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Actionable news in MYCC: CLUBCORP HOLDINGS Inc,

ClubCorp Reports Strong Second Quarter Results, Announces Promotion of Mark Burnett to President and Announces Deal to Manage a New Business Club Atop of One World Trade Center in New York City

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ClubCorp Holdings, Inc.Click here for high-resolution version
  • Second quarter revenue was $269.0 million, up 2.0% due to solid increases in dues and F&B revenue
  • Second quarter net income was $5.8 million, up $6.0 million
  • Second quarter adjusted EBITDA was $63.3 million, up 5.3%
  • ClubCorp Promotes Mark Burnett to President and COO
  • ClubCorp signs management deal to operate a new Business Club in NYC

ClubCorp -- The World Leader in Private Clubs® (MYCC) -- announces financial results for its fiscal-year 2016 second quarter ended June 14, 2016. The second quarter of fiscal 2016 and fiscal 2015 consisted of 12 weeks. Year-to-date results of fiscal 2016 and fiscal 2015 consisted of 24 weeks. All growth percentages refer to year-over-year progress.

Second Quarter Results:

  • Revenue increased $5.2 million, or 2.0%, to $269.0 million for the second quarter of 2016.
  • Net Income increased $6.0 million to $5.8 million due primarily to fewer disposals of assets and lower selling, general and administrative expense.
  • Adjusted EBITDA(1) increased $3.2 million to $63.3 million, up 5.3%, driven by higher revenue, lower cost of sales and lower variable payroll and other operating expenses as a percentage of revenue.
  • Same Store Clubs(2) revenue was up $3.0 million, up 1.2% to $253.7 million, driven by increases in dues revenue up 3.8% and a la carte and private events food & beverage revenue up 0.8%. This result was offset by golf operations revenue down (1.7)% impacted by rain and flooding at several clubs in the Houston market.
  • Same-store adjusted EBITDA grew $4.7 million, up 6.7% to $75.1 million, due to increased revenue and favorable operating expenses as a percentage of revenue. Same-store Adjusted EBITDA margin increased 150 bps to 29.6%.
  • New or Acquired Clubs.(2) New clubs opened or acquired in 2015 and 2016 contributed revenue of $12.7 million and adjusted EBITDA of $1.6 million.

FY16 Year-to-date Results:

  • Revenue increased $18.0 million, or 3.9%, to $483.8 million for the first two quarters of the year.
  • Net Loss narrowed by $1.9 million, or 43.0%, to $(2.6) million.
  • Adjusted EBITDA(1) increased $6.4 million to $105.3 million, up 6.4%, driven by higher revenue and improved margin performance across both same-store and new and recently acquired clubs.
  • Same Store Clubs revenue was up $10.9 million, up 2.4% to $460.1 million, driven by increases across all three major revenue streams: dues revenue up 3.8%, a la carte and private events food & beverage revenue up 2.7%, and golf operations revenue 0.1%.
  • Same-store adjusted EBITDA grew $8.6 million, up 7.0% to $131.7 million, due to increased revenue and favorable operating expenses as a percentage of revenue. Same-store Adjusted EBITDA margin increased 120 bps to 28.6%.
  • New or Acquired Clubs.(2) New clubs opened or acquired in 2015 and 2016 contributed revenue of $20.4 million and adjusted EBITDA of $2.5 million.
2016 Second Quarter and Year to Date Summary:
(Unaudited financial information)
Second quarter ended Year to date ended
(In thousands, except for membership data) June 14,
2016
(12 weeks)
June 16,
2015
(12 weeks)
%
Change
June 14,
2016
(24 weeks)
June 16,
2015
(24 weeks)
%
Change
Total Revenue $ 268,974 $ 263,747 2.0 % $ 483,847 $ 465,819 3.9 %
Net income (loss) $ 5,750 $ (223 ) 2,678.5 % $ (2,563 ) $ (4,499 ) 43.0 %
Adjusted EBITDA (1)
Golf and Country Clubs $ 66,121 $ 61,618 7.3 % $ 116,261 $ 106,527 9.1 %
Business, Sports and Alumni Clubs $ 10,539 $ 9,215 14.4 % $ 17,872 $ 16,703 7.0 %
Other (3) $ (13,402 ) $ (10,732 ) (24.9 )% $ (28,809 ) $ (24,262 ) (18.7 )%
Adjusted EBITDA (1) $ 63,258 $ 60,101 5.3 % $ 105,324 $ 98,968 6.4 %
Total memberships, excluding managed club memberships 175,430 173,771 1.0 %

Quotes:

  • Eric Affeldt, chief executive officer: "We are very happy with our continued progress and growth. Our results represent the ninth consecutive quarter of record revenue and adjusted EBITDA resulting from the continued execution on our organic growth, reinvention and acquisition growth strategies. We are seeing increased activity...

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