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