Press Release: Silverleaf Resorts, Inc.
May 13, 2004
DALLAS, TX -- Silverleaf Resorts, Inc. (OTC:SVLF) yesterday announced financial results for its first quarter ended
March 31, 2004.
Total revenue for the first quarter of 2004 increased 4.1% to $43.1 million from $41.4 million in the first quarter
of 2003. Vacation Interval sales increased $3.4 million, or 12% over the comparative prior year period.
"Our first quarter 2004 revenue growth is largely a result of our internal growth strategy, which targets
existing Silverleaf Vacation Interval owners," said Robert E. Mead, Chairman and Chief Executive Officer.
"We are very proud of the continued demand among our existing owners for both upgraded and additional Vacation
Intervals. We believe this is a testament to our attractive properties and our customer service. As to first time
purchasers, we continue to focus our marketing programs on potential purchasers who meet or exceed minimum credit
characteristics established by the Company."
For the quarter ended March 31, 2004, net income was $2.3 million, or $0.06 per diluted share, on approximately
38.9 million weighted average common and common equivalent shares outstanding ("shares outstanding"),
compared to a net loss of $25.8 million, or $0.70 loss per diluted share, on approximately 36.8 million shares
outstanding, for the quarter ended March 31, 2003. As previously disclosed, during the quarter ended March 31,
2003, the Company increased its provision for uncollectible notes an additional $28.7 million over the original
estimate for that quarter.
Based in Dallas, Silverleaf Resorts, Inc. currently owns and operates 12 timeshare resorts in various stages of
development. Silverleaf Resorts offer a wide array of country club-like amenities, such as golf, swimming, horseback
riding, boating, and many organized activities for children and adults.
This release contains certain forward-looking statements that involve risks and uncertainties and actual results
many 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 "Cautionary Statements" in the Company's reports filed with the Securities and Exchange
Commission, including the Company's 2003 Annual Report on Form 10K (pages 22 through 30 thereof) filed on March
29, 2004.
SILVERLEAF RESORTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share amounts)
(Unaudited)
Three Months Ended
March 31,
-----------------------
2004 2003
----------- -----------
Revenues:
Vacation Interval sales $31,987 $28,557
Sampler sales 446 485
----------- -----------
Total sales 32,433 29,042
Interest income 8,926 8,768
Management fee income 300 471
Gain on sales of notes receivable 426 1,934
Other income 1,019 1,207
----------- -----------
Total revenues 43,104 41,422
Costs and Operating Expenses:
Cost of Vacation Interval sales 6,035 5,042
Sales and marketing 16,467 16,299
Provision for uncollectible notes 6,400 34,666
Operating, general and administrative 6,483 6,891
Depreciation and amortization 1,096 1,182
Interest expense and lender fees 4,282 4,407
----------- -----------
Total costs and operating expenses 40,763 68,487
Other Income:
Gain on early extinguishment of debt -- 1,257
----------- -----------
Total other income -- 1,257
Income (loss) before benefit (provision) for
income taxes 2,341 (25,808)
Benefit (provision) for income taxes 3 (13)
----------- -----------
Net income (loss) $2,344 $(25,821)
=========== ===========
Basic income (loss) per share: $0.06 $(0.70)
=========== ===========
Diluted income (loss) per share: $0.06 $(0.70)
=========== ===========
Weighted average shares outstanding:
Basic: 36,841,557 36,826,906
=========== ===========
Diluted: 38,885,864 36,826,906
=========== ===========
---------------------------------------------------
Contact:
Silverleaf Resorts, Inc., Dallas
Harry J. White, Jr., 214-631-1166
Source: Silverleaf Resorts, Inc.