![]() In contrast to the Drive Shacks 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.īrush aside any notions of the cheesy side-of-the-road putt-putt golf courses you may be familiar with because there appears to be something different here. The company's latest concept with "Puttery" is scheduled to open the first location later this month. (source: company IR) First Puttery Location Opening This Monthĭrive Shack has several ongoing developments that are set to effectively transform the company. The point is that the trends are positive and it bodes well for continued growth. The distinction here is "events" revenue is still lagging as groups have been reluctant to sponsor larger gatherings amid COVID. From the current four Drive Shack locations, "walk-in" revenue reached a record at all venues in Q2 with a total of $10.1 million surpassing pre-pandemic levels. While the American Golf segment representing 84% of the business in Q2 by revenue remains an anchor of stability generating positive cash flow and income, the strategic focus for the company has turned to the entertainment venues. There is a sense that growing demand for golf is structural beyond simply pandemic dynamics. While there was a boost during the pandemic with people looking for outdoor entertainment options, the Q2 results show resilient demand with growth in revenue from the previous peak Q3 2020 levels while its network of private courses is currently at 99% capacity in terms of memberships. In the company's "American Golf" segment managing traditional courses, the story has been strong demand with a wave of renewed popularity in the sport. The momentum was strong enough to support a positive operating income of $1.1 million, and an adjusted EBITDA at $7.7 million which has now been positive for four consecutive quarters. Still, sales this quarter beat expectations by $6 million highlighting what were solid operating trends. Revenue of $74 million climbed 130% year-over-year, considering the weak comparison as Q2 2020 included the lockdown stage of the pandemic where Drive Shack and golf courses were temporarily closed. ![]() While shares of DS have been volatile, we are bullish on the stock which has significant upside with a positive long-term outlookĭrive Shack reported its Q2 results on August 9th with a GAAP EPS loss of -$0.04, narrowing from a loss of $0.61 in the period last year. The attraction here is that the company is set to get a boost in growth with several Puttery locations opening over the coming months and a national expansion strategy moving forward. Indeed, the company just reported its last quarterly result highlighted by the first positive quarterly operating income in three years. Despite disruptions last year during the pandemic, Drive Shack is now benefiting from an ongoing renaissance in golfing popularity supporting its growth initiatives. ![]() These are modern entertainment venues catering to an adult demographic offering a social setting with craft food and beverage options. while expanding with its "Drive Shack" driving ranges along with a new mini-golf "Puttery" concept. ![]() ( DS) is a leader in the golf industry with a business of managing 56 golf course properties across the U.S.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |