ClubCorp — Q2 2015 Earnings Presentation
31 slides from ClubCorp's earnings presentation, Jul 23, 2015
Slide 1: Fiscal 2015 Q2 Performance
1 FISCAL 2015 Q2 PERFORMANCE July 23, 2015
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: 2Q15 Performance
4 2Q15 PERFORMANCE Continue to execute our three-pronged growth strategy • We delivered record second quarter results: » 2Q15 revenue +25% year-over-year (y/y) to $264 million » 2Q15 adjusted EBITDA(1) +21% y/y to $60 million » 2Q15 membership, excluding managed clubs, +22% y/y to ~175k • Grew same
Slide 5: Executing Growth Strategy
5 EXECUTING GROWTH STRATEGY Economic drivers underlying growth strategy Our projected returns on invested capital (10-15% cash-on-cash return by year 3) position us for incremental growth and long-term shareholder value Superior Product & Member Experience Reinvention O.N.E. offering Increase Member
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 134 clubs(1) » Expanding O.N.E. offe
Slide 7: 2015 Reinventions: Lionsgate Country Club
7 2015 REINVENTIONS Lionsgate Country Club • Reinvention of member dining spaces to include a new bar, wine wall display and communal table • Added “Anytime Lounge” and media wall • Expanded exterior patio with fire pits and soft seating
Slide 8: 2015 Reinventions: Chantilly National Country Club
8 2015 REINVENTIONS Chantilly National Country Club • Expanded private event space from 140 to 240 seats • Expanded member bar and anytime grill featuring cabana seating, media area and communal tables • Added and expanded large exterior terrace dining with fire pits
Slide 9: 2015 Reinventions: Oakmont Country Club
9 2015 REINVENTIONS Oakmont Country Club • Expanded member anytime grille, new bar, cabana seating with TV's, communal tables • Added new fitness center within converted locker room space and new FFE, and AV throughout
Slide 10: 2015 Reinventions: Hackberry Country Club
10 2015 REINVENTIONS Hackberry Country Club • Expanded member anytime grille, new bar, cabana seating with TV's, glass wine wall, communal tables • Added covered structure over existing patio, new FFE, fire pit and AV throughout • Pool area received new cabanas, FFE and slide
Slide 11: 2015 Reinventions: White Columns Country Club
11 2015 REINVENTIONS White Columns Country Club • Built a new resort-style pool to compliment the existing pool • Added poolside cabanas, pool bar, large built-in slide, water splash pad area, landscaping and new FFE
Slide 12: 2015 Reinventions: Tower Tysons Business Club
12 2015 REINVENTIONS Tower Tysons Business Club • New member bar includes new media wall, communal table • Anytime lounge and upscale dining room featuring wine wall • Added productivity work zone in atrium lobby, with touch down rooms and other work spaces • Private event rooms received new AV and
Slide 13: 2015 Reinventions: Woodlands Tournament Club
13 2015 REINVENTIONS Woodlands Tournament Club • Reinvention of the member dining spaces, added new bar, communal table and built-in booths in dining room • New entry lobby with new work areas • New patio FFE and fire pit • Reinvented men's locker room
Slide 14: 2015 Reinventions: Treesdale Country Club
14 2015 REINVENTIONS Treesdale Country Club • Expanded Arnie's Tavern with cabana seating, communal table, shuffleboard, and medial wall • Added new kitchen to service the grille • Renovated upper level lobby and private event spaces
Slide 15: 2015 Reinventions: Canyon Creek Country Club
15 2015 REINVENTIONS Canyon Creek Country Club • Built new outdoor pool bar • Added new kids slide and splash pad • Resurfaced pool, added new cabanas and FFE throughout
Slide 16: We Are Reaffirming Our 2015 Outlook
16 WE ARE REAFFIRMING OUR 2015 OUTLOOK Our growth strategy continues to drive long-term shareholder value • We are confident in our ability to execute our growth strategy and deliver a superior product and exceptional member experience • We continue to be optimistic about 2015… and we are reaffirmin
Slide 17: Financial Overview
17 FINANCIAL OVERVIEW Curt McClellan, CFO
Slide 18: 2Q15 ClubCorp Consolidated Results
18 2Q15 CLUBCORP CONSOLIDATED RESULTS Delivering results consistent with our key growth objectives $688 $720 $755 $815 $884 $973 2010 2011 2012 2013 (53wks) 2014 2Q15 LTM $150 $157 $166 $177 $196 $214 21.8% 21.8% 22.0% 21.7% 22.2% 22.0% 2010 2011 2012 2013 (53wks) 2014 2Q15 LTM Adj. EBITDA(1) $60.2M
Slide 19: 2Q15 ClubCorp Consolidated Results
19 2Q15 CLUBCORP CONSOLIDATED RESULTS Solid growth across all major revenue streams and segments Key operating metrics (y/y %) • Total Consolidated Results: » Revenue $263.7M, 25% » Adj. EBITDA $60.2M, 21% » Adj. EBITDA 22.8%, (70 bps) • Revenue Growth by Revenue Type » Dues 25% » Food & Bev
Slide 20: 2Q15 Golf & Country Clubs (GCC)
20 2Q15 GOLF & COUNTRY CLUBS (GCC) Solid growth across key operating metrics 85,954 86,133 87,889 118,234 2Q14 Same-store 2Q15 Same-store 2Q14 Total 2Q15 Total Key operating metrics (y/y %) • Total GCC Results: » Revenue $213.6M, 27.8% » Adj. EBITDA $61.8M, 23.9% » Adj. EBITDA 28.9%, (90 bps)
Slide 21: 2Q15 Business, Sports & Alumni Clubs (BSA)
21 2Q15 BUSINESS, SPORTS & ALUMNI CLUBS (BSA) Solid growth across key operating metrics 55,133 54,508 55,346 56,349 2Q14 Same-store 2Q15 Same-store 2Q14 Total 2Q15 Total Key operating metrics (y/y %) • Total BSA Results: » Revenue $46.0M, 8.0% » Adj. EBITDA $9.3M, 12.9% » Adj. EBITDA 20.1%, 90
Slide 22: FY15 Capex
22 FY15 CAPEX Continued investment in business … 2015 YTD Capital Expenditures • 2015 YTD maintenance capex $24.1 million • 2015 YTD expansion capital: » Invested $26.8 million in ROI and reinvention capital to reinvent 15 clubs » Acquisition capital $55.9 million invested on eight clubs 2015 Capita
Slide 23: FY15 Levered Free Cash Flow
23 FY15 LEVERED FREE CASH FLOW Attractive FCF generation … $76.7 $82.9 $87.4 $99.4 $109.9 $110.8 $112.7 4Q13 LTM 1Q14 LTM 2Q14 LTM 3Q14 LTM 4Q14 LTM 1Q15 LTM 2Q15 LTM Levered Free Cash Flow • +29% y/y increase in LTM levered FCF • 2Q15 LTM cash interest expense(2) was $41.8 million • 2Q15 LTM cash t
Slide 24: 2015 Outlook
24 2015 OUTLOOK The Company reaffirms its outlook for fiscal 2015 Keys to achieving 2015 outlook … » Solid same store growth and operational execution » Solid revenue growth across all three primary revenue streams: dues, F&B and golf operations » Economy continues to grow, membership sales remain s
Slide 25: Appendix
APPENDIX CLUBCORT’
Slide 26: 2Q15 Consolidated Results
26 2Q15 CONSOLIDATED RESULTS Combined same store clubs and combined new or acquired clubs performance (1) Change compares first quarter ended June 16, 2015 (12 weeks) to first quarter ended June 17, 2014 (12 weeks) (2) Change compares first quarter ended June 16, 2015 (24 weeks) to first quarter end
Slide 27: 2Q15 Golf & Country Clubs (GCC)
27 2Q15 GOLF & COUNTRY CLUBS (GCC) GCC same store clubs and GCC new or acquired clubs performance (1) Change compares first quarter ended June 16, 2015 (12 weeks) to first quarter ended June 17, 2014 (12 weeks) (2) Change compares first quarter ended June 16, 2015 (24 weeks) to first quarter ended J
Slide 28: 2Q15 Business, Sports & Alumni Clubs (BSA)
28 2Q15 BUSINESS, SPORTS & ALUMNI CLUBS (BSA) BSA same store clubs and BSA new or acquired clubs performance (1) Change compares first quarter ended June 16, 2015 (12 weeks) to first quarter ended June 17, 2014 (12 weeks) (2) Change compares first quarter ended June 16, 2015 (24 weeks) to first quar
Slide 29: Net Income to Adjusted EBITDA Reconciliation
29 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, loss on disposals of assets (including property and equipment disposed of in connection with renovations) and
Slide 30: Calculation of Levered Free Cash Flow
30 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 31: ClubCorp
CLUBCORP THE WORLD LEADER IN PRIVATE CLUBS®