Exhibit 99.1
 
          

Investor Relations
516-268-7460

DRIVE SHACK INC. ANNOUNCES SECOND QUARTER 2018 RESULTS AND DECLARES THIRD QUARTER 2018 PREFERRED STOCK DIVIDENDS

NEW YORK—(BUSINESS WIRE) — August 3, 2018 — Drive Shack Inc. (NYSE: DS; the “Company”) today reported the following information for the second quarter ended June 30, 2018.

BUSINESS HIGHLIGHTS
§
Drive Shack – The Company opened its first venue in Orlando, Florida, in April 2018.
o
The Company has announced five additional venues to date, which are in various stages of development, and are expected to open throughout 2019 and early 2020.
§
American Golf – As of June 30, 2018, the Company owned, leased or managed 74 golf properties across 12 states. These courses are located predominately in high-volume, top-tier cities across the U.S.
o
The Company is monetizing its 26 owned properties. As of the date of this release, 1 property was sold and 15 properties were under contract or had a letter of intent for purchase. The remaining properties are being actively marketed and the Company aims to achieve all sales by early 2019.
o
The Company entered the year aiming to terminate or restructure 14 of its lease agreements. During the first six months of the year, 2 properties have been terminated or converted to management agreements. The Company continues to pursue the remaining 12 agreements.

SECOND QUARTER 2018 FINANCIAL RESULTS
§
GAAP Loss of $6 million, or $0.09 per share, for the three months ended June 30, 2018, compared to a loss of $6 million, or $0.09 per share, in the prior year corresponding period.
§
GAAP Loss of $24 million, or $0.36 per share, for the six months ended June 30, 2018, compared to a loss of $20 million, or $0.31 per share, in the prior year corresponding period.
o
Year-over-year decrease is primarily due to lower interest income because of the repayment of the resorts-related loan and sale of agency securities, partially offset by stronger year-over-year performance in the traditional golf business.
 
   
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
   
2018
    
2017
    
2018
    
2017
  
GAAP Loss
  
$
  (6) million    
$
  (6) million    
$
 (24) million     
$
  (20) million  
GAAP Loss per WA Basic Share
  
$
(0.09
)
  
$
(0.09
)
  
$
(0.36
)
  
$
(0.31
)

WA:  Weighted Average

THIRD QUARTER 2018 PREFERRED STOCK DIVIDENDS

Drive Shack Inc.’s Board of Directors declared dividends on the Company's preferred stock for the period beginning August 1, 2018 and ending October 31, 2018. The dividends are payable on October 31, 2018 to holders of record of preferred stock on October 1, 2018. The Company will pay dividends of $0.609375, $0.503125 and $0.523438 per share on the 9.750% Series B, 8.050% Series C and 8.375% Series D preferred stock, respectively.

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ADDITIONAL INFORMATION
For additional information that management believes to be useful for investors, please refer to the presentation posted on the Investor Relations section of the Company’s website, http://ir.driveshack.com. For consolidated information, please refer to the Company’s most recent Quarterly Report on Form 10-Q or Annual Report on Form 10-K, which are available on the Company’s website, http://ir.driveshack.com.

EARNINGS CONFERENCE CALL
The Company’s management will host a conference call on Friday, August 3, 2018 at 9:00 A.M. Eastern Time. A copy of the earnings release will be posted to the Investor Relations section of Drive Shack Inc.’s website, http://ir.driveshack.com.

All interested parties are welcome to participate on the live call. The conference call may be accessed by dialing 1-866-913-6930 (from within the U.S.) or 1-409-983-9881 (from outside of the U.S.) ten minutes prior to the scheduled start of the call; please reference conference ID “7369948.”

A simultaneous webcast of the conference call will be available to the public on a listen-only basis at http://ir.driveshack.com. Please allow extra time prior to the call to visit the website and download any necessary software required to listen to the internet broadcast.

A telephonic replay of the conference call will also be available two hours following the call’s completion through 11:30 P.M. Eastern Time on Friday, August 17, 2018 by dialing 1-800-585-8367 (from within the U.S.) or 1-404-537-3406 (from outside of the U.S.); please reference conference ID “7369948.”

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Consolidated Statements of Operations (Unaudited)
($ in thousands, except share data)

   
Three Months Ended
June 30,
    
Six Months Ended
June 30,
  
   
2018
    
2017
    
2018
    
2017
  
Revenues
                        
Golf operations
  
$
69,150
    
$
60,639
    
$
122,704
    
$
106,935
  
Sales of food and beverages
    
21,854
      
20,721
      
34,960
      
33,566
  
Total revenues
    
91,004
      
81,360
      
157,664
      
140,501
  
Operating costs
                                
Operating expenses
    
67,042
      
62,028
      
124,421
      
112,537
  
Cost of sales - food and beverages
    
6,193
      
6,009
      
10,233
      
10,041
  
General and administrative expense
    
10,268
      
7,058
      
19,462
      
14,545
  
Management fee to affiliate
    
—
      
2,677
      
—
      
5,354
  
Depreciation and amortization
    
4,315
      
5,972
      
9,863
      
11,765
  
Pre-opening costs
    
247
      
50
      
1,803
      
50
  
Impairment
    
—
      
32
      
1,473
      
32
  
Realized and unrealized (gain) loss on investments
    
(89
)
    
3,287
      
(331
)
    
6,676
  
Total operating costs
    
87,976
      
87,113
      
166,924
      
161,000
  
Operating income (loss)
    
3,028
      
(5,753
)
    
(9,260
)
    
(20,499
)
Other income (expenses)
                                
Interest and investment income
    
469
      
6,395
      
915
      
14,283
  
Interest expense, net
    
(4,601
)
    
(5,131
)
    
(8,650
)
    
(10,565
)
Other (loss) income, net
    
(3,699
)
    
293
      
(4,105
)
    
170
  
Total other income (expenses)
    
(7,831
)
    
1,557
      
(11,840
)
    
3,888
  
Loss before income tax
    
(4,803
)
    
(4,196
)
    
(21,100
)
    
(16,611
)
Income tax expense
    
—
      
510
      
—
      
1,049
  
Net Loss
    
(4,803
)
    
(4,706
)
    
(21,100
)
    
(17,660
)
Preferred dividends
    
(1,395
)
    
(1,395
)
    
(2,790
)
    
(2,790
)
Loss Applicable to Common Stockholders
  
$
(6,198
)
  
$
(6,101
)
  
$
(23,890
)
  
$
(20,450
)
                                 
Loss Applicable to Common Stock, per share
                                
Basic
  
$
(0.09
)
  
$
(0.09
)
  
$
(0.36
)
  
$
(0.31
)
Diluted
  
$
(0.09
)
  
$
(0.09
)
  
$
(0.36
)
  
$
(0.31
)
Weighted Average Number of Shares of Common Stock Outstanding
                                
Basic
    
66,977,104
      
66,874,155
      
66,977,104
      
66,858,155
  
Diluted
    
66,977,104
      
66,874,155
      
66,977,104
      
66,858,155
  

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Consolidated Balance Sheets
($ in thousands, except share data)

   
June 30, 2018
        
   
(Unaudited)
    
December 31, 2017
  
Assets
            
Current Assets
            
Cash and cash equivalents
  
$
125,659
    
$
167,692
  
Restricted cash
    
3,859
      
5,178
  
Accounts receivable, net
    
9,877
      
8,780
  
Real estate assets, held-for-sale
    
165,261
      
2,000
  
Real estate securities, available-for-sale
    
2,425
      
2,294
  
Other current assets
    
25,171
      
21,568
  
Total Current Assets
    
332,252
      
207,512
  
Restricted cash, noncurrent
    
777
      
818
  
Property and equipment, net of accumulated depreciation
    
93,592
      
241,258
  
Intangibles, net of accumulated amortization
    
53,716
      
57,276
  
Other investments
    
21,901
      
21,135
  
Other assets
    
9,041
      
8,649
  
Total Assets
  
$
511,279
    
$
536,648
  
                 
Liabilities and Equity
                
Current Liabilities
                
Obligations under capital leases
  
$
5,158
    
$
4,652
  
Membership deposit liabilities
    
8,972
      
8,733
  
Accounts payable and accrued expenses
    
44,506
      
36,797
  
Deferred revenue
    
10,614
      
31,207
  
Real estate liabilities, held-for-sale
    
9,651
      
—
  
Other current liabilities
    
15,145
      
22,596
  
Total Current Liabilities
    
94,046
      
103,985
  
Credit facilities and obligations under capital leases
    
112,268
      
112,105
  
Junior subordinated notes payable
    
51,204
      
51,208
  
Membership deposit liabilities, noncurrent
    
87,832
      
86,523
  
Deferred revenue, noncurrent
    
7,608
      
6,930
  
Other liabilities
    
5,480
      
4,846
  
Total Liabilities
  
$
358,438
    
$
365,597
  
                 
Commitments and contingencies
                
                 
Equity
                
Preferred stock, $0.01 par value, 100,000,000 shares authorized, 1,347,321 shares of 9.75% Series B Cumulative Redeemable Preferred Stock, 496,000 shares of 8.05% Series C Cumulative Redeemable Preferred Stock, and 620,000 shares of 8.375% Series D Cumulative Redeemable Preferred Stock, liquidation preference $25.00 per share, issued and outstanding as of June 30, 2018 and December 31, 2017
  
$
61,583
    
$
61,583
  
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 66,977,104 and 66,977,104 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively
    
670
      
670
  
Additional paid-in capital
    
3,174,089
      
3,173,281
  
Accumulated deficit
    
(3,084,934
)
    
(3,065,853
)
Accumulated other comprehensive income
    
1,433
      
1,370
  
Total Equity
  
$
152,841
    
$
171,051
  
                 
Total Liabilities and Equity
  
$
511,279
    
$
536,648
  

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ABOUT DRIVE SHACK INC.
Drive Shack Inc. is a leading owner and operator of golf-related leisure and entertainment businesses.

FORWARD-LOOKING STATEMENTS
Certain items in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding the timing and frequency of opening new Drive Shack venues, the Company’s ability to consummate the sales of its owned golf courses and the Company’s ability to terminate or restructure its lease agreements. These statements are based on management's current expectations and beliefs and are subject to a number of trends and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond Drive Shack’s control. The Company can give no assurance that its expectations will be attained. Accordingly, you should not place undue reliance on any forward-looking statements contained in this press release. For a discussion of some of the risks and important factors that could cause actual results to differ from such forward-looking statements, see the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s most recent Quarterly Report on Form 10-Q or Annual Report on Form 10-K.  Furthermore, new risks and uncertainties emerge from time to time, and it is not possible for the Company to predict or assess the impact of every factor that may cause its actual results to differ from those contained in any forward-looking statements. Such forward-looking statements speak only as of the date of this press release. The Company expressly disclaims any obligation to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company's expectations with regard thereto or change in events, conditions or circumstances on which any statement is based.
 
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