Bluegreen Corporation Reports First Quarter Results; Net Income Rises 103% on 19% Increase in Total Operating Revenues.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)--April 29, 2003 Bluegreen Corporation (NYSE NYSE See: New York Stock Exchange : BXG), a leading U.S. developer and marketer of drive-to 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 ("Bluegreen(R) Resorts") and planned residential and golf communities ("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. "), today announced financial results for the three months ended March 31, 2003 (see attached tables). Net income for the first quarter of 2003 increased 103% to $2.1 million, or $.09 per share, from $1.0 million, or $.04 per share, for the same period one year ago. 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 rose 33.5% to $44.6 million from $33.4 million in the same period last year. This increase was due to strong sales performance at the Company's off site sales office in Bloomington, MN, which was opened in November 2002, and the recently opened sales office at Boyne Mountain Boyne Mountain is a year round resort in Northern Michigan (near Boyne City) and was developed around the skiing industry of the region by Everett Kircher. Boyne Mountain now includes golf, tubing, cross country trails, Solace Spa, shopping, fine dining, and has an indoor , MI, one of the newest Bluegreen Vacation Club(R) destinations. It also reflects significant increases in same resort sales, including a doubling of sales 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). Wilderness Club(TM) from the same period last year. Bluegreen Communities sales were $17.2 million versus $22.5 million during the same period one-year ago. This decrease was due primarily to approximately $6.3 million fewer sales in the quarter generated by the Preserve at Jordan Lake Jordan Lake is a man-made lake and reservoir in central North Carolina within the New Hope River Valley, lying mainly within northeastern Chatham County. The lake was initially constructed for the purpose of flood control downstream on the Cape Fear River, but now also serves as a (TM), a Bluegreen Golf Community, compared to last year's first quarter, since the project is substantially sold out. These decreases were partially offset by a $2.0 million sales month at Silver Lakes Ranch(TM) in Texas; March 2003 was the first month of sales for this newest Bluegreen Community. George F. Donovan, President and Chief Executive Officer of Bluegreen, commented, "Bluegreen's continued success in the first quarter reflects the high quality of our properties, as well as the success of our creative sales and marketing strategies. Total cost of sales declined to 31% from 40% in the same period last year, primarily as a result of a higher proportion of Resort sales to total sales in the first quarter. Selling, general & administrative expenses as a percentage of total operating revenues operating revenue Revenue from any regular source. Revenue from sales is adjusted for discounts and returns when calculating operating revenue. Compare other revenue. also decreased, reflecting our ability to leverage overall sales growth." He continued, "The initial success of our new Resorts sales offices and properties was complemented by solid same-resort sales growth at Big Cedar Wilderness Club, Laurel Laurel, cities, United States Laurel. 1 Town (1990 pop. 19,438), Prince Georges co., central Md., about halfway between Washington, D.C., and Baltimore; patented in the late 1600s, inc. 1870. Crest(TM), Falls Village(TM), Shore Crest(TM), Harbour Lights(TM), MountainLoft(TM), Shenandoah Crossing(TM) and Orlando's Sunshine(TM). Overall sales volume at Bluegreen Resorts attributable to existing owners, as well as prospects referred to the Company by owners and others, increased approximately 43%. The Company believes this increase in owner and referral sales volume speaks to the high quality leisure experience that Bluegreen provides its owners." Mr. Donovan concluded, "We continue to focus on locating and developing Communities that broaden our portfolio and satisfy the demands of our customers. We are very pleased to announce the availability of a new Bluegreen Golf Community in Braselton, Georgia Braselton is a town in Jackson, Gwinnett, Barrow, and Hall Counties in the State of Georgia, about 40 miles northeast of Atlanta. As of the 2000 census, the town had a total population of 1,206. Census Estimates for 2005 show a population of 2,294. called Traditions of Braselton(TM). Traditions of Braselton, located outside of Atlanta, is scheduled to have its grand opening during the weekend of June 7-9, 2003. We anticipate that this property will generate total sales of approximately $80 million over an anticipated seven-year sell-out period." Bluegreen's balance sheet at March 31, 2003 was highlighted by a book value of $6.52 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 1.23:1. During the first quarter, Bluegreen sold approximately $28.7 million of timeshare receivables under its existing timeshare receivables purchase facility. The receivables were sold 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 (except for breaches of certain representations and warranties) and the Company retained a residual interest Residual Interest A type of interest payment received by investors in a real estate mortgage investment conduit (REMIC). Notes: Investors receive interest payments after all required regular interest has been paid to investors within higher priority tranches. in the receivables. Bluegreen will continue to service the receivables that were sold. This sale generated approximately $24.4 million in cash and the Company recognized a $1.6 million gain on the sale of these receivables. Bluegreen is one of the leading companies engaged in the acquisition, development, marketing and sale of Bluegreen Resorts and Bluegreen Communities. Bluegreen 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 ; Ridgedale, Missouri; Surfside, Florida |CITIZEN'S BLOG = [2] Surfside is a town in Miami-Dade County, Florida, United States. The population was 4,909 at the 2000 census. As of 2005, the population recorded by the U.S. Census Bureau is 4,710. ; Boyne Mountain, MI; and Aruba, while its Bluegreen Communities operations are predominantly pre·dom·i·nant adj. 1. Having greatest ascendancy, importance, influence, authority, or force. See Synonyms at dominant. 2. located in the Southeastern and Southwestern United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . This press release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. and the Company desires to take advantage of the "safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. " provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 in connection with these statements. Statements contained herein are not statements of historical fact may be deemed forward-looking statements. The words "believe," "expect," "intend," "anticipate," "project," "may," "should," "designed to," "estimate," "hope," "plan" and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. The Company does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements are based on current expectations and assumptions and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and many of which are beyond the Company's control. Future events 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 to include, but are not limited to, the following: that sales and marketing strategies will not be as successful as anticipated, new properties may not be successful or the sell-out period will be longer than projected, the Company may not have sufficient sources of financing, may not be able to consummate To carry into completion; to fulfill; to accomplish. A Common-Law Marriage is consummated when the parties live in a manner intended to bring about public recognition of their relationship as Husband and Wife. future sales of receivables or may not realize the gain on sales of these receivables, and the other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including its most recent Transition Report on Form 10-KT filed on March 31, 2003, and its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. to be filed on or about May 15, 2003.
BLUEGREEN CORPORATION
Consolidated Income Statements
(In 000's, Except Per Share Data)
(UNAUDITED)
Three Months Ended
------------------------
March 31, March 31,
2003 2002
------------ -----------
REVENUES:
----------------------------------------------
Sales:
Timeshare sales $ 44,562 $ 33,380
Home site sales 17,220 22,545
------------ -----------
Total Sales 61,782 55,925
Other resort and golf operations revenue 13,212 6,286
Interest income 3,755 3,592
Gain on sale of notes receivable 1,561 2,066
Other income 572 115
------------ -----------
Total operating revenues 80,882 67,984
------------ -----------
EXPENSES:
----------------------------------------------
Cost of sales:
Timeshare cost of sales 9,640 7,862
Home site cost of sales 9,420 14,530
------------ -----------
Total cost of sales 19,060 22,392
Cost of other resort and golf operations 14,147 5,700
Selling, general and administrative expense 39,230 33,899
Interest expense 3,004 2,888
Provision for loan losses 1,526 1,168
------------ -----------
Total operating expenses 76,967 66,047
------------ -----------
Income before taxes 3,915 1,937
Provision for income taxes 1,507 746
Minority interest in income of consolidated
subsidiary 281 142
------------ -----------
Net income $ 2,127 $ 1,049
============ ===========
Net income per share:
Basic $ 0.09 $ 0.04
============ ===========
Diluted $ 0.09 $ 0.04
============ ===========
Weighted average number of common and
common equivalent shares:
Basic 24,588 24,304
============ ===========
Diluted 24,687 24,407
============ ===========
Pro forma effect of retroactive application of
change in accounting principle(1):
Net loss $ (86)
===========
Basic earnings per share: $ 0.00
===========
Diluted earnings per share: $ 0.00
===========
(1) See March 31, 2003 Transition Report on Form 10-KT. Effective
April 1, 2002, the Company changed its method of accounting for
the costs associated with generating timeshare tours. As a result
of the change, the Company recorded a cumulative effect adjustment
as of April 1, 2002. The pro forma amounts presented above reflect
the results of the Company for the three-month period ended March
31, 2002, as if the newly adopted accounting principle had been
applied during that period.
BLUEGREEN CORPORATION
Condensed Consolidated Balance Sheets
(in 000's)
March 31, December 31,
2003 2002
(unaudited)
ASSETS
Cash and cash equivalents (unrestricted) $ 26,210 $ 26,354
Cash and cash equivalents (restricted) 27,127 20,551
Contracts receivable, net 19,165 16,230
Notes receivable, net 57,315 61,795
Inventory, net 191,645 173,131
Retained interests in notes receivable sold 49,985 44,228
Property and equipment, net 52,486 51,787
Other assets 40,162 39,916
------------ -----------
Total assets $ 464,095 $ 433,992
============ ===========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Accounts payable, accrued liabilities and
other $ 49,445 $ 37,415
Deferred income 20,549 19,704
Deferred income taxes 32,673 31,208
Lines-of-credit and notes payable 53,191 39,769
10.50% senior secured notes payable 110,000 110,000
8.25% convertible subordinated debentures 34,371 34,371
------------ -----------
Total liabilities 300,229 272,467
Minority interest 3,523 3,242
Total shareholders' equity 160,343 158,283
------------ -----------
Total liabilities and shareholders' equity $ 464,095 $ 433,992
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