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BFC Financial Corporation Announces Financial Results For the Fourth Quarter and Full Year 2005.

FORT LAUDERDALE, Fla., March 31 /PRNewswire-FirstCall/ -- BFC Financial Corporation ("BFC" or "the Company"), a diversified holding company that invests in and acquires operating businesses in a variety of industries, today announced financial results for the fourth quarter and the full year 2005. Since BFC is a holding company and has only limited operations, BFC's earnings are primarily driven by the earnings of the operating companies representing its principal investments. For the quarter ended December 31, 2005, BFC net income available to common shareholders was $3.4 million, compared with $2.7 million earned in the corresponding quarter in 2004. Diluted earnings per share were $0.10 in the fourth quarter of 2005, compared to $0.09 in the corresponding quarter in 2004. Net income available to common shareholders for the year ended December 31, 2005 was $12.0 million, compared with $13.8 million for the comparable 2004 period. Diluted earnings per share were $0.38 for the year ended December 31, 2005, compared to $0.47 for the comparable 2004 period.

The operations and gain related to a shopping center previously owned by a wholly owned subsidiary of BFC were classified as a discontinued operation during the fourth quarter of 2005. As such, net income includes discontinued operations net of income taxes of $2.8 million for the year ended December 31, 2005. The year ended December 31, 2005 also included an after tax impairment charge, net of noncontrolling interest, of $322,000 associated with BankAtlantic Bancorp's decision to vacate and raze BankAtlantic Bancorp's former headquarters in conjunction with the opening of a new corporate headquarters building and a reserve net of noncontrolling interest and taxes of $868,000 established by BankAtlantic for possible fines and penalties associated with a previously disclosed deficiency in its Anti-Money Laundering and Bank Secrecy Act compliance. The 2004 period included two items resulting in a $1.4 million net after-tax gain, a litigation settlement gain and costs associated with the prepayment by BankAtlantic Bancorp of certain high cost debt. Excluding the effect of these items in 2004 and 2005, BFC's net income available to common shareholders for the year ended December 31, 2005 would have been $10.4 million, compared to $12.6 million for the year ended December 31, 2004. The quarter ended December 31, 2005 included discontinued operations of $3.1 million and the $868,000 reserve related to compliance issues. The quarter ended December 31, 2004 included the loss from discontinued operations of $81,000. Excluding the effect of these items in 2004 and 2005, BFC's net income available to common shareholders for the quarter ended December 31, 2005 would have been $1.2 million, compared to $2.8 million for the quarter ended December 31, 2004.

The Company noted that the reduction in earnings was primarily the result of the strategic long-term initiatives of BankAtlantic Bancorp and Levitt Corporation. Each of those companies believed that its respective strategic decision, while negatively impacting short-term earnings growth, positions each company for future growth and improved profitability. These initiatives included:

* BankAtlantic increasing its investment in marketing and related initiatives with a view to sustaining high-growth rates in its low cost deposit base and continuing to expand its branch network in its Florida market footprint.

* Levitt Corporation investing in and strengthening its infrastructure, management, processes, systems and land acquisition as part of a strategy to build a sustainable national platform allowing it to significantly increase its current levels of home deliveries over the next 5 years and beyond.

BFC further noted that its commitment as an investor in operating businesses is long-term and that it fully supports its portfolio companies' decision to build their respective businesses with a long-term view toward sustainable and prudent earnings growth, even if this may reduce earnings levels in the short term.

The Company further noted that during 2005, BFC purchased an additional 400,000 shares of Benihana Inc. Series B Convertible Preferred Stock ("Convertible Preferred Stock") pursuant to an agreement entered with Benihana in June 2004 to purchase an aggregate of 800,000 shares of Convertible Preferred Stock. The purchase brings BFC's ownership of Benihana to 800,000 shares of Convertible Preferred Stock and completes BFC's contractual commitment to purchase shares in Benihana. Based upon Benihana's current outstanding capital stock, the Convertible Preferred Stock, if fully converted, would represent approximately 23% of Benihana voting common stock and 10% of Benihana's outstanding equity interest.

Segment Income

The following table shows net income for each segment and earnings per share including the items discussed above for the three and twelve months ended December 30, 2005 and 2004 (in thousands, except per share data):
 Three Months Ended Year Ended
 2005 2004 2005 2004
 BFC Activities $(538) $(3,729) $(11,853) $(9,736)
 Financial Services (1,493) 17,293 59,182 70,768
 Homebuilding & real
 estate development 8,333 16,960 54,911 57,362
 Eliminations (346) -- (1,142) --
 Income before noncontrolling
 interest and discontinued
 operations 5,956 30,524 101,098 118,394
 Noncontrolling interest 5,481 27,506 91,144 103,994
 Income from continuing
 operations 475 3,018 9,954 14,400
 Discontinued operations 3,110 (81) 2,820 (170)
 Net income 3,585 2,937 12,774 14,230
 5% Preferred Stock dividends 188 188 750 392
 Net income available to
 common shareholders $3,397 $2,749 $12,024 $13,838

 Basic earnings per share from
 continuing operations $0.01 $0.12 $0.32 $0.58
 Basic earnings per share from
 discontinued operations $0.10 $(0.01) $0.10 $(0.01)
 Basic earnings per share $0.10 $0.11 $0.42 $0.57

 Diluted earnings per share
 from continuing operations $0.01 $0.10 $0.29 $0.48
 Diluted earnings per share
 from discontinued operations $0.09 $(0.01) $0.09 $(0.01)
 Diluted earnings per share $0.10 $0.09 $0.38 $0.47

 Basic weighted average number
 of common shares outstanding 31,829 24,507 28,952 24,183
 Diluted weighted average
 number of common and common
 equivalent shares
 outstanding 33,625 27,892 31,219 27,806




* The "BFC Activities" segment includes BFC's real estate owned, loans receivable that relate to previously owned properties, investment in Benihana Convertible Preferred Stock, other securities and investments, including the operations of its wholly-owned subsidiary Cypress Creek Capital, BFC's overhead and interest expense and the financial results of venture partnerships which BFC controls. Since BFC is a holding company whose principal activities consist of managing investments and seeking and evaluating potential new investments, BFC itself has no significant direct revenue or cash-generating operations. Accordingly, the "BFC Activities" segment will normally reflect a loss as the current amount of dividends, interest and fees from our investments do not currently cover BFC parent company operating costs.

* During 2004, a limited partnership included in the BFC Activities segment recorded a $2.1 million net gain in connection with the sale of shares in a technology company. Also, in 2004, BFC Activities included the net gain discussed above and a $0.7 million net gain from the settlement of litigation with the technology company.

* In 2005, employee compensation and benefits increased due to an increase in the number of employees and the granting of a deferred compensation benefit.

* I.R.E BMOC, Inc ("BMOC"), a wholly owned subsidiary of BFC, owned an outlet center retail mall located in Burlington, North Carolina that was acquired in 1985. The loss of a tenant in 2004 resulted in negative cash flow. In December 2005, the shopping center was transferred to the holder of an $8.2 million mortgage on the property in full settlement of the mortgage obligation. The Company recognized after-tax income of $2.8 million from the transfer of the shopping center which is included above as discontinued operations.

* The "Financial Services" segment includes BankAtlantic Bancorp and its subsidiaries, BankAtlantic and Ryan Beck & Co.

* The "Homebuilding & Real Estate Development" segment includes Levitt Corporation and its subsidiaries, Levitt and Sons and Core Communities, and Levitt's investment in Bluegreen.

* "Noncontrolling Interest" is an accounting term for that portion of a consolidated entity that is owned by others. Both BankAtlantic Bancorp and Levitt Corporation are consolidated in BFC's financial statements because of BFC's voting control ownership position in each of those companies, even though BFC's equity ownership is less than a majority in each entity. At December 31, 2005, BFC owned 21.7% of the economic interest and held 54.9% of the voting control of BankAtlantic Bancorp and 16.6% of the economic interest and 52.9% of the voting control of Levitt Corporation.

Shareholders' Equity or Book Value

Shareholders' equity or book value grew from $125 million as of December 31, 2004 to $183 million as of December 30, 2005. This increase was primarily due to the issuance of 5,957,555 shares of common stock in an underwritten public offering for aggregate net proceeds of approximately $46 million, net income, the effects of subsidiaries' capital transactions, issuance of common stock upon the exercise of stock options and the tax effect of the exercise of stock options.

Market Value of BankAtlantic Bancorp and Levitt Corporation

Our holdings include 13.2 million shares of common stock, or 21.7%, of BankAtlantic Bancorp and 3.3 million shares of common stock, or 16.6%, of Levitt Corporation . The market value of our holdings in these two companies, based upon NYSE closing prices, which will fluctuate from time to time, was $259 million at December 31, 2005.

Other

Our Annual Report on Form 10-K for the year ended December 31, 2005 will contain more information than this press release and was filed with the Securities and Exchange Commission on March 30, 2006. We have also posted the Form 10-K for the year ended December 31, 2005 on BFC's website, which can be accessed via http://www.bfcfinancial.com/ .

About BFC Financial Corporation:

BFC Financial Corporation is a diversified holding company that invests in and acquires private and public companies in different industries. BFC is typically a long-term, "buy and hold" investor whose direct and indirect, diverse ownership interests span a variety of business sectors, including consumer and commercial banking; brokerage and investment banking services; homebuilding; development of master-planned communities; the hospitality and leisure sector through the development, marketing and sales of vacation resorts on a time-share, vacation club model; and the restaurant and family dining business. BFC's current major holdings include BankAtlantic Bancorp and its subsidiaries, BankAtlantic and Ryan Beck & Co.; Levitt Corporation, which includes its subsidiaries Levitt and Sons(TM) and Core Communities; Levitt Corporation's 31% ownership in Bluegreen Corporation, as well as a noncontrolling interest in the renowned national restaurant chain, Benihana, Inc.

For further information, please visit our website at: http://www.bfcfinancial.com/ . To receive future news releases or announcements directly via Email, please click on the Email Broadcast Sign Up button.
 BFC Contact Info:

 Investor and Corporate Communications:
 Sharon Lyn, Vice President
 Email: CorpComm@BFCFinancial.com

 Investor Relations:
 Leo Hinkley, Senior Vice President
 Email: InvestorRelations@BFCFinancial.com

 Mailing Address and Telephone:
 BFC Financial Corporation
 Attn: Investor Relations
 2100 West Cypress Creek Road
 Fort Lauderdale, FL 33309
 Phone: (954) 940-4994
 Fax: (954) 940-5320




Matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. Past performance is no indication of current or future results. These forward-looking statements are based largely on the expectations of BFC and are subject to a number of risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company's control including the risks and uncertainties with respect to its current investments and any future investments, that appropriate investment opportunities on reasonable terms and at reasonable prices will not be available, that sufficient resources may not be available to make desired investments or acquisitions, that the strategic plans and initiatives pursued by its portfolio companies may not be successful, and those disclosed in the Company's filings with the Securities and Exchange Commission. Moreover, this press release contains only summary and partial financial data for the periods in question and is subject to the completion of our audit. More complete information is contained in our 2004 Annual Report on Form 10-K and our quarterly report on Form 10Q filed with the Securities and Exchange Commission and available on BFC's website at http://www.bfcfinancial.com/ . Additional information relating to our publicly-traded portfolio companies, including the risks and uncertainties relating to their respective businesses, is contained in reports filed by these companies with the Securities and Exchange Commission at http://www.sec.gov/ .

CONTACT: Investor and Corporate Communications, Sharon Lyn, Vice President, CorpComm@BFCFinancial.com, or Investor Relations, Leo Hinkley, Senior Vice President, InvestorRelations@BFCFinancial.com, both of BFC Financial Corporation, +1-954-940-4994, or fax, +1-954-940-5320

Web site: http://www.bfcfinancial.com/
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Date:Mar 31, 2006
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