Press Release
November 9, 2000
DALLAS, TX -- Thousand Trails, Inc. (AMEX:TRV), one of the nation's largest owners and operators of membership-based
campgrounds, yesterday reported net income of $1.5 million or 17 cents per diluted share on revenues of $23.3 million
for the first quarter of fiscal 2001, which ended September 30, 2000.
This compares with net income of $1.3 million or 15 cents per diluted share on revenues of $19.8 million for the
same quarter last year.
``We are pleased with our revenue growth in the first quarter,'' said Bill Shaw, President and CEO. ``Revenue from
dues, membership sales, and ancillary programs were all higher than in the same quarter last year. This growth
helped us increase net income by 13.6% compared to last year.''
``We originated $6.2 million in membership contracts in the first quarter this year, compared with $2.2 million
last year. The increase resulted, in part, from a successful upgrade program involving our existing members. Although
a significant portion of the revenue from the membership contracts is deferred, the growth in the value of contracts
written is encouraging,'' Shaw noted.
Revenues grew in the current year due to increased dues revenue and ancillary revenues as a result of the acquisition
of Leisure Time Resorts in December 1999, higher average prices on new membership sales, and the upgrade program.
Expenses were also higher in the current year due to the operation of the Leisure Time campgrounds and increased
sales and marketing efforts.
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,
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2000 1999
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Membership contracts originated $6,158 $2,150
Change in deferred revenue (3,818) (1,106)
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Membership sales revenue 2,340 1,044
Membership dues 10,086 9,047
Other campground revenue 8,554 7,831
RPI membership fees 912 835
Gain on asset sales 150 4
Interest income 418 295
Other income 850 777
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Total revenues 23,310 19,833
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Campground operating expenses 14,297 12,710
Membership origination costs 2,854 1,140
Marketing expenses 1,494 846
Change in deferred origination costs (1,223) (252)
General & administrative and member
service costs 2,654 2,439
RPI membership expenses 436 517
Interest expense and amortization 336 296
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Total expenses 20,848 17,696
Income before income taxes 2,462 2,137
Income tax provision - current (174) (141)
Income tax provision - deferred (818) (702)
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Net income $1,470 $1,294
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Net income per share-Basic $0.18 $0.16
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Net income per share-Diluted $0.17 $0.15
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Shares used in calculation:
Basic 8,010 7,983
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Diluted 8,570 8,622
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Founded in 1969 to provide a secure, friendly, and affordable camping experience, Thousand Trails today offers
a premium outdoors destination to 119,000 members at 63 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 169 public campgrounds for the US 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, 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 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 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, Dallas
Bryan D. Reed, 972/243-2228