The private club owner-operator announced financial results for its fiscal year ended December 31, 2013, including the 8% revenue increase, $26 million spent on reinvention capital, and a total membership increase of 2,037, or 1.4%. One of the firm’s most recent acquisitions was of Prestonwood CC in Dallas, for which ClubCorp drew $11.2 million from a credit line to make the purchase, with plans for $5 million in improvements.
ClubCorp, owner-operator of private golf and country clubs, announced financial results for its fiscal year ended December 31, 2013, including $815.1 million in revenue, increased $60.1 million, up 8% over the fiscal year ended December 25, 2012, largely due to increases in same-store growth.
ClubCorp reported adjusted earning before interest, taxes, depreciation and amortization of $177.4 million, increased $11.2 million, up 6.7% compared to fiscal year 2012. The company spent $26 million in reinvention capital at 12 clubs, with plans to spend $20 million across 11 clubs in 2014. Total memberships were 146,082, an increase of 2,037, up 1.4% over memberships the previous year.
ClubCorp acquired three golf and country clubs, and added two properties in March 2014, expanding its portfolio of owned and operated clubs to 156. Part of the March acquisitions was Prestonwood Country Club in Dallas, Texas, for which ClubCorp drew $11.2 million from a credit line to make the purchase, the Dallas Morning News reported.
The company also plans to spend more than $5 million on upgrades to the country club, which has been open for decades. Earlier this month ClubCorp announced that it had purchased the country club, and its two North Texas golf courses, from the Henry S. Miller family. At that time terms were not announced, the News reported.
“We’re really excited for the Prestonwood acquisition,” said Eric Affeldt, president and chief executive of ClubCorp. “Prestonwood was a very logical acquisition for us in that it’s right here in our backyard. We had been chatting with the family that owned the clubs. I think they agreed that we were the most logical buyer given the strength of our market here in D-FW.”
The purchases raises the company’s total portfolio in Dallas-Fort Worth to 17 clubs. The company plans to conduct focus groups with members to determine where to spend capital, Affeldt told the News.
“We anticipate spending in excess of $5 million improving the golf course [and] modernizing and refreshing the clubhouses as we’ve done throughout the country,” Affeldt said. “That tends to accelerate the revenue and [profit] growth when we come in and reinvent these clubs. Prestonwood will be reinvented.”