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 |
| Guarantor |
| Non- |
| Total |
| ILG |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
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 |
| Guarantor |
| Non- |
| Total |
| ILG |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
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 |
| ILG |
| Interval |
| Guarantor |
| Non- |
| Total |
| ILG |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
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 |
|
|
| Interval |
| Guarantor |
| Non- |
| Total |
| ILG |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
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 |
| ILG |
| Interval |
| Guarantor |
| Non- |
| Total |
| ILG |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
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 |
|
|
| Interval |
| Guarantor |
| Non- |
| Total |
| ILG |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
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 |
| ILG |
| Interval |
| Guarantor |
| Non- |
| Total |
| ILG |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
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 |
|
|
| Interval |
| Guarantor |
| Non- |
| Total |
| ILG |
| |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
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 |
|