Bluegreen Announces Third Quarter Results.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)--Feb. 1, 2000 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 Increased by One Million Shares $15 Million Stock Purchase By Morgan Stanley  To comply with Wikipedia's , the introduction of this article needs a complete rewrite. Real Estate Fund III,L.P. and Affiliates 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 fiscal 2000 third quarter and nine months ended January January: see month. 2, 2000 (see attached tables). The Company also announced that Morgan Stanley Real Estate Fund III, L.P. and its affiliated real estate funds (collectively, &uot;MSREF&uot;) have agreed to fund a $15 million purchase of Bluegreen common stock at $8.50 per share. Bluegreen's Board of Directors has also 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 Bluegreen common stock. George George, river, c.345 mi (560 km) long, rising in a lake on the Quebec-Labrador boundary, E Canada. It flows N through Indian Lake (125 sq mi/324 sq km) to Ungava Bay (an arm of Hudson Strait). Donovan Don·o·van , William Joseph Known as "Wild Bill." 1883-1959. American army officer and public official who founded and directed (1942-1945) the Office of Strategic Services, an intelligence-gathering agency that was a forerunner of the CIA. , President and Chief Executive Officer of Bluegreen, commented, &uot;A combination of factors contributed to Bluegreen's third quarter loss, the first quarterly loss that the Company has reported since March 30, 1997. It is important to stress that these results do not reflect a shift of industry trends or call into question the validity of our business model. To the contrary, based on current pricing, Bluegreen's timeshare, residential land and golf communities, once constructed and sold, are expected to produce total life-of-project sales of approximately $1.2 billion over their respective anticipated 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. periods, based on current market conditions. &uot;As anticipated, timeshare sales for the fiscal 2000 third quarter were impacted by decreased tour-flow due to the effects of Hurricanes Dennis Dennis is a male first name derived from the Greco-Roman name Dionysius meaning "servant of Dionysus", the Thracian god of wine, which is ultimately derived from the Greek Dios (Διος, "of Zeus") combined with Nysos or Nysa (Νυσα), where the and Floyd. Slower-than-normal sales were amplified by the seasonality of our business, as Bluegreen's fiscal third quarter is historically our weakest quarter. Lower sales of our residential land and golf communities also impacted third quarter results, due primarily to a decrease in available inventories during the fiscal 2000 third quarter as compared to the third quarter of fiscal 1999. This was caused by delays in the acquisition and development of new larger scale projects currently underway, as well as by weather-related issues. &uot;Lower timeshare, residential land and golf community sales also produced a ripple effect ripple effect Epidemiology See Signal event. within the quarter. Interest income decreased to approximately $3.9 million from $4.1 million in the fiscal 1999 third quarter, while the gain on the sale of notes receivable decreased by approximately $399,000 from the same period one year ago.&uot; Record Nine Month Revenues; Timeshare Sales Comprise 53% of Total Sales Total revenues for the fiscal 2000 third quarter were $54.2 million as compared to $63.8 million in the third quarter of fiscal 1999. The net loss for the fiscal 2000 third quarter was $785,000, or $.03 per share, versus net income of $4.3 million, or $.16 per share, for the same period last year. Total revenues for the first nine months of fiscal 2000 rose 2% to $200.4 million from $196.5 million in the first nine months of fiscal 1999. Net income for the fiscal 2000 nine-month period was $9.5 million, or $.37 per share, versus net income of $13.8 million, or $.53 per share, for the same period last year. Bluegreen's timeshare sales for the fiscal 2000 third quarter approximated 53% of total sales versus 45% for the same period one year ago. For the nine months ended January 2, 2000, timeshare sales approximated 53% of total sales as compared to 43% for the nine months ended December 27, 1998. 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. Mr. Donovan continued, &uot;Timeshare ownership is expected to remain one of the fastest growing segments of the hospitality industry. Bluegreen is poised to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. this market with timeshare properties that, once constructed and sold, are expected to produce total life-of-project sales of approximately $814.5 million over anticipated 3-9 year sell-out periods, based on current pricing. As we enter the more robust spring/summer selling months, we expect that tour-flow at our existing properties will improve dramatically. We are also deeply engaged in discussions that would lead to the acquisition of timeshare properties in two new markets - California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). and 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). . &uot;We also expect sales of our residential land and golf communities to regain momentum at the end of the current fourth quarter. We have invested more dollars into this segment of our business than ever before in our history and we are currently developing projects in proven, desirable markets in which we have enjoyed past success. These include Brickshire, a Bluegreen Golf community located in Virginia Virginia, state, United States Virginia, state of the south-central United States. It is bordered by the Atlantic Ocean (E), North Carolina and Tennessee (S), Kentucky and West Virginia (W), and Maryland and the District of Columbia (N and NE). , as well as Mystic Mystic, rivers, United States Mystic. 1 River, c.10 mi (16 km) long, rising in SE Conn. and flowing S past Old Mystic and Mystic villages to the Long Island Sound. Mystic Seaport, a maritime museum, is at its mouth. 2 River, c. Shores and a new phase of our successful 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. , both in Texas. It is important to note the residential land and golf community projects currently being undertaken are of a much larger scale than previous projects. While this resulted in some delays in the third quarter, we are very optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the future of this segment of our business. In total, Bluegreen's residential land and golf communities are estimated to generate aggregate total life-of-project sales of approximately $404.4 million over anticipated 5-7 year sell-out periods, based on current pricing.&uot; Initial Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. Programs Completed; Expanded Program Announced Bluegreen has completed the repurchase of two million shares of its common stock under programs authorized by its Board of Directors in October 1998 and March 1999. Reflecting their continued confidence in the Company and its future prospects, the Board of Directors has once again expanded this program. Bluegreen is now authorized to repurchase up to an additional one million shares of its common stock, from time to time in open market transactions, depending on price, availability, market conditions and other factors. Balance Sheet Strengthened The Company also announced that MSREF MSREF Morgan Stanley Real Estate Funds has agreed to fund the purchase of the remaining $15 million, or 1,764,706 shares, of Bluegreen common stock at a purchase price of $8.50 per share, pursuant to its agreement with the Company. Bluegreen intends to use the proceeds to fund the expansion of its business, including the pursuit of acquisitions, and for general corporate purposes. In August 1998, Bluegreen and MSREF announced an agreement under which MSREF agreed to purchase up to $50 million in Bluegreen common stock over an 18-month period at a purchase price of $8.50 per share. With this latest acquisition, MSREF will have purchased $50 million, or approximately 5.9 million shares, of Bluegreen common stock. In December 1999, Heller Financial, Inc. (&uot;Heller&uot;) also purchased 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 with an aggregate principal balance of approximately $16.7 million from a wholly-owned special purpose subsidiary of Bluegreen. These receivables were purchased by 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. to Bluegreen or the subsidiary. Heller has now purchased approximately $90.8 million of Bluegreen's timeshare receivables 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. Mr. Donovan commented, &uot;Our balance sheet at January 2, 2000 and capital structure are the strongest in our Company's history. When taking into account the effect of the MSREF transaction, which will take place in the current fiscal fourth quarter, Bluegreen's book value equates to $5.11 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. approximates 1.68:1.&uot; 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. . Any statements contained herein that are not statements of historical fact may be deemed forward-looking statements. The words &uot;believe,&uot; &uot;expect,&uot; &uot;intend,&uot; &uot;anticipate,&uot; and &uot;project,&uot; 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.
BLUEGREEN CORPORATION
Consolidated Statements of Operations
(In 000's, Except Per Share Data)
(Unaudited)
Three Months Ended Nine months Ended
------------------ -----------------
Jan. 2, Dec. 27, Jan. 2, Dec. 27,
2000 1998 2000 1998
---- ---- ---- ----
Unaudited Unaudited
--------- ---------
REVENUES:
Lot sales $ 21,203 $ 30,645 $ 81,375 $ 97,845
Timeshare sales 24,043 25,024 92,237 74,885
------- ----------- ----------- -----------
Total sales 45,246 55,669 173,612 172,730
Other resort and golf
operations revenue 4,164 2,946 12,951 8,891
Interest income 3,903 4,112 11,794 11,361
Gain on sale of notes
receivable 693 1,092 1,577 3,145
Other income (expense) 199 (39) 486 340
------- ----------- ----------- -----------
Total operating revenues 54,205 63,780 200,420 196,467
------- ----------- ----------- -----------
EXPENSES:
Cost of sales:
Lot cost of sales 11,575 14,536 38,485 44,754
Timeshare cost of
sales 5,723 6,243 21,638 18,433
------- ----------- ----------- -----------
Total cost of sales 17,298 20,779 60,123 63,187
Cost of other resort
and golf operations 3,840 3,331 11,556 8,606
Selling, general and
administrative expense 30,214 28,879 100,259 87,431
Interest expense 3,531 2,920 10,160 10,028
Provision for loan losses 1,055 623 3,380 1,515
------- ----------- ----------- -----------
Total operating expenses 55,938 56,532 185,478 170,767
------- ----------- ----------- -----------
(Loss) income before
taxes (1,733) 7,248 14,942 25,700
(Benefit) provision for
income taxes (676) 2,899 5,827 10,280
Minority interest in
(loss)income of
consolidated
subsidiary (272) 76 (387) (53)
-------- ----------- ----------- -----------
(Loss) income before
extraordinary item (785) 4,273 9,502 15,473
Extraordinary loss
on early
extinguishment of
debt, net of
income taxes - - - (1,682)
-------- ----------- ----------- -----------
Net (loss) income $ (785) $ 4,273 $ 9,502 $ 13,791
======== =========== =========== ===========
Net (loss) income per
share:
Basic:
(Loss) income before
extraordinary item $ (0.03) $ 0.18 $ 0.41 $ 0.71
Extraordinary loss
on early
extinguishment
of debt, net of
income taxes - - - (0.08)
------- ----------- ----------- -----------
Net (loss) income $ (0.03) $ 0.18 $ 0.41 $ 0.63
======= =========== =========== ===========
Diluted:
(Loss) income before
extraordinary item $ (0.03) $ 0.16 $ 0.37 $ 0.59
Extraordinary loss
on early
extinguishment of
debt, net of income
taxes - - - (0.06)
------- ----------- ----------- -----------
Net (loss) income $ (0.03) $ 0.16 $ 0.37 $ 0.53
======= =========== =========== ===========
Weighted average number
of common and common
equivalent shares:
Basic 22,924 23,297 23,188 21,853
======= =========== =========== ===========
Diluted 22,924 29,879 29,509 28,636
======= =========== =========== ===========
BLUEGREEN CORPORATION
Condensed Consolidated Balance Sheets
(in 000's)
January 2, March 28,
2000 1999
---- ----
(Unaudited)
ASSETS
Cash and cash equivalents $ 44,460 $ 55,557
Contracts receivable, net 8,630 20,167
Notes receivable, net 75,918 68,548
Inventory, net 190,676 142,628
Investment in securities 17,092 17,106
Property and equipment, net 32,954 26,052
Other assets 30,610 19,064
-------------- --------------
Total assets $ 400,340 $ 349,122
============== ==============
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities
Accounts payable, accrued
liabilities and other $ 23,735 $ 31,569
Deferred income 3,577 5,792
Deferred income taxes 19,386 13,507
Lines-of-credit and notes
payable 80,278 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 277,347 228,738
Minority interest 648 1,035
Total shareholders' equity 122,345 119,349
-------------- --------------
Total liabilities and
shareholders' equity $ 400,340 $ 349,122
============== ==============
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