DALLAS, March 12, 2015 /PRNewswire/ — ClubCorp – The World Leader in Private Clubs (NYSE: MYCC) -announces its fiscal-year 2014 financial results for the fourth quarter and full-year ended December 30, 2014.

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The fourth quarter of fiscal 2014 consisted of 16 weeks, whereas the fourth quarter of fiscal 2013 consisted of 17 weeks. Total revenue, total adjusted EBITDA, new or acquired clubs revenue and new or acquired clubs adjusted EBITDA are presented on a fiscal quarter or fiscal year basis. However, to aid evaluation of same-store club performance, same-store clubs revenue and same-store clubs adjusted EBITDA are presented on a normalized basis to indicate the difference between the fourth quarter fiscal 2014 (16 weeks) versus a normalized fourth quarter fiscal 2013 (16-week basis) whereby the last week of 2013 is removed from the comparison. Similarly, year-over-year comparisons of same-store clubs for the full year, compares full-year fiscal 2014 (52 weeks) versus normalized full-year fiscal 2013 (52-week basis).

Fourth Quarter Results:

• Revenue increased $33.0 million to $302.5 million for the fourth quarter of 2014. Revenue was up 12.2% compared to the fourth quarter of 2013 due to revenue growth from newly acquired and same-store clubs.
• Adjusted EBITDA⁽¹⁾ increased $9.4 million to $69.5 million. Adjusted EBITDA was up 15.6% from increased revenue and improved variable labor expenses as a percent of revenue.
• Same-store Clubs. On a normalized 16-week basis⁽²⁾, same-store sales increased $4.3 million, up 1.8%. On a normalized 16-week basis, same-store adjusted EBITDA increased $3.7 million, up 5.4%.
• New or Acquired Clubs. Clubs acquired in 2013 and 2014, contributed incremental revenue of $40.9 million and adjusted EBITDA of $11.8 million.

Fiscal 2014 Results:

• Revenue increased $69.1 million to $884.2 million for the full-year fiscal full-year 2014. Revenue was up 8.5% compared to fiscal full-year 2013 due to revenue growth from newly acquired and same-store clubs.
• Adjusted EBITDA⁽¹⁾ increased $19.6 million to $196.8 million. Adjusted EBITDA was up 11.0% from increased revenue and improved variable labor expenses as a percent of revenue.
• Same-store Clubs. On a normalized 52-week basis⁽²⁾, same-store sales increased $22.0 million, up 2.8%. On a normalized 52-week basis, same-store adjusted EBITDA increased $13.5 million, up 6.5%.
• New or Acquired Clubs. Clubs acquired in 2013 and 2014, contributed incremental revenue of $59.7 million and adjusted EBITDA of $14.2 million.

2014 Fourth Quarter and Fiscal Year Summary:

(Unaudited financial information)

Quotes:

• Eric Affeldt, president and chief executive officer: “Fiscal 2014 was an outstanding year for us. In our first full fiscal year as a public company, we did exactly what we set out to do at our IPO – namely, deliver on our commitment to grow the business organically, through reinvention and via strategic acquisitions. Membership sales remain strong, acceptance of our O.N.E. product continues to climb, and our reinvented clubs and recent acquisitions continue to drive results. Including recent acquisitions, our results significantly exceed our long-term growth objective of 5% to 7% adjusted EBITDA growth. We now believe continued strong operating performance and recent acquisitions puts us on a five-year compound annual EBITDA growth rate between 8% and 9% by the end of 2015. We are optimistic about 2015, and are confident in our ability to execute our strategy, grow the business, and deliver another strong year of financial performance.”
• Curt McClellan, chief financial officer: “We are proud of our performance in 2014. This represents the fourth consecutive year of revenue and adjusted EBITDA growth. Since 2010, revenue has grown at a compound annual growth rate of 6.5%, while adjusted EBITDA has grown at a compound annual growth rate of 7%. We delivered another record year in overall membership growth. We have now reinvented 54 of our clubs, and have plans to reinvent another 29 clubs in 2015. The integration of Sequoia clubs is going extremely well, with many of our planned cost synergies now realized. While still in the early stages of rolling out O.N.E. at our newly acquired clubs, the results have been very promising. Again, the acquisition of Sequoia Golf represents a significant inflection point in the company’s history. Our continued execution of our growth strategy and disciplined approach to investment capital positions us to deliver solid financial results in 2015.”

Segment Highlights:

Golf and country clubs (GCC):
Fourth quarter GCC results:

• GCC total revenue increased $34.1 million to $235.3 million, up 16.9% versus the prior year; and GCC total adjusted EBITDA increased $12.8 million to $70.4 million, up 22.1%.
• On a normalized 16-week basis⁽²⁾, GCC same-store sales increased $3.4 million, up 1.8%, driven by an increase in same-store dues revenue up $3.8 million, or 4.4%, and same-store food & beverage revenue up $0.7 million, or 1.5%, offset by same-store golf operations revenue that declined $0.3 million, down (0.8)%. Additionally, same-store adjusted EBITDA increased $3.7 million, up 6.8% in the fourth quarter.
• Newly acquired golf and country clubs contributed incremental revenue of $39.2 million and incremental adjusted EBITDA of $11.8 million.

Full-year 2014 GCC results:

• GCC total revenue increased $66.6 million to $695.0 million, up 10.6% versus the prior year, and GCC total adjusted EBITDA increased $23.3 million to $203.5 million, up 12.9%.
• On a normalized 52-week basis⁽²⁾, GCC same-store sales increased $17.5 million, up 2.9%, driven by an increase in all three major revenue streams. Same-store dues revenue increased $12.7 million, up 4.5%, same-store food & beverage revenue increased $5.9 million, up 4.2%, and same-store golf operations revenue increased $1.0 million, up 0.7%. Additionally, same-store adjusted EBITDA increased $11.6 million, up 6.6%.
• Newly acquired golf and country clubs contributed incremental revenue of $57.5 million and incremental adjusted EBITDA of $14.4 million.

Business, sports and alumni clubs (BSA):
Fourth quarter BSA results:

• BSA total revenue decreased $0.4 million to $63.9 million, down (0.6)% versus the prior year; and BSA total adjusted EBITDA declined $0.8 million to $14.9 million, down (5.0)%.
• On a normalized 16-week basis⁽²⁾, BSA same-store sales increased $1.0 million, up 1.6%, driven by an increase in both same-store sales dues up $0.7 million, or 3.1%, and same-store food & beverage revenue up $0.5 million, or 1.6%. Additionally, same-store adjusted EBITDA was flat.
• New clubs contributed incremental revenue of $1.7 million and nominal incremental adjusted EBITDA.

Full-year 2014 BSA results:

• BSA total revenue increased $3.6 million to $184.0 million, up 2.0% versus the prior year; and BSA total adjusted EBITDA increased $0.8 million to $35.3 million, up 2.3%.
• On a normalized 52-week basis⁽²⁾, same-store sales increased $4.5 million, up 2.6%, driven increases in both dues and food & beverage revenue. Same-store dues revenue increased $1.6 million, up 2.1%, and same-store food & beverage revenue increased $3.4 million, up 3.8%. Additionally, same-store adjusted EBITDA increased $1.9 million, up 5.6%.
• New clubs contributed incremental revenue of $2.1 million and nominal incremental adjusted EBITDA.

Other Data:

• Reinvention. Since 2007, ClubCorp has reinvented 33 golf and country clubs and 21 business, sports and alumni clubs, or approximately 25% of ClubCorp’s current portfolio of clubs. In 2015, ClubCorp plans to invest a total of $42.1 million on reinvention projects, including $20.0 million on major reinventions projects across nine same-store golf and country clubs and four same-store business, sports and alumni clubs, approximately $15.0 million to reinvent nine clubs obtained in the acquisition of Sequoia Golf, and $7.1 million to reinvent seven recent single-club acquisitions.
• Acquisitions. In 2014, ClubCorp added more than 50 golf and country clubs, including the single-store acquisitions of Prestonwood Country Club in Dallas and Plano, Texas, TPC Piper Glen in Charlotte, North Carolina, TPC Michigan in Dearborn, Michigan, Oro Valley Country Club in Oro Valley, Arizona. ClubCorp also acquired Sequoia Golf, a multi course owner-operator based in Atlanta, Georgia. Additionally, ClubCorp opened an alumni club at the new Baylor University football stadium in Waco, Texas. Thus far in 2015, ClubCorp has acquired Ravinia Green Country Club and Rolling Green Country Club both just north of Chicago, Illinois. As of March 5, 2015, ClubCorp’s expanded portfolio includes 203 owned or operated clubs, of which 15 clubs are managed.
• Membership. Total memberships as of December 30, 2014 were 180,686, an increase of 34,843, up 23.9% over memberships at December 31, 2013. Same-store golf and country club memberships excluding managed clubs increased 0.9%, while total golf and country club memberships including newly acquired clubs and managed clubs increased 38.8.%. Same-store business, sports and alumni memberships excluding managed clubs grew 0.6%, while total business, sports and alumni club memberships increased 3.4%.
• O.N.E. and Other Upgrade Products. As of December 30, 2014, approximately 46% of memberships, excluding Sequoia Golf memberships, were enrolled in one or more of our upgrade programs compared to approximately 43% enrolled at the end of fiscal 2013. Incremental dues revenue related to upgrade programs accounted for approximately $37.6 million of total dues revenue for the fiscal year ended December 30, 2014, compared to approximately $34.5 million for the fiscal year ended December 31, 2013.
• Free Cash Flow⁽¹⁾. Free cash flow over the last four quarters was $110.3 million, an increase from $77.0 million a year ago.
• Capital Structure. On October 1, 2014, ClubCorp closed its acquisition of Sequoia Golf for which it paid $265 million. With the acquisition of Sequoia Golf, the company has amended its secured credit facilities and created one fungible term loan tranche of approximately $900 million at LIBOR plus 350 basis points with a 1% LIBOR floor.

Company Outlook:
The following guidance is based on current management expectations. All financial guidance amounts are estimates subject to change, including as a result of matters discussed under the “Forward-Looking Statements” cautionary language which follows, and the Company undertakes no duty to update its guidance. For fiscal year 2015, the Company expects to deliver revenue in the range of $1.00 billion to $1.03 billion and adjusted EBITDA in the range of $225.0 million to $235.0 million. This outlook fully integrates our acquisition of Sequoia Golf and results in year-over-year revenue growth of 13-16% and year-over-year adjusted EBITDA growth of 14-19%.

About ClubCorp Holdings:
Since its founding in 1957, Dallas-based ClubCorp has operated with the central purpose of Building Relationships and Enriching Lives. ClubCorp is a leading owner-operator of private golf and country clubs and private business clubs in North America. With its recent acquisition of Sequoia Golf, ClubCorp now owns or operates a portfolio of over 200 golf and country clubs, business clubs, sports clubs, and alumni clubs in 26 states, the District of Columbia and two foreign countries that serve over 430,000 members, with approximately 20,000 peak-season employees. ClubCorp Holdings, Inc. is a publicly traded company on the New York Stock Exchange (NYSE: MYCC). ClubCorp properties include: Firestone Country Club (Akron, Ohio); Mission Hills Country Club (Rancho Mirage, California); The Woodlands Country Club (The Woodlands, Texas); Capital Club Beijing; and Metropolitan Club Chicago. You can find ClubCorp on Facebook at facebook.com/clubcorp and on Twitter at @ClubCorp.

Conference Call:
The Company has added an earnings presentation to its earnings materials this quarter. The earnings presentation is available at ir.clubcorp.com. The Company will hold a conference call, March 12, 2015 at 10:00 a.m. CDT (11:00 a.m. EDT) to discuss its fourth quarter and full-year fiscal 2014 financial results. The conference call will be broadcast live and can be accessed via the Company’s website at ir.clubcorp.com. To participate in the teleconference, please call in a few minutes before the start time: 877-317-6789 for U.S. callers, 866-605-3852 for Canadian callers and 412-317-6789 for international callers and reference the ClubCorp fourth quarter conference call (confirmation code 10060717) when prompted. For those unable to participate in the live call, a replay of the earnings conference call will be available approximately one hour after the call through March 20, 2015. To access the replay dial: 877-344-7529 for U.S. callers, 855-669-9658 for Canadian callers and 412-317-0088 for international callers (confirmation code 10060717). Additionally, a webcast replay will be available at ir.clubcorp.com.

Statement Regarding Non-GAAP Financial Measures
EBITDA is defined as net income before interest expense, income taxes, interest and investment income, and depreciation and amortization. Adjusted EBITDA is defined as EBITDA plus or minus impairments, gain or loss on disposition and acquisition of assets, losses from discontinued operations, loss on extinguishment of debt, non-cash and other adjustments, equity-based compensation expense and an acquisition adjustment. The acquisition adjustment to revenues and Adjusted EBITDA within each segment represents estimated deferred revenue using current membership life estimates related to initiation payments that would have been recognized in the applicable period but for the application of purchase accounting in connection with the acquisition of CCI in 2006 by affiliates of KSL and the acquisition of Sequoia Golf on September 30, 2014. Adjusted EBITDA is based on the definition of Consolidated EBITDA as defined in the credit agreement governing the Secured Credit Facilities and may not be comparable to similarly titled measures reported by other companies.

We began using Adjusted EBITDA as our measurement of segment profit and loss in fiscal year 2014. Prior to this change, we utilized Segment EBITDA (Segment EBITDA) as our measurement of segment profit and loss, but we also presented Adjusted EBITDA on a consolidated basis. These two measurements have not produced materially different results. This change results in alignment of our internal measurement of segment profit and loss with the measurement used to evaluate our performance on a consolidated basis and reduces the number of non-GAAP measurements we report, thus simplifying our financial reporting. The manner in which we calculate Adjusted EBITDA has not changed.

In addition to Adjusted EBITDA, we are providing a Free Cash Flow (FCF) metric as an additional non-GAAP measure. We believe a FCF metric aids investors in their evaluation of the Company’s ability to generate cash, and determine the amount of capital available for general corporate purposes including, but not limited to discretionary growth CAPEX (e.g. reinventions or acquisitions), or cash dividends.

This earnings release and accompanying financial tables include supplemental non-GAAP financial measures titled Adjusted EBITDA and Free Cash Flow. Adjusted EBITDA and Free Cash Flow are not determined in accordance with GAAP and should not be considered in isolation, more meaningful than or as a substitute for a measure of performance prepared in accordance with GAAP and is not indicative of net income or loss as determined under GAAP. Non-GAAP financial measures have limitations that should be considered before using as a measure to evaluate the Company’s financial performance. Adjusted EBITDA and Free Cash Flow, as presented, may not be comparable to similarly titled measures reported by other companies due to varying methods of calculation.

The financial statement tables that accompany this press release include a reconciliation of non-GAAP financial measures to the applicable and most comparable GAAP financial measure.

Special Note on Forward-Looking Statements
In addition to historical information, this press release contains statements relating to future results (including certain projections and business trends) that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are subject to the “safe harbor” created by those sections. These forward-looking statements can be identified by the fact that they do not relate strictly to current or historical facts and often include words such as “may”, “should”, “expect”, “intend”, “will”, “estimate”, “anticipate”, “believe”, “predict”, “potential” or “continue”, or the negatives of these terms or variations of them or similar terminology in this press release and any attachment to identify forward-looking statements. All statements, other than statements of historical facts included in this press release, including statements concerning plans, objectives, goals, beliefs, business strategies, future events, business conditions, results of operations, financial position and business outlook, earnings guidance, business trends and other information are forward-looking statements. The forward-looking statements are not historical facts, and are based upon current expectations, estimates and projections, and various assumptions, many of which, by their nature, are inherently uncertain and beyond management’s control. All expectations, beliefs and projections are expressed in good faith and the Company believes there is a reasonable basis for them. However, there can be no assurance that management’s expectations, beliefs and projections will result or be achieved and actual results may vary materially from what is expressed in or indicated by the forward-looking statements.

These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the forward-looking statements contained in this press release, including among others: various factors beyond management’s control adversely affecting discretionary spending, membership count and facility usage and other risks, uncertainties and factors set forth in the sections entitled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2014.

Although the Company believes that these statements are based upon reasonable assumptions, it cannot guarantee future results and readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management’s opinions only as of the date of this press release. There can be no assurance that (i) the Company has correctly measured or identified all of the factors affecting its business or the extent of these factors’ likely impact, (ii) the available information with respect to these factors on which such analysis is based is complete or accurate, (iii) such analysis is correct or (iv) the Company’s strategy, which is based in part on this analysis, will be successful. Except as required by law, the Company undertakes no obligation to update or revise forward-looking statements to reflect new information or events or circumstances that occur after the date of this press release or to reflect the occurrence of unanticipated events or otherwise. Readers are advised to review the Company’s filings with the SEC (which are available from the SEC’s EDGAR database at www.sec.gov and via the Company’s website at ir.clubcorp.com/SEC).

Statement Regarding Definitions and Financial Measures
The definitions and basis of presentation for financial measures used in this release, including EBITDA, Adjusted EBITDA and same store measures, are discussed more fully in the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2014. This release should be read in conjunction with the Company’s Annual Report on Form 10-K for the fiscal year ended December 30, 2014.

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Notes:

(Financial Tables Follow)

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SOURCE ClubCorp Holdings, Inc.