001-31458
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81-0559116
|
|
(Commission File Number)
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(IRS Employer Identification No.)
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111 W 19th St, 8th Fl.
New York, New York
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10011
|
|
(Address of principal executive offices)
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(Zip Code)
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☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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☐ |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02. |
Results of Operations and Financial Condition.
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Item 5.02. |
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.
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Item 9.01. |
Financial Statements and Exhibits.
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(d)
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Exhibits
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Press Release, dated November 8, 2018
|
DRIVE SHACK INC.
|
|
(Registrant)
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|
/s/ Sara A. Yakin
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|
Sara A. Yakin
|
|
Chief Operating Officer and Secretary
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Three Months Ended
September 30,
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Nine Months Ended
September 30,
|
|||||||||||||||
2018
|
2017
|
2018
|
2017
|
|||||||||||||
Revenues
|
||||||||||||||||
Golf operations
|
$
|
68,928
|
$
|
62,034
|
$
|
191,632
|
$
|
168,969
|
||||||||
Sales of food and beverages
|
18,491
|
19,657
|
53,451
|
53,223
|
||||||||||||
Total revenues
|
87,419
|
81,691
|
245,083
|
222,192
|
||||||||||||
Operating costs
|
||||||||||||||||
Operating expenses
|
70,330
|
63,384
|
194,751
|
175,920
|
||||||||||||
Cost of sales - food and beverages
|
5,180
|
5,721
|
15,413
|
15,762
|
||||||||||||
General and administrative expense
|
10,149
|
8,188
|
29,611
|
22,734
|
||||||||||||
Management fee to affiliate
|
—
|
2,678
|
—
|
8,032
|
||||||||||||
Depreciation and amortization
|
4,495
|
6,187
|
14,358
|
17,952
|
||||||||||||
Pre-opening costs
|
245
|
141
|
2,048
|
191
|
||||||||||||
Impairment
|
4,172
|
28
|
5,645
|
60
|
||||||||||||
Realized and unrealized (gain) loss on investments
|
48
|
(315
|
)
|
(283
|
)
|
6,361
|
||||||||||
Total operating costs
|
94,619
|
86,012
|
261,543
|
247,012
|
||||||||||||
Operating loss
|
(7,200
|
)
|
(4,321
|
)
|
(16,460
|
)
|
(24,820
|
)
|
||||||||
Other income (expenses)
|
||||||||||||||||
Interest and investment income
|
467
|
8,418
|
1,382
|
22,701
|
||||||||||||
Interest expense, net
|
(4,290
|
)
|
(4,770
|
)
|
(12,940
|
)
|
(15,335
|
)
|
||||||||
Other (loss) income, net
|
(3,052
|
)
|
202
|
(7,157
|
)
|
372
|
||||||||||
Total other income (expenses)
|
(6,875
|
)
|
3,850
|
(18,715
|
)
|
7,738
|
||||||||||
Loss before income tax
|
(14,075
|
)
|
(471
|
)
|
(35,175
|
)
|
(17,082
|
)
|
||||||||
Income tax (benefit) expense
|
—
|
(2
|
)
|
—
|
1,047
|
|||||||||||
Net Loss
|
(14,075
|
)
|
(469
|
)
|
(35,175
|
)
|
(18,129
|
)
|
||||||||
Preferred dividends
|
(1,395
|
)
|
(1,395
|
)
|
(4,185
|
)
|
(4,185
|
)
|
||||||||
Loss Applicable to Common Stockholders
|
$
|
(15,470
|
)
|
$
|
(1,864
|
)
|
$
|
(39,360
|
)
|
$
|
(22,314
|
)
|
||||
Loss Applicable to Common Stock, per share
|
||||||||||||||||
Basic
|
$
|
(0.23
|
)
|
$
|
(0.03
|
)
|
$
|
(0.59
|
)
|
$
|
(0.33
|
)
|
||||
Diluted
|
$
|
(0.23
|
)
|
$
|
(0.03
|
)
|
$
|
(0.59
|
)
|
$
|
(0.33
|
)
|
||||
Weighted Average Number of Shares of Common Stock Outstanding
|
||||||||||||||||
Basic
|
66,992,322
|
66,932,744
|
66,982,233
|
66,883,291
|
||||||||||||
Diluted
|
66,992,322
|
66,932,744
|
66,982,233
|
66,883,291
|
(Unaudited)
September 30, 2018
|
December 31, 2017
|
|||||||
Assets
|
||||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$
|
99,389
|
$
|
167,692
|
||||
Restricted cash
|
4,176
|
5,178
|
||||||
Accounts receivable, net
|
9,209
|
8,780
|
||||||
Real estate assets, held-for-sale, net
|
158,602
|
2,000
|
||||||
Real estate securities, available-for-sale
|
3,202
|
2,294
|
||||||
Other current assets
|
26,257
|
21,568
|
||||||
Total current assets
|
300,835
|
207,512
|
||||||
Restricted cash, noncurrent
|
1,012
|
818
|
||||||
Property and equipment, net of accumulated depreciation
|
101,582
|
241,258
|
||||||
Intangibles, net of accumulated amortization
|
50,121
|
57,276
|
||||||
Other investments
|
22,265
|
21,135
|
||||||
Other assets
|
10,950
|
8,649
|
||||||
Total assets
|
$
|
486,765
|
$
|
536,648
|
||||
Liabilities and Equity
|
||||||||
Current liabilities
|
||||||||
Credit facilities and obligations under capital leases
|
$
|
106,377
|
$
|
4,652
|
||||
Membership deposit liabilities
|
8,863
|
8,733
|
||||||
Accounts payable and accrued expenses
|
40,487
|
36,797
|
||||||
Deferred revenue
|
6,880
|
31,207
|
||||||
Real estate liabilities, held-for-sale
|
5,147
|
—
|
||||||
Other current liabilities
|
14,646
|
22,596
|
||||||
Total current liabilities
|
182,400
|
103,985
|
||||||
Credit facilities and obligations under capital leases - noncurrent
|
11,582
|
112,105
|
||||||
Junior subordinated notes payable
|
51,202
|
51,208
|
||||||
Membership deposit liabilities, noncurrent
|
89,549
|
86,523
|
||||||
Deferred revenue, noncurrent
|
7,817
|
6,930
|
||||||
Other liabilities
|
5,247
|
4,846
|
||||||
Total liabilities
|
$
|
347,797
|
$
|
365,597
|
||||
Commitments and contingencies
|
||||||||
Equity
|
||||||||
Preferred stock, $0.01 par value, 100,000,000 shares authorized, 1,347,321 shares of 9.75% Series B
Cumulative Redeemable Preferred Stock, 496,000 shares of 8.05% Series C Cumulative Redeemable Preferred Stock, and 620,000 shares of 8.375% Series D Cumulative Redeemable Preferred Stock, liquidation preference $25.00 per share, issued and
outstanding as of September 30, 2018 and December 31, 2017
|
$
|
61,583
|
$
|
61,583
|
||||
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 67,027,104 and 66,977,104 shares
issued and outstanding at September 30, 2018 and December 31, 2017, respectively
|
670
|
670
|
||||||
Additional paid-in capital
|
3,174,948
|
3,173,281
|
||||||
Accumulated deficit
|
(3,100,404
|
)
|
(3,065,853
|
)
|
||||
Accumulated other comprehensive income
|
2,171
|
1,370
|
||||||
Total equity
|
$
|
138,968
|
$
|
171,051
|
||||
Total liabilities and equity
|
$
|
486,765
|
$
|
536,648
|
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