DS - Earnings call transcript Q3 2021

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Operator

Good morning. My name is Keith and I will be your conference operator today. At this time, I would like to welcome everyone to Drive Shack's Third Quarter 2021 Earnings Conference call. Currently, all lines have been placed on mute to prevent any background noise. After the prepared remarks, we will have a question-and-answer session and instructions will be given at that time. recorded the At Buckhorn, call Investor being like time, Head is Relations. hand to over call [Operator this Instructions] I'd of Today's to Kelley Ms. may you Buchhorn, begin.

Kelley Buchhorn

to good XXXX Quarter Conference Call. I Keith Shack's Earnings morning, you, to Drive and would Thank like welcome you Third everyone.

Joining in is Relations page. under landing had Please investor results a the the certain We remarks with I'd press and supplement and may now do our Investor these considered to factors annual events over our Chief Khouri; the you to quarterly driveshack.com from review Officer that, with encourage detail Hana release made disclaimers presentation point haven't posted me on our statements. by to those now And our and Hana. you today Nichols. so to materially filed contained will the Chief We've a take in reports at today Actual website ir. like review download and the that Financial statements. SEC. differ President Executive the like link Officer, call to Mike supplement moment to out risk already. the our turn and if investor to I'd include chance the forward-looking on

Hana Khouri

joining everyone. third morning, you quarter for And our Good thank conference call.

launch with The new and quarter experience. third historic quarter entertainment of Puttery, are the a our Company for socializing, immersive was competitive,

into the their which members in $X want AGC hard That our a their update the our million are $XX.X came for gaining been in seasonality. for over I'm quarter. revenue for on this I up total the Shack quarter, to expected million venue revenue to delivered quarter. of overwhelmingly create move down last with further was market more to Xrd debuted last just revenue our quarterly And one beyond million development that under We million future. But along -- thank being $XX rounds I'll more on million, a brand remains growth team X the in inaugural financial This our I favorably years. that home to in bring Guests Company venue generated X and countless We've that And opportunities Puttery slightly results. on Puttery has discussion, give month first of around revenue responding to speak last Colony, to proud even Drive businesses, total down, finally, which concept from quarter, revenue brief we're the Puttery for our of experience first achieved proof-of-concept. worked our our our at shortly. in total life. Texas. was total open, before just $X Company the dedication Puttery already due highest QX was with for over for our and the them positive. in of in first vision Our first million to commitment quarter core number of $X unmatched and than revenue feedback $XX learned proud operation third we're into to location and and deliver years. lot with significant September

to venue our pre this similar last point higher significantly QX Puttery that we want loss, loss year in an While out we this costs last this I that operating year's operating to openings QX year. given year year had was -opening relatively versus had

Additionally, expenses our more are this normalized, operating year G&A. including

were With last operating delivered. beyond year below historic when Now -COVID, levels. pre from impacts time that we're we the that, we this

X of we ended our unrestricted EBITDA first in cash to this $XX Our hand million ample Today, of Houston XXXX. year's on Puttery adjusted to $X currently about quarter open and we just in our positive plan consecutive quarter, under open open Behind at and development development have Charlotte expect and Texas, in fifth to quarter third have and Colony, fund the those million was liquidity of we one in Miami we Puttery the D.C. business. early the December.

more 'XX for Given discuss to in the additional XXXX our plans. I'll Capital our strategy current expect development debt plans capital more and our Puttery beyond, development Market fund we in to growth access detail secure in shortly. early about to

to new our for X those turn that you story. page to of now, quickly are Let's

golf Company. transformation Over the to significant past X operating a an has traditional business a undergone from years, plus entertainment Inc. Drive Shack,

in Dallas is new in putting immersive about first of During Raleigh, development significantly today. this from Drive learning within August, which our operate our which October Shack venue and Namely experience, We Orlando venues XXXX, experience. golf the that and of April and beta indoor, news specifically beating strong, first X a XX Colony, initial in that our XX and These Orlando, plans site. our to just months the Shack, in We open entertainment Puttery Texas by an our year tech-enabled our We've Beach. X.X outside the September, as %. opened X venues in growth serves generation We took West opened entertainment opened developed of the their we fund Richmond, we Palm ago. sold in business. portfolio Puttery, expectations of fund XXXX Drive to majority time, our course owned outperforming golf technology-related since

XX goal end of Our Puttery a the total XXXX. to venues by of is open

Let's turn current future and to near-term now our results goals.

total the of QX quarterly on with the As I revenue highest as page mentioned million of achieved seen and since QX earlier XXXX. $XX X revenue of supplement, you've

Company this venue contribution, events which course of operating both in total $XXX to ed currently revenue pre-COVID be would business in since even We Yet our Our for Company. levels, which to with largely a Company the venues for year for million still continue into courses see demand milestone total $XX continue XXXX million business around to the finish EBITDA and this our to and a our speak transformation records periods. and an few of with have in down increase, entertainment slightly I'll prior from goal more to return expect moments. we

and economics. Puttery operational XXXX, end shortly. of total given and plans 'XX venues, Charlotte targeting XXXX. projecting into million, With by next the I'll to here XX versus the $XXX million, this from those speak have our million venues opening Puttery I year, opened development XX currently mainly revenue additional the growth goal to $XX that, an including and we're mentioned. year, $XXX are more revenue of of Colony ahead comes in or of unit increase new the Looking increase which attractive, we in just The

XXXX higher significantly the our We expect course and venue see in EBITDA and on goals you'll to -- as XXXX, contribution chart X. on the and be in page chart

venue million, course XXXX which the is EBITDA we total venue and goal double fiscal course is expect contribution and year. this XX Our

As we reminder, a to a view contributor core our business. as business cash our entertainment AGC

to Looking an X years. the develop venues ahead, plan open over Puttery new next aggressively we X to

the over our XXXX, EBITDA Given modeling total our current a and million opening the million is XXXX $XX venue growth significant around in run new trajectory rate course earnings X $XXX in next projections, years. in

fund we're -- million debt access we're our market development on XXXX early approximately secure planning in the near-term to capital to planning such, to plans. As $XX

capital future capital again expect market We XXXX for in secure the access to debt openings. to also additional

to summary view courses now Turning our of for and X page a timeline venues. and

our in courses. American helped leased, With owned, X Richmond of and the in golf we we X Golf managed XX across Raleigh, On business, Orlando, in XX side venues our West business, currently entertainment drive X states courses Palm. XX QX have with Shack

X committed Charlotte Colony, these open Puttery and previously committed in X currently We that are which now to December. a in additional X to open news Washington, in lease Houston, New all step and leases we With Orleans we've and Miami, We're additionally or just have also Puttery address, I X in opened the sites of plan to want in in are in and the DC, will to Texas venues Manhattan, currently Taking targeted locations, we open XXXX. XXXX. execution. nearing back, Behind

As not impacts. chain goal including and know, we variety related of you reasons, wide did that meet for all COVID a supply

Houston, more follow. right taking time to first feedback to have that incorporate we're than get on, the those to and gaining The openings new learnings doing. the locations additional us it with will we moving While delivered bit Puttery. be the the what of opened proof-of-concept we DC, early XX in We that's Puttery to know will bringing Colony to that, really slowly Having in These include we XX ending plan on in is future by total Charlotte. important we in XXXX and that promised and plan we sites additional XXXX. need investor X X end that, X of from to top appears venues XXXX On it said XXXX. The total in expected, year a and approve we're from XXXX, a and sites. Miami, of opened open

future locations. robust Puttery a have pipeline of We

U.S. exceptional and a inventive and the with engaged markets modern We're beverage X in the great curated with redefining immersive major on brokers the focused and on experience, in timeline XX, the that few negotiation food actively bar socializing. actively putting, and it's for I'll as experience. to brand atmosphere, an portfolio, a centered described on very experience beyond. across the only markets are on also high-energy and We're markets multiple spin all game in we've prioritize gaming more adult-focused offerings on Puttery, competitive active pursuing landlords in really music. remain craft by and culminary and and creating We lively our With an U.S. the not development speak plans focused moments. complete newest we've Page our supported across lease cocktails technology a and around innovative are and additional XXXX in but on locations

in their during actual their evening incredible buys interior Our after relax of Texas, show created. to and tea included guests the and Colony, images, We've and venue renderings before, can experienced not the our of we've times. the that enjoy

first earlier, September just we on venue Colony, of outside Puttery So as Xrd the Dallas. mentioned Texas in debuted our

While X, courses, uniquely just spanning under This months, guest library, overwhelmingly XX,XXX over response square just with those particular the is feet only golf overall to large, we've rooftop be themed open venue and positive. illusion. floors been X for hole X are X the experience continues to

space. of X pleased will terrace, operation a We so a seen you in in look with the that see we XX results seating bars, early you take when And revenue throughout we've for just and far. total lounges, in have month quarter. areas page XXXK X presentation, multiple delivered patio, the the the We're at

exception. no that to We do tempting yearly seasonality in number, for annualize slower, result venues be While Puttery be to play a is to revenue at January's it etc. is holidays our busy, expect might be and there

Puttery has, we and in we So opening indoor trends short, really of itself of loosely. The entertainment lots learned expected. lessons that expect at a least the success seasonality space huge was Colony hospitality the with to the as rest follow

to of with and in know average And hours consisted the so %. far XX drive We through improve couple XX opportunity gameplay. with X at late and time We're highest our The at alcohol K as comes X data Saturday plan a mix revenue, guests, day total to that of evening they're indicates advance, in to opportunities. the events walk-in around bar guests food and a traffic revenue XXX over revenue our of the spending on game their %, of the areas XX collected at play around Over in visit our that that look reservations venue. further an week. at experiential and around seeing our online XX%, mainly us is % that %, we've

to incredible revenue. menu food highlight an in will order future raise in continue which have today, We to the our food

our also there's well events in room revenue for mix, brands. know as the as well improvement as here -- as other We in

our events proud of first event While sales on total deliver open. we of revenue I'm intentionally month X to first of extremely and did month not in our Colony at and operation. pre teams the the -sell events our %

in in still we but phase, here While Puttery of grand only early our Colony, venues continue the all the we success, and look our expect in forward are do momentum opening of confident economics also put to to the future remain look and will that venue our several to path Company. ago, continue growth projected forward level at was to we we come. When quarters we that for Puttery be not best the

XX quickly an gives cost Drive building development large, and timeline venues business with As Drive $XX less to you'll from and with to Page ground in XX with each Drive Shack an both part the million Drive $X is on us of month venue Shack economics. venues and million. EBITDA our current Shack see to about Puttery $XX development level they XX complexities and desirable require venue. of XX, adjacency Shack are The higher site to acres have quite ability Puttery due big XX capital the generating grow and returns is $X very of box land a to up. between venue million, s in million the between a risks

of forward timeline returns level million. to on While between venues a these months get XX,XXX currently In more risk. are capital X to less Puttery economics retail Company development existing require status. with X X great generating report square and to time for contrast, generate projections venue our $XX to and million feet between date. bit that is and to our venues of is line Puttery of months X cost expected EBITDA a numbers, million, $X with require space, for to Puttery these faster are a quite pleased We're our and path revenue actual capital time is around development revenue with in

Turning timing really is a future Puttery discussion our and on to portfolio, Puttery and critical success development deeper our process the and now timeline development to the valuation. for --

XX, As our process different provided you page development end-to-end a convey of to timeline better can the on view see of Puttery development venue. we a

currently of will time timeline with side X already the the as the and for and all We in the these Colony, lease that XX can Dallas and currently page, status expect. would venues. which in season. committed negotiations or a being Houston, open landlords. venues Charlotte X of the low active and phase. holiday the lease in open sites left expect Puttery will phase, total From Behind to this into we open of of in XXXX we development, you have new venues Miami, in additional XXXX. beginning sites open XX will signing have you open lease if on December First, Charlotte, move the chart know, currently negotiated DC, on In see construction is those, active and we an XXXX, and are with by additional

next will a venues of total give early time We QX of expect the by year, of another year open QX by to for next XX total XXXX. end X successfully or leases us a which of XX venues

leads the As to supported of robust on locations. potential is timeline the you as will in sites U.S. XXXX page see by target evaluate pipeline the new and of the development sites markets key identified. are our These opening chart and across available a very the right number continually by expanding side of increases are venue priority available

additional have location that or sites, have that, we that top negotiation for prime secure venue for identified today in chart, that potential deliver in have either the landlords. a that in at or XX we of Puttery as months we begin a development On coming just venue. Looking XX active opening sites evaluation are leases new been confident XXXX and currently lease We're spoke our in to LOI active will with goals. remaining the to, sites are the I

the QX Finally, supported. We speak more of will in market in comes and plan, funding of necessary funding to are confident in will Mike further end complete we our complete can the and we moments. before to our next a around access and need secure to especially opening then will this by online obtain to proof-of-concept debt the few plan to for be our Charlotte currently venue order $XX plan million development XXXX, year.

which those QX, Shack had venues with Drive our results. venues in of another to wins delivering major some quarter now strong Moving

the XX, As ago. you'll year, total million walk-in see versus X for quarter on million a X $XX.X million EBITDA revenue page with versus in year up revenue QX was last and % XX generated about same

levels, even break they community, to returned for an ever teams of X we lake the they full to are since thrive. in our and the quarter also for our of second located are rebounding we XXXX broke Orlando job largely to down, year as the is want years And EBITDA which business first venues in year that even. fiscal still QX, incredible open a where pre-COVID The to once point be in positive grow expect there, venue and continue out them I fiscal consecutive still doing is full developed will ago. quickly. nearly known coming years, While our Orlando to but continues events fully know again

venues page how by You entertainment our this on well can XX, see chart quarter. performed the

business was the XX for better revenue quarter, or higher, and walk-in total year's of last than third Our million venue total % $X.X % quarter. XX over roughly

XX Events last gain higher, over was $XXX,XXX than continues higher or roughly sequentially and momentum Our to business % year.

Events We have on a in continue will confident moment. to growing pipeline a improve, that that feel more we

to now some and XX, only gaming led our package technology graphics, not reliable but have re-imagining incredible the better work of Page improvements our gaming performance. team aesthetics more the and done our game improving superior These has on also development new Turning to of accuracy graphics.

as technology We continue TrackMan all Monster pro of packages, our proprietary Jack, our to game Hunt, golf utilize darts, courses. such all and Shack of across

experience, tech-forward initiatives as Snowman holiday enter team period, and the deliver our and to continue know time new introduced by They've of unique, development this team for keep new great recently our Halloween also and at content the Monsters our games. Monster Hunt quarterly job for guests. work, game our Graphics fresh winter proud extremely in game and to I'm the the Pumpkin of for do some soon has software While season. a been we done enhance seasonalizing we'll refreshes gaming foundation setting hard We to Building they'll

of XX. golf continues deliver levels. to the arm -COVID results traditional versus strong now business Moving on our American to pre Page Golf

fully % planned courses, our largely revenue course % Traditional ADC and on quarter. fee as our are capacity. delivered at from % XX the held levels our public of We For see near X daily in by X X me. in impacted since driven for membership X revenue, in activity max COVID. green XX rounds million still increase courses, safe their or due was public total The duration of and of ongoing by well a QX courses, rounds at our as in courses slight fees a golf of % private excuse construction as total card mainly did is near that wildfires to that -- at was outdoor at public the decline private a the onset renovation private seen decline

Golf in especially American to quarter our continue to levels. tremendous expect closer job team results events continues as strong great begins delivering pre-COVID delivering And Our to return quarter. do results, we a after to business

as heard brands in throughout, to and and and restructure our large -- mentioned of increase to businesses. our enhance events me engagement events part and timely this demand seeing facilitate of to strengthening. help We sales Speaking due demand recent guest the events you've across team the of know X direct in and we're is with more

early our national our to asset us the most the level the at and sales our roles and on at head division at International. Puttery see sales AGC, beginning Gee, Rock of produced results across a to measure been to support Harry shield position across this, Shack, Thomas you'll Drive Chief As at Restaurant QX. that City in team properties. August in help to Group, of recently with national incredible and slide teams He's [Indiscernible] prior we measurable manage hired the Puttery. joined this running and an it's country winery sales further Hard nationally corporate across national XX, new sales

especially teams, direction. to trend this her across expect active a with we tenured and pipeline the of have X tiering leadership very growing Under our We events support continue, brands. all with and

of we pipeline for these these the within -- inquiry many more leads year for many days and leads in expect December, November and multiple events have inquiring. are end months, before We leads the XXXX the as of booked

which have currently event total is Additionally, we revenue. full-year our event a also exceeding strong pipeline, XXXX XXXX

is end next the XXXX year we we this While that higher in will expect strength in event from COVID expected, be that significantly pipeline. year's than the impact we see where the year, revenue given XXXX, given do will

You illustrated XX. can graph that in the see on that page

it results financial the off Mike? to through So quarter. with Mike that, I'll the go detailed to now for hand

Michael Nichols

Hana. And Thanks, morning, everyone. good

On EBITDA quarter third third XX, million performance reported of first the Shack the basis and quarter month Page a segment delivered of of $XX.X in on our revenue generated summary adjusted we review of positive and venues quarterly was our delivered of million an of quarter the $XXX,XXX of which adjusted at for Drive revenue, fifth year. financial of generated unit business Shack for million We Golf the start the one Company the quarter. $X.X Drive $XX.X million, for revenue our of X.X Let's highest EBITDA. XXXX. revenue venues our in At deck, level, million, a third $XX.X million since its Puttery walk-in of $X.X consecutive last quarter, loss our total million the Entertainment operating versus $X for Total operation.

in last had a year. the we As of in revenue of XXXX third report such, they venue as opened to quarter Orlando December no and reminder, our

this XX comparable on Orlando basis. last versus $X.X year, walk-in % Excluding or roughly revenue QX year was million a up

traditional the $XX.X AGC managed reimbursements Golf course $XX.X On of side, revenue, million including of generated million.

XX Golf the quarter managed % approximately last revenue course year. year this third American Excluding period was up same reimbursements, versus

$X loss $X.X As we year of an last an this loss third year. versus quarter reported I million the of mentioned, for operating operating million

last to included Puttery relatively on -opening costs a year. basis year's higher While operating this flat year-over-year pre loss significantly compared

more year, positions headcount result this third expenses the quarter expenses tightly to furloughed relative the when year previously earlier COVID-XX on of a from onset a last managing were as we SG&A operating year. of reduced the our normalized Additionally, are and in

$XX months was the the common share $XX.X approximate resulting of equity with share. September our of $XX.X settled was $X.XX to common of loss in million per as XXth, the financial page summary, from the or net per our for on $X.XX QX Moving ended quarter the an million roughly X shareholders common net loss million for on shareholders applicable issued is results February. year XXXX, that shares benefit follow-on in earlier to offering or $X.XX this XX, There additional this year part

to contribution Shack of total $X.X and $X.X And venue year, total traditional included AGC's million the page million was Moving venue adjusted golf, XX, for which our and was million Company million Last entertainment, $X.X EBITDA contribution Drive for quarter for traditional Company third year, million $X.X includes $XX.X of Puttery. $X.X encompassing golf. adjusted for this contribution which both AGC's million EBITDA our entertainment for adjusted EBITDA golf. adjusted golf, contribution EBITDA

the $X million $X.X million SG&A quarter to this compared year. was For for year last third

EBITDA result, $X.X Company for the last year third year. third the a As our flat quarter quarter adjusted compared total was this million relatively to

of $XX we approximately unrestricted of at and needs liquidity had XXXX, September capital end the to million Looking cash. future

we net million to from the that venues $XX As of growth our follow-on substantially cash the open, February. for -- our is settled This execution a approximately we reminder, first capital the seven received plans of we provided complete. offering of the stock need complete first in Puttery needed our which second proceeds common but

need $XX approximately capital for plans fund plans of venues -- XXXX, additional to million development. ahead we look capital will we our for Puttery in fund future additional this growth estimate currently we to to that As

to quarter XXXX to in capital to first market the debt the necessary our access near-term of fund, We the secure development plans. capital expect

the am on January on period turn record pleased XX, dividends Company's XXXX. announce Drive I XXXX. X, Board stock the on XXXX, Shack Hana are ending declared for January January will remarks. The I Finally, to the dividends preferred to closing of back quarterly payable that, the XX, holders With for it

Hana Khouri

Mike. Thanks,

as Before we moment transformation Today, as well want an been incredibly early days Drive as continue business the are to gain where remains returns. venues to to Q&A, far Company, entertainment our performance how our deliver of business we've we I take just to strong solid Golf to today. have our reflect come since momentum it American over operating and COVID through turn to a and Shack there

every earlier, efforts historic of organization, first Company's been to is launch forward them Operator and they thank our for tireless our as to said a drive the and I have None drive unwavering our like I open this QX Thank contribute venue. our profitability all could As each with know have back Puttery commitment unmatched. the will and today. call teams entire history business to one we line growth questions. joining of we I'd in to the of to incredible accomplished continue you marked moment turn across now who's success the our us further for without Company. to and the the for

Operator

ahead, your Alex you Fuhrman Hallum. Instructions]. go open. if line time This from with question is Craig - have a question, Please [Operator Will take first today's

Alex Fuhrman

what to the Shack for and very you nicely. Puttery mix Drive both [Indiscernible] Thanks about wanted is seeing, I the and that the you've coming business back EBITDA type much my ask before unit. of congratulations coming event what first opening been and taking pipeline, the glad in Great. Puttery to compares group question Curious of on had how of to I'm

Hana Khouri

for Hey, Alex. thanks question. on. Yeah, for the being Great Thanks question.

of also Puttery. We that Shack slowly more the side. to but fantastic, starting lack impacted are Drive and are up I both corporate with see come we groups. which And back on actually, and Shack, see we're also quite specifically had to American that both bit pick some social that the we're events, groups other quarter a holiday weddings and coming lot then we've business. couple as buyouts companies. asked of to as for a kind Drive we our -- holiday a business corporate experiencing and back have up on we're side I think, really starting We're for is but I was our to business know business. a corporate Drive along XX corporate those see just side, smaller social Golf that the event with tournament on events We've last starting on Puttery, been parties things Puttery Shack business you of and well do bit pick of didn't about season this the said by of XX had back of

Alex Fuhrman

you Thank Hana. to looks going when of in helpful. the the contribution something like the similar revolving funded mix the competence is really the That's How improved you up? to in in Puttery had you, nice more open is year as are it Charlotte have known get the alcohol Texas. And has pretty -- market then, expecting as and to a And revenue play? unit King mostly Okay.

Hana Khouri

Yes.

perspective. So of eat said, We a from when program take of both % as as Which is happen looking together, it. well XX Puttery food a as and gaming the lot an at which the experience they coming only our food pride what and revenue as food our our to bar we've people love tells love beverage right People that really to now. us fantastic. and about perspective from and put the they also cocktail and is are the us I

the Performa, track we alcohol food the in beverage have sales just our food experience future. an We're said, That really at sales versus total. and to our are our to gaming of that do end-to-end SPB is more really as game us So doing forefront look considered because menu people guest of component. the to F&B the we we start and in of still push as amount in hopes overall our experience on things beverage

expect how % which focused so marketing it guests know us we're sure will day the And be matter come as then have potentially people doesn't that to do long continue XX % think to as we that well out. their in We I maybe Charlotte works that and we're as mix XX I gameplay Colony. again, alcohol that that, us. food. So really see ensuring as for going hopes XX our footsteps on really they is experience. can that just food as % and Performa with follow same eat in making the another reaching to the alcohol metric, that enjoy that XX a bad our menu and to to or not are. gives expect we're and We'll % that

Alex Fuhrman

you helpful, then dining demand entertainment for concept Drive and just general. American Shack more Are thanks. comes as really back seeing in That's still the demand And and on golf Puttery side. strong other Okay. and

in commented lot the of you've think with I your the that courses past, still membership. the case? a Is have private wait

Hana Khouri

Yes, capacity XX clubs. we're private our still in at %

memberships, for is which So great.

public public couple of courses on have going down then the cities house still. in our the revenue and due total decline construction on. a % roads as And at. had public planned as private XXX well mention fees in are % private cores I courses courses due club a up some both that of X in we X that we public wildfires, the rounds part % to our rounds of and is renovation was did %. green at cart The is the our total our down. are completely courses, courses to X from Our That in

not explain slippage a the able done which we ton and we're seeing here. very to So clearly seeing we're slippage of we've are that

Alex Fuhrman

Great, very much to looking thank Hana. Charlotte. opening you I'm at the forward

Hana Khouri

Thanks, Alex. Thanks for being on.

Operator

we'll ahead. BTIG. question Saleh go And Please Peter from with next our take

Peter Saleh

And the come want to the you. I Puttery quarter pipeline Hanna, Thank Great. growth development the comments pipeline, opening. Puttery. congrats and on for the on echo back to I the

of sizable guess quarters. course mentioned the you that XXXX. I XX guys you're to Putterys think have operational development of by coming plan in end I step-up the planning That's a the you pretty over

So can those year. XXXX. into I'm the gives that the assuming backend much to end can get the about guys of of you very just a weighted lot numbers And confidence that is you what talk by you

Hana Khouri

the Thank for Peter. you question. Hi, Yeah.

have gives be We additional of additional looking so year, two a open X. ton at from D.C., is have confidence Miami, we what me -- this really going to Houston, we're that are year an and venues next

We are identifying, in construction. negotiation have sites for we're XX of that those now, again, in XX right

to in our differently, that up. timelines. as that and hopes next by we we in order very early With confidence or what around we will do XX to in still slightly great We venues a Colony, to the need get as the signed accelerate QX to learned potentially I negotiation, XX needed that XX QX year, of have those Charlotte well lot in have

Specifically, things for. negotiation those are on we're the asking improvements side. that And like landlord

-- Sometimes time sizable amount that of development sizable to our time a adds timeline.

of next are squeeze make the Houston. ways timeline, So DC, few number and XX those we're will with year, -- of and of Miami, of kind at we've be looking XX Again, them those the to year. our and and a we end have of up the Washington, by come ways to sure opening well X that of capability we the have underway

starting we're also that handle both our number starting to pipeline that a negotiation G&A the all good just we're think give that bit able have and the from negotiations general up ramp in bit contractors them more I and bandwidth We're now. and development really side, construction teams, to a and of our construction given doing to of sites we flex the of on development across be in right our brokers. yes, a to size then the spot. to landlords, So We're

Peter Saleh

then, more just the positive. end. Puttery of the And reviews a couple The questions pretty have overwhelmingly been Colony my on for Great. in

have I valued. are handful pricing or reviews about concerns think there been of a

to of or pricing changes the looking venues make Just if the them? terms curious you're Puttery Dallas bundling in on either changes the to open any you any future in as or

Hana Khouri

Great question.

looking That's at answer, are. the short we're both. We and

near or our the is though get we who And courses. start of doing right discounting because any want guests kind etc. that what understanding about we in doing something a is, are looking bundling now really bundling are, at incentive, spend to We the per future. that talking not before firm we're price incentive visit of

the a depending the that times, XX you whenever do the okay, day if of speed realize time on take One golf potentially Saturday the has realize, at library learning the for there had really to faster of in, the Colony, the a whereas XX play to actually much first anything you're on well, time, night, we Course obviously, you started could we've Illusion were minutes, and with once part. of holes the day

the the turf, very things complexity We that about holes, intentional turf. our the obstacles, of stuff. the speed are doing the around being revising We're of

date. going too obviously not a beyond. those improvements we to those likely because to and are the in DC third things in in will to that going to and But are You're time play can the other be And versus QX. the takes price few iteration. you see Washington, at there play manage we that do turf Colony, improvements in opening the see There that the seasoning through. I and into should looking Charlotte probably yes, like expect close will again, doing do time -- help the one bundling into absolutely But things we'll at it are replacing holiday doing we also going look some expect

Peter Saleh

Note understood very helpful.

Okay.

Just implies should a fair How year month it think year Is this from you've announced you million that? revenue $X.X been post-honeymoon. at the think guidance $XXX,XXX. lastly, an about like assuming a X. for what seen acceleration we the the seems which on I did for in that a revenue about that and open weakening assume think that the not about call it's acceleration to you in and $XXX,XXX Puttery, about per if Puttery I it's you're of September, about for an But

Hana Khouri

Those that Charlotte question. numbers include referring to and you're Charlotte the good opening. So

that a that deck, to that of that at can not includes the have we that it's million significant XXXK at -- million, date Puttery includes in really That we seasonality. it to I we that, When look tell X to September, that will to roughly report. did the seen can't in Charlotte I'm honeymoon the $X just sorry. look in do annualize when -- we on due So again, you when number. you that page like tempting because -- X annualize number will the you we revenue generate of the drop-off

Just is QX expect and happen? honeymoon to time a bit is a attributed in to to be I then. always over we're hasn't slower that Do that so to me would industry, happened could or see January we'll it pullback data. but I but This see seasonality, so wait a bit whether just for yet. expect hospitality I everyone of we see, pull guessing, the to going watching a of in give can very closely expect being be it that's I you see to January wrong. phase in back do to and have a

Peter Saleh

Understood.

Okay. Very helpful.

earlier December work should later? open the do modeling trying quick how or Just point in is you for understand one of clarification, Charlotte expect it Just to to here?

Hana Khouri

we now right early December. planning Yeah, are on

Peter Saleh

very Okay. Thank you much.

Hana Khouri

Thanks, Yes. Peter.

Operator

go Eddie Riley Houston, from please Our question EF next with ahead.

Eddie Riley

some sharing Hi, costs. a question openings. you of appreciate the Hana. from on Colony had learnings I just your I

in -opening Charlotte? pre this does quarter, costs and for and the this include Or mostly figure? they venues So Colony in are the Colony more included

Hana Khouri

you. Hey, welcome to no from call and the Eddie, number Colony Charlotte, nice and the to hear includes venues. The other

Eddie Riley

That's venue those guys your costs? as decline got helpful. you expect pre to really should you. leanings going Okay, per apply figure forward towards this And we -opening

Hana Khouri

had wanted We we opening. well time. I for it because we we would doing we up, make to of and perfectly sure dedicated a decline pre to should the Colony for and are didn't that went account yes. -opening the deal all the first would Those costs expect, come great to know it of were resources trying variables

So train of venues a help we to team support lot staff. from had our there, help our really other train to

pretty We our due also several that that in wanted venue. got team the just to of the delays control. trained we things not for And they the then that sure on make hired to knew and we that, management they top early, fact had were

with I have as the our learnings, close would and the expect but expect not year that it we lot to some of would were it Charlotte, number of so a probably starting learnings. Colony decrease we I Again, decrease to to to apply was that So next completely. able

down, to number see for take you will time just So go but you see to that. it a bit of the should expect us little

Eddie Riley

That Great. Thanks does about congratulations. for and me. it Okay.

Hana Khouri

Thanks, Yes. Eddie.

Operator

questions. we I'll And closing floor appear return remarks. no it the have Kelley further Buckhorn for does to

Hana Khouri

call Okay. Thank thank like today. We'd joining on you for you, everybody. to us the

and of Thanks before, if a up then. forward to don't great day. As you quarter speak we look next you have your always, with we with catching rest

Operator

This for Thanks does participation. program. today's conclude your

may disconnect. You now

Drive Shack (DSHK) 8 Nov 212021 Q3 Earnings call transcript