Diamond Resorts International Announces Exploration of Strategic Alternatives
February 24 2016 - 3:08PM
Business Wire
The Board of Directors (the “Board”) of Diamond Resorts
International, Inc. (NYSE:DRII) (“the Company”) announced today
that it has formed a Committee of Independent Directors to explore
strategic alternatives to maximize shareholder value. The Committee
has retained Centerview Partners LLC as its financial advisor.
David Palmer, President and Chief Executive Officer, Diamond
Resorts International, said, “Today we announced our 10th straight
quarter of record financial performance and provided financial
guidance that indicates another record year in 2016. Yet there
continues to be a significant dislocation between the intrinsic
value we have built in this business and the market value of our
public equity. For this reason, our Board of Directors is
initiating a process to explore and evaluate a wide range of
strategic alternatives to unlock value for shareholders. As we
undertake this process, we will continue our focus on providing
exceptional customer service and the execution of our growth
initiatives."
There is no assurance that this exploration will result in any
strategic alternatives being announced or consummated. The Company
does not intend to discuss or disclose further developments during
this process unless and until the Board has approved a specific
action or otherwise determined that further disclosure is
appropriate.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements,
including statements related to the Company’s exploration of
strategic alternatives and other statements regarding the Company’s
current expectations, prospects and opportunities. These
forward-looking statements are covered by the "Safe Harbor for
Forward-Looking Statements" provided by the Private Securities
Litigation Reform Act of 1995. The Company has tried to identify
these forward looking statements by using words such as “expect,”
“anticipate,” “estimate,” “plan,” “will,” “would,” “should,”
“could,” “forecast,” “believe,” “guidance,” “projection,” “target”
or similar expressions, but these words are not the exclusive means
for identifying such statements. The Company cautions that a number
of risks, uncertainties and other factors could cause the Company's
actual results to differ materially from those expressed in, or
implied by, the forward-looking statements, including, without
limitation, adverse trends or disruptions in economic conditions
generally or in the vacation ownership, vacation rental or travel
industries; adverse changes to, or interruptions in, relationships
with the Company's affiliates and other third parties, including
termination of the Company's hospitality management contracts; the
Company’s ability to integrate operations and personnel associated
with its strategic acquisitions and any related increases in
expenses and disruption of the Company’s ongoing business; the
Company's ability to maintain an optimal inventory of vacation
ownership interests for sale overall, as well as in specific
Collections (including by building or acquiring new inventory in
reliance upon arrangements with third-party financial sponsors);
the market price of the Company's stock prevailing from time to
time; alternative uses of cash and investment opportunities pursued
by the Company from time to time; the Company’s compliance with the
financial and other covenants contained in the credit agreement
with respect to the Company’s senior secured credit facility; the
Company's ability to sell, securitize or borrow against its
consumer loans; decreased demand from prospective purchasers of
Vacation Interests; adverse events or trends in vacation
destinations and regions where the resorts in our network are
located; changes in the Company's senior management; the Company's
ability to comply with regulations applicable to the vacation
ownership industry; the effects of the Company's indebtedness and
its compliance with the terms thereof; the Company's ability to
successfully implement its growth strategy; and the Company's
ability to compete effectively. With respect to the Company’s
exploration of strategic alternatives, there is no assurance that
the process will result in any transaction or other action by the
Company, that any transaction or other action will be consummated,
or that any transaction or other action will maximize stockholder
value. Potential risks and uncertainties related to strategic
alternatives include, among others, the impact of the announcement
of the exploration of strategic alternatives on the Company's
business, its financial and operating results and its employees,
suppliers and customers (in particular, HOAs and prospective
purchasers of vacation ownership interests); factors affecting the
feasibility and timing of any transaction or other action,
including, without limitation, required third-party consents and
regulatory approvals; the ability to identify and close any
transaction; and risks related to realization of the expected
benefits of any transaction or other action to the Company and its
stockholders. For a detailed discussion of factors that could
affect the Company's future operating results, please see the
Company's filings with the Securities and Exchange Commission,
including the disclosures under “Risk Factors” in those filings.
Except as expressly required by the federal securities laws, the
Company undertakes no obligation to update or revise any
forward-looking statements, whether as a result of new information,
changed circumstances or future events or for any other reason.
About Diamond Resorts International®
Diamond Resorts International® (NYSE: DRII), with its network of
more than 375 vacation destinations located in 35 countries
throughout the continental United States, Hawaii, Canada, Mexico,
the Caribbean, South America, Central America, Europe, Asia,
Australasia and Africa, provides guests with choice and flexibility
to let them create their dream vacation, whether they are traveling
an hour away or around the world. Our relaxing vacations have the
power to give guests an increased sense of happiness and
satisfaction in their lives, while feeling healthier and more
fulfilled in their relationships, by enjoying memorable and
meaningful experiences that let them Stay Vacationed.™
Diamond Resorts International® manages vacation ownership
resorts and sells vacation ownership points that provide members
and owners with Vacations for Life® at over 375 managed and
affiliated properties and cruise itineraries.
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version on businesswire.com: http://www.businesswire.com/news/home/20160224006515/en/
Media:Diamond Resorts CorporationStevi Wara, 702-823-7069Fax:
702-684-8705media@diamondresorts.comorInvestors:Sloane &
CompanyErica Bartsch, 212-446-1875ebartsch@sloanepr.com
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