Bluegreen Corporation Reports 2006 Second Quarter Financial 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. -- Bluegreen Corporation (NYSE NYSE See: New York Stock Exchange : BXG), a leading provider of Colorful Places to Live and Play(R), today announced financial results for the second quarter ended June June: see month. 30, 2006 (see attached tables). As previously announced, effective January January: see month. 1, 2006 Bluegreen was required to adopt the American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Institute of Certified See certification. Public Accountants' Statement of Position 04-2, "Accounting for Real Estate Time-sharing (operating system) time-sharing - (Or "timesharing") An operating system feature allowing several users to run several tasks concurrently on one processor, or in parallel on many processors, usually providing each user with his own terminal for input and output. Transactions" (the "SOP"), which changes the rules for many aspects 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. accounting, including revenue recognition, inventory costing, and incidental Contingent upon or pertaining to something that is more important; that which is necessary, appertaining to, or depending upon another known as the principal. Under Workers' Compensation statutes, a risk is deemed incidental to employment when it is related to whatever a operations. As expected, and as previously announced, the adoption of the new accounting regulations adversely impacted results for the second quarter of 2006, primarily as a result of deferring revenues until subsequent periods. Bluegreen has provided in this press release pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma , non-GAAP income statements (see tables entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: : "Pro Forma Income Statement Before SOP 04-2 Adjustment") for the three- and six-month periods ended June 30, 2006 that reflect the impact of adjustments required by the adoption of the SOP. Net income for the second quarter of 2006 was $6.6 million, or $0.21 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, as compared to net income of $14.9 million, or $0.48 per diluted share, in the same period last year. Total sales in the second quarter of 2006 were $141.9 million as compared to $159.3 million in the second quarter of 2005. Bluegreen Resorts The Bluegreen Resort Company was started in 1984, to partner with timeshare resorts. It has grown into a major player in the timeshare community. Bluegreen is traded on the New York Stock Exchange with the symbol BXG. Its primary competitor is Marriott Vacation Club International. sales were $91.4 million as compared to $97.0 million, reflecting the impact of the SOP. Bluegreen Communities Bluegreen Communities™ is a publicly traded land developer on the New York Stock Exchange. Bluegreen develops planned residential communities or planned unit developments (PUDs) by acquiring large sections of unimproved land outside major U.S. sales were $50.6 million as compared to $62.3 million in the same period one year ago. As expected and as previously announced, these lower sales at Bluegreen Communities reflected the sell out or near sell out of several communities prior to the end of the second quarter of 2006. On a pro forma, non-GAAP basis, excluding the impact of the adoption of the SOP, total sales in the second quarter of 2006 were $163.9 million as compared to $159.3 million in the second quarter of 2005. On the same basis, Resorts sales increased 16.8% to $113.4 from $97.0 million. As indicated in the attached tables, on a pro forma, non-GAAP basis, excluding the impact of the adoption of the SOP, net income for the second quarter of 2006 was $12.7 million, or $0.41 per diluted share, as compared to net income of $14.9 million, or $0.48 per diluted share, in the same period last year. During the second quarter of 2006, the SOP impacted Bluegreen Resorts' results of operations, and Bluegreen's consolidated income statement consolidated income statement An income statement that combines the income statements of two or more organizations. As with other consolidated statements, a consolidated income statement eliminates any funds owed to or due from firms within the same group. as follows: --Reduced Resorts sales by $22.0 million, as a consequence of: --The net deferral deferral - Waiting for quiet on the Ethernet. of $12.3 million of sales based on certain purchase incentives provided to buyers and the accounting treatment for the Company's Sampler sampler, sample piece of needlework or embroidery, of silk, cotton, or worsted, for the preservation of some pattern or as an example of the ability of a child or a beginner. In museums and private collections there are samplers dating from as early as 1643. Program --The netting of $12.0 million of the provision for loan losses directly against Resort sales. In addition, the SOP does not allow the Company to take a credit in the provision for loan losses for the cost of timeshare inventory that Bluegreen expects to recoup recoup To sell an asset at a price sufficient to recover the original outlay or to offset a previous loss. in connection with loan defaults --The classification of $337,000 of Resorts sales to Other Resort Revenue, based on certain purchase incentives provided to buyers --The classification of $2.6 million of the total $2.7 million of gain on sales of notes receivable in Resort sales --Increased Resorts cost of sales as a percentage of Resorts sales to 24.0% from 21.1% on a pro forma basis. --Contributed to higher selling, general, and administrative expenses as a percentage of sales. While the SOP requires certain Resorts sales be deferred, it does not allow the deferral of certain marketing expenses associated with those sales. Selling, general and administrative expenses as a percentage of sales increased to 61.7% under the SOP, but would have only been 54.8% before the adoption of the SOP. As of June 30, 2006, $37.0 million and $20.8 million of Resorts sales and profits, respectively, were deferred under the SOP. These amounts are expected to be recognized in future periods. BLUEGREEN RESORTS 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). F. 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, "The adoption of the SOP has masked A state of being disabled or cut off. the success of Bluegreen Resorts' business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets . We believe that this business and the markets in which it operates remain strong with significant potential for growth. In that regard, we enjoyed continued same-'store' sales growth, led by our sales offices at The Bluegreen Wilderness wilderness, land retaining its primeval character with the imprint of humans minimal or unnoticeable. In the United States, the Wilderness Act of 1964 established the National Wilderness Preservation System with a nucleus of 9 million acres (3. Club at Big Cedar cedar, common name for a number of trees, mostly coniferous evergreens. The true cedars belong to the small genus Cedrus of the family Pinaceae (pine family). (Ridgedale Ridgedale has multiple meanings, including:
Orlando (ôrlăn`dō), city (1990 pop. 164,693), seat of Orange co., central Fla., in a lake region; inc. 1875. In a citrus fruit and farm area, it is one of the world's most visited vacation spots. , Fla.), The Falls Village resort (Branson Branson, city (1990 pop. 3,706), Taney co., SW Mo.; inc. 1904. The primarily residential city's economy is based on tourism, especially to theaters offering live, often lavish country-music shows. , Mo.) and Mountain Run at Boyne Boyne, river, c.70 mi (110 km) long, rising in the Bog of Allen, Co. Kildare, E Republic of Ireland, and flowing NE through Co. Meath, past Trim, to the Irish Sea near Drogheda. Salmon is caught in the river. (Boyne Falls, Mich.). Our new sales office at Carolina Carolina (kärōlē`nä), city (1990 pop. 177,806), Puerto Rico. Located 7 mi (11 km) SE of San Juan, it is a residential suburb of the capital, as well as a commercial and industrial center. Grande Gran·de 1 , Rio A river, about 1,046 km (650 mi) long, flowing from southeast Brazil generally northwest to the Paranaíba River, with which it forms the Paraná River. (Myrtle Beach, S.C.) and our new offsite sales offices in the Atlanta Atlanta (ətlăn`tə, ăt–), city (1990 pop. 394,017), state capital and seat of Fulton co., NW Ga., on the Chattahoochee R. and Peachtree Creek, near the Appalachian foothills; inc. 1847. and Chicago Chicago, city, United States Chicago (shĭkä`gō, shĭkô`gō), city (1990 pop. 2,783,726), seat of Cook co., NE Ill., on Lake Michigan; inc. 1837. markets also contributed to the increase in Bluegreen Resorts' sales. In addition, sales to Bluegreen's existing and growing owner base increased by 45.9%, and comprised 32.2% of Resorts sales for the three months ended June 30, 2006 as compared to 25.4% of Resorts sales during the comparable prior year period. "We also continued to strengthen our portfolio of properties in order to address the vacation and lifestyle choices of our owners. We recently announced our intention to enter the mega-market of Las Vegas Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. with a new resort, preview To see ahead of time. Page layout and word processing programs often have a preview function that lets you see how all the pages will appear before they are printed. In the days of character-based interfaces, a preview was absolutely necessary to see how different fonts would look or how center and retail complex. Construction is set to commence in August on a seven-story resort featuring approximately 240 two-bedroom timeshare units, expected to be completed in the first quarter of 2008. We have also negotiated an option to purchase 4 acres of adjacent land, which has been entitled for the development of an additional 240 timeshare units. On July July: see month. 1, 2006, we opened a preview center sales office on the Las Vegas Strip The Las Vegas Strip (also known as The Strip) is a 4 mi (6.7 km) section of Las Vegas Boulevard South, most of which has been designated an All-American Road. , and are currently introducing the Bluegreen Vacation Club to some of the city's estimated 38.5 million annual visitors. "In fall 2006, we expect to commence construction on a new resort property located in Williamsburg, Virginia Williamsburg is a city located on the Virginia Peninsula in the Hampton Roads region in southeastern Virginia. As of the 2000 census, the city had a total population of 11,998. , less than one block from the historic district of Colonial Williamsburg Colonial Williamsburg is the historic district of the independent city of Williamsburg, Virginia. Colonial Williamsburg consists of many of the buildings that formed the original colonial capital of Williamsburg in James City County from 1699 to 1780, with all traces of later . Occupancy of this new resort is expected in the fourth quarter of 2007. We are planning to open a sales office in Williamsburg Williamsburg, historic city (1990 pop. 11,530), seat of James City co., SE Va., on a peninsula between the James and York rivers; settled 1632 as Middle Plantation, laid out and renamed 1699, inc. 1722. in August 2006. Our expansion in Tennessee Tennessee, state, United States Tennessee (tĕn`əsē', tĕn'əsē`), state in the south-central United States. , one of Bluegreen's most popular vacation destinations, continued with the purchase of a 26,208-square-foot building located at the foot of the Great Smoky Mountains Great Smoky Mountains, part of the Appalachian system, on the N.C.–Tenn. border; highest range E of the Mississippi and one of the oldest uplands on earth. The mountains are named for the smokelike haze that envelops them. that will be renovated into a new preview center in the third quarter of 2006." Resorts cost of sales in the second quarter of 2006 rose to 24.0% of sales from 20.5% in the same period last year. This increase was due primarily to the impact of the SOP and the sale of timeshare interests in higher cost resorts as a result of rising construction costs (partially offset by increased sales of vacation ownership interests in The Fountains resort, which has a relatively low associated product In the context of fuels and lubricants, a petroleum or chemical product used as a hydraulic fluid, corrosion preventive, liquid propellant, or specialized product, required for the operation, maintenance, or storage of military equipment. cost and a system-wide price increase that went into effect January 1, 2006). Bluegreen continues to believe that Resorts cost of sales will remain within the 23-25% range in 2006. BLUEGREEN COMMUNITIES Bluegreen Communities sales in the second quarter of 2006 were $50.6 million as compared to $62.3 million in the second quarter of 2005. As previously announced, the high level of sales achieved in the Bluegreen Communities segment during 2004 and 2005 resulted in some of the Company's properties substantially selling out earlier than previously expected; six of Bluegreen's communities that contributed to the high sales in the second quarter of 2005 substantially sold out during or prior to the second quarter of 2006. Despite the sales decline, as of June 30, 2006, approximately $21.2 million and $8.8 million of Bluegreen Communities sales and profits, respectively, were deferred 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, and it is expected that these amounts will be recognized in future periods ratably with the development of the communities. Bluegreen Communities has also purchased six new properties since June 30, 2005, although most of these new Bluegreen Communities had not commenced sales as of June 30, 2006. Mr. Donovan commented, "We are pleased with the sales pace at Bluegreen's two newest Texas communities -- The Settlement at Patriot Ranch ranch, large farm devoted chiefly to raising and breeding cattle, horses, sheep, and goats. The cattle ranch was introduced from Latin America to Texas and the plains of the W United States and Canada. and Havenwood at Hunter's Crossing. We also realized increased sales during the second quarter of 2006 (as compared to the second quarter of 2005) at several communities open more than one year, including Mountain Springs Ranch (Canyon Lake, Texas This article is about a census-designated place. For the reservoir of the same name, see Canyon Lake (Texas). Canyon Lake is a census-designated place (CDP) in Comal County, Texas, United States. The population was 16,870 at the 2000 census. ) and Chapel Ridge (Chapel Hill, N.C.). These incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. sales helped to partially offset sales decreases at substantially sold-out sold-out adj. Having all tickets or accommodations completely sold, especially ahead of time. Adj. 1. sold-out - having taken a bribe or bribes; "a sold-out politician" communities. "We are also on track to commence sales during the fourth quarter of 2006 at The Bridges of Preston Preston, city (1991 pop. 166,675) and district, Lancashire, N England, on the Ribble River. Preston has an active port and is a center of cotton and rayon manufacturing. Crossings, a nearly 1,600-acre Bluegreen Golf Community located outside of Dallas Dallas, city (1990 pop. 1,006,877), seat of Dallas co., N Tex., on the Trinity River near the junction of its three forks; inc. 1871. The second largest Texas city, after Houston, and the eighth largest U.S. , and at Vintage
Vintage, in wine-making, is the process of picking grapes and creating the finished product. A vintage wine is one made from grapes that were all, or primarily, grown in a single specified year. Oaks at the Vineyards, a 3,300- acre parcel outside San Antonio San Antonio (săn ăntō`nēō, əntōn`), city (1990 pop. 935,933), seat of Bexar co., S central Tex., at the source of the San Antonio River; inc. 1837. . Sales recently commenced at Saddle Creek
Waller is located at (30.058752, -95.926336)GR1. , near Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; , which we acquired earlier this year. Saddle Creek Ranch is within six miles of Bluegreen's very successful Saddle Creek Forest community. During the second quarter, we acquired a 953-acre parcel in Grimes County, Texas Grimes County is a county located in the U.S. state of Texas. In 2000, its population was 23,552. Grimes is named for Jesse Grimes, a signer of the Texas Declaration of Independence and early settler of the county. The seat of the county is Anderson6. , which is in close proximity to College Station. We believe that we will begin selling one-plus acre homesites at this new Bluegreen Community in the fourth quarter of 2006." Bluegreen Communities cost of sales in the second quarter of 2006 of 53.6% represents a return to historical levels. The increase from 50.1% in the same period one year ago was due primarily to the substantial sell out of two higher-margin Bluegreen Golf communities prior to the second quarter of 2006. OTHER FINANCIAL INFORMATION Total positive net interest spread (interest income less interest expense) rose to $6.0 million in the second quarter of 2006 from $4.2 million in the second quarter of 2005. Interest income increased primarily as a result of a higher average vacation ownership notes receivable balance during the 2006 quarter as compared to the 2005 quarter, while interest expense declined primarily as a result of higher amounts of interest expense being capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. to the Company's various Resorts and Communities properties currently under development, reflecting higher levels of development activity as Bluegreen continues to expand for the future. Bluegreen entered into a vacation ownership 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 Branch Banking and Trust Company ("BB&T") on June 1, 2006 that allows for transfers of notes receivable pursuant to the terms of the facility and subject to certain conditions precedent A court decision that is cited as an example or analogy to resolve similar questions of law in later cases. The Anglo-American common-law tradition is built on the doctrine of Stare Decisis ("stand by decided for a cumulative purchase price of up to $137.5 million, on a revolving basis through May 2008. In June 2006, the Company transferred ownership of $35.0 million of receivables pursuant to this facility and generated $29.7 million in cash proceeds at an 85% advance rate. Transfers of receivables under this facility are being accounted for as financing transactions for financial accounting purposes, therefore the receivables and associated obligations under the facility appear as assets and liabilities, respectively, on the Company's balance sheet. Bluegreen's balance sheet at June 30, 2006 reflected unrestricted cash of $43.8 million, a book value of $10.47 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 1.03:1. However, excluding the impact of accounting for the BB&T receivables purchase facility on balance sheet, the debt-to-equity ratio would have been 0.93:1. As we announced in our June 27, 2006 press release, the Board of Directors of the Company declared a dividend of one preferred share purchase right for each outstanding share of common stock. The rights are intended to enable all shareholders to realize the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. value of their shares in the Company. The action was taken in response to the acquisition by a competitor of a significant interest in the Company. The Company has also filed litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. based on the unlawful manner in which the interest was acquired. CONFERENCE CALL George F. Donovan, President and Chief Executive Officer, and Anthony M. Puleo, Senior Vice President and Chief Financial Officer, will host a conference call on July 31, 2006 at 11 a.m. ET to discuss this news release. The telephone number to join this conference call is (866) 202-4367 (Domestic) or (617) 213-8845 (International). Use the code 72518094. A recorded replay of the call will be available until 11:59 p.m. ET on Thursday Thursday: see week. , August 31, 2006. Listeners may dial (888) 286-8010 (Domestic) or (617) 801-6888 (International) and use the code 57611830 for the replay. In addition, the conference call will be broadcast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at Bluegreen's corporate Web site, www.bluegreencorp.com. To listen to the live call on the Internet, go to the Web site at least 15 minutes early to register, download To receive a file transmitted over a network. In any communications session, "download" means receive, and "upload" means send. The download/upload often implies a big/little scenario, in which data is being downloaded from the "big" server into the "little" user's computer. and install any necessary audio software. If you are unable to participate in the live call, the conference call will be archived and can be accessed on Bluegreen Corporation's Web site for approximately 90 days. ABOUT BLUEGREEN CORPORATION Bluegreen Corporation (NYSE:BXG) is a leading provider of Colorful Places to Live and Play(R) through two principal operating divisions. With over 150,000 owners, Bluegreen Resorts markets a flexible, real estate-based vacation ownership plan that provides access to over 40 resorts, an exchange network of over 3,700 resorts and other vacation experiences such as cruises and hotel stays. Bluegreen Communities has sold over 51,000 planned residential and golf community homesites in 32 states since 1985. Founded in 1966, Bluegreen is headquartered in Boca Raton, Fla., and employs over 5,000 associates. In 2005, Bluegreen ranked No. 57 on Forbes' list of The 200 Best Small Companies and No. 48 on FORTUNE's list of America's 100 Fastest Growing Companies. More information about Bluegreen is available at www.bluegreencorp.com. Statements in this release may constitute forward looking statements and are made pursuant to 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. Provision of the Private Securities and Litigation Reform Act of 1995. Forward looking statements are based largely on expectations and are subject to a number of risks and uncertainties including but not limited to the risks and uncertainties associated with economic, competitive and other factors affecting the Company and its operations, markets, products and services, as well as the risk that Company-wide growth and growth at Resorts and Communities will not occur as anticipated; the Company will not be able to acquire land or identify new projects, as anticipated; sales and marketing strategies related to new Resorts and Communities properties will not be as successful as anticipated; new Resort and Communities properties and sales offices will not open when expected, will cost more to develop or may not be as successful as anticipated; retail prices and homesite yields for Communities properties will be below the Company's estimates; the effect of the SOP on the operations and results of the Resorts segment; that cost of sales will not be as expected; that deferred sales will not be recognized to the extent or at the time anticipated; and the risks and other factors detailed in the Company's SEC filings, 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. filed on March 16, 2006 and its Form 10-Q Form 10-Q See 10-Q. to be filed on or before August 9, 2006. Bluegreen prepares its financial statements in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with U.S. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). Management believes that the Pro Forma Income Statements included in this release are a key measure to evaluate its operations as management believes they provide a better comparison of the Company's 2006 results of operations to 2005. However, these Pro Forma Income Statements possess material limitations and should not be considered a measure of financial condition or performance in isolation or as an alternative to the Statements of Income, as reported in accordance with GAAP, and as presented, may not be comparable to similarly titled measures of other companies.
BLUEGREEN CORPORATION
Condensed Consolidated Statements of Income
(In 000's, Except Per Share Data)
Three Months Six Months
Ended Ended
------------------------------------
June 30, June 30, June 30, June 30,
2006 2005 2006 2005
------------------------------------
(Unaudited) (Unaudited)
REVENUES:
----------------------------------
Vacation ownership sales $ 91,386 $ 97,019 $165,521 $162,663
Homesite sales 50,561 62,309 98,186 100,686
------------------------------------
Total sales 141,947 159,328 263,707 263,349
Other resort and communities
operations revenue 13,620 18,648 30,287 36,692
Interest income 9,499 8,282 17,672 16,148
Gain on sale of notes receivable 47 4,878 552 9,598
Other income, net 368 - - -
------------------------------------
Total operating revenues 165,481 191,136 312,218 325,787
====================================
EXPENSES:
----------------------------------
Cost of sales:
Vacation ownership cost of sales 21,928 19,895 38,975 33,090
Homesite cost of sales 27,094 31,214 55,269 50,906
------------------------------------
Total cost of sales 49,022 51,109 94,244 83,996
Cost of other resort and
communities operations 12,937 19,363 29,717 38,999
Selling, general and
administrative expense 87,620 81,117 161,205 142,939
Interest expense 3,526 4,053 6,832 7,634
Provision for loan losses - 7,476 - 12,164
Other expense, net - 2,826 267 3,684
------------------------------------
Total operating expenses 153,105 165,944 292,265 289,416
------------------------------------
Income before minority interest
and provision for income tax 12,376 25,192 19,953 36,371
Minority interest in income of
consolidated subsidiary 1,677 948 2,699 1,721
------------------------------------
Income before provision for income
taxes 10,699 24,244 17,254 34,650
Provision for income taxes 4,119 9,334 6,643 13,340
------------------------------------
Income before cumulative effect of
change in accounting principle 6,580 14,910 10,611 21,310
Cumulative effect of change in
accounting principle, net of tax - - (5,678) -
Minority interest in cumulative
effect of change in accounting
principle - - 1,184 -
------------------------------------
Net income $ 6,580 $ 14,910 $ 6,117 $ 21,310
====================================
Income before cumulative effect of
change in accounting principle
per share:
Basic: $ 0.22 $ 0.49 $ 0.35 $ 0.70
Diluted: $ 0.21 $ 0.48 $ 0.34 $ 0.68
Cumulative effect of change in
accounting principle, per share:
Basic: $ - $ - $ (0.15)$ -
Diluted $ - $ - $ (0.14)$ -
Net income per share:
Basic: $ 0.22 $ 0.49 $ 0.20 $ 0.70
====================================
Diluted: $ 0.21 $ 0.48 $ 0.20 $ 0.68
====================================
Weighted average number of common
and common equivalent shares:
Basic 30,526 30,346 31,519 30,332
====================================
Diluted 31,054 31,188 31,089 31,246
====================================
BLUEGREEN CORPORATION
Condensed Consolidated Balance Sheets
(Amounts in Thousands)
June 30, December 31,
2006 2005
ASSETS (Unaudited)
Cash and cash equivalents (unrestricted) $ 43,819 $ 66,383
Cash and cash equivalents (restricted) 26,818 18,321
Contracts receivable, net 40,654 27,473
Notes receivable, net 173,231 127,783
Prepaid expenses 11,109 6,500
Other assets 24,236 17,156
Inventory, net 331,826 240,969
Retained interests in notes receivable sold 100,395 105,696
Property and equipment, net 90,479 79,634
Intangible assets and goodwill 4,326 4,328
---------------------------
Total assets $846,893 $694,243
===========================
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Accounts payable $ 17,566 $ 11,071
Accrued liabilities and other 47,139 43,801
Deferred income 45,091 29,354
Deferred income taxes 78,482 75,404
Receivable-backed notes payable 56,637 35,731
Lines-of-credit and notes payable 141,528 61,428
10.50% senior secured notes payable 55,000 55,000
Junior subordinated debentures 74,744 59,280
---------------------------
Total liabilities 516,187 371,069
Minority interest 11,043 9,508
Total shareholders' equity 319,663 313,666
---------------------------
Total liabilities and shareholders' equity $846,893 $694,243
===========================
BLUEGREEN CORPORATION
Pro Forma Income Statement Before SOP 04-2 Adjustment
(in thousands, except per share data)
Three Months Ended
--------------------------------------
Actual SOP 04-2 Pro Forma Actual
--------------------------------------
June 30, Pro Forma June 30, June 30,
--------------------------------------
2006 Adjustments 2006 2005
--------------------------------------
REVENUES:
--------------------------------
Vacation ownership sales $ 91,386 $ 21,973 $113,359 $ 97,019
Homesite sales 50,561 - 50,561 62,309
--------------------------------------
Total sales 141,947 21,973 163,920 159,328
Other resort and communities
operations revenue 13,620 2,189 15,809 18,648
Interest income 9,499 - 9,499 8,282
Gain on sales of notes
receivable 47 1,748 1,795 4,878
Other income, net 368 - 368 -
--------------------------------------
Total operating revenues 165,481 25,910 191,391 191,136
======================================
EXPENSES:
--------------------------------
Cost of sales:
Vacation ownership cost of
sales 21,928 1,976 23,904 19,895
Homesite cost of sales 27,094 - 27,094 31,214
--------------------------------------
Total cost of sales 49,022 1,976 50,998 51,109
Cost of other resort and
communities operations 12,937 2,983 15,920 19,363
Selling, general and
administrative expenses 87,620 2,147 89,767 81,117
Interest expense 3,526 3,526 4,053
Provision for loan losses - 8,484 8,484 7,476
Other expense - - - 2,826
--------------------------------------
Total operating expenses 153,105 15,590 168,695 165,944
--------------------------------------
Income before minority interest
and provision for income taxes 12,376 10,320 22,696 25,192
Minority interest in income of
consolidated subsidiary 1,677 411 2,088 948
--------------------------------------
Income before provision for
income taxes 10,699 9,909 20,608 24,244
Provision for income taxes 4,119 3,815 7,934 9,334
--------------------------------------
Income before cumulative effect
of change in accounting
principle 6,580 6,094 12,674 14,910
Cumulative effect of change in
accounting principle, net of
tax - - - -
Minority interest in cumulative
effect of change in accounting
principle - - - -
--------------------------------------
Net income $ 6,580 $ 6,094 $ 12,674 $ 14,910
======================================
Income before cumulative effect
of change in accounting
principle per share:
Basic $ 0.22 $ 0.20 $ 0.42 $ 0.49
Diluted $ 0.21 $ 0.20 $ 0.41 $0.48
Cumulative effect of change in
accounting principle, per share
Basic $ - $ - $ - $ -
Diluted $ - $ - $ - $ -
Net income per share
Basic $ 0.22 $ 0.20 $ 0.42 $ 0.49
======================================
Diluted $ 0.21 $ 0.20 $ 0.41 $ 0.48
======================================
Weighted Average Number of
Common and Common Equivalent
Shares:
Basic 30,526 30,526 30,526 30,346
======================================
Diluted 31,054 31,054 31,054 31,188
======================================
BLUEGREEN CORPORATION
Pro Forma Income Statement Before SOP 04-2 Adjustment
(in thousands, except per share data)
Six Months Ended
--------------------------------------
Actual SOP 04-2 Pro Forma Actual
--------------------------------------
June 30, Pro Forma June 30, June 30,
--------------------------------------
2006 Adjustments 2006 2005
--------------------------------------
REVENUES:
--------------------------------
Vacation ownership sales $165,521 $ 25,977 $191,498 $162,663
Homesite sales 98,186 - 98,186 100,686
--------------------------------------
Total sales 263,707 25,977 289,684 263,349
Other resort and communities
operations revenue 30,287 3,809 34,096 36,692
Interest income 17,672 - 17,672 16,148
Gain on sales of notes
receivable 552 6,042 6,954 9,598
Other income, net - - - -
--------------------------------------
Total operating revenues 312,218 35,828 348,046 325,787
======================================
EXPENSES:
--------------------------------
Cost of sales:
Vacation ownership cost of
sales 38,975 2,324 41,299 33,090
Homesite cost of sales 55,269 - 54,957 50,906
--------------------------------------
Total cost of sales 94,244 2,324 96,256 83,996
Cost of other resort and
communities operations 29,717 5,652 36,400 38,999
Selling, general and
administrative expenses 161,205 2,122 162,608 142,939
Interest expense 6,832 - 6,832 7,634
Provision for loan losses - 12,875 12,875 12,164
Other expense 267 - 267 3,684
--------------------------------------
Total operating expenses 292,265 22,973 315,238 289,416
--------------------------------------
Income before minority interest
and provision for income taxes 19,953 12,856 32,809 36,371
Minority interest in income of
consolidated subsidiary 2,699 250 2,949 1,721
--------------------------------------
Income before provision for
income taxes 17,254 12,605 29,859 34,650
Provision for income taxes 6,643 4,853 11,496 13,340
--------------------------------------
Income before cumulative effect
of change in accounting
principle 10,611 7,752 18,363 21,310
Cumulative effect of change in
accounting principle, net of
tax (5,678) 5,678 - -
Minority interest in cumulative
effect of change in accounting
principle 1,184 (1,184) - -
--------------------------------------
Net income $ 6,117 $ 12,246 $ 18,363 $ 21,310
======================================
Income before cumulative effect
of change in accounting
principle per share:
Basic $ 0.35 $ 0.25 $ 0.60 $ 0.70
Diluted $ 0.34 $ 0.25 $ 0.59 $ 0.68
Cumulative effect of change in
accounting principle, per share
Basic $ (0.15) $ 0.15 $ - $ -
Diluted $ (0.14) $ 0.14 $ - $ -
Net income per share
Basic $ 0.20 $ 0.40 $ 0.60 $ 0.70
======================================
Diluted $ 0.20 $ 0.39 $ 0.59 $ 0.68
======================================
Weighted Average Number of
Common and Common Equivalent
Shares:
Basic 30,519 30,519 30,519 30,332
======================================
Diluted 31,089 31,089 31,089 31,246
======================================
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