Press Release: Bluegreen Corporation
June 5, 2002
BOCA RATON, FL -- Bluegreen Corporation (NYSE:BXG)
FY 2002 Highlights vs. FY 2001
-- Net Income Rises 332% to $11.7 Million, or $.46 Per Share
-- S,G & A Expenses Decline to 48.7% From 53.6% of Total
Operating Revenues
-- Timeshare Sales Reach a Record $144.2 Million, Comprising 60%
of Total Sales
-- Homesite Sales Rise 8.4% to $96.4 Million
-- Book Value of $6.16 Per Share; Debt to Equity Ratio of 1.37:1
Bluegreen Corporation (NYSE: BXG), a leading U.S. developer and marketer of drive-to timeshare resorts, golf communities
and residential land homesites, yesterday announced financial results for the fourth quarter and fiscal year ended
March 31, 2002 (see attached tables).
George F. Donovan, President and Chief Executive Officer of Bluegreen®, commented, "Fiscal 2002 was a
very successful and satisfying year for Bluegreen. The success of our strategic business initiatives, the growing
consumer acceptance of our Bluegreen Vacation Club(TM) and high-quality residential land and golf communities,
as well as a growing base of owners, combined to produce record sales and a significant increase in profitability."
Net income for fiscal 2002 increased 332% to $11.7 million, or $.46 per share, compared to net income of $2.7 million,
or $.11 per share, last year. Bluegreen reported a $2.0 million improvement in net income for the fourth quarter
of fiscal 2002 to $1.0 million, or $.04 per share, versus a net loss of $935,000, or $.04 per share, for the same
period last year. The Company noted that the fourth quarter of fiscal 2002 was Bluegreen's fourth consecutive quarter
of profitability and the fifth consecutive quarter in which the Company's results improved over those reported
in the same quarter of the prior fiscal year.
Improvements in net income for both periods are due primarily to the positive effect of the Company's strategic
business plan, most notably in the efficiencies that the Company believes are being achieved as Bluegreen's customer
base reaches critical mass. Bluegreen's improved operating efficiencies are illustrated when considering that the
triple digit increase in net income for fiscal 2002 on just a 4.6% rise in total operating revenues. Selling, general
and administrative expense ("S,G & A") as a percentage of total operating revenues declined to 48.7%
in fiscal 2002 from 53.6% last year; S,G & A as a percentage of total operating revenues fell to 49.9% in the
fiscal 2002 fourth quarter from 54.6% in the fourth quarter of fiscal 2001.
Timeshare sales for fiscal 2002 increased to $144.2 million from $141.0 million last year, due primarily to increased
same-resort sales, as Bluegreen did not open any new sales offices during fiscal 2002. Timeshare sales in the fourth
quarter of fiscal 2002 increased to $33.4 million from $32.7 million for the same period one year ago.
Homesite sales in fiscal 2002 rose 8.4% to $96.4 million from $88.9 million last year. Higher sales were due primarily
to the demand for homesites at the Company's golf course communities, highlighted by continued strong sales at
the Preserve at Jordan Lake, which is located near Raleigh-Durham, NC, and continued success in the Texas market.
Sales also benefited from lower interest and mortgage rates. Homesite sales for the fourth quarter of fiscal 2002
held steady at $22.5 million versus $22.9 million for the same period last year.
Mr. Donovan continued, "We believe consumers are increasingly becoming aware of and accepting Bluegreen's
high-quality, amenity-rich, drive-to (excluding Aruba) timeshare resort properties, which are located in close
proximity to some of the nation's most popular vacation destinations. We also believe that the location of our
resorts helped to reduce the economic impact of the September 11th attacks that so dramatically affected the travel
industry. During fiscal 2002, we expanded our timeshare product offerings through the purchase of the Solara Surfside,
a luxury beachfront resort located within easy reach of Miami Beach and the upscale Bal Harbor area. The approximately
3,000 intervals at the resort are configured to include one-bedroom and two-bedroom oceanfront units. We also opened
our state-of the-art, 17,000 square foot, three-story sales center at Big Cedar, which is designed to extend the
wilderness theme of Big Cedar Wilderness Club, and launched a variety of new and exciting marketing programs. We
are very pleased with the progress made during fiscal 2002 with our exclusive, ten-year marketing agreement with
Bass Pro Shops, Inc., which continues through June 2010. We have opened staffed sales outlets in 9 of Bass Pro
Shops' retail stores to sell three-day, two-night mini-vacation packages. We believe that these packages are an
important sales tool for Bluegreen, as they provide us with the opportunity to cultivate qualified sales prospects
into potential new timeshare owners. This cultivation is made easier by the fact that, through their purchase of
a Bluegreen vacation package, these individuals are already familiar with the Bluegreen brand.
"Subsequent to our fiscal 2002 year end, and as previously announced, we were advised that Levitt Companies,
LLC, a subsidiary of BankAtlantic Bancorp, Inc. (NYSE: BBX), acquired an aggregate of approximately 8 million shares
of Bluegreen's outstanding common stock from affiliates of Morgan Stanley Dean Witter & Co., Inc., and Grace
Brothers, Ltd. in private transactions. As a result of these purchases, combined with prior holdings in the Company,
Levitt now owns approximately 40% of Bluegreen's outstanding common stock. We also welcomed Levitt Companies' Chairman
Alan B. Levan, and President John E. Abdo, to Bluegreen's Board of Directors. Bluegreen also executed an agreement
with ING Capital LLC, under which ING assumed a revolving timeshare receivables purchase facility that Bluegreen
had originally entered into in June 2001 with another institution. ING expanded the facility to $125 million (from
$75 million) and extended the term through April 2003."
Bluegreen is one of the leading companies engaged in the acquisition, development, marketing and sale of timeshare
resorts, golf communities and residential land. The Company's timeshare resorts are located in a variety of popular
vacation destinations including Orlando, Florida; the Smoky Mountains of Tennessee; Myrtle Beach, South Carolina;
Charleston, South Carolina; Branson, Missouri; Wisconsin Dells, Wisconsin; Gordonsville, Virginia; Ridgedale, Missouri;
Surfside, Florida; and Aruba, while its land operations are predominantly located in the Southeastern and Southwestern
United States.
This press release contains forward-looking statements and the Company desires to take advantage of the "safe
harbor" provisions of the Private Securities Litigation Reform Act of 1995 in connection with these statements.
Statements made by George Donovan and any other statements contained herein that 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, industry trends and actual results 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 include, but are not limited to, actual results for future periods may differ from those estimated,
consumer demand and acceptance of the Company's products may be less than anticipated, regulatory changes, changes
in national or regional economic conditions, including interest rates, that can affect the real estate market,
risks associated with a large investment in real estate, shortages of available inventory, the risk that the Company
will not be able to continue to increase its customer base and/or achieve efficiencies, borrow under credit facilities,
sell receivables under the timeshare receivables purchase facility referred to in this release or have sufficient
outstanding sources of financing to satisfy its needs, the strategic business plan and initiatives referred to
in this release will not be successfully implemented, the Big Cedar project and the Company's relationship with
Bass Pro Shops may not be profitable, the economic and other impact of September 11th and other national and world
events may have an adverse impact on the Company, and other risks detailed from time to time in the Company's filings
with the Securities and Exchange Commission, including its most recent annual report on Form 10-K, its most recent
quarterly report on Form 10-Q and the Form 10-K to be filed on or about June 28, 2002. Given these risks and uncertainties,
investors are cautioned not to place undue reliance on such forward-looking statements and no assurances can be
given that such statements will be achieved.
BLUEGREEN CORPORATION
Consolidated Statements of Operations
(In 000's, Except Per Share Data)
Three Months Ended Year Ended
------------------ ----------
March 31, April 1, March 31, April 1
2002 2001 2002 2001
---- ---- ---- ----
Unaudited Unaudited
REVENUES:
Timeshare sales $33,380 $32,699 $144,226 $140,975
Homesite sales 22,545 22,926 96,402 88,899
------- ------- -------- --------
Total sales 55,925 55,625 240,628 229,874
Other resort and golf
operations revenue 6,286 5,299 25,470 24,649
Interest income 3,592 3,783 15,447 17,317
Gain on sale of notes
receivable 2,066 1,015 6,280 3,281
Other income 115 - - -
------- ------- -------- -----
Total operating revenues 67,984 65,722 287,825 275,121
------- ------- -------- --------
EXPENSES:
Cost of sales:
Timeshare cost of
sales 7,862 7,564 33,588 31,049
Homesite cost of
sales 14,530 12,402 52,937 47,746
------- ------- -------- --------
Total cost of sales 22,392 19,966 86,525 78,795
Cost of other resort
and golf operations 5,700 5,457 23,599 24,951
Selling, general and
administrative expense 33,899 35,854 140,189 147,592
Interest expense 2,888 4,228 13,017 15,494
Provision for loan
losses 1,168 1,496 4,851 4,887
Other expense - 536 162 400
------- ------- -------- --------
Total operating expenses 66,047 67,537 268,343 272,119
------- ------- -------- --------
Income (loss) before
taxes 1,937 (1,815) 19,482 3,002
Provision (benefit)
for income taxes 746 (698) 7,501 1,156
Minority interest income
(loss) of consolidated
subsidiary 142 (182) 249 (871)
------- ------- -------- ---------
Net income (loss) $ 1,049 $ (935) $ 11,732 $ 2,717
======= ======== ======== ========
Net income (loss) per
share:
Basic: $ 0.04 $(0.04) $ 0.48 $ 0.11
====== ====== ======== ========
Diluted: $ 0.04 $(0.04) $ 0.46 $ 0.11
====== ====== ======== ========
Weighted average number
of common and common
equivalent shares:
Basic 24,304 24,190 24,256 24,242
======= ======= ======== ========
Diluted 24,407 24,190 29,993 24,316
======= ======= ======== ========
BLUEGREEN CORPORATION
Condensed Consolidated Balance Sheets
(in 000's)
March 31, April 1,
2002 2001
---- ----
ASSETS
Cash and cash equivalents $ 48,715 $ 40,016
Contracts receivable, net 21,818 18,507
Notes receivable, net 55,648 74,796
Inventory, net 187,688 193,634
Retained interests in notes
receivable sold 38,560 19,898
Property and equipment, net 49,338 41,462
Other assets 33,394 31,368
-------------- --------------
Total assets $ 435,161 $ 419,681
============== ==============
LIABILITIES AND SHAREHOLDERS'
EQUITY
Liabilities
Accounts payable, accrued
liabilities and other $ 44,703 $ 37,416
Deferred income 5,043 5,314
Deferred income taxes 27,408 19,329
Lines-of-credit and notes payable 54,890 67,620
10.50% senior secured notes
payable 110,000 110,000
8.00% convertible subordinated
notes payable 6,000 6,000
8.25% convertible subordinated
debentures 34,371 34,371
-------------- --------------
Total liabilities 282,415 280,050
Minority interest 3,090 2,841
Total shareholders' equity 149,656 136,790
-------------- --------------
Total liabilities and
shareholders' equity $ 435,161 $ 419,681
============== ==============
--------------------------------------------
Contact:
Bluegreen Corporation
John Chiste, 561/912-8010
john.chiste@bxgcorp.com
or
INVESTOR RELATIONS COUNSEL:
The Equity Group Inc.
Devin Sullivan, 212/836-9608
www.theequitygroup.com