As a publicly traded company with a significant employee presence at its Los Abrigados Resort & Spa property in Sedona, ILX Resorts is one of the drivers of the local economy.

As a publicly traded company with a significant employee presence at its Los Abrigados Resort & Spa property in Sedona, ILX Resorts is one of the drivers of the local economy.

In its most recently filed 10-Q, ILX, which is headquartered in Phoenix, reported revenues for the quarter from sales of vacation ownership interests of $6.1 million, down $2 million, or 25 percent from the same quarter in 2006.

On a diluted per share basis, the company lost $0.09 per share in the quarter which ended Sept. 30 versus a gain of $0.18  a share for the same quarter of the prior year.

In the management discussion of its financial condition and results, the decrease in revenues primarily reflected reduced sales from its Sedona, Rancho Manana and San Carlos properties, and lower closing rates at the Sedona office.

The Rancho Manana sales office was permanently closed in June 2007 and its results are included in the prior year’s quarter.

In addition to its sales of timeshare units, the company provides purchase money financing to the buyers of its resorts and also derives rental income from unused and unsold units as well as from the sale of food and beverages.

Although the micro-cap stock had been trading above $8 a share during the calendar year, and briefly spiked to $13 a share in July, the stock has since fallen below $4, a 52-week low.

The company has approximately 3.5 million shares outstanding and currently offers a $0.50 dividend per year that is paid out quarterly.

It is traded on the American Stock Exchange, an auction market that has a minimum shareholder equity requirement of $4 million.

Joseph P. Martori is ILX’s chairman and chief executive officer.

Martori is also its

largest shareholder, currently

controlling over 600,000 shares, or 18 percent of those outstanding through his private holdings as well as through his investment company, Martori Enterprises.

Martori’s total holdings have decreased throughout the year as a result of charitable contributions from his corporation and gifts of stock to family members from his personal account.

However, Martori’s contributions and gifts of stock in Fiscal Year 2007 are consistent in size with those of prior years, according to Chief Financial Officer Margaret Eardley.

“Some of Mr. Martori’s stock was purchased by the

company’s Stock Bonus Plan for future use as a way to retain and reward key officers and employees,” Eardley said.

According to Eardley and a press release issued in March of this year, Martori has no near-term plans for retirement.

“The disappointing third quarter results are in large part due to significantly reduced closing rates at our Sedona sales office in July and August,” Martori said in the company’s Form 8-K/A issued, Friday, Dec. 7.

“We have effected cost reductions in general and administration and other operations which will further positively impact profitability,” Eardley said.

“We have not decreased our staffing in Sedona to any significant degree,” Eardley said. “However, we have taken cost containment measures across the board, including in our Phoenix office.”

ILX has an average daily trading volume of under 7,000 shares and does not have any financial analysts who publish publicly-accessible research.

The largest institutional holder is Dimensional Fund Advisors, a firm that owns 260,000 shares, or 7 percent of the outstanding, as of the end of September.

In addition to the company’s operations in Sedona, ILX has seven other resorts in Arizona, plus operations in Indiana, Colorado, Nevada and Mexico.