ClubCorp — Q3 2015 Earnings Presentation
30 slides from ClubCorp's earnings presentation, Oct 15, 2015
Slide 1: Fiscal 2015 Q3 Performance
1 FISCAL 2015 Q3 PERFORMANCE October 15, 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: 3Q15 Performance
4 3Q15 PERFORMANCE Continue to execute our three-pronged growth strategy • We delivered record third quarter results: » 3Q15 revenue up 25% year-over-year (y/y) to $255 million » 3Q15 adjusted EBITDA(1) up 21% y/y to $55 million » 3Q15 membership, excluding managed clubs, up 20% y/y to ~175k • Same-
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: Reinvention example: Charlotte, NC
CLUBCORP” Charlotte, NC THE WORLD LEADER IN PRIVATE CLUBS®
Slide 8: Reinvention example
CLUBCORP” THE WORLD LEADER IN PRIVATE CLUBS® th_outdoorlou ge a AFTER New barwith casual dinjhg area
Slide 9: Reinvention example: Houston, TX
CLUBCORP” Houston, TX ‘THE Worto LEADER w PRIVATE CLUBS®
Slide 10: Reinvention example: Dacula, GA
CLUBCORP” Dacula, GA JHE WER LEADER IW PRIVATE CUES? il AFTER New Bar & hile with big-screen TVs) }
Slide 11: White Columns Country Club, Alpharetta, GA
WHITE COLUMNS COUNTRY CLUB CLUBCORP” Alpharetta, GA THe WoRLD LEADER IN Private CLuBs®
Slide 12: Reinvention example: Cumming, GA
CLUBCORP” Cumming, GA THE WORLD LEADER IN PRIVATE CLUBS® : Ee i 2 TR sortton.
Slide 13: Reinvention example: Dearborn, MI
Dearborn, MI THE WORLD LEADER IN PRIVATE CLUBS AFTER ReinVented;b: AFTER Updated®&jining room
Slide 14: Continue Our Drive to $300 Million Annual Adj. EBITDA in 2018
14 CONTINUE OUR DRIVE TO $300 MILLION ANNUAL ADJ. EBITDA IN 2018 Multi-year framework for growth in Adj. EBITDA implied CAGR of +9-13% Multi-year Framework for Adjusted EBITDA Growth(2): Fiscal 2014 adjusted EBITDA ~$196M Long-term growth objective of 5-7% includes organic growth + reinventions on
Slide 15: We Are Tightening Our 2015 Outlook
15 WE ARE TIGHTENING OUR 2015 OUTLOOK Our growth strategy continues to drive long-term shareholder value • Year-to-date revenue and adjusted EBITDA are up 24% and 21%, respectively • Given our progress to date, we have tightened the range on our full-year 2015 outlook • We now anticipate delivering
Slide 16: Financial Overview
16 FINANCIAL OVERVIEW Curt McClellan, CFO
Slide 17: 3Q15 ClubCorp Consolidated Results
17 3Q15 CLUBCORP CONSOLIDATED RESULTS Delivering results consistent with our key growth objectives $688 $720 $755 $815 $884 $1,024 2010 2011 2012 2013 (53wks) 2014 3Q15 LTM $150 $157 $166 $177 $196 $223 21.8% 21.8% 22.0% 21.7% 22.2% 21.8% 2010 2011 2012 2013 (53wks) 2014 3Q15 LTM Adj. EBITDA(1) $54.
Slide 18: 3Q15 ClubCorp Consolidated Results: Growth Across Revenue Streams
18 3Q15 CLUBCORP CONSOLIDATED RESULTS Solid growth across all major revenue streams and segments Key operating metrics (y/y %) • Total Consolidated Results: » Revenue $255.4M, 25% » Adj. EBITDA $54.9M, 21% » Adj. EBITDA 21.5%, (70 bps) • Revenue Growth by Revenue Type » Dues 26% » Food & Bev
Slide 19: 3Q15 Golf & Country Clubs (GCC)
19 3Q15 GOLF & COUNTRY CLUBS (GCC) Solid growth across key operating metrics 86,563 86,482 89,233 118,496 3Q14 Same-store 3Q15 Same-store 3Q14 Total 3Q15 Total Key operating metrics (y/y %) • Total GCC Results: » Revenue $211.0M, 28.0% » Adj. EBITDA $58.1M, 24.2% » Adj. EBITDA 27.6%, (80 bps)
Slide 20: 3Q15 Business, Sports & Alumni Clubs (BSA)
20 3Q15 BUSINESS, SPORTS & ALUMNI CLUBS (BSA) Solid growth across key operating metrics 55,281 54,490 56,401 56,666 3Q14 Same-store 3Q15 Same-store 3Q14 Total 3Q15 Total Key operating metrics (y/y %) • Total BSA Results: » Revenue $40.6M, 4.3% » Adj. EBITDA $6.0M, 5.0% » Adj. EBITDA 14.8%, 10
Slide 21: FY15 Capex
21 FY15 CAPEX Continued investment in business … 2015 YTD Capital Expenditures • 2015 YTD maintenance capex $41.1 million • 2015 YTD expansion capital: » Invested $35.0 million in ROI and expansion capital and completed reinvention on 19 clubs » Acquisition capital $55.9 million invested on eight cl
Slide 22: FY15 Levered Free Cash Flow
22 FY15 LEVERED FREE CASH FLOW Attractive FCF generation … $82.9 $87.4 $99.4 $109.9 $110.8 $112.7 $108.5 1Q14 LTM 2Q14 LTM 3Q14 LTM 4Q14 LTM 1Q15 LTM 2Q15 LTM 3Q15 LTM Levered Free Cash Flow • +9% y/y increase in LTM levered FCF • 3Q15 LTM cash interest expense(2) was $45.1 million • 3Q15 LTM cash t
Slide 23: 2015 Outlook
23 2015 OUTLOOK The Company tightening 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
Slide 24: Appendix
APPENDIX CLUBCORT’
Slide 25: 3Q15 Consolidated Results: Same-store and New or Acquired Clubs
25 3Q15 CONSOLIDATED RESULTS Combined Same-store clubs and combined new or acquired clubs performance (1) Change compares third quarter ended September 8, 2015 (12 weeks) to third quarter ended September 9, 2014 (12 weeks) (2) Change compares third quarter ended September 8, 2015 (36 weeks) to third
Slide 26: 3Q15 Golf & Country Clubs (GCC)
26 3Q15 GOLF & COUNTRY CLUBS (GCC) GCC Same-store clubs and GCC new or acquired clubs performance (1) Change compares third quarter ended September 8, 2015 (12 weeks) to third quarter ended September 9, 2014 (12 weeks) (2) Change compares third quarter ended September 8, 2015 (36 weeks) to third qua
Slide 27: 3Q15 Business, Sports & Alumni Clubs (BSA)
27 3Q15 BUSINESS, SPORTS & ALUMNI CLUBS (BSA) BSA Same-store clubs and BSA new or acquired clubs performance (1) Change compares third quarter ended September 8, 2015 (12 weeks) to third quarter ended September 9, 2014 (12 weeks) (2) Change compares third quarter ended September 8, 2015 (36 weeks) t
Slide 28: Net Income to Adjusted EBITDA Reconciliation
28 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 29: Calculation of Levered Free Cash Flow
29 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 30: ClubCorp
CLUBCORP THE WORLD LEADER IN PRIVATE CLURS®