The company’s second-quarter revenue was $269 million, an increase of $5.2 million over last year, and year-to-date revenue has increased by $18 million to $483.8 million. ClubCorp also announced the promotion of Mark Burnett to President and Chief Operating Officer.
ClubCorp has announced financial results for its fiscal-year 2016 second quarter ended June 14. 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 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 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. 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 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.
ClubCorp also announced the promotion of Mark A. Burnett to the position of President and Chief Operating Officer. He will continue to report to ClubCorp’s CEO, Eric Affeldt.
“Mark’s promotion to President is the result of his excellent performance and contributions to the company during his tenure and demonstrates our commitment to developing talent and promoting from within,” said Affeldt. “The Board and I feel fortunate to have someone of Mark’s skill and industry experience as we continue to pursue our growth strategies and drive the company’s operational and financial performance. I look forward to working with Mark in his expanded role and responsibilities, which will also allow me to devote more time to business development and our strategic initiatives.”
As Chief Operating Officer, Burnett led the successful acquisition, integration and reinvention of Sequoia Golf, the largest acquisition in ClubCorp’s history. He has also led efforts and has overseen the acquisition of 25 additional acquired golf and country clubs and the reinvention of 55 legacy golf and country and business clubs during his career with ClubCorp.
Burnett joined ClubCorp in 2006 and brings over 25 years of experience managing and operating private clubs. Burnett was promoted to Chief Operating Officer in October 2013, and was previously Executive Vice President of Golf & Country Clubs. Prior to joining ClubCorp, Burnett held titles of Executive Vice President and Chief Operating Officer at American Golf Corporation, and President and Chief Executive Officer, Chief Operating Officer and Vice President of Golf Operations at KSL Fairways Golf Corporation.