Nevada | 001-36074 | 20-5818205 | ||
(State or other | (Commission File Number) | (IRS Employer | ||
jurisdiction of incorporation) | Identification No.) |
3030 LBJ Freeway, Suite 600 Dallas, Texas | 75234 | |
(Address of Principal Executive Offices) | (Zip Code) |
Item 2.02 | Results of Operations and Financial Condition. |
Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangement of Certain Officers. |
Item 7.01 | Regulation FD Disclosure. |
Item 8.01 | Other Events. |
Item 9.01 | Financial Statements and Exhibits. |
Exhibit Number | Description | |
99.1 | Press release entitled “ClubCorp Reports Twelfth Consecutive Quarter of Growth, Announces Acquisition of Oakhurst Golf and Country Club and ‘The Collective’ a New Club Concept,” dated April 12, 2017, of ClubCorp Holdings, Inc. | |
99.2 | Press release entitled “ClubCorp CEO Eric Affeldt to Retire,” dated April 12, 2017, of ClubCorp Holdings, Inc. | |
99.3 | Press release entitled “ClubCorp Provides Update on Review of Strategic Alternatives,” dated April 12, 2017, of ClubCorp Holdings, Inc |
Date: April 12, 2017 | CLUBCORP HOLDINGS, INC. | |
By: | /s/ Curtis D. McClellan | |
Curtis D. McClellan | ||
Chief Financial Officer and Treasurer |
Exhibit Number | Description | |
99.1 | Press release entitled “ClubCorp Reports Twelfth Consecutive Quarter of Growth, Announces Acquisition of Oakhurst Golf and Country Club and ‘The Collective’ a New Club Concept,” dated April 12, 2017, of ClubCorp Holdings, Inc. | |
99.2 | Press release entitled “ClubCorp CEO Eric Affeldt to Retire,” dated April 12, 2017, of ClubCorp Holdings, Inc. | |
99.3 | Press release entitled “ClubCorp Provides Update on Review of Strategic Alternatives,” dated April 12, 2017, of ClubCorp Holdings, Inc |
• | First quarter revenue was $221.3 million, up 3.0%, net loss decreased $0.8 million to $7.5 million, and adjusted EBITDA was $43.7 million, up 4.2% |
• | ClubCorp acquires Oakhurst Golf and Country Club in Clarkston, Michigan |
• | ClubCorp signs lease to open a new concept business / social club "The Collective" in Seattle, Washington |
• | The Company's Board of Directors provides an update on its review of strategic alternatives by unanimously determining not to pursue a strategic transaction at this time. The Board's Strategic Review Committee will remain in place, and the Company will continue executing its three-pronged growth strategy focused on organic growth, reinvention and acquisitions |
• | Eric Affeldt announces his intention to retire from his role as Chief Executive Officer upon the appointment of his successor |
• | Revenue increased $6.4 million to $221.3 million, up 3.0%. |
• | Net Loss decreased $0.8 million to $7.5 million, down 9.7%. |
• | Adjusted EBITDA(1) increased $1.8 million to $43.7 million, up 4.2%, driven by increased revenue and from effective management of variable operating expenses. |
• | Same Store Combined Clubs(2) revenue increased $5.5 million to $217.1 million, up 2.6%, driven by increases in all three major revenue streams, dues up 2.8%, food & beverage up 2.0% and golf operations up 4.7%. |
• | Same-store Combined Clubs Adjusted EBITDA increased $1.9 million to $59.2 million, up 3.3%, due to increased revenue, and favorable variable payroll, payroll related and other operating expenses as a percentage of revenue. Same-store Adjusted EBITDA margin was 27.3%. |
• | New or Acquired Clubs.(2) New clubs opened or acquired in 2016 and 2017 contributed revenue of $2.7 million and adjusted EBITDA of $0.2 million. |
ClubCorp FY17 Q1 Earnings Release | 1 | Page |
First quarter ended | |||||||||||
(In thousands, except for membership data) | March 21, 2017 (12 weeks) | March 22, 2016 (12 weeks) | % Change | ||||||||
Total Revenue | $ | 221,278 | $ | 214,873 | 3.0 | % | |||||
Net loss | $ | (7,506 | ) | $ | (8,313 | ) | 9.7 | % | |||
Golf and Country Clubs Adjusted EBITDA | $ | 52,822 | $ | 50,123 | 5.4 | % | |||||
Business, Sports and Alumni Clubs Adjusted EBITDA | $ | 6,664 | $ | 7,274 | (8.4 | )% | |||||
Corporate expenses and other operations (3) | $ | (15,745 | ) | $ | (15,407 | ) | (2.2 | )% | |||
Adjusted EBITDA (1) | $ | 43,741 | $ | 41,990 | 4.2 | % | |||||
Total memberships, excluding managed club memberships | 174,010 | 170,629 | 2.0 | % |
• | Eric Affeldt, chief executive officer: “We are pleased to deliver our twelfth consecutive quarter of revenue and adjusted EBITDA growth. As we celebrate ClubCorp's 60th anniversary this year, the Company remains firmly committed to executing its three-pronged growth strategy focused on organic growth, reinvention and acquisitions. We are particularly excited about the pacing of acquisitions, as we have already added four new clubs to our golf and country club segment this year as compared to three clubs added in fiscal 2016. Additionally, we completed a lease agreement to construct a new concept business / social club named "The Collective" that will open next year in Seattle. In each case, these clubs are expected to drive additional return on investment and further expand the value of our local, regional and national networks.” |
• | Mark Burnett, president and chief operating officer: “We continue to see increased member activity and usage at our recently reinvented and acquired clubs. In the first twelve weeks of fiscal 2017, we achieved another quarter of adjusted EBITDA growth, benefiting greatly from improved performance at these clubs. Likewise, our O.N.E. offering continues to appeal to our members with approximately 54% of our memberships enrolled in O.N.E.. We are excited by the positive momentum in our golf and country club business and are gearing up for what we expect will be a busy golf season this spring and into the summer.” |
• | Curt McClellan, chief financial officer: “We delivered solid results in our first quarter of 2017. Consolidated adjusted EBITDA growth of 4.2% during the quarter was in line with our expectations following last year's impressive growth of 8.2%. Consolidated revenues grew 3.0% for the quarter and overall adjusted EBITDA margins improved 30 bps to 19.8% while same store margins improved 20 bps to 27.3%. Our reinvention projects and acquisitions are performing as expected, significantly increasing member usage. Our leverage is 4.27x currently and we remain committed to de-levering the Company to below 4x by mid-2018." |
ClubCorp FY17 Q1 Earnings Release | 2 | Page |
• | First quarter, GCC revenue was up $7.3 million to $179.9 million, up 4.2%. |
• | First quarter, GCC adjusted EBITDA increased $2.7 million to $52.8 million, up 5.4%, and GCC adjusted EBITDA margin increased 40 basis points to 29.4%. |
• | First quarter, GCC same-store revenue increased $5.2 million, up 3.0%. Dues revenue was up 3.5%, food & beverage revenue increased 1.9% and golf operations revenue increased 4.7%. |
• | First quarter, GCC same-store adjusted EBITDA increased $2.5 million, up 5.1%, due largely to improved variable payroll, payroll related and other operating expenses as a percentage of revenue. |
• | First quarter, GCC same-store adjusted EBITDA margin improved 60 basis points to 29.7%. |
• | Clubs acquired in 2016 and 2017 contributed first quarter, GCC revenue of $2.7 million and GCC adjusted EBITDA of $0.2 million. |
• | First quarter, BSA revenue was up $0.2 million to $39.9 million, up 0.6% driven by increases in food & beverage revenue. |
• | First quarter, BSA adjusted EBITDA declined $0.6 million to $6.7 million, down 8.4% largely due to an increase in cost of sales and an increase in variable payroll expenses as a percentage of revenue. |
• | First quarter, BSA adjusted EBITDA margin decreased 160 basis points to 16.7%. |
ClubCorp FY17 Q1 Earnings Release | 3 | Page |
• | O.N.E. and Other Upgrades. As of March 21, 2017 and December 27, 2016, approximately 54% of memberships were enrolled in O.N.E. or similar upgrade programs. As of March 21, 2017, the Company offered O.N.E. at 156 clubs. |
• | Reinvention. In total, for 2017, the Company expects ROI expansion capital to be approximately $44 million. Of this amount, ClubCorp plans to invest approximately $26 million on 7 same-store clubs and approximately $18 million on recently acquired clubs. |
• | Acquisitions. As of March 21, 2017, ClubCorp has acquired three clubs: Eagle's Nest Country Club in Phoenix, Maryland (part of the greater Baltimore MSA), North Hills Country Club in Glenside, Pennsylvania (part of the greater Philadelphia MSA) and Norbeck Country Club in Rockville, Maryland. And today, ClubCorp acquired Oakhurst Golf and Country Club located in Clarkston, Michigan (part of the Detroit MSA). In fiscal year 2016, ClubCorp acquired three clubs: Heritage Golf and Country Club in Hilliard, Ohio (part of the Columbus MSA); Santa Rosa Country Club in Santa Rosa, California; and Marsh Creek Country Club in St. Augustine, Florida. In addition, ClubCorp entered a management agreement to operate the Country Club of Columbus in Columbus, Georgia. As of March 21, 2017, ClubCorp owns or operates 162 golf and country clubs representing approximately 200 18-hole equivalents, of which nine are managed clubs. Additionally, the Company owns or operates 45 business, sports and alumni clubs, of which three are managed clubs. |
• | Membership. Membership totals exclude membership count from managed clubs. As of March 21, 2017, total memberships increased 3,381 to 174,010, up 2.0%, over memberships at March 22, 2016. Total golf and country club memberships increased 3.8%, while total business, sports and alumni club memberships declined 2.1%. |
• | Capital Structure. At the end of the first quarter, the Company had $53.9 million in cash and cash equivalents and total liquidity of approximately $199 million. ClubCorp's total leverage ratio was 4.27x at the end of the first quarter, up slightly from 4.20x at the end of fiscal 2016 with the increase related to a decline in cash during our slowest quarter of the year. |
ClubCorp FY17 Q1 Earnings Release | 4 | Page |
ClubCorp FY17 Q1 Earnings Release | 5 | Page |
ClubCorp FY17 Q1 Earnings Release | 6 | Page |
ClubCorp FY17 Q1 Earnings Release | 7 | Page |
(1) | Adjusted EBITDA is not calculated in accordance with accounting principles generally accepted in the U.S. (“GAAP”). See the “Statement Regarding Non-GAAP Financial Measures” section of this press release for the definition of Adjusted EBITDA and the reconciliation later in this press release to the most comparable financial measure calculated in accordance with GAAP. |
(2) | Clubs are considered same store once they have been fully operational for one fiscal year. Newly acquired or opened clubs, clubs added under management agreements and divested clubs are not classified as same store. Once a club has been divested, it is removed from the same store classification for all periods presented. New or Acquired Clubs include those clubs that the Company is currently operating as of March 21, 2017, that were opened, acquired or added under management agreements in the twelve weeks ended March 21, 2017 and the fiscal year ended December 27, 2016 consisting of: Marsh Creek Country Club, Santa Rosa Golf and Country Club, Country Club of Columbus, Heritage Golf Club, Eagle's Nest Country Club, North Hills Country Club and Norbeck Country Club. |
(3) | Consists of other business activities including ancillary revenues related to alliance arrangements, a portion of the revenue associated with upgrade offerings, reimbursements for certain costs of operations at managed clubs, corporate overhead expenses and shared services. |
ClubCorp FY17 Q1 Earnings Release | 8 | Page |
First quarter ended | |||||||||||
GCC | March 21, 2017 (12 weeks) | March 22, 2016 (12 weeks) | % Change (1) | ||||||||
Same Store Clubs (2) | |||||||||||
Revenue | |||||||||||
Dues | $ | 98,511 | $ | 95,220 | 3.5 | % | |||||
Food and Beverage | 34,457 | 33,805 | 1.9 | % | |||||||
Golf Operations | 31,459 | 30,045 | 4.7 | % | |||||||
Other | 12,786 | 12,903 | (0.9 | )% | |||||||
Revenue | $ | 177,213 | $ | 171,973 | 3.0 | % | |||||
Club operating costs and expenses exclusive of depreciation | $ | 124,633 | $ | 121,924 | 2.2 | % | |||||
Adjusted EBITDA | $ | 52,580 | $ | 50,049 | 5.1 | % | |||||
Adjusted EBITDA Margin | 29.7 | % | 29.1 | % | 60 bps | ||||||
New or Acquired Clubs (2) | |||||||||||
Revenue | $ | 2,702 | $ | 629 | NM | ||||||
Club operating costs and expenses exclusive of depreciation | $ | 2,460 | $ | 555 | NM | ||||||
Adjusted EBITDA | $ | 242 | $ | 74 | NM | ||||||
Total Golf and Country Clubs | |||||||||||
Revenue | $ | 179,915 | $ | 172,602 | 4.2 | % | |||||
Club operating costs and expenses exclusive of depreciation | $ | 127,093 | $ | 122,479 | 3.8 | % | |||||
Adjusted EBITDA | $ | 52,822 | $ | 50,123 | 5.4 | % | |||||
Adjusted EBITDA Margin | 29.4 | % | 29.0 | % | 40 bps | ||||||
Total memberships, excluding managed club memberships | 122,117 | 117,602 | 3.8 | % |
(1) | Percentage changes that are not meaningful are denoted by “NM.” |
(2) | Clubs are considered same store once they have been fully operational for one fiscal year. Newly acquired or opened clubs, clubs added under management agreements and divested clubs are not classified as same store. Once a club has been divested, it is removed from the same store classification for all periods presented. New or Acquired Clubs include those clubs that the Company is currently operating as of March 21, 2017, that were acquired, opened or added under management agreements during the twelve weeks ended March 21, 2017 and the fiscal year ended December 27, 2016 consisting of: Marsh Creek Country Club, Santa Rosa Golf and Country Club, Country Club of Columbus, Heritage Golf Club, Eagle's Nest Country Club, North Hills Country Club and Norbeck Country Club. |
ClubCorp FY17 Q1 Earnings Release | 9 | Page |
First quarter ended | |||||||||||
BSA | March 21, 2017 (12 weeks) | March 22, 2016 (12 weeks) | % Change (1) | ||||||||
Same Store Clubs (2) | |||||||||||
Revenue | |||||||||||
Dues | $ | 18,504 | $ | 18,561 | (0.3 | )% | |||||
Food and Beverage | 18,852 | 18,441 | 2.2 | % | |||||||
Other | 2,535 | 2,640 | (4.0 | )% | |||||||
Revenue | $ | 39,891 | $ | 39,642 | 0.6 | % | |||||
Club operating costs and expenses exclusive of depreciation | $ | 33,227 | $ | 32,365 | 2.7 | % | |||||
Adjusted EBITDA | $ | 6,664 | $ | 7,277 | (8.4 | )% | |||||
Adjusted EBITDA Margin | 16.7 | % | 18.4 | % | (170) bps | ||||||
New or Acquired Clubs (2) | |||||||||||
Revenue | $ | — | $ | — | NM | ||||||
Club operating costs and expenses exclusive of depreciation | $ | — | $ | 3 | NM | ||||||
Adjusted EBITDA | $ | — | $ | (3 | ) | NM | |||||
Total Business, Sports and Alumni Clubs | |||||||||||
Revenue | $ | 39,891 | $ | 39,642 | 0.6 | % | |||||
Club operating costs and expenses exclusive of depreciation | $ | 33,227 | $ | 32,368 | 2.7 | % | |||||
Adjusted EBITDA | $ | 6,664 | $ | 7,274 | (8.4 | )% | |||||
Adjusted EBITDA Margin | 16.7 | % | 18.3 | % | (160) bps | ||||||
Total memberships, excluding managed club memberships | 51,893 | 53,027 | (2.1 | )% |
(2) | Clubs are considered same store once they have been fully operational for one fiscal year. Newly acquired or opened clubs, clubs added under management agreements and divested clubs are not classified as same store. Once a club has been divested, it is removed from the same store classification for all periods presented. New or Acquired Clubs include those clubs which are under development or that the Company is currently operating as of March 21, 2017, that were opened or added under management agreements during the twelve weeks ended March 21, 2017 and the fiscal year ended December 27, 2016. |
ClubCorp FY17 Q1 Earnings Release | 10 | Page |
First quarter ended | Four Quarters Ended | |||||||||||
March 21, 2017 (12 weeks) | March 22, 2016 (12 weeks) | March 21, 2017 (52 weeks) | ||||||||||
Net (loss) income | $ | (7,506 | ) | $ | (8,313 | ) | $ | 4,832 | ||||
Interest expense | 19,550 | 20,420 | 86,318 | |||||||||
Income tax (benefit) expense | (4,513 | ) | (5,537 | ) | 2,372 | |||||||
Interest and investment income | (165 | ) | (126 | ) | (647 | ) | ||||||
Depreciation and amortization | 24,996 | 24,214 | 107,982 | |||||||||
EBITDA | $ | 32,362 | $ | 30,658 | $ | 200,857 | ||||||
Impairments and disposition of assets (1) | 2,934 | 2,917 | 16,991 | |||||||||
Loss from divested clubs (2) | 217 | 458 | 379 | |||||||||
Non-cash adjustments (3) | — | 463 | (208 | ) | ||||||||
Acquisition related costs (4) | 595 | 686 | 1,318 | |||||||||
Capital structure costs (5) | — | 742 | 1,098 | |||||||||
Centralization and transformation costs (6) | 2,398 | 2,418 | 9,786 | |||||||||
Other adjustments (7) | 2,230 | 1,086 | 6,220 | |||||||||
Equity-based compensation expense (8) | 1,939 | 1,170 | 7,774 | |||||||||
Deferred revenue adjustment (9) | 1,066 | 1,392 | 5,093 | |||||||||
Adjusted EBITDA | $ | 43,741 | $ | 41,990 | $ | 249,308 |
First quarter ended | Four Quarters Ended | |||||||||||
March 21, 2017 (12 weeks) | March 22, 2016 (12 weeks) | March 21, 2017 (52 weeks) | ||||||||||
Net cash provided by operating activities | $ | 17,707 | $ | 22,311 | $ | 153,050 | ||||||
Interest expense | 19,550 | 20,420 | 86,318 | |||||||||
Income tax (benefit) expense | (4,513 | ) | (5,537 | ) | 2,372 | |||||||
Interest and investment income | (165 | ) | (126 | ) | (647 | ) | ||||||
Loss from divested clubs (2) | 217 | 458 | 379 | |||||||||
Non-cash adjustments (3) | — | 463 | (208 | ) | ||||||||
Acquisition related costs (4) | 595 | 686 | 1,318 | |||||||||
Capital structure costs (5) | — | 742 | 1,098 | |||||||||
Centralization and transformation costs (6) | 2,398 | 2,418 | 9,786 | |||||||||
Other adjustments (7) | 2,230 | 1,086 | 6,220 | |||||||||
Deferred revenue adjustment (9) | 1,066 | 1,392 | 5,093 | |||||||||
Certain adjustments to reconcile net (loss) income to operating cash flows (10) | 4,656 | (2,323 | ) | (15,471 | ) | |||||||
Adjusted EBITDA | $ | 43,741 | $ | 41,990 | $ | 249,308 |
ClubCorp FY17 Q1 Earnings Release | 11 | Page |
First quarter ended | Four Quarters Ended | |||||||||||
March 21, 2017 (12 weeks) | March 22, 2016 (12 weeks) | March 21, 2017 (52 weeks) | ||||||||||
Golf and Country Clubs Adjusted EBITDA | $ | 52,822 | $ | 50,123 | $ | 263,294 | ||||||
Business, Sports and Alumni Clubs Adjusted EBITDA | 6,664 | 7,274 | 40,851 | |||||||||
Interest expense | (19,550 | ) | (20,420 | ) | (86,318 | ) | ||||||
Interest and investment income | 165 | 126 | 647 | |||||||||
Depreciation and amortization | (24,996 | ) | (24,214 | ) | (107,982 | ) | ||||||
Impairments and disposition of assets (1) | (2,934 | ) | (2,917 | ) | (16,991 | ) | ||||||
Loss from divested clubs (2) | (217 | ) | (458 | ) | (379 | ) | ||||||
Non-cash adjustments (3) | — | (463 | ) | 208 | ||||||||
Acquisition related costs (4) | (595 | ) | (686 | ) | (1,318 | ) | ||||||
Capital structure costs (5) | — | (742 | ) | (1,098 | ) | |||||||
Centralization and transformation costs (6) | (2,398 | ) | (2,418 | ) | (9,786 | ) | ||||||
Other adjustments (7) | (2,230 | ) | (1,086 | ) | (6,220 | ) | ||||||
Equity-based compensation expense (8) | (1,939 | ) | (1,170 | ) | (7,774 | ) | ||||||
Deferred revenue adjustment (9) | (1,066 | ) | (1,392 | ) | (5,093 | ) | ||||||
Corporate expenses and other operations (11) | (15,745 | ) | (15,407 | ) | (54,837 | ) | ||||||
(Loss) income before income taxes | $ | (12,019 | ) | $ | (13,850 | ) | $ | 7,204 |
(1) | Includes non-cash impairment charges related to property and equipment and intangible assets and loss on disposals of assets (including property and equipment disposed of in connection with renovations). |
(2) | Net loss or income from divested clubs that do not qualify as discontinued operations in accordance with GAAP. |
(3) | Includes non-cash items related to purchase accounting associated with the acquisition of ClubCorp, Inc. (“CCI”) in 2006 by affiliates of KSL Capital Partners, LLC (“KSL”). |
(4) | Represents legal and professional fees related to the acquisition of clubs. |
(5) | Represents legal and professional fees related to our capital structure, including debt issuance and amendment costs and equity offering costs. |
(6) | Includes fees and expenses associated with initial compliance with Section 404(b) of the Sarbanes-Oxley Act, which were primarily incurred in fiscal year 2015 and the twelve weeks ended March 22, 2016, and related centralization and transformation of administrative processes, finance processes and related IT systems. |
(7) | Represents adjustments permitted by the credit agreement governing the Secured Credit Facilities including cash distributions from equity method investments less equity in earnings recognized for said investments, income or loss attributable to non-controlling equity interests and expenses paid to an affiliate of KSL. |
(8) | Includes equity-based compensation expense, calculated in accordance with GAAP, related to awards held by certain employees, executives and directors. |
(9) | Represents estimated deferred revenue, calculated using current membership life estimates, related to initiation payments that would have been recognized in the applicable period but for the application of purchase accounting in connection with the acquisition of CCI in 2006 and the acquisition of Sequoia Golf on September 30, 2014. |
ClubCorp FY17 Q1 Earnings Release | 12 | Page |
(10) | Includes the following adjustments to reconcile net loss to net cash provided by operating activities from our Unaudited Consolidated Condensed Statements of Cash Flows: Net change in prepaid expenses and other assets, net change in receivables and membership notes, net change in accounts payable and accrued liabilities, net change in other current liabilities, bad debt expense, equity in loss (earnings) from unconsolidated ventures, gain on investment in unconsolidated ventures, distribution from investment in unconsolidated ventures, debt issuance costs and term loan discount, accretion of discount on member deposits, net change in deferred tax assets and liabilities and net change in other long-term liabilities. Certain other adjustments to reconcile net income (loss) to net cash provided by operating activities are not included as they are excluded from both net cash provided by operating activities and Adjusted EBITDA. |
(11) | Includes other business activities including ancillary revenues related to alliance arrangements, a portion of the revenue associated with upgrade offerings, costs of operations at managed clubs, corporate overhead expenses and shared services expenses. |
ClubCorp FY17 Q1 Earnings Release | 13 | Page |
First quarter ended | ||||||||
March 21, 2017 (12 weeks) | March 22, 2016 (12 weeks) | |||||||
Revenues | ||||||||
Golf and Country Clubs (1) | $ | 179,915 | $ | 172,602 | ||||
Business, Sports and Alumni Clubs (1) | 39,891 | 39,642 | ||||||
Other operations | 3,959 | 3,516 | ||||||
Elimination of intersegment revenues and segment reporting adjustments | (2,894 | ) | (3,098 | ) | ||||
Revenues relating to divested clubs (2) | 407 | 2,211 | ||||||
Total consolidated revenues | $ | 221,278 | $ | 214,873 | ||||
Golf and Country Clubs Adjusted EBITDA | $ | 52,822 | $ | 50,123 | ||||
Business, Sports and Alumni Clubs Adjusted EBITDA | $ | 6,664 | $ | 7,274 |
(1) | Includes segment reporting adjustments representing estimated deferred revenue, calculated using current membership life estimates, related to initiation payments that would have been recognized in the applicable period but for the application of purchase accounting in connection with the acquisition of CCI in 2006 and the acquisition of Sequoia Golf on September 30, 2014. |
(2) | When clubs are divested, the associated revenues are excluded from segment results for all periods presented. |
ClubCorp FY17 Q1 Earnings Release | 14 | Page |
First quarter ended | |||||||||||
March 21, 2017 (12 weeks) | March 22, 2016 (12 weeks) | % Change | |||||||||
REVENUES: | |||||||||||
Club operations | $ | 166,161 | $ | 160,689 | 3.4 | % | |||||
Food and beverage | 54,061 | 52,856 | 2.3 | % | |||||||
Other revenues | 1,056 | 1,328 | (20.5 | )% | |||||||
Total revenues | 221,278 | 214,873 | 3.0 | % | |||||||
DIRECT AND SELLING, GENERAL AND ADMINISTRATIVE EXPENSES: | |||||||||||
Club operating costs exclusive of depreciation | 146,297 | 142,354 | 2.8 | % | |||||||
Cost of food and beverage sales exclusive of depreciation | 19,661 | 18,840 | 4.4 | % | |||||||
Depreciation and amortization | 24,996 | 24,214 | 3.2 | % | |||||||
Provision for doubtful accounts | 909 | 380 | 139.2 | % | |||||||
Loss on disposals of assets | 2,934 | 2,917 | 0.6 | % | |||||||
Equity in (earnings) loss from unconsolidated ventures | (2,181 | ) | 15 | (14,640.0 | )% | ||||||
Selling, general and administrative | 21,296 | 19,709 | 8.1 | % | |||||||
OPERATING INCOME | 7,366 | 6,444 | 14.3 | % | |||||||
Interest and investment income | 165 | 126 | 31.0 | % | |||||||
Interest expense | (19,550 | ) | (20,420 | ) | 4.3 | % | |||||
LOSS BEFORE INCOME TAXES | (12,019 | ) | (13,850 | ) | 13.2 | % | |||||
INCOME TAX BENEFIT | 4,513 | 5,537 | (18.5 | )% | |||||||
NET LOSS | (7,506 | ) | (8,313 | ) | 9.7 | % | |||||
NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (17 | ) | (101 | ) | 83.2 | % | |||||
NET LOSS ATTRIBUTABLE TO CLUBCORP | $ | (7,523 | ) | $ | (8,414 | ) | 10.6 | % | |||
WEIGHTED AVERAGE SHARES OUTSTANDING, BASIC | 64,442 | 64,474 | — | % | |||||||
WEIGHTED AVERAGE SHARES OUTSTANDING, DILUTED | 64,442 | 64,474 | — | % | |||||||
LOSS PER COMMON SHARE: | |||||||||||
Net loss attributable to ClubCorp, Basic | $ | (0.12 | ) | $ | (0.13 | ) | 7.7 | % | |||
Net loss attributable to ClubCorp, Diluted | $ | (0.12 | ) | $ | (0.13 | ) | 7.7 | % | |||
Cash dividends declared per common share | $ | 0.13 | $ | 0.13 | — | % |
ClubCorp FY17 Q1 Earnings Release | 15 | Page |
First quarter ended | |||||||||||
March 21, 2017 (12 weeks) | March 22, 2016 (12 weeks) | % Change | |||||||||
NET LOSS | $ | (7,506 | ) | $ | (8,313 | ) | 9.7 | % | |||
Foreign currency translation | 894 | (81 | ) | 1,203.7 | % | ||||||
OTHER COMPREHENSIVE INCOME (LOSS) | 894 | (81 | ) | 1,203.7 | % | ||||||
COMPREHENSIVE LOSS | (6,612 | ) | (8,394 | ) | 21.2 | % | |||||
COMPREHENSIVE INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (17 | ) | (101 | ) | 83.2 | % | |||||
COMPREHENSIVE LOSS ATTRIBUTABLE TO CLUBCORP | $ | (6,629 | ) | $ | (8,495 | ) | 22.0 | % |
ClubCorp FY17 Q1 Earnings Release | 16 | Page |
March 21, 2017 | December 27, 2016 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 53,888 | $ | 84,601 | |||
Receivables, net of allowances | 84,931 | 79,115 | |||||
Inventories | 25,437 | 22,743 | |||||
Prepaids and other assets | 23,614 | 16,116 | |||||
Total current assets | 187,870 | 202,575 | |||||
Investments | 3,750 | 1,569 | |||||
Property and equipment, net | 1,564,379 | 1,553,382 | |||||
Notes receivable, net of allowances | 8,258 | 8,161 | |||||
Goodwill | 312,811 | 312,811 | |||||
Intangibles, net | 29,187 | 29,348 | |||||
Other assets | 16,591 | 16,615 | |||||
Long-term deferred tax asset | 4,253 | 4,253 | |||||
TOTAL ASSETS | $ | 2,127,099 | $ | 2,128,714 | |||
LIABILITIES AND EQUITY | |||||||
CURRENT LIABILITIES: | |||||||
Current maturities of long-term debt | $ | 19,811 | $ | 19,422 | |||
Membership initiation deposits - current portion | 173,597 | 170,355 | |||||
Accounts payable | 27,811 | 39,260 | |||||
Accrued expenses | 47,667 | 42,539 | |||||
Accrued taxes | 13,769 | 19,256 | |||||
Other liabilities | 93,925 | 71,092 | |||||
Total current liabilities | 376,580 | 361,924 | |||||
Long-term debt | 1,067,612 | 1,067,071 | |||||
Membership initiation deposits | 205,848 | 205,076 | |||||
Deferred tax liability, net | 205,088 | 209,347 | |||||
Other liabilities | 134,022 | 132,909 | |||||
Total liabilities | 1,989,150 | 1,976,327 | |||||
EQUITY | |||||||
Common stock, $0.01 par value, 200,000,000 shares authorized; 65,752,114 and 65,498,897 issued and outstanding at March 21, 2017 and December 27, 2016, respectively | 658 | 655 | |||||
Additional paid-in capital | 228,042 | 235,871 | |||||
Accumulated other comprehensive loss | (8,744 | ) | (9,638 | ) | |||
Accumulated deficit | (89,783 | ) | (82,260 | ) | |||
Treasury stock, at cost (192,989 shares at March 21, 2017 and December 27, 2016) | (2,258 | ) | (2,258 | ) | |||
Total stockholders’ equity | 127,915 | 142,370 | |||||
Noncontrolling interests in consolidated subsidiaries and variable interest entities | 10,034 | 10,017 | |||||
Total equity | 137,949 | 152,387 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 2,127,099 | $ | 2,128,714 |
ClubCorp FY17 Q1 Earnings Release | 17 | Page |
First quarter ended | |||||||
March 21, 2017 (12 weeks) | March 22, 2016 (12 weeks) | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net loss | $ | (7,506 | ) | $ | (8,313 | ) | |
Adjustments to reconcile net loss to cash flows from operating activities: | |||||||
Depreciation | 24,834 | 23,674 | |||||
Amortization | 161 | 540 | |||||
Bad debt expense | 909 | 421 | |||||
Equity in (earnings) loss from unconsolidated ventures | (2,181 | ) | 15 | ||||
Loss on disposals of assets | 2,934 | 2,917 | |||||
Debt issuance costs and term loan discount | 907 | 1,843 | |||||
Accretion of discount on member deposits | 4,566 | 4,512 | |||||
Equity-based compensation | 1,939 | 1,170 | |||||
Net change in deferred tax assets and liabilities | (4,259 | ) | (4,844 | ) | |||
Net change in prepaid expenses and other assets | (10,095 | ) | (3,898 | ) | |||
Net change in receivables and membership notes | (5,886 | ) | (6,443 | ) | |||
Net change in accounts payable and accrued liabilities | (5,957 | ) | (4,420 | ) | |||
Net change in other current liabilities | 16,871 | 15,512 | |||||
Net change in other long-term liabilities | 470 | (375 | ) | ||||
Net cash provided by operating activities | 17,707 | 22,311 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Purchase of property and equipment | (23,432 | ) | (20,309 | ) | |||
Acquisition of clubs | (9,299 | ) | (6,600 | ) | |||
Proceeds from dispositions | 3 | 8 | |||||
Proceeds from insurance | 60 | — | |||||
Net change in restricted cash and capital reserve funds | 79 | 88 | |||||
Net cash used in investing activities | (32,589 | ) | (26,813 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Repayments of long-term debt | (5,104 | ) | (4,709 | ) | |||
Debt issuance and modification costs | (25 | ) | (920 | ) | |||
Dividends to owners | (8,568 | ) | (8,466 | ) | |||
Share repurchases for tax withholdings related to certain equity-based awards | (1,257 | ) | (226 | ) | |||
Proceeds from new membership initiation deposits | 31 | 52 | |||||
Repayments of membership initiation deposits | (447 | ) | (384 | ) | |||
Net cash used in financing activities | (15,370 | ) | (14,653 | ) | |||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (461 | ) | 81 | ||||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (30,713 | ) | (19,074 | ) | |||
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 84,601 | 116,347 | |||||
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 53,888 | $ | 97,273 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||
Cash paid for interest | $ | 7,763 | $ | 2,359 | |||
Cash paid for income taxes | $ | 1,026 | $ | 407 |
ClubCorp FY17 Q1 Earnings Release | 18 | Page |