Exhibit 99.1

Drive Shack Inc. Announces Third Quarter 2021 Financial Results and
Preferred Stock Dividends for Fourth Quarter 2021
 
Reported Total Company Revenue of $76.4 Million for the Third Quarter 2021; Highest Quarterly Revenue Reported in Three Years
 
Reported Operating Loss of $5.9 Million and Positive Adjusted EBITDA of $3.3 Million for the Third Quarter 2021
 
Debuted First Puttery Venue in The Colony, Texas in September 2021
 
DALLAS, November 8, 2021 -- Drive Shack Inc. (the “Company”) (NYSE: DS), a leading owner and operator of golf-related leisure and entertainment businesses, today reported its financial results for the third quarter and nine months ended September 30, 2021.

“The third quarter was a historic quarter for our Company with the launch of Puttery, our new, competitive socializing and immersive entertainment experience,” said Drive Shack Inc.’s President and Chief Executive Officer Hana Khouri. “Our first Puttery venue debuted in our home market on September 3rd in The Colony, Texas, one of the most exciting entertainment districts in North Texas. Guests are responding favorably to our inaugural Puttery and the feedback on their experience remains overwhelmingly positive. I am beyond proud of the countless team members that worked hard to deliver our first venue and I thank them for their unmatched dedication and commitment to bring our Puttery brand and vision to life. We look forward to opening additional Puttery venues in the coming months, including our Charlotte location which is planned to open later this quarter.”

Khouri continued, “We delivered strong results for the third quarter, including the highest quarterly revenue in three years and our fifth consecutive quarter of positive adjusted EBITDA. Our American Golf and Drive Shack businesses have largely returned to pre-COVID levels, and our events business continues to meaningfully increase as we near the important, key holiday months. 2021 has been an instrumental year and we remain centered on our strategic priorities to drive growth and profitability this year and beyond.”

Third Quarter 2021 Financial Highlights
Total revenue for the third quarter this year was $76.4 million compared to $66.5 million in the same period last year. The Company’s traditional golf business, American Golf, generated total revenue of $65.1 million in the third quarter 2021, which included $14.7 million of managed course expense reimbursements, compared to $60.3 million in the third quarter 2020, which included $15.2 million of managed course expense reimbursements. The increase to last year’s third quarter was largely due to higher event revenue and green and cart fee revenue this year.

The Company’s entertainment golf business, comprised of both Drive Shack and Puttery venues, generated total revenue of $11.3 million in the third quarter 2021, an increase of $5.1 million compared to $6.2 million in the third quarter 2020. The increase to last year’s third quarter was primarily due to strict COVID-19 local mandates that remained in effect on large group gatherings last year, which impacted both walk-in and event revenue in the prior year’s quarter. Additionally, the Company debuted its first Puttery entertainment golf venue in September 2021, which generated total revenue of $0.8 million this year.

Operating loss for the third quarter 2021 was ($5.9) million, an improvement of $0.1 million versus an operating loss of ($6.0) million in the third quarter 2020. The Company incurred significantly higher pre-opening costs in the third quarter this year compared to the same period last year due to increased costs associated with its new Puttery venues incurred this year. Additionally, the Company’s operating expenses this year are more normalized, including G&A expenses, given it is beyond the peak COVID-19 impacts during the same period last year when its operating expenses were below historic levels. Adjusted EBITDA was $3.0 million in the third quarter this year, relatively flat versus the same period last year.

As of September 30, 2021, the Company had cash and cash equivalents of $63.9 million compared to $47.8 million as of December 31, 2020.

Summary Financial Results
Three and Nine Months Ended September 30, 2021 compared to the Three and Nine Months Ended September 30, 2020 ($ in thousands, except for per share data) (Unaudited):

   
Three Months Ended September 30,
    
Nine Months Ended September 30,
  
   
2021
    
2020
    
2021
    
2020
  
                         
Total revenues
  
$
76,366
    
$
66,465
    
$
211,337
    
$
159,700
  
Operating Loss
  
$ 
(5,921
)
  
$ 
(5,996
)
  
$ 
(12,744
)
  
$ 
(32,987
)
Net Loss
  
$ 
(8,866
)
  
$ 
(9,412
)
  
$ 
(21,739
)
  
$ 
(66,300
)
Loss applicable to common stockholders
  
$ 
(10,246
)
  
$ 
(10,807
)
  
$ 
(25,909
)
  
$ 
(70,485
)
                                 
Loss applicable to common stock, per share
                                
Basic
  
$ 
(0.11
)
  
$ 
(0.16
)
  
$ 
(0.29
)
  
$ 
(1.05
)
Diluted
  
$ 
(0.11
)
  
$ 
(0.16
)
  
$ 
(0.29
)
  
$ 
(1.05
)
Adjusted EBITDA1
  
$
3,254
    
$
3,340
    
$
13,707
    
$ 
(8,407
)

For the three months ended September 30, 2021, the Company reported an operating loss of ($5.9) million and a net loss of ($8.9) million compared to an operating loss of ($6.0) million and a net loss of ($9.4) million in the same period last year. Adjusted EBITDA was $3.3 million for third quarter 2021, relatively flat compared to Adjusted EBITDA for the third quarter 2020.1
 
For the nine months ended September 30, 2021, the Company reported an operating loss of ($12.7) million and a net loss of ($21.7) million compared to an operating loss of ($33.0) million and a net loss of ($66.3) million in the same period last year. Adjusted EBITDA was $13.7 million for the nine months ended September 30, 2021, an increase of $22.1 million compared to Adjusted EBITDA of ($8.4) million for the same period in 2020.1
 
Preferred Stock Dividends
The Board of Directors of the Company declared dividends on the Company’s preferred stock for the period beginning November 1, 2021 and ending January 31, 2022. The dividends are payable on January 31, 2022, to holders of record of preferred stock on January 1, 2022, in an amount equal to $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.

2021 Third Quarter Earnings Conference Call Details
Management will host a live conference call and webcast to discuss the Company’s 2021 third quarter results today starting at 9:00 a.m. Eastern Time. A simultaneous webcast of the conference call will be available to the public on a listen-only basis on the Company’s investor relations website at https://ir.driveshack.com, along with the supplemental slide presentation. The conference call may be accessed by dialing 1-877-876-9173 (from within the U.S.) or 1-785-424-1667 (from outside of the U.S.) ten minutes prior to the scheduled start of the call and referencing conference ID “DSQ321.”

1 Adjusted EBITDA is a non-GAAP financial measure. For definitions and reconciliations of non-GAAP results please refer to the exhibit to this press release.
A telephonic replay of the conference call will also be available approximately two hours following the conclusion of the call through end of day on Monday, November 15, 2021 and may be accessed by dialing 1-877-710-5301 (from within the U.S.) or 1-402-220-1604 (from outside of the U.S.).

Additional Information
For additional information that management believes to be useful for investors, please refer to the presentation posted on the Company’s investor relations website, https://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 investor relations website, https://ir.driveshack.com.

About Drive Shack Inc.
Drive Shack Inc. is a leading owner and operator of golf-related leisure and entertainment businesses focused on bringing people together through competitive socializing. Today, our portfolio consists of American Golf, Drive Shack and Puttery.

Forward-Looking Statements: Certain statements regarding Drive Shack Inc. (together with its subsidiaries, “Drive Shack”, “we” or “us”) in this release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these forward-looking statements by the use of forward-looking words such as “outlook,” “believes,” “expects,” “by”, “approaches”, “nearly”, “potential”, “continues”, “may”, “will”, “should”, “could”, “seeks”, “approximately”, “predicts”, “intends”, “plans”, “estimates”, “anticipates”, “target”, “goal”, “projects”, “contemplates” or the negative version of those words or other comparable words. Any forward-looking statements contained in this release, including statements regarding the expected development schedule and timing of specific milestones for our facilities, including The Puttery and Drive Shack venues, our expected and the remaining cost for our development projects (both individually and in the aggregate), the expected capabilities of our development projects once completed, our intentions to make use of capital or free cash flow and our future financial position and liquidity are based upon our limited historical performance and on our current plans, estimates and expectations in light of information (including industry data) currently available to us. The inclusion of this forward-looking information should not be regarded as a representation by the Company or any other person that the future plans, estimates or expectations contemplated by us will be achieved. These statements are subject to a number of factors that could cause actual results to differ materially from those described in the forward-looking statements, many of which are beyond our control. We can give no assurance that its expectations regarding any forward-looking statements will be attained. Accordingly, you should not place undue reliance on any forward-looking statements made in this release. Factors that could cause or contribute to such differences include, but are not limited to, the risk that our construction schedules will take longer than we expect, that our expectations about the consumer demand for our product will not prove accurate, that our operating or other costs will increase or our expected remaining costs for development projects underway increases and the effect of the COVID-19 pandemic on our business and financial results. For a discussion of some of the risks and important factors that could affect 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 Annual Report on Form 10-K and Quarterly Report on Form 10-Q. In addition, 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 release. We expressly disclaim 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.

Non-GAAP Financial Measure
Adjusted EBITDA is not a measurement of financial performance under generally accepted accounting principles in the United States ("GAAP") and should not be considered in isolation or as an alternative to GAAP financial measures.  We believe this non-GAAP financial measure, as we have defined it, provides a supplemental measure of financial performance of our current operations at our entertainment and traditional golf venues.  This measure excludes items that we believe are unrelated to the day-to-day performance of our current golf entertainment or traditional golf venues, including one-time pre-opening costs associated with new venue openings, corporate severance payments, (gain) loss on lease terminations and impairment, stock-based compensation, depreciation and amortization and other income (which does not include revenue from golf entertainment or traditional golf venues).  This non-GAAP financial measure is presented so that investors have the same type of financial data that management uses in evaluating the financial performance of the Company.

The principal limitation of this non-GAAP measure is that it excludes significant expenses and income that are required by GAAP to be recorded in our financial statements. A reconciliation is provided for the non-GAAP financial measure to our GAAP net income/(loss). Investors are encouraged to review the related GAAP financial measures and the reconciliation of the non-GAAP financial measure to our GAAP net income/(loss), and not to rely on any single financial measure to evaluate our business.

Adjusted EBITDA. We define Adjusted EBITDA as GAAP net income (loss), adjusted for income tax expenses, other income (loss), interest expenses, interest and investment income, depreciation and amortization, gain (loss) on lease terminations, impairment and other losses, pre-opening costs and certain other non-recurring items (including corporate severance payments, transactional G&A and stock-based compensation).

Investor Relations Contact
Kelley Buchhorn
Head of Investor Relations
Drive Shack Inc.
646-585-5591
ir@driveshack.com

Media Contact
Morgan Schaaf
Head of Brand Marketing and Communications
Drive Shack Inc.
469-283-2760
media@driveshack.com

DRIVE SHACK INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share data)
 
   
(unaudited)
        
   
September 30, 2021
    
December 31, 2020
  
Assets
            
Current assets
            
Cash and cash equivalents
  
$
63,867
    
$
47,786
  
Restricted cash
    
3,442
      
2,252
  
Accounts receivable, net
    
4,084
      
4,446
  
Real estate securities, available-for-sale
    
3,414
      
3,223
  
Other current assets
    
28,605
      
14,410
  
Total current assets
    
103,412
      
72,117
  
Restricted cash, noncurrent
    
709
      
795
  
Property and equipment, net of accumulated depreciation
    
174,616
      
169,425
  
Operating lease right-of-use assets
    
186,220
      
192,828
  
Intangibles, net of accumulated amortization
    
13,767
      
15,124
  
Other assets
    
5,752
      
6,765
  
Total assets
  
$
484,476
    
$
457,054
  
                 
Liabilities and Equity
                
Current liabilities
                
Obligations under finance leases
  
$
5,638
    
$
6,470
  
Membership deposit liabilities
    
17,978
      
14,692
  
Accounts payable and accrued expenses
    
33,812
      
29,596
  
Deferred revenue
    
13,086
      
23,010
  
Other current liabilities
    
20,744
      
28,217
  
Total current liabilities
    
91,258
      
101,985
  
Credit facilities and obligations under finance leases - noncurrent
    
9,997
      
12,751
  
Operating lease liabilities - noncurrent
    
174,776
      
167,837
  
Junior subordinated notes payable
    
51,177
      
51,182
  
Membership deposit liabilities, noncurrent
    
102,521
      
99,862
  
Deferred revenue, noncurrent
    
10,555
      
9,953
  
Other liabilities
    
3,377
      
3,447
  
Total liabilities
  
$
443,661
    
$
447,017
  
                 
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 September 30, 2021 and December 31, 2020
  
$
61,583
    
$
61,583
  
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 92,086,727 and 67,323,592 shares issued and outstanding at September 30, 2021 and December 31, 2020, respectively
    
921
      
673
  
Additional paid-in capital
    
3,233,866
      
3,178,704
  
Accumulated deficit
    
(3,257,835
)
    
(3,232,391
)
Accumulated other comprehensive income
    
1,254
      
1,468
  
Total equity of the company
  
$
39,789
    
$
10,037
  
Noncontrolling interest
    
1,026
      
—
  
Total equity
  
$
40,815
    
$
10,037
  
Total liabilities and equity
  
$
484,476
    
$
457,054
  

DRIVE SHACK INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
(Dollars in thousands, except share data)

 
  
Three Months Ended September 30,
    
Nine Months Ended September 30,
  
 
  
2021
    
2020
    
2021
    
2020
  
Revenues
                        
Golf operations
  
$
62,257
    
$
58,766
    
$
177,170
    
$
137,066
  
Sales of food and beverages
    
14,109
      
7,699
      
34,167
      
22,634
  
Total revenues
    
76,366
      
66,465
      
211,337
      
159,700
  
                                 
Operating costs
                                
Operating expenses
    
60,729
      
54,993
      
165,234
      
142,584
  
Cost of sales - food and beverages
    
3,696
      
2,170
      
8,951
      
6,654
  
General and administrative expense
    
9,685
      
7,916
      
25,697
      
24,102
  
Depreciation and amortization
    
5,823
      
6,853
      
17,852
      
20,329
  
Pre-opening costs
    
2,030
      
227
      
3,375
      
1,049
  
(Gain) Loss on lease terminations and impairment
    
324
      
302
      
2,972
      
(2,031
)
Total operating costs
    
82,287
      
72,461
      
224,081
      
192,687
  
Operating income (loss)
    
(5,921
)
    
(5,996
)
    
(12,744
)
    
(32,987
)
 
                                
Other income (expenses)
                                
Interest and investment income
    
190
      
135
      
502
      
400
  
Interest expense, net
    
(2,626
)
    
(2,896
)
    
(7,964
)
    
(8,232
)
Other income (loss), net
    
107
      
(157
)
    
29
      
(24,212
)
Total other income (expenses)
    
(2,329
)
    
(2,918
)
    
(7,433
)
    
(32,044
)
Loss before income tax
    
(8,250
)
    
(8,914
)
    
(20,177
)
    
(65,031
)
Income tax expense
    
616
      
498
      
1,562
      
1,269
  
Net loss
    
(8,866
)
    
(9,412
)
    
(21,739
)
    
(66,300
)
Less: net loss attributable to noncontrolling interest
    
(15
)
    
—
      
(15
)
    
—
  
Net loss attributable to the Company
    
(8,851
)
    
(9,412
)
    
(21,724
)
    
(66,300
)
Preferred dividends
    
(1,395
)
    
(1,395
)
    
(4,185
)
    
(4,185
)
Loss applicable to common stockholders
  
$
(10,246
)
  
$
(10,807
)
  
$
(25,909
)
  
$
(70,485
)
                                 
Loss applicable to common stock, per share
                                
Basic
  
$
(0.11
)
  
$
(0.16
)
  
$
(0.29
)
  
$
(1.05
)
Diluted
  
$
(0.11
)
  
$
(0.16
)
  
$
(0.29
)
  
$
(1.05
)
                                 
Weighted average number of shares of common stock outstanding
                                
Basic
    
92,085,846
      
67,212,532
      
88,938,344
      
67,131,827
  
Diluted
    
92,415,570
      
67,212,532
      
89,521,013
      
67,131,827
  

DRIVE SHACK INC. AND SUBSIDIARIES
Adjusted EBITDA Non-GAAP Reconciliation (unaudited)
(Dollars in thousands)

 
  
Three Months Ended September 30,
    
Nine Months Ended September 30,
  
 
  
2021
    
2020
    
2021
    
2020
  
Net loss
  
$ 
(8,866
)
  
$ 
(9,412
)
  
$ 
(21,737
)
  
$ 
(66,300
)
Income tax expense
    
616
      
498
      
1,562
      
1,269
  
Other income (loss)
    
(107
)
    
157
      
(29
)
    
24,212
  
Net interest expense
    
2,436
      
2,761
      
7,462
      
7,832
  
Operating loss
  
$ 
(5,921
)
  
$ 
(5,996
)
  
$ 
(12,742
)
  
$ 
(32,987
)
Depreciation and amortization
    
5,823
      
6,853
      
17,852
      
20,329
  
(Gain) loss on lease termination and impairment
    
324
      
302
      
2,972
      
(2,031
)
Pre-opening costs
    
2,030
      
227
      
3,375
      
1,049
  
Other items(1)
    
998
      
1,954
      
2,250
      
5,233
  
Adjusted EBITDA
  
$
3,254
    
$
3,340
    
$
13,707
    
$ 
(8,407
)

 
(1)
For the three months ended September 30, 2021 and 2020, other items include (i) corporate severance of $50 and $440, respectively; (ii) transactional G&A of $461 and $1,101, respectively; and (iii) employee stock-based compensation of $487 and $413, respectively.  For the nine months ended September 30, 2021 and 2020, other items include (i) corporate severance of $180 and $1,132 respectively; (ii) transactional G&A of $833 and $3,114, respectively; and (iii) employee stock-based compensation of $1,237 and $986, respectively.