“The energy is absolutely incredible.”
Wahlberg sold $US25 million worth of shares at $US16 each ahead of F45’s public debut. According to recent filings,he still owns 1.66 million shares.
Other notable casualties include Sydney fund managers L1 Capital and Caledonia. L1 acquired 3.2 million shares from Wahlberg,according to company filings,and Caledonia reportedly acquired $100 million worth of shares in the IPO. Caledonia declined to comment.
Sporting greats such as basketballer Magic Johnson,David Beckham,Greg Norman and supermodel Cindy Crawford were also used to promote the fitness group.
F45 co-founder and CEO Adam J. Gilchrist (not the cricketer) has stepped down from his role but retains a board seat. He will be paid more than $US7 million ($10 million) in cash under the terms of his role change. Another 110 employees – about 45 per cent of the company’s workforce – will lose their jobs.
“We are taking the necessary steps to right-size our business in light of shifting macroeconomic and business conditions,” F45 chief financial officer Chris Payne,said.
While the company expects growth to continue,Payne said franchisees were having more trouble than expected obtaining funding for new F45 locations.
“In addition,recent share price performance has made it challenging for franchisees to utilise financing facilities announced earlier this year,” he said.
According to F45,Payne is due to receive a $US2.4 million retention payment from F45 on October 15 this year. The company received a waiver from its financiers the day before this update.
F45 is expecting revenue will be just half of what it previously forecast for the year ending December 31,2022,and could be as low as $US120 million.
F45 Training Holdings former CEO& co-founder Australian Adam Gilchrist rings a ceremonial bell on the New York Stock Exchange trading floor as his company’s IPO begins trading.Credit:AP
Underlying earnings,which it reports as adjusted earnings before interest,tax,depreciation and amortisation (EBITDA) could be as low as $US25 million,compared with the previous forecast of up to $US100 million.
The company is no longer offering any free cashflow guidance.
F45’s initial public offering (IPO) last year was marketed on the basis that its gyms would bounce back from COVID lockdowns.
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The fitness chain,which has 1555 outlets around the world,was expected to list on the US Nasdaq exchange via a special purpose acquisition company last year. However,it shelved those plans as the pandemic hit.
Investors who were big beneficiaries from the listing include Gilchrist,whose 25.4 per cent stake is worth an estimated $US357 million.
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