Goldman Sachs analyst Steven Kent is as bullish as ever on ClubCorp Holdings Inc MYCC 1.49% following the company’s big Q1 numbers. The company topped Goldman’s estimates for both revenue ($215 million) and EBITDA ($42 million) in the quarter.
In a new report, Kent noted five key takeaways for ClubCorp investors:
- 1. Kent credits the company’s O.N.E. program with the 3.9 percent rise in dues revenue at golf and country clubs in the quarter.
- 2. Trends in the all-important Texas markets were strong, with 7.7 percent EBITDA growth in Houston clubs and 10.6 percent growth elsewhere in Texas.
- 3. Kent praises management’s renewed focus on ramping up dues revenue rather than membership counts.
- 4. ClubCorp acquired two additional clubs in Q1 and is dedicated to pursuing clubs that generate 17 percent ROIC.
- 5. Management reiterated fiscal 2016 adjusted EBTDA guidance of $242-252 million.
“Given the strong flow through we saw in 1Q (incremental EBITDA margins of ~25 percent) and that 1Q is a seasonally slow quarter, we expect…
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