Press Release: ResortQuest International
August 16, 2002
MEMPHIS, TN -- ResortQuest International, Inc. (NYSE: RZT), one of the world's leading vacation rental property
management companies, today announced that it has filed for a five-day extension of its second quarter Form 10-Q,
as permitted by the Securities and Exchange Commission Rule 12b-25, while the Company finalizes its review of the
income tax implications associated with the cumulative effect of a change in accounting principle relating to the
first quarter adoption of Statement of Financial Accounting Standards ("SFAS") No. 142, "Goodwill
and Other Intangibles." The adoption of SFAS No. 142, effective January 1, 2002, changed the Company's accounting
for goodwill and related amortization.
In reviewing the adoption of SFAS No. 142, the Company has determined that a portion of the $8.1 million non-cash
goodwill charge taken in the first quarter of 2002 will result in income tax deductions in future years, and thus,
should have received a tax benefit upon adoption. The income tax benefit, non-recurring and to be recorded as part
of the cumulative effect of a change in accounting principle, is estimated to be $1.9 million and will increase
first quarter 2002 earnings by $0.10 per fully diluted share. Net income and earnings per diluted share for the
first quarter of 2002, excluding previously discussed unusual items and other charges and the cumulative effect
of the change in accounting principle, will not change from what was disclosed in the first quarter press release
dated May 7, 2002.
Upon completion of its review, the Company will restate the interim financial statements for the first quarter
ended March 31, 2002. The Company then plans to file its interim financial statements for the second quarter ended
June 30, 2002, within the five-day extension period permitted by the Securities and Exchange Commission Rule 12b-25.
The Company's Chief Executive Officer and Chief Financial Officer will certify these financial results in accordance
with the newly recently enacted requirements under Section 906 of the Sarbanes-Oxley Act of 2002.
About ResortQuest International
ResortQuest International, the first brand name and "real-time" online booking service (www.resortquest.com
/ AOL Keyword: ResortQuest) in vacation condominium and home rentals and sales, provides a one-stop resource in
over 50 premier resort destinations in the U.S. and Canada. ResortQuest is one of the world's leading vacation
rental property management companies, based on a portfolio of approximately 20,000 vacation rental properties with
a combined real estate value estimated in excess of $7.0 billion.
This news release contains certain forward-looking statements within the meaning of Section 27A of the Securities
Act and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the
safe harbors created thereby. These forward-looking statements involve risks and uncertainties, as well as assumptions
that, if they never materialize or prove incorrect, could cause the results of ResortQuest and its consolidated
subsidiaries to differ materially from those expressed or implied by such forward looking statements. In addition
to the factors discussed above, other factors that could cause actual results to differ materially include the
risks associated with successful integration of additional acquired companies factors affecting internal growth
and management of growth, ResortQuest's acquisition strategy and the availability of financing, the tour and travel
industry, seasonality, quarterly fluctuations and general economic conditions, dependence on technology and travel
providers, and other factors discussed from time to time in ResortQuest's Securities and Exchange Commission reports,
including its annual report on Form 10-K for the year ended December 31, 2001.
Although the Company believes that the assumptions underlying the forward-looking statements contained herein are
reasonable, any of the assumptions could be inaccurate, and, therefore, there can be no assurance that the forward-looking
statements included in this filing will prove to be accurate. In light of the significant uncertainties inherent
in the forward-looking statements included herein, the inclusion of such information should not be regarded as
a representation by ResortQuest or any other person that the objectives and plans of the Company will be achieved.
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Contact:
Investor Relations:
ResortQuest International
Mitch Collins / David Selberg
901/762-0600
or
Sloane & Company
Jenny Lee
212/446-1892
or
Media:
Sloane & Company
Dan O'Connor
212/446-1865