Golf Entertainment Group Inc. (GLFE) Earnings Call Transcript & Summary

Good morning, and welcome to Drive Shack's Annual Meeting of Shareholders. I would now like to turn the conference over to Kelley Buchhorn, Head of Investor Relations.

Thank you, and good morning. It is my pleasure to welcome you to our 2020 Annual Meeting of Shareholders. I'm joined today by Hana Khouri, our CEO and President, who will preside over this meeting; our CFO, Michael Nichols; and our General Counsel, Nick Foley. It is 9:00 a.m. Eastern Standard Time on Monday, December 14, 2020, and I now call this meeting to order. On behalf of our directors, officers and employees, I want to thank you for joining us at our first virtual annual meeting of shareholders. We hope this form will allow us to increase shareholder participation. Stockholders will be able to vote and present questions during this meeting through the virtual meeting website. Following the official items of business, we will answer questions submitted on the website. If you have logged into the meeting with your control member, you may ask a question by typing it into the box at the bottom of the screen any time during this meeting. If you do not have your control number, you will not be able to vote, ask questions or access the list of stockholders as of the close of business on the record date. Questions pertinent to meeting matters will be answered after we conclude the business of the meeting and subject to time constraints. Questions not pertinent to meeting matters will not be answered. Similar or relating questions will be grouped together and answered once. In addition, we request that you keep your questions as brief as possible, and please include your name and affiliation, if any, and whether you are a stockholder or a proxy holder. And so now, Nick Foley will go through the business agenda.

Thank you, Kelly. I would also like to welcome Tracy Oats, who represents Broadridge and is the Inspector of Elections for this meeting. So let's turn our attention to today's business. I have an Affidavit from Broadridge that the mailing of our annual report, proxy statement and proxy card commenced on November 6, 2020, to shareholders of record on October 30, 2020. 75% of the voting power of those shares is represented at this meeting by proxy. A quorum, therefore, is present, and I now declare this meeting open for official business. So we have 3 proposals before us today as presented in the proxy statement. The first is the election of directors. One Director has been nominated and named in the proxy statement for election to a 1 year term, expiring at the 2023 annual meeting. And that's Wes Edens, our Chairman. The second proposal is to provide shareholders with an advisory vote on the compensation of our named executive officers as disclosed in the proxy. And this advisory vote is not binding on the company's Board of Directors. However, the Board will take it into account when determining future executive compensation or interments. And lastly, we have the ratification of the appointment of our independent registered public accounting firm, E&Y LLP, for fiscal 2020. So I'll now turn our attention to the voting of shares. If you have not yet submitted a proxy card and wish to vote on these items, or wish to revoke a proxy card you have previously signed, you may vote your shares now by clicking on the Vote Here button on your screen. You will need the control number provided in your proxy in order to vote your shares online. We will now pause 10 to 15 seconds to allow shareholders to vote. The polls are now officially closed. I would like to announce the preliminary results of the voting. We have been informed by the Inspector of Elections that the preliminary vote report shows that Wes has been reelected to the Board of Directors, that the advisory vote on the compensation of our named executive officers, as described in our proxy, has passed, and that the proposal to ratify the appointment of E&Y has been approved. There being no other business to attend to, I declare the business portion of the 2020 Annual Meeting concluded. Hana Khouri, our CEO, will now lead the question-and-answer period.

Thanks, Nick. At this point, we'd be happy to take your questions. We will be prioritizing questions that relate to proposals considered at this meeting. If you have general questions about Drive Shack, please be sure to include your contact information so we can respond directly to you after the meeting. We will now pause to allow questions to be submitted. So our first question is from an individual. And the question is, could Drive Shack ever get into the gaming business, especially as it is with -- involved with sports. The answer to that is actually, yes. Being a golf entertainment facility, we have -- we're positioned in a way that gives us an opportunity to look further into sports, specifically the e-sports arena. Because we are a technology-driven company, that would be a natural -- a natural kind of thing for us to get into. That said, we do constantly look at ways to improve upon our technology and our gaming experience by making them more engaging. We've launched a couple of tournament-style events like the Drive Shack Open, and we expect to do more tournament-style, technology-related sporting events in the future. So the second question, which city will get The Puttery first. We've discussed this at length. First Puttery will be in Dallas, Texas, actually in the colony in the Grandscape development. And the second Puttery followed closely thereafter will be in Charlotte, North Carolina. Those are the 2 that we've announced at this point. So thank you for your questions. If at any time, you have a question about Drive Shack that you wish to discuss, please reach out to Kelley or our IR website. So I'd like to conclude by thanking everyone again for participating in today's meeting, and for your continued support of Drive Shack. The meeting is now adjourned.

This now concludes the meeting. Thank you for joining, and have a pleasant day.