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Press Release: Thousand Trails, Inc.
November 14, 2002
FRISCO, TX -- Thousand Trails, Inc. (AMEX:TRV), one of the nation's largest owners and operators of membership-based
campgrounds, yesterday reported net income of $2.3 million or 30 cents per diluted share on revenues of $27.3 million
for the first quarter of fiscal 2003, which ended Sept. 30, 2002.
This compares with net income of $2.2 million or 25 cents per diluted share on revenues of $25.9 million for the
same quarter last year.
"We had a good quarter," said Bill Shaw, President and CEO. "Our diluted earnings per share were
20% higher than last year, even though the cost of providing health insurance to our employees increased significantly
during the quarter. Dues cash collections were good, and our member count rose during the quarter."
The increase in earnings per share reflects the effect of a successful tender offer in June, when the Company repurchased
1.1 million shares for $8.41 per share. On Sep. 30, the Company had $9.3 million in cash and marketable securities,
about $1.9 million more than it had in cash at the same time last year.
Revenues grew in the current year as a result of increased membership sales revenue, which was up 44%. Expenses
were also higher in the current year due to increased sales and marketing efforts and higher costs for insurance
and employee benefits.
A summary of the Company's financial results is set forth below (in
thousands, except for per share amounts):
For the three months ending
September 30,
---------------------------
2002 2001
-------- --------
Membership contracts originated $7,732 $7,268
Change in deferred revenue (2,426) (3,582)
-------- --------
Membership sales revenue 5,306 3,686
Membership dues 10,107 10,071
Other campground revenue 6,505 6,800
Trails Management revenue 3,172 3,303
RPI membership fees 942 888
Loss on asset sales (4) (18)
Interest income 610 524
Other income 698 681
-------- --------
Total revenues 27,336 25,935
-------- --------
Campground operating expenses 13,199 13,010
Membership origination costs 3,505 3,169
Marketing expenses 1,641 1,722
Change in deferred origination costs (621) (1,078)
Trails Management expenses 2,529 2,702
General & administrative and member service
costs 2,911 2,695
RPI membership expenses 414 395
Interest expense 2 5
-------- --------
Total expenses 23,580 22,620
Income before income taxes 3,756 3,315
Income tax provision - current (1,434) (759)
Income tax provision - deferred (14) (403)
-------- --------
Net income $2,308 $2,153
======== ========
Net income per share-Basic $0.33 $0.26
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Net income per share-Diluted $0.30 $0.25
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Shares used in calculation:
Basic 6,920 8,171
======== ========
Diluted 7,683 8,619
======== ========
Founded in 1969 to provide a secure, friendly, and affordable camping experience, Thousand Trails today offers
a premium outdoors destination to 112,000 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
280 recreational facilities and manages 240 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 and expectations for its future financial condition and results
of operations, 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 preserve it membership base and control costs, member use of its campgrounds, market
conditions and other factors beyond its control.
---------------------------------------------
Contact:
Thousand Trails, Inc., Frisco
Bryan D. Reed, 214/618-7200
Source: Thousand Trails, Inc.