The owner/operator of golf and country clubs posted revenue of $255.4 million for the third quarter of 2015, with year-to-date revenue up 24% to $721.2 million. Year-to-date same-store revenue is up 2.3%, with dues revenue up 3.9% and food & beverage revenue up 2.8%, offset by golf operations revenue, which is down 0.7%.
ClubCorp has announced financial results for its fiscal-year 2015 third quarter ended September 8, 2015. For the third quarter, revenue increased by $50.9 million, or 24.9%, to $255.4 million. Year-to-date, revenue is up 24%, to $721.2 million, reflecting solid same-store revenue growth, and the addition of Sequoia Golf and several other recently acquired clubs.
Adjusted EBITDA increased $9.6 million to $54.9 million, up 21.2% for the quarter, while full year EBITDA increased $27.1 million to $154 million, up 21.3%, driven by an increase in dues and upgrade revenue at same-store clubs and favorable operating expenses.
Same-store revenue was up $3.3 million, or 1.7%, driven primarily by higher dues revenue, for the quarter. For the year, same-store revenue was up $13.4 million, or 2.3%, with dues revenue up 3.9% and food & beverage revenue up 2.8%, offset by golf operations revenue down 0.7% year-to-date.
New clubs opened in 2014 or clubs acquired in 2014 and 2015 contributed revenue growth of $44.6 million for the third quarter, and $118.1 million for the year-to-date.
“We delivered another record quarter with strong same-store growth in both dues and food and beverage revenue, and our golf operations revenue improved slightly after two consecutive quarters of decline,” said ClubCorp President and CEO Eric Affeldt. “Our acquisitions are performing well with revenue surpassing our underwriting estimates, and we anticipate performance at these clubs to continue to ramp.
“Additionally, we have decided to accelerate our reinvention at several clubs acquired with Sequoia Golf. We are not increasing the total reinvention capital committed to Sequoia clubs, but instead we are pulling forward investments that we had planned for 2016. We believe this added investment in 2015 will minimize member disruption as we head into 2016 and continue to build on a sound foundation for future growth. We look forward to a strong finish to this year, and continued execution by all members of our team.”
Segment highlights for golf and country clubs (GCC) include:
- GCC total revenue of $211.0 million for the third quarter of 2015 increased $46.2 million, up 28.0%, compared to the third quarter of 2014.
- GCC adjusted EBITDA was $58.1 million, an increase of $11.3 million, up 24.2%.
- GCC adjusted EBITDA margin was 27.6%, a decline of 80 basis points versus the third quarter of 2014 due primarily to lower adjusted EBITDA margins at recently acquired clubs.
- Same-store revenue increased $2.5 million, up 1.5%, driven primarily by increases in dues revenue up 3.4%, and food & beverage revenue up 1.4%, offset by a decline in other revenue. Golf operations revenue was up 0.1% year-over-year.
- Same-store adjusted EBITDA increased $1.9 million, up 4.1%, due largely to increased dues and food and beverage revenue, and favorable variable payroll expenses as a percentage of revenue.
- Same-store adjusted EBITDA margin improved 80 basis points to 29.6%.
- Recently acquired GCC clubs contributed revenue growth of $43.7 million and adjusted EBITDA growth of $9.4 million.
Highlights for business, sports and alumni clubs (BSA) include:
- BSA revenue of $40.6 million for the third quarter of 2015 increased $1.7 million, up 4.3%, compared to the third quarter, 2014 driven by growth in both same-store and new and acquired clubs.
- BSA adjusted EBITDA was $6.0 million, an increase $0.3 million, up 5.0%.
- BSA adjusted EBITDA margin was 14.8%, a 10 basis point margin improvement versus the third quarter 2014.
- Same-store revenue increased $0.8 million, up 2.2%, driven by increases in dues revenue and a slight increase in food and beverage revenue.
- Same-store adjusted EBITDA was flat versus the third quarter 2014.
- Same-store adjusted EBITDA margin declined 30 basis points to 15.0% due primarily to higher payroll related expenses as a percentage of revenue.
- New or recently acquired BSA clubs contributed revenue of $0.9 million and adjusted EBITDA of $0.3 million.
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