For the first time in the past several years, Drive Shack (OTCQX: DSHK) produced what can interpreted as a positive earnings report. The Dallas-based company reported Q3 2023 revenue of $100 million and $276 million for the first nine months of 2023. Those numbers are 13 percent and 14 percent increases, respectively, from the corresponding periods in 2022
Drive Shack reported a loss of $847,000 in Q3 of ‘23 compared to nearly $5.2 million in Q3 of ‘22. For the nine months, the company reported earnings of $1 million in Q3 of ‘23 versus a loss of $30 million in the same period in ‘22.
Drive Shack owns the American Golf portfolio of courses, golf entertainment venue Drive Shack, and Putter mini-golf entertainment venues.
Segment revenue for traditional golf (American Golf) in the third quarter of 2023 of $79 million and $213 in the first nine months of 2023, up 10 percent and 13 percent, respectively, from the corresponding periods in 2022
Segment revenue for entertainment golf (Drive Shack and Puttery) in the third quarter of 2023 of $21 million and $62 million in the first nine months of 2023, up 27 percent and 33 percent, respectively, for each of the comparative periods in 2022
The Company attributed the revenue growth at American Golf primarily to an average increase in ADR (average daily rounds) for greens fees and cart fees of 6.5 percent existing courses and the addition of three leased courses at the beginning of 2023 – Marshall Canyon Golf Course (La Verne, CA), Allondra Golf Course (Lawndale, CA), and Don Knabe Golfing Center (Norwalk, CA)
The entertainment golf revenue increase, Drive Shack, primarily reflected the addition of new Puttery locations in Chicago, Pittsburgh Minneapolis and Kansas City, MO.
