Bluegreen Announces Second Quarter Results.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. 28, 1999-- 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 record financial results for the fiscal 2000 second quarter and six months ended October 3, 1999 (see attached table). Total revenues for the fiscal 2000 second quarter increased 10.1% to a record $75.3 million from $68.4 million in the second quarter of fiscal 1999. Net income for the fiscal 2000 second quarter rose 7.4% to a record $5.9 million, or $0.22 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, versus net income of $5.5 million, or $0.21 per diluted share, for the same period last year. Total revenues for the first half of fiscal 2000 rose 10.2% to $146.2 million from $132.7 million in the first six months of fiscal 1999. Net income for the fiscal 2000 six-month period rose 8.1% to $10.3 million, or $0.38 per diluted share, versus net income of $9.5 million, or $0.37 per diluted share, for the same period last year. A bulk sale of land and mineral rights in Colorado by Bluegreen's Residential Land and Golf Division during the fiscal 2000 second quarter contributed approximately $5.0 million and $2.6 million of total revenue and net income, respectively, for the three and six month periods ended October 3, 1999. Timeshare Sales Continue to Rise; Account for 54.7% of Real Estate Sales Fiscal 2000 second quarter timeshare sales rose 38.7% to $35.9 million from $25.9 million in the fiscal 1999 second quarter, while timeshare sales increased 36.8% to $68.2 million in the first half of fiscal 2000 from $49.9 million in the first six months of fiscal 1999. Higher timeshare sales are due primarily to increased revenues from existing resort properties, the emerging impact of new off-site sales offices and the success of Bluegreen's Vacation Club. Bluegreen's timeshare sales for the fiscal 2000 second quarter approximated 54.7% of total sales of real estate. The Company expects that its business model going forward will continue to consist of a higher percentage of timeshare sales versus golf community and residential land sales, as existing timeshare properties mature and additional resorts are added to Bluegreen's timeshare portfolio. George Donovan, President and Chief Executive Officer of Bluegreen, commented, "Higher timeshare sales in the fiscal 2000 second quarter were generated almost entirely from same-resort sales growth, signaling the continued strong demand for timeshare properties and the quality of Bluegreen's product and service. Despite demonstrating double-digit increases from the fiscal 1999 second quarter and fiscal 2000 first quarter, timeshare sales were impacted by decreased tour-flow due to the effects of Hurricanes Dennis and Floyd. There was no material damage to any of our properties and, thankfully thank·ful adj. 1. Aware and appreciative of a benefit; grateful. 2. Expressive of gratitude: a thankful smile. , no storm-related injuries to our employees or owners. The lingering lin·ger v. lin·gered, lin·ger·ing, lin·gers v.intr. 1. To be slow in leaving, especially out of reluctance; tarry. See Synonyms at stay1. 2. effects of these storms on tour-flow, as well as the impact of Hurricane Irene in October, are also expected to affect timeshare, golf and residential land sales in the current fiscal third quarter." Expanding Presence in Golf Communities Market Fiscal 2000 second quarter golf community and residential land sales were $29.7 million versus $35.5 million for the same period last year. For the fiscal 2000 six-month period, golf community and residential land sales were $60.2 million as compared to $67.2 million for the same period one year ago. Lower lot sales reflect the inclusion of sales in the fiscal 1999 second quarter of properties that have since sold out and were not replaced by Bluegreen as they fell outside of the Company's re-defined core markets. In addition, sales recognized under the percentage-of-completion method percentage-of-completion method A method of recognizing revenues and costs from a long-term project in relation to the percentage completed during the course of the project. of accounting decreased by $4.3 million and $3.1 million during the fiscal 2000 second quarter and six-month periods, respectively, as compared to the comparable prior year periods. Lower sales were also attributable to lower sales tours related to the impact of Hurricanes Floyd and Dennis. Spurred on by the success of its Winding River golf community in 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. , Bluegreen has commenced construction of Brickshire, a new Bluegreen Golf Community situated in historic New Kent County, Virginia New Kent County is a county located in the Commonwealth of Virginia, a state of the United States. As of the 2000 census, the population was 13,462. Its county seat is New Kent6. . The Company has also purchased an additional 1,766 acres adjacent to its Lake Ridge at Joe Pool Lake Joe Pool Lake is a fresh water impoundment located in the southern part of the Dallas/Fort Worth Metroplex in North Texas (USA). The lake encompasses parts of Tarrant, Dallas and Ellis counties. residential land project in Texas and begun construction on the next phase of this highly successful development. Sales at these new locations are expected to commence during the third and fourth quarters of fiscal 2000. Bluegreen estimates that these projects will generate aggregate total estimated life-of-project sales of approximately $168 million over anticipated 5-7 year sell out periods, based on current pricing. Bluegreen expects that it will continue to leverage its industry presence and reputation to actively open new golf communities 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. . Brickshire, situated on 1,135 acres, will consist of approximately 850 single-family lots. A village center, patterned after historic Virginia settlements, will consist of a property owners' clubhouse, a swim & tennis center and a complete golf facility featuring an 18-hole Curtis Strange For other uses, see Strange (disambiguation). Curtis Northrup Strange (born January 30, 1955) is an American golfer. College Strange was born in Norfolk, Virginia. He is a graduate of Princess Anne High School in Virginia Beach, Virginia. signature golf course and fully equipped clubhouse. Brickshire is located less than one-half an hour from downtown Richmond and Williamsburg, directly off of Interstate in·ter·state adj. Involving, existing between, or connecting two or more states. n. One of a system of highways extending between the major cities of the 48 contiguous United States. Noun 1. 64. The 1,358 homesites at Lake Ridge will be situated atop the highest elevation elevation, vertical distance from a datum plane, usually mean sea level to a point above the earth. Often used synonymously with altitude, elevation is the height on the earth's surface and altitude, the height in space above the surface. within 100 miles and will be located just minutes from downtown Dallas Downtown Dallas is the main business district in Dallas, Texas (USA), located in the geographic center of the city. The area officially termed "downtown" is bounded by the downtown freeway loop: bounded on the east by I-345 (although known and signed as the northern terminus of . Lake Ridge is surrounded sur·round tr.v. sur·round·ed, sur·round·ing, sur·rounds 1. To extend on all sides of simultaneously; encircle. 2. To enclose or confine on all sides so as to bar escape or outside communication. n. on one side by the publicly-owned, 6,836-yard, par 72 championship Tangle Ridge golf course and on the other by Joe Pool Lake, which provides more than 7,500 acres of water for fishing, boating, windsurfing windsurfing, also called boardsailing or sailboarding, water sport that employs a board-and-sail device and combines elements of sailing and surfing. The sport was developed in the United States during the 1960s by the Californians Jim Drake, a sailor, and Hoyle and sunbathing. Strong Balance Sheet; Ongoing Share Repurchase Plan share repurchase plan A corporation's plan for buying back a predetermined number of its own shares in the open market. Institution of a share repurchase plan derives from management's view that the company has limited outside investment opportunities and Bluegreen's balance sheet at October 3, 1999 remained strong, highlighted by cash and cash equivalents of $43.8 million, book value of $4.96 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 1.68:1. The Company also announced that it has, to date, repurchased approximately 1.7 million shares of its common stock, pursuant to its previously announced share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program of up to 2.0 million shares of Bluegreen common stock. Mr. Donovan commented, "Our optimism for Bluegreen's future is manifested in the continued success of our timeshare resort properties, a vibrant market for our golf communities and an active share repurchase plan. As previously announced, the Company recently sold approximately $19.3 million of timeshare receivables to Heller Financial, Inc. ("Heller"), without recourse A phrase used by an endorser (a signer other than the original maker) of a negotiable instrument (for example, a check or promissory note) to mean that if payment of the instrument is refused, the endorser will not be responsible. , and consequently recognized an $884,000 gain on sale in the fiscal 2000 second quarter. Heller has now purchased approximately $74 million of Bluegreen's timeshare receivables. Approximately $26 million of additional timeshare receivables may be sold to Heller under the existing $100 million purchase facility, subject to customary conditions and eligible notes. Bluegreen is currently in discussions to either expand the existing facility to accommodate additional sales of the Company's timeshare receivables or to create a new timeshare receivables facility. "With timeshare demand increasing, we are hard at work on expanding and enhancing our distribution channels. In addition to recently announced agreements with Damon's International, the Indianapolis Motor Speedway Indianapolis Motor Speedway, located in Speedway, Indiana (a separate town completely surrounded by Indianapolis) in the United States, is the second-oldest and the Pep (1) (Packet Exchange Protocol) A Xerox protocol used internally by NetWare to transport internal Netware NCP commands (NetWare Core Protocols). It uses PEP and IPX for this purpose. Application programs use SPX and IPX. Boys Indy Racing League The Indy Racing League, better known as IRL, is the sanctioning body of a predominantly American based open-wheel racing series. The League consists of two series, the premiere IndyCar Series , we are currently negotiating several marketing and/or promotional relationships with several well-known lodging Lodging or holiday accommodation is a type of accommodation. People who travel and stay away from home for more than a day need lodging mainly for sleeping. Other purposes are safety, shelter from cold and rain, having a place to store luggage and being able to take a and leisure industry companies. If consummated con·sum·mate tr.v. con·sum·mat·ed, con·sum·mat·ing, con·sum·mates 1. a. To bring to completion or fruition; conclude: consummate a business transaction. b. , we expect that these agreements would have a substantial impact on broadening the base of potential timeshare owners. We are opening a new off-site sales office in Detroit in November 1999 to complement the success of off-site sales locations in Cleveland, Louisville and Indianapolis. Under the direction of David Philp, who recently joined the Company as Chief Investment Officer and Senior Vice President of Acquisitions & Development, we are also exploring strategic acquisitions that would expand our geographic presence and customer base." 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; 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. 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. . Any statements contained herein that are not statements of historical fact may be deemed forward-looking statements. The words "believe," "expect," "intend," "anticipate," and "project," and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. The Company undertakes no 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 inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. Future events 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, national or regional economic conditions that can affect the real estate market, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission. -0-
BLUEGREEN CORPORATION
Consolidated Statements of Income
(In 000's, Except Per Share Data)
(Unaudited)
Three Months Ended Six Months Ended
October 3, September 27, October 3, September 27,
1999 1998 1999 1998
REVENUES:
Timeshare sales $ 35,917 $ 25,899 $ 68,194 $ 49,860
Lot sales 29,736 35,504 60,171 67,200
--------- --------- --------- ---------
Total sales of real estate 65,653 61,403 128,365 117,060
Other resort and golf
operations revenue 4,401 3,470 8,789 5,946
Interest income 4,099 3,487 7,891 7,249
Gain on sale of notes
receivable 884 -- 884 2,053
Other income 228 5 287 378
-------- --------- --------- ---------
Total operating revenues 75,265 68,365 146,216 132,686
-------- --------- --------- ---------
EXPENSES:
Cost of sales:
Timeshare cost of sales 8,367 5,970 15,914 12,187
Lot cost of sales 12,731 15,569 26,908 30,220
--------- --------- --------- ---------
Total cost of sales 21,098 21,539 42,822 42,407
Cost of other resort and
golf operations 3,970 3,025 7,718 5,277
Selling, general and
administrative expense 35,718 30,985 70,047 58,553
Interest expense 3,674 3,362 6,630 7,106
Provisions for losses 1,536 599 2,324 892
--------- --------- --------- ---------
Total operating expenses 65,996 59,510 129,541 114,235
--------- --------- --------- ---------
Income before taxes 9,269 8,855 16,675 18,451
Provision for income taxes 3,577 3,542 6,503 7,381
Minority interest in
loss of consolidated
subsidiary (170) (147) (115) (129)
--------- --------- --------- ---------
Income before
extraordinary item 5,862 5,460 10,287 11,199
Extraordinary loss on
early extinguishment
of debt, net of
income taxes -- -- -- (1,682)
--------- --------- --------- ---------
Net income $ 5,862 $ 5,460 $ 10,287 $ 9,517
========= ========= ========= =========
Net income per share:
Basic:
Income before
extraordinary item $ 0.25 $ 0.25 $ 0.44 $ 0.53
Extraordinary loss on
early extinguishment
of debt, net of
income taxes -- -- -- (0.08)
--------- --------- --------- ---------
Net income $ 0.25 $ 0.25 $ 0.44 $ 0.45
========= ========= ========= =========
Diluted:
Income before
extraordinary item $ 0.22 $ 0.21 $ 0.38 $ 0.43
Extraordinary loss on
early extinguishment
of debt, net of
income taxes -- -- -- (0.06)
--------- --------- --------- ---------
Net income $ 0.22 $ 0.21 $ 0.38 $ 0.37
========= ========= ========= =========
Weighted average
number of common
and common equivalent
shares:
Basic 23,197 21,915 23,315 21,132
========= ========= ========= =========
Diluted 29,527 28,965 29,688 28,235
========= ========= ========= =========
BLUEGREEN CORPORATION
Condensed Consolidated Balance Sheets
(in 000's)
October 3, March 28,
1999 1999
---- ----
(Unaudited)
ASSETS
Cash and cash equivalents $ 43,842 $ 55,557
Contracts receivable, net 11,448 20,167
Notes receivable, net 83,439 68,548
Inventory, net 172,279 142,628
Investment in securities 15,717 17,106
Other assets 23,460 19,064
Property and equipment, net 30,532 26,052
-------- --------
Total assets $380,717 $349,122
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Accounts payable, accrued
liabilities and other $ 21,418 $ 26,226
Deferred income 4,209 5,792
Deferred income taxes 20,077 18,850
Lines-of-credit and notes payable 59,044 27,499
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 255,119 228,738
Minority interest 920 1,035
Total shareholders' equity 124,678 119,349
-------- --------
Total liabilities and
shareholders' equity $380,717 $349,122
======== ========
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