Bluegreen Corporation Reports 2012 Third Quarter Financial Results
Bluegreen Corporation Reports 2012 Third Quarter Financial Results
Q3 2012 Overview
Bluegreen Resorts ("Resorts") system-wide sales of vacation ownership interests ("VOIs") increased 19.9% to $109.1 million from $91.0 million in Q3 2011.
Sales of VOIs made on behalf of Resorts' fee-based services clients, which are included in system-wide sales above, rose 22.7% to $41.7 million from $34.0 million in Q3 2011.
Income from continuing operations attributable to Bluegreen shareholders (defined as income from continuing operations after tax less net income attributable to non-controlling interest) rose 24.1% to $12.0 million, or $0.38 per diluted share, from $9.7 million, or $0.30 per diluted share, in Q3 2011.
Net income rose to $11.7 million, or $0.37 per diluted share, from net income of $7.1 million, or $0.22 per diluted share, in Q3 2011. Q3 2011 included a loss from discontinued operations of $2.6 million, or $0.08 per diluted share, related to Bluegreen Communities, substantially all of the assets of which were sold in May 2012. Q3 2012 loss from discontinued operations of approximately $0.3 million, or $0.01 per diluted share, was related to expenses incurred to satisfy a portion of the obligations of Bluegreen Communities not assumed by the buyer.
Unrestricted cash and cash equivalents at September 30, 2012 of $100.2 million.
BOCA RATON, Fla.--(BUSINESS WIRE)-- Bluegreen Corporation (NYSE: BXG) , a leading timeshare sales, marketing and resort management company, today announced financial results for the quarter and nine months ended September 30, 2012.
John M. Maloney Jr., President and Chief Executive Officer of Bluegreen, commented, "We performed well in the third quarter of 2012, as evidenced by growth at both our traditional VOI and fee-based services businesses, as well as increases in sales tours and sale-to-tour conversion ratios. Our fee-based services business represented approximately 39% and 37% of total system-wide VOI sales for the three and nine months ended September 30, 2012, respectively, up from approximately 37% and 34% in the same respective periods last year. In September, we completed the sale of $100 million of investment-grade timeshare loan-backed notes in a term securitization transaction. This transaction allowed us to refinance at a 2.94% fixed interest rate receivables that were previously pledged under certain of our variable-rate credit facilities, and create approximately $60 million of additional availability under existing receivable-backed credit facilities. Through the first nine months of 2012, we generated free cash flow (defined as cash flow from operating and investing activities) of $138.7 million (including $27.8 million of proceeds from the sale of Bluegreen Communities, prior to the payment of $22.7 million of Bluegreen Communities' debt and related fees) and reduced outstanding debt by approximately $107.3 million."
Additional Q3 2012 operating highlights included:
In connection with its fee-based services business, Resorts sold $41.7 million of third-party VOIs in Q3 2012, generating sales and marketing commissions of approximately $27.8 million. This compares to sales of $34.0 million of third-party VOIs in Q3 2011, which generated sales and marketing commissions of $23.5 million.
Total revenues from fee-based services rose 11.6% to $47.2 million in Q3 2012 from $42.3 million in Q3 2011. Fee-based services contributed an estimated $16.5 million to Resorts operating profit in Q3 2012, compared to an estimated $14.5 million in Q3 2011. As of September 30, 2012, Bluegreen managed 46 timeshare resort properties compared to 45 as of September 30, 2011.
BLUEGREEN RESORTS
Supplemental Financial Data and Reconciliation of System-Wide Sales of VOIs to GAAP Gross Sales of VOIs | |||||||||||||||||||||||||||||||||||||||||
Three and Nine Months Ended September 30, 2012 and 2011 | |||||||||||||||||||||||||||||||||||||||||
(In 000's, except percentages) (Unaudited) | |||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2012 | Three Months Ended September 30, 2011 | ||||||||||||||||||||||||||||||||||||||||
% of | % of | ||||||||||||||||||||||||||||||||||||||||
Traditional | Fee-Based | System-wide | Traditional | Fee-Based | System-wide | ||||||||||||||||||||||||||||||||||||
Timeshare | Services | sales of VOIs, | Timeshare | Services | sales of VOIs, | ||||||||||||||||||||||||||||||||||||
Business | Business | Total | net(6) | Business | Business | Total | net(6) | ||||||||||||||||||||||||||||||||||
System-wide sales of VOI's (1) | $ | 67,421 | $ | 41,698 | $ | 109,119 | 56,993 | $ | 33,983 | $ | 90,976 | ||||||||||||||||||||||||||||||
Change in sales deferred under timeshare | |||||||||||||||||||||||||||||||||||||||||
accounting rules | (2,095 | ) | - | (2,095 | ) | (335 | ) | - | (335 | ) | |||||||||||||||||||||||||||||||
System-wide sales of VOIs, net (1) | 65,326 | 41,698 | 107,024 | 100 | % | 56,658 | 33,983 | 90,641 | 100 | % | |||||||||||||||||||||||||||||||
Less: Sales of third-party VOIs | - | (41,698 | ) | (41,698 | ) | (39 | ) | - | (33,983 | ) | (33,983 | ) | (37 | ) | |||||||||||||||||||||||||||
Gross sales of VOIs | 65,326 | - | 65,326 | 61 | 56,658 | - | 56,658 | 63 | |||||||||||||||||||||||||||||||||
Estimated uncollectible VOI | |||||||||||||||||||||||||||||||||||||||||
notes receivable (2) | (8,354 | ) | - | (8,354 | ) | (13 | ) | (10,770 | ) | - | (10,770 | ) | (19 | ) | |||||||||||||||||||||||||||
Sales of VOIs | 56,972 | - | 56,972 | 53 | 45,888 | - | 45,888 | 51 | |||||||||||||||||||||||||||||||||
Cost of VOIs sold (3) | (12,590 | ) | - | (12,590 | ) | (22 | ) | (11,349 | ) | - | (11,349 | ) | (25 | ) | |||||||||||||||||||||||||||
Gross profit (3) | 44,382 | - | 44,382 | 78 | 34,539 | - | 34,539 | 75 | |||||||||||||||||||||||||||||||||
Fee-based sales commission revenue | - | 27,798 | 27,798 | 26 | - | 23,460 | 23,460 | 26 | |||||||||||||||||||||||||||||||||
Other resort fee-based services revenues | - | 19,401 | 19,401 | 18 | - | 18,838 | 18,838 | 21 | |||||||||||||||||||||||||||||||||
Cost of other resort fee-based services | - | (9,083 | ) | (9,083 | ) | (8 | ) | - | (10,550 | ) | (10,550 | ) | (12 | ) | |||||||||||||||||||||||||||
Net carrying cost of VOI inventory | (1,333 | ) | (1,333 | ) | (1 | ) | (2,362 | ) | - | (2,362 | ) | (3 | ) | ||||||||||||||||||||||||||||
Selling and marketing expense (4) | (30,375 | ) | (19,388 | ) | (49,763 | ) | (46 | ) | (25,462 | ) | (15,272 | ) | (40,734 | ) | (45 | ) | |||||||||||||||||||||||||
Resorts G & A expense (4) | (3,441 | ) | (2,196 | ) | (5,637 | ) | (5 | ) | (3,334 | ) | (2,000 | ) | (5,334 | ) | (6 | ) | |||||||||||||||||||||||||
Bluegreen Resorts operating profit (5) | $ | 9,234 | $ | 16,531 | $ | 25,765 | 24 | % | $ | 3,381 | $ | 14,476 | $ | 17,857 | 20 | ||||||||||||||||||||||||||
Nine Months Ended September 30, 2012 | Nine Months Ended September 30, 2011 | ||||||||||||||||||||||||||||||||||||||||
% of | % of | ||||||||||||||||||||||||||||||||||||||||
Traditional | Fee-Based | System-wide | Traditional | Fee-Based | System-wide | ||||||||||||||||||||||||||||||||||||
Timeshare | Services | sales of VOIs, | Timeshare | Services | sales of VOIs, | ||||||||||||||||||||||||||||||||||||
Business | Business | Total | net(6) | Business | Business | Total | net(6) | ||||||||||||||||||||||||||||||||||
System-wide sales of VOI's (1) | $ | 179,236 | $ | 100,813 | $ | 280,049 | 150,755 | $ | 77,844 | $ | 228,599 | ||||||||||||||||||||||||||||||
Change in sales deferred under timeshare | |||||||||||||||||||||||||||||||||||||||||
accounting rules | (6,249 | ) | - | (6,249 | ) | (1,639 | ) | - | (1,639 | ) | |||||||||||||||||||||||||||||||
System-wide sales of VOIs, net (1) | 172,987 | 100,813 | 273,800 | 100 | % | 149,116 | 77,844 | 226,960 | 100 | % | |||||||||||||||||||||||||||||||
Less: Sales of third-party VOIs | - | (100,813 | ) | (100,813 | ) | (37 | ) | - | (77,844 | ) | (77,844 | ) | (34 | ) | |||||||||||||||||||||||||||
