SVL $1.35 HUGE QUARTER JUST REPORTED...33c/SHARE NET INCOME
SVL is by far the most undervalued AMEX stock trading at a P/E of less than 3!! With sales of almost $200M/year, SVL is trading at a ridiculous P/S of about 0.25. The float consists of about 25M shares. The recent listing of SVL shares in the AMEX (9/2005) will bring greater visibility to SVL.
HERE IS TODAY'S SVL EARNINGS RELEASE:
Silverleaf Resorts, Inc. Reports Results for the 2005 Third Quarter
Tuesday November 1, 8:45 am ET
DALLAS--(BUSINESS WIRE)--Nov. 1, 2005--Silverleaf Resorts, Inc. (AMEX:SVL - News) today announced its financial results for the third quarter and nine months ended September 30, 2005.
Third Quarter 2005 Highlights:
Total revenue increased 30% to $62.3 million
Vacation interval sales increased 14% to $41.8 million
Net income increased 219% to $12.9 million
Net income for the third quarter increased to $12.9 million, or $0.33 per diluted share, compared to net income of $4.0 million, or $0.10 per diluted share, during the third quarter of 2004. Total revenue for the period increased to $62.3 million compared to $47.8 million during the same period in 2004. Revenue for 2005 third quarter includes a gain on sale of notes receivable of $5.8 million, which was previously disclosed on July 28, 2005, and gain on sale of land of $3.6 million. Net of tax, these items and a $.9 million gain on sale of utility assets contributed $7.2 million to the net income during the third quarter, or $0.18 per diluted share. Excluding these gains, the Company's revenue for the third quarter increased 10.7% over the quarter ended September 30, 2004 while net income and EPS increased 40.7% and 50%, respectively.
Vacation interval sales increased 14% to $41.8 million during the third quarter of 2005 compared to $36.7 million during the third quarter of 2004. The increase in sales in the quarter ended September 30, 2005 compared to 2004 is due primarily to an increase in sales to existing owners, which contributed to a reduction in sales and marketing expense from 49.5% of sales in the third quarter of 2004 to 46.3% in 2005, as marketing expenses are lower for these sales. In addition, the provision for uncollectible notes was 15% of vacation interval sales for the third quarter of 2005, down from 20% in 2004, as a result of better performance of notes originated since the company began focusing on selling to customers with better credit characteristics.
"These results clearly reflect that we are successfully executing our two-pronged business strategy -- 1) using our internally developed best customer model to identify qualified new buyers and 2) continuing to penetrate our existing owner base through sales of additional products," commented Robert E. Mead, chairman and CEO. "This has resulted in the reduction of our sales and marketing expense ratio and an increase in net income and EPS. Our current plan includes building out our existing properties, strategically adding new resorts in select high-growth markets, and creating vacation showrooms in selected metropolitan markets within driving distance of our resorts. As a result, we believe that we will be able to maintain vacation interval sales growth. During the quarter we also completed our first securitization transaction, which we believe has afforded us greater future access to the capital markets."
For the nine months ended September 30, 2005, net income was $19.6 million, or $0.50 per diluted share, compared to net income of $9.4 million during the first nine months of 2004 or $0.24 per diluted share in the first nine months of 2004. Total revenue for the period was $153.7 million, as compared to $138.4 million during the first nine months of 2004. Vacation interval sales were $109.3 million for the nine month period ended September 30, 2005, a $3.4 million increase from vacation
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