The Dallas-based owner and operator of private clubs has seen revenue increase $4 million or 1.6% in the third quarter over the previous year, and net income has remained flat. Going forward, the company plans to reduce capital spending, including fewer planned same-store reinventions in 2017, and using excess cash to pay down debt.
ClubCorp, the Dallas-based owner and operator of private clubs, has announced financial results for its fiscal-year 2016 third quarter ended September 6. All growth percentages refer to year-over-year progress.
Third Quarter Results:
- Revenue increased $4.0 million, or 1.6%, to $259.3 million for the third quarter of 2016.
- Net Income was flat to prior at $1.2 million.
- Adjusted EBITDA increased $4.1 million to $59.0 million, up 7.5%, largely from increased revenue and from effectively managing and controlling variable operating expenses.
- Same store clubs revenue was up $1.1 million, up 0.5% to $242.1 million, driven by increases in dues revenue up 2.6% and a la carte and private events food & beverage revenue up 0.5%. This result was offset by golf operations revenue down (3.0)% impacted by lower rounds played.
- Same-store adjusted EBITDA grew $1.7 million, up 2.7% to $65.0 million, due to increased revenue and favorable operating expenses as a percentage of revenue. Same-store Adjusted EBITDA margin increased 50 bps to 26.8%.
- New clubs opened or acquired in 2015 and 2016 contributed revenue of $13.7 million and adjusted EBITDA of $1.8 million.
2016 Year-to-date Results:
- Revenue increased $22.0 million, or 3.1%, to $743.2 million for the first three quarters of the year.
- Net Loss narrowed by $1.9 million, or 58.3%, to $(1.4) million.
- Adjusted EBITDA increased $10.5 million to $164.3 million, up 6.8%, driven by higher revenue and improved margin performance across both same-store and new and recently acquired clubs.
- Same Store Clubs revenue was up $12.1 million, up 1.7% to $702.1 million, driven by increases in dues revenue up 3.4% and food & beverage revenue up 1.9%, offset by golf operations revenue down (1.1)%.
- Same-store adjusted EBITDA grew $10.3 million, up 5.5% to $196.6 million, due to increased revenue and favorable operating expenses as a percentage of revenue. Same-store Adjusted EBITDA margin increased 100 bps to 28.0%.
- New clubs opened or acquired in 2015 and 2016 contributed revenue of $34.2 million and adjusted EBITDA of $4.2 million.
“We delivered our tenth quarter of consecutive revenue and adjusted EBITDA growth. Since going public we have grown revenue and adjusted EBITDA by over 30% by implementing a successful three pronged strategy focused on organic growth, reinvention and acquisitions,” said Eric Affeldt, Chief Executive Officer. “Part of this strategy anticipated reinvention of clubs we acquired in 2014 and 2015. Much of this planned investment is now complete. As a result, the Company is now prepared to de-lever its balance sheet below 4.0x. We plan to de-lever our balance sheet by continuing to grow adjusted EBITDA, reducing capital spend, including fewer planned same-store reinventions in 2017, and using excess cash to pay down debt.”
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