EX-99.1 2 ex99_1.htm EXHIBIT 99.1 ex99_1.htm
Ex 99.1


SILVERLEAF RESORTS, INC. REPORTS
 FOURTH QUARTER AND 2007 ANNUAL RESULTS


DALLAS--(BUSINESS WIRE)—March 4, 2008 --- Silverleaf Resorts, Inc. (Nasdaq: SVLF) today reported the following results for the fourth quarter and year-ended December 31, 2007.

Financial highlights for the fourth quarter 2007:

 
·
Vacation Interval sales increased 30.3% to $59.9 million

 
·
Net income improved 23.4% to $4.9 million


Financial highlights for the full year:

 
·
Vacation Interval sales increased 25.4% to $235.1 million

 
·
Net in come improved 20.4% to $27.7 million

 
·
Diluted earnings per share increased to $0.70 from $0.59


Sharon K. Brayfield, President, commented, “We are very pleased with our operating results for 2007 based on another strong year of Vacation Interval sales and net income growth.  The appeal of our resort product and the family vacation we provide continues to be well-received by both new customers and existing members alike, and our business remains fundamentally strong.  While we have adequate credit facilities in place to fund our business for the foreseeable future, we’ve made a prudent strategic decision to slow the growth of our sales and expansion in light of uncertainties surrounding the capital markets and general economic conditions.  This will allow us to focus our efforts on continuing to improve the credit quality of our customers and pay down debt.  Consequently, we are revising our 2008 net income and diluted EPS guidance to approximately $28 million and $0.70, respectively, which is consistent with full-year 2007 results.”

2007 Fourth Quarter Results

Vacation Interval sales increased 30.3% to $59.9 million during the fourth quarter of 2007 compared to $46.0 million in the prior-year period.  Vacation Interval sales to new customers increased 26.0% to $23.4 million. Vacation Interval sales to existing customers increased 33.2% to $36.5 million.

Total revenue for the fourth quarter of 2007 increased 24.5% to $64.8 million compared to $52.1 million for the fourth quarter of 2006.

Sales and marketing expense decreased to 53.2% of Vacation Interval sales for the fourth quarter of 2007 compared to 55.3% in the prior-year period. The $6.5 million increase in sales and marketing expense is primarily attributable to the increased volume of Vacation Interval sales.

Net income for the quarter ended December 31, 2007 increased to $4.9 million, or $0.12 per diluted share, compared to net income of $4.0 million, or $0.10 per diluted share, for the quarter ended December 31, 2006.

 
 
 
 
2007 Full Year Results

Vacation Interval sales increased 25.4% to $235.1 million for 2007 compared to $187.5 million for 2006. Vacation Interval sales to new customers increased 14.2% to $94.7 million. Vacation Interval sales to existing customers increased 34.3% to $140.5 million.

Total revenue for 2007 increased 23.3% to $255.0 million compared to $206.9 million in 2006.

Sales and marketing expense increased to 50.9% of Vacation Interval sales for 2007 from 50.1% for 2006.  The $25.7 million increase in sales and marketing expense is primarily attributable to the increased volume of Vacation Interval sales as well as increased costs related to new and existing promotional programs used to generate tours.

Net income for the year ended December 31, 2007 increased to $27.7 million, or $0.70 per diluted share, compared to net income of $23.0 million, or $0.59 per diluted share, for the year ended December 31, 2006.


Balance Sheet

Notes receivable and revolving debt balances as of December 31, 2007 have increased in accordance with increased Vacation Interval sales, as compared to the balances as of December 31, 2006. At December 31, 2007, senior credit facilities provided for loans of up to $507.5 million, of which $200.0 million is available for future advances. Expansion at existing resorts, including construction of lodging units, additional amenities, and other assets resulted in a $31.4 million net increase in inventories.


Outlook

For 2008, the Company has established revised net income and diluted EPS guidance of approximately $28 million and $0.70, respectively, which is consistent with full-year 2007 results.


Conference Call

The Company plans to host a conference call and Webcast to review these results at 9:00 a.m. Eastern Time on Wednesday, March 5, 2008.

To access the conference call, please dial (888) 241-0558 in the U.S. or (647) 427-3417 internationally. To listen to the simultaneous Webcast, please visit the “investor relations” section of the Company’s Web site (www.silverleafresorts.com).

For those unable to access the live conference, there will be an audio replay available approximately two hours after the live call ends through March 19, 2008.  To listen to the audio replay, please dial (888) 220-7737 in the U.S. or (402) 220-7737 internationally and use the following replay pin code: 34933942.­­­ A replay of the conference call will also be available in the “investor relations” section of the Company’s Web site (www.silverleafresorts.com) approximately two hours after the live call ends through April 2, 2008.

 
About Silverleaf Resorts

Based in Dallas, Texas, Silverleaf Resorts, Inc. currently owns and operates timeshare resorts with a wide array of country club-like amenities, such as golf, clubhouses, swimming, tennis, boating, and many organized activities for children and adults.  For additional information, please visit www.silverleafresorts.com.

This release contains certain forward-looking statements that 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.  These risks and others are more fully discussed under the heading “Risk Factors” in the Company’s reports filed with the Securities and Exchange Commission, including the Company’s 2006 Annual Report on Form 10-K (pages 21 through 30 thereof) filed on March 16, 2007.

 
 
 

For more information or to visit our website, click here: http://www.b2i.us/irpass.asp?BzID=1358&Nav=0&S=0&L=1


Contact:
Silverleaf Resorts, Inc., Dallas, Texas
Thomas J. Morris, 214-631-1166  x2218
 
 
 
 
 
SILVERLEAF RESORTS, INC
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)
(Unaudited)

 
   
Three Months Ended
    
Year Ended
  
   
December 31,
    
December 31,
  
   
2007
    
2006
    
2007
  
 
2006
  
Revenues:
                        
Vacation Interval sales
   $ 59,900     $ 45,965     $ 235,135     $ 187,481  
Estimated uncollectible revenue
     (11,082 )     (7,966 )     (40,071 )     (32,491 )
Net sales
     48,818       37,999       195,064       154,990  
                                 
Interest income
     14,067       12,809       53,019       46,248  
Management fee income
     960       465       2,806       1,861  
Other income
     971       805       4,141       3,785  
Total revenues
     64,816       52,078       255,030       206,884  
                                 
Cost and Operating Expenses
                                
Cost of Vacation Interval  sales
     6,358       4,017       23,027       19,003  
Sales and marketing
     31,885       25,422       119,679       93,957  
Operating, general and administrative
     11,099       8,986       39,101       32,315  
Interest expense and lender fees
     922       789       3,511       2,539  
Total costs and operating expenses
     6,505       6,389       24,610       21,662  
      56,769       45,603       209,928       169,476  
                                 
Income before provision for income taxes
     8,047       6,475       45,102       37,408  
Provision for income taxes
     3,132       2,493       17,398       14,402  
                                 
Net Income
   $ 4,915     $ 3,982     $ 27,704     $ 23,006  
                                 
Basic net income per share
   $ 0.13     $ 0.11     $ 0.73     $ 0.61  
                                 
Diluted net income per share
   $ 0.12     $ 0.10     $ 0.70     $ 0.59  
                                 
Weighted average basic common shares issued and outstanding
     37,818,154       37,729,429       37,811,387       37,579,462  
                                 
Weighted average diluted common shares issued and outstanding
     39,425,430       39,315,817       39,417,017       39,261,652  

 
 
 
 
SILVERLEAF RESORTS, INC
CONSOLIDATED BALANCE SHEETS
(in thousands, except share and per share amounts)
(Unaudited)

 
   
December 31,
    
December 31,
  
ASSETS
  
2007
    
2006
  
             
Cash and cash equivalents
   $ 13,170     $ 11,450  
Restricted cash
     12,816       15,771  
Notes receivable, net of allowance for uncollectible notes of $69,128 and $68,118, respectively
     289,907       229,717  
Accrued interest receivable
     3,744       2,936  
Investment in special purpose entity
     7,315       13,008  
Amounts due from affiliates
     1,358       1,251  
Inventories
     179,188       147,759  
Land, equipment, buildings, and leasehold improvements, net
     41,565       28,040  
Land held for sale
     509       205  
Prepaid and other assets
     31,487       24,393  
TOTAL ASSETS
   $ 581,059     $ 474,530  
                 
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
                
                 
LIABILITIES
                
Accounts payable and accrued expenses
   $ 21,071     $ 14,192  
Accrued interest payable
     2,470       1,792  
Amounts due to affiliates
     -       246  
Unearned Vacation Interval sales
     296       -  
Unearned samplers
     6,921       6,245  
Income taxes payable
     782       163  
Deferred income taxes
     30,463       17,683  
Notes payable and capital lease obligations
     316,198       254,550  
Senior subordinated notes
     26,817       31,467  
Total Liabilities
     405,018       326,338  
                 
COMMITMENTS AND CONTINGENCIES
                
                 
SHAREHOLDERS' EQUITY
                
Preferred stock, 10,000,000 shares authorized, none issued and outstanding
     -       -  
Common stock, par value $0.01 per share, 100,000,000 shares authorized, 37,808,154 and 37,818,154 shares issued and outstanding at December 31, 2006 and 2007, respectively
     378       378  
Additional paid-in capital
     112,700       112,555  
Retained earrings
     62,963       35,259  
Total Shareholders' Equity
     176,041       148,192  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
   $ 581,059     $ 474,530