Bluegreen Corporation Reports 2007 First Quarter Results.* 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 Increase to a First Quarter Record $87.1 Million * 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 Decline to $34.9 Million * Net Income Rises to $5.3 Million, or $0.17 Per Diluted Share * Book Value of $11.60 Per Share 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 first quarter ended March 31, 2007 (see attached tables). Total sales in the first quarter of 2007 were $122.0 million compared to total sales of $121.8 million in the first quarter of 2006, reflecting record Vacation Ownership ("Resorts") sales notwithstanding a decline in Homesite ("Bluegreen Communities") sales. Net income for the first quarter of 2007 rose to $5.3 million, or $0.17 per diluted share, from a net loss of $463,000, or $0.01 per diluted share, in the same period last year. The net loss for the first quarter of 2006 included a cumulative effect of change in accounting principle charge totaling $4.5 million, or $0.14 per diluted share. Income before cumulative effect of change in accounting principle for the first quarter of 2007 rose 32.3% to $5.3 million, or $0.17 per diluted share, from $4.0 million, or $0.13 per diluted share, in the first quarter of 2006. BLUEGREEN RESORTS Bluegreen Resorts sales increased 17.6% to a first quarter record $87.1 million from $74.1 million in the first quarter of 2006. Higher Resorts sales were primarily attributable to a 15.2% increase in same-resort sales, led by sales offices at The Fountains resort in 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 Bluegreen Wilderness Club[TM] at Big Cedar[R] in Ridgedale, Missouri, MountainLoft[TM] in Gatlinburg, Tennessee Gatlinburg is a city in Sevier County, Tennessee, with a total population of 3,828, as of the 2000 U.S. census. The city is a popular vacation resort, as it rests on the border of the Great Smoky Mountains National Park along U.S. , the Smoky Mountain Smoky Mountain may refer to:
Sales to the Bluegreen Vacation Club[R] owner base also contributed to improved Resorts results. These sales increased by 27.8% during the first quarter of 2007 as compared to the same period last year, and comprised 38.2% of Resorts sales for the three months ended March 31, 2007 as compared to 33.4% of Resorts sales during the first quarter of 2006. Higher sales were also attributable, to a lesser extent, to the opening of new sales offices in 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. , Nevada, 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. , and 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. , as well as a system-wide price increase that went into effect during March 2007. Resorts cost of sales in the first quarter 2007 declined to 21.7% of sales from 23.0% in the first quarter of 2006. During the first quarter of 2007, gross margin was positively impacted by the application of Statement of Financial Accounting Standards No. 152, "Accounting for Real Estate Time-sharing Transactions" ("SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System 152") and the previously discussed price increase. These increases were partially offset by a higher proportion of Resort sales in relatively higher cost properties. John M. Maloney Jr., President and Chief Executive Officer of Bluegreen, commented, "The growth at our Resorts segment was robust during the first quarter of 2007, reflecting strong industry demand and increased brand recognition of the Bluegreen Vacation Club[R]. Construction remains substantially on schedule at our two newest Bluegreen Resorts in Las Vegas and Williamsburg, Virginia. Our Las Vegas property and the first phase of our Williamsburg property are expected to be available for occupancy by the second quarter of 2008 and, in the aggregate, will add approximately 316 new vacation ownership units." As of March 31, 2007, approximately $32.8 million and $18.4 million of Resorts sales and profits, respectively, were deferred under SFAS 152. These amounts compare to $27.3 million and $15.3 million of sales and profits, respectively, deferred under SFAS 152 as of December 31, 2006. These amounts are expected to be recognized in future periods. As previously announced, effective January 1, 2006 Bluegreen was required to adopt SFAS 152, which changed 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 accounting for incidental operations. Please review the Company's public filings for additional information regarding the adoption and impact of SFAS 152. BLUEGREEN COMMUNITIES Sales at Bluegreen Communities declined to $34.9 million from $47.6 million in the same period last year, reflecting the substantial sell-out of several communities that were in active sales during the first quarter of 2006 and the impact of 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, partially offset by the commencement of sales at three new Bluegreen Communities subsequent to the first quarter of 2006. As previously announced, Bluegreen Communities is currently in a period of inventory replenishment replenishment the addition of an appropriate quantity of properly prepared solution containing the correct concentration of chemicals to the developer solutions used in radiography. . In addition, Communities sales in the first quarter of 2006 included $7.0 million of revenue related to the bulk sale of land in California on a non-retail basis; there was no such sale in the first quarter of 2007. Excluding the impact of percentage-of-completion accounting, several Bluegreen Communities open for more than one year generated higher sales during the first quarter of 2007 as compared to the first quarter of 2006, including The Settlement at Patriot Ranch[TM] (near San Antonio, Texas “San Antonio” redirects here. For other uses, see San Antonio (disambiguation). San Antonio is the second most populous city in Texas, the third most populous metropolitan area in Texas, and is the seventh most populous city in the United States. As of the 2006 U.S. ), Havenwood at Hunter's Crossing[TM] (near San Antonio, Texas), and Sugar Tree on the Brazos (near Dallas/Forth Worth, Texas). Bluegreen Communities also reported strong initial sales at the following Texas properties that commenced sales at various times from September - December 2006: The Bridges at Preston Crossings[TM], a Bluegreen Golf Community (located outside of Dallas, Texas “Dallas” redirects here. For other uses, see Dallas (disambiguation). The City of Dallas (pronounced [ˈdæl.əs] or [ˈdæl. ); Vintage Oaks at the Vineyard[TM] (located outside of 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. ); and King Oaks[TM] (in Grimes Grimes is a surname, that is believed to be of a Scandinavian decent and may refer to
Bluegreen Communities cost of sales in the first quarter of 2007 was 51.2% of sales as compared to 59.2% in the same period one year ago. In the first quarter of 2006, Communities cost of sales was adversely impacted by the $7.0 million bulk sale of land in California on a non-retail basis. Mr. Maloney commented, "We are pleased with recent sales levels at Bluegreen Communities, although we recognize the impact that this segment had on our overall results. While the inventory replenishment process is well underway, it will take time to fully address this issue. We are continuing to prudently address our inventory needs at Bluegreen Communities, by adhering to our goal of offering customers homesites in sought after locales while seeking to maintain economic discipline in connection with our purchases. Over the last two quarters, we have commenced sales at three new properties and have recently taken the necessary steps to begin sales at our newest Bluegreen Community -- Sanctuary River Club at St. Andrews Sound[TM] - in the second quarter of 2007." As of March 31, 2007, approximately $19.0 million and $7.6 million of Bluegreen Communities sales and profits, respectively, were deferred under the percentage-of-completion method of accounting. It is expected that these amounts will be recognized in future periods ratably with the development of the communities. These amounts compare to $18.6 million and $7.7 million of sales and profits, respectively, deferred as of December 31, 2006. The first quarter of 2007 did not benefit from the net recognition of revenue previously deferred under percentage-of-completion accounting, while the first quarter of 2006 benefited from $4.5 million of net revenue recognized under percentage-of-completion, in addition to the previously mentioned $7.0 million bulk sale of land. OTHER FINANCIAL INFORMATION Total positive net interest spread (interest income less interest expense) was $4.7 million in the first quarter of 2007 as compared to $4.9 million in the first quarter of 2006. Interest income increased due to Bluegreen's higher average aggregate balances of notes receivable and retained interests in notes receivable sold, but interest expense also rose due to increased debt related to inventory acquisition and development activities and an increase in the average interest rate on the outstanding balances. As required of all calendar year-end corporations, Bluegreen adopted FASB FASB See: Financial Accounting Standards Board FASB See Financial Accounting Standards Board (FASB). Interpretation 48, "Accounting for Uncertainty in Income Taxes- an interpretation of FASB Statement FASB Statement A standard set by the Financial Accounting Standards Board regarding a financial accounting and reporting method. Essentially, FASB statements determine the acceptable accounting practices that Certified Public Accountants use in reporting No. 109" ("FIN 48"), effective January 1, 2007. This new accounting standard provides guidance for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. The adoption of FIN 48 had no impact on Bluegreen's results of operations, financial position or cash flows. Bluegreen's balance sheet at March 31, 2007 reflected unrestricted cash of $32.7 million, a book value of $11.60 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 0.86:1. CONFERENCE CALL Bluegreen Corporation will host a conference call on May 4, 2007 at 11:00 am ET to discuss this news release. Interested parties may participate in the call by dialing (866) 770-7125 (Domestic) or (617) 213-8066 (International) and use the code 55676194 approximately 10 minutes before the call is scheduled to begin, and ask to be connected to the Bluegreen conference call. A recorded replay of the call will be available until June 4, 2007. Listeners may dial (888) 286-8010 (Domestic) or (617) 801-6888 (International) and use the code 76443498 for the replay. In addition, the conference call will be broadcast live over the Internet 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 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 170,000 owners, Bluegreen Resorts markets a flexible, real estate-based vacation ownership plan that provides access to over 40 resorts and an exchange network of over 3,700 resorts and other vacation experiences such as cruises and hotel stays. Bluegreen Communities has sold over 55,000 planned residential and golf community homesites in 32 states since 1985. Founded in 1966, Bluegreen is headquartered in Boca Raton, Fla., and employs over 5,800 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 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. 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; risks relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc pending or future 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. ; that 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 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; that cost of sales will not be as expected; that sales to existing owners will not continue at current levels; 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, 2007. [TABLE OMITTED] [TABLE OMITTED] |
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