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USTRAILS INC. AND THOUSAND TRAILS, INC. ANNOUNCE SUCCESSFUL DUES PROGRAM

 DALLAS and BELLEVUE, Wash., Sept. 17 /PRNewswire/ -- USTrails Inc. (OTC: USTO) and its 80 percent owned subsidiary, Thousand Trails, Inc. (NASDAQ: TRLS), announced today that they have declared their voluntary dues increase program successful and implemented the program.
 Since January 1993, USTrails' subsidiaries, Thousand Trails and National American Corporation ("NACO"), have been requesting their campground members to increase their annual dues voluntarily. USTrails previously stated that it would not implement the program unless annual dues revenues increased by $4 million or such lesser amount as USTrails determined would be in the best interest of the members. As of today, 20,900 of Thousand Trails' members (22 percent), and 6,800 of NACO's members (11 percent), had agreed to participate in the program. Their participation is expected to increase USTrails' annual dues revenues by approximately $2.0 million, of which approximately $1.4 million is allocable to Thousand Trails. These additional dues revenues were not recognized in fiscal 1993 due to the uncertainty of the program's success at June 30, 1993. As a result, USTrails expects to recognize additional dues revenues from the program of approximately $3.0 million in fiscal 1994, of which approximately $2.1 million is allocable to Thousand Trails. USTrails incurred expenses of approximately $1.0 million in fiscal 1993 to implement the program, of which approximately $700,000 was borne by Thousand Trails. All participating members have been given until Oct. 15, 1993, to accept the final terms of the program or rescind their decision to participate.
 The membership dues increases from the voluntary dues program will improve, but not eliminate, USTrails' negative operating cash flow, which consists of the cash flow from its campgrounds and resorts, after general and administrative and net interest expenses, but before principal collections on its contracts receivable portfolio. As a result, in the Fall of 1993, USTrails intends to implement additional cost reductions, primarily within its NACO campground system. In contrast, as a result of the membership dues increases from the voluntary dues program and expense reductions implemented by management, Thousand Trails expects to achieve positive operating cash flow (as defined above) and does not anticipate making further expense reductions in the Thousand Trails campground system in fiscal 1994.
 USTrails, through its subsidiaries Thousand Trails and NACO, owns and operates a system of 65 membership-based campgrounds, which is one of the largest private campground systems in the United States. USTrails also manages timeshare facilities and owns certain real estate at eight full service resorts and provides a reciprocal use program for members of approximately 350 recreational facilities.
 -0- 9/17/93
 /CONTACT: William F. Herzog, 214-243-2228, or Walter B. Jaccard, 206-455-3155, both of USTrails/
 (USTO TRLS)


CO: USTrails Inc.; Thousand Trails, Inc. ST: Texas, Washington IN: LEI SU:

GK -- NY041 -- 3245 09/17/93 17:15 EDT
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Publication:PR Newswire
Date:Sep 17, 1993
Words:467
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