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

Good morning, and welcome to Drive Shack's 2021 Annual Meeting of Shareholders. I will now turn the meeting over to Kelley Buchhorn, Drive Shack's Head of Investor Relations.

Thank you, Patrice. It is now 10:30 a.m. Central Time on Tuesday, June 1, 2021. I now call this meeting to order. I'm joined today by Hana Khouri, our CEO and President; Mike Nichols, our CFO; and Nick Foley, our General Counsel. In a moment, Nick will walk us through the 3 matters of business at this meeting. We welcome stockholders to submit questions during this time. To do so, please type your question into the box at the bottom of your virtual meeting screen. When you do so, you will be asked to provide your control number. If you do not have your control number at hand or for questions that lend themselves to a one-on-one discussion, I will contact you after the meeting to address. You're also invited to reach out to us through our Investor Relations e-mail address via [email protected] with additional questions. I will now invite Nick to walk through the proposals submitted for approval at this meeting.

Thank you, Kelley, and nice to join you all today. In a minute, we will get to the official business of the meeting, which is the election of our Class II Directors, a shareholder vote on the compensation for our named executive officers and the ratification of our auditor. First, let me cover 3 important administrative items related there too. So first, Tracy [indiscernible] is here representing Broadridge. She's going to serve as the inspector of elections for the meeting. Second, and Tracy has confirmed this, the mailing of our proxy materials commenced on April 30, 2021, to shareholders of record on April 12, 2021. And third, 69% of the voting power of the Drive Shack common shares were represented via those proxy mailings and therefore, by proxy at this meeting. So because of that percentage a quorum is present and official business can be conducted under our charter and bylaws. So as I mentioned before, the official business today is for shareholders to vote on 3 proposals. The first of the proposal is to elect Hana Khouri and Stuart McFarland to our Board. The second proposal is that shareholders provide a nonbinding advisory vote on the compensation of our named executive officers. And finally, our third proposal is the ratification of the appointment of our independent registered public accounting firm, Ernst & Young, for the 2021 fiscal year. Those are the 3 votes. And let me just briefly explain to the shareholders that have joined us how to vote today. Any shareholder can vote by clicking on the button on your screen titled Vote Here as long as you have your control number with you. For our shareholder that has not yet submitted a proxy card and wishes to vote on these items, that is the button to click. And for a shareholder who wishes to revoke a proxy card that you've previously signed, you would also click that button. So let's just get started here. We'll take about a minute to vote, and I'll provide a notification once 30 seconds has passed. So starting now, please click the Vote Here button on your screen. And I'll now pause to a late vote to occur. [Voting]

Okay. Voting is now closed, and that will mark the end of the voting for our 2021 proxy season. Let's quickly get to the results, and it comes as no surprise, and I'm pleased to announce that all 3 of our proposals have been approved. Stuart was elected with approximately 82% of the vote. Hana with practically all ever 99% and both, stay on pay and the appointment of Ernst & Young around 98%. We will issue an 8-K with the precise numbers later tonight or before the market opened tomorrow. Thank you again for your participation. Just quickly now and that sort of concludes the shareholder portion of the meeting. Hana and Mike did join us, and we're still in the midst of our second quarter. So we'll, of course, wait until quarterly earnings for our regular business update. But if there are relevant questions, Hana and Mike will address them in just a moment with the caveat that there are, of course, certain financial and business matters that we'll speak to on our Q2 earnings call. As Kelley mentioned, she will follow-up with you directly afterward. If you submit a question that's either not related to the business at hand or within the realm of questions then Hana or Mike would address in between our quarterly results period and regular limitations associated with that. So I'm going to now look over to Kelley to see if there's anything that merits discussion today. And if not, we will move to our conclusion. Kelley?

Thanks, Nick. It does look like we do have just one question today from one shareholder. And that is, is the company paying attention to the demographics of states where the population growth is and possibly establishing future projects in these states. So I'll pass it over to Hana.

Yes, thanks for the question. We work with a national broker that provides us in-depth analytics and research on each area that we're interested in before we ever commence development in that space. This data then has to align with our robust demographic requirements that we have internally before we move forward. It's definitely something that we actively look at and we'll continue to look at.

Yes. Okay. So with that, that does look like all the questions. So I'm going to go ahead and pass it over to Hana just for some closing remarks for today's meeting.

Thank you all again for participating in today's meeting. We're looking forward to speaking with you. And again, when we release Q2 earnings. As Nick mentioned, we are in between quarterly periods, but the company is working hard on the matters that we discussed with you in May, including the debut of our first Puttery this summer in the Colony that's just outside of Dallas as well as several other new locations. We look forward to speaking with you again after our next earnings call. Thank you so much, and have a great week.

Thank you for attending today's meeting. You may now disconnect.