DALLAS, TX--(Marketwired - October 15, 2015) -
ClubCorp -- The World Leader in Private Clubs® (
Third Quarter Results:
FY15 Year-to-date Results:
2015 Third Quarter and Year to Date Summary: | |||||||||||||||||||||||
(Unaudited financial information) | |||||||||||||||||||||||
Third quarter ended | Year to date ended | ||||||||||||||||||||||
(In thousands, except for membership data) | September 8, 2015 (12 weeks) |
September 9, 2014 (12 weeks) |
% Change |
September 8, 2015 (36 weeks) |
September 9, 2014 (36 weeks) |
% Change |
|||||||||||||||||
Total Revenue | $ | 255,360 | $ | 204,475 | 24.9 | % | $ | 721,179 | $ | 581,616 | 24.0 | % | |||||||||||
Adjusted EBITDA (1) | |||||||||||||||||||||||
Golf and Country Clubs | $ | 58,146 | $ | 46,830 | 24.2 | % | $ | 164,823 | $ | 133,016 | 23.9 | % | |||||||||||
Business, Sports and Alumni Clubs | $ | 5,989 | $ | 5,702 | 5.0 | % | $ | 22,692 | $ | 20,198 | 12.3 | % | |||||||||||
Other | $ | (9,203 | ) | $ | (7,213 | ) | (27.6 | )% | $ | (33,504 | ) | $ | (26,287 | ) | (27.5 | )% | |||||||
Adjusted EBITDA (1) | $ | 54,932 | $ | 45,319 | 21.2 | % | $ | 154,011 | $ | 126,927 | 21.3 | % | |||||||||||
Total Club Memberships, excluding managed clubs | 175,162 | 145,634 | 20.3 | % | 175,162 | 145,634 | 20.3 | % | |||||||||||||||
Total Club Memberships, including managed clubs | 184,891 | 151,823 | 21.8 | % | 184,891 | 151,823 | 21.8 | % | |||||||||||||||
Quotes:
Segment Highlights:
Golf and country clubs (GCC):
Business, sports and alumni clubs (BSA):
Other Data:
Company Outlook:
The following guidance is based on current management expectations. All financial guidance amounts are estimates and subject to change, including as a result of matters discussed under the "Forward-Looking Statements" cautionary language which follows, and the Company undertakes no duty to update its guidance. For fiscal year 2015, the Company is tightening its outlook on revenue and adjusted EBITDA. The Company now anticipates revenue in the range of $1.04 billion to $1.06 billion and adjusted EBITDA in the range of $232.0 million to $236.0 million. The current outlook implies year-over-year revenue growth of 18-20% and year-over-year adjusted EBITDA growth of 18-20%.
As a reminder, the Company has a stated objective to reach $300.0 million in annual adjusted EBITDA by the end of 2018 through the combination of organic growth and reinvention. Additionally, this target assumes no incremental acquisitions. The Company continues to reaffirm this target with no changes to the underlying assumptions as presented on our first quarter earnings release, dated April 30, 2015, and represented in today's earnings presentation that may be found on our investor relations website at ir.clubcorp.com.
About ClubCorp Holdings:
Since its founding in 1957, Dallas-based ClubCorp has operated with the central purpose of Building Relationships and Enriching Lives®. ClubCorp is a leading owner-operator of private golf and country clubs and private business clubs in North America. ClubCorp owns or operates a portfolio of over 200 golf and country clubs, business clubs, sports clubs, and alumni clubs in 26 states, the District of Columbia and two foreign countries that serve over 430,000 members, with approximately 20,000 peak-season employees. ClubCorp Holdings, Inc. is a publicly traded company on the New York Stock Exchange (
Conference Call:
The Company's earnings presentation is available at ir.clubcorp.com. The Company will hold a conference call on Thursday, October 15, 2015 at 10:00 a.m. CDT (11:00 a.m. EDT) to discuss its third quarter 2015 financial results. The conference call will be broadcast live and can be accessed via the Company's website at ir.clubcorp.com. To participate in the teleconference, please call in a few minutes before the start time: 877-317-6789 for U.S. callers, 866-605-3852 for Canadian callers and 412-317-6789 for international callers and reference the ClubCorp third quarter conference call (confirmation code 10072885) when prompted. For those unable to participate in the live call, a replay of the earnings conference call will be available approximately one hour after the call through November 15, 2015. To access the replay dial: 877-344-7529 for U.S. callers, 855-669-9658 for Canadian callers and 412-317-0088 for international callers (confirmation code 10072885). Additionally, a webcast replay will be available at ir.clubcorp.com.
Statement Regarding Non-GAAP Financial Measures
EBITDA is defined as net income before interest expense, income taxes, interest and investment income, and depreciation and amortization. Adjusted EBITDA is defined as EBITDA plus or minus impairments, gain or loss on disposition and acquisition of assets, losses from discontinued operations, loss on extinguishment of debt, non-cash and other adjustments, equity-based compensation expense and an acquisition adjustment. The acquisition adjustment to revenues and Adjusted EBITDA within each segment represents estimated deferred revenue 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 ClubCorp, Inc. in 2006 by affiliates of KSL and the acquisition of Sequoia Golf on September 30, 2014. Adjusted EBITDA is based on the definition of Consolidated EBITDA as defined in the credit agreement governing the Secured Credit Facilities and may not be comparable to similarly titled measures reported by other companies.
In addition to Adjusted EBITDA, we are providing a Levered Free Cash Flow (FCF) metric as an additional non-GAAP measure. We believe a FCF metric aids investors in their evaluation of the Company's ability to generate cash, and determine the amount of capital available for general corporate purposes including, but not limited to discretionary growth CAPEX (e.g., reinventions or acquisitions), or cash dividends.
This earnings release and accompanying financial tables include supplemental non-GAAP financial measures titled Adjusted EBITDA and Levered Free Cash Flow. Adjusted EBITDA and Levered Free Cash Flow are not determined in accordance with GAAP and should not be considered in isolation, more meaningful than or as a substitute for a measure of performance prepared in accordance with GAAP and are not indicative of net income or loss as determined under GAAP. Non-GAAP financial measures have limitations that should be considered before used as measures to evaluate the Company's financial performance. Adjusted EBITDA and Levered Free Cash Flow, as presented, may not be comparable to similarly titled measures reported by other companies due to varying methods of calculation.
The financial statement tables that accompany this press release include a reconciliation of historical non-GAAP financial measures to the applicable and most comparable GAAP financial measure. The Company has not reconciled Adjusted EBITDA guidance included in this press release to the most directly comparable GAAP measure because this cannot be done without unreasonable effort.
Special Note on Forward-Looking Statements
In addition to historical information, this press release contains statements relating to future results (including certain projections and business trends) that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the "safe harbor" created by those sections. These forward-looking statements can be identified by the fact that they do not relate strictly to current or historical facts and often include words such as "may", "should", "expect", "intend", "will", "estimate", "anticipate", "believe", "predict", "potential" or "continue", or the negatives of these terms or variations of them or similar terminology in this press release and any attachment to identify forward-looking statements. All statements, other than statements of historical facts included in this press release, including statements concerning plans, objectives, goals, beliefs, business strategies, future events, business conditions, results of operations, financial position and business outlook, earnings guidance, business trends and other information are forward-looking statements. The forward-looking statements are not historical facts, and are based upon current expectations, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond management's control. All expectations, beliefs and projections are expressed in good faith and the Company believes there is a reasonable basis for them. However, there can be no assurance that management's expectations, beliefs and projections will result or be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements.
These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements contained in this press release, including among others: various factors beyond management's control adversely affecting discretionary spending, membership count and facility usage and other risks, uncertainties and factors set forth in the sections entitled "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Statements" in the Company's Annual Report on Form 10-K for the fiscal year ended December 30, 2014 and "Risk Factors" and "Forward-Looking Statements" in its Quarterly Report on Form 10-Q for the period ended September 8, 2015.
Although the Company believes that these statements are based upon reasonable assumptions, it cannot guarantee future results and readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date of this press release. There can be no assurance that (i) the Company has correctly measured or identified all of the factors affecting its business or the extent of these factors' likely impact, (ii) the available information with respect to these factors on which such analysis is based is complete or accurate, (iii) such analysis is correct or (iv) the Company's strategy, which is based in part on this analysis, will be successful. Except as required by law, the Company undertakes no obligation to update or revise forward-looking statements to reflect new information or events or circumstances that occur after the date of this press release or to reflect the occurrence of unanticipated events or otherwise. Readers are advised to review the Company's filings with the SEC (which are available from the SEC's EDGAR database at www.sec.gov and via the Company's website at ir.clubcorp.com/SEC).
Statement Regarding Definitions and Financial Measures
The definitions and basis of presentation for financial measures used in this press release, including EBITDA, Adjusted EBITDA and same-store measures, are discussed more fully in the Company's Annual Report on Form 10-K for the fiscal year ended December 30, 2014 and in its Quarterly Report on Form 10-Q for the period ended September 8, 2015. This press release should be read in conjunction with such Annual Report and Quarterly Report.
Notes:
(Financial Tables Follow)
CLUBCORP HOLDINGS, INC. | ||||||||||||||||||||||||
SELECTED FINANCIAL DATA -- GOLF AND COUNTRY CLUBS (GCC) | ||||||||||||||||||||||||
(In thousands, except for memberships, dues per average same-store membership, revenue per average same-store membership and percentages) | ||||||||||||||||||||||||
(Unaudited financial information) | ||||||||||||||||||||||||
Third quarter ended | Year to date ended | |||||||||||||||||||||||
GCC | September 8, 2015 (12 weeks) |
September 9, 2014 (12 weeks) |
% Change(1) |
September 8, 2015 (36 weeks) |
September 9, 2014 (36 weeks) |
% Change(1) |
||||||||||||||||||
Same Store Clubs | ||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||
Dues | $ | 74,183 | $ | 71,758 | 3.4 | % | $ | 218,574 | $ | 210,598 | 3.8 | % | ||||||||||||
Food and Beverage | 36,467 | 35,955 | 1.4 | % | 104,049 | 101,828 | 2.2 | % | ||||||||||||||||
Golf Operations | 39,275 | 39,221 | 0.1 | % | 103,095 | 103,770 | (0.7 | )% | ||||||||||||||||
Other | 13,307 | 13,823 | (3.7 | )% | 35,092 | 35,973 | (2.4 | )% | ||||||||||||||||
Revenue | $ | 163,232 | $ | 160,757 | 1.5 | % | $ | 460,810 | $ | 452,169 | 1.9 | % | ||||||||||||
Club operating costs and expenses exclusive of depreciation | $ | 114,981 | $ | 114,395 | 0.5 | % | $ | 321,908 | $ | 319,689 | 0.7 | % | ||||||||||||
Adjusted EBITDA | $ | 48,251 | $ | 46,362 | 4.1 | % | $ | 138,902 | $ | 132,480 | 4.8 | % | ||||||||||||
Adjusted EBITDA Margin | 29.6 | % | 28.8 | % | 80 bps | 30.1 | % | 29.3 | % | 80 bps | ||||||||||||||
New or Acquired Clubs (2) | ||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||
Dues | $ | 22,132 | $ | 1,891 | NM | $ | 59,273 | $ | 3,449 | NM | ||||||||||||||
Food and Beverage | 10,395 | 863 | NM | 26,222 | 1,848 | NM | ||||||||||||||||||
Golf Operations | 12,380 | 1,084 | NM | 29,330 | 1,918 | NM | ||||||||||||||||||
Other | 2,827 | 177 | NM | 7,830 | 283 | NM | ||||||||||||||||||
Revenue | $ | 47,734 | $ | 4,015 | NM | $ | 122,655 | $ | 7,498 | NM | ||||||||||||||
Club operating costs and expenses exclusive of depreciation | $ | 37,839 | $ | 3,547 | NM | $ | 96,734 | $ | 6,962 | NM | ||||||||||||||
Adjusted EBITDA | $ | 9,895 | $ | 468 | NM | $ | 25,921 | $ | 536 | NM | ||||||||||||||
Total Golf and Country Clubs | ||||||||||||||||||||||||
Revenue | $ | 210,966 | $ | 164,772 | 28.0 | % | $ | 583,465 | $ | 459,667 | 26.9 | % | ||||||||||||
Club operating costs and expenses exclusive of depreciation | $ | 152,820 | $ | 117,942 | 29.6 | % | $ | 418,642 | $ | 326,651 | 28.2 | % | ||||||||||||
Adjusted EBITDA | $ | 58,146 | $ | 46,830 | 24.2 | % | $ | 164,823 | $ | 133,016 | 23.9 | % | ||||||||||||
Adjusted EBITDA Margin | 27.6 | % | 28.4 | % | (80) bps | 28.2 | % | 28.9 | % | (70) bps | ||||||||||||||
Same-store memberships, excluding managed club memberships | 86,482 | 86,563 | (0.1 | )% | 86,482 | 86,563 | (0.1 | )% | ||||||||||||||||
Same-store average membership, excluding managed club memberships (3) | 86,308 | 86,259 | 0.1 | % | 85,683 | 85,046 | 0.7 | % | ||||||||||||||||
Dues per average same-store membership, excluding managed club memberships (4) | $ | 860 | $ | 832 | 3.4 | % | $ | 2,551 | $ | 2,476 | 3.0 | % | ||||||||||||
Revenue per average same-store membership, excluding managed club memberships (4) | $ | 1,891 | $ | 1,864 | 1.4 | % | $ | 5,378 | $ | 5,317 | 1.1 | % |
(1) | Percentage changes that are not meaningful are denoted by "NM." | |
(2) | New or Acquired Clubs include those clubs that the Company is currently operating as of September 8, 2015, that were acquired, opened or added under management agreements during the thirty-six weeks ended September 8, 2015 and the fiscal year ended December 30, 2014 consisting of: The Clubs of Prestonwood, Tournament Players Club ("TPC") Michigan, TPC Piper Glen, Oro Valley Country Club, River Run Golf & Country Club, Sequoyah National Golf Club, Ravinia Green Country Club, Rolling Green Country Club, Bermuda Run Country Club, Brookfield Country Club, Firethorne Country Club, Temple Hills Country Club, Ford's Colony Country Club, Legacy Golf Club at Lakewood Ranch and 30 owned golf and country clubs, three leased golf and country clubs and seven managed golf and country clubs acquired through the Sequoia Golf acquisition. | |
(3) | Same-store average membership, excluding managed club memberships, is calculated using the same-store membership count, excluding managed clubs, at the beginning and end of the period indicated. | |
(4) | Same-store dues or revenue divided by same-store average membership, excluding managed club memberships. | |
CLUBCORP HOLDINGS, INC. | ||||||||||||||||||||||||
SELECTED FINANCIAL DATA-BUSINESS, SPORTS AND ALUMNI CLUBS (BSA) | ||||||||||||||||||||||||
(In thousands, except for memberships, dues per average same-store membership, revenue per average same-store membership and percentages) | ||||||||||||||||||||||||
(Unaudited financial information) | ||||||||||||||||||||||||
Third quarter ended | Year to date ended | |||||||||||||||||||||||
BSA | September 8, 2015 (12 weeks) |
September 9, 2014 (12 weeks) |
% Change(1) |
September 8, 2015 (36 weeks) |
September 9, 2014 (36 weeks) |
% Change(1) |
||||||||||||||||||
Same Store Clubs | ||||||||||||||||||||||||
Revenue | ||||||||||||||||||||||||
Dues | $ | 18,642 | $ | 17,942 | 3.9 | % | $ | 55,867 | $ | 53,631 | 4.2 | % | ||||||||||||
Food and Beverage | 18,021 | 17,933 | 0.5 | % | 60,438 | 58,178 | 3.9 | % | ||||||||||||||||
Other | 2,652 | 2,612 | 1.5 | % | 7,864 | 7,615 | 3.3 | % | ||||||||||||||||
Revenue | $ | 39,315 | $ | 38,487 | 2.2 | % | $ | 124,169 | $ | 119,424 | 4.0 | % | ||||||||||||
Club operating costs and expenses exclusive of depreciation | $ | 33,409 | $ | 32,580 | 2.5 | % | $ | 101,754 | $ | 98,949 | 2.8 | % | ||||||||||||
Adjusted EBITDA | $ | 5,906 | $ | 5,907 | - | % | $ | 22,415 | $ | 20,475 | 9.5 | % | ||||||||||||
Adjusted EBITDA Margin | 15.0 | % | 15.3 | % | (30) bps | 18.1 | % | 17.1 | % | 100 bps | ||||||||||||||
New or Acquired Clubs(2) | ||||||||||||||||||||||||
Revenue | $ | 1,241 | $ | 391 | NM | $ | 3,373 | $ | 394 | NM | ||||||||||||||
Club operating costs and expenses exclusive of depreciation | $ | 1,158 | $ | 596 | NM | $ | 3,096 | $ | 671 | NM | ||||||||||||||
Adjusted EBITDA | $ | 83 | $ | (205 | ) | NM | $ | 277 | $ | (277 | ) | NM | ||||||||||||
Total Business, Sports and Alumni Clubs | ||||||||||||||||||||||||
Revenue | $ | 40,556 | $ | 38,878 | 4.3 | % | $ | 127,542 | $ | 119,818 | 6.4 | % | ||||||||||||
Club operating costs and expenses exclusive of depreciation | $ | 34,567 | $ | 33,176 | 4.2 | % | $ | 104,850 | $ | 99,620 | 5.2 | % | ||||||||||||
Adjusted EBITDA | $ | 5,989 | $ | 5,702 | 5.0 | % | $ | 22,692 | $ | 20,198 | 12.3 | % | ||||||||||||
Adjusted EBITDA Margin | 14.8 | % | 14.7 | % | 10 bps | 17.8 | % | 16.9 | % | 90 bps | ||||||||||||||
Same-store memberships, excluding managed club memberships | 54,490 | 55,281 | (1.4 | )% | 54,490 | 55,281 | (1.4 | )% | ||||||||||||||||
Same-store average membership, excluding managed club memberships (3) | 54,499 | 55,207 | (1.3 | )% | 54,777 | 55,007 | (0.4 | )% | ||||||||||||||||
Dues per average same-store membership, excluding managed club memberships (4) | $ | 342 | $ | 325 | 5.2 | % | $ | 1,020 | $ | 975 | 4.6 | % | ||||||||||||
Revenue per average same-store membership, excluding managed club memberships (4) | $ | 721 | $ | 697 | 3.4 | % | $ | 2,267 | $ | 2,171 | 4.4 | % |
(1) | Percentage changes that are not meaningful are denoted by "NM." | |
(2) | New or Acquired Clubs include those clubs that the Company is currently operating as of September 8, 2015, that were opened or added under management agreements during the twelve and thirty-six weeks ended September 8, 2015 and the fiscal year ended December 30, 2014 consisting of Baylor Club and one leased sports club which was acquired through the acquisition of Sequoia Golf. | |
(3) | Same-store average membership, excluding managed club memberships, is calculated using the same-store membership count, excluding managed clubs, at the beginning and end of the period indicated. | |
(4) | Same-store dues or revenue divided by same-store average membership, excluding managed club memberships. | |
CLUBCORP HOLDINGS, INC. | |||||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES TO CLOSEST GAAP MEASURE | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
(Unaudited financial information) | |||||||||||||||||||||
Third quarter ended | Year to date ended | Four Quarters Ended | |||||||||||||||||||
September 8, 2015 (12 weeks) |
September 9, 2014 (12 weeks) |
September 8, 2015 (36 weeks) |
September 9, 2014 (36 weeks) |
September 8, 2015 (52 weeks) |
|||||||||||||||||
Net income (loss) | $ | 1,185 | $ | 3,273 | $ | (3,314 | ) | $ | (17,992 | ) | $ | 28,007 | |||||||||
Interest expense | 16,170 | 12,944 | 48,587 | 44,242 | 69,554 | ||||||||||||||||
Income tax expense (benefit) | 2,018 | 5,802 | (187 | ) | (3,028 | ) | (38,628 | ) | |||||||||||||
Interest and investment income | (2,139 | ) | (1,366 | ) | (3,818 | ) | (1,535 | ) | (4,868 | ) | |||||||||||
Depreciation and amortization | 24,562 | 17,160 | 71,616 | 50,405 | 102,003 | ||||||||||||||||
EBITDA | $ | 41,796 | $ | 37,813 | $ | 112,884 | $ | 72,092 | $ | 156,068 | |||||||||||
Impairments and disposition of assets (1) | 4,631 | 1,744 | 15,423 | 7,242 | 21,024 | ||||||||||||||||
Loss (income) from discontinued operations and divested clubs (2) | 3 | (112 | ) | 211 | (423 | ) | (120 | ) | |||||||||||||
Loss on extinguishment of debt (3) | - | - | - | 31,498 | - | ||||||||||||||||
Non-cash adjustments (4) | 463 | 464 | 1,389 | 1,389 | 2,007 | ||||||||||||||||
Other adjustments (5) | 5,160 | 3,506 | 15,450 | 9,064 | 31,701 | ||||||||||||||||
Equity-based compensation expense (6) | 1,295 | 949 | 3,510 | 3,037 | 4,776 | ||||||||||||||||
Acquisition adjustment (7) | 1,584 | 955 | 5,144 | 3,028 | 7,760 | ||||||||||||||||
Adjusted EBITDA | $ | 54,932 | $ | 45,319 | $ | 154,011 | $ | 126,927 | $ | 223,216 |
(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 discontinued operations and divested clubs that do not qualify as discontinued operations. | |
(3) | Includes loss on extinguishment of debt calculated in accordance with GAAP. | |
(4) | Includes non-cash items related to purchase accounting associated with the acquisition of ClubCorp, Inc. ("CCI") in 2006 by affiliates of KSL and expense recognized for our long-term incentive plan related to fiscal years 2011 through 2013. | |
(5) | Represents adjustments permitted by the credit agreement governing ClubCorp's 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 of continuing operations, fees and expenses associated with readiness efforts for Section 404(b) of the Sarbanes-Oxley Act and related centralization of administrative processes, acquisition costs, debt amendment costs, equity offering costs, other charges incurred in connection with the ClubCorp Formation (as defined in our Annual Report on Form 10-K filed with the SEC on March 12, 2015) and management fees, termination fee and expenses paid to an affiliate of KSL. | |
(6) | Includes equity-based compensation expense, calculated in accordance with GAAP, related to awards held by certain employees, executives and directors. | |
(7) | Represents estimated deferred revenue 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 HOLDINGS, INC. | ||||||||
CALCULATION OF LEVERED FREE CASH FLOW | ||||||||
(In thousands) | ||||||||
(Unaudited financial information) | ||||||||
Four quarters ended | ||||||||
September 8, 2015 (52 weeks) |
September 9, 2014 (53 weeks) |
|||||||
Adjusted EBITDA (1) | $ | 223,216 | $ | 186,917 | ||||
LESS: | ||||||||
Interest expense and principal amortization on long-term debt (2) | 45,078 | 44,370 | ||||||
Cash paid for income taxes | 5,282 | 2,796 | ||||||
Maintenance capital expenditures | 47,508 | 28,162 | ||||||
Capital lease principal & interest expense | 17,111 | 12,436 | ||||||
Levered Free Cash Flow | $ | 108,237 | $ | 99,153 |
(1) | See the Adjusted EBITDA reconciliation in the preceding "Reconciliation of Non-GAAP Measures to Closest GAAP Measure" table. | |
(2) | Interest on long-term debt excludes accretion of discount on member deposits, amortization of debt issuance costs, amortization of term loan discount and interest on notes payable related to certain realty interests which we define as "Non-Core Development Entities". | |
CLUBCORP HOLDINGS, INC. | ||||||||||||||||||||||
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||
AND COMPREHENSIVE LOSS | ||||||||||||||||||||||
For the Twelve and Thirty-Six Weeks Ended September 8, 2015 and September 9, 2014 | ||||||||||||||||||||||
(In thousands of dollars) | ||||||||||||||||||||||
(Unaudited financial information) | ||||||||||||||||||||||
Third quarter ended | Year to date ended | |||||||||||||||||||||
September 8, 2015 (12 weeks) |
September 9, 2014 (12 weeks) |
% Change |
September 8, 2015 (36 weeks) |
September 9, 2014 (36 weeks) |
% Change |
|||||||||||||||||
REVENUES: | ||||||||||||||||||||||
Club operations | $ | 189,705 | $ | 149,373 | 27.0 | % | $ | 526,966 | $ | 418,443 | 25.9 | % | ||||||||||
Food and beverage | 65,102 | 54,684 | 19.1 | % | 191,785 | 161,045 | 19.1 | % | ||||||||||||||
Other revenues | 553 | 418 | 32.3 | % | 2,428 | 2,128 | 14.1 | % | ||||||||||||||
Total revenues | 255,360 | 204,475 | 24.9 | % | 721,179 | 581,616 | 24.0 | % | ||||||||||||||
DIRECT AND SELLING, GENERAL AND ADMINISTRATIVE EXPENSES: | ||||||||||||||||||||||
Club operating costs exclusive of depreciation | 168,542 | 132,774 | 26.9 | % | 474,774 | 377,204 | 25.9 | % | ||||||||||||||
Cost of food and beverage sales exclusive of depreciation | 23,191 | 18,400 | 26.0 | % | 65,317 | 53,338 | 22.5 | % | ||||||||||||||
Depreciation and amortization | 24,562 | 17,160 | 43.1 | % | 71,616 | 50,405 | 42.1 | % | ||||||||||||||
Provision for doubtful accounts | 1,373 | 850 | 61.5 | % | 1,876 | 996 | 88.4 | % | ||||||||||||||
Loss on disposals of assets | 3,587 | 1,744 | 105.7 | % | 13,309 | 6,347 | 109.7 | % | ||||||||||||||
Impairment of assets | 1,044 | - | 100.0 | % | 2,114 | 895 | 136.2 | % | ||||||||||||||
Equity in loss (earnings) from unconsolidated ventures | 479 | (660 | ) | 172.6 | % | 934 | (1,493 | ) | 162.6 | % | ||||||||||||
Selling, general and administrative | 15,348 | 13,553 | 13.2 | % | 49,969 | 40,737 | 22.7 | % | ||||||||||||||
OPERATING INCOME | 17,234 | 20,654 | (16.6 | )% | 41,270 | 53,187 | (22.4 | )% | ||||||||||||||
Interest and investment income | 2,139 | 1,366 | 56.6 | % | 3,818 | 1,535 | 148.7 | % | ||||||||||||||
Interest expense | (16,170 | ) | (12,944 | ) | (24.9 | )% | (48,587 | ) | (44,242 | ) | (9.8 | )% | ||||||||||
Loss on extinguishment of debt | - | - | - | % | - | (31,498 | ) | 100.0 | % | |||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 3,203 | 9,076 | (64.7 | )% | (3,499 | ) | (21,018 | ) | 83.4 | % | ||||||||||||
INCOME TAX (EXPENSE) BENEFIT | (2,018 | ) | (5,802 | ) | 65.2 | % | 187 | 3,028 | (93.8 | )% | ||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS | 1,185 | 3,274 | (63.8 | )% | (3,312 | ) | (17,990 | ) | 81.6 | % | ||||||||||||
Loss from discontinued clubs, net of income tax benefit | - | (1 | ) | 100.0 | % | (2 | ) | (2 | ) | - | % | |||||||||||
NET INCOME (LOSS) | 1,185 | 3,273 | (63.8 | )% | (3,314 | ) | (17,992 | ) | 81.6 | % | ||||||||||||
NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 67 | (63 | ) | 206.3 | % | 148 | (137 | ) | 208.0 | % | ||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO CLUBCORP | $ | 1,252 | $ | 3,210 | (61.0 | )% | $ | (3,166 | ) | $ | (18,129 | ) | 82.5 | % | ||||||||
NET INCOME (LOSS) | $ | 1,185 | $ | 3,273 | (63.8 | )% | $ | (3,314 | ) | $ | (17,992 | ) | 81.6 | % | ||||||||
Foreign currency translation, net of tax | (2,196 | ) | (140 | ) | (1,468.6 | )% | (3,463 | ) | 7 | (49,571.4 | )% | |||||||||||
OTHER COMPREHENSIVE (LOSS) INCOME | (2,196 | ) | (140 | ) | (1,468.6 | )% | (3,463 | ) | 7 | (49,571.4 | )% | |||||||||||
COMPREHENSIVE (LOSS) INCOME | (1,011 | ) | 3,133 | (132.3 | )% | (6,777 | ) | (17,985 | ) | 62.3 | % | |||||||||||
COMPREHENSIVE LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 67 | (63 | ) | 206.3 | % | 148 | (137 | ) | 208.0 | % | ||||||||||||
COMPREHENSIVE (LOSS) INCOME ATTRIBUTABLE TO CLUBCORP | $ | (944 | ) | $ | 3,070 | (130.7 | )% | $ | (6,629 | ) | $ | (18,122 | ) | 63.4 | % | |||||||
CLUBCORP HOLDINGS, INC. | |||||||||||
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS | |||||||||||
As of September 8, 2015 and December 30, 2014 | |||||||||||
(In thousands of dollars, except share and per share amounts) | |||||||||||
(Unaudited financial information) | |||||||||||
September 8, 2015 | December 30, 2014 | ||||||||||
ASSETS | |||||||||||
CURRENT ASSETS: | |||||||||||
Cash and cash equivalents | $ | 47,133 | $ | 75,047 | |||||||
Receivables, net of allowances | 102,753 | 65,337 | |||||||||
Inventories | 23,667 | 20,931 | |||||||||
Prepaids and other assets | 16,539 | 15,776 | |||||||||
Deferred tax assets, net | 26,145 | 26,574 | |||||||||
Total current assets | 216,237 | 203,665 | |||||||||
Investments | 4,311 | 5,774 | |||||||||
Property and equipment, net | 1,538,218 | 1,474,763 | |||||||||
Notes receivable, net of allowances | 5,908 | 8,262 | |||||||||
Goodwill | 312,811 | 312,811 | |||||||||
Intangibles, net | 32,622 | 34,960 | |||||||||
Other assets | 23,549 | 24,836 | |||||||||
TOTAL ASSETS | $ | 2,133,656 | $ | 2,065,071 | |||||||
LIABILITIES AND EQUITY | |||||||||||
CURRENT LIABILITIES: | |||||||||||
Current maturities of long-term debt | $ | 17,409 | $ | 18,025 | |||||||
Membership initiation deposits - current portion | 147,961 | 135,583 | |||||||||
Accounts payable | 32,152 | 31,948 | |||||||||
Accrued expenses | 40,563 | 44,424 | |||||||||
Accrued taxes | 24,384 | 21,903 | |||||||||
Other liabilities | 95,383 | 59,550 | |||||||||
Total current liabilities | 357,852 | 311,433 | |||||||||
Long-term debt | 1,021,864 | 965,187 | |||||||||
Membership initiation deposits | 204,175 | 203,062 | |||||||||
Deferred tax liability, net | 238,946 | 244,113 | |||||||||
Other liabilities | 120,988 | 120,417 | |||||||||
Total liabilities | 1,943,825 | 1,844,212 | |||||||||
EQUITY | |||||||||||
Common stock of ClubCorp Holdings, Inc., $0.01 par value, 200,000,000 shares authorized; 64,744,547 and 64,443,332 issued and outstanding at September 8, 2015 and December 30, 2014, respectively | 647 | 644 | |||||||||
Additional paid-in capital | 269,823 | 293,006 | |||||||||
Accumulated other comprehensive loss | (7,753 | ) | (4,290 | ) | |||||||
Retained deficit | (82,609 | ) | (79,443 | ) | |||||||
Total stockholders' equity | 180,108 | 209,917 | |||||||||
Noncontrolling interests in consolidated subsidiaries and variable interest entities | 9,723 | 10,942 | |||||||||
Total equity | 189,831 | 220,859 | |||||||||
TOTAL LIABILITIES AND EQUITY | $ | 2,133,656 | $ | 2,065,071 | |||||||
CLUBCORP HOLDINGS, INC. | ||||||||||||
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS | ||||||||||||
For the Thirty-Six Weeks Ended September 8, 2015 and September 9, 2014 | ||||||||||||
(In thousands of dollars) | ||||||||||||
(Unaudited financial information) | ||||||||||||
Year to date ended | ||||||||||||
September 8, 2015 (36 weeks) |
September 9, 2014 (36 weeks) |
|||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
Net loss | $ | (3,314 | ) | $ | (17,992 | ) | ||||||
Adjustments to reconcile net loss to cash flows from operating activities: | ||||||||||||
Depreciation | 69,577 | 50,103 | ||||||||||
Amortization | 2,040 | 302 | ||||||||||
Asset impairments | 2,114 | 895 | ||||||||||
Bad debt expense | 1,937 | 1,012 | ||||||||||
Equity in loss (earnings) from unconsolidated ventures | 934 | (1,493 | ) | |||||||||
Gain on investment in unconsolidated ventures | (3,507 | ) | (1,276 | ) | ||||||||
Distribution from investment in unconsolidated ventures | 4,035 | 4,290 | ||||||||||
Loss on disposals of assets | 13,309 | 6,343 | ||||||||||
Debt issuance costs and amortization of term loan discount | 3,284 | 5,784 | ||||||||||
Accretion of discount on member deposits | 14,063 | 14,211 | ||||||||||
Amortization of above and below market rent intangibles | (245 | ) | (236 | ) | ||||||||
Equity-based compensation | 3,510 | 3,037 | ||||||||||
Redemption premium payment included in loss on extinguishment of debt | - | 27,452 | ||||||||||
Net change in deferred tax assets and liabilities | (4,738 | ) | (8,098 | ) | ||||||||
Net change in prepaid expenses and other assets | (3,206 | ) | (4,390 | ) | ||||||||
Net change in receivables and membership notes | (29,269 | ) | 3,462 | |||||||||
Net change in accounts payable and accrued liabilities | (1,967 | ) | (8,204 | ) | ||||||||
Net change in other current liabilities | 34,555 | (443 | ) | |||||||||
Net change in other long-term liabilities | (4,498 | ) | 3,594 | |||||||||
Net cash provided by operating activities | 98,614 | 78,353 | ||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
Purchase of property and equipment | (76,110 | ) | (55,087 | ) | ||||||||
Acquisition of clubs | (55,877 | ) | (17,187 | ) | ||||||||
Acquisition of Sequoia Golf (escrow deposit) | - | (10,000 | ) | |||||||||
Proceeds from dispositions | 578 | 314 | ||||||||||
Net change in restricted cash and capital reserve funds | (63 | ) | (287 | ) | ||||||||
Return of capital in equity investments | - | 126 | ||||||||||
Net cash used in investing activities | (131,472 | ) | (82,121 | ) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
Repayments of long-term debt | (12,046 | ) | (278,668 | ) | ||||||||
Proceeds from new debt borrowings, net of loan discount | - | 348,250 | ||||||||||
Repayments of revolving credit facility borrowings | (10,000 | ) | (11,200 | ) | ||||||||
Proceeds from revolving credit facility borrowings | 57,000 | 11,200 | ||||||||||
Redemption premium payment | - | (27,452 | ) | |||||||||
Debt issuance and modification costs | (1,493 | ) | (2,930 | ) | ||||||||
Distribution to owners | (25,183 | ) | (22,980 | ) | ||||||||
Share repurchases for tax withholdings related to certain equity-based awards | (1,443 | ) | - | |||||||||
Distributions to noncontrolling interest | (1,071 | ) | - | |||||||||
Proceeds from new membership initiation deposits | 520 | 635 | ||||||||||
Repayments of membership initiation deposits | (1,078 | ) | (1,075 | ) | ||||||||
Net cash provided by financing activities | 5,206 | 15,780 | ||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | (262 | ) | 8 | |||||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (27,914 | ) | 12,020 | |||||||||
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD | 75,047 | 53,781 | ||||||||||
CASH AND CASH EQUIVALENTS - END OF PERIOD | $ | 47,133 | $ | 65,801 | ||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||||||
Cash paid for interest | $ | 31,432 | $ | 28,683 | ||||||||
Cash paid for income taxes | $ | 4,515 | $ | 1,956 | ||||||||
Non-cash investing and financing activities are as follows: | ||||||||||||
Capital lease | $ | 20,881 | $ | 14,057 | ||||||||
Image Available: http://www.marketwire.com/library/MwGo/2015/10/14/11G067522/Images/The-Woodlands-Golf-293196836736.jpg
Contact Information:
Patty Jerde
Communications Manager
972-888-7790
Frank Molina
Vice President, Investor Relations and Treasury
972-888-6206