ClubCorp Increases Revenue to Record $1.1 Billion in 2015

The acquisition of Bernardo Heights Country Club in California marked the ninth and final club acquired by ClubCorp in 2015 Photo courtesy ClubCorp
<p>The acquisition of Bernardo Heights Country Club in California marked the ninth and final club acquired by ClubCorp in 2015. (Photo courtesy ClubCorp.)</p>

​ClubCorp, Dallas, increased its full-year revenue in 2015 by 19 percent over 2014 to $1.1 billion, according to financials released Wednesday. Fourth quarter revenue in 2015 grew 9.6 percent to $331.7 million over the fourth quarter of 2014.

ClubCorp cited solid same-store revenue growth and the addition of Sequoia Golf and other recently acquired clubs as factors that contributed to revenue growth in 2015. Same-store revenues increased by 2.5 percent to $20.5 million in 2015 compared to 2014. The same-store revenue increase was driven primarily by higher dues revenue and food and beverage revenue despite a 0.02 percent decline in golf operations revenue.

ClubCorp's adjusted earnings before interest taxes depreciation and amortization (EBITDA) increased 14.8 percent in 2015 to $79.6 million, driven by higher revenue and improved margin performance across both same-store and new and recently acquired clubs.

"We delivered another year of record revenues and adjusted EBITDA and are positioned for excellent results again in 2016," ClubCorp CEO Eric Affeldt said in a statement. "The fundamentals of our business remain intact and continue to support our growth and investment strategies, which have driven five consecutive years of solid growth in both revenue and adjusted EBITDA, with our investments in reinventions and acquisitions delivering positive [net present value] returns in 2015. Our board and management remain dedicated to a balanced approach of capital allocation aligned with the company's growth strategy and focused on building long-term shareholder value. This approach is reflected in our plans to continue investing in our business. To that end, our board has authorized, for the first time, a share repurchase program of up to $50 million of our stock over the next two years."

Wednesday's release showed growth in ClubCorp's O.N.E. membership program, which offers enrollees 50 percent off a la carte dining at their home club, access to ClubCorp's clubs in the local community, and complimentary golf and dining privileges inside the ClubCorp network.

Approximately 50 percent of ClubCorp's memberships were enrolled in O.N.E. or similar upgrade programs at the end of 2015, compared to 39 percent of total memberships in 2014, ClubCorp noted. Total memberships excluding 13 managed clubs increased 2.8 percent in 2015 to 172,939 members.

"Our strong results not only speak to the stability of our membership model but also the strength and steadiness of our cash flows," ClubCorp Chief Financial Officer Curt McClellan said in a statement.

ClubCorp owned or operated 158 golf and country clubs as of Dec. 29, 2015. The company also owns or operates 49 business, sports and alumni clubs. Many of ClubCorp's properties include fitness amenities.

ClubCorp acquired nine clubs in 2015: Ravinia Green Country Club and Rolling Green Country Club near Chicago, Bermuda Run Country Club in North Carolina, Brookfield Country Club in Georgia, Firethorne Country Club in North Carolina,; Ford's Colony Country Club in Virginia, Temple Hills Country Club in Tennessee, The Legacy Golf Club in Florida (later sold) and Bernardo Heights Country Club in California. ClubCorp's lone acquisition so far in 2016 was this month's purchase of Marsh Creek Country Club in Florida.

ClubCorp ranked No. 5 on Club Industry's Top 100 Health Clubs of 2015 with 2014 revenue of $844.16 million.

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