Membership-based campground operator Thousand Trails Inc. reported higher sales and earnings for the third quarter of its fiscal year 2003, which ended March 31.
The American Stock Exchange-listed company, which expects to be taken private during the summer, reports its earnings increased 36% in the period to $2.9 million, compared with $2.2 million in the same period a year earlier.
During the nine months ended March 31, Thousand Trails earnings increased 17% to $7 million, compared with $6 million a year earlier.
The company’s third-quarter total revenue increased 8% to $21.3 million and its total revenue for the nine months ended March 31 grew by 6% to $69 million.
“We had good performance in the quarter in new membership originations and dues collections,” said Bill Shaw, president and CEO. “Our average sales price on new membership originations was $300 higher than in the third quarter last year, and we collected about $350,000 more in dues in the third quarter this year than we did last year.”
About two weeks ago, Thousand Trails revealed it expects to be taken private by investment firm Kohlberg & Co. LLC, either in July or August. Thousand Trails stockholders would be paid $14.50 a share if the deal goes through.
Thousand Trails stock closed at $9.35 on April 29, the last stock market trading day before the proposed transaction was announced. On Monday (May 12), Thousand Trails shares closed at $14.22.
The deal is almost a certainty because Shaw and Carl Marks Strategic Investments LP own 62% of Thousand Trails shares and they will vote in favor of the transaction if no major changes are made before it is finalized.
Thousand Trails has 112,000 members who can use 59 membership-based camping preserves in 17 states and British Columbia, Canada. The company also has a reciprocal-use program for members of around 280 recreational facilities and its manages 240 public campgrounds for the U.S. Forest Service and other entities.