Press Release: Thousand Trails
February 13, 2002
DALLAS, TX -- Thousand Trails, Inc. (AMEX:TRV), one of the nation's largest owners and operators of membership-based
campgrounds, yesterday reported its financial results for the second quarter of fiscal 2002, which ended Dec. 31,
2001.
For the three months ended Dec. 31, 2001, Thousand Trails reported net income of $1.7 million or $0.20 per diluted
share on revenues of $19.3 million, compared with net income of $909,000 or $0.11 per diluted share on revenues
of $17.1 million for the same quarter last year.
For the six months ended Dec. 31, 2001, Thousand Trails reported net income of $3.9 million or $0.45 per diluted
share on revenues of $45.2 million, compared with net income of $2.4 million or $0.28 per diluted share on revenues
of $40.4 million for the same period last year.
``We did not see the downturn in business that a lot of companies experienced after September 11,'' said Bill Shaw,
President and CEO. ``We originated $5.7 million in membership contracts in the second quarter, compared to $3.4
million last year. Our dues collections have remained steady. In the quarter, our revenues were 13% higher than
last year and our income before taxes was up by 75%.''
Revenues grew in the current year as a result of increased membership sales revenue and increased fees from additional
campgrounds managed by Trails Management, the Company's property management subsidiary. Membership sales revenue
was higher because of higher average new sales prices and an upgrade program. Expenses were also higher in the
current year due to increased sales and marketing efforts and operation of the additional campgrounds by Trails
Management, partially offset by a decrease in interest expense.
A summary of the Company's financial results is set forth below (in
thousands, except for per share amounts):
For the Three For the Six
Months Ended Months Ended
------------------- -------------------
December 31, December 31,
------------------- -------------------
2001 2000 2001 2000
--------- --------- --------- ---------
Membership contracts
originated $5,669 $3,425 $12,937 $9,583
Change in deferred revenue (1,792) (1,371) (5,374) (5,189)
--------- --------- --------- ---------
Membership sales revenue 3,877 2,054 7,563 4,394
Membership dues 10,002 10,050 20,073 20,136
Other campground revenue 3,286 3,103 10,086 9,727
Trails Management revenue 113 59 3,416 1,989
RPI membership fees 798 762 1,686 1,674
Gain on asset sales 173 4 155 154
Interest income 506 426 1,030 844
Other income 556 626 1,237 1,476
--------- --------- --------- ---------
Total revenues 19,311 17,084 45,246 40,394
--------- --------- --------- ---------
Campground operating
expenses 9,449 9,429 22,459 22,229
Membership origination costs 2,954 1,775 6,123 4,629
Marketing expenses 1,340 1,154 3,062 2,648
Change in deferred
origination costs (627) (468) (1,705) (1,691)
General & administrative and
member service costs 2,757 2,609 5,452 5,263
Trails Management expenses 281 294 2,983 1,791
RPI membership expenses 504 455 899 891
Interest expense 18 334 23 670
--------- --------- --------- ---------
Total expenses 16,676 15,582 39,296 36,430
Income before income taxes 2,635 1,502 5,950 3,964
Income tax provision (924) (593) (2,086) (1,585)
--------- --------- --------- ---------
Net income $1,711 $909 $3,864 $2,379
========= ========= ========= =========
Net income per share-Basic $0.21 $0.11 $0.47 $0.29
========= ========= ========= =========
Net income per share-Diluted $0.20 $0.11 $0.45 $0.28
========= ========= ========= =========
Shares used in calculation:
Basic 8,155 8,084 8,163 8,047
========= ========= ========= =========
Diluted 8,597 8,585 8,608 8,578
========= ========= ========= =========
Founded in 1969 to provide a secure, friendly, and affordable camping experience, Thousand Trails today offers
a premium outdoors destination to 116,000 members at 59 membership-based camping preserves located in 17 states
and British Columbia, Canada. Thousand Trails also provides a reciprocal use program for members of approximately
300 recreational facilities and manages 241 public campgrounds for the US Forest Service and other entities.
This news release contains ``forward-looking statements'' based on management's current expectations, estimates
and projections. All statements that address expectations, estimates, or projections about the future, including
statements about the Company's business strategies, plans, and conditions for future growth, are forward-looking
statements and involve a number of risks, uncertainties, and assumptions. Many factors, including those discussed
more fully elsewhere in this release and in the Company's filings with the Securities and Exchange Commission,
particularly its latest annual report on Form 10-K and most recent quarterly report on Form 10-Q, may cause the
Company's actual results to differ materially. These factors include, but are not limited to, the Company's ability
to control costs, membership-based campground usage and market conditions, and the Company's success in collecting
its contracts receivable.
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Contact:
Thousand Trails
Bryan D. Reed, 972/243-2228