Diamond Resorts Corporation Announcing its Results for the Quarter Ended September 30, 2012

Diamond Resorts Corporation, together with Diamond Resorts Parent, LLC and its subsidiaries (“Diamond” or the “Corporation”), has announced results for the quarter ended September 30, 2012.  “We remain pleased with the continued year over year improvement in our operating performance and continue to focus on the growth of our integrated hospitality platform,” said David F. Palmer, President and Chief Financial Officer.

Quarter Ended September 30, 2012 Financial Results

Adjusted EBITDA for Diamond Resorts Parent, LLC and restricted subsidiaries increased $9.1 million, or 30.8%, to $38.8 million for the quarter ended September 30, 2012 from $29.7 million for the quarter ended September 30, 2011.  [member]

After including the impact of the unrestricted subsidiaries, Adjusted EBITDA for the consolidated operations of Diamond, inclusive of a $5.0 million charge related to termination payments in connection with the Tempus Acquisition, increased $6.0 million, or 22.7% to $32.4 million for the quarter ended September 30, 2012 from $26.4 million for the quarter ended September 30, 2011.

Vacation Interest Sales Results for the Quarter Ended September 30, 2012

Vacation Interest sales for Diamond increased $29.4 million, or 48.8%, to $89.6 million for the quarter ended September 30, 2012 from $60.2 million for the quarter ended September 30, 2011. This increase in Vacation Interest sales revenue was generated by sales growth on a same-store basis and the revenue contribution from our PMR sales centers, which commenced operations in May 2012. On a consolidated basis, we closed 7,647 Vacation Interest transactions and recorded a sales price of $12,414 per transaction for the quarter ended September 30, 2012, or 1,802 more transactions and $1,791 more per transaction as  compared to the quarter ended September 30, 2011.

Diamond’s advertising, sales and marketing expense as a percentage of Vacation Interest sales was 55.3% for the quarter ended September 30, 2012 compared to 57.3% for the quarter ended September 30, 2011. The decrease of such costs as a percentage of Vacation Interest sales revenue was primarily due to improved absorption of fixed costs through increased sales efficiencies.

Management and Member Services Results for the Quarter Ended September 30, 2012

Revenue from management and member services for Diamond increased $4.0 million, or 15.4%, to $30.0 million for the quarter ended September 30, 2012 from $26.0 million for the quarter ended September 30, 2011.  Management fees increased as a result of increases in operating costs at the resort level, which generated higher same-store management fee revenue under our cost-plus management agreements, and the addition of the managed properties from the Tempus Resorts Acquisition and the PMR Acquisition. In addition, we entered into a sales and marketing fee-for-service arrangement with a third-party resort operator, which began to generate commission and management fee revenue towards the end of third quarter of 2011.

To read the full report, please click here. [/member]

Karma Resorts