ClubCorp Reports Record Full Year and Fourth Quarter Results, Publishes 2016 Outlook and Announces $50 Million Share Repurchase Program
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/EINPresswire.com/ -- DALLAS, TX--(Marketwired - February 24, 2016) -
- Full-year revenue was $1.1 billion, up 19.1%, while adjusted EBITDA was $233.7 million, up 19.0%
- Fourth quarter revenue was $331.7 million, up 9.6%, while adjusted EBITDA was $79.6 million, up 14.8%
- ClubCorp anticipates 2016 adjusted EBITDA to be between $242 and $252 million
- ClubCorp's Board of Directors has authorized the Company to repurchase up to $50 million of its common stock by December 31, 2017
ClubCorp -- The World Leader in Private Clubs® (NYSE: MYCC) -- announces financial results for its fiscal-year 2015 fourth quarter ended December 29, 2015. The fourth quarter of fiscal 2015 and fiscal 2014 consisted of 16 weeks. Year-to-date results of fiscal 2015 and fiscal 2014 consisted of 52 weeks. All growth percentages refer to year-over-year progress.
Fourth Quarter Results:
- Revenue increased $29.1 million, or 9.6%, to $331.7 million for the fourth quarter of 2015.
-
Adjusted EBITDA
(1) increased $10.2 million to $79.6 million, up 14.8%, driven by higher revenue and improved margin performance across both same-store and new and recently acquired clubs. - Same Store Clubs. Same-store revenue was up $7.1 million, up 2.7%, driven primarily by higher dues revenue, record private events revenue, and improved golf operations revenue. Same-store adjusted EBITDA grew $5.9 million, up 8.0%, due to increased revenue and favorable operating expenses as a percentage of revenue.
-
New or Acquired Clubs.
(2) New clubs opened or acquired in 2014 and 2015 contributed revenue of $61.0 million and adjusted EBITDA of $18.4 million.
Full Year 2015 Results:
- Revenue increased $168.7 million to $1,052.9 million, up 19.1%, reflecting solid same-store revenue growth, and the addition of Sequoia Golf and several other recently acquired clubs.
-
Adjusted EBITDA
(1) increased $37.3 million to $233.7 million, up 19.0%, driven by an increase in dues and food & beverage revenue and favorable operating expenses as a percentage of revenue at same-store clubs, and additional revenue contribution from new and recently acquired clubs. - Same Store Clubs. Same-store revenue was up $20.5 million, up 2.5%, driven primarily by higher dues revenue up 3.7% and food & beverage revenue up 3.2%, offset by golf operations revenue down 0.2%. Same-store adjusted EBITDA grew $14.3 million, up 6.3%. For the full-year, same-store golf and country clubs (GCC) and business, sports and alumni clubs (BSA) adjusted EBITDA margins increased 110 basis points in each segment to 30.6% and 20.5%, respectively.
-
New or Acquired Clubs.
(2) New clubs opened or acquired in 2014 and 2015 contributed revenue $186.4 million and adjusted EBITDA of $44.6 million.
2015 Fourth Quarter and Year to Date Summary:
(Unaudited financial information)
Fourth quarter ended Year ended
-------------------- ---------------------
December December December
(In thousands, 29, 30, December 30,
except for 2015 2014 29, 2014
membership (16 (16 % 2015 (52 %
data) weeks) weeks) Change (52 weeks) weeks) Change
-------------- --------- --------- ------- ---------- --------- ------
Total Revenue $ 331,688 $ 302,539 9.6% $1,052,867 $ 884,155 19.1%
Adjusted
EBITDA (1)
Golf and
Country
Clubs $ 81,305 $ 70,175 15.9% $ 246,111 $ 203,191 21.1%
Business,
Sports and
Alumni
Clubs $ 16,949 $ 14,756 14.9% $ 39,641 $ 34,954 13.4%
Other (3) $ (18,615) $ (15,535) (19.8)% $ (52,090) $ (41,822) (24.6)%
--------- --------- ------- ---------- --------- ------
Adjusted
EBITDA (1) $ 79,639 $ 69,396 14.8% $ 233,662 $ 196,323 19.0%
========= ========= ======= ========== ========= ======
Total Club
Memberships,
excluding
managed clubs 172,939 168,173 2.8%
Quotes:
- Eric Affeldt, president and chief executive officer: "We delivered another year of record revenues and adjusted EBITDA and are positioned for excellent results again in 2016. The fundamentals of our business remain intact and continue to support our growth and investment strategies, which have driven five consecutive years of solid growth in both revenue and adjusted EBITDA, with our investments in reinventions and acquisitions delivering positive NPV returns in 2015. Our Board and management remain dedicated to a balanced approach of capital allocation aligned with the Company's growth strategy and focused on building long-term shareholder value. This approach is reflected in our plans to continue investing in our business. To that end, our Board has authorized, for the first time, a share repurchase program of up to $50 million of our stock over the next two years."
- Curt McClellan, chief financial officer: "Our strong results not only speak to the stability of our membership model, but also the strength and steadiness of our cash flows. Since 2010, we've grown revenues by 53% and adjusted EBITDA by 56% and, in 2015, we delivered full-year revenue and adjusted EBITDA growth that was north of 19%, despite a 100-year rain event in Texas. During 2015, we acquired nine new clubs, signed two management contracts, and completed reinventions at 21 clubs, and we saw adoption of our O.N.E. offering increase to 50% and private events revenue reach an all-time record. We are pleased that the strength and stability of our cash flow is allowing us to support our growth strategies as well as the repurchase program and our current dividend of $0.52 a share, which represents an almost 5% dividend yield at today's stock price."
Segment Highlights:
Golf and country clubs (GCC):
- Fourth quarter, GCC revenue was up $24.8 million to $259.9 million, up 10.6%.
- Fourth quarter, GCC adjusted EBITDA increased $11.1 million to $81.3 million, up 15.9%, and GCC adjusted EBITDA margin increased 140 basis points to 31.3%.
- Fourth quarter, GCC same-store revenue increased $4.0 million, up 2.0%, driven by increases across all three major revenue streams: dues up 3.3%, food & beverage up 2.1%, and golf operations up 1.1%.
- Fourth quarter, GCC same-store adjusted EBITDA increased $4.1 million, up 7.0%, due largely to increased revenue, and favorable cost of sales and variable payroll expenses as a percentage of revenue. Additionally, GCC same-store adjusted EBITDA margin improved 150 basis points to 31.5%.
- Clubs acquired in 2014 and 2015 contributed fourth quarter, GCC revenue of $58.5 million and GCC adjusted EBITDA of $17.9 million.
- Full-year 2015, GCC revenue was up 21.3% to $842.6 million, while GCC adjusted EBITDA was up 21.1% to $246.1 million. For the full-year, GCC adjusted EBITDA margin was flat at 29.2%.
Business, sports and alumni clubs (BSA):
- Fourth quarter, BSA revenue was up $4.0 million to $67.8 million, up 6.2%.
- Fourth quarter, BSA adjusted EBITDA increased $2.2 million to $16.9 million, up 14.9%, and BSA adjusted EBITDA margin increased 190 basis points to 25.0%.
- Fourth quarter, BSA same-store revenue increased $3.1 million to $65.2 million, up 5.0%, driven by increases in dues revenue and record private events revenue.
- Fourth quarter, BSA same-store adjusted EBITDA increased $1.8 million to $16.5 million, up 11.9% due largely to increased dues and food & beverage revenue, and favorable cost of sales and variable payroll expenses as a percentage of revenue. Additionally, BSA same-store adjusted EBITDA margin improved 160 basis points to 25.3%.
- New clubs opened in 2014 contributed fourth quarter, BSA revenue of $2.6 million and BSA adjusted EBITDA of $0.5 million.
- Full-year 2015, BSA revenue was up 6.4% to $195.3 million, while BSA adjusted EBITDA was up 13.4% to $39.6 million. For the full-year, BSA adjusted EBITDA margin improved 130 basis points to 20.3%.
Other Data:
- O.N.E. and Other Upgrades. As of December 29, 2015, approximately 50% of our memberships were enrolled in O.N.E. or similar upgrade programs, as compared to approximately 39% of our memberships that were enrolled in similar upgrade programs as of December 30, 2014. As of December 29, 2015, the Company offered O.N.E. at 152 clubs.
- Reinvention. During 2015, the Company completed reinventions at 21 existing and recently acquired clubs. In total, for 2016, the Company expects ROI expansion capital to be approximately $41 million. In 2016, ClubCorp plans to invest approximately $21 million on 11 same-store clubs and $20 million on recently acquired clubs.
- Acquisitions. In 2015, ClubCorp acquired nine clubs, these include: Ravinia Green Country Club and Rolling Green Country Club, just north of Chicago, Illinois; Bermuda Run Country Club in Bermuda Run, North Carolina; Brookfield Country Club in Roswell, Georgia; Firethorne Country Club in Marvin, North Carolina; Ford's Colony Country Club in Williamsburg, Virginia; Temple Hills Country Club in Franklin, Tennessee; The Legacy Golf Club in Bradenton, Florida and Bernardo Heights Country Club in North Country San Diego, California. The Legacy Golf Club is a public golf course that was subsequently sold in November of 2015. Additionally, in 2016, ClubCorp recently purchased Marsh Creek Country Club in St. Augustine, Florida. As of December 29, 2015, ClubCorp owns or operates 158 golf and country clubs representing approximately 200 18-hole equivalents, of which 10 are managed clubs. Additionally, the Company owns or operates 49 business, sports and alumni clubs, of which three are managed clubs.
- Membership. Membership totals exclude membership count from managed clubs. As of December 29, 2015, total memberships increased 4,766 to 172,939, up 2.8%, over memberships at December 30, 2014. Same-store GCC memberships increased 0.4%, and total GCC memberships increased 4.3%. Same-store BSA memberships declined 1.2%, while total BSA memberships decreased 0.1%.
-
Levered Free Cash Flow.
(1) Levered free cash flow over the last four quarters was $104.9 million, a decrease from $109.8 million a year ago. - Texas. Additional data on clubs the Company owns and operates in Texas is available in the Company's earnings presentation that can be found online at ir.clubcorp.com.
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 2016, the Company anticipates revenue in the range of $1,085 to $1,105 million and adjusted EBITDA in the range of $242 million to $252 million. The current outlook implies year-over-year revenue growth of 3-5% and year-over-year adjusted EBITDA growth of 4-8%.
Stock Repurchase:
The board of directors of ClubCorp has authorized the Company to repurchase up $50 million of its common stock, commencing the first quarter 2016. The repurchase program is expected to be executed over two years, and is expected to be executed from time to time, subject to general business and market conditions and other investment opportunities, through open market or privately negotiated transactions, including through Rule 10b5-1.
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 (NYSE: MYCC). ClubCorp properties include: Firestone Country Club (Akron, Ohio); Mission Hills Country Club (Rancho Mirage, California); The Woodlands Country Club (The Woodlands, Texas); Capital Club Beijing; and Metropolitan Club Chicago. You can find ClubCorp on Facebook at facebook.com/clubcorp and on Twitter at @ClubCorp.
Conference Call:
The Company's earnings presentation is available at ir.clubcorp.com. The Company will hold a conference call on Wednesday, February 24, 2016 at 4:30 p.m. CST (5:30 p.m. EST) to discuss its fourth 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) 201-0168 for U.S. callers and (647) 788-4901 for international callers and reference the ClubCorp fourth quarter conference call (confirmation code 45960369) when prompted. For those unable to participate in the live call, a replay of the call 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. 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:
(1) This press release includes metrics entitled Adjusted EBITDA and Levered Free Cash Flow that are 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 Levered Free Cash Flow and the reconciliation later in this press release to the most comparable financial measure calculated in accordance with GAAP.
(2) New or Acquired Clubs include those clubs that the Company is currently operating as of December 29, 2015, that were opened, acquired or added under management agreements in the fiscal year ended December 29, 2015 and the fiscal year ended December 30, 2014 consisting of: The Clubs of Prestonwood, Tournament Players Club ("TPC") Michigan, TPC Piper Glen, Baylor Club, 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, Bernardo Heights Country Club, Santa Rosa Golf and Beach Club, West Lake Mansion at Meilu Legend Hotel and 30 owned golf and country clubs, three leased golf and country clubs, six managed golf and country clubs and one leased sports club acquired through the Sequoia Golf acquisition.
(3) Other 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.
(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)
Fourth quarter
ended Year ended
------------------ ------------------
December December December December
29, 30, 29, 30,
2015 2014 % 2015 2014 %
(16 (16 Change (52 (52 Change
GCC weeks) weeks) (1) weeks) weeks) (1)
------------------ -------- -------- ------ -------- -------- ------
Same Store Clubs
Revenue
Dues $ 98,365 $ 95,192 3.3% $316,939 $305,790 3.6%
Food and
Beverage 48,568 47,546 2.1% 152,617 149,374 2.2%
Golf
Operations 41,290 40,849 1.1% 144,385 144,619 (0.2)%
Other 13,175 13,783 (4.4)% 48,267 49,756 (3.0)%
-------- -------- ------ -------- -------- ------
Revenue $201,398 $197,370 2.0% $662,208 $649,539 2.0%
Club operating
costs and
expenses
exclusive of
depreciation $137,991 $138,103 (0.1)% $459,899 $457,792 0.5%
-------- -------- ------ -------- -------- ------
Adjusted EBITDA $ 63,407 $ 59,267 7.0% $202,309 $191,747 5.5%
Adjusted EBITDA 150 110
Margin 31.5% 30.0% bps 30.6% 29.5% bps
New or Acquired
Clubs (2)
Revenue
Dues $ 29,231 $ 16,657 NM $ 88,393 $ 20,106 NM
Food and
Beverage 12,626 7,404 NM 38,760 9,252 NM
Golf
Operations 12,863 8,541 NM 41,778 10,459 NM
Other 3,737 5,041 NM 11,483 5,324 NM
-------- -------- -------- --------
Revenue $ 58,457 $ 37,643 NM $180,414 $ 45,141 NM
Club operating
costs and
expenses
exclusive of
depreciation $ 40,559 $ 26,735 NM $136,612 $ 33,697 NM
-------- -------- -------- --------
Adjusted EBITDA $ 17,898 $ 10,908 NM $ 43,802 $ 11,444 NM
Total Golf and
Country Clubs
Revenue $259,855 $235,013 10.6% $842,622 $694,680 21.3%
Club operating
costs and
expenses
exclusive of
depreciation $178,550 $164,838 8.3% $596,511 $491,489 21.4%
-------- -------- ------ -------- -------- ------
Adjusted EBITDA $ 81,305 $ 70,175 15.9% $246,111 $203,191 21.1%
Adjusted EBITDA 140
Margin 31.3% 29.9% bps 29.2% 29.2% 0 bps
Same-store
memberships,
excluding managed
club memberships 85,193 84,884 0.4% 85,193 84,884 0.4%
Same-store average
membership,
excluding managed
club memberships
(3) 85,838 85,724 0.1% 85,039 84,206 1.0%
Dues per average
same-store
membership,
excluding managed
club memberships
(4) $ 1,146 $ 1,110 3.2% $ 3,727 $ 3,631 2.6%
Revenue per
average same-
store membership,
excluding managed
club memberships
(4) $ 2,346 $ 2,302 1.9% $ 7,787 $ 7,714 0.9%
(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 December 29, 2015, that were acquired, opened or added
under management agreements during the fiscal years ended December 29,
2015 and 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, Bernardo Heights
Country Club, Santa Rosa Golf and Beach Club and 30 owned golf and
country clubs, three leased golf and country clubs and six 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)
Fourth quarter
ended Year ended
------------------ ------------------
December December December December
29, 30, 29, 30,
2015 2014 % 2015 2014 %
(16 (16 Change (52 (52 Change
BSA weeks) weeks) (1) weeks) weeks) (1)
------------------ -------- -------- ------ -------- -------- ------
Same Store Clubs
Revenue
Dues $ 24,886 $ 24,148 3.1% $ 80,753 $ 77,779 3.8%
Food and
Beverage 37,041 34,727 6.7% 97,479 92,905 4.9%
Other 3,284 3,242 1.3% 11,148 10,857 2.7%
-------- -------- ------- -------- -------- -------
Revenue $ 65,211 $ 62,117 5.0% $189,380 $181,541 4.3%
Club operating
costs and
expenses
exclusive of
depreciation $ 48,740 $ 47,398 2.8% $150,494 $146,347 2.8%
-------- -------- ------- -------- -------- -------
Adjusted EBITDA $ 16,471 $ 14,719 11.9% $ 38,886 $ 35,194 10.5%
Adjusted EBITDA 160 110
Margin 25.3% 23.7% bps 20.5% 19.4% bps
New or Acquired
Clubs (2)
Revenue $ 2,578 $ 1,711 NM $ 5,951 $ 2,105 NM
Club operating
costs and
expenses
exclusive of
depreciation $ 2,100 $ 1,674 NM $ 5,196 $ 2,345 NM
-------- -------- -------- --------
Adjusted EBITDA $ 478 $ 37 NM $ 755 $ (240) NM
Total Business,
Sports and Alumni
Clubs
Revenue $ 67,789 $ 63,828 6.2% $195,331 $183,646 6.4%
Club operating
costs and
expenses
exclusive of
depreciation $ 50,840 $ 49,072 3.6% $155,690 $148,692 4.7%
-------- -------- ------- -------- -------- -------
Adjusted EBITDA $ 16,949 $ 14,756 14.9% $ 39,641 $ 34,954 13.4%
Adjusted EBITDA 190 130
Margin 25.0% 23.1% bps 20.3% 19.0% bps
Same-store
memberships,
excluding managed
club memberships 54,402 55,064 (1.2)% 54,402 55,064 (1.2)%
Same-store average
membership,
excluding managed
club memberships
(3) 54,446 55,173 (1.3)% 54,733 54,899 (0.3)%
Dues per average
same-store
membership,
excluding managed
club memberships
(4) $ 457 $ 438 4.3% $ 1,475 $ 1,417 4.1%
Revenue per
average same-
store membership,
excluding managed
club memberships
(4) $ 1,198 $ 1,126 6.4% $ 3,460 $ 3,307 4.6%
(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 December 29, 2015, that were opened or added under
management agreements during the fiscal years ended December 29, 2015
and December 30, 2014 consisting of Baylor Club, West Lake Mansion at
Meilu Legend Hotel 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)
Fourth quarter ended Year ended
------------------------ ------------------------
December December December December
29, 30, 29, 30,
2015 2014 2015 2014
(16 weeks) (16 weeks) (52 weeks) (52 weeks)
----------- ----------- ----------- -----------
Net (loss) income $ (6,259) $ 31,321 $ (9,573) $ 13,329
Interest expense 22,085 20,967 70,672 65,209
Income tax expense
(benefit) 1,816 (38,441) 1,629 (41,469)
Interest and
investment income (1,701) (1,050) (5,519) (2,585)
Depreciation and
amortization 32,328 30,387 103,944 80,792
----------- ----------- ----------- -----------
EBITDA $ 48,269 $ 43,184 $ 161,153 $ 115,276
Impairments and
disposition of assets
(1) 9,123 5,601 24,546 12,843
Loss (income) from
discontinued
operations and
divested clubs (2) 117 (140) 363 (563)
Loss on extinguishment
of debt (3) 2,599 - 2,599 31,498
Non-cash adjustments
(4) 619 618 2,008 2,007
Acquisition
transaction costs (5) 1,268 8,380 4,965 10,568
Capital structure
costs (6) 8,196 5,298 10,047 8,785
Centralization and
transformation costs
(7) 3,705 643 8,495 1,330
Other adjustments (8) 2,316 1,930 7,405 4,632
Equity-based
compensation expense
(9) 1,460 1,266 4,970 4,303
Acquisition adjustment
(10) 1,967 2,616 7,111 5,644
----------- ----------- ----------- -----------
Adjusted EBITDA $ 79,639 $ 69,396 $ 233,662 $ 196,323
=========== =========== =========== ===========
(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 in accordance with GAAP.
(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
Capital Partners, LLC ("KSL") and expense recognized for our long-term
incentive plan related to fiscal years 2011 through 2013.
(5) Represents legal and professional fees related to the acquisition of
clubs, including the acquisition of Sequoia Golf on September 30, 2014.
(6) Represents legal and professional fees related to our capital
structure, including debt issuance and amendment costs and equity
offering costs.
(7) Includes fees and expenses associated with readiness efforts for
Section 404(b) of the Sarbanes-Oxley Act and related centralization and
transformation of administrative processes, finance processes and
related IT systems.
(8) 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 of continuing operations and management fees, termination fee
and expenses paid to an affiliate of KSL.
(9) Includes equity-based compensation expense, calculated in accordance
with GAAP, related to awards held by certain employees, executives and
directors.
(10) 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)
Year ended
-----------------------------
December 29, December 30,
2015 2014
(52 weeks) (52 weeks)
-------------- --------------
Adjusted EBITDA (1) $ 233,662 $ 196,323
LESS:
Interest expense and principal amortization
on long-term debt (2) 46,270 40,912
Cash paid for income taxes 11,297 2,723
Maintenance capital expenditures 53,090 29,067
Capital lease principal & interest expense 18,123 13,799
-------------- --------------
Levered Free Cash Flow $ 104,882 $ 109,822
============== ==============
(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.
SELECTED FINANCIAL DATA-GOLF AND COUNTRY CLUBS (GCC)
2015 DATA PRESENTED USING 2016 SAME STORE BASIS
(In thousands, except for percentages)
(Unaudited financial information)
First Second Third Fourth
Quarter Quarter Quarter Quarter Year
Ended Ended Ended Ended Ended
--------- --------- --------- --------- ---------
September December December
March 24, June 16, 8, 29, 29,
2015 2015 2015 2015 2015
(12 (12 (12 (16 (52
GCC weeks) weeks) weeks) weeks) weeks)
--------------------- --------- --------- --------- --------- ---------
Same Store Clubs
Revenue
Dues $ 87,185 $ 90,221 $ 91,948 $ 121,853 $ 391,207
Food and Beverage 29,689 50,793 44,024 58,041 182,547
Golf Operations 28,603 50,128 49,105 52,241 180,077
Other 12,494 13,958 15,769 16,539 58,760
--------- --------- --------- --------- ---------
Revenue $ 157,971 $ 205,100 $ 200,846 $ 248,674 $ 812,591
Club operating costs
and expenses
exclusive of
depreciation $ 112,791 $ 143,949 $ 143,506 $ 169,773 $ 570,019
--------- --------- --------- --------- ---------
Adjusted EBITDA $ 45,180 $ 61,151 $ 57,340 $ 78,901 $ 242,572
Adjusted EBITDA
Margin 28.6% 29.8% 28.5% 31.7% 29.9%
New or Acquired Clubs
(1)
Revenue
Dues $ 688 $ 3,388 $ 4,306 $ 5,743 $ 14,125
Food and Beverage 204 2,675 2,798 3,152 8,829
Golf Operations 1 1,780 2,393 1,912 6,086
Other 34 247 336 374 991
--------- --------- --------- --------- ---------
Revenue $ 927 $ 8,090 $ 9,833 $ 11,181 $ 30,031
Club operating costs
and expenses
exclusive of
depreciation $ 1,172 $ 7,596 $ 8,947 $ 8,777 $ 26,492
--------- --------- --------- --------- ---------
Adjusted EBITDA $ (245) $ 494 $ 886 $ 2,404 $ 3,539
Total Golf and
Country Clubs
Revenue $ 158,898 $ 213,190 $ 210,679 $ 259,855 $ 842,622
Club operating costs
and expenses
exclusive of
depreciation $ 113,963 $ 151,545 $ 152,453 $ 178,550 $ 596,511
--------- --------- --------- --------- ---------
Adjusted EBITDA $ 44,935 $ 61,645 $ 58,226 $ 81,305 $ 246,111
Adjusted EBITDA
Margin 28.3% 28.9% 27.6% 31.3% 29.2%
(1) New or Acquired Clubs include those clubs that the Company is currently
operating as of December 29, 2015, that were acquired, opened or added
under management agreements during the fiscal year ended December 29,
2015 consisting of: 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,
Bernardo Heights Country Club and Santa Rosa Golf and Beach Club.
CLUBCORP HOLDINGS, INC.
SELECTED FINANCIAL DATA-BUSINESS, SPORTS AND ALUMNI CLUBS (BSA)
2015 DATA PRESENTED USING 2016 SAME STORE BASIS
(In thousands, except for percentages)
(Unaudited financial information)
First Second Third Fourth
Quarter Quarter Quarter Quarter Year
Ended Ended Ended Ended Ended
--------- --------- --------- --------- ---------
September December December
March 24, June 16, 8, 29, 29,
2015 2015 2015 2015 2015
(12 (12 (12 (16 (52
BSA weeks) weeks) weeks) weeks) weeks)
--------------------- --------- --------- --------- --------- ---------
Same Store Clubs
Revenue
Dues $ 18,956 $ 18,768 $ 18,956 $ 25,373 $ 82,053
Food and Beverage 19,192 24,407 18,718 38,818 101,135
Other 2,851 2,812 2,882 3,573 12,118
--------- --------- --------- --------- ---------
Revenue $ 40,999 $ 45,987 $ 40,556 $ 67,764 $ 195,306
Club operating costs
and expenses
exclusive of
depreciation $ 33,487 $ 36,778 $ 34,562 $ 50,824 $ 155,651
--------- --------- --------- --------- ---------
Adjusted EBITDA $ 7,512 $ 9,209 $ 5,994 $ 16,940 $ 39,655
Adjusted EBITDA
Margin 18.3% 20.0% 14.8% 25.0% 20.3%
New or Acquired Clubs
(1)
Revenue $ - $ - $ - $ 25 $ 25
Club operating costs
and expenses
exclusive of
depreciation $ 12 $ 6 $ 5 $ 16 $ 39
--------- --------- --------- --------- ---------
Adjusted EBITDA $ (12) $ (6) $ (5) $ 9 $ (14)
Total Business,
Sports and Alumni
Clubs
Revenue $ 40,999 $ 45,987 $ 40,556 $ 67,789 $ 195,331
Club operating
costs and expenses
exclusive of
depreciation $ 33,499 $ 36,784 $ 34,567 $ 50,840 $ 155,690
--------- --------- --------- --------- ---------
Adjusted EBITDA $ 7,500 $ 9,203 $ 5,989 $ 16,949 $ 39,641
Adjusted EBITDA
Margin 18.3% 20.0% 14.8% 25.0% 20.3%
(1) New or Acquired Clubs include those clubs that the Company is currently
operating as of December 29, 2015, which were opened or added under
management agreements during the fiscal year ended December 29, 2015
consisting of West Lake Mansion at Meilu Legend Hotel
CLUBCORP HOLDINGS, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE (LOSS) INCOME
For the Fiscal Years Ended December 29, 2015 and December 30, 2014
(In thousands of dollars)
(Unaudited financial information)
Fourth quarter
ended Year ended
------------------ --------------------
December December December
29, 30, December 30,
2015 2014 29, 2014
(16 (16 % 2015 (52 %
weeks) weeks) Change (52 weeks) weeks) Change
-------- -------- ------ ---------- -------- ------
REVENUES:
Club operations $230,506 $210,737 9.4% $ 757,472 $629,180 20.4%
Food and
beverage 99,797 90,793 9.9% 291,582 251,838 15.8%
Other revenues 1,385 1,009 37.3% 3,813 3,137 21.5%
-------- -------- ------ ---------- -------- ------
Total revenues 331,688 302,539 9.6% 1,052,867 884,155 19.1%
DIRECT AND
SELLING,
GENERAL AND
ADMINISTRATIVE
EXPENSES:
Club operating
costs exclusive
of depreciation 207,215 190,967 8.5% 681,989 568,171 20.0%
Cost of food and
beverage sales
exclusive of
depreciation 30,786 27,827 10.6% 96,103 81,165 18.4%
Depreciation and
amortization 32,328 30,387 6.4% 103,944 80,792 28.7%
Provision for
doubtful
accounts 675 1,737 (61.1)% 2,551 2,733 (6.7)%
Loss on
disposals of
assets 6,093 4,171 46.1% 19,402 10,518 84.5%
Impairment of
assets 3,030 1,430 111.9% 5,144 2,325 121.2%
Equity in loss
(earnings) from
unconsolidated
ventures 374 89 320.2% 1,308 (1,404) 193.2%
Selling, general
and
administrative 32,647 33,133 (1.5)% 82,616 73,870 11.8%
-------- -------- ------ ---------- -------- ------
OPERATING INCOME 18,540 12,798 44.9% 59,810 65,985 (9.4)%
Interest and
investment
income 1,701 1,050 62.0% 5,519 2,585 113.5%
Interest expense (22,085) (20,967) (5.3)% (70,672) (65,209) (8.4)%
Loss on
extinguishment
of debt (2,599) - 100.0% (2,599) (31,498) 91.7%
-------- -------- ------ ---------- -------- ------
LOSS FROM
CONTINUING
OPERATIONS
BEFORE INCOME
TAXES (4,443) (7,119) 37.6% (7,942) (28,137) 71.8%
INCOME TAX
(EXPENSE)
BENEFIT (1,816) 38,441 (104.7)% (1,629) 41,469 (103.9)%
-------- -------- ------ ---------- -------- ------
(LOSS) INCOME
FROM CONTINUING
OPERATIONS (6,259) 31,322 (120.0)% (9,571) 13,332 (171.8)%
Loss from
discontinued
clubs, net of
income tax
benefit - (1) 100.0% (2) (3) 33.3%
-------- -------- ------ ---------- -------- ------
NET (LOSS)
INCOME (6,259) 31,321 (120.0)% (9,573) 13,329 (171.8)%
NET (INCOME)
LOSS
ATTRIBUTABLE TO
NONCONTROLLING
INTERESTS (87) 34 (355.9)% 61 (103) 159.2%
-------- -------- ------ ---------- -------- ------
NET (LOSS)
INCOME
ATTRIBUTABLE TO
CLUBCORP $ (6,346) $ 31,355 (120.2)% $ (9,512) $ 13,226 (171.9)%
======== ======== ====== ========== ======== ======
NET (LOSS)
INCOME $ (6,259) $ 31,321 (120.0)% $ (9,573) $ 13,329 (171.8)%
Foreign currency
translation 504 (3,227) 115.6% (2,959) (3,220) 8.1%
-------- -------- ------ ---------- -------- ------
OTHER
COMPREHENSIVE
INCOME (LOSS) 504 (3,227) 115.6% (2,959) (3,220) 8.1%
-------- -------- ------ ---------- -------- ------
COMPREHENSIVE
(LOSS) INCOME (5,755) 28,094 (120.5)% (12,532) 10,109 (224.0)%
COMPREHENSIVE
(INCOME) LOSS
ATTRIBUTABLE TO
NONCONTROLLING
INTERESTS (87) 34 (355.9)% 61 (103) 159.2%
-------- -------- ------ ---------- -------- ------
COMPREHENSIVE
(LOSS) INCOME
ATTRIBUTABLE TO
CLUBCORP $ (5,842) $ 28,128 (120.8)% $ (12,471) $ 10,006 (224.6)%
======== ======== ====== ========== ======== ======
CLUBCORP HOLDINGS, INC.
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
As of December 29, 2015 and December 30, 2014
(In thousands of dollars, except share and per share amounts)
(Unaudited financial information)
December 29, December 30,
2015 2014
------------- -------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 116,347 $ 75,047
Receivables, net of allowances 68,671 65,337
Inventories 20,929 20,931
Prepaids and other assets 19,907 15,776
Deferred tax assets, net 26,338 26,574
------------- -------------
Total current assets 252,192 203,665
Investments 3,005 5,774
Property and equipment, net 1,534,520 1,474,763
Notes receivable, net of allowances 7,448 8,262
Goodwill 312,811 312,811
Intangibles, net 31,252 34,960
Other assets 29,634 24,836
------------- -------------
TOTAL ASSETS $ 2,170,862 $ 2,065,071
============= =============
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $ 20,414 $ 18,025
Membership initiation deposits - current
portion 152,996 135,583
Accounts payable 39,487 31,948
Accrued expenses 37,441 44,424
Accrued taxes 15,473 21,903
Other liabilities 69,192 59,550
------------- -------------
Total current liabilities 335,003 311,433
Long-term debt 1,092,320 965,187
Membership initiation deposits 204,305 203,062
Deferred tax liability, net 236,795 244,113
Other liabilities 123,657 120,417
------------- -------------
Total liabilities 1,992,080 1,844,212
EQUITY
Common stock, $0.01 par value, 200,000,000
shares authorized; 64,740,736 and 64,443,332
issued and outstanding at December 29, 2015
and December 30, 2014, respectively 647 644
Additional paid-in capital 263,921 293,006
Accumulated other comprehensive loss (7,249) (4,290)
Accumulated deficit (88,955) (79,443)
------------- -------------
Total stockholders' equity 168,364 209,917
------------- -------------
Noncontrolling interests in consolidated
subsidiaries and variable interest entities 10,418 10,942
------------- -------------
Total equity 178,782 220,859
------------- -------------
TOTAL LIABILITIES AND EQUITY $ 2,170,862 $ 2,065,071
============= =============
CLUBCORP HOLDINGS, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
For the Fiscal Year Ended December 29, 2015 and December 30, 2014
(In thousands of dollars)
(Unaudited financial information)
Fourth quarter ended Year ended
------------------------ ------------------------
December December
29, 30, December December
2015 2014 29, 2015 30, 2014
(16 weeks) (16 weeks) (52 weeks) (52 weeks)
----------- ----------- ----------- -----------
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net (loss) income $ (6,259) $ 31,321 $ (9,573) $ 13,329
Adjustments to
reconcile net (loss)
income to cash flows
from operating
activities:
Depreciation 31,460 29,291 101,037 79,394
Amortization 867 1,096 2,907 1,398
Asset impairments 3,030 1,430 5,144 2,325
Bad debt expense 668 1,748 2,605 2,760
Equity in loss
(earnings) from
unconsolidated
ventures 374 89 1,308 (1,404)
Gain on investment
in unconsolidated
ventures (1,575) (927) (5,082) (2,203)
Distribution from
investment in
unconsolidated
ventures 1,810 1,450 5,845 5,740
Loss on disposals of
assets 6,090 4,171 19,399 10,514
Debt issuance costs
and term loan
discount 12,316 7,903 15,600 13,687
Accretion of
discount on member
deposits 6,244 6,512 20,307 20,723
Equity-based
compensation 1,460 1,266 4,970 4,303
Redemption premium
payment included in
loss on
extinguishment of
debt - - - 27,452
Net change in
deferred tax assets
and liabilities (2,344) 10,208 (7,082) 2,110
Net change in
prepaid expenses
and other assets (4,185) 609 (7,636) (4,017)
Net change in
receivables and
membership notes 35,888 26,279 6,619 29,741
Net change in
accounts payable
and accrued
liabilities 4,466 9,231 2,499 1,027
Net change in other
current liabilities (35,110) (32,333) (555) (32,776)
Net change in other
long-term
liabilities (1,544) (48,539) (6,042) (44,945)
----------- ----------- ----------- -----------
Net cash provided by
operating
activities 53,656 50,805 152,270 129,158
----------- ----------- ----------- -----------
CASH FLOWS FROM
INVESTING ACTIVITIES:
Purchase of property
and equipment (29,134) (17,560) (105,244) (72,647)
Acquisition of clubs (2,705) (3,068) (58,582) (20,255)
Acquisition of
Sequoia Golf, net
of cash acquired - (250,007) - (260,007)
Proceeds from
dispositions 3,186 133 3,764 447
Net change in
restricted cash and
capital reserve
funds (120) (68) (183) (355)
Return of capital in
equity investments - - - 126
----------- ----------- ----------- -----------
Net cash used in
investing
activities (28,773) (270,570) (160,245) (352,691)
----------- ----------- ----------- -----------
CASH FLOWS FROM
FINANCING ACTIVITIES:
Repayments of long-
term debt (235,267) (4,719) (247,313) (283,387)
Proceeds from new
debt borrowings,
net of loan
discount 350,000 248,125 350,000 596,375
Repayments of
revolving credit
facility borrowings (47,000) - (57,000) (11,200)
Proceeds from
revolving credit
facility borrowings - - 57,000 11,200
Redemption premium
payment - - - (27,452)
Debt issuance and
modification costs (16,032) (5,324) (17,525) (8,254)
Dividends to owners (8,400) (7,785) (33,583) (30,765)
Equity offering
costs (887) (777) (887) (777)
Share repurchases
for tax
withholdings
related to certain
equity-based awards - - (1,443) -
Excess tax benefit
from equity-based
awards 1,055 - 1,055 -
Distributions to
noncontrolling
interest - (27) (1,071) (27)
Proceeds from new
membership
initiation deposits 229 218 749 853
Repayments of
membership
initiation deposits (418) (492) (1,496) (1,567)
----------- ----------- ----------- -----------
Net cash provided
by financing
activities 43,280 229,219 48,486 244,999
----------- ----------- ----------- -----------
EFFECT OF EXCHANGE RATE
CHANGES ON CASH 1,051 (208) 789 (200)
----------- ----------- ----------- -----------
NET INCREASE IN CASH AND
CASH EQUIVALENTS 69,214 9,246 41,300 21,266
CASH AND CASH
EQUIVALENTS - BEGINNING
OF PERIOD 47,133 65,801 75,047 53,781
----------- ----------- ----------- -----------
CASH AND CASH
EQUIVALENTS - END OF
PERIOD $ 116,347 $ 75,047 $ 116,347 $ 75,047
=========== =========== =========== ===========
SUPPLEMENTAL DISCLOSURE
OF CASH FLOW
INFORMATION:
Cash paid for
interest $ 19,936 $ 35,930 $ 51,368 $ 35,930
=========== =========== =========== ===========
Cash paid for income
taxes $ 6,782 $ 2,723 $ 11,297 $ 2,723
=========== =========== =========== ===========
Image Available: http://www.marketwire.com/library/MwGo/2016/2/23/11G084267/Images/Firestone-1311097337615.jpg
Patty Jerde
Communications Manager
972-888-7790
Frank Molina
Vice President, Investor Relations and Treasury
972-888-6206
ClubCorp Holdings, Inc. The World Leader in Private Clubs
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