The World Leader in Private Clubs announces financial results for its fiscal-year 2015 second quarter ended June 16, 2015. The second quarter of fiscal 2015 and fiscal 2014 consisted of 12 weeks.  All growth percentages refer to year-over-year progress.

Second Quarter Results:

• Revenue increased $52.3 million, or 24.8%, to $263.7 million for the second quarter of 2015. 
• Adjusted EBITDA(1) increased $10.5 million to $60.2 million, up 21.1% from increased revenue and lower club payroll and operating expenses as a percent of revenue. 
• Same Store Clubs. Same-store revenue was up $5.5 million, or 2.6%, due primarily to higher dues revenue and increased food & beverage spend; while same store adjusted EBITDA grew $2.8 million, or 4.8%, due to increased revenue and favorable operating expenses as a percent of revenue. 
• New or Acquired Clubs.(2) New clubs opened in 2014 or clubs acquired in 2014 and 2015 contributed revenue growth of $44.4 million and adjusted EBITDA growth of $10.2 million.

Quotes:

• Eric Affeldt, president and chief executive officer: "We delivered record financial results this quarter bolstered by positive same store sales and a strong contribution from recent acquisitions. Despite record rainfall in Texas this spring, we still grew same store revenue and adjusted EBITDA in the second quarter. Our results demonstrate the stability and resiliency of our private club and membership business model. Additionally, our recent acquisitions are performing very well and are generating a significant amount of additional revenue and adjusted EBITDA growth. Overall, we are confident in our strategy and are reaffirming our outlook for fiscal 2015." 
• Curt McClellan, chief financial officer: "We continue to execute our three pronged growth strategy - namely organic growth, reinvention and acquisitions. We continue to see increased enrollment in our O.N.E. product, we continue to execute our reinvention strategy as we are on track to add reinvention elements at 30 clubs in 2015, and we are actively pursuing additional acquisition opportunities. Additionally, we effectively managed operating expenses and experienced strong private event revenue this quarter. We delivered strong results, and having made some excellent strides on reinvention capital, we are excited about our continued growth prospects for the second half of the year."

Segment Highlights:

Golf and country clubs (GCC):

• GCC total revenue of $213.6 million for the second quarter of 2015 increased $46.4 million, up 27.8%, compared to the second quarter of 2014. 
• GCC adjusted EBITDA was $61.8 million, an increase of $11.9 million, up 23.9%. 
• GCC adjusted EBITDA margin was 28.9%, a decline of 90 basis points versus the second quarter of 2014. 
• Same store revenue increased $3.2 million, up 1.9%, driven primarily by increases in dues revenue up 3.9%, and private events food and beverage revenue up 5.9%, offset by a decline in golf ops and other revenue. 
• Same store adjusted EBITDA increased $1.9 million, up 3.7%, due largely to increased dues and food and beverage revenue, and favorable variable payroll expenses as a percent of revenue. 
• Same store adjusted EBITDA margin improved 50 basis points to 30.8%. 
• Recently acquired GCC clubs contributed revenue growth of $43.3 million and adjusted EBITDA growth of $10.1 million.

Business, sports and alumni clubs (BSA):

• BSA revenue of $46.0 million for the second quarter of 2015 increased $3.4 million, up 8.0%, compared to the second quarter 2014 driven by strong growth in both same store and new and acquired clubs. 
• BSA adjusted EBITDA was $9.3 million, an increase $1.1million, up 12.9%. 
• BSA adjusted EBITDA margin was 20.1%, a 90 basis points margin improvement versus the second quarter 2014. 
• Same store revenue increased $2.3 million, up 5.4%, driven by increases in dues and private event revenue. 
• Same store adjusted EBITDA increased $1.0 million, up 11.5%, due to increased revenue favorable variable payroll expense as a percent of revenue. 
• Same store adjusted EBITDA margin improved 110 basis points to 20.5%. 
• New or recently acquired BSA clubs contributed revenue of $1.1 million and adjusted EBITDA of $0.1 million.

Other Data:

• O.N.E. and Other Upgrades. Including memberships acquired with the Sequoia Golf acquisition, as of June 16, 2015, approximately 46% of our memberships were enrolled in O.N.E. or similar upgrade programs, as compared to approximately 39% of our memberships that were enrolled in similar upgrade programs as of December 30, 2014. As of June 16, 2015, the Company offered O.N.E. at 134 clubs. The Company has also decided to extend O.N.E. to an additional 15 business, sports and alumni clubs. 
• Reinvention. In 2015, ClubCorp plans to invest a total of $48-53 million on major reinvention projects. As of June 30, 2015, the Company had completed reinvention elements at 15 existing and newly acquired clubs. Additionally, projects at another 10 clubs are in active construction, and five more are in design or awaiting permitting. Combined, the Company is on track to add reinvention elements at approximately 30 clubs in 2015. 
• Acquisitions. Year-to-date in 2015, ClubCorp has added eight clubs via acquisition with two properties just north of Chicago, Illinois, Ravinia Green Country Club and Rolling Green Country Club; and six clubs in the southeast United States, Bermuda Run Country Club in Bermuda Run, North Carolina, Brookfield Country Club in Roswell, Georgia, Firethorne Country Club in Marvin, North Carolina, Ford's Colony Country Club in Williamsburg, Virginia, Temple Hills Country Club in Franklin, Tennessee, and Legacy Golf Club at Lakewood Ranch in Bradenton, Florida. As of June 16, 2015, ClubCorp owns or operates 159 golf and country clubs representing approximately 200 18-hole equivalents. Additionally, the Company owns or operates 49 business, sports and alumni clubs. 
• Membership. Total club memberships, excluding managed clubs, as of June 16, 2015 were 174,583, an increase of 31,348, up 21.9% over memberships at June 17, 2014. Same store golf and country club memberships, excluding managed clubs, increased 0.2%, while total golf and country club memberships, excluding managed clubs, increased 34.5%. Same store business, sports and alumni club memberships, excluding managed clubs, decreased -1.1%, while total business, sports and alumni club memberships, excluding managed clubs, increased 1.8%. Total club memberships, including managed clubs, as of June 16, 2015were 185,184. 
• Levered Free Cash Flow.(1) Levered free cash flow over the last four quarters was $112.7 million, an increase from $87.4 million a year ago. 
• Capital Structure. On April 7th the Company closed its multi-club portfolio acquisition of six golf properties from sellers Stratford Golf Partners and Accord Golf Capital for a combined purchase price of just under $44 million, and the acquisition was funded from existing liquidity sources. On May 28th the Company obtained a 25 basis point rate reduction to its Term B loans, resulting in approximately ~$2 million annualized incremental interest expense savings.

Company Outlook:
The following guidance is based on current management expectations. All financial guidance amounts are estimates and subject to change, including as a result of matters discussed under the "Forward-Looking Statements" cautionary language which follows, and the Company undertakes no duty to update its guidance.  For fiscal year 2015, the Company is reaffirming its outlook to deliver revenue in the range of $1.03 billion to $1.06 billion and adjusted EBITDA in the range of $230.0 million to $240.0 million.  The current outlook implies year-over-year revenue growth of 16-20% and year-over-year adjusted EBITDA growth of 17-22%.