Free cash flow remains highly volatile, with margins fluctuating between -3.3% and 7.9% as the company consistently allocates approximately 10% of revenue toward capital expenditures.
| Cash from Operations | 149.8M | 157.65M | 152.27M | 129.16M | 93.69M |
| Operating CF Margin % | - | 14.48% | 14.46% | 14.61% | 11.49% |
| Operating CF Growth % | -40.52% | 3.54% | 17.89% | 37.85% | - |
| Net Income | -426K | 3.58M | -9.51M | 13.23M | -40.89M |
| Depreciation & Amortization | 114M | 112.4M | 119.54M | 94.11M | 77.3M |
| Stock-Based Compensation | 0 | 0 | 0 | 0 | 0 |
| Deferred Taxes | -6.13M | -3.05M | -7.08M | 2.11M | -4.55M |
| Other Non-Cash Items | 93.36M | 114.25M | 19.39M | 12.61M | 185.92M |
| Working Capital Changes | -59.08M | -76.54M | 24.96M | 2.8M | -138.31M |
| Change in Receivables | -8.02M | -3.93M | 6.62M | 29.74M | -26.93M |
| Change in Inventory | 620.81M | 89.32M | 98.65M | 79.8M | 0 |
| Change in Payables | -8.9M | -2.58M | 2.5M | 1.03M | -815K |
| Cash from Investing | -116.97M | -105.37M | -160.25M | -352.69M | -72.73M |
| Capital Expenditures | -114.23M | -108.77M | -105.24M | -72.65M | -59.54M |
| CapEx % of Revenue | 10.36% | 9.99% | 10% | 8.22% | 7.3% |
| Acquisitions | -18.46M | -9.79M | -58.58M | -20.25M | 0 |
| Investments | - | - | - | - | - |
| Other Investing | 16.74M | 15.45M | 3.58M | -259.79M | -13.19M |
| Cash from Financing | -85.04M | -85.03M | 48.49M | 245M | -49.1M |
| Debt Issued (Net) | 0 | 0 | 0 | 0 | 0 |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | -1.02M | -2.26M | 0 | 0 | 0 |
| Other Financing | -85.04M | -85.03M | 48.49M | 245M | -49.1M |
| Net Change in Cash | -52.59M | -31.75M | 41.3M | 0 | 0 |
| Free Cash Flow | 35.58M | 48.88M | 47.03M | 56.51M | 34.15M |
| FCF Margin % | 3.23% | 4.49% | 4.47% | 6.39% | 4.19% |
| FCF Growth % | -39.88% | 3.95% | -16.78% | 65.47% | - |
| FCF per Share | 0.55 | 0.76 | 0.73 | 0.88 | 0.63 |
| FCF Conversion (FCF/Net Income) | -83.52x | 44.07x | -16.01x | 9.77x | -2.29x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 |
High leverage interest sensitivity
According to the provided cash flow data, the relationship between net income and operating cash flow is highly erratic, with OCF/NI ratios frequently swinging into negative territory, suggesting that reported earnings are heavily distorted by non-cash charges and do not reflect the underlying cash-generating capacity.
The persistent gap between net income and operating cash flow indicates that the company's accounting earnings are not a reliable proxy for liquidity. Investors should monitor the heavy reliance on depreciation and amortization to bridge the gap between accounting losses and positive operating cash flow, which suggests a business model that is fundamentally capital-intensive.
As reported in financial statements, MYCC's free cash flow trajectory remains inconsistent, with margins fluctuating between -3.3% and 7.9% over the observed ten-quarter period, highlighting the difficulty in maintaining positive cash generation while simultaneously funding the necessary upkeep of a geographically dispersed portfolio of leisure assets.
The inability to generate stable free cash flow suggests that the company's operational success is highly sensitive to seasonal demand and discretionary spending patterns. This volatility warrants further investigation into whether the current capital expenditure levels are sufficient to maintain asset quality or if they are merely deferring necessary maintenance.
Based on the reported figures, MYCC consistently allocates approximately 10% of revenue toward capital expenditures, a trend that appears to be a structural requirement for maintaining the physical standards of its golf and country club assets rather than a discretionary choice for aggressive growth.
This high capital intensity suggests that the company is effectively a treadmill business where a significant portion of operating cash flow must be reinvested just to keep the assets operational. The lack of a clear downward trend in CapEx/Revenue indicates that the company has not yet achieved the scale necessary to reduce its relative maintenance burden.
As evidenced by the quarterly cash flow data, working capital changes are frequently large and negative, such as the $44.6 million outflow in 2016Q1, which suggests that the company struggles with efficient cash conversion and may be facing timing mismatches in membership dues collection or vendor payments.
These significant swings in working capital appear to be a primary driver of the company's cash flow instability. Investors should monitor whether these fluctuations are indicative of seasonal membership cycles or if they reflect deeper issues in the company's ability to manage its payables and receivables effectively.
Quick answers to the most common questions about buying MYCC stock.
ClubCorp Holdings, Inc. (MYCC) generated $157.7M in net cash from operating activities in 2016. This reflects the cash generated directly from core business operations.
ClubCorp Holdings, Inc. (MYCC) generated $48.9M in free cash flow in 2016. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
ClubCorp Holdings, Inc. (MYCC) spent $108.8M on capital expenditures in 2016. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2016, ClubCorp Holdings, Inc. (MYCC) spent $2.3M on share repurchases. This shows the company's commitment to returning capital to its equity investors.