisees to open additional studios, will not be available despite strong demand from franchisees.

Full-year net New Franchises Sold between 350 and 450, compared to the prior guidance of 1,500.
Full-year net Initial Studio Openings between 350 and 450, compared to the prior guidance of 1,000.
Full-year revenue between US$120 million and US$130 million, compared to the prior guidance of US$255 million to US$275 million.
Full-year Adjusted EBITDA between US$25 million and US$30 million, compared to the prior guidance of US$90 million to US$100 million.
Full-year free cash flow guidance withdrawn.

F45 is expected to report results and host its second quarter earnings conference call in mid-August.

Earlier this month, real estate media reported that Gilchrist was unexpectedly selling a beachside home in the Sydney suburb of Freshwater that he bought for a suburb record of $14 million in 2018.

It is not known if the sale was related to his change of role at F45.

Image: Adam Gilchrist (right) with Hollywood star and F45 investor Mark Wahlberg at the New York Stock Exchange last year. Credit: Source: NYSE

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