ILX Resorts looking for rebound with Puerto Penasco office

Both net income and revenue fell in the second quarter at vacation-ownership company ILX Resorts Inc.

The Phoenix company reported net income of $142,000 or 4 cents per share, compared with net income of $1.05 million or 30 cents per share in second-quarter 2006. Revenue for the three months ended June 30 was $12.6 million compared with $15.3 million for the comparable period in 2006.

In its earnings announcement, ILX (AMEX:ILX) said the decrease in revenue reflects reduced sales at the its Sedona sales office as well as unprofitable operation of its Rancho Mañana sales office prior to settlement of related litigation and its close in June. Second-quarter results also reflect startup expenses of a Puerto Penasco sales office.

“With the distraction and cost of the Rancho litigation behind us, we are focused on increasing profitability in our core business. The closure of the Rancho Mañana sales office will have an immediate positive effect on earnings,” said Joe Martori, chairman and chief executive, in a statement. “Changes in sales management at the Sedona sales office are in progress and the Puerto Peñasco sales office is in the process of a soft opening, with initial sales to be recognized in the third quarter.”

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