Q4 2021 Drive Shack Inc Earnings Call
Oh, I thought, but I appreciate your patience and ask that you. Please continue to standby.
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Good morning, My name is Britney and I'll be your conference operator today.
This time I would like to welcome everyone to drive shacks fourth quarter and full year 2021 earnings conference call.
All lines have been placed on mute to prevent any background noise. After the prepared remarks, we will have a question and answer session and instructions will be given at that time today's call is being recorded if you should need operator assistance. Please press star zero at this time I would like to hand, the call over to Kelly bulk coin.
Investor Relations and Treasury, Chris about corn, you may begin.
Thank you and good morning, everyone I'd like to welcome you to drive Shack fourth quarter 2021 earnings call. Joining me today is president and Chief Executive Officer, Hannah Corey and Chief Financial Officer, Mike Nichols.
We've posted the investor supplement to our Investor Relations website at IR Dot drive Shack dotcom.
If you haven't had a chance to download the presentation. Please take the time to do so right now if you haven't done already.
Like to point out that certain remarks made today will include forward looking statements.
Actual results may differ materially from those considered by these statements. We encourage you to review the disclaimers in our press release and Investor supplement and to review the risk factors contained in our annual and quarterly reports filed with the SEC.
And with that I'd like to now turn the call over to Hana.
Morning, everyone. Thanks for joining us today.
2021 was a record year for drive check Inc. We reported the highest total annual revenue in three years, finishing 2021 with just over 280 million in revenue, which was $62 million above prior year for 2020 . One we also delivered around 16 million and total company adjusted EBITA the highest since transforming our.
Golf business into an entertainment company.
For the fourth quarter total company revenue exceeded 70 million and generated adjusted EBITDA of 2.5 million.
The demand for traditional golf remains high DAU, even versus pre COVID-19 levels in 2021 AGC did around 240 million in revenue an increase of over 40 million versus prior year, our private clubs remain at 99% membership capacity with a notable increase in total rounds and daily P round of approximately 15% each over.
Prior year.
Revenue from Greening cart fees is also up nearly 30% versus 2020.
As you all as you are all aware Twenty-twenty was a hugely transformative year for the game of golf in terms of its rebounding popularity due to coat.
Based on the numbers we've generated the game of golf is here to stay and will only continue to gain momentum with golfers and non golfers alike.
Our drive shack venues outperformed our expectations in 2020 , one ending the year just over 41 million in revenue and $13 5 million in EBITDA coming in slightly above our run rate projected projections any non COVID-19 year.
Orlando also broke even for the first time in its history.
At the beginning of the year the revenue was mainly being driven by walking guests, but the events business grew over the course of the year and as regulations around gathering and grips Lucent and.
In Q4, the four drive shack venues generated almost 4 million and event revenue and $7 5 million in walk in revenue our walk in business. This quarter was around 95% of our pre COVID-19 levels in Q4 19.
While events, where just over 75%.
We've had great success in both AGC and drive shack venues and courses coming out of Covid.
We are seeing the same pattern with our pet or even yes, our venues in Charlotte and the colony generated just under $3 million in revenue in Q4, and just under 4 million for the year. We currently have two pet or even use opened with an additional seven planned openings for 2022 and.
In addition to these venues we're working through a large pipeline of additional been used for 2023 openings most of which will sign this year to get to our goal of 16 openings in 2023.
There's a bit of history on our company on page six of the deck for those would be her new to the story.
Over the past three plus years drive Shack, Inc has undergone a significant transformation from a traditional golf business to an entertainment operating company. During this time, we sold the majority of our own course portfolio and converted a number of them into managed agreement to fund the growth of our entertainment golf business, namely to fund the development of our drive shack venues that we operate today.
We opened our first drive shack venue in Orlando in April of 2018, we took our learnings from Orlando, specifically technology enhancement and opened three generations viewpoint of vignettes in August September and October 2019, and those were in Raleigh, Richmond, and West Palm Beach. These three venues open strong significantly outperforming our 2019.
<unk> and beating their initial plans at year by 14%.
We sense developed a new entertainment golf experience called pedigree, which is indoor tech enabled cutting within an immersive experience. We opened our first pet or in the colony just outside of Dallas in September of last year, followed by the opening of our Charlotte location. Three months later in mid December of 2021. Our goal is to open a total of 50 pottery venues by the end of 2024.
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Turning now to page seven for a summary, and timeline view of our courses and opinions on the American golf side of our business. We held 55 courses across nine states in Q4 with one owned 32 leased in 'twenty two managed courses with our drive Shack Entertainment Golf business. We currently have Bourbon years in Orlando, Raleigh, Richmond, and West Hall.
We are additionally committed to leases in New Orleans and Manhattan.
With pottery, we now have two venues open in the colony, Texas and Charlotte North Carolina.
In Q3, we reported leases in D C Miami and Houston and stated we had an additional three venues on which we were nearing lease execution. Since then we have added leases on an additional five venues in Chicago, Philadelphia, Pittsburgh In New York City, and just earlier. This morning, we announced a new pet a relocation in Kansas, Missouri.
Kansas City, Missouri, rather.
We have a robust pipeline of future relocations were actively pursuing and prioritized markets across the U S for 2022 and beyond we are in active lease negotiations in several major markets and remain actively engaged with landlords and brokers in multiple markets across the U S. I'll speak more to our development plans and timelines in a few moments.
As I mentioned earlier, we debuted our first two pottery been years in 2020 . One we opened the colony, Texas on September 3rd and in Charlotte North Carolina in mid December .
We were intentional about the size and number of courses in our first handful of been years. So that we can prove out our concepts per format across the news of different sizes with different numbers of course it does.
Call me, but he was just under 21000 square feet spans two floors and has four uniquely themed nine hole courses, which we call rooftop large library and illusion. It has three bars, a patio terrorists multiple lounges and seating areas throughout.
The Charlotte than he was 15000 square feet single story with two courses the Conservatory in the library to bars multiple matches and in indoor outdoor patio.
Even with the difference in the square footage and number of course is that each of these venues. We've observed similar similar trends across both and the guest response continues to be very positive.
Looking at the charts on page nine from their openings through February of this year from their opening through February of this year. The colony has generated nearly $5 million in revenue. The revenue mix of this $5 million was roughly 18% in event revenue, 9% and food revenue.
And the remaining 73% split nearly evenly between gameplay and beverage sales.
Opening in mid December last year to February of this year, Charlotte generated nearly $2 million in revenue with roughly 9% of that being event revenue, 30% of the revenue 32% of the revenue attributed to gameplay, 13% to food and 46% to beverage.
But then you see that over half of their guests plan their visits in advance via our reservation platform.
Alcohol sales comprise around 80% of the total F&B revenue per venue and each nine hole course takes an average of just over 30 minutes to play.
We're extremely pleased with the strong performance and he's been used to date, particularly with each generating positive than your level EBITA operating results in Q4, we're gaining proof of concept with each passing month, and we expect them to continue delivering well within the projected venue level economics, we put forward several quarters ago.
Our four drive shack venues performed impressively last year as well delivering record high annual revenue of 41, and a half million dollars 33, and a half of which was attributed to walk in revenue and $8 million to events.
With these record high revenue numbers, we also generated the highest annual venue level EBITA to date of $13 5 million.
Again, Orlando broke even in 2021, delivering its first ever positive menu level EBITA or.
Our drive shack venues are strong stable business for us and with the increasing demand with the banks, we expect them to continue to continue delivering at or above their run rate projections.
The great results, we're seeing from our drive shack locations are indicators that our Washington business has largely returned to normalized pre COVID-19 levels with events also continuing their post COVID-19 rebound you can see the trend illustrated on page 11 of the deck in 2021 drive shack venues generated a total of 33 and a half million in walk in revenue versus 12.
One 7 million in 2020 event revenue for 2021 was 8 million versus $3 6 million in 2020.
As I mentioned earlier, the four drive shack venues generated a $7 $5 million in walk in revenue, which was approximately 95% of pre COVID-19 levels of 8 million in Q4 of 2019, while events were almost $4 million and just over 75% of Q nine Q4, 2019 levels of nearly $5 million.
Given that Q4 was our opening quarter in a pre COVID-19 world. We are confident that our 2022 results are showing signs of revenue rebounding from COVID-19.
The momentum of our traditional golf side of our business has continued throughout 2021 with total revenue excluding management fee reimbursement of $182 4 million as you can see on page 12. This was at 26% increase versus 2020.
Both our public and private courses outperformed 2020 numbers with revenue from cleaning cart fees up nearly 30% and total rounds at private courses up 15% versus 2020.
We continue to maintain 99% capacity at all of our private membership based clubs and event revenue across both private and public was up 185% year over year coming in at almost 16 million in 2021.
As we turn now to page 14 them over the course of 2022, we expect to open seven additional putter he'd been yes.
In addition to the two venues that are open today. We currently have eight additional leases signed in D. C. Houston, Miami, Chicago, Philadelphia, Pittsburgh, New York City and as of this morning, we announced our 10th pottery than you in Kansas City, Missouri.
Find me is we have a robust pipeline of other venues in lease negotiation and the LOI process, we want to ensure that we are very clear and.
As transparent as possible when it comes to communicating the number of venues, we expect to open and when we expect to open them, we've learned quite a bit from the openings process last year and want to ensure we have taken the appropriate amount of time between builds in openings to be thoughtful about our strategy and approach given the current marketing conditions market conditions.
While the obstacles presented by the strain on supply chain and G. C. Labor are still present, we are very confident that the seven venues in 2022 is attainable and realistic.
The map on page 15 shows a visual representation of the states across the U S, where we either have an existing entertainment golf location or evaluating for a possible location. Our current U S. Coverage includes nearly 40 prioritized markets and around 20 future market for total U S capacity of just under 60 markets across the United.
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When we look at the projected venue level economics that we put forward several quarters ago. We remain confident that Perry was and will continue to be the best part the best path of growth for our company.
Page 16 outlines illustrative venue level economics for both pottery and drive shack.
Putter. He is an adjacency to our current business and as you can see here gives us the ability to grow quickly with less capital risk and higher returns than a big box drive shack venue.
With pottery, we expect to spend seven to 11 million to build each venue. We expect it to take approximately six to nine months to physically construct and generate opinion level EBITA between $2 million to $3 million.
Comparing that to a drive shack venue, where we expect to spend between 25 and $40 million to build each venue.
Taking approximately 18 to 24 months to complete and generating venue level EBITA of between four and $6 million.
These are both great results, but.
The early results that we're seeing in our pottery venues in both the colony and Charlotte are also proving that were well within these are economic ranges and targets that we provided.
And I will turn it over to Mike now to take you through our capital strategy and financial results.
Thanks, Hannah and good morning, everyone.
Let's start on page 17, as we look ahead to our capital plans to fund our growth plans for additional peddlery venues. In 2023. We currently estimate that we will need approximately $75 million of additional capital to finalize 2022 development and partially fund development of venues planned to open in 2023, we are working with the debt capital markets.
And expect to finalize the transaction in the second quarter of 2022 to secure the necessary capital to fund our near term development plans.
Development plans for 2023 and beyond will be funded with additional debt capital and cash flow from operations.
Turning now to page 19 in the deck for a summary view of our financial performance for the quarter on a total company basis for the fourth quarter, we generated $75 million of revenue a 17% increase over the $60 3 million in Q4 2020 for the quarter, we reported an operating loss of $6 4 million and <unk>.
Adjusted EBITDA of $2 5 million, our sixth consecutive quarter of positive adjusted EBITDA versus an operating loss of $3 6 million and adjusted EBITDA of $5 3 million for the fourth quarter 2020.
For the full year, we generated revenues of $281 8 million or 28% increase over 2020 and cut our operating loss nearly in half from $36 6 million in 2020 to $19 2 million in 2021.
Our full year adjusted EBITDA was $16 2 million compared to negative adjusted EBITDA of $3 1 million for 2020, a $19 3 million dollar improvement over year over year.
The business unit level for the quarter, our entertainment golf segment generated $14 million of revenue of which our drive shack venues delivered $11 2 million in pottery venues delivered $2 8 million.
As our colony location completed its first full quarter of operations at our Charlotte location opened in mid December .
Entertainment Golf revenue totaled $7 2 million for Q4 2020 in comparison, so we've nearly doubled the segment revenue over Q4 2020.
On the traditional golf side American golf generated $56 5 million of revenue during the quarter, including managed course reimbursements of 13 million exclude.
Excluding managed course reimbursements American golf's fourth quarter revenue was up approximately 9% this year versus the $53 1 million. During the same period last year, which included $13 3 million of course reimbursements.
For the full year American golf produced approximately $236 8 million of revenue, including $54 4 million of manage course reimbursements. This is up nearly 22% compared to 2020, <unk> hundred $94 7 million of AGC revenue, which included $54 $50 4 million or manage course reimbursements.
Strong public Green card fees.
Private course total rounds in memberships at higher event revenue were responsible for the increase.
As I mentioned earlier, we reported an operating loss of $6 4 million for the fourth quarter. This year versus an operating loss of $3 6 million in 2020.
While decreasing on a year over year basis. This quarter's operating loss included 900000 of pottery preopening costs compared to 2020 and includes increased compensation cost.
For the return of furloughed employees, particularly on the traditional golf side as well as increased course maintenance costs related to deferred maintenance and strong golf demand.
It also excludes $800000 of American golf rent abatements related to Covid, let the company benefited from in Q4 2020.
Additionally, our SG&A expenses this quarter are more in line with historical levels relative to the fourth quarter of 2020, when we were operating on reduced head count from previously furloughed positions as a result of the onset of COVID-19 earlier in the year.
These increased costs in 2021 were offset by revenue growth across both operating segments. The full year revenue of $281 8 million represented a strong 28% year over year growth rate and was driven by <unk>.
$42 6 million increase in golf operations revenue of $19 3 million increase in sales of food and beverages. After operating costs that significantly reduced our operating loss from $36 6 million in 2020 to $19 2 million in 2021 as mentioned earlier.
The net loss applicable to common shareholders for the fourth quarter was $10 3 million or 11%.
<unk> per share compared to Q4 2020 net income to common shareholders of $8 6 million or 13 cents per share, which was driven by a $16 6 million gain on the sale of our Rancho San Joaquin course of 2020.
Full year 2000, 22021, the net loss to common shareholders was $35 5 million or <unk> 39 per share compared to 2000, Twenty's net loss to common of $61 9 million or <unk> 92 per share.
Moving to page 22, our total company venue EBITDA contribution was $9 6 million for the fourth quarter of this year, which includes $4 2 million for entertainment golf encompassing both drive shack and pottery and agencies course, EBITDA contribution of $5 4 million for traditional golf last year, our Q4 total company venue.
EBITDA contribution was $11 9 million, which included $1 7 million of our entertainment golf in Agc's course, EBITDA contribution of $10 3 million for traditional golf.
SG&A for the fourth quarter. This year was $7 1 million compared to $6 6 million last year.
For the full year 2021, total venue EBITDA contribution more than doubled to $46 8 million versus $22 4 million in 2020, driven by impressive performance in both entertainment golf and traditional golf segments, Let's drive shack and pottery, producing a 600% increase from $2 million in 2020 to $13 9 million in 2021.
And AGC, increasing 61% from $20 4 million to $32 8 million over the same period.
Looking to liquidity and future capital needs at the end of December 2021, we had $58 3 million of unrestricted cash versus $47 8 million at the end of 2020.
As a reminder, we received approximately $54 million of net proceeds from our follow on common stock offering that settled in February 2021. This cash provided the capital we need to complete the execution of our growth plans for our first seven pottery venues. The first two of which have opened with another eight leases having been announced as mentioned earlier.
We will also be looking to the debt capital markets to fund continued part of redevelopment in conjunction with cash flows from operations.
Finally, I am pleased to announce the drive Shack board declared dividends on the company's preferred stock for the quarterly period ending April 32022, the dividends are payable may <unk> to holders of record as of April <unk> 2022.
Now I will turn it back to Hana for closing remarks.
Thanks, So much Mike and the team at drive Shack is really looking forward to a record year in 2022, we remain fiercely focused on increasing brand awareness and further driving profitability both in our existing courses and venues as well as in our new putter relocation with that I'll turn it over to the operator for questions.
At this time, if you have a question. Please press star one on your telephone keypad.
Any point. Your question has been answered you may remove yourself from the queue by pressing the pound key.
To your question, we do ask that you pick up your phone to allow optimal sound quality well take our first question from Peter <unk> with BTG.
Uh huh.
Great Thanks, and good morning.
And just a point of clarification first I think in the release you mentioned that the.
The pottery locations generated positive venue lever venue level operating results. This quarter are you.
Suggesting that both of these.
Venues are EBITDA profitable at this point despite the fact that Charlotte has only been open for a couple months at this point Peter Yeah, Hi, Adam Great question, Yes that is what I am suggesting we've been really impressed with the results coming out of both of our Pud relocations.
Especially given the fact that we've only been open for a short time.
Yeah.
Great and then just in terms of the.
Our strategy to open the units this year that part of our units I know you mentioned <unk>.
Even more units so you'll have I guess nine by year end can you give us a little bit more detail on terms of timing.
You know second quarter third quarter fourth quarter when some of these units should start to.
To open for modeling purposes, Yeah of course, I can tell you generally what we what we expect.
And obviously there might be a little bit of swing here, but we're expecting the majority of them to open Q3, Q4 with a potential as one of them potentially opening at the end of Q2.
Okay and with the end of Q2 be D C or is that a different unit.
Yes that would be D. C. D. C. D. C is kind of first step and it's been one that we've been working on the AMA will not the longest but D. C is a pretty difficult market and so we've been we've been working on that one quite a bit.
Okay.
Got it understood Alright, and then just looking at the performance of the Potteries you guys announced.
Today it looks like.
It looks like the mix is a little bit different between colony in Charlotte at least between the.
The beverage and the gameplay.
Little bit different here. So can you talk a little bit about that do you expect.
Charlotte to pick up more on gameplay and lose a little bit more on the beverage or how do we think about that going forward.
Yeah, it's interesting when we initially opened the colony and keep in mind. The colony is a couple of months ahead of Charlotte. So the colony opened in September were Charlotte opened in mid December when we initially opened the colony. We saw similar results as what Youre seeing on page nine for Charlotte and so right.
Now.
46% gameplay, and Charlotte I would expect that number to them to be closer to 50% of the beverage sales. Similarly to what we're seeing in the colony. So while I don't expect it to go down what we're finding is that many people come in especially when we first opened they want to play they play a couple of <unk>.
Courses and then when they come back they might play, but they might come in for a happy hour or to just have a couple of drinks, we're especially seeing that in the Charlotte market just due to its location.
It's a great location the colony is as well.
The Charlotte the Charlotte location is kind of right in the middle of a very walkable.
Area of other bars and other.
Are there kind of entertainment and then yes. So I think that that is kind of what I attribute it to especially in the early days.
Yeah.
Great and then just lastly on my end before I pass it along.
Obviously, it looks like the colony is doing.
Double is percentage wise on the events business I suspect the events business as some of the most profitable business that you guys have is that just a function of the.
Colony being open for the fourth quarter, and Charlotte really getting very a small amount on the fourth quarter, maybe a couple of weeks or or is there something more to that going forward have you guys really not engaged much on Charlotte yeah on events, just trying to understand the mix there.
Yeah, it's interesting when we open the colony, we have the advantage of opening in September . So we still have a lot of guests that were planning their holiday parties and their corporate functions et cetera, and we were able to secure many of those parties and new year's parties et cetera, with Charlotte opening.
<unk> and mid December it was a bit too close and we got some of that business, but I don't think we were fully able to kind of capitalize on the full.
The full month of December as we might have been able to if we had opened earlier. So I do expect the event revenue in Charlotte to continue to increase and to you and to normalize.
Don't expect it to be too different from from the colony, though Charlie does have two less courses and the colony does.
And so we'll have to see what that what that ends up doing to the event business, though we have so much space in the Charlotte venue for seating and for other things we have pre.
Pre sold a number of events. So I really again, Peter I would attribute it to the December and the numbers that you're seeing right now and just the lack of ability to to be able to really go. After all of this holiday parties and Charlotte like we were able to in the colony.
Understood great. Thank you very much I'll pass it along.
Well, we will take our next question from Alex Furman with Craig Hallum Capital Group. Your line is now open.
Great. Thank you very much for taking my question.
If I could ask a little bit about the traditional drive shack units it sounds like they're starting to get back to pre COVID-19 levels at least on the walk in business. We never got to see all four drive shack opened for a full year before COVID-19 and I imagine the mix of the business might look a little bit different in the post COVID-19 world or are you start.
To get a sense of what those units could look like at maturity or is it maybe too soon to tell.
Hey, Alex Yeah. Thanks for the question I am.
You bring up a good point and we opened the majority of these venues except for Orlando at the tail end of 2019 before the pandemic hit.
What I am starting to see now and what we've seen as a team as it and these the venues are currently hitting what we would expect them to hit on a run rate basis, the venue mix might be or the sales mix between events and walk in might be a little bit more skewed than we think but we think that there's only upside from here. So again withdraw.
Shack venues in 'twenty, one doing about 8 million and event sales and then $33 5 million in walk in I might say that I would expect some of that work and to give way to event revenue, meaning maybe a little less on the walk in business and more on the event business. What we did see was.
People would still come out to us they just might not planning event. They might just walk in instead of planning a big event.
So we're definitely keeping our eye on that and kind of quantifying it as this year progresses in 2022, because I think that were.
We're seeing it normalize in a big way.
Okay. That's helpful. Thank you.
And then on the on the pottery side of things.
Sounds like there's a bunch of new location coming this year, mostly in the back half of the year can you give us a sense of how large these locations are going to be are there are any of them going to be as big as your first location in the colony.
Just curious you know where where you kind of settled on.
These are mostly going to feature three courses or any color there would be helpful.
Yeah, and so for the most part most of our venues will feature either two or three courses.
What we really learned with the colony is that we don't always need four courses.
We might be able to convert some of one of those courses into seating so that we could sell more events and get greater event revenue or having additional bar.
Depending on the market.
And.
So for the majority of these that we've announced D C Houston, Chicago, Philly Miami in Pittsburgh, as well as Kansas City will feature either two or three courses.
Meat packing in New York City will be our largest been year to date, but that does not necessarily mean, we will have more courses and meat packing.
We have been modeling not several different ways and expect to be able to release. Some further information about that coming in the coming weeks.
Of course revenue does not always does.
It does not especially in the meat packing district, we were kind of trying to save some space for event revenue and for spaces that people could come in and host events.
Okay. That's really helpful. Thank you very much.
Thank you.
Yeah.
We will take our next question from Eddie Riley with E. F. Hutton Your line is now open.
Hey, guys. Thanks for taking my question I was curious how the uptick in Covid cases.
During December might have affected.
The operating results at the college do you see any thoughts there in terms of traffic.
No we did and I think.
Yeah, we were watching it really closely and I think everyone was watching it closely but no we didn't see any FX and and the colony, specifically and I would say is in the Charlotte was only open for a partial month in December I did not see anything there either I was frankly more worried about Charlotte than I was the COO.
Colony Tech.
Texas has been a little bit more relaxed and their protocols for COVID-19 than North Carolina has historically been so no we didnt surprisingly and gratefully, we didn't really see the effects in either location.
Gotcha Gotcha and could you just comment on traffic numbers.
Within within January and February for for two locations with two locations.
Yeah, and we haven't historically, given any kind of like guest visit numbers.
We are going we will be releasing those in the in the coming months as we get better data.
I think what we have spent a great deal of time on this last quarter is actually collecting guest data in a more streamlined format. So that we're able to answer questions like the guest traffic repeat visits and.
And other general guest demographics that become really important like the ages of our guests.
The income of our guests et cetera, so that we can continue to refine and and worked through our real estate strategy.
Gotcha, Yeah, that'd be really helpful going forward.
On food and beverage gross margins could you give us some detail on what's driving the continued strong results there and is this sustainable going forward.
Yeah.
Yes.
Yes, certainly I think.
From our standpoint, as we expand the product that we are seeing food and beverage gross margins grow.
And I believe it is sustainable as <unk> seen the success of the <unk>.
With a strong and both colony in Charlotte and I think as we expand those batteries across.
New venues Youll see that F&B margin rollout and become a larger percentage of our overall revenue for the entertainment golf side and they will continue to produce solid results.
Eddie I would just add.
For the pedigree, specifically alcohol margins are typically pretty high and as you can see on page nine and the majority of how where food and beverage mix is in alcohol.
So you know about over 80% are just around 80% of our total F&B revenue comes from alcohol, which definitely helps those margins.
On the drive shack side and I'm not sure. If you were asking about drive shack or puttering, specifically, but on the drive shack side, and we have gone to a bit of a reduced menu, we're rolling out a new menu in in.
In April where we can take some price there as well so that we can combat this inflation and continue to generate really great results.
Gotcha. Thanks.
And then last one for me.
Really big picture question here I know the strategic focus right now is on opening pottery venues.
Bye bye.
510 years down the road.
These entertainment venues really seem to be picking up steam.
You think you might be able to go into other types of these unused golf simulation or other types of concepts there any opportunity there that you guys have talked about.
Yeah definitely.
You know we we are.
Very hyper focused right now on what's in front of us and making sure that we execute on the goals that we've set forward, especially as it relates to pottery and continuing to grow revenue in our existing locations.
Excuse me on both the traditional golf side as well as the entertainment golf side, but.
But you know the the Sky's the limit for us as he said these entertainment venues are really gaining steam and there's a lot of possibility in the space.
So there's definitely a possibility that we see longer term.
Years down the road for for either acquiring other entertainment concepts are creating our own.
But again at this moment in time and in the foreseeable future, we're really focused on delivering results for.
For pottery and getting these venues developed as promised.
Got it thanks, guys and congrats on a great quarter. Thanks Eddie.
We have no further questions in the queue at this time I will turn the program back over to Kelly popcorn for any additional or closing remarks.
Thanks, Britney and thanks again, everyone for joining us. This morning, we do look forward to speaking with you next quarter and as always feel free to reach out anytime before then if you have any other follow ups and have a great rest of your day. Thanks.
This does conclude today's program. Thank you for your participation you may disconnect at anytime and have a <unk>.
Wonderful day.
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