EX-99.1 2 a08-28650_1ex99d1.htm EX-99.1

Exhibit 99.1

 

In August 2008, Interval Acquisition Corp. (the “Issuer”), a wholly-owned subsidiary of Interval Leisure Group, Inc. (“ILG”), issued $300 million principal amount of 9 ½% senior notes due 2016 (the “Notes”). The Notes are guaranteed by ILG and the domestic subsidiaries of the Issuer. These guarantees are full and unconditional and joint and several. Pursuant to Section 4.03(a) of the Indenture, dated as of August 19, 2008, among the Issuer, the guarantors and The Bank of New York Mellon as Trustee (“Trustee”), the Issuer is obligated to furnish to the holders of the Notes with respect to September 30, 2008 and for prior periods consolidating  financial data that reconciles the differences between the information relating to ILG and the information relating to the Issuer and its restricted subsidiaries

 

The following tables present condensed consolidating financial information as of September 30, 2008 and December 31, 2007, and for the three and six months ended September 30, 2008 and 2007 for ILG on a stand-alone basis, the Issuer on a stand-alone basis, the combined guarantor subsidiaries of ILG (collectively, the “Guarantor Subsidiaries”), the combined non-guarantor subsidiaries of ILG (collectively, the “Non-Guarantor Subsidiaries”) and ILG on a consolidated basis (in thousands). ILG was incorporated in May 2008 and became the parent company of the Issuer in August 2008.  Therefore, results of ILG are included in the 2008 periods only.

 

Balance sheet as of September 30, 2008

 

As of September 30, 2008

 

ILG

 

Interval
Acquisition
Corp.

 

Guarantor
Subsidiaries

 

Non-
Guarantor
Subsidiaries

 

Total
Eliminations

 

ILG
Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

$

37

 

$

2,355

 

$

124,279

 

$

84,368

 

$

—

 

$

211,039

 

Property and equipment, net

 

1,162

 

—

 

34,867

 

1,425

 

—

 

37,454

 

Goodwill and intangible assets, net

 

—

 

347,252

 

338,358

 

—

 

—

 

685,610

 

Investment in subsidiaries

 

147,657

 

652,640

 

46,383

 

—

 

(846,680

)

—

 

Other assets

 

—

 

35,626

 

28,588

 

10,660

 

(27,448

)

47,426

 

Total assets

 

$

148,856

 

$

1,037,873

 

$

572,475

 

$

96,453

 

$

(874,128

)

$

981,529

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

$

2,124

 

$

15,503

 

$

176,060

 

$

26,049

 

$

(27,448

)

$

192,288

 

Other liabilities and minority interest

 

—

 

512,390

 

109,825

 

21,894

 

—

 

644,109

 

Intercompany liabilities (receivables)

 

1,600

 

362,323

 

(366,050

)

2,127

 

—

 

—

 

Shareholders’ equity

 

145,132

 

147,657

 

652,640

 

46,383

 

(846,680

)

145,132

 

Total liabilities and shareholders’ equity

 

$

148,856

 

$

1,037,873

 

$

572,475

 

$

96,453

 

$

(874,128

)

$

981,529

 

 

Balance sheet as of December 31, 2007

 

As of December 31, 2007

 

 

 

Interval
Acquisition
Corp.

 

Guarantor
Subsidiaries

 

Non-
Guarantor
Subsidiaries

 

Total
Eliminations

 

ILG
Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

$

136

 

$

69,569

 

$

77,858

 

$

—

 

$

147,563

 

Property and equipment, net

 

 

 

—

 

33,688

 

1,275

 

 

 

34,963

 

Goodwill and intangible assets, net

 

 

 

361,734

 

341,469

 

—

 

—

 

703,203

 

Investment in subsidiaries

 

 

 

535,260

 

41,533

 

—

 

(576,793

)

—

 

Other assets

 

 

 

24,632

 

23,632

 

16,071

 

(27,447

)

36,888

 

Total assets

 

 

 

$

921,762

 

$

509,891

 

$

95,204

 

$

(604,240

)

$

922,617

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

$

173

 

$

164,891

 

$

22,658

 

$

(27,447

)

$

160,275

 

Other liabilities and minority interest

 

 

 

96,909

 

122,898

 

29,168

 

—

 

248,975

 

Intercompany liabilities (receivables)

 

 

 

311,313

 

(313,158

)

1,845

 

—

 

—

 

Shareholders’ equity

 

 

 

513,367

 

535,260

 

41,533

 

(576,793

)

513,367

 

Total liabilities and shareholders’ equity

 

 

 

$

921,762

 

$

509,891

 

$

95,204

 

$

(604,240

)

$

922,617

 

 


 

Statement of income for the three months ended September 30, 2008

 

For the Three Months
Ended September 30, 2008

 

ILG

 

Interval
Acquisition
Corp.

 

Guarantor
Subsidiaries

 

Non-
Guarantor
Subsidiaries

 

Total
Eliminations

 

ILG
Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

—

 

$

—

 

$

87,791

 

$

12,964

 

$

—

 

$

100,755

 

Operating expenses

 

(4,003

)

(5,259

)

(57,556

)

(10,100

)

—

 

(76,918

)

Interest income (expense), net

 

—

 

(2,628

)

47

 

865

 

—

 

(1,716

)

Other income (expense), net

 

14,987

 

19,823

 

3,141

 

1,339

 

(37,915

)

1,375

 

Income tax benefit (provision)

 

1,534

 

3,051

 

(13,597

)

(1,963

)

—

 

(10,975

)

Minority interest

 

—

 

—

 

(3

)

—

 

—

 

(3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

12,518

 

$

14,987

 

$

19,823

 

$

3,105

 

$

(37,915

)

$

12,518

 

 

Statement of income for the three months ended September 30, 2007

 

For the Three Months Ended
September 30, 2007

 

 

 

Interval
Acquisition
Corp.

 

Guarantor
Subsidiaries

 

Non-
Guarantor
Subsidiaries

 

Total
Eliminations

 

ILG
Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

$

—

 

$

84,394

 

$

11,625

 

$

—

 

$

96,019

 

Operating expenses

 

 

 

(6,203

)

(55,446

)

(9,316

)

—

 

(70,965

)

Interest income (expense), net

 

 

 

1,654

 

(15

)

728

 

—

 

2,367

 

Other income (expense), net

 

 

 

19,340

 

1,889

 

274

 

(21,270

)

233

 

Income tax benefit (provision)

 

 

 

1,755

 

(11,477

)

(1,381

)

—

 

(11,103

)

Minority interest

 

 

 

—

 

(5

)

—

 

—

 

(5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

 

 

$

16,546

 

$

19,340

 

$

1,930

 

$

(21,270

)

$

16,546

 

 

Statement of income for the nine months ended September 30, 2008

 

For the Nine Months Ended
September 30, 2008

 

ILG

 

Interval
Acquisition
Corp.

 

Guarantor
Subsidiaries

 

Non-
Guarantor
Subsidiaries

 

Total
Eliminations

 

ILG
Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

—

 

$

—

 

$

277,441

 

$

42,435

 

$

—

 

$

319,876

 

Operating expenses

 

(7,042

)  

(15,739

)  

(176,154

)  

(31,794

)  

—

   

(230,729

) 

Interest income (expense), net

 

—

 

2,862

 

(27

)

2,471

 

—

 

5,306

 

Other income (expense), net

 

61,162

 

69,105

 

8,579

 

903

 

(138,914

)  

835

 

Income tax benefit (provision)

 

2,698

 

4,934

 

(40,724

)

(5,368

)

—

 

(38,460

)

Minority interest

 

—

 

—

 

(10

)

—

 

—

 

(10

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

$

56,818

 

$

61,162

 

$

69,105

 

$

8,647

 

$

(138,914

)

$

56,818

 

 


 

Statement of income for the nine months ended September 30, 2007

 

For the Nine Months Ended
September 30, 2007

 

 

 

Interval
Acquisition
Corp.

 

Guarantor
Subsidiaries

 

Non-
Guarantor
Subsidiaries

 

Total
Eliminations

 

ILG
Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

$

—

 

$

231,926

 

$

36,411

 

$

—

 

$

268,337

 

Operating expenses

 

 

 

(18,813

)

(138,382

)

(27,825

)

—

 

(185,020

)

Interest income (expense), net

 

 

 

5,566

 

(96

)

2,059

 

—

 

7,529

 

Other income (expense), net

 

 

 

63,251

 

6,642

 

(543

)

(69,966

)

(616

)

Income tax benefit (provision)

 

 

 

5,110

 

(36,831

)

(3,387

)

—

 

(35,108

)

Minority interest

 

 

 

—

 

(8

)

—

 

—

 

(8

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income

 

 

 

$

55,114

 

$

63,251

 

$

6,715

 

$

(69,966

)

$

55,114

 

 

Statement of cash flows for the nine months ended September 30, 2008

 

For the Nine Months Ended
September 30, 2008

 

ILG

 

Interval
Acquisition
Corp.

 

Guarantor
Subsidiaries

 

Non-
Guarantor
Subsidiaries

 

Total
Eliminations

 

ILG
Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows provided by operating activities

 

$

1,438

 

$

9,665

 

$

80,891

 

$

5,681

 

$

—

 

$

97,675

 

Cash flows provided by (used in) investing activities

 

(1,438

)

(59,691

)

(22,502

)

683

 

—

 

(82,948

)

Cash flows provided by financing activities

 

—

 

50,026

 

—

 

—

 

—

 

50,026

 

Effect of exchange rate changes on cash and cash equivalents

 

—

 

—

 

—

 

(1,945

)

—

 

(1,945

)

Cash and cash equivalents at beginning of the period

 

—

 

—

 

2,438

 

64,675

 

—

 

67,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

$

—

 

$

—

 

$

60,827

 

$

69,094

 

$

—

 

$

129,921

 

 

Statement of cash flows for the nine months ended September 30, 2007

 

For the Nine Months Ended
September 30, 2007

 

 

 

Interval
Acquisition
Corp.

 

Guarantor
Subsidiaries

 

Non-
Guarantor
Subsidiaries

 

Total
Eliminations

 

ILG
Consolidated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows provided by (used in) operating activities

 

 

 

$

(6,729

)

$

92,482

 

$

11,308

 

$

—

 

$

97,061

 

Cash flows provided by (used in) investing activities

 

 

 

6,729

 

(93,796

)

12,933

 

—

 

(74,134

)

Cash flows provided by financing activities

 

 

 

—

 

258

 

—

 

—

 

258

 

Effect of exchange rate changes on cash and cash equivalents

 

 

 

—

 

—

 

1,643

 

—

 

1,643

 

Cash and cash equivalents at beginning of the period

 

 

 

—

 

266

 

37,291

 

—

 

37,557

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of period

 

 

 

$

—

 

$

(790

)

$

63,175

 

$

—

 

$

62,385