Drive Shack Inc.
A Maryland Corporation
10670 N. Central Expressway
Suite 700
75231
Telephone: (646) 585-5591
Corporate Website: https://ir.driveshack.com/
SIC Code:
Quarterly Report
For the period ending March 31, 2023 (the "Reporting Period")
Securities:
Name of each exchange on which | ||
Title of each class | Trading Symbols(s) | registered |
Common Stock, $0.01 par value per share | DSHK | Over the Counter Markets (OCTMKTS) |
9.75% Series B Cumulative Redeemable Preferred Stock, | ||
$0.01 par value per share | DSHKP | Over the Counter Markets (OCTMKTS) |
8.05% Series C Cumulative Redeemable Preferred Stock, | ||
$0.01 par value per share | DSHKN | Over the Counter Markets (OCTMKTS) |
8.375% Series D Cumulative Redeemable Preferred | ||
Stock, $0.01 par value per share | DSHKO | Over the Counter Markets (OCTMKTS) |
Securities registered pursuant to Section 12(g) of the Act: None
The aggregate market value of the common stock held by non-affiliates as of December 31, 2022 (computed based on the closing price on the last business day of the registrant's most recently completed second quarter as reported) was: $15,705,453.
The number of shares outstanding of the registrant's common stock was 92,385,019 as of March 31, 2023.
DRIVE SHACK INC.
INDEX
PART I. FINANCIAL INFORMATION Item 1. Financial Statements
Consolidated Balance Sheets as of March 31, 2023 (unaudited) and December 31, 2022
Consolidated Statements of Operations (unaudited) for the three months ended March 31, 2023 and 2022
Consolidated Statements of Comprehensive Loss (unaudited) for the three months ended March 31, 2023 and 2022
Consolidated Statements of Changes in Equity (unaudited) for the three months ended March 31, 2023 and 2022
Consolidated Statements of Cash Flows (unaudited) for the three months ended March 31, 2023 and 2022 Notes to Consolidated Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Item 3. Quantitative and Qualitative Disclosures About Market Risk
PART II. OTHER INFORMATION Item 1. Legal Proceedings Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
SIGNATURES
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
DRIVE SHACK INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(unaudited) | |||||
March 31, 2023 | December 31, 2022 | ||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents | $ | 18,758 | $ | 12,345 | |
Restricted cash | 4,412 | 4,373 | |||
Accounts receivable, net | 5,586 | 8,305 | |||
Real estate securities, available-for-sale | 1,375 | 1,631 | |||
Other current assets | 28,038 | 24,872 | |||
Total current assets | 58,169 | 51,526 | |||
Restricted cash, noncurrent | 216 | 216 | |||
Property and equipment, net of accumulated depreciation | 204,020 | 198,442 | |||
Operating lease right-of-use assets | 184,222 | 189,993 | |||
Intangibles, net of accumulated amortization | 13,613 | 14,108 | |||
Other assets | 3,486 | 3,696 | |||
Total assets | $ | 463,726 | $ | 457,981 | |
Liabilities and Deficit | |||||
Current liabilities | |||||
Obligations under finance leases | $ | 4,403 | $ | 4,761 | |
Membership deposit liabilities | 22,479 | 22,479 | |||
Accounts payable and accrued expenses | 43,064 | 41,477 | |||
Deferred revenue | 25,749 | 29,490 | |||
Other current liabilities | 28,452 | 28,904 | |||
Total current liabilities | 124,147 | 127,111 | |||
Credit facilities and obligations under finance leases - noncurrent | 5,012 | 5,849 | |||
Operating lease liabilities - noncurrent | 177,017 | 177,867 | |||
Long-term debt | 14,841 | - | |||
Junior subordinated notes payable | 51,161 | 51,169 | |||
Membership deposit liabilities, noncurrent | 110,470 | 109,762 | |||
Deferred revenue, noncurrent | 10,926 | 11,303 | |||
Other liabilities | 2,196 | 1,877 | |||
Total liabilities | $ | 495,770 | $ | 484,938 |
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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 March 31, 2023 and December 31, | |||||
2022 | $ | 61,583 | $ | 61,583 | |
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 92,385,019 and 92,385,019 shares | |||||
issued and outstanding at March 31, 2023 and December 31, 2022, respectively. | 924 | 924 | |||
Additional paid-in capital | 3,232,166 | 3,232,104 | |||
Accumulated deficit | (3,332,685) | (3,326,357) | |||
Accumulated other comprehensive income (loss) | - | (281) | |||
Total deficit of the company | $ | (38,012) | $ | (32,027) | |
Noncontrolling interest | 5,968 | 5,070 | |||
Total deficit | $ | (32,044) | $ | (26,957) | |
Total liabilities and equity | $ | 463,726 | $ | 457,981 | |
See notes to Consolidated Financial Statements.
2
DRIVE SHACK INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) (Dollars in thousands, except share data)
Three Months Ended March 31, | |||||
2023 | 2022 | ||||
Revenues | |||||
Golf operations | $ | 60,189 | $ | 55,284 | |
Sales of food and beverages | 17,270 | 13,698 | |||
Total revenues | 77,459 | 68,982 | |||
Operating costs | |||||
Operating expenses | 62,301 | 55,139 | |||
Cost of sales - food and beverages | 4,758 | 3,361 | |||
General and administrative expense | 7,399 | 9,063 | |||
Depreciation and amortization | 6,675 | 6,193 | |||
Pre-opening costs | 1,678 | 747 | |||
Loss on lease terminations and impairment | 2 | 12,871 | |||
Total operating costs | 82,813 | 87,374 | |||
Operating loss | (5,354) | (18,392) | |||
Other income (expenses) | |||||
Interest and investment income | 214 | 201 | |||
Interest expense, net | (2,092) | (2,646) | |||
Other income | 2,366 | 2,645 | |||
Total other income (expenses) | 488 | 200 | |||
Loss before income tax | (4,866) | (18,192) | |||
Income tax expense | 49 | 721 | |||
Consolidated net loss | (4,915) | (18,913) | |||
Less: net income attributable to noncontrolling interest | 18 | 53 | |||
Net loss attributable to the Company | (4,933) | (18,966) | |||
Preferred dividends | (1,395) | (1,395) | |||
Loss applicable to common stockholders | $ | (6,328) | $ | (20,361) | |
Loss applicable to common stock, per share | |||||
Basic | $ | (0.07) | $ | (0.22) | |
Diluted | $ | (0.07) | $ | (0.22) | |
Weighted average number of shares of common stock outstanding | |||||
Basic | 92,385,019 | 92,254,084 | |||
Diluted | 92,385,019 | 92,254,084 | |||
See notes to Consolidated Financial Statements.
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Drive Shack Inc. published this content on 21 June 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 June 2023 23:15:05 UTC.