(March 11, 2011) — In a move that caught much of the vacation ownership industry by surprise, Branson, MO-based Surrey Vacation Resorts/Grand Crowne Resorts (http://www.grandcrowneresorts.com/) is being sold to Dallas, TX-based X-Change Corporation.
The agreement to acquire Surrey Vacation Resorts was announced on March 7, 2011. The terms of the acquisition will involve a change in control of the Company and the appointment of new directors. X-Change will issue 63,283,391 shares of restricted stock to the shareholders of Surrey Vacation Resorts in exchange for 100 percent of the stock of Surrey Vacation Resorts. The Company has agreed to change its name from X-Change Corporation to Grand Crowne Resorts, Inc. The agreement is subject to approval by Surrey’s lenders prior to closing.
In anticipation of closing the acquisition, on March 9, 2011, X-Change Corp. issued a press release announcing the addition of John L. McGuire to its board of directors along with sales results for the first two months of 2011 of Surrey Vacation Resorts.
In the first two months of 2011, Surrey Vacation Resorts sold $5.8 million in timeshare vacation contracts, up from $2.6 million during the same period in 2010. Of the $5.8 million sold, $4.0 million has already closed. In 2010, 99.5% of the $2.6 million sold was closed successfully. Surrey Vacation Resorts offers interval-ownership properties in Branson, Missouri, and Pigeon Forge, Tennessee. In the past year, the Surrey expanded to Biloxi, Mississippi, which accounted for 14% of the $5.8 million sales being reported.
Financial executive John L. Maguire has served on a number of boards of directors for both public and private companies. He is a graduate of the University of Arkansas Walton School of Business. He is a CPA and a member of the American Institute of Certified Public Accountants.
About Surrey Vacation Resorts/Grand Crowne Resorts
Headquartered in Branson, MO, Surrey’s Branson-based properties include The Surrey Grand Crowne Resort, The Surrey Vacation Resort, The Carriage Place at Surrey Vacation Resort, Crowne View Heights, and The Lodges at Crowne View.
The company also has two other vacation properties in its collection that are located in popular destinations: Owners and guests can visit Biloxi, Mississippi, and stay at Ocean View Vacation Villas. Or, they can head to The Lodges at Great Smoky Mountains in Pigeon Forge, Tennessee, near Gatlinburg and the Smoky Mountains National Park.
In their 2009 audited financial statements Surrey Vacation Resorts reported net income of $1.95 million on revenues of $37.72 million, down from net income of $4.31 million on revenues of $39.80 million in 2008. At year-end 2009, Surrey reported total assets of $78.08 million, total liabilities of $58.74 million, and net worth of $19.34 million. Based on unaudited results for 2010, Surrey expects to report net income of $2.86 million on revenue of $40.53 million, a 47% increase in profitability over 2009. The Company earns approximately 66% of its revenues from activities related to the sale of VOIs under the name Grand Crowne Resorts, Inc.
Surrey Vacation Resorts is affiliated with Interval International for purposes of exchange. See http://www.grandcrowneresorts.com/
About The X-Change Corporation
The X-Change Corporation, a shell corporation founded in 1969 to create value for its shareholders by identifying, acquiring, and providing services for private companies that are good growth candidates, is a publicly traded company. In March 2010, X-Change began a restart after a period of dormancy. Management believes that the new direction indicated by the acquisition of Surrey Vacation Resorts, Inc. will better serve the Company’s shareholders.
Haviland Wright, Ph.D., X-Change’s President & Chief Executive Officer, is also President and co-founder of software developer Alta Data Solutions, Inc. and an Independent Director of Boston-based Compass Group of Mutual Funds, managed by MFS, a wholly owned subsidiary of Sun Life of Canada. He is a past director of Ventura-based software company, Elixir Technologies Corporation, where he was chairman from 2003 through 2006 and managed a successful turnaround. He is a co-founder and director of LCD display developer Nano Loa, Inc., based in Kanagawa, Japan, and he was formerly chairman and CEO of LCOS (liquid crystal on silicon) display manufacturer Displaytech, Inc. He served as chief scientist and senior vice president of Interleaf, Inc., following Interleaf’s acquisition of Avalanche Development Company, an SGML pioneer that he founded in Boulder, Colorado. Dr. Wright received his B.A. degree from the University of Pennsylvania in mathematics and history; his M.B.A. and Ph.D. from the University of Pennsylvania, The Wharton School, where his areas of concentration were accounting and systems sciences. He completed the CPA and CMA accounting certifications, has held faculty positions at the University of Colorado and the University of Denver, and he has authored numerous articles for research and industry publications.
Written by ITG staff