Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Diamond Resorts Corp | d241064d8k.htm |
 October 2011
Exhibit 99.1 |
 1
Management Presenter
David F. Palmer
President & Chief Financial Officer |
 2
Company Overview
Diamond Resorts is a branded resort management company that operates one of the
largest vacation-ownership networks in the world
Santa Barbara Golf and Ocean
Club –
Canaries, Spain |
 3
207 Branded and Affiliated Resorts
Lake Tahoe Vacation Resort –
South Lake Tahoe, California |
 4
28 Countries
Broome Park Golf and Country
Club –
Kent, United Kingdom |
 5
Approximately 27,000 Beds System Wide
Polo Towers Villas –
Las
Vegas, Nevada |
 6
Approximately 418,000 Owner-Families |
 Diamond’s Global Resort Network
7 |
 8
Global Market Leader Measured by Owner-
Families and Number of Resorts
Vacation Ownership Operators by Resorts / Location
Source:
Vacation
Ownership
World
Magazine,
December
2010.
Company
reports
and
industry
websites
Vacation Ownership Operators by Owner-Families
Source:
Company reports and industry websites.
Note:
Metrics are as of year-end 2010 for all operators, except for Starwood and
Hyatt, which are as of year-end 2008 and Diamond Resorts, which are as of
September 2010. |
 9
Business Segments
Hospitality and Resort Management Services
Marketing & Sales of Vacation Interests
Consumer Financial Services |
 10
Hospitality and Management Services
Manage 71 resort properties globally and provide access to 136 affiliates
Manage members of THE Club
Evergreen management contracts yield highly predictable, contractual cash
flow -
Automatic renewals
-
Management fees are typically cost plus 10%-15%
-
Maintenance CapEx are HOA responsibility and paid by owners
No ADR or occupancy risk associated with management fee income
Since acquisition, Diamond has never been terminated as manager and has added
several new contracts
HOA fees are collected in advance
-
Approximately 78% collected by the end of February each year
-
Cash is held in HOA accounts managed by Diamond reducing collectability risk
A majority of EBITDA contribution with no material overhead or working
capital |
 11
Marketing & Sales of Vacation Interests
Diamond markets and sells vacation interests in the form of points
-
Flexibility to use points when and where the owner wants
-
Not tied to fixed interval
-
Members can also utilize their points as currency for services such as airline
tickets, cruises, etc. Diamond sells vacation interests through individual
sales presentations: -
37 sales centers world wide
-
Tour flow based on data driven direct marketing
-
Manage cost per tour
-
Conversion % by tour channel
-
Transaction size
Self-Sustaining Inventory Model
-
Focused
on
selling
recaptured
inventory
–
current
sales
level
supported
without
need
to
build
new
inventory
-
During each of the past two years, we have recovered 3% of our previously sold
VI’s |
 12
Consumer Financial Services
Diamond maintains a vertically integrated consumer finance operation
-
Risk-based pricing model based on an obligor's FICO score and credit
report Since October 2008:
-
Consumer receivables generated have had a weighted average FICO score of 759
-
Only approximately 30% of total sales have relied on Diamond’s
financing -
Average combined equity contribution of 40%
Diamond maintains approximately $105 million of non-recourse receivables
financing facilities with more than $70 million of capacity available
As of June 30, 2010, Diamond services a portfolio of approximately 39,000 loans
and approximately $326 million |
 13
Company Initiatives
Optimizing sales and marketing platform:
New sales and marketing leadership
Increasing average transaction size
Investment in marketing pipeline and platform
Maximize
operating
leverage
–
approximately
35-40%
contribution
to
EBITDA
per
dollar
of
VI sales growth
Recent and future acquisitions:
ILX acquired October 1, 2010
Tempus acquired July 1, 2011
Soon to announce third acquisition
Minimal balance sheet risk-
operating partner strategy |
 Forward-Looking Statements
Important
Note
Regarding
Forward-Looking
Statements:
Statements made in this presentation which are not purely historical are forward-looking
statements, as defined in the Private Securities Litigation Reform Act of 1995. This includes any
statements regarding management’s plans, objectives, or goals for future operations, products
or services, and forecasts of its revenues, earnings, or other measures of performance.
Forward- looking statements are based on current management expectations and, by their nature,
are subject to risks and uncertainties. These statements may be identified by the use of words
such as “believe”, “expect”, “anticipate”, “plan”,
“estimate”, “should”, “will”, “intend”, or similar
expressions. Outcomes related to such statements are subject to numerous risk factors and
uncertainties including those listed in the company’s prospectus filed with the SEC pursuant to
Rule 424(b) of the Securities Act of 1933 on July 8, 2011, and any subsequent Form
10-Q or Form 10-K.
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