EXHIBIT 3.4
LEISURE
INDUSTRIES
CORPORATION
Contact:
Kella Brown
VP, Corporate Communications
Leisure Industries Corporation
kbrown@leisureindustries.com
----------------------------
(702) 992-4272
LEISURE INDUSTRIES CORPORATION COMPLETES SALE OF VACATION INTERVAL LOAN
PORTFOLIO
SECOND TRANSACTION REMOVES AN ADDITIONAL $ 20 MM OF DEBT FROM LESR'S BALANCE
SHEET
LAS VEGAS, March 26, 2003 - Leisure Industries Corporation of America (NASDAQ:
LESR) today announced the completion of the second phase of the restructuring of
its $100 million portfolio of consumer loans. The Company sold its portfolio of
vacation interval ownership receivables held by FINOVA to Resort Finance
Corporation, for approximately $20 million. The transaction reduces the
Company's notes payable by $20 million and removes the corresponding amount of
receivables from the Company's balance sheet. This is the second of two
recently announced sales of Leisure's portfolio reducing the amount of debt on
the Company's balance sheet by approximately $45mm in total.
"Our goal to reduce our debt and to clean up the financial structure previously
faced by the Company is one step closer to completion with the closing of this
transaction," said Floyd W. Kephart, Chairman and CEO. "Once again, the work
of our President and COO, Mike Greco and Dana Myers, Sr. Vice President of
Financial Services, has made taking this additional step toward reducing our
long term debt a reality," continued Kephart.
"We continue to negotiate the final transaction related to the receivable
portfolio that we anticipate completing in the second quarter. We expect the
changes in our business allocations and re-structuring of the other areas of our
balance sheet to be completed with the current audit and these will be presented
with the filing of our annual report on April 15, 2003. It is rewarding to our
management, the shareholders, our customers and our lenders to see this kind of
progress being made," said Kephart.
"Attaining an immediate enhancement of this magnitude to the Company's financial
position is an accomplishment at any time but, in the current economic climate,
it is very rewarding," said Dana Myers, Senior Vice President of Financial
Services of Leisure Industries. "I am equally as excited about the business
potential associated with having Resort Finance Corporation as a strategic
partner. Through this alliance we have established new receivable facilities and
new working relationships," Myers continued.
Leisure Industries is a full-service, vertically-integrated vacation solutions
provider specializing in travel and tourism packages, the development and
operation of vacation ownership resorts, marketing land for use as vacation home
sites, and providing consumer financing to purchasers of vacation ownership
interests and land parcels. Leisure Industries is headquartered Las Vegas,
Nevada and has properties in Arizona, California, Nevada, New Jersey, Colorado,
Florida and Hawaii. For more information on the Leisure Industries group of
companies, or to book your dream vacation today, visit
www.leisureindustries.com.
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This press release contains "forward-looking statements" within the meaning of
the Private Securities Litigation Reform Act of 1995. Such forward-looking
statements involve known and unknown risks, uncertainties or other factors which
may cause actual results, performance or achievements of Leisure Industries
(Mego Financial) to be materially different from any future results, performance
or achievements expressed or implied by such forward-looking statements.
Factors that might cause such a difference include, but are not limited to,
those discussed in the Management's Discussion and Analysis of Financial
Condition and Results of Operations in Mego Financial's Annual Report on Form
10-KT for the year ended December 31, 2001, and in the Form 10-Q for the quarter
ended September 30, 2002, and subsequent documents filed by Mego Financial Corp.
with the Securities and Exchange Commission.