ClubCorp — Q4 2015 Earnings Presentation
38 slides from ClubCorp's earnings presentation, Feb 24, 2016
Slide 1: Fiscal 2015 Q4 Performance
1 FISCAL 2015 Q4 PERFORMANCE February 24, 2016
Slide 2: Cautionary Statements
2 CAUTIONARY STATEMENTS Forward-Looking Statements Certain statements in this presentation may be considered forward-looking statements. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking stat
Slide 3: Business Overview
3 BUSINESS OVERVIEW Eric Affeldt, President and CEO
Slide 4: Fiscal Year 2015 Performance
4 FISCAL YEAR 2015 PERFORMANCE Continued to execute our three-pronged growth strategy • We delivered record fiscal year 2015 results: » FY15 revenue up 19% year-over-year (y/y) to $1,053 million » FY15 adjusted EBITDA(1) up 19% y/y to $234 million » FY15 membership, excluding managed clubs, up 2.8%
Slide 5: Executing Our Growth Strategy
5 EXECUTING OUR GROWTH STRATEGY Three-pronged growth strategy focused on increasing long-term shareholder value Organic Growth • Best-in-class, multi-functional clubs attract highly affluent member base • Sticky membership product creates highly stable, highly resilient revenue base • O.N.E. (Optima
Slide 6: The Value of the ClubCorp Network
6 THE VALUE OF THE CLUBCORP NETWORK Our O.N.E. offering is unparalleled in the industry Increased adoption of the O.N.E. offering … generates favorable economics » Introduced O.N.E. in 2010 and rolling out at new and recently acquired clubs » O.N.E. is offered at 152 clubs(1) » O.N.E. increases reve
Slide 7: FY2015 Same-Store Combined Club Results
7 FY2015 SAME-STORE COMBINED CLUB RESULTS Texas full-year results impacted by extensive wet weather during spring 2015 FY2015 Results (y/y %) • Total Same-store Combined Clubs: » Revenue $851.6M, bup 2.5% » Adj. EBITDA $241.2M, bup 6.3% • Texas Same-store Combined Clubs: » Revenue $267.5M, bup 2.0%
Slide 8: 2015 Texas Weather
8 2015 TEXAS WEATHER El niño created a 100-year rain event affecting ClubCorp results in Texas in 2015 Texas Precipitation • Dallas experienced more than 2x the normal rainfall with 64 inches of precipitation in 2015 • Houston experienced almost 80% above average rainfall with 75 inches of precipita
Slide 9: 4Q15 Same-Store Combined Club Results
9 4Q15 SAME-STORE COMBINED CLUB RESULTS Ex-Houston, revenue and adj. EBITDA growth accelerated in Texas during the 4Q 4Q15 Results (y/y %) • Total Same-store Combined Clubs: » Revenue $266.6M, bup 2.7% » Adj. EBITDA $79.9M, bup 8.0% • Texas Same-store Combined Clubs: » Revenue $86.9M, bup 3.1% » Adj
Slide 10: Acquisition Performance
10 ACQUISITION PERFORMANCE Acquisitions are delivering ~17% cash-on-cash returns; EBITDA multiple less than 6x (1) Adjusted EBITDA is a non-GAAP measure. See Appendix for a reconciliation to the most comparable financial measure calculated in accordance with GAAP. (2) Total Investment equals purchas
Slide 11: Positioned for Excellent Results Again in 2016
11 POSITIONED FOR EXCELLENT RESULTS AGAIN IN 2016 Our growth strategy continues to drive long-term shareholder value • The fundamentals of our business remain intact and continue to support our growth and investment strategies • We are well positioned in the markets that we serve and our clubs are l
Slide 12: Reinvention
12 REINVENTION Mark Burnett, COO
Slide 13: The Manor Golf and Country Club
THE MANOR GOLF AND COUNTRY CLUB CLUBCORP’ Alpharetta, GA ‘he onda Lediien Wa ProvATe CLL. ry screen TVs
Slide 14: Olde Atlanta Golf Club
OLDE ATLANTA GOLF CLUB CLUBCORP” Suwanee, GA
Slide 15: White Columns Country Club
WHITE COLUMNS COUNTRY CLUB CLUBCORP” Alpharetta, GA THE Wont LEADER w PRIVATE CLuBs®
Slide 16: Braelinn Golf Club
BRAELINN GOLF CLUB CLUBCORP’ Peachtree City, GA ‘The Wont LEADER mw Prvare chuost AFTER New bar grill
Slide 17: Centre Club
CENTRE CLUB CLUBCORP” Tampa, FL the oma tence owe ue
Slide 18: Black Bear
BLACK BEAR CLUBCORP’ Parker, CO ‘he onda Lediien Wa ProvATe CLL. New Craft Bar & Lo
Slide 19: Tower Club
TOWER CLUB CLUBCORP’ Fort Lauderdale, FL ‘The Wontn LeAGe® mw PRIVATE CLUaS® il MN a ial! “ania, ak.
Slide 20: Atlanta National Golf Club
ATLANTA NATIONAL GOLF CLUB CLUBCORP” Alpharetta, GA ‘he onda Lediien Wa ProvATe CLL. —a
Slide 21: Financial Overview
21 FINANCIAL OVERVIEW Curt McClellan, CFO
Slide 22: FY2015 ClubCorp Consolidated Results
22 FY2015 CLUBCORP CONSOLIDATED RESULTS Delivering results consistent with our key growth objectives $688 $720 $755 $815 $884 $1,053 2010 2011 2012 2013 (53wks) 2014 2015 $150 $157 $166 $177 $196 $234 21.8% 21.8% 21.9% 21.7% 22.2% 22.2% 2010 2011 2012 2013 (53wks) 2014 2015 Adj. EBITDA(1) $233.7M +1
Slide 23: FY2015 ClubCorp Consolidated Results: Growth
23 FY2015 CLUBCORP CONSOLIDATED RESULTS Consolidated revenue growth up +19.1% and adj. EBITDA growth up +19.0% 2.0% 5.5% 21.3% 21.1% Same-Store Revenue Same-store Adj. EBITDA Total Revenue Total Adj. EBITDA GCC Growth Year-over-year % 139,948 139,595 168,173 172,939 2014 Same-store 2015 Same-store 2
Slide 24: FY2015 Golf & Country Clubs (GCC)
24 FY2015 GOLF & COUNTRY CLUBS (GCC) Solid growth across key operating metrics 80,035 80,916 83,528 111,458 116,303 2011 Total 2012 Total 2013 Total 2014 Total 2015 Total Key operating metrics (y/y %) • Total GCC Results: » Revenue $842.6M, bup 21.3% » Adj. EBITDA $246.1M, bup 21.1% » Adj. EBITDA 29
Slide 25: 4Q15 Golf & Country Clubs (GCC)
25 4Q15 GOLF & COUNTRY CLUBS (GCC) Solid growth across key operating metrics Key operating metrics (y/y %) • Total GCC Results: » Revenue $259.9M, bup 10.6% » Adj. EBITDA $81.3M, bup 15.9% » Adj. EBITDA 31.3%, bup 140 bps • Same-store GCC Results: » Revenue $201.4M, bup 2.0% » Adj. EBITDA $63.4M, bu
Slide 26: FY15 Business, Sports & Alumni Clubs (BSA)
26 FY15 BUSINESS, SPORTS & ALUMNI CLUBS (BSA) Solid growth across key operating metrics 56,058 55,190 54,733 56,715 56,636 2011 Total 2012 Total 2013 Total 2014 Total 2015 Total Key operating metrics (y/y %) • Total BSA Results: » Revenue $195.3M, bup 6.4% » Adj. EBITDA $39.6M, bup 13.4% » Adj. EBIT
Slide 27: 4Q15 Business, Sports & Alumni Clubs (BSA)
27 4Q15 BUSINESS, SPORTS & ALUMNI CLUBS (BSA) Solid growth across key operating metrics Key operating metrics (y/y %) • Total BSA Results: » Revenue $67.8M, bup 6.2% » Adj. EBITDA $16.9M, bup 14.9% » Adj. EBITDA 25.0%, bup 190 bps • Same-store BSA Results: » Revenue $65.2M, bup 5.0% » Adj. EBITDA $1
Slide 28: FY2015 Capex
28 FY2015 CAPEX Continued investment in business … 2016 Capital Expenditures • 2016 maintenance capex: ~$57 million, ~5% of consolidated revenue » Plan to spend $39 million on maintenance of clubs » Intend to spend $18 million on corporate and IT related systems • 2016 expansion capital: ~$41 millio
Slide 29: FY15 Levered Free Cash Flow
29 FY15 LEVERED FREE CASH FLOW Attractive FCF generation … $82.7 $87.2 $99.2 $109.8 $110.7 $112.5 $108.4 $104.9 1Q14 LTM 2Q14 LTM 3Q14 LTM 4Q14 LTM 1Q15 LTM 2Q15 LTM 3Q15 LTM 4Q15 LTM Levered Free Cash Flow • (4.5%) y/y decrease in LTM levered FCF • 4Q15 LTM cash interest expense(2) was $46.3 millio
Slide 30: 2016 Outlook
30 2016 OUTLOOK The Company is positioned for excellent results again in 2016 Keys to achieving 2016 outlook … » Solid Same-store growth and operational execution » Strong revenue growth across all three primary revenue streams: dues, F&B and golf operations » Economy continues to grow, with no sign
Slide 31: Appendix
APPENDIX CLUBCORP
Slide 32: FY2015 Consolidated Results
32 FY2015 CONSOLIDATED RESULTS Combined Same-store clubs and combined new or acquired clubs performance (1) Change compares fourth quarter ended December 29, 2015 (16 weeks) to fourth quarter ended December 30, 2014 (16 weeks) (2) Change compares fiscal year ended December 29, 2015 (52 weeks) to fis
Slide 33: FY2015 Golf & Country Clubs (GCC)
33 FY2015 GOLF & COUNTRY CLUBS (GCC) GCC Same-store clubs and GCC new or acquired clubs performance (1) Change compares fourth quarter ended December 29, 2015 (16 weeks) to fourth quarter ended December 30, 2014 (16 weeks) (2) Change compares fiscal year ended December 29, 2015 (52 weeks) to fiscal
Slide 34: FY2015 Business, Sports & Alumni Clubs (BSA)
34 FY2015 BUSINESS, SPORTS & ALUMNI CLUBS (BSA) BSA Same-store clubs and BSA new or acquired clubs performance (1) Change compares fourth quarter ended December 29, 2015 (16 weeks) to fourth quarter ended December 30, 2014 (16 weeks) (2) Change compares fiscal year ended December 29, 2015 (52 weeks)
Slide 35: Net Income to Adjusted EBITDA Reconciliation
35 NET INCOME TO ADJUSTED EBITDA RECONCILIATION OF NON-GAAP MEASURES TO CLOSEST GAAP MEASURE (1) Includes non-cash impairment charges related to property and equipment and intangible assets and loss on disposals of assets (including property and equipment disposed of in connection with renovations).
Slide 36: Houston and Texas Same-Store Adjusted EBITDA
36 HOUSTON AND TEXAS SAME-STORE ADJUSTED EBITDA RECONCILIATION OF HOUSTON AND TEXAS SS ADJ. EBITDA TO TOTAL ADJ. EBITDA (1) Includes same-store and new & acquired Golf and Country clubs and same-store and new & acquired Business Sports and Alumni clubs, other than the same-store clubs located in Tex
Slide 37: Calculation of Levered Free Cash Flow
37 CALCULATION OF LEVERED FREE CASH FLOW RECONCILIATION OF NON-GAAP MEASURES TO CLOSEST GAAP MEASURE (1) See the Adjusted EBITDA reconciliation in the preceding "Reconciliation of Non-GAAP Measures to Closest GAAP Measure" table. (2) Interest on long-term debt excludes accretion of discount on membe
Slide 38: ClubCorp: The World Leader in Private Clubs
CLUBCORP’ THE WORLD LEADER IN PRIVATE CLUBS®