Silverleaf Resorts, Inc. (NASDAQ: SVLF) today reported the
following results for its first quarter ended March 31, 2010.
Financial highlights for the quarter ended March 31, 2010:
-
Net Income of $3.1 million or diluted earnings per share of $0.08
-
Vacation Interval sales of $49.2 million
2010 First Quarter Results
Net income for the quarter ended March 31, 2010 was $3.1 million, or
diluted earnings per share of $0.08, compared to net income of $4.6
million, or diluted earnings per share of $0.12, for the quarter ended
March 31, 2009, which included an after tax business interruption
insurance recovery of $0.9 million.
Robert E. Mead, Chief Executive Officer, commented, "We are pleased with
our operating results for the first quarter of 2010 and our ability to
remain profitable and sustain adequate liquidity despite current
economic conditions. Response to our marketing programs remains strong
and we believe the outlook for the remainder of 2010 is positive."
Vacation Interval sales were $49.2 million in the first quarter of 2010
compared to $58.7 million in the comparable prior-year period. The
decrease in Vacation Interval sales is primarily attributable to the
sale of lower-priced product during the first quarter of 2010. Vacation
Interval sales to existing customers comprised 57.4% and 61.1% of total
Vacation Interval sales in the quarters ended March 31, 2010 and 2009,
respectively, which maintains the Company's favorable sales-mix trend
toward upgrades and additional interval sales to existing customers as
such sales have relatively lower associated sales and marketing costs.
The provision for estimated uncollectible revenue as a percentage of
Vacation Interval sales was 28.3% in the first quarter of 2010 versus
24.9% in the first quarter of 2009.
Overall, total revenues for the first quarter of 2010 were $54.2 million
compared to $63.2 million for the first quarter of 2009, primarily
attributable to the $8.8 million reduction in net sales.
Cost of Vacation Interval sales was 5.2% of Vacation Interval sales for
the first quarter of 2010 compared to 10.2% in the 2009 comparable
period. This decrease primarily resulted from increased sales of lower
cost-basis product during the first quarter of 2010 versus the first
quarter of 2009.
Sales and marketing expense as a percentage of Vacation Interval sales
was 55.7% for the first quarter of 2010 versus 52.4% for the comparable
prior-year period. The increase was primarily attributable to the
decrease in sales to existing customers, which have relatively lower
related sales and marketing costs compared to new customer sales.
Vacation Interval sales to existing customers comprised 57.4% and 61.1%
of total Vacation Interval sales in the first quarters of 2010 and 2009,
respectively.
Total positive net interest spread (interest income less interest
expense and lender fees) increased to $9.2 million for the first quarter
of 2010 from $8.4 million for the first quarter of 2009. Interest
expense and lender fees as a percentage of interest income remained
relatively flat at 46.0% for the first quarter of 2010 compared to 45.9%
for the same period of 2009. Overall, interest expense and lender fees
increased $731,000 for the first quarter of 2010 versus the same period
of 2009 primarily due to a larger average debt balance outstanding
during the first quarter of 2010, which was $407.6 million compared to
$392.6 million for the prior-year comparative period, partially offset
by a decrease in the weighted average cost of borrowings to 6.2% for the
first quarter of 2010 from 6.4% for the first quarter of 2009.
Balance Sheet
At March 31, 2010, senior credit facilities provided for loans of up to
$425.9 million, of which $40.2 million was unused. In February and April
2010, the Company completed the extension of three of its senior
revolving credit facilities. Considering the extension of these senior
credit facilities, forecasted sales, and limited expansion plans, the
Company's senior credit facilities provide adequate liquidity through
2010. The Company is continuing to work with certain of its lenders to
extend upcoming maturities as well as identify additional financing
arrangements. At March 31, 2010, the Company's senior debt consisted of
18% fixed-rate debt and 82% variable-rate debt. However, the majority of
the Company's variable-rate debt is subject to interest-rate floors
between 5.25% and 8.00%.
About Silverleaf Resorts
Based in Dallas, Texas, Silverleaf Resorts, Inc. currently owns and
operates timeshare resorts with a wide array of country club-like
amenities, such as golf, clubhouses, an indoor water park, swimming,
tennis, boating, and many organized activities for children and adults.
For additional information, please visit www.silverleafresorts.com.
Forward-Looking Statements
This release contains certain forward-looking statements that involve
risks and uncertainties and actual results may differ materially from
those anticipated. The Company is subject to specific risks associated
with the timeshare industry, the regulatory environment, and various
economic factors. These risks and others are more fully discussed under
the heading "Risk Factors" in the Company's reports filed with the
Securities and Exchange Commission, including the Company's 2009 Annual
Report on Form 10-K filed on March 8, 2010.
For more information or to visit the Company's website, click here: http://www.b2i.us/irpass.asp?BzID=1358&Nav=0&S=0&L=1 |
| | SILVERLEAF RESORTS, INC. | | CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |
(in thousands, except share and per share amounts)
| |
(Unaudited)
| |
|
|
| |
| |
| | | | | | |
Three Months Ended
| | | | | |
March 31,
| | | | | |
|
2010
|
| |
|
2009
|
| | Revenues: | | | | | |
Vacation Interval sales
| |
$
|
49,195
| | |
$
|
58,658
| | |
Estimated uncollectible revenue
| |
|
(13,947
|
)
| |
|
(14,606
|
)
| | |
Net sales
| | |
35,248
| | | |
44,052
| | | | | | | | |
| |
Interest income
| | |
17,063
| | | |
15,502
| | |
Management fee income
| | |
630
| | | |
930
| | |
Other income
| |
|
1,244
|
| |
|
2,679
|
| | | |
Total revenues
| | |
54,185
| | | |
63,163
| | | | | | | | |
| | Costs and Operating Expenses: | | | | | |
Cost of Vacation Interval sales
| | |
2,562
| | | |
5,980
| | |
Sales and marketing
| | |
27,405
| | | |
30,758
| | |
Operating, general and administrative
| | |
9,727
| | | |
10,435
| | |
Depreciation
| | |
1,618
| | | |
1,356
| | |
Interest expense and lender fees:
| | | | | | |
Related to receivables-based credit facilities
| | |
6,065
| | | |
5,595
| | | |
Related to other indebtedness
| |
|
1,780
|
| |
|
1,519
|
| | | |
Total costs and operating expenses
| |
|
49,157
|
| |
|
55,643
|
| | | | | | | |
| |
Income before provision for income taxes
| | |
5,028
| | | |
7,520
| | |
Provision for income taxes
| |
|
(1,961
|
)
| |
|
(2,933
|
)
| | | | | | | |
| | Net income | |
$
|
3,067
|
| |
$
|
4,587
|
| | | | | | | |
| | Basic net income per share | |
$
|
0.08
|
| |
$
|
0.12
|
| | | | | | | |
| | Diluted net income per share | |
$
|
0.08
|
| |
$
|
0.12
|
| | | | | | | |
| | Weighted average basic common shares | |
|
38,120,517
|
| |
|
38,146,943
|
| | | | | | | |
| | Weighted average diluted common shares | |
|
38,936,439
|
| |
|
38,823,170
|
| | | | | | | | |
|
|
| | SILVERLEAF RESORTS, INC. | | CONDENSED CONSOLIDATED BALANCE SHEETS | |
(in thousands, except share and per share amounts)
| |
| |
| | | |
March 31,
| |
December 31,
| |
ASSETS
| |
2010
| |
2009
| | |
(Unaudited)
| | | | | | |
| |
Cash and cash equivalents (including from VIEs of $11 and $11,
respectively)
| |
$
|
10,776
| | |
$
|
13,905
| |
Restricted cash (including from VIEs of $17,489 and $18,903,
respectively)
| | |
19,344
| | | |
20,668
|
Notes receivable, net of allowance for uncollectible notes of
$90,338 and $94,585, respectively (including from VIEs of $189,605
and $204,813, respectively)
| | |
356,935
| | | |
354,659
| |
Accrued interest receivable (including from VIEs of $2,162 and
$2,427, respectively)
| | |
4,485
| | | |
4,686
| |
Amounts due from affiliates (including from VIEs of ($220) and
($192), respectively)
| | |
3,832
| | | |
1,587
| |
Inventories
| | |
193,126
| | | |
196,010
| |
Land, equipment, buildings, and leasehold improvements, net
| | |
49,782
| | | |
51,117
| |
Prepaid and other assets (including from VIEs of $9,748 and $9,420,
respectively)
| |
|
24,270
|
| |
|
23,856
| | | | |
| |
TOTAL ASSETS
| |
$
|
662,550
|
| |
$
|
666,488
| | | | |
| | | | |
| |
LIABILITIES AND SHAREHOLDERS' EQUITY
| | | | | | | | |
| |
LIABILITIES
| | | | |
Accounts payable and accrued expenses (including from VIEs of $20
and $22, respectively)
| |
$
|
10,822
| | |
$
|
8,527
| |
Accrued interest payable (including from VIEs of $898 and $813,
respectively)
| | |
2,031
| | | |
2,264
| |
Unearned samplers
| | |
6,450
| | | |
6,501
| |
Income taxes payable
| | |
967
| | | |
706
| |
Deferred income taxes
| | |
37,040
| | | |
35,342
|
Notes payable and capital lease obligations (including from VIEs
of $175,668 and $191,395, respectively)
| | |
392,191
| | | |
395,017
| |
Senior subordinated notes
| |
|
10,000
|
| |
|
17,956
| | | | |
| |
Total Liabilities
| |
|
459,501
|
| |
|
466,313
| | | | |
| |
COMMITMENTS AND CONTINGENCIES
| | | | | | | | |
| |
SHAREHOLDERS' EQUITY
| | | | | |
Preferred stock, 10,000,000 shares authorized, none issued and
outstanding
| | |
-
| | | |
-
|
Common stock, par value $0.01 per share, 100,000,000 shares
authorized, 38,146,943 shares issued and 37,938,919 shares
outstanding at March 31, 2010 and 38,146,943 shares issued and
outstanding at December 31, 2009
| | |
381
| | | |
381
| |
Additional paid-in capital
| | |
113,502
| | | |
113,447
| |
Retained earnings
| | |
89,414
| | | |
86,347
|
Treasury stock, at cost, 208,024 shares at March 31, 2010 and none
at December 31, 2009
| |
|
(248
|
)
| |
|
-
| | | | |
| |
Total Shareholders' Equity
| |
|
203,049
|
| |
|
200,175
| | | | |
| |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
| |
$
|
662,550
|
| |
$
|
666,488
| | | | |
| | | | |
| |
The abbreviation "VIEs" above represents Variable Interest Entities.
| | | | |
Silverleaf Resorts, Inc., Dallas
Thomas J. Morris, 214-631-1166
x2218
|
