The management firm raised its adjusted EBITDA outlook for 2015 for between $230 and $240 million, and announced a drive to achieve $300 million in annual adjusted EBITDA in 2018.
First-quarter results announced on April 30 by ClubCorp, the Dallas-based management firm, included these highlights
- First-quarter revenue was up $36.3 million, or 21.9%, to $202.1 million for the first quarter of 2015.
- Revenue for same-store clubs was up $4.6 million, or 2.8%, due primarily to higher dues revenue and increased food & beverage spending
“We are confident that our three-pronged growth strategy of organic growth, reinvention and acquisitions will continue to add long-term value to our members and shareholders.”said Eric Affeldt, President and Chief Executive Officer. “We are not only raising full-year guidance, but also laying out a framework to drive annual adjusted EBITDA to $300 million in 2018.
“We believe this objective can be achieved from our existing portfolio of clubs and recent acquisitions, by implementing our existing plans for reinvention and from continued execution of our organic growth initiatives. Achieving this objective does not assume any further acquisitions, instead any additional acquisitions would be incremental to this target,” Affeldt continued.
“The eight clubs we have acquired since the beginning of the year underscore our strategy to consolidate market share across a very fragmented industry,” Affeldt said. “We are very excited to have established a golf and country club presence in Chicago, where we already have two highly successful business clubs.
“Likewise, we have expanded our footprint across the southeast with a small portfolio acquisition of six properties in the second quarter. All of these clubs fit nicely within our existing network and provide members enrolled in our O.N.E. product with world-class golf and many other member benefits that remain unmatched in our industry.”
Added Curt McClellan, Chief Financial Officer,
“Our record results for the first quarter continue to demonstrate our ability to execute our strategy while driving revenue and prudently managing operating expenses. We are very pleased with the continued progress of our Sequoia Golf acquisition, and now believe we have achieved approximately $5 million of the $4 to $6 million in projected annualized cost synergies.
“Additionally, we continue to see wide adoption of our O.N.E product, including 42% enrollment at our newly acquired clubs,” said McClellan. “Our raised outlook for the balance of the year reflects our confidence based upon our membership growth to date, first quarter results and ability to execute, reinvent and integrate newly acquired clubs. Due to our pace of completed acquisitions, traction on organic growth and plans for reinvention, we are now teed up to drive toward $300 million of annual adjusted EBITDA in 2018.”