|
|
|
(Commission File Number)
|
(IRS Employer Identification No.)
|
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
|
|
|
|
|
|
|
|
|
|
|
Item 2.02. |
Results of Operations and Financial Condition.
|
Item 9.01. |
Financial Statements and Exhibits.
|
(d)
|
Exhibits
|
Press Release, dated March 10, 2022
|
|
104
|
Cover Page Interactive Data File (formatted as Inline XBRL).
|
DRIVE SHACK INC.
|
|
(Registrant)
|
|
/s/ Nicholas M. Foley
|
|
Secretary
|
|
Date: March 10, 2022
|
Three Months Ended Dec. 31,
|
Twelve Months Ended Dec. 31,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
Total revenues
|
$
|
70,527
|
$
|
60,287
|
$
|
281,864
|
$
|
219,987
|
||||||||
Operating Loss
|
$
|
(6,430
|
)
|
$
|
(3,648
|
)
|
$
|
(19,174
|
)
|
$
|
(36,635
|
)
|
||||
Consolidated Net Income (Loss)
|
$
|
(8,573
|
)
|
$
|
9,946
|
$
|
(30,312
|
)
|
$
|
(56,354
|
)
|
|||||
Income (loss) applicable to common stockholders
|
$
|
(10,346
|
)
|
$
|
8,551
|
$
|
(35,499
|
)
|
$
|
(61,934
|
)
|
|||||
Income (loss) applicable to common stock, per share Basic
|
$
|
(0.11
|
)
|
$
|
0.13
|
$
|
(0.39
|
)
|
$
|
(0.92
|
)
|
|||||
Diluted
|
$
|
(0.11
|
)
|
$
|
0.13
|
$
|
(0.39
|
)
|
$
|
(0.92
|
)
|
|||||
Adjusted EBITDA1
|
$
|
2,535
|
$
|
5,301
|
$
|
16,240
|
$
|
(3,106
|
)
|
December 31,
2021
|
December 31,
2020
|
|||||||
Assets
|
(unaudited)
|
|||||||
Current assets
|
||||||||
Cash and cash equivalents
|
$
|
58,286
|
$
|
47,786
|
||||
Restricted cash
|
3,480
|
2,252
|
||||||
Accounts receivable, net
|
5,563
|
4,446
|
||||||
Real estate securities, available-for-sale
|
3,486
|
3,223
|
||||||
Other current assets
|
30,034
|
14,410
|
||||||
Total current assets
|
100,849
|
72,117
|
||||||
Restricted cash, noncurrent
|
798
|
795
|
||||||
Property and equipment, net of accumulated depreciation
|
179,260
|
169,425
|
||||||
Operating lease right-of-use assets
|
181,915
|
192,828
|
||||||
Intangibles, net of accumulated amortization
|
13,430
|
15,124
|
||||||
Other assets
|
6,538
|
6,765
|
||||||
Total assets
|
$
|
482,790
|
$
|
457,054
|
||||
Liabilities and Equity
|
||||||||
Current liabilities
|
||||||||
Obligations under finance leases
|
$
|
5,400
|
$
|
6,470
|
||||
Membership deposit liabilities
|
18,039
|
14,692
|
||||||
Accounts payable and accrued expenses
|
33,019
|
29,596
|
||||||
Deferred revenue
|
26,301
|
23,010
|
||||||
Other current liabilities
|
26,524
|
28,217
|
||||||
Total current liabilities
|
109,283
|
101,985
|
||||||
Credit facilities and obligations under finance leases - noncurrent
|
9,075
|
12,751
|
||||||
Operating lease liabilities - noncurrent
|
166,031
|
167,837
|
||||||
Junior subordinated notes payable
|
51,174
|
51,182
|
||||||
Membership deposit liabilities, noncurrent
|
104,430
|
99,862
|
||||||
Deferred revenue, noncurrent
|
10,005
|
9,953
|
||||||
Other liabilities
|
1,487
|
3,447
|
||||||
Total liabilities
|
$
|
451,485
|
$
|
447,017
|
||||
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 December 31, 2021 and 2020
|
$
|
61,583
|
$
|
61,583
|
||||
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 92,093,425 and
67,323,592 shares issued and outstanding as of December 31, 2021 and 2020, respectively
|
921
|
673
|
||||||
Additional paid-in capital
|
3,233,608
|
3,178,704
|
||||||
Accumulated deficit
|
(3,267,426
|
)
|
(3,232,391
|
)
|
||||
Accumulated other comprehensive income
|
1,163
|
1,468
|
||||||
Total equity of the company
|
$
|
29,849
|
$
|
10,037
|
||||
|
||||||||
Noncontrolling interest
|
1,456
|
-
|
||||||
Total equity
|
$
|
31,305
|
$
|
10,037
|
||||
|
||||||||
Total liabilities and equity
|
$
|
482,790
|
$
|
457,054
|
Three Months Ended Dec. 31,
|
Twelve Months Ended Dec. 31,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(unaudited)
|
(unaudited)
|
|||||||||||||||
Revenues
|
||||||||||||||||
Golf Operations
|
$
|
55,390
|
$
|
52,906
|
$
|
232,560
|
$
|
189,972
|
||||||||
Sales of food and beverages
|
15,137
|
7,381
|
49,304
|
30,015
|
||||||||||||
Total revenues
|
70,527
|
60,287
|
281,864
|
219,987
|
||||||||||||
Operating costs
|
||||||||||||||||
Operating expenses
|
57,026
|
46,161
|
222,260
|
188,745
|
||||||||||||
Cost of sales - food and beverages
|
3,863
|
2,180
|
12,814
|
8,834
|
||||||||||||
General and administrative expense
|
8,112
|
7,182
|
33,809
|
31,284
|
||||||||||||
Depreciation and amortization
|
6,166
|
6,823
|
24,018
|
27,152
|
||||||||||||
Pre-opening costs
|
1,177
|
279
|
4,552
|
1,328
|
||||||||||||
(Gain) Loss on lease terminations and impairment
|
613
|
1,310
|
3,585
|
(721
|
)
|
|||||||||||
Total operating costs
|
76,957
|
63,935
|
301,038
|
256,622
|
||||||||||||
Operating income (loss)
|
(6,430
|
)
|
(3,648
|
)
|
(19,174
|
)
|
(36,635
|
)
|
||||||||
Other income (expenses)
|
||||||||||||||||
Interest and investment income
|
182
|
165
|
684
|
565
|
||||||||||||
Interest expense, net
|
(2,734
|
)
|
(2,736
|
)
|
(10,698
|
)
|
(10,968
|
)
|
||||||||
Other income (loss), net
|
626
|
16,601
|
655
|
(7,611
|
)
|
|||||||||||
Total other income (expenses)
|
(1,926
|
)
|
14,030
|
(9,359
|
)
|
(18,014
|
)
|
|||||||||
Loss before income tax
|
(8,356
|
)
|
10,382
|
(28,533
|
)
|
(54,649
|
)
|
|||||||||
Income tax expense
|
217
|
436
|
1,779
|
1,705
|
||||||||||||
Consolidated net income (loss)
|
(8,573
|
)
|
9,946
|
(30,312
|
)
|
(56,354
|
)
|
|||||||||
Less: net loss attributable to noncontrolling interest
|
(378
|
)
|
-
|
(393
|
)
|
-
|
||||||||||
Net loss attributable to the Company
|
(8,951
|
)
|
9,946
|
(29,919
|
)
|
(56,354
|
)
|
|||||||||
Preferred dividends
|
(1,395
|
)
|
(1,395
|
)
|
(5,580
|
)
|
(5,580
|
)
|
||||||||
Loss applicable to common stockholders
|
$
|
(10,346
|
)
|
$
|
8,551
|
$
|
(35,499
|
)
|
$
|
(61,934
|
)
|
|||||
Loss applicable to common stock, per share
|
||||||||||||||||
Basic (in dollars per share)
|
$
|
(0.11
|
)
|
$
|
0.13
|
$
|
(0.39
|
)
|
$
|
(0.92
|
)
|
|||||
Diluted (in dollars per share)
|
$
|
(0.11
|
)
|
$
|
0.13
|
$
|
(0.39
|
)
|
$
|
(0.92
|
)
|
|||||
Weighted average number of shares of common stock outstanding
|
||||||||||||||||
Basic
|
92,073,344
|
67,158,745
|
92,073,344
|
67,158,745
|
||||||||||||
Diluted
|
92,073,344
|
67,158,745
|
92,073,344
|
67,158,745
|
Three Months Ended
December 31,
|
Twelve Months Ended
December 31,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
Consolidated net income (loss)
|
$
|
(8,573
|
)
|
$
|
9,946
|
$
|
(30,312
|
)
|
$
|
(56,354
|
)
|
|||||
Income tax expense
|
217
|
436
|
1,779
|
1,705
|
||||||||||||
Other (income) loss, net
|
(626
|
)
|
(16,601
|
)
|
(655
|
)
|
7,611
|
|||||||||
Net interest expense
|
2,552
|
2,571
|
10,014
|
10,403
|
||||||||||||
Operating income (loss)
|
$
|
(6,430
|
)
|
$
|
(3,648
|
)
|
$
|
(19,174
|
)
|
$
|
(36,635
|
)
|
||||
Depreciation and amortization
|
6,166
|
6,823
|
24,018
|
27,152
|
||||||||||||
(Gain) loss on lease terminations and impairment
|
613
|
1,310
|
3,585
|
(721
|
)
|
|||||||||||
Pre-opening costs
|
1,177
|
279
|
4,552
|
1,328
|
||||||||||||
Other items1
|
1,009
|
537
|
3,259
|
5,770
|
||||||||||||
Adjusted EBITDA
|
$
|
2,535
|
$
|
5,301
|
$
|
16,240
|
$
|
(3,106
|
)
|
(1) |
For the three months ended December 31, 2021 and 2020, other items include (i) corporate severance of $86 and ($4), respectively; (ii) transactional G&A of $472 and $161, respectively; and (iii) employee stock-based compensation of
$451 and $381, respectively. For the twelve months ended December 31, 2021 and 2020, other items include (i) corporate severance of $266 and $1,128 respectively; (ii) transactional G&A of $1,305 and $3,276, respectively; and (iii)
employee stock-based compensation of $1,689 and $1,366, respectively.
|
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