Bluegreen Corporation Reports Record First Quarter Financial Results.Business Editors/Travel Writers 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 26, 2004 Bluegreen Corporation (NYSE NYSE See: New York Stock Exchange : BXG) Q1 2004 vs. Q1 2003 Highlights -- Net income increased 121% to $4.7 million, or $.17 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 -- Bluegreen(R) Resorts sales rose 19% to $53.1 million -- Communities sales up 92% to $33 million -- 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. increased 33% to $107.2 million Bluegreen Corporation (NYSE: BXG), a leading U.S. developer and marketer of drive-to vacation ownership resorts ("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. ") 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 record financial results for the first quarter of 2004 (see attached tables). George F. Donovan, President and Chief Executive Officer of Bluegreen, commented, "Resorts sales, Communities sales and net income for the three months ended March 31, 2004 established new first quarter records. Sales at Bluegreen Resorts were higher due to an expanded portfolio of quality properties, the success of our marketing programs and the continued growth of the Bluegreen Vacation Club(R). Bluegreen Communities sales nearly doubled, reflecting the sales at several properties opened during 2003, as well as sales of homesites in existing Communities." RECORD NET INCOME Net income for the first quarter of 2004 rose 121% to a first quarter record $4.7 million, or $.17 per diluted share, on approximately 30.3 million weighted average common and common equivalent shares outstanding ("shares outstanding"), compared to net income of $2.1 million, or $.09 per diluted share, on approximately 24.7 million shares outstanding, for the same period last year. RECORD RESORTS AND COMMUNITIES RESULTS Resorts sales in the first quarter of 2004 increased 19% to a record $53.1 million from $44.6 million in the same period last year. Higher sales in these periods were due primarily to continued same-resort sales increases at a majority of Bluegreen's properties together with contributions from sales offices at The Fountains(TM) resort in Orlando, FL, Grande Villas at World Golf Village(R) in St. Augustine, FL and an offsite sales office in Harbor Springs, MI, each of which were opened after the first quarter of 2003. Communities sales in the first quarter of 2004 increased 92% to a record $33.0 million from $17.2 million in the same period last year. This increase was due primarily to strong sales at Bluegreen Golf Communities such as Traditions of Braselton(TM), located near Atlanta, GA, and Sanctuary Cove Sanctuary Cove is a gated community, in the suburb of Hope Island in the Gold Coast area of Queensland, Australia. It was the first of such developments in Australia and is notable for its impact in planning legislation in Queensland which had to be altered to allow it to proceed, at St. Andrews Sound, located among Georgia's Golden Isles, which opened for sales in April 2003 and December 2003, respectively. New properties in Texas that opened subsequent to the first quarter of 2003, such as Quail quail, common name for a variety of small game birds related to the partridge, pheasant, and more distantly to the grouse. There are three subfamilies in the quail family: the New World quails; the Old World quails and partridges; and the true pheasants and seafowls. Springs Ranch(TM) near Dallas/Fort Worth and Mountain Springs Ranch(TM) located minutes from 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. , also contributed to higher Communities sales. Recognition of Communities sales was impacted by the effect of percentage-of-completion accounting. As of March 31, 2004, approximately $29.8 million and $12.5 million of 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. It is anticipated that these amounts will be recognized in future periods ratably with the development of the projects. Total positive net interest spread (interest income less interest expense) was $1.0 million in the first quarter of 2004 as compared to $751,000 in the first quarter of 2003. Interest expense rose primarily as a result of debt incurred in connection with property acquisitions subsequent to the first quarter of 2003. Interest income increased primarily as a result of a higher average portfolio of vacation ownership notes receivable during the first quarter of 2004 compared to the same period one year ago. OPERATING EFFICIENCIES Although total sales for the first quarter of 2004 increased 40%, selling, general and administrative expenses as a percentage of total sales declined to 59% from 63% in the same period last year; selling, general and administrative expenses as a percentage of total operating revenues also declined to 47% from 49% in the comparable prior year period. FINANCIAL POSITION Bluegreen's balance sheet at March 31, 2004 reflected a book value of $7.64 per share, compared to a book value of $7.50 per share at December 31, 2003, 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 1.19:1, as compared to 1.38:1 at December 31, 2003. From December 31, 2003 through March 31, 2004, holders of $3.2 million in principal amount of Bluegreen's 8.25% Convertible Subordinated Debentures subordinated debenture An unsecured bond with a claim to assets that is subordinate to all existing and future debt. Thus, in the event that the issuer encounters financial difficulties and must be liquidated, all other claims must be satisfied before due 2012 voluntarily converted their holdings into shares of the Company's common stock at a conversion price of $8.24 per share. ABOUT BLUEGREEN CORPORATION Bluegreen is one of the leading companies engaged in the acquisition, development, marketing and sale of vacation ownership resorts and residential homesites. Bluegreen Resorts are located in a variety of popular vacation destinations, including: Marathon, Florida Marathon is a city on Boot Key, Key Vaca, Fat Deer Key, Long Point Key, Crawl Key and Grassy Key islands in the middle Florida Keys, in Monroe County, Florida, in the United States. As of the 2000 census, the city had a total population of 10,255. ; 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. ; Ormond Beach Ormond Beach, resort and residential city (1990 pop. 29,721), Volusia co., NE Fla., on Halifax River (a lagoon) and the Atlantic Ocean; inc. 1880. It was founded (1873) as a health resort and was the winter home of several famous people, including John D. , FL; St. Augustine, Florida Parameter not given Error... ''Template needs its first parameter as beg[in], mid[dle], or end. Parameter not given Error... ; 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. ; 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. ; 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 ; 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. ; Ridgedale, Missouri; Boyne Falls, Michigan Boyne Falls is a village in Charlevoix County in the U.S. state of Michigan. The population was 370 at the 2000 census. The village is located on the Boyne River, near the junction of the north and south branches. ; and Aruba, while its Bluegreen Communities operations are predominantly 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, that the cost of or the Company's estimates of the total anticipated cost of its real estate projects increase and therefore adversely impact profits including the profits recognized under the percentage-of-completion method of accounting, that the Company's sources of financing may not be available or prove to be sufficient, that the efficiency of the Company's operations may decrease and net income may decrease and the other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including its most recent 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 29, 2004 and its Quarterly Report on Form 10-Q Form 10-Q See 10-Q. to be filed on or before May 17, 2004.
BLUEGREEN CORPORATION
Condensed Consolidated Income Statements
(In 000's, Except Per Share Data)
Three Months Ended
-------------------------
(Unaudited)
March 31, March 31,
2004 2003
------------ ------------
REVENUES:
---------
Bluegreen Resorts sales $53,147 $44,562
Bluegreen Communities sales 33,044 17,220
------------ ------------
Total sales of real estate 86,191 61,782
Other resort and communities operations
revenue 13,625 13,212
Interest income 5,021 3,755
Gain on sale of notes receivable 2,380 1,561
Other income - 572
------------ ------------
Total operating revenues 107,217 80,882
------------ ------------
EXPENSES:
---------
Cost of sales of real estate:
Bluegreen Resorts 10,859 9,640
Bluegreen Communities 18,381 9,420
------------ ------------
Total cost of sales of real estate 29,240 19,060
Cost of other resort and communities
operations 13,760 14,147
Selling, general and administrative expense 50,675 39,230
Interest expense 3,999 3,004
Provision for loan losses 870 1,526
Other expense 201 -
------------ ------------
Total operating expenses 98,745 76,967
------------ ------------
Income before minority interest and
provision
for income taxes 8,472 3,915
Minority interest in income of consolidated
subsidiary 829 457
------------ ------------
Income before provision for income taxes 7,643 3,458
Provision for income taxes 2,943 1,331
------------ ------------
Net income $4,700 $2,127
============ ============
Net income per share:
Basic: $0.19 $0.09
============ ============
Diluted: $0.17 $0.09
============ ============
Weighted average number of common and
common equivalent shares:
Basic 25,190 24,588
============ ============
Diluted 30,319 24,687
============ ============
BLUEGREEN CORPORATION
Condensed Consolidated Balance Sheets
(in 000's)
March 31, December 31,
2004 2003
ASSETS (Unaudited)
Cash and cash equivalents (unrestricted) $39,297 $39,491
Cash and cash equivalents (restricted) 40,193 33,540
Contracts receivable, net 41,155 25,522
Notes receivable, net 80,731 94,194
Other assets 32,119 33,364
Inventory, net 212,016 219,890
Retained interests in notes receivable sold 66,549 60,975
Property and equipment, net 65,874 63,430
------------ ------------
Total assets $577,934 $570,406
============ ============
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Accounts payable, accrued liabilities and
other $69,244 $59,158
Deferred income 24,352 18,646
Deferred income taxes 46,652 43,924
Lines-of-credit and notes payable 94,138 112,779
10.50% senior secured notes payable 110,000 110,000
8.25% convertible subordinated debentures 31,126 34,371
------------ ------------
Total liabilities 375,512 378,878
Minority interest 5,465 4,648
Total shareholders' equity 196,957 186,880
------------ ------------
Total liabilities and shareholders'
equity $577,934 $570,406
============ ============
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