Bluegreen Announces Second Quarter Financial Results; Pre-Tax Income Up 182%; Net Income Rises 129%.Business Editors BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla.--(BUSINESS WIRE)--Oct. 25, 2001 Bluegreen Corporation (NYSE NYSE See: New York Stock Exchange : BXG), a leading U.S. developer and marketer of drive-to timeshare A form of shared property ownership, commonly in vacation or recreation condominium property, in which rights vest in several owners to use property for a specified period each year. resorts, golf communities and residential land, today announced financial results for the second quarter of fiscal 2002 (see attached tables), highlighted by higher total operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. , improved operating efficiencies, and triple-digit percentage increases in pre-tax income and net income from the same period last year. Pre-tax income increased 182% to $7.8 million from $2.8 million for the same period last year. For the fiscal 2002 six-month period, pre-tax income more than doubled to $14.5 million from $7.2 million for the comparable period of fiscal 2001. Net income for the second quarter of fiscal 2002 increased 129% to $4.6 million, or $.17 per share, from $2.0 million, or $.08 per share, for the same period last year. Fiscal 2002 second quarter net income is Bluegreen's highest quarterly net income since the second quarter of fiscal 2000, which ended October 3, 1999. Net income for the first half of fiscal 2002 rose 74% to $8.7 million, or $.32 per share, from $5.0 million, or $.20 per share, for the same period one year ago. Timeshare sales for the second quarter were $41.3 million as compared to $44.4 million in the second quarter of fiscal 2001, due primarily to the closings of two of the Company's off-site sales offices prior to the second quarter of fiscal 2002. These offices were closed due to market saturation In economics, "market saturation" is a term used to describe a situation in which a product has become diffused (distributed) within a market; the actual level of saturation can depend on consumer purchasing power; as well as competition, prices, and technology. and diminished di·min·ish v. di·min·ished, di·min·ish·ing, di·min·ish·es v.tr. 1. a. To make smaller or less or to cause to appear so. b. profitability. Despite the decrease in sales, the operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of the Resorts Division increased by 37% during the second quarter of fiscal 2002 from the comparable prior year period. Timeshare sales for the first half of fiscal 2002 were $78.6 million versus $79.7 million for the same period last year. Land (lot) sales for the second quarter of fiscal 2002 increased 32% to $27.9 million from $21.2 million for the same period last year. Higher sales were due primarily to the growth of the Company's golf course communities with the fiscal 2001 opening of sales at the Preserve at Jordan Lake Jordan Lake is a man-made lake and reservoir in central North Carolina within the New Hope River Valley, lying mainly within northeastern Chatham County. The lake was initially constructed for the purpose of flood control downstream on the Cape Fear River, but now also serves as a near the Raleigh-Durham area of North Carolina North Carolina, state in the SE United States. It is bordered by the Atlantic Ocean (E), South Carolina and Georgia (S), Tennessee (W), and Virginia (N). Facts and Figures Area, 52,586 sq mi (136,198 sq km). Pop. . Land (lot) sales for the first six months of the new fiscal year rose 4% to $50.8 million from $49.0 million for the same period one year ago. George F. Donovan, President and Chief Executive Officer of Bluegreen, commented, "Our second quarter results reflect the continued success of our previously announced strategic business plan, as well as the popularity of our drive-to timeshare resort properties and land offerings. Our strategic business plan, which we first reported in the third quarter of fiscal 2001, has produced stronger operating results and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. year-over-year comparisons." To illustrate his point, Mr. Donovan noted that, although timeshare sales decreased during the second quarter of fiscal 2002 from the same period last year, selling, general and administrative expense ("S,G&A") for this period declined in both dollars and as a percentage of total operating revenues when compared to the same period one year ago, while net margins during the second quarter of fiscal 2002 more than doubled. S,G&A for the second quarter of fiscal 2002 fell to 47% of total operating revenues versus 55% of total operating revenues for the same period last year. Conversely con·verse 1 intr.v. con·versed, con·vers·ing, con·vers·es 1. To engage in a spoken exchange of thoughts, ideas, or feelings; talk. See Synonyms at speak. 2. , net income as a percentage of total operating revenues increased to 6% from 3% of total operating revenues for the second quarter of fiscal 2001. Mr. Donovan continued, "Over the past year, we have taken several steps designed to improve operating efficiencies, enhance profitability and maximize return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). , while focusing on ways to leverage the benefits being produced as the Company reaches critical mass in its timeshare division. Among other things, we have implemented what we believe is a lower cost/higher return approach to marketing, moved to eliminate high-cost/low reward programs, internalized many of our operational activities and revised our compensation structure. Of course, we continue to provide the highest level of vacation and lifestyle experiences through our unwavering commitment to quality and customer service. "Although we are proud of these improved results and are confident in our future, we are not content to rest on our recent successes. Our commitment to continual improvement Continual Improvement (also called incremental improvement or staircase improvement) is a process or productivity improvement tool intended to have a stable and consistent growth and improvement of all the segments of a process or processes. is increasingly vital during this period of economic uncertainty. Through a variety of marketing programs, we are working to leverage our 70,000-member owner base into a valuable off-balance sheet asset that we believe can produce increased revenues at a much lower cost than marketing to new customers. To attract new owners, we are placing greater emphasis on permission marketing and strategic alliances. Per our previously announced agreement, we are also are currently rolling out on-site sales centers at the 13 Bass Pro Shops Bass Pro Shops is a privately held sporting goods and outdoor goods store headquartered in Springfield, Missouri. The original Outdoor World store, referred to as the "Grand Daddy" is located at the corner of Sunshine and Campbell in Springfield. across the country in order to sell mini-vacation packages to Bass Pro customers. We expect that these sales will generate lower-cost prospects for the Company's timeshare sales offices. "Assisting us in our efforts is the fact that our timeshare resorts (excluding Aruba) are located in a variety of popular drive-to destinations. Moreover, the flexibility of our Vacation Club allows our 70,000 owners to make reservations at any one of our 32 owned and managed resorts. This convenience allows our owners to enjoy a family vacation while, if they choose, remaining closer to home." Mr. Donovan concluded by discussing Bluegreen's financial position, highlighted by a book value at September 30, 2001 of $6.00 per share and a debt-to-equity ratio debt-to-equity ratio The relationship between long-term funds provided by creditors and funds provided by owners. A firm's debt-to-equity ratio is calculated by dividing long-term debt by owners' equity. Both items are shown on the balance sheet. of approximately 1:49:1. He also noted that Bluegreen continues to lead the industry in securing innovative and attractive financing, as evidenced by its recently announced 364-day, $75 million revolving timeshare receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed purchase facility with Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. . Bluegreen completed the initial sale under this facility in September 2001. Bluegreen is one of the leading companies engaged in the acquisition, development, marketing and sale of timeshare resorts, golf communities and residential land. The Company's timeshare resorts are located in a variety of popular vacation destinations including Orlando, Florida The city of Orlando is a major city in central Florida and is the county seat of Orange County, Florida. According to the 2000 census, the city population was 185,951. A 2006 U.S. ; the Smoky Mountains Smoky Mountains: see Great Smoky Mountains. of Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. ; Myrtle Beach, South Carolina Myrtle Beach is a city and in Horry County, South Carolina, United States. It is part of the Grand Strand, a stretch of beaches along the South Carolina coastline, and the combined Myrtle Beach-Conway-North Myrtle Beach MSA. ; Charleston, South Carolina South Carolina, state of the SE United States. It is bordered by North Carolina (N), the Atlantic Ocean (SE), and Georgia (SW). Facts and Figures Area, 31,055 sq mi (80,432 sq km). Pop. (2000) 4,012,012, a 15. ; Branson, Missouri Branson is a city in Taney County, Missouri, United States. It was named for Rueben Branson, postmaster and operator of a general store in the area in the 1880s. [2]Historically, Branson was a small city. ; Wisconsin Dells, Wisconsin Wisconsin Dells is a city located in south-central Wisconsin, with a population of 2,418 as of the 2000 census. Wisconsin Dells is located partially within four counties: Adams County, Columbia County, Juneau County, Sauk County. ; Gordonsville, Virginia Gordonsville is a town in Orange County, Virginia, in the United States. As of the 2000 census, the town population was 1,498. History Nathaniel Gordon purchased 1,350 acres in 1787 and in 1794, or possibly earlier, applied for and was granted a license to operate a ; Ridgedale, Missouri; Surfside, Florida |CITIZEN'S BLOG = [2] Surfside is a town in Miami-Dade County, Florida, United States. The population was 4,909 at the 2000 census. As of 2005, the population recorded by the U.S. Census Bureau is 4,710. ; and Aruba, while its land operations are predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. located in the Southeastern and Southwestern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. and the Company desires to take advantage of the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 in connection with these statements. Statements made by George Donovan and any other statements contained herein that are not statements of historical fact may be deemed forward-looking statements. The words "believe," "expect," "intend," "anticipate," "project," "may," "should," "estimate," "plan" and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. The Company does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements are based on current expectations and assumptions and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and many of which are beyond the Company's control. Future events, industry trends and actual results could differ materially from those set forth in, contemplated by, or underlying such forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, actual results for future periods may differ from those estimated, consumer demand may be less than anticipated, regulatory changes, changes in national or regional economic conditions that can affect the real estate market, risks associated with a large investment in real estate, shortages of available inventory, the risk that the Company will not be able to borrow under credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities , make purchases under the timeshare receivables purchase facility referred to in this release or have sufficient outstanding sources of financing to satisfy its needs, the strategic business plan referred to in this release will not be successfully implemented and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , its most recent quarterly report on Form 10-Q Form 10-Q See 10-Q. and the Form 10-Q to be filed on or about November 14, 2001. Given these risks and uncertainties, investors are cautioned not to place undue reliance on such forward-looking statements and no assurances can be given that such statements will be achieved.
BLUEGREEN CORPORATION
Consolidated Statements of Income
(In 000's, Except Per Share Data)
(Unaudited)
Three Months Ended Six Months Ended
------------------ ----------------
September 30, October 1, September 30, October 1,
2001 2000 2001 2000
---- ---- ---- ----
REVENUES:
Timeshare
sales $ 41,312 $ 44,409 $ 78,574 $ 79,718
Lot sales 27,923 21,190 50,844 49,046
----------- ----------- ----------- ------------
Total sales 69,235 65,599 129,418 128,764
Other resort
and golf
operations
revenue 6,987 7,070 13,577 13,830
Interest income 4,017 5,317 8,079 9,575
Gain on sale of
notes
receivable 1,051 - 2,029 -
Other income 210 - - 122
----------- ----------- ----------- -----------
Total
operating
revenues 81,500 77,986 153,103 152,291
----------- ----------- ----------- -----------
EXPENSES:
Cost of sales:
Timeshare
cost of
sales 9,741 9,380 18,088 17,288
Lot cost of
sales 14,337 11,515 26,061 25,491
----------- ----------- ----------- -----------
Total cost of
sales 24,078 20,895 44,149 42,779
Cost of other
resort and
golf operations 6,202 6,620 11,895 13,214
Selling, general
and
administrative
expense 38,496 42,568 72,406 79,328
Interest expense 3,362 3,623 7,097 7,264
Provision for
loan losses 1,605 1,456 2,895 2,491
Other expense - 71 194 -
----------- ----------- ----------- -----------
Total operating
expenses 73,743 75,233 138,636 145,076
----------- ----------- ----------- -----------
Income before
taxes 7,757 2,753 14,467 7,215
Provision for
income taxes 2,986 1,060 5,570 2,778
Minority
interest
in income
(loss)
of
consolidated
subsidiary 194 (308) 186 (576)
----------- ----------- ----------- -----------
Net income $ 4,577 $ 2,001 $ 8,711 $ 5,013
=========== =========== =========== ===========
Net income per
share:
Basic: $ 0.19 $ 0.08 $ 0.36 $ 0.21
=========== =========== =========== ===========
Diluted: $ 0.17 $ 0.08 $ 0.32 $ 0.20
=========== =========== =========== ===========
Weighted
average
number
of common
and common
equivalent
shares:
Basic 24,235 24,226 24,212 24,293
=========== =========== =========== ===========
Diluted 29,978 25,857 29,947 25,940
=========== =========== =========== ===========
BLUEGREEN CORPORATION
Condensed Consolidated Balance Sheets
(in 000's)
September 30, April 1,
2001 2001
---- ----
(Unaudited)
ASSETS
Cash and cash
equivalents $ 38,635 $ 40,016
Contracts receivable,
net 14,723 18,507
Notes receivable,
net 86,262 74,796
Inventory, net 192,508 193,634
Retained interests
in notes receivable
sold 26,098 19,898
Property and equipment,
net 46,505 41,462
Other assets 32,652 31,368
-------------- --------------
Total assets $ 437,383 $ 419,681
============== ==============
LIABILITIES AND
SHAREHOLDERS' EQUITY
Liabilities
Accounts payable,
accrued liabilities
and other $ 40,938 $ 37,416
Deferred income 6,470 5,314
Deferred income
taxes 24,882 19,329
Lines-of-credit
and notes payable 66,058 67,620
10.50% senior
secured notes payable 110,000 110,000
8.00% convertible
subordinated notes
payable 6,000 6,000
8.25% convertible
subordinated debentures 34,371 34,371
-------------- --------------
Total liabilities 288,719 280,050
Minority interest 3,027 2,841
Total shareholders'
equity 145,637 136,790
-------------- --------------
Total liabilities
and shareholders'
equity $ 437,383 $ 419,681
============== ==============
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion