F45 Says Quarterly Earnings Report Will Be Late
Although F45 has a goal of doubling in size in the next two years, the fitness franchise has been plagued with financial challenges
F45 Training has submitted an SEC filing stating that its Q2 quarterly earnings report will be late for the period ending June 30, 2023.
According to the filing, the functional fitness franchise is unable to file its Q2 earnings as its focus is on the “preparation, finalization and audit and review” of its financial statements to be included in its annual report for the year ending December 31, 2022, which itself was delayed.
The delay in filing the 2022 annual report, F45 states, is “a consequence of the time required by the company and its independent registered public accounting firm to complete certain items with respect to its financial statement preparation and review processes, including management’s assessment of the effectiveness of the company’s internal controls over financial reporting for the year covered by the 2022 annual report.”
F45 says its previously disclosed transitions in its executive leadership team have also contributed to the delay in filing the 2022 Form 10-K.
The Mark Wahlberg-backed F45 recently appointed Patrick Grosso as interim chief financial officer and Ryan Mayes as chief operating officer. Grosso’s appointment came on the heels of the resignation of Robert Madore in early July.
Prior to Madore’s exit, F45 announced it had made “material errors” in its 2021 and 2022 financial statements and warned that its net losses were likely significantly higher than initially reported.
Although F45 recently announced plans to double in size in the next two years, the company has been plagued with financial and regulatory challenges, including receiving a non-compliance notice from the New York Stock Exchange for its stock trading at under $1.00 for more than 30 trading days in a row.
Henrik Alex, a Seeking Alpha analyst, wrote in June that with a potential acquisition called off, the unexpected departure of F45’s temporary CFO and the fitness firm “bleeding cash” and “at the mercy of secured lenders,” F45 could be on the verge of bankruptcy.
