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Bluegreen Corporation Reports 2007 Third Quarter Results
Monday November 5, 4:49 pm ET
Third Quarter 2007 Highlights
-- Bluegreen Resorts Sales Rose 14.4% to Third Quarter Record $149.1 Million
-- Bluegreen Communities Generates $4.5 Million of Field Operating Profit
-- Net Income of $14.0 Million, or $0.45 Per Diluted Share
-- Book Value of $12.04 Per Share
BOCA RATON, Fla.--(BUSINESS WIRE)--Bluegreen Corporation (NYSE: BXG - News), a leading provider of Colorful Places to Live and Play®, today announced financial results for the three and nine months ended September 30, 2007 (see attached tables).
Total sales in the third quarter of 2007 rose to $180.9 million from $172.5 million in the same period last year, due primarily to record vacation ownership (“Resorts”) sales, partially offset by lower homesite (“Bluegreen Communities”) sales. Bluegreen Resorts and Bluegreen Communities yielded Field Operating Profit (1) of $29.7 million and $4.5 million, respectively, during the third quarter of 2007 (see tables entitled “Supplemental Segment Financial Data”). Net income in the third quarter of 2007 was $14.0 million, or $0.45 per diluted share, as compared to net income of $21.9 million, or $0.71 per diluted share, in the same period last year.
BLUEGREEN RESORTS
Bluegreen Resorts sales increased 14.4% to a third quarter record $149.1 million from $130.3 million in the third quarter of 2006. Higher Resorts sales were primarily attributable to a significant increase in sales to existing Bluegreen Vacation Club® owners from the third quarter of 2006; these sales comprised 42% of Resorts sales for the third quarter of 2007 as compared to 34% of Resorts sales during the comparable prior year period.
Same-resort sales increased, led by sales offices at the Smoky Mountain Preview Center in Sevierville, Tenn., The Falls Village™ resort in Branson, Mo., MountainLoft™ in Gatlinburg, Tenn., and an offsite sales office in Las Vegas. Higher sales were also attributable, to a lesser extent, to the opening of new sales offices at SeaGlass Tower, located in Myrtle Beach, S.C., and at a new resort under development in Williamsburg, Va., as well as a system-wide price increase that went into effect during March 2007.
Results for the third quarter of 2007 also included a gain on sale of notes receivable totaling $19.9 million, which is required by generally accepted accounting principles to be reflected as a $24.2 million increase in Resorts sales with an offsetting $4.4 million contra-revenue amount in sales of notes receivable. This compares to a $21.6 million gain on sales of notes receivable in the third quarter of 2006, reflected as an $18.1 million increase in Resorts sales and $3.5 million of revenue in sales of notes receivable.
In accordance with Statement of Financial Accounting Standards No. 152, "Accounting for Real Estate Time-sharing Transactions" ("SFAS 152"), as of September 30, 2007 approximately $32.9 million and $18.5 million of Resorts sales and profits, respectively, were deferred under SFAS 152 as these contracted sales had not yet met the requirements for revenue recognition. These amounts compare to $37.8 million and $21.0 million of Resorts sales and profits, respectively, which were deferred as of June 30, 2007. Deferred amounts are expected to be recognized in future periods. In addition, SFAS 152 requires that Resorts sales be reduced by estimated uncollectible timeshare notes receivable, which were estimated to be $19.5 million for the third quarter of 2007 and $18.1 million for the third quarter of 2006.
Resorts cost of sales in the third quarter of 2007 was 25.8% as compared to 19.8% in the third quarter of 2006, the result of a higher percentage of Resort sales in relatively higher cost properties. Resorts cost of sales as a percentage of sales for the fourth quarter of 2007 are expected to range between 23% and 26%.
John M. Maloney Jr., President and Chief Executive Officer of Bluegreen, commented, “Bluegreen Resorts offers owners access to a multitude of vacation destinations at a price that fits their budget and with a flexibility that conforms to their individual lifestyle. We believe that Bluegreen’s growing brand recognition, the geographic diversity of our properties, and unwavering commitment to customer service have combined to produce another quarter of record Resorts results. We are continuing to make investments to expand our destination portfolio and are pleased to report that construction is progressing at our newest Resorts in Las Vegas and Williamsburg, both of which are expected to begin accepting guests during 2008.”
Mr. Maloney also noted that Bluegreen consummated two significant financial transactions during the third quarter of 2007. In August 2007, the Company renewed and expanded an existing unsecured revolving line of credit with Wachovia Bank, N.A. In September 2007, Bluegreen completed a private offering and sale of $177.0 million of timeshare loan-backed securities.
Monday November 5, 4:49 pm ET
Third Quarter 2007 Highlights
-- Bluegreen Resorts Sales Rose 14.4% to Third Quarter Record $149.1 Million
-- Bluegreen Communities Generates $4.5 Million of Field Operating Profit
-- Net Income of $14.0 Million, or $0.45 Per Diluted Share
-- Book Value of $12.04 Per Share
BOCA RATON, Fla.--(BUSINESS WIRE)--Bluegreen Corporation (NYSE: BXG - News), a leading provider of Colorful Places to Live and Play®, today announced financial results for the three and nine months ended September 30, 2007 (see attached tables).
Total sales in the third quarter of 2007 rose to $180.9 million from $172.5 million in the same period last year, due primarily to record vacation ownership (“Resorts”) sales, partially offset by lower homesite (“Bluegreen Communities”) sales. Bluegreen Resorts and Bluegreen Communities yielded Field Operating Profit (1) of $29.7 million and $4.5 million, respectively, during the third quarter of 2007 (see tables entitled “Supplemental Segment Financial Data”). Net income in the third quarter of 2007 was $14.0 million, or $0.45 per diluted share, as compared to net income of $21.9 million, or $0.71 per diluted share, in the same period last year.
BLUEGREEN RESORTS
Bluegreen Resorts sales increased 14.4% to a third quarter record $149.1 million from $130.3 million in the third quarter of 2006. Higher Resorts sales were primarily attributable to a significant increase in sales to existing Bluegreen Vacation Club® owners from the third quarter of 2006; these sales comprised 42% of Resorts sales for the third quarter of 2007 as compared to 34% of Resorts sales during the comparable prior year period.
Same-resort sales increased, led by sales offices at the Smoky Mountain Preview Center in Sevierville, Tenn., The Falls Village™ resort in Branson, Mo., MountainLoft™ in Gatlinburg, Tenn., and an offsite sales office in Las Vegas. Higher sales were also attributable, to a lesser extent, to the opening of new sales offices at SeaGlass Tower, located in Myrtle Beach, S.C., and at a new resort under development in Williamsburg, Va., as well as a system-wide price increase that went into effect during March 2007.
Results for the third quarter of 2007 also included a gain on sale of notes receivable totaling $19.9 million, which is required by generally accepted accounting principles to be reflected as a $24.2 million increase in Resorts sales with an offsetting $4.4 million contra-revenue amount in sales of notes receivable. This compares to a $21.6 million gain on sales of notes receivable in the third quarter of 2006, reflected as an $18.1 million increase in Resorts sales and $3.5 million of revenue in sales of notes receivable.
In accordance with Statement of Financial Accounting Standards No. 152, "Accounting for Real Estate Time-sharing Transactions" ("SFAS 152"), as of September 30, 2007 approximately $32.9 million and $18.5 million of Resorts sales and profits, respectively, were deferred under SFAS 152 as these contracted sales had not yet met the requirements for revenue recognition. These amounts compare to $37.8 million and $21.0 million of Resorts sales and profits, respectively, which were deferred as of June 30, 2007. Deferred amounts are expected to be recognized in future periods. In addition, SFAS 152 requires that Resorts sales be reduced by estimated uncollectible timeshare notes receivable, which were estimated to be $19.5 million for the third quarter of 2007 and $18.1 million for the third quarter of 2006.
Resorts cost of sales in the third quarter of 2007 was 25.8% as compared to 19.8% in the third quarter of 2006, the result of a higher percentage of Resort sales in relatively higher cost properties. Resorts cost of sales as a percentage of sales for the fourth quarter of 2007 are expected to range between 23% and 26%.
John M. Maloney Jr., President and Chief Executive Officer of Bluegreen, commented, “Bluegreen Resorts offers owners access to a multitude of vacation destinations at a price that fits their budget and with a flexibility that conforms to their individual lifestyle. We believe that Bluegreen’s growing brand recognition, the geographic diversity of our properties, and unwavering commitment to customer service have combined to produce another quarter of record Resorts results. We are continuing to make investments to expand our destination portfolio and are pleased to report that construction is progressing at our newest Resorts in Las Vegas and Williamsburg, both of which are expected to begin accepting guests during 2008.”
Mr. Maloney also noted that Bluegreen consummated two significant financial transactions during the third quarter of 2007. In August 2007, the Company renewed and expanded an existing unsecured revolving line of credit with Wachovia Bank, N.A. In September 2007, Bluegreen completed a private offering and sale of $177.0 million of timeshare loan-backed securities.
Most BG sale are from existing owners and existing resorts.
Jya-Ning