The advantage of focusing Puttery locations over building more Drive Shacks is that the format requires less space with lower development costs. One development for the company is the upcoming launch of its newest format called "Puttery." In contrast to the Drive Shack concept centered around the "driving range", think of Puttery as a sports-bar/ lounge for adults with a mini-golf putting course and other tech-based golf games. (Source: Company IR) Puttery as the Near-Term Growth Opportunity Fewer companies holding corporate events along with limited large-group parties have also pressured the results considering the circumstances. Q4 segment revenues reached 78% of Q1 and up sequentially from Q3. Favorably, management is highlighting the recovery over the last two quarters compared to Q2 at the height of the pandemic when locations were temporarily shut down. ![]() Q4 revenue from Drive Shake Gen 2.0 venues was down 44% year over year at $7.2 million considering still challenged traffic levels and lower corporate events at the venues amid the ongoing pandemic. On the other hand, since the company has been divesting from this segment with sales of company-owned properties in recent years, total AGC revenues declined by 23% in 2020 adding to the top-line revenue decline.Īs mentioned, the focus for Drive Shack and its long-term growth opportunity is in the "Gen 2.0 Venues" across 4 current Drive Shack locations. Drive Shack saw a 27% y/y increase to daily fees revenues at the public courses in its portfolio while private courses saw 20% growth in member sales. (Source: Company IR/annotation by BOOX Research)įor some context behind the numbers, the traditional golf course operations through the American Golf "AGC" segment still represents about 88% of total company revenues at $53.1 million in Q4. For the full-year 2020, revenues fell by 19% while the negative EPS of $0.92 was approximately flat compared to the $0.90 loss in 2019. ![]() Nevertheless, efforts at cost control including a 30% decline in total operating expenses helped narrow the operating loss in Q4 to just $3.6 million compared to $20.1 million in Q4 2019. Revenue of $60.3 million in the quarter declined by 16.1% year-over-year consistent with lower sales at Drive Shack venue locations due to COVID restrictions in some markets. The positive net income was driven in part by a gain of $16.6 million in "other income" related to the sale of a traditional golf course property as it consolidates that part of the business. We are bullish and see upside in the year ahead with DS benefiting from accelerating sales momentum as the pandemic ends.ĭrive Shack Inc reported its fiscal 2020 Q4 earnings on March 12th with GAAP EPS of $0.13 representing shareholder net income of $8.6 million, reversing a loss of $16.7 million in the period last year. Drive Shack just reported its lasted quarterly results highlighted by improving financials and a positive outlook. These are modern entertainment venues combining an adult-focused social setting with craft food and beverage options.ĭespite disruptions last year due to the pandemic, the company sees a significant growth opportunity supported by market demand and attractive venue-level economics. In recent years, the company has shifted its strategic focus towards innovative golf driving ranges with the "Drive Shack" concept along with announcing a new mini-golf-centered "Puttery" brand. (NYSE: DS) is a leader in the golf industry with a business of operating 60 golf course properties across the U.S. Photo by Wand_Prapan/iStock via Getty Imagesĭrive Shack Inc.
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