DALLAS, March 1, 2000 (PRIMEZONE) -- Silverleaf Resorts, Inc. (NYSE:SVR) today reported financial results for the fourth quarter and year ended December 31, 1999.
Fourth Quarter Results
Total revenue for the fourth quarter increased 54% to $63.8 million from $41.3 million in the fourth quarter of 1998. Vacation interval sales increased 59% to $52.7 million for the quarter ended December 31, 1999, from $33.2 million in the comparative prior year period. Upgrade sales accounted for approximately 28% of total vacation interval sales, a 118% increase in dollar volume compared with last year's fourth quarter. Sales at the Company's seven core resorts grew 55% and represented 61% of total vacation interval sales. New resorts' sales grew 64%, and accounted for 39% of total vacation interval sales. The number of units sold increased 21%, while the average sales price increased 19%.
For the quarter ended December 31, 1999, net income was $3.5 million, or $0.27 per share, compared to $3.9 million, or $0.30 per share, in the fourth quarter of 1998. As anticipated, the decrease in net income is due to the inefficiencies associated with the ramp up of sales and marketing efforts resulting from the Company's rapid growth into new markets.
"With 15 new resorts under our umbrella in the last three years, Silverleaf now is meeting the demand for drive-to vacations and year-round country club style amenities in many new markets, including Chicago, St. Louis, Atlanta, New York and Boston," said Robert Mead, Chairman and Chief Executive Officer.
Year-End Results
For the year ended December 31, 1999, total revenue increased 44% to $230.8 million compared to $160.8 million for the year ended December 31, 1998. Vacation interval sales were $191.2 million, representing an increase of 41%, compared to $135.6 million for the year ended December 31, 1998. Net income increased 5% to $19.3 million from $18.4 million in the 1998. Diluted net income per share was $1.50, compared to $1.45 per share for the year ended December 31, 1998. Total shareholder's equity at December 31, 1999 was $161.2 million and book value was $12.50 per diluted share.
First Quarter Preliminary Outlook
The Company stated that first quarter 2000 results will be lower than analysts' expectations. Total sales are expected to increase approximately 15% to 20% and based upon current expectations, the Company expects first quarter earnings per diluted share to be approximately $0.10 to $0.15.
"While first quarter sales are expected to grow by at least 15%, our marketing efficiencies are not yet in line with our targets. As we pursue a larger share of the vacation interval market, our focus in 2000 will be to improve efficiencies in the entire marketing process and generate more tour flows to our sales offices at a lower average cost per tour," added Mead.
1999 Highlights
Northeast Georgia's Apple Mountain Resort, located in the Blue Ridge Mountains an hour's drive from Atlanta, opened in the fall of 1999.
Construction continued at Silverleaf's Seaside Resort on Galveston Island, the Company's first beachfront resort, which is scheduled to open in the spring of 2000.
The Company added 333 Lodge Getaway and Presidential suites to its portfolio of properties. The increased inventory of Presidential suites positions Silverleaf to sell more vacation upgrades.
Silverleaf invested significantly in new recreational amenities, which are available to members year-round during day trips to the resorts. Amenities added during 1999 include:
-- state-of-the-art miniature golf courses at Timber Creek, Hill Country and Apple Mountain -- activity centers, some including exercise rooms, Kids Clubs and game rooms, at Piney Shores, Hill Country, The Villages and Apple Mountain -- a new outdoor pool, clubhouse, restaurant, conference room and pro shop overlooking the golf course at Holiday Hills -- lighted tennis facilities and a new outdoor pool at Oak 'N' Spruce
"Our investments in property expansion and enhancements during 1999 reflect the strength of our financial position and our commitment to meeting or exceeding our members' expectations," concluded Mead.
Based in Dallas, Texas, Silverleaf Resorts, Inc. currently owns and/or operates 22 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. Silverleaf has a managed ownership base of over 101,000. Further information on the Company may be found on its website, www.silverleafresorts.com. This release contains certain forward-looking statements which involve risks and uncertainties and actual results may differ materially from those anticipated. The Company is subject to specific risks associated with the timeshare industry, the regulatory environment, and various economic factors. Additionally, anticipated results are dependent upon the Company's ability to identify and acquire or develop other operations under terms which are beneficial to the Company and its shareholders. Other risk factors are more fully discussed under "Cautionary Statements" in the Company's SEC reports, including the Company's annual report on Form 10K dated March 26, 1999 (pages 30 through 38).
(SILVERLEAF RESORTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except share and per share amounts)
(Unaudited)
Three Months Ended Years Ended
December 31, December 31,
----------------- -----------------
1999 1998 1999 1998
-------- -------- -------- --------
Revenues:
Vacation Interval
sales $ 52,727 $ 33,218 $ 191,207 $ 135,582
Sampler sales 975 1,082 4,250 2,768
-------- -------- -------- --------
Total sales 53,702 34,300 195,457 138,350
Interest income 8,431 5,579 28,412 16,823
Interest income from
affiliates 12 15 48 62
Management fee income 592 722 2,811 2,540
Other income 1,034 730 4,030 2,980
-------- -------- -------- --------
Total revenues 63,771 41,346 230,758 160,755
Costs and Operating
Expenses:
Cost of Vacation
Interval sales 9,024 3,723 30,207 19,877
Sales and marketing 29,567 19,337 101,104 67,030
Provision for
uncollectible notes 5,273 4,027 19,121 16,372
Operating, general
and administrative 6,513 3,977 23,218 14,144
Other expense 839 872 3,416 3,040
Depreciation and
amortization 1,585 1,052 5,563 3,332
Interest expense 5,228 2,061 16,773 7,150
-------- -------- -------- --------
Total costs and
operating
expenses 58,029 35,049 199,402 130,945
Income before
provision for
income taxes 5,742 6,297 31,356 29,810
Provision for
income taxes (2,211) (2,413) (12,072) (11,432)
-------- -------- -------- --------
Net Income $ 3,531 $ 3,884 $ 19,284 $ 18,378
-------- -------- -------- --------
-------- -------- -------- --------
Net income per common share:
Basic $ 0.27 $ 0.30 $ 1.50 $ 1.45
-------- -------- -------- --------
-------- -------- -------- --------
Diluted $ 0.27 $ 0.30 $ 1.50 $ 1.45
-------- -------- -------- --------
-------- -------- -------- --------
Weighted average shares
outstanding:
Basic 12,889,417 12,901,431 12,889,417 12,633,751
-------- -------- -------- --------
-------- -------- -------- --------
Diluted 12,889,417 12,901,431 12,890,044 12,682,982
-------- -------- -------- --------
-------- -------- -------- --------
SILVERLEAF RESORTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
(Unaudited)
December 31, December 31,
ASSETS 1999 1998
--------- ---------
Cash and cash equivalents $ 4,814 $ 11,355
Restricted cash
903 873
Notes receivable, net of
allowance for uncollectible notes of
$32,326 and $23,947, respectively 286,581 173,959
Amounts due from affiliates 6,596 4,115
Inventories 112,810 71,694
Land, equipment, buildings,
and utilities, net 51,050 34,025
Prepaid and other assets 17,203 16,984
--------- ---------
TOTAL ASSETS $ 479,957 $ 313,005
--------- ---------
--------- ---------
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Accounts payable and
accrued expenses $ 15,539 $ 8,144
Unearned revenues 5,601 4,167
Income taxes payable 1,801 4,136
Deferred income taxes, net 26,635 21,524
Notes payable and
capital lease obligations 194,171 58,108
Senior subordinated notes 75,000 75,000
--------- ---------
Total Liabilities 318,747 171,079
--------- ---------
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY
Common stock, par value $0.01 per
share, 100,000,000 shares
authorized, 13,311,517 shares
issued and 12,889,417 shares
outstanding at December 31, 1999
and December 31, 1998 133 133
Additional paid-in capital 109,339 109,339
Retained earnings 56,737 37,453
Treasury stock, at cost
(422,100 shares at December 31, 1999
and December 31, 1998) (4,999) (4,999)
--------- ---------
Total Shareholders' Equity 161,210 141,926
--------- ---------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 479,957 $ 313,005
--------- ---------
--------- ---------
SILVERLEAF RESORTS, INC. AND SUBSIDIARIES
CONDENSED SELECTED FINANCIAL DATA
(in thousands, except average price data)
(Unaudited)
As of and for the Quarters Ended
12/31/99 9/30/99 6/30/99
-------- ------- -------
FINANCIAL DATA:
Earnings Before Interest expense,
Provision for Income Taxes, and
Depreciation and Amortization
expense
("EBITDA") $ 12,555 $ 14,780 $ 13,985
Gross notes receivable $318,907 $287,517 $254,766
Allowance for uncollectible notes $ 32,326 $ 29,018 $ 26,343
Delinquency percentage (overall)
(90 day basis) 10.4% 9.3% 9.1%
OPERATING DATA:
Number of Vacation Intervals sold
(excluding upgrades) 3,971 3,948 4,031
Number of upgraded
Vacation Intervals sold 3,238 3,152 2,762
Average price of Vacation Intervals
sold (excluding upgrades) $ 9,541 $ 9,357 $ 8,532
Average price of upgraded
Vacation Intervals sold $ 4,583 $ 4,367 $ 4,364
As of and for the Quarters Ended
3/31/99 12/31/98
------- --------
FINANCIAL DATA:
Earnings Before Interest expense,
Provision for Income Taxes, and
Depreciation and Amortization
expense
("EBITDA") $ 12,372 $ 9,410
Gross notes receivable $222,615 $197,906
Allowance for uncollectible notes $ 24,533 $ 23,947
Delinquency percentage (overall)
(90 day basis) 10.5% 11.0%
OPERATING DATA:
Number of Vacation Intervals sold
(excluding upgrades) 3,879 3,283
Number of upgraded
Vacation Intervals sold 2,248 1,570
Average price of Vacation Intervals
sold (excluding upgrades) $ 8,146 $ 8,045
Average price of upgraded
Vacation Intervals sold $ 4,329 $ 4,334
Contact: Harry J. White, Jr., CFO
Silverleaf Resorts, Inc.
(214) 631-1166
Michele Katz/Michael Polyviou/
Ian Hirsch
Press: Stacey Reed
Morgen-Walke Associates
(212) 850-5600