Drive Shack Inc. (NYSE: DS; the “Company”), an owner and
operator of golf entertainment venues and traditional golf courses,
is excited to announce the appointment of Hana Khouri as President
of the Company.
“Hana has a track record of successfully operating golf
entertainment venues and extensive knowledge of the industry,” said
Wes Edens, Chairman of the Company’s Board of Directors. “I am
confident that she is the right person to lead our expansion and
execute the strategic priorities of this business.”
Ms. Khouri worked at Topgolf alongside Ken May, Chief Executive
Officer of Drive Shack, from 2013-2018, serving in various roles
including National Director of Operations and International
Director of Operations. During this time, she oversaw the opening
of more than 20 Topgolf locations globally.
Additionally, the Company announced a new venue format referred
to as the “Urban Box.” This smaller, indoor store is designed for
dense, urban locations and will expand U.S. store potential by over
100 markets. The indoor concept is set to debut alongside Drive
Shack’s mid-size venue in 2020.
The Company also announced that during the quarter it completed
the sale of two public golf properties in New Jersey and California
and two private golf properties in Tennessee and Washington for
total gross proceeds of approximately $20 million.
For the three months ended June 30, 2019, the Company reported a
loss of $14 million, or ($0.21) per share, compared to a loss of $6
million, or ($0.09) share, in the corresponding period of the prior
year. The difference is primarily related to the amount of
decreased operating results associated with the sale of traditional
golf properties.
The Board of Directors of the Company declared dividends on the
Company’s preferred stock for the period beginning August 1, 2019
and ending October 31, 2019. The dividends are payable on October
31, 2019, to holders of record of preferred stock on October 1,
2019, in an amount equal to $0.609375, $0.503125 and $0.523438 per
share on the 9.750% Series B, 8.050% Series C and 8.375% Series D
preferred stock, respectively.
Conference Call Today
Management will hold a conference call to discuss these results
today at 9:00 a.m. Eastern Time. The conference call can be
accessed over the phone by dialing 1-866-913-6930 (from within the
U.S.) or 1-409-983-9881 (from outside of the U.S.) ten minutes
prior to the scheduled start of the call; please reference
conference ID “9575248.”
A copy of the earnings release will be posted to the Investor
Relations section of Drive Shack Inc.’s website,
http://ir.driveshack.com.
A simultaneous webcast of the conference call will be available
to the public on a listen-only basis at http://ir.driveshack.com.
Please allow extra time prior to the call to visit the website and
download any necessary software required to listen to the internet
broadcast.
A telephonic replay of the conference call will also be
available two hours following the call’s completion through 11:30
P.M. Eastern Time on Tuesday, August 6, 2019 by dialing
1-800-585-8367 (from within the U.S.) or 1-404-537-3406 (from
outside of the U.S.); please reference conference ID “9575248.”
Additional Information
For additional information that management believes to be useful
for investors, please refer to the presentation posted on the
Investor Relations section of the Company’s website,
http://ir.driveshack.com. For consolidated information, please
refer to the Company’s most recent Quarterly Report on Form 10-Q or
Annual Report on Form 10-K, which are available on the Company’s
website, http://ir.driveshack.com.
About Drive Shack
Drive Shack Inc. is a leading owner and operator of golf-related
leisure and entertainment businesses.
Forward-Looking Statements: Certain items in this Press
Release may constitute forward looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including, but not limited to, statements regarding the Company’s
(a) future sales of selected owned golf properties, including
without limitation statements relating to the timing and amount of
anticipated proceeds, (b) our plans and expectations to optimize
the operation of, and grow, our existing leased and managed golf
properties, (c) redeployment of cash from our generated liquidity,
(d) targeted multiples, yields and returns, (e) our ability to
terminate or restructure leases and (f) the Company’s current
business plan and expectations relating to our Drive Shack venues,
including (i) the number of venues that we may be able to develop,
(ii) timing and frequency for opening venues, (iii) financial
performance of these venues and capital expenditure costs, (iv) the
growth of the golf, golf entertainment, and eatertainment industry
and business, and (v) our ability to enhance technology. These
statements are based on management's current expectations and
beliefs and are subject to a number of risks, trends and
uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements, many of
which are beyond our control. We cannot give any assurances that
management’s current expectations will be attained. For a
discussion of some of the risks and important factors that could
cause actual results to differ materially from such forward-looking
statements, see the sections entitled “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and
Results of Operations” in the Company’s periodic reports filed with
the Securities and Exchange Commission (“SEC”), which are available
on the Company’s website (www.http://ir.driveshack.com). In
addition, new risks and uncertainties emerge from time to time, and
it is not possible to predict or assess the impact of every factor
that may cause actual results to differ from those contained in any
forward-looking statements. Accordingly, you should not place undue
reliance on any forward-looking statements contained in this Press
Release. Forward-looking statements speak only as of the date of
this Press Release. We expressly disclaim any obligation to release
publicly any updates or revisions to any forward-looking statements
contained herein to reflect any change in expectations with regard
thereto or change in events, conditions or circumstances on which
any statement is based.
Consolidated Balance Sheets
(Unaudited)
June 30, 2019
December 31, 2018
Assets
Current assets
Cash and cash equivalents
$ 39,683
$ 79,235
Restricted cash
4,299
3,326
Accounts receivable, net
6,341
7,518
Real estate assets,
held-for-sale, net
33,355
75,862
Real estate securities,
available-for-sale
3,071
2,953
Other current assets
20,471
20,505
Total current assets
107,220
189,399
Restricted cash, noncurrent
258
258
Property and equipment, net of accumulated
depreciation
177,619
132,605
Operating lease right-of-use assets
225,666
—
Intangibles, net of accumulated
amortization
20,115
48,388
Other investments
23,300
22,613
Other assets
4,897
8,684
Total assets
$ 559,075
$ 401,947
Liabilities and Equity
Current liabilities
Obligations under finance
leases
$ 7,675
$ 5,489
Membership deposit
liabilities
8,793
8,861
Accounts payable and accrued
expenses
41,375
45,284
Deferred revenue
10,905
18,793
Real estate liabilities,
held-for-sale
33
2,947
Other current liabilities
28,075
22,285
Total current liabilities
96,856
103,659
Credit facilities and obligations under
finance leases - noncurrent
15,433
10,489
Operating lease liabilities -
noncurrent
195,347
—
Junior subordinated notes payable
51,196
51,200
Membership deposit liabilities,
noncurrent
94,156
90,684
Deferred revenue, noncurrent
5,930
6,016
Other liabilities
3,035
5,232
Total liabilities
$ 461,953
$ 267,280
Commitments and contingencies
Equity
Preferred stock, $0.01 par value,
100,000,000 shares authorized, 1,347,321 shares of 9.75% Series B
Cumulative Redeemable Preferred Stock, 496,000 shares of 8.05%
Series C Cumulative Redeemable Preferred Stock, and 620,000 shares
of 8.375% Series D Cumulative Redeemable Preferred Stock,
liquidation preference $25.00 per share, issued and outstanding as
of June 30, 2019 and December 31, 2018
$ 61,583
$ 61,583
Common stock, $0.01 par value,
1,000,000,000 shares authorized, 67,033,104 and 67,027,104 shares
issued and outstanding at June 30, 2019 and December 31, 2018,
respectively
670
670
Additional paid-in capital
3,178,478
3,175,843
Accumulated deficit
(3,145,487)
(3,105,307)
Accumulated other comprehensive
income
1,878
1,878
Total equity
$ 97,122
$ 134,667
Total liabilities and
equity
$ 559,075
$ 401,947
Consolidated Statements of Operations
Three Months Ended June
30,
Six Months Ended June
30,
2019
2018
2019
2018
Revenues
Golf operations
$ 57,386
$ 69,150
$ 102,092
$ 122,704
Sales of food and beverages
14,229
21,854
23,475
34,960
Total revenues
71,615
91,004
125,567
157,664
Operating costs
Operating expenses
58,720
67,042
106,443
124,421
Cost of sales - food and
beverages
3,904
6,193
6,601
10,233
General and administrative
expense
13,607
10,268
25,226
19,462
Depreciation and
amortization
5,122
4,315
10,046
9,863
Pre-opening costs
1,700
247
2,879
1,803
Impairment
118
—
4,206
1,473
Realized and unrealized (gain)
on investments
—
(89)
—
(331)
Total operating costs
83,171
87,976
155,401
166,924
Operating loss
(11,556)
3,028
(29,834)
(9,260)
Other income (expenses)
Interest and investment
income
265
469
608
915
Interest expense, net
(1,795)
(4,601)
(3,947)
(8,650)
Other income (loss), net
127
(3,699)
5,614
(4,105)
Total other income
(expenses)
(1,403)
(7,831)
2,275
(11,840)
Loss before income tax
(12,959)
(4,803)
(27,559)
(21,100)
Income tax expense
—
—
—
—
Net Loss
(12,959)
(4,803)
(27,559)
(21,100)
Preferred dividends
(1,395)
(1,395)
(2,790)
(2,790)
Loss Applicable to Common
Stockholders
$ (14,354)
$ (6,198)
$ (30,349)
$ (23,890)
Loss Applicable to Common Stock, per
share
Basic
$ (0.21)
$ (0.09)
$ (0.45)
$ (0.36)
Diluted
$ (0.21)
$ (0.09)
$ (0.45)
$ (0.36)
Weighted Average Number of Shares of
Common Stock Outstanding
Basic
67,029,610
66,977,104
67,028,364
66,977,104
Diluted
67,029,610
66,977,104
67,028,364
66,977,104
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190806005354/en/
Austin Pruitt Drive Shack Inc. 646-585-5591
IR@driveshack.com
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