Drive Shack (Drive Shack) Free Cash Flow

: $-28.7 Mil (TTM As of Sep. 2023)

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Drive Shack's total free cash flow for the months ended in Sep. 2023 was $-14.6 Mil. Its total free cash flow for the trailing twelve months (TTM) ended in Sep. 2023 was $-28.7 Mil.

Drive Shack's Free Cash Flow per Share for the months ended in Sep. 2023 was $-0.15. Its free cash flow per share for the trailing twelve months (TTM) ended in Sep. 2023 was $-0.31.

During the past 3 years, the average Free Cash Flow per Share Growth Rate was 33.90% per year. During the past 5 years, the average Free Cash Flow per Share Growth Rate was 19.50% per year. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Free Cash Flow Growth Rate using Free Cash Flow per Share data.

During the past 13 years, Drive Shack's highest 3-Year average Free Cash Flow per Share Growth Rate was 69.20% per year. The lowest was -219.80% per year. And the median was 10.00% per year.

Drive Shack Free Cash Flow Historical Data

The historical data trend for Drive Shack's Free Cash Flow can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Drive Shack Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Free Cash Flow

-69.56

-103.01

-12.00

-32.33

-41.00

Drive Shack Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Free Cash Flow																-24.36	-1.94	-8.52	-3.60	-14.63

Drive Shack Free Cash Flow Calculation

Free Cash Flow is considered one of the most important parameters to measure a company's earnings power by value investors because it is not subject to estimates of Depreciation, Depletion and Amortization (DDA). However, when we look at the Free Cash Flow, we should look from a long term perspective, because any year's Free Cash Flow can be drastically affected by the spending on Property, Plant, & Equipment (PPE) of the business in that year. Over the long term, Free Cash Flow should give pretty good picture on the real earnings power of the company.

Drive Shack's Free Cash Flow for the fiscal year that ended in Dec. 2022 is calculated as

Free Cash Flow (A: Dec. 2022 )	=	Cash Flow from Operations	+	Capital Expenditure
	=	15.446	+	-56.448
	=	-41.0

Drive Shack's Free Cash Flow for the quarter that ended in Sep. 2023 is calculated as

Free Cash Flow (Q: Sep. 2023 )	=	Cash Flow from Operations	+	Capital Expenditure
	=	-3.298	+	-11.336
	=	-14.6

Free Cash Flow for the trailing twelve months (TTM) ended in Sep. 2023 adds up the quarterly data reported by the company within the most recent 12 months, which was $-28.7 Mil.

Drive Shack (OTCPK:DSHK) Free Cash Flow Explanation

Free Cash Flow is very close to Warren Buffett's definition of Owner's Earnings, except that in Warren Buffett's Owner's Earnings, the spending for Property, Plant, and Equipment is only for maintenance (replacement), while in the Free Cash Flow calculation, the cost of new Property, Plant, and Equipment due to business expansion is also deducted. There, Free Cash Flow is more conservative than Owner's Earnings.

In Don Yacktman's calculation of forward rate of return, he uses Free Cash Flow for the calculation. Yacktman explained the forward rate of return concept in detail in his interview with GuruFocus. Yacktman defines forward rate of return as the normalized free cash flow yield plus real growth plus inflation.

This is what Yacktman said in his March 2012 interview - when the S&P 500 was at 1400:

If the business is stable, this calculation is fairly straightforward. For instance, on the S&P 500 we would normalize earnings. We would then calculate what percentage of those earnings are not reinvested in the underlying businesses and are therefore free. Historically, for the S&P 500, this has been just under 50% of earnings. Currently, we expect the S&P to earn about 70 on a normalized basis, a number which is far below reported earnings due to our adjusting for record high profit margins. $70 X ½ / 1400 gives you a normalized free cash flow yield of approximately 2.5%.

The historical real growth rate of the S&P 500 (companies) is about 1.5%. Assuming an inflation rate of 2.5%, the forward rate of return on an investment in the S&P 500 is about 6.5% today (2.5% free cash flow yield plus 1.5% real growth plus 2.5% inflation).

For the growth part of the Forward Rate of Return calculation, GuruFocus uses the 5-year average growth rate of EBITDA per share as the growth rate, and the growth rate is always capped at 20%. For the Free Cash Flow we use per share data averaged over seven years. The reason we use seven years is because research shows that seven years is the length of the typical business cycle.

Therefore, as of Sep23, Drive Shack's Forward Rate of Return (Yacktman) % is

Forward Rate of Return (Yacktman) % (Sep23)	=	Normalized Free Cash Flow	/	Price	+	5-Year EBITDA Growth Rate
	=	0.15619048	/	0.2628	+	-0.5533
	=	4.10 %

Be Aware

Free Cash Flow within a report period can be affected by management's decisions of capital spending. Therefore, it is important to look at long term when it comes to Free Cash Flow.

Drive Shack Free Cash Flow Related Terms

Thank you for viewing the detailed overview of Drive Shack's Free Cash Flow provided by GuruFocus.com. Please click on the following links to see related term pages.

Drive Shack (Drive Shack) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Drive Shack Inc (OTCPK:DSHK) » Definitions » Free Cash Flow

Comparable Companies

Traded in Other Exchanges

DSHKN.PFD:USA DSHKO.PFD:USA DSHKP.PFD:USA

Address

10670 N. Central Expressway, Suite 700, Dallas, TX, USA, 75231

Website

https://www.driveshack.com

Drive Shack Inc is an owner and operator of golf-related leisure and entertainment businesses. The company conducts its business through three primary segments: Traditional Golf properties, Entertainment Golf venues, and corporate. The Traditional Golf properties segment operates and owns golf properties. The Entertainment Golf venues segment plans to open a chain of gold, competition, dining, and fun. The Corporate segment consists primarily of investments in loans and securities. The majority of the firm's revenue gets derived from the Traditional Golf Properties segment.

Executives

Wesley R Edens	director	1345 AVENUE OF THE AMERICAS, 45TH FLOOR, NEW YORK NY 10105
Hana Khouri	officer: President	218 WEST 18TH STREET, 3RD FLOOR, NEW YORK NY 10011
Stuart A Mcfarland	director	C/O FORTRESS INVESTMENT GROUP, 1345 AVE OF THE AMERICAS 46TH FL, NEW YORK NY 10105
Goodfield Lawrence A. Jr.	officer: CFO, CAO & Treasurer	1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Michael Lee Nichols	officer: Chief Financial Officer	C/O DRIVE SHACK INC., 218 W. 18TH STREET, 3RD FLOOR, NEW YORK NY 10011
Acacia Research Corp	director	767 3RD AVENUE, 6TH FLOOR, NEW YORK NY 10017
Virgis Colbert	director	5725 DELPHI DRIVE, TROY MI 48098
Benjamin M Crane	director	218 WEST 18TH STREET 3RD FLOOR, NEW YORK NY 10011
Clifford Press	director	152 WEST 57TH STREET, NEW YORK NY 10019
David Hammarley	officer: Chief Financial Officer	111 WEST 19TH STREET, 8TH FLOOR, NEW YORK NY 10011
Kenneth A May	director, officer: CEO & President	13155 NOEL ROAD, SUITE 1600, THREE GALLERIA TOWER, DALLAS TX 75240
William J Clifford	director	845 BERKSHIRE BLVD. SUITE 200, WYOMISSING PA 19610
Alan L. Tyson	director	1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Sara A. Yakin	officer: Chief Operating Officer	1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105
Sarah Watterson	officer: CEO & President	1345 AVENUE OF THE AMERICAS, NEW YORK NY 10105