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 June 30, 2008 and for prior periods the financial data in form and detail corresponding to the March 31, 2008 financial data previously provided.
The following tables present condensed consolidating financial information as of June 30, 2008 and for the three and six months ended June 30, 2008 for 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).
Balance sheets as of June 30, 2008
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| Interval |
| Guarantor |
| Non-Guarantor |
| Total |
| ILG |
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Current assets |
| $ | — |
| $ | 70,318 |
| $ | 91,466 |
| $ | — |
| $ | 161,784 |
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Property and equipment, net |
| — |
| 34,522 |
| 1,460 |
| — |
| 35,982 |
| |||||
Goodwill and intangible assets, net |
| 351,581 |
| 337,707 |
| — |
| — |
| 689,288 |
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Investment in subsidiaries |
| 577,089 |
| 46,684 |
| — |
| (623,773 | ) | — |
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Other assets |
| 24,632 |
| 28,343 |
| 15,827 |
| (27,448 | ) | 41,354 |
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Total assets |
| $ | 953,302 |
| $ | 517,574 |
| $ | 108,753 |
| $ | (651,221 | ) | $ | 928,408 |
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Current liabilities |
| $ | 173 |
| $ | 173,882 |
| $ | 30,821 |
| $ | (27,448 | ) | $ | 177,428 |
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Other liabilities and minority interest |
| 96,909 |
| 124,316 |
| 30,362 |
| — |
| 251,587 |
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Intercompany liabilities (receivables) |
| 356,826 |
| (357,712 | ) | 886 |
| — |
| — |
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Shareholders’ equity |
| 499,394 |
| 577,089 |
| 46,684 |
| (623,774 | ) | 499,393 |
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Total liabilities and shareholders’ equity |
| $ | 953,302 |
| $ | 517,575 |
| $ | 108,753 |
| $ | (651,222 | ) | $ | 928,408 |
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Statements of operations for the three months ended June 30, 2008
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| Interval |
| Guarantor |
| Non-Guarantor |
| Total |
| ILG |
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Revenue |
| $ | — |
| $ | 88,374 |
| $ | 14,810 |
| $ | — |
| $ | 103,184 |
|
Operating expenses |
| (5,240 | ) | (60,179 | ) | (11,419 | ) | — |
| (76,838 | ) | |||||
Interest income (expense), net |
| 4,215 |
| (41 | ) | 892 |
| — |
| 5,066 |
| |||||
Other income (expense), net |
| 20,130 |
| 2,606 |
| (9 | ) | (22,767 | ) | (40 | ) | |||||
Income tax benefit (provision) |
| 387 |
| (10,631 | ) | (1,637 | ) | — |
| (11,881 | ) | |||||
Minority interest |
| — |
| 1 |
| — |
| — |
| 1 |
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Net income |
| $ | 19,492 |
| $ | 20,130 |
| $ | 2,637 |
| $ | (22,767 | ) | $ | 19,492 |
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Statements of operations for the six months ended June 30, 2008
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| Interval |
| Guarantor |
| Non-Guarantor |
| Total |
| ILG |
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Revenue |
| $ | — |
| $ | 189,650 |
| $ | 29,471 |
| $ | — |
| $ | 219,121 |
|
Operating expenses |
| (10,481 | ) | (121,637 | ) | (21,693 | ) | — |
| (153,811 | ) | |||||
Interest income (expense), net |
| 5,491 |
| (74 | ) | 1,605 |
| — |
| 7,022 |
| |||||
Other income (expense), net |
| 47,406 |
| 5,437 |
| (436 | ) | (52,947 | ) | (540 | ) | |||||
Income tax benefit (provision) |
| 1,884 |
| (25,963 | ) | (3,406 | ) | — |
| (27,485 | ) | |||||
Minority interest |
| — |
| (7 | ) | — |
| — |
| (7 | ) | |||||
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Net income |
| $ | 44,300 |
| $ | 47,406 |
| $ | 5,541 |
| $ | (52,947 | ) | $ | 44,300 |
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Statements of cash flows for the six months ended June 30, 2008
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| Interval |
| Guarantor |
| Non-Guarantor |
| Total |
| ILG |
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Cash flows provided by operating activities |
| $ | 6,909 |
| $ | 64,268 |
| $ | 3,813 |
| $ | — |
| $ | 74,990 |
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Cash flows provided by (used in) investing activities |
| (6,909 | ) | (65,427 | ) | 5,781 |
| — |
| (66,555 | ) | |||||
Cash flows provided by (used in) financing activities |
| — |
| — |
| — |
| — |
| — |
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Effect of exchange rate changes on cash and cash equivalents |
| — |
| — |
| 660 |
| — |
| 660 |
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Cash and cash equivalents at beginning of the period |
| — |
| 2,438 |
| 64,675 |
| — |
| 67,113 |
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Cash and cash equivalents at end of period |
| $ | — |
| $ | 1,279 |
| $ | 74,929 |
| $ | — |
| $ | 76,208 |
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