RAINTREE RESORTS
INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(in thousands, except
share and per share data)
(Unaudited) December 31, March 31, 2001 2002 ------------ ----------- Assets Cash and cash equivalents .................................................... $ 5,527 $ 4,040 Vacation Interval receivables and other trade receivables, net ............... 82,410 84,971 Inventories .................................................................. 1,048 1,047 Refundable Mexican taxes ..................................................... 264 297 Facilities, office furniture and equipment, net .............................. 4,361 4,081 Land held for vacation ownership development ................................. 12,695 12,696 Property held for sale ....................................................... 96 96 Equity investments ........................................................... 2,406 2,529 Cost of unsold vacation ownership intervals and related club memberships ..... 8,534 12,949 Deferred loan costs, net ..................................................... 6,443 6,308 Exclusivity agreement and other intangibles .................................. 2,409 2,226 Prepaid and other assets ..................................................... 1,843 4,076 --------- --------- Total assets ..................................................................... $ 128,036 $ 135,316 ========= ========= Liabilities and Shareholders' Deficit Liabilities Accounts payable ............................................................. $ 8,286 $ 7,999 Accrued interest payable .................................................. 2,199 4,589 Refurbishment reserve ...................................................... 3,719 3,969 Inventory acquisition liabilities .......................................... 7,222 11,906 Other accrued liabilities .................................................. 6,287 6,472 Notes payable ................................................................ 49,891 49,189 Senior Notes, due 2004, net of authorized original issue discount of $3,691 and $3,375 at December 31, 2001 and March 31, 2002, ........................ 90,809 91,125 Taxes payable ................................................................ 4,681 4,790 Unearned service fees ........................................................ 5,140 9,867 --------- --------- Total liabilities ................................................................ 178,234 189,906 Commitments and Contingencies Redeemable Preferred Stock Redeemable Preferred stock; Par value $.001; 50,000 shares authorized and outstanding at December 31, 2001 and March 31, 2002, respectively and aggregate liquidation preference of $6,339 at March 31, 2002 .......... 6,159 6,294 Shareholders' Deficit Common stock; par value $.001; 45,000,000 shares authorized, 12,039,807 shares issued and outstanding at December 31, 2001 and March 31, 2002 ............. 12 12 Additional paid-in capital ................................................... 994 859 Warrants to purchase 3,096,455 shares of common stock at December 31, 2001 and March 31, 2002 .................................... 9,335 9,335 Accumulated deficit .......................................................... (66,486) (70,873) Cumulative translation adjustment ............................................ (212) (217) --------- --------- Total shareholders' deficit ...................................................... (56,357) (60,884) --------- --------- Total liabilities and shareholders' deficit ...................................... $ 128,036 $ 135,316 ========= ========= |
RAINTREE RESORTS
INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(in thousands, except
per share data)
(Unaudited)
Three Months Ended March 31, ------------------------------------- 2001 2002 ----------------- ----------------- Statement of Operations Revenues Vacation Interval sales ............................................ $ 20,767 $ 18,375 Rental and service fee income ...................................... 3,590 5,034 Interest income on Vacation Interval receivables.................... 1,956 2,176 Other income ....................................................... 891 524 --------- --------- Total revenues ................................................... 27,204 26,109 Costs and Operating Expenses Cost of Vacation Interval sales..................................... 4,979 6,327 Provision for doubtful accounts .................................... 1,490 1,586 Advertising, sales and marketing ................................... 9,589 8,084 Maintenance and energy ............................................. 4,136 5,031 General and administrative ......................................... 2,672 3,422 Depreciation ....................................................... 388 415 --------- --------- Total costs and operating expenses ............................... 23,254 24,865 --------- --------- Operating income....................................................... 3,950 1,244 Interest expense, net .............................................. 5,132 5,378 Equity in earnings on equity investments............................ (495) (124) Foreign currency exchange(gains)/ losses, net....................... 239 (202) --------- --------- Net loss before taxes ................................................. (926) (3,808) Foreign income and asset taxes...................................... 297 579 --------- --------- Net loss before preferred accretion ................................... (1,223) (4,387) Preferred stock accretion .......................................... 132 135 --------- --------- Net loss available to common shareholders ............................. $ (1,355) $ (4,522) ========= ========= Net loss per share (Basic and Diluted)................................................ $ (0.09) $ (0.31) Weighted average number of common shares (Basic and Diluted)................................................ 14,636 14,636 Comprehensive Loss Net loss before preferred stock accretion ............................. $ (1,223) $ (4,387) Other comprehensive income: Foreign currency translation adjustment ............................ (153) (5) --------- --------- Comprehensive loss .................................................... $ (1,376) $ (4,392) ========= ========= |
RAINTREE RESORTS
INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(in thousands)
(Unaudited) Three Months Ended March 31, ------------------------------------- 2001 2002 ----------------- ---------------- Operating activities Net loss .......................................................................... $ (1,223) $ (4,387) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization .............................................. 704 730 Amortization of deferred loan costs ........................................ 409 596 Gain on sale of property ................................................... (295) -- Provision for doubtful accounts ............................................ 1,490 1,586 Equity in earnings on equity investments ................................... (495) (123) Changes in other operating assets and liabilities: Vacation Interval receivables and other trade receivables .................. (6,581) (4,153) Cost of unsold vacation ownership intervals and related club memberships ... 3,595 (4,236) Prepaid and other assets ................................................... (634) (2,233) Accounts payable and accrued liabilities ................................... 1,950 8,210 Taxes payable/refundable ................................................... 5,463 76 Unearned services fees...................................................... 4,704 4,727 -------- -------- Net cash provided by operating activities ......................................... 9,087 793 Investing activities Purchase of land and other assets held for vacation ownership development ...... (201) (1) Additions to facilities, office furniture and equipment ........................ (399) (135) Proceeds from sale of property ................................................. 573 -- -------- -------- Net cash used in investing activities ............................................. (27) (136) Financing activities Additional bank and other loans, net of related expenses........................ 9,420 4,408 Repayment of bank loans......................................................... (15,473) (6,549) Capital contributions........................................................... 13 -- -------- -------- Net cash used in financing activities ............................................. (6,040) (2,141) Increase (decrease) in cash and cash equivalents .................................. 3,020 (1,484) Effect of exchange rate changes on cash ........................................... (131) (3) Cash and cash equivalents, at beginning of the period ............................. 3,373 5,527 -------- -------- Cash and cash equivalents, at end of the period ................................... $ 6,262 $ 4,040 ======== ======== Supplemental disclosures of cash flow information Cash paid during the period for interest ....................................... $ 1,291 $ 1,825 Cash received during the period for income and asset taxes ..................... (167) (320) Non-cash financing activities Accretion on preferred stock ................................................... 132 135 |