The Timeshare Beat Home | Today's Headlines | Back to Previous Page
|
The Timeshare Beat Home | Today's Headlines | Back to Previous Page |
|
|
|
Press Release: Thousand Trails, Inc.
September 30, 2002
FRISCO, TX -- Thousand Trails, Inc. (AMEX:TRV), one of the nation's largest owners and operators of membership-based
campgrounds, Friday reported its financial results for fiscal year 2002, which ended June 30.
Net income was $8.3 million or $0.97 per diluted share on revenues of $88.8 million, compared with net income of
$4.3 million or $0.50 per diluted share on revenues of $79.4 million last year.
"We didn't suffer like many companies in the travel and leisure industries this year," said Bill Shaw,
President and CEO. "Our revenues were up 12% and membership contract originations were up 20%. Our upgrade
program involving our existing members continues to show strength."
"In addition, we purchased 1.1 million shares of our stock in a tender offer, installed a new reservation
system to provide better service to our members and ended the year with more than $9.5 million in cash and marketable
securities," Shaw said.
Revenues increased in the current year due primarily to increased membership sales revenue, higher ancillary revenues
at the campgrounds and higher revenues from additional properties managed by a subsidiary. Expenses were also higher
in the current year due to increased sales and marketing efforts and costs to manage the subsidiary's additional
properties, partially offset by lower interest expense and general and administrative expenses reflecting net nonrecurring
adjustments of $1.3 million.
A summary of the Company's financial results is set forth below (in thousands, except for per share amounts):
For the year ending
June 30,
------------------------
2002 2001
---------- ----------
Membership contracts originated $27,434 $22,903
Change in deferred revenue (11,218) (13,363)
---------- ----------
Membership sales revenue 16,216 9,540
Membership dues 39,856 40,080
Other campground revenue 18,505 17,849
Trails Management revenue 4,419 3,082
RPI membership fees 3,584 3,713
Gain on asset sales 1,283 397
Interest income 2,383 1,951
Other income 2,539 2,784
---------- ----------
Total revenues 88,785 79,396
---------- ----------
Campground operating expenses 44,060 43,977
Membership origination costs 13,024 9,905
Marketing expenses 5,927 5,650
Change in deferred origination costs (3,434) (3,739)
General & administrative and member service
costs 10,220 11,009
Trails Management expenses 4,482 3,332
RPI membership expenses 1,729 1,820
Interest expense 32 1,013
Reduction in allowance for doubtful accounts (400) --
---------- ----------
Total expenses 75,640 72,967
Income before income taxes 13,145 6,429
Income tax provision - current (3,102) (891)
Income tax provision - deferred (1,717) (1,262)
---------- ----------
Net income $8,326 $4,276
========== ==========
Net income per share-Basic $1.04 $0.52
========== ==========
Net income per share-Diluted $0.97 $0.50
========== ==========
Shares used in calculation:
Basic 8,012 8,107
========== ==========
Diluted 8,585 8,598
========== ==========
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. Through subsidiaries, Thousand Trails also provides a reciprocal use program for
members of approximately 280 recreational facilities and manages 240 public campgrounds for the U.S. Forest Service.
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, may cause the Company's actual results
to differ materially. These factors include, but are not limited to, the Company's ability to preserve its 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.