Clubcorp’s fourth quarter beats the street
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Clubcorp’s fourth quarter beats the street

American golf and country club owner ClubCorp reported fourth quarter and full year results for 2016 last week. The company managed to beat analysts’ expectations on the quarter, and turn in its sixth consecutive year of record results. In further news that should please investors, ClubCorp also announced the acquisition of North Hills Country Club.

ClubCorp’s share price has appreciated by more than 17% so far this year

clubcorp graph

SOURCE: Yahoo Finance

ClubCorp delivered adjusted earnings per share of 16¢ - the consensus estimate, according to Zacks Investment Research, was 15¢. This was on revenue of $345.3 million, again topping analysts’ expectations of $341 million.

For the full year, the company saw a rise in revenue of 3.4% to $1.1 billion. EBITDA also rose by 4.7% to $83.3 million. All percentages given here are in reference to the same metric a year ago. Perhaps most importantly, the underlying driver of ClubCorp’s business – total memberships to its golf and country clubs – also rose by 1.8% to 174,348.

ClubCorp CEO Eric Affeldt said:

“We are incredibly proud of what we accomplished in 2016. The success of our O.N.E. offering, reinventions and acquisitions embody the core competencies that are at the essence of who we are as a company… a successful membership business and a growing network of private lifestyle clubs that cater to our members' needs and wants. As a result, ClubCorp has produced six consecutive years of record revenue and adjusted EBITDA growth. Since 2010, revenue and adjusted EBITDA have grown 8.0% and 8.9%, respectively, compounded annually. To celebrate our 60th anniversary, we will be launching some exciting new product offerings that will expand our addressable market reaching even more prospective members.”

Disclosure
Dominion holds ClubCorp in its Global Trends Luxury Fund.


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