Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - EQUITY LIFESTYLE PROPERTIES INC | c61854e8vk.htm |
Exhibit 99.1
News Release
CONTACT:
|
Michael Berman | FOR IMMEDIATE RELEASE | ||
| (312) 279-1496 | DECEMBER 15, 2010 |
Equity LifeStyle Properties Updates Fourth Quarter 2010
Non-cash charge to write-off goodwill
Non-cash charge to write-off goodwill
CHICAGO, IL — DECEMBER 15, 2010 — Equity LifeStyle Properties, Inc. (NYSE:ELS) announced
today that the Company will incur a non-cash charge related to the write-off of goodwill in the
fourth quarter of 2010 of approximately $3.6 million, or $0.10 per share. The goodwill was
recorded in connection with the Company’s August 2009 acquisition of a small Florida internet and
media based advertising business. The business operates a professional call center to promote
advertising and resale brokerage services for the sale of campground memberships and vacation
ownership intervals.
A primary purpose of this acquisition was to consolidate most of the Company’s call center
operations at this location. Overall call center activity improved in 2010 due in part to increased
RV resort reservations and the rollout of new low cost membership products. The Company is
evaluating the sale to a third party of the advertising and resale brokerage services.
Alternatively, the Company may transfer these services to another subsidiary that operates a
reciprocal use campground membership business or cease certain operations. The net income from the
advertising and resale brokerage services in 2010 is expected to be approximately $0.3 million.
In light of the Company and its Board of Director’s objective of full and transparent
disclosure and due to the uncertainty in valuing the advertising and resale brokerage services, the
Company has decided to recognize a non-cash charge for the goodwill allocated to the acquisition.
As a result of the charge, fourth quarter net income will be reduced by approximately $3.6 million,
or $0.10 per share. Excluding this item, the Company reiterates its previously announced 2010 and
2011 earnings guidance.
This press release includes certain “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995. When used, words such as “anticipate,” “expect,”
“believe,” “project,” “intend,” “may be” and “will be” and similar words or phrases, or the
negative thereof, unless the context requires otherwise, are intended to identify forward-looking
statements. These forward-looking statements are subject to numerous assumptions, risks and
uncertainties, including, but not limited to:
| • | our ability to control costs, real estate market conditions, the actual rate of decline in customers, the actual use of sites by customers and our success in acquiring new customers at our Properties (including those recently acquired); | ||
| • | our ability to maintain historical rental rates and occupancy with respect to Properties currently owned or that we may acquire; | ||
| • | our assumptions about rental and home sales markets; | ||
| • | in the age-qualified Properties, home sales results could be impacted by the ability of potential homebuyers to sell their existing residences as well as by financial, credit and capital markets volatility; | ||
| • | results from home sales and occupancy will continue to be impacted by local economic conditions, lack of affordable manufactured home financing and competition from alternative housing options including site-built single-family housing; | ||
| • | impact of government intervention to stabilize site-built single family housing and not manufactured housing; | ||
| • | the completion of future acquisitions, if any, and timing with respect thereto and the effective integration and successful realization of cost savings; | ||
| • | ability to obtain financing or refinance existing debt on favorable terms or at all; | ||
| • | the effect of interest rates; | ||
| • | the dilutive effects of issuing additional common stock; | ||
| • | the effect of accounting for the sale of agreements to customers representing a right-to-use the Properties under the Codification Topic “Revenue Recognition;” and | ||
| • | other risks indicated from time to time in our filings with the Securities and Exchange Commission. |
These forward-looking statements are based on management’s present expectations and
beliefs about future events. As with any projection or forecast, these statements are inherently
susceptible to uncertainty and changes in circumstances. The Company is under no obligation to, and
expressly disclaims any obligation to, update or alter its forward-looking statements whether as a
result of such changes, new information, subsequent events or otherwise.
Equity LifeStyle Properties, Inc. owns or has an interest in 307 quality properties in 27
states and British Columbia consisting of 110,984 sites. The Company is a self-administered,
self-managed, real estate investment trust (REIT) with headquarters in Chicago.