CLUBCORP HOLDINGS INC DALLAS, July 23, 2015 /PRNewswire/ -- ClubCorp - The World Leader in Private Clubs® (NYSE: MYCC) - announces financial results for its fiscal-year 2015 second quarter ended June 16, 2015. The second quarter of fiscal 2015 and fiscal 2014 consisted of 12 weeks. All growth percentages refer to year-over-year progress.
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Second Quarter Results:
-- Revenue increased $52.3 million, or 24.8%, to $263.7 million for the
second quarter of 2015.
-- Adjusted EBITDA((1)) increased $10.5 million to $60.2 million, up 21.1%
from increased revenue and lower club payroll and operating expenses as
a percent of revenue.
-- Same Store Clubs. Same-store revenue was up $5.5 million, or 2.6%, due
primarily to higher dues revenue and increased food & beverage spend;
while same store adjusted EBITDA grew $2.8 million, or 4.8%, due to
increased revenue and favorable operating expenses as a percent of
revenue.
-- New or Acquired Clubs.((2)) New clubs opened in 2014 or clubs acquired
in 2014 and 2015 contributed revenue growth of $44.4 million and
adjusted EBITDA growth of $10.2 million.
2015 Second Quarter and Year to Date Summary:
(Unaudited financial information)
Second quarter ended Year to date ended
-------------------- ------------------
(In thousands, except for membership data) June 16, June 17, % June 16, June 17, %
2015 2014 Change 2015 2014 Change
(12 weeks) (12 weeks) (24 weeks) (24 weeks)
--- --------- --------- --------- ---------
Total Revenue $263,747 $211,418 24.8 % $465,819 $377,141 23.5 %
Adjusted EBITDA (1)
Golf and Country Clubs $61,758 $49,845 23.9 % $106,746 $86,186 23.9 %
Business, Sports and Alumni Clubs $9,250 $8,190 12.9 % $16,798 $14,591 15.1 %
Other $(10,789) $(8,294) (30.1) % $(24,301) $(19,074) (27.4) %
-------- ------- ------- -------- -------- -------
Adjusted EBITDA (1) $60,219 $49,741 21.1 % $99,243 $81,703 21.5 %
======= ======= ===== ======= ======= =====
Total Club Memberships, excluding managed clubs 174,583 143,235 21.9 % 174,583 143,235 21.9 %
Total Club Memberships, including managed clubs 185,184 150,285 23.2 % 185,184 150,285 23.2 %
Quotes:
-- Eric Affeldt, president and chief executive officer: "We delivered
record financial results this quarter bolstered by positive same store
sales and a strong contribution from recent acquisitions. Despite record
rainfall in Texas this spring, we still grew same store revenue and
adjusted EBITDA in the second quarter. Our results demonstrate the
stability and resiliency of our private club and membership business
model. Additionally, our recent acquisitions are performing very well
and are generating a significant amount of additional revenue and
adjusted EBITDA growth. Overall, we are confident in our strategy and
are reaffirming our outlook for fiscal 2015."
-- Curt McClellan, chief financial officer: "We continue to execute our
three pronged growth strategy - namely organic growth, reinvention and
acquisitions. We continue to see increased enrollment in our O.N.E.
product, we continue to execute our reinvention strategy as we are on
track to add reinvention elements at 30 clubs in 2015, and we are
actively pursuing additional acquisition opportunities. Additionally, we
effectively managed operating expenses and experienced strong private
event revenue this quarter. We delivered strong results, and having made
some excellent strides on reinvention capital, we are excited about our
continued growth prospects for the second half of the year."
Segment Highlights:
Golf and country clubs (GCC):
-- GCC total revenue of $213.6 million for the second quarter of 2015
increased $46.4 million, up 27.8%, compared to the second quarter of
2014.
-- GCC adjusted EBITDA was $61.8 million, an increase of $11.9 million, up
23.9%.
-- GCC adjusted EBITDA margin was 28.9%, a decline of 90 basis points
versus the second quarter of 2014.
-- Same store revenue increased $3.2 million, up 1.9%, driven primarily by
increases in dues revenue up 3.9%, and private events food and beverage
revenue up 5.9%, offset by a decline in golf ops and other revenue.
-- Same store adjusted EBITDA increased $1.9 million, up 3.7%, due largely
to increased dues and food and beverage revenue, and favorable variable
payroll expenses as a percent of revenue.
-- Same store adjusted EBITDA margin improved 50 basis points to 30.8%.
-- Recently acquired GCC clubs contributed revenue growth of $43.3 million
and adjusted EBITDA growth of $10.1 million.
Business, sports and alumni clubs (BSA):
-- BSA revenue of $46.0 million for the second quarter of 2015 increased
$3.4 million, up 8.0%, compared to the second quarter 2014 driven by
strong growth in both same store and new and acquired clubs.
-- BSA adjusted EBITDA was $9.3 million, an increase $1.1million, up 12.9%.
-- BSA adjusted EBITDA margin was 20.1%, a 90 basis points margin
improvement versus the second quarter 2014.
-- Same store revenue increased $2.3 million, up 5.4%, driven by increases
in dues and private event revenue.
-- Same store adjusted EBITDA increased $1.0 million, up 11.5%, due to
increased revenue favorable variable payroll expense as a percent of
revenue.
-- Same store adjusted EBITDA margin improved 110 basis points to 20.5%.
-- New or recently acquired BSA clubs contributed revenue of $1.1 million
and adjusted EBITDA of $0.1 million.
Other Data:
-- O.N.E. and Other Upgrades. Including memberships acquired with the
Sequoia Golf acquisition, as of June 16, 2015, approximately 46% 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 June 16, 2015,
the Company offered O.N.E. at 134 clubs. The Company has also decided to
extend O.N.E. to an additional 15 business, sports and alumni clubs.
-- Reinvention. In 2015, ClubCorp plans to invest a total of $48-53 million
on major reinvention projects. As of June 30, 2015, the Company had
completed reinvention elements at 15 existing and newly acquired clubs.
Additionally, projects at another 10 clubs are in active construction,
and five more are in design or awaiting permitting. Combined, the
Company is on track to add reinvention elements at approximately 30
clubs in 2015.
-- Acquisitions. Year-to-date in 2015, ClubCorp has added eight clubs via
acquisition with two properties just north of Chicago, Illinois, Ravinia
Green Country Club and Rolling Green Country Club; and six clubs in the
southeast United States, 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, and Legacy Golf Club at Lakewood Ranch in Bradenton, Florida.
As of June 16, 2015, ClubCorp owns or operates 159 golf and country
clubs representing approximately 200 18-hole equivalents. Additionally,
the Company owns or operates 49 business, sports and alumni clubs.
-- Membership. Total club memberships, excluding managed clubs, as of June
16, 2015 were 174,583, an increase of 31,348, up 21.9% over memberships
at June 17, 2014. Same store golf and country club memberships,
excluding managed clubs, increased 0.2%, while total golf and country
club memberships, excluding managed clubs, increased 34.5%. Same store
business, sports and alumni club memberships, excluding managed clubs,
decreased -1.1%, while total business, sports and alumni club
memberships, excluding managed clubs, increased 1.8%. Total club
memberships, including managed clubs, as of June 16, 2015 were 185,184.
-- Levered Free Cash Flow.((1)) Levered free cash flow over the last four
quarters was $112.7 million, an increase from $87.4 million a year ago.
-- Capital Structure. On April 7(th) the Company closed its multi-club
portfolio acquisition of six golf properties from sellers Stratford Golf
Partners and Accord Golf Capital for a combined purchase price of just
under $44 million, and the acquisition was funded from existing
liquidity sources. On May 28th the Company obtained a 25 basis point
rate reduction to its Term B loans, resulting in approximately ~$2
million annualized incremental interest expense savings.
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 reaffirming its outlook to deliver revenue in the range of $1.03 billion to $1.06 billion and adjusted EBITDA in the range of $230.0 million to $240.0 million. The current outlook implies year-over-year revenue growth of 16-20% and year-over-year adjusted EBITDA growth of 17-22%.
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, Thursday, July 23, 2015 at 11:00 a.m. CDT (12:00 p.m. EDT) to discuss its second 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 second quarter conference call (confirmation code 10068215) 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 August 23, 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 10068215). 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 is not indicative of net income or loss as determined under GAAP. Non-GAAP financial measures have limitations that should be considered before using as a measure 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 in its Quarterly Report on Form 10-Q for the period ended June 16, 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 June 16, 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
"Statement Regarding Non-GAAP
Financial Measures" section 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 which the Company is
currently operating as of June 16,
2015, that were opened or added
under management agreements in the
twenty-four weeks ended June 16,
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, Legacy Golf Club at
Lakewood Ranch and 30 owned golf
and country clubs, three leased
golf and country clubs, eight
managed golf and country clubs and
one leased sports club acquired
through the Sequoia Golf
acquisition.
(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)
Second quarter ended Year to date ended
-------------------- ------------------
GCC June 16, June 17, % June 16, June 17, %
2015 2014 Change (1) 2015 2014 Change (1)
(12 weeks) (12 weeks) (24 weeks) (24 weeks)
--- --------- --------- --------- ---------
Same Store Clubs
Revenue
Dues $73,118 $70,372 3.9 % $144,391 $138,840 4.0 %
Food and Beverage 42,546 41,323 3.0 % 67,582 65,873 2.6 %
Golf Operations 40,085 40,460 (0.9) % 63,820 64,549 (1.1) %
Other 11,468 11,883 (3.5) % 21,785 22,150 (1.6) %
------ ------ ------ ------ ------ ------
Revenue $167,217 $164,038 1.9 % $297,578 $291,412 2.1 %
Adjusted EBITDA $51,550 $49,692 3.7 % $90,651 $86,118 5.3 %
Adjusted EBITDA Margin 30.8 % 30.3 % 50 bps 30.5 % 29.6 % 90 bps
New or Acquired Clubs (2)
Revenue
Dues $20,541 $1,362 NM (1) $37,141 $1,558 NM (1)
Food and Beverage 10,970 895 NM (1) 15,827 985 NM (1)
Golf Operations 12,081 788 NM (1) 16,950 834 NM (1)
Other 2,808 103 NM (1) 5,073 106 NM (1)
----- --- ----- ----- --- -----
Revenue $46,400 $3,148 NM (1) $74,991 $3,483 NM (1)
Adjusted EBITDA $10,208 $153 NM (1) $16,095 $68 NM (1)
Total Golf and Country Clubs
Revenue $213,617 $167,186 27.8 % $372,569 $294,895 26.3%
Adjusted EBITDA $61,758 $49,845 23.9 % $106,746 $86,186 23.9%
Adjusted EBITDA Margin 28.9 % 29.8 % (90) bps 28.7 % 29.2 % (50) bps
Same store memberships, excluding managed club memberships 86,133 85,954 0.2 % 86,133 85,954 0.2%
Same store average membership, excluding managed club memberships (3) 85,571 84,965 0.7 % 85,509 84,741 0.9%
Dues per average same store membership, excluding managed club memberships (4) $854 $828 3.1 % $1,689 $1,638 3.1%
Revenue per average same store membership, excluding managed club memberships (4) $1,954 $1,931 1.2 % $3,480 $3,439 1.2%
____________________
(1) Percentage changes that are not
meaningful are denoted by "NM."
(2) New or Acquired Clubs include those
clubs which the Company is
currently operating as of June 16,
2015, that were acquired, opened
or added under management
agreements during the twenty-four
weeks ended June 16, 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 eight
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)
Second quarter ended Year to date ended
-------------------- ------------------
BSA June 16, June 17, % June 16, June 17, %
2015 2014 Change (1) 2015 2014 Change (1)
(12 weeks) (12 weeks) (24 weeks) (24 weeks)
--- --------- --------- --------- ---------
Same Store Clubs
Revenue
Dues $18,555 $17,804 4.2 % $37,225 $35,689 4.3 %
Food and Beverage 23,732 22,189 7.0 % 42,417 40,245 5.4 %
Other 2,637 2,636 - % 5,307 5,099 4.1 %
----- ----- --- ----- ----- ----
Revenue $44,924 $42,629 5.4 % $84,949 $81,033 4.8 %
Adjusted EBITDA $9,198 $8,246 11.5 % $16,604 $14,663 13.2 %
Adjusted EBITDA Margin 20.5 % 19.3 % 120 bps 19.5 % 18.1 % 140 bps
New or Acquired Clubs (2)
Revenue $1,111 $1 NM (1) $2,133 $3 NM (1)
Adjusted EBITDA $52 $(56) NM (1) $194 $(72) NM (1)
Total Business, Sports and Alumni Clubs
Revenue $46,035 $42,630 8.0 % $87,082 $81,036 7.5 %
Adjusted EBITDA $9,250 $8,190 12.9 % $16,798 $14,591 15.1 %
Adjusted EBITDA Margin 20.1 % 19.2 % 90 bps 19.3 % 18.0 % 130 bps
Same store memberships, excluding managed club memberships 54,508 55,133 (1.1) % 54,508 55,133 (1.1) %
Same store average membership, excluding managed club memberships (3) 54,681 54,911 (0.4) % 54,786 54,933 (0.3) %
Dues per average same store membership, excluding managed club memberships (4) $339 $324 4.6 % $679 $650 4.5 %
Revenue per average same store membership, excluding managed club memberships (4) $822 $776 5.9 % $1,551 $1,475 5.2 %
______________________
(1) Percentage changes that are not
meaningful are denoted by "NM."
(2) New or Acquired Clubs include
those clubs which the Company is
currently operating as of June
16, 2015, that were opened or
added under management agreements
during the twelve and twenty-
four weeks ended June 16, 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)
Second quarter ended Year to date ended Four Quarters Ended
-------------------- ------------------ -------------------
June 16, June 17, June 16, June 17, June 16,
2015 2014 2015 2014 2015
(12 weeks) (12 weeks) (24 weeks) (24 weeks) (52 weeks)
--------- --------- --------- --------- ---------
Net (loss) income $(223) $(17,477) $(4,499) $(21,265) $30,095
Interest expense 16,286 15,572 32,417 31,298 66,328
Income tax expense (benefit) 2,711 (7,966) (2,205) (8,830) (34,844)
Interest and investment income (1,595) (87) (1,679) (169) (4,095)
Depreciation and amortization 24,241 16,799 47,054 33,245 94,601
------ ------ ------ ------ ------
EBITDA $41,420 $6,841 $71,088 $34,279 $152,085
Impairments and disposition of assets (1) 7,516 3,429 10,792 5,498 18,137
Loss (income) from discontinued operations and divested clubs (2) 209 (120) 372 (216) 70
Loss on extinguishment of debt (3) - 31,498 - 31,498 -
Non-cash adjustments (4) 463 463 926 925 2,008
Other adjustments (5) 7,780 5,362 10,290 5,558 30,047
Equity-based compensation expense (6) 1,113 1,256 2,215 2,088 4,430
Acquisition adjustment (7) 1,718 1,012 3,560 2,073 7,131
Adjusted EBITDA $60,219 $49,741 $99,243 $81,703 $213,908
======= ======= ======= ======= ========
______________________
(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, franchise
taxes, adjustments to accruals for
unclaimed property settlements,
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 ClubCorp
Inc. 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
-------------------
June 16, 2015 June 17, 2014
(52 weeks) (53 weeks)
--------- ---------
Adjusted EBITDA (1) $213,908 $183,221
LESS:
Interest expense and principal amortization on long-term debt (2) 41,840 51,776
Cash paid for income taxes 4,438 4,162
Maintenance capital expenditures 39,138 27,730
Capital lease principal & interest expense 15,809 12,197
Levered Free Cash Flow $112,683 $87,356
======== =======
_____________________
(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 Twenty-Four Weeks Ended June 16, 2015 and June 17, 2014
(In thousands of dollars)
(Unaudited financial information)
Second quarter ended Year to date ended
-------------------- ------------------
June 16, June 17, % June 16, June 17, %
2015 2014 Change 2015 2014 Change
(12 weeks) (12 weeks) (24 weeks) (24 weeks)
--------- --------- --------- ---------
REVENUES:
Club operations $184,812 $146,253 26.4 % $337,261 $269,070 25.3 %
Food and beverage 77,934 64,055 21.7 % 126,683 106,361 19.1 %
Other revenues 1,001 1,110 (9.8) % 1,875 1,710 9.6 %
----- ----- ------ ----- ----- ----
Total revenues 263,747 211,418 24.8 % 465,819 377,141 23.5 %
DIRECT AND SELLING, GENERAL AND ADMINISTRATIVE EXPENSES:
Club operating costs exclusive of depreciation 169,587 133,444 27.1 % 306,232 244,430 25.3 %
Cost of food and beverage sales exclusive of depreciation 25,124 20,458 22.8 % 42,126 34,938 20.6 %
Depreciation and amortization 24,241 16,799 44.3 % 47,054 33,245 41.5 %
Provision for doubtful accounts 444 382 16.2 % 503 146 244.5 %
Loss on disposals of assets 6,502 2,534 156.6 % 9,722 4,603 111.2 %
Impairment of assets 1,014 895 13.3 % 1,070 895 19.6 %
Equity in loss (earnings) from unconsolidated ventures 423 (323) 231.0 % 455 (833) 154.6 %
Selling, general and administrative 19,232 15,688 22.6 % 34,621 27,184 27.4 %
------ ------ ----- ------ ------ -----
OPERATING INCOME 17,180 21,541 (20.2) % 24,036 32,533 (26.1) %
Interest and investment income 1,595 87 1,733.3 % 1,679 169 893.5 %
Interest expense (16,286) (15,572) (4.6) % (32,417) (31,298) (3.6) %
Loss on extinguishment of debt - (31,498) 100.0 % - (31,498) 100.0 %
--- ------- ------ --- ------- ------
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES 2,489 (25,442) 109.8 % (6,702) (30,094) 77.7 %
INCOME TAX (EXPENSE) BENEFIT (2,711) 7,966 (134.0) % 2,205 8,830 (75.0) %
------ ----- -------- ----- ----- -------
LOSS FROM CONTINUING OPERATIONS (222) (17,476) 98.7 % (4,497) (21,264) 78.9 %
Loss from discontinued clubs, net of income tax benefit (1) (1) - % (2) (1) (100.0) %
--- --- --- --- --- --------
NET LOSS (223) (17,477) 98.7 % (4,499) (21,265) 78.8 %
NET LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS 27 (136) 119.9 % 81 (74) 209.5 %
NET LOSS ATTRIBUTABLE TO CLUBCORP $(196) $(17,613) 98.9 % $(4,418) $(21,339) 79.3 %
===== ======== ===== ======= ======== =====
NET LOSS $(223) $(17,477) 98.7 % $(4,499) $(21,265) 78.8 %
Foreign currency translation, net of tax (664) 466 (242.5) % (1,267) 147 (961.9) %
OTHER COMPREHENSIVE (LOSS) INCOME (664) 466 (242.5) % (1,267) 147 (961.9) %
---- --- -------- ------ --- --------
COMPREHENSIVE LOSS (887) (17,011) 94.8 % (5,766) (21,118) 72.7 %
COMPREHENSIVE LOSS (INCOME) ATTRIBUTABLE TO NONCONTROLLING INTERESTS 27 (136) 119.9 % 81 (74) 209.5 %
--- ---- ------ --- --- ------
COMPREHENSIVE LOSS ATTRIBUTABLE TO CLUBCORP $(860) $(17,147) 95.0 % $(5,685) $(21,192) 73.2 %
===== ======== ===== ======= ======== =====
CLUBCORP HOLDINGS, INC.
UNAUDITED CONSOLIDATED CONDENSED BALANCE SHEETS
As of June 16, 2015 and December 30, 2014
(In thousands of dollars, except share and per share amounts)
(Unaudited financial information)
June 16, 2015 December 30, 2014
------------- -----------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $50,388 $75,047
Receivables, net of allowances 88,803 65,337
Inventories 25,431 20,931
Prepaids and other assets 20,088 15,776
Deferred tax assets, net 17,776 26,574
------ ------
Total current assets 202,486 203,665
Investments 4,813 5,774
Property and equipment, net 1,534,891 1,474,763
Notes receivable, net of allowances 5,869 8,262
Goodwill 312,811 312,811
Intangibles, net 33,551 34,960
Other assets 23,953 24,836
TOTAL ASSETS $2,118,374 $2,065,071
========== ==========
LIABILITIES AND EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $16,446 $18,025
Membership initiation deposits - current portion 143,678 135,583
Accounts payable 41,606 31,948
Accrued expenses 36,028 44,424
Accrued taxes 17,813 21,903
Other liabilities 81,571 59,550
------ ------
Total current liabilities 337,142 311,433
Long-term debt 1,018,542 965,187
Membership initiation deposits 203,945 203,062
Deferred tax liability, net 231,283 244,113
Other liabilities 119,624 120,417
------- -------
Total liabilities 1,910,536 1,844,212
EQUITY
Common stock of ClubCorp Holdings, Inc., $0.01 par value, 200,000,000 shares authorized; 64,732,012 and 64,443,332 issued and outstanding at June 16,
2015 and December 30, 2014, respectively 647 644
Additional paid-in capital 286,819 293,006
Accumulated other comprehensive loss (5,557) (4,290)
Retained deficit (83,861) (79,443)
------- -------
Total stockholders' equity 198,048 209,917
------- -------
Noncontrolling interests in consolidated subsidiaries and variable interest entities 9,790 10,942
----- ------
Total equity 207,838 220,859
------- -------
TOTAL LIABILITIES AND EQUITY $2,118,374 $2,065,071
========== ==========
CLUBCORP HOLDINGS, INC.
UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
For the Twelve and Twenty-Four Weeks Ended June 16, 2015 and June 17, 2014
(In thousands of dollars)
(Unaudited financial information)
Year to date ended
------------------
June 16, 2015 June 17, 2014
(24 weeks) (24 weeks)
--------- ---------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss $(4,499) $(21,265)
Adjustments to reconcile net loss to cash flows from operating activities:
Depreciation 45,673 33,029
Amortization 1,381 216
Asset impairments 1,070 895
Bad debt expense 515 142
Equity in loss (earnings) from unconsolidated ventures 455 (833)
Distribution from investment in unconsolidated ventures 1,980 1,844
Loss on disposals of assets 9,722 4,653
Debt issuance costs and amortization of term loan discount 2,657 5,189
Accretion of discount on member deposits 9,261 9,377
Amortization of above and below market rent intangibles (169) (140)
Equity-based compensation 2,215 2,088
Redemption premium payment included in loss on extinguishment of debt - 27,452
Net change in deferred tax assets and liabilities (4,032) (11,105)
Net change in prepaid expenses and other assets (8,305) (6,573)
Net change in receivables and membership notes (15,779) 15,781
Net change in accounts payable and accrued liabilities 3,140 (4,600)
Net change in other current liabilities 23,038 (7,529)
Net change in other long-term liabilities (4,851) 2,260
------ -----
Net cash provided by operating activities 63,472 50,881
------ ------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment (50,949) (35,459)
Acquisition of clubs (55,877) (17,187)
Proceeds from dispositions 576 248
Net change in restricted cash and capital reserve funds (14) (337)
Return of capital in equity investments - 29
--- ---
Net cash used in investing activities (106,264) (52,706)
-------- -------
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of long-term debt (7,626) (275,566)
Proceeds from new debt borrowings, net of loan discount - 348,250
Repayments of revolving credit facility borrowings - (11,200)
Proceeds from revolving credit facility borrowings 47,000 11,200
Redemption premium payment - (27,452)
Debt issuance and modification costs (1,506) (2,638)
Distribution to owners (16,784) (15,302)
Distributions to noncontrolling interest (1,071) -
Proceeds from new membership initiation deposits 330 451
Repayments of membership initiation deposits (638) (803)
---- ----
Net cash provided by financing activities 19,705 26,940
------ ------
EFFECT OF EXCHANGE RATE CHANGES ON CASH (97) 19
--- ---
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (23,184) 25,134
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 75,047 53,781
------ ------
CASH AND CASH EQUIVALENTS - END OF PERIOD $51,863 $78,915
======= =======
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for interest $26,285 $18,716
======= =======
Cash paid for income taxes $4,365 $2,650
====== ======
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/clubcorp-reports-record-second-quarter-results-and-reaffirms-2015-outlook-300117555.html
SOURCE ClubCorp Holdings, Inc.
