ILX RESORTS INCORPORATED REPORTS FIRST-QUARTER RESULTS

Source: ILX resorts Incorporated

May 21, 1999
ILX Resorts Incorporated (AMEX: ILX) a leading developer, operator and marketer of upscale flexible-stay vacation ownership resorts in the Western United States, Monday announced its results for the three months ended March 31, 1999.

Total revenues for the first quarter were $8.8 million, the highest for a first quarter in the company's history, and 3% higher than the same quarter of 1998. The increase in revenue reflects greater interest income as the company retains and borrows against more of its consumer paper, allowing it to earn the spread between the consumer rate and the company's lower
borrowing rate.

Net income for the quarter was $5,000, a decrease from the $233,000 of the first quarter of 1998. The break even 1999 results reflect lower closing rates at the Sedona sales office and inefficient tour generation to the South Bend sales office in January and February 1999.

"Our first quarter results reflect the continuation in January and February 1999 of the challenges we faced in the last six - nine months of 1998 in tour generation to the South Bend sales office and closing rates in the Sedona sales office,'' said Joe Martori, chairman and chief executive officer.

"I am pleased to report that during the first quarter we have taken significant steps to address these important issues. On March 1, 1999, the telemarketing tour generating operation in South Bend, which had not achieved cost effectiveness since its opening in early 1998, was closed, thereby generating dramatic cost reductions.

"Although closure of this office reduces the tour flow from this source, we intend to replace such tours with more efficient programs, including tours generated from our Phoenix telemarketing operation, from outside vendors offering gifts provided by the Company, and from our in-house guests.

"Also in March 1999, we made several sales management changes which have resulted in significant increases in closing rates for the Sedona sales office in March, with even stronger results achieved in April and May 1999 to date.''

Martori continued, "As we look toward the second quarter and second half of 1999 we anticipate reaping the benefits of these important changes and in addition, the rewards of the interest income spread on consumer paper made possible by the substantially reduced interest rates on our borrowings which were negotiated in the second half of 1998.''

ILX Resorts also reported that it has fulfilled the repurchase of 400,000 shares of its common stock, which it had announced its intention to do in August 1998.

The company intends to re-purchase additional shares from time to time, as market conditions and other factors warrant, in open market or privately negotiated transactions. Such re-purchased shares of common stock will become treasury shares of the company, and may be used to meet the company's obligations under stock bonus and stock option plans, and for other
corporate purposes.

ILX Resorts Incorporated develops, operates and markets upscale vacation ownership resorts. The company owns, operates and markets interests in five resort properties in Arizona and Colorado, as well as two Varsity Clubs of America properties, one in Indiana (adjacent to the University of Notre Dame) and one in Tucson, Ariz. (within three miles of the University of
Arizona).

In addition, the company markets interests in resorts located in Boca Raton, Fla. and Puerto Vallarta, Mexico. The company has an additional property in San Carlos, Mexico that it markets through its Premiere Vacation Club

This news release constitutes certain "forward-looking statements'' including statements regarding, among other items, the company's growth strategy, industry and demographic trends and anticipated trends in its business.

Actual results could differ materially from these forward-looking statements as a result of a number of factors, including, but not limited to, the company's need for additional financing, intense competition in various aspects of its business, the risks of rapid growth, its dependence on key personnel and other risks detailed from time to time in ILX's Securities and Exchange Commission reports. For the complete figures, go here.