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Bluegreen sees sales jump, profit slump
South Florida Business Journal - 4:20 PM EST Monday, March 5, 2007
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Fourth quarter sales at Bluegreen Corp. rose 5.5 percent, but profit declined 74 percent.
The Boca Raton-based resorts and communities company said it earned $1.8 million, or 6 cents a share, on sales of $126.9 million for the period. For the fourth quarter the year before, Bluegreen (NYSE: BXG) said it earned of $6.9 million, or 22 cents a share, on sales of $120.3 million.
Bluegreen Resorts sales increased 27.2 percent, to $103.3 million from $81.2 million, as Bluegreen Communities sales declined to $23.6 million from $39.1 million.
A major contributor to the profit decline was about $8.2 million in pre-tax expenses - worth about $5.4 million, or 17 cents a share, after taxes. The expenses consisted of $3.5 million related to the need to repair a lake amenity at a nearly sold-out Bluegreen community, $3.2 million related to a consulting agreement entered into with Bluegreen's former president and chief executive officer, a $1.1 million write-off related to the abandonment of a software development project and $340,000 in additional professional fees related to adoption of a shareholder rights plan and related litigation.
For the year, Bluegreen said it earned $29.8 million, or 96 cents a share, on sales of $563.1 million. The year before, the company said it earned $46.6 million, or $1.49 a share, on sales of $550.3 million.
Sales at Bluegreen Resorts rose 11.4 percent, to $399.1 million from $358.2 million. Sales at Bluegreen Communities declined to $164 million from $192.1 million.
In addition to the fourth quarter expenses, year-end profit also took expenses in the form of a $1.8 million pre-tax charge incurred in the third quarter for the shareholder rights plan and related litigation and a $4.5 million charge for the adoption new accounting standards.
John M. Maloney Jr., Bluegreen president and chief executive officer, said higher Resorts sales were primarily attributable to same-resort sales growth led by sales offices at The Fountains resort in Orlando; The Falls Village resort in Branson, Mo.; MountainLoft in Gatlinburg, Tenn.; and the Bluegreen Wilderness Club at Big Cedar in Ridgedale, Mo., as well as new sales offices in Myrtle Beach, S.C., and the Las Vegas, Atlanta and Chicago markets.
Maloney said lower sales at Bluegreen Communities were primarily attributable to a reduction in the number of communities in active sales.
"We are actively seeking to prudently address our inventory needs at Bluegreen Communities, remaining true to our standards of offering homesites in high-quality communities to our customers while maintaining strict economic expectations for our properties," he said. "However, it is important to note that communities are absorbed at varying rates, in some cases, over periods that can last as long as eight years. Therefore, inventory transition periods, combined with revenue recognition policies, can produce temporary swings in revenues and earnings."
Maloney said Bluegreen Communities has acquired a substantial new property near St. Simons Island and the Golden Isles of Georgia, to be called Little Satilla River Club at St. Andrews Sound.
The project is to be a follow on to the company's Sanctuary Cove at St. Andrews Sound community.
Sales at Little Satilla River Club are to start in the second quarter of 2007. Maloney targeted life-of-project sales at about $63 million over a four-year sellout.
Shares closed down 28 cents to $11.75. The 52-week high was $16.02 on March 3, 2006. The 52-week low was $10.84 on Sept. 11.
South Florida Business Journal - 4:20 PM EST Monday, March 5, 2007
Print this Article Email this Article Reprints RSS Feeds Most Viewed Most Emailed
Fourth quarter sales at Bluegreen Corp. rose 5.5 percent, but profit declined 74 percent.
The Boca Raton-based resorts and communities company said it earned $1.8 million, or 6 cents a share, on sales of $126.9 million for the period. For the fourth quarter the year before, Bluegreen (NYSE: BXG) said it earned of $6.9 million, or 22 cents a share, on sales of $120.3 million.
Bluegreen Resorts sales increased 27.2 percent, to $103.3 million from $81.2 million, as Bluegreen Communities sales declined to $23.6 million from $39.1 million.
A major contributor to the profit decline was about $8.2 million in pre-tax expenses - worth about $5.4 million, or 17 cents a share, after taxes. The expenses consisted of $3.5 million related to the need to repair a lake amenity at a nearly sold-out Bluegreen community, $3.2 million related to a consulting agreement entered into with Bluegreen's former president and chief executive officer, a $1.1 million write-off related to the abandonment of a software development project and $340,000 in additional professional fees related to adoption of a shareholder rights plan and related litigation.
For the year, Bluegreen said it earned $29.8 million, or 96 cents a share, on sales of $563.1 million. The year before, the company said it earned $46.6 million, or $1.49 a share, on sales of $550.3 million.
Sales at Bluegreen Resorts rose 11.4 percent, to $399.1 million from $358.2 million. Sales at Bluegreen Communities declined to $164 million from $192.1 million.
In addition to the fourth quarter expenses, year-end profit also took expenses in the form of a $1.8 million pre-tax charge incurred in the third quarter for the shareholder rights plan and related litigation and a $4.5 million charge for the adoption new accounting standards.
John M. Maloney Jr., Bluegreen president and chief executive officer, said higher Resorts sales were primarily attributable to same-resort sales growth led by sales offices at The Fountains resort in Orlando; The Falls Village resort in Branson, Mo.; MountainLoft in Gatlinburg, Tenn.; and the Bluegreen Wilderness Club at Big Cedar in Ridgedale, Mo., as well as new sales offices in Myrtle Beach, S.C., and the Las Vegas, Atlanta and Chicago markets.
Maloney said lower sales at Bluegreen Communities were primarily attributable to a reduction in the number of communities in active sales.
"We are actively seeking to prudently address our inventory needs at Bluegreen Communities, remaining true to our standards of offering homesites in high-quality communities to our customers while maintaining strict economic expectations for our properties," he said. "However, it is important to note that communities are absorbed at varying rates, in some cases, over periods that can last as long as eight years. Therefore, inventory transition periods, combined with revenue recognition policies, can produce temporary swings in revenues and earnings."
Maloney said Bluegreen Communities has acquired a substantial new property near St. Simons Island and the Golden Isles of Georgia, to be called Little Satilla River Club at St. Andrews Sound.
The project is to be a follow on to the company's Sanctuary Cove at St. Andrews Sound community.
Sales at Little Satilla River Club are to start in the second quarter of 2007. Maloney targeted life-of-project sales at about $63 million over a four-year sellout.
Shares closed down 28 cents to $11.75. The 52-week high was $16.02 on March 3, 2006. The 52-week low was $10.84 on Sept. 11.