Revenue growth has faded significantly to 2.7% as of 2017Q2, while net margins remain fragile and frequently dip into negative territory due to high operating overhead.
| Sales/Revenue | 1.1B | 1.09B | 1.05B | 884.15M | 815.08M |
| Revenue Growth % | 2.93% | 3.38% | 19.08% | 8.47% | - |
| Cost of Goods Sold | 102.29M | 100.49M | 96.1M | 81.17M | 74.61M |
| COGS % of Revenue | - | 9.23% | 9.13% | 9.18% | 9.15% |
| Gross Profit | 999.97M | 987.99M | 956.76M | 802.99M | 740.47M |
| Gross Margin % | 90.72% | 90.77% | 90.87% | 90.82% | 90.85% |
| Gross Profit Growth % | - | 3.26% | 19.15% | 8.44% | - |
| Operating Expenses | 86.5M | 77.75M | 82.62M | 73.87M | 64.07M |
| OpEx % of Revenue | - | 7.14% | 7.85% | 8.35% | 7.86% |
| Selling, General & Admin | 86.5M | 77.75M | 82.62M | 73.87M | 64.07M |
| SG&A % of Revenue | - | 7.14% | 7.85% | 8.35% | 7.86% |
| Research & Development | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 81.61M | 91.95M | 59.81M | 65.98M | 61.19M |
| Operating Margin % | 7.4% | 8.45% | 5.68% | 7.46% | 7.51% |
| Operating Income Growth % | - | 53.74% | -9.36% | 7.83% | - |
| EBITDA | 195.6M | 204.36M | 179.35M | 160.1M | 138.49M |
| EBITDA Margin % | 17.75% | 18.77% | 17.03% | 18.11% | 16.99% |
| EBITDA Growth % | 1.32% | 13.94% | 12.03% | 15.6% | - |
| D&A (Non-Cash Add-back) | 114M | 112.4M | 119.54M | 94.11M | 77.3M |
| EBIT | 94.3M | 92.56M | 62.73M | 37.07M | 44.68M |
| Net Interest Income | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 85.61M | 87.19M | 70.67M | 65.21M | 83.67M |
| Other Income/Expense | -72.92M | -86.58M | -67.75M | -94.12M | -100.18M |
| Pretax Income | 8.69M | 5.37M | -7.94M | -28.14M | -38.99M |
| Pretax Margin % | 0.79% | 0.49% | -0.75% | -3.18% | -4.78% |
| Income Tax | -207K | 1.35M | 1.63M | -41.47M | 1.68M |
| Effective Tax Rate % | -2.38% | 25.09% | -20.51% | 147.38% | -4.31% |
| Net Income | -426K | 3.58M | -9.51M | 13.23M | -40.89M |
| Net Margin % | -0.04% | 0.33% | -0.9% | 1.5% | -5.02% |
| Net Income Growth % | 90.49% | 137.61% | -171.92% | 132.34% | - |
| Net Income (Continuing) | -426K | 3.58M | -9.51M | 13.23M | -40.89M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.01 | 0.06 | -0.15 | 0.21 | -0.75 |
| EPS Growth % | 85.41% | 136.93% | -171.43% | 128% | - |
| EPS (Basic) | - | 0.06 | -0.15 | 0.21 | -0.75 |
| Diluted Shares Outstanding | 64.5M | 64.58M | 64.36M | 64.32M | 54.6M |
| Basic Shares Outstanding | 64.5M | 64.52M | 64.36M | 63.94M | 54.17M |
| Dividend Payout Ratio | - | - | - | - | - |
High leverage interest sensitivity
Based on historical income statements, MYCC's revenue growth has decelerated from a peak of 24.9% in 2015Q3 to a modest 2.7% by 2017Q2, suggesting that the initial expansion phase of their membership portfolio has encountered significant headwinds in capturing new market share within the leisure sector.
The sharp decline in top-line growth indicates that the company's reliance on aggressive acquisition-led expansion may be reaching a saturation point. Investors should monitor whether the current low-single-digit growth is sufficient to cover the fixed costs inherent in maintaining a sprawling, multi-market club portfolio.
As reported in financial filings, MYCC maintains a remarkably consistent gross margin hovering around 90.77%, yet this figure appears to exclude critical property-level operating expenses, which obscures the true profitability of the underlying golf and country club assets when compared to broader leisure industry peers.
While the headline gross margin suggests high pricing power, the stark disconnect between this metric and the razor-thin net margins implies that the business model is heavily burdened by non-COGS operating costs. This structure suggests that any inflationary pressure on labor or maintenance will disproportionately impact the bottom line.
According to the provided income statement data, MYCC's operating income remains highly volatile, failing to scale consistently with gross profit, which suggests that SG&A expenses are not being managed with the efficiency required to translate membership dues into meaningful operating leverage for the equity holders.
The inability to consistently expand operating margins despite high gross margins points to a rigid cost structure that likely includes significant fixed property-level overhead. This lack of scalability warrants further investigation into whether management can optimize club-level expenses without compromising the member experience.
Based on the reported figures, MYCC's net income frequently swings into negative territory, with net margins as thin as 0.33%, indicating that the company's earnings quality is highly susceptible to interest expense and depreciation charges that consume nearly all generated operating income each quarter.
The frequent oscillation between net profit and loss suggests that the company lacks a sufficient buffer to absorb operational shocks or cyclical downturns. This precarious profitability profile implies that the business is essentially operating to service its debt obligations rather than to generate sustainable returns for shareholders.
As evidenced by the income statement trends, the company's reliance on high-leverage financing to fund facility upgrades may be unsustainable, as the 7.63% debt/equity ratio leaves little room for error in a higher-for-longer interest rate environment that threatens to erode the already minimal net margins.
Short-sellers would likely focus on the potential for a 'club run' where declining facility quality leads to a feedback loop of member attrition and reduced initiation fee intake. The market may be overestimating the value of the underlying real estate while ignoring the restrictive covenants that limit the company's ability to monetize these assets.
Quick answers to the most common questions about buying MYCC stock.
For fiscal year 2016, ClubCorp Holdings, Inc. (MYCC) reported total revenue of $1.09B. This represents a 33.5% increase compared to $815.1M in 2013.
ClubCorp Holdings, Inc. (MYCC) is profitable, generating $3.6M in net income for the fiscal year ending 2016 with a net profit margin of 0.3%.
ClubCorp Holdings, Inc. (MYCC) reported an operating income of $92.0M, resulting in an operating profit margin of 8.4%. This margin reflects the operational efficiency of the business before interest and taxes.
ClubCorp Holdings, Inc. (MYCC) generated $988.0M in gross profit for the year, representing a gross profit margin of 90.8%. This demonstrates the company's core pricing power and production efficiency.