Bluegreen Announces Second Quarter Results; Company Reports Highest Quarterly Timeshare Sales in its History.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)--Nov. 2, 2000 Bluegreen Corporation (NYSE NYSE See: New York Stock Exchange : BXG), a leading U.S. developer and marketer of 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 2001 (see attached table) highlighted by the highest quarterly timeshare sales in Bluegreen's history. Timeshare sales for the fiscal 2001 second quarter reached an all-time quarterly record $43.6 million, a 21.4% increase from the same period one year ago, and represented 67.3% of total sales as compared to 54.7% for the same period last year. Timeshare sales for the first six months of fiscal 2001 rose 14.3% to a record $78.0 million from $68.2 million for the first half of fiscal 2000. Timeshare sales for the first six months of fiscal 2001 accounted for 61.4% of the Company's total sales as compared to 53.1% for the first six months of fiscal 2000. Higher timeshare sales for the three and six month periods of fiscal 2001 were due to the continued success of the points-based Bluegreen Vacation Club, overall price increases and the contribution of the Company's offsite sales offices. Lot sales for the fiscal 2001 second quarter were $21.2 million versus $29.7 million for the same period last year. For the first half of fiscal 2001, lot sales were $49.0 million as compared to $60.2 million for the first half of fiscal 2000. Lower lot sales reflected, in part, the one-time, bulk sale of land and mineral rights in Colorado by the Residential Land and Golf Division during the fiscal 2000 second quarter ("the rights sale"), which contributed approximately $5.0 million of total revenue for the three and six month periods ended October 3, 1999. The first half of fiscal 2000 also included an additional week of operations that generated an additional $4.6 million of lot sales. Excluding the impact of the rights sale, lot sales for the fiscal 2000 second quarter would have been $24.7 million; excluding the impact of the rights sale and the additional week of operations, lot sales for the first half of fiscal 2000 would have been $50.6 million. Lower lot sales for the fiscal 2001 three and six month periods were also due to decreased sales in the Company's Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). and 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. regions as projects in these areas were approaching sell-out Sell-Out When a broker or investor buying stocks has failed to settle the trade in a timely manner and, as a result, the broker can forcibly sell the securities on the investor's behalf. . Record 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. ; Profitable Operations Record timeshare sales and substantial increases in interest income and other resort and golf operations revenue contributed to record total operating revenues for the fiscal 2001 three and six month periods. Total operating revenues for the second quarter of fiscal 2001 reached a record $77.9 million from $76.5 million for the same period last year. For the first six months of the new fiscal year, total operating revenues were $152.5 million, up from $148.5 million for the comparable period of the prior year. Net income for the fiscal 2001 second quarter was $2.0 million, or $.08 per share, compared to net income of $5.9 million, or $.22 per share, last year. Net income for the first six months of fiscal 2001 was $5.0 million, or $.20 per share, versus net income of $10.3 million, or $.38 per share, for the comparable prior year period. Management noted several factors when comparing the Company's net income for the three and six month periods of fiscal 2001 and fiscal 2000: - The rights sale contributed approximately $2.6 million of net income during the fiscal 2000 second quarter and six-month periods. The Company also realized an $884,000 gain on notes receivable during the fiscal 2000 second quarter; Bluegreen realized no such gain in the fiscal 2001 second quarter due to the fact that its new timeshare receivables purchase facility was not finalized until the third quarter of fiscal 2001. Excluding the effect of the rights sale and the gain on notes receivable, net income for the fiscal 2000 second quarter would have been $2.7 million, or $.11 per share. - After excluding the effect of the rights sale and the gain on sale of notes receivable, as well as the additional week of operations included in the fiscal 2000 six month period, net income would have been $5.9 million, or $.23 per share. These factors in the aggregate, generated approximately $4.4 million, or $.15 per share, in net income. Growing Markets Define Opportunities for Future Growth George Donovan, President and Chief Executive Officer of Bluegreen, commented, "The record timeshare sales we recorded during the fiscal 2001 second quarter and the continued profitability of our operations reflect the success of our internal sales and marketing efforts, as well as the growing consumer demand for high quality, amenity-rich leisure properties. We have increased the inventory in our residential land and golf segment. We recently acquired 597 acres of land outside of Chapel Hill, NC on which we intend to construct a new Bluegreen Golf Community. The 516 lots that will comprise this latest project, 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 , will surround an 18-hole golf course designed by legendary golfer Davis Love III Davis Milton Love III (born April 13, 1964) is an American professional golfer. Love was born in Charlotte, North Carolina. He attended the University of North Carolina before turning professional in 1985. . "As we continue to broaden our industry presence, we are also focusing on ways to lower our marketing costs as a percentage of sales. We are in the process of centralizing cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. all of our corporate marketing activities and have opened a new corporate call center. We are also maintaining a focus on permission marketing and are seeking to broaden the capabilities of our corporate website -- www.bluegreenonline.com -- to include fully functional e-commerce e-commerce, commerce conducted over the Internet, most often via the World Wide Web. E-commerce can apply to purchases made through the Web or to business-to-business activities such as inventory transfers. aspects that should enable customers to conduct a wide range of online transactions, including vacation bookings and account balance information. We are proud to be an active participant in what we believe is one of the most exciting times in the history of our industry. We look forward to the future with great confidence." Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. Program Continues In January 2000, Bluegreen's Board of Directors authorized au·thor·ize tr.v. au·thor·ized, au·thor·iz·ing, au·thor·iz·es 1. To grant authority or power to. 2. To give permission for; sanction: the repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. of up to an additional one million shares of the Company's common stock, from time to time in open market transactions, depending on price, availability, market conditions and other factors. This is the third repurchase plan authorized by the Board of Directors since October 1998, reflecting its continued confidence in Bluegreen and its future operations. Bluegreen completed the repurchase of an aggregate of two million shares under the first two repurchase plans and as of November 1, 2000, the Company has repurchased 300,800 shares of its common stock under this most recent plan. Balance Sheet; A New 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 Facility Mr. Donovan commented, "Our balance sheet and capital structure continue to be strong. Bluegreen's book value equates to $5.72 per share and its 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. is approximately 1.73:1. To attempt to further strengthen our financial position and reduce our risk exposure, we recently signed a new $90 million timeshare receivables purchase facility with Heller Financial, Inc. (NYSE: HF) acting as the Facility Administrator. The Company is also in the process of negotiating new or increased acquisition and development lines of credit with interested lenders." 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 ; 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, 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 future sales contemplated under the timeshare purchase facility referred to above will not close, and that the Company will not enter into, on favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. terms or at all, the new or increased acquisition and development lines of credit referred to above, 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. and its Form 10-Q Form 10-Q See 10-Q. to be filed on or about November 15, 2000. 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
October 1, October 3, October 1, October 3,
2000 1999 2000 1999
REVENUES:
Timeshare sales $ 43,620 $ 35,917 $ 77,971 $ 68,194
Lot sales 21,190 29,736 49,046 60,171
Total sales 64,810 65,653 127,017 128,365
Other resort and golf
operations revenue 7,859 5,658 15,577 11,041
Interest income 5,317 4,099 9,575 7,891
Gain on sale of notes
receivable - 884 - 884
Other income (expense) (50) 228 311 287
Total operating
revenues 77,936 76,522 152,480 148,468
EXPENSES:
Cost of sales:
Timeshare cost of
sales 9,380 8,367 17,288 15,914
Lot cost of sales 11,515 12,731 25,491 26,908
Total cost of sales 20,895 21,098 42,779 42,822
Cost of other resort and
golf operations 6,620 5,625 13,214 10,526
Selling, general and
administrative
expense 42,589 35,320 79,517 69,491
Interest expense 3,623 3,674 7,264 6,630
Provision for loan
losses 1,456 1,536 2,491 2,324
Total operating
expenses 75,183 67,253 145,265 131,793
Income before taxes 2,753 9,269 7,215 16,675
Provision for income
taxes 1,060 3,577 2,778 6,503
Minority interest in
loss of consolidated
subsidiary (308) (170) (576) (115)
Net income $ 2,001 $ 5,862 $ 5,013 $ 10,287
Net income per share:
Basic: $ 0.08 $ 0.25 $ 0.21 $ 0.44
Diluted: $ 0.08 $ 0.22 $ 0.20 $ 0.38
Weighted average number
of common and common
equivalent shares:
Basic 24,226 23,197 24,293 23,315
Diluted 25,857 29,527 25,940 29,688
BLUEGREEN CORPORATION
Condensed Consolidated Balance Sheets
(in 000's)
October 1, April 2,
2000 2000
(Unaudited)
ASSETS
Cash and cash equivalents $ 35,101 $ 65,526
Contracts receivable, net 13,871 8,403
Notes receivable, net 117,262 70,114
Inventory, net 188,251 196,509
Investments in securities 14,355 15,330
Property and equipment, net 39,181 35,409
Other assets 33,528 24,221
Total assets $441,549 $415,512
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Accounts payable, accrued liabilities
and other $ 39,205 $ 35,652
Deferred income 4,539 3,973
Deferred income taxes 15,948 13,173
Lines-of-credit and notes payable 89,783 77,531
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 299,846 280,700
Minority interest 3,136 768
Total shareholders' equity 138,567 134,044
Total liabilities and
shareholders' equity $441,549 $415,512
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