Drive shack earnings call9/4/2023 ![]() The Company maintained initiatives put in place earlier this year, including a re-positioned labor model designed to improve operational and financial performance, which yielded significant benefits in the third quarter as our operations generated positive cash flows at both the venue and course level. ![]() ![]() This increase is primarily due to the sale of the traditional golf course, which generated cash proceeds of $33.6 million. The Company expects to reopen its Orlando venue in December 2020.Īs of October 31, 2020, the Company had approximately $44 million of unrestricted cash on hand compared to approximately $12 million as of July 31, 2020. Despite venue capacity restrictions and group size limitations, the three venues generated total revenue of approximately $6 million during the third quarter. ![]() The Company’s entertainment golf venues in West Palm Beach, Richmond and Raleigh reopened during the second quarter and remained open throughout the third quarter. AGC’s total revenue decreased by $11 million compared to the third quarter 2019, largely due to event revenue, which decreased by almost $11 million during the same period. Overall, our traditional golf business generated total revenue of $60 million in the third quarter 2020, which includes $15 million of managed course expense reimbursements. During the same period, green and cart fee revenue increased 15% on our 31 public courses compared to the third quarter 2019, despite available tee times decreasing due to locally mandated restrictions. New full golf membership sales increased 48% and member rounds increased 36% on our five private courses compared to the third quarter 2019. The strong momentum and demand for traditional golf continued throughout the third quarter. I look forward to sharing more details on our upcoming earnings call.” We are also excited to announce that we have developed a plan to reopen our Orlando venue next month. We plan to further this momentum by launching our online reservation platform in December. We debuted our new 2-bay package in mid-September to encourage small event bookings in all Drive Shack locations and since our launch, the early response by our guests has been positive. Khouri continued, “Our teams have been highly engaged in innovating and developing new promotional offers geared towards smaller group gatherings in our Drive Shack venues to help drive traffic and generate increased revenue. We’ve taken actions to re-stabilize our business amid the current environment and believe we are positioned to advance the growth plans we laid out earlier this year.” We also delivered on a large strategic goal with closing the sale of our Rancho San Joaquin traditional golf course in October for nearly $34 million in net cash proceeds. “Over the past several months, we have aggressively managed costs to strengthen our financial position and implemented measures to preserve cash and sustain our liquidity. Both of these businesses delivered positive financial results in the quarter, even with the challenges we continue to face with local restrictions and mandates with large group gatherings,” said Chief Executive Officer Hana Khouri. “We are pleased with our third quarter results as we see our venues and courses continue to build momentum over the year. The Company also provided an update on the business, as well as measures it has taken to sustain liquidity. (the “Company”) (NYSE: DS) today reported its financial results for the third quarter ended September 30, 2020. NEW YORK-( BUSINESS WIRE)-Drive Shack Inc. ![]()
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