Press Release: Bluegreen Corporation
February 6, 2002
BOCA RATON, FL -- Bluegreen Corporation (NYSE: BXG), a leading U.S. developer and marketer of drive-to timeshare
resorts, golf communities and residential land, yesterday announced financial results for the third quarter of
fiscal 2002 (see attached tables).
The third quarter of fiscal 2002 is Bluegreen's third consecutive quarter of profitability and the fourth consecutive
quarter in which the Company's results were an improvement over those reported in the same quarter of the prior
fiscal year.
Bluegreen reported a more than $3.3 million increase in net income for the third quarter of fiscal 2002 to $2.0
million, or $.08 per diluted share, as compared to a net loss of $1.4 million, or $.06 per share, for the third
quarter of fiscal 2001. Net income for the first nine months of fiscal 2002 rose 193% to $10.7 million, or $.41
per share, compared to net income of $3.7 million, or $.15 per share, for the same period one year ago.
Timeshare sales for the third quarter rose 13% to $32.3 million from $28.6 million for the third quarter last year,
due primarily to increased sales at the Big Cedar Wilderness Club timeshare project, which opened for sales in
December 2000 and is operated by a 51% owned subsidiary of the Company. Also, same-resort sales showed marked improvement
over the prior year quarter. Timeshare sales for the fiscal 2002 year-to-date increased 2.4% to $110.8 million
from $108.3 million for the first nine months of fiscal 2001.
Land (lot) sales for the third quarter of fiscal 2002 increased 36% to $23 million from $16.9 million for the same
period last year. Higher sales were due primarily to the growth of the Company's golf course communities, highlighted
by continued strong sales at the Preserve at Jordan Lake, which is located near Raleigh-Durham, NC. Land (lot)
sales for the first nine months of fiscal 2002 rose 12% to $73.9 million from $66 million for the same period one
year ago.
George F. Donovan, President and Chief Executive Officer of Bluegreen, commented, ``We believe our improved third
quarter financial results reflect growing consumer acceptance of 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. Our land and golf offerings also enjoyed strong sales, as a growing baby boomer
population seeks out quality, larger properties on which to build the retirement home of their dreams. Sales at
our land and golf division also benefited from lower interest and mortgage rates.
``We are very excited about the prospects at our Big Cedar Wilderness Club timeshare project, which is located
adjacent to Big Cedar Lodge in Ridgedale, MO, just outside of Branson, MO. Initial sales have exceeded our expectations.
We recently opened our state-of the-art, 17,000 square foot, three-story sales center at Big Cedar. What makes
this concept most intriguing is that, unlike traditional vacation ownership projects, Big Cedar Wilderness Club
has eliminated the need for a lengthy tour by providing information to prospective purchasers in advance of the
tour through a combination of telesales, direct mail and innovative telemarketing. This use of permission marketing
is a key concept in Bluegreen's sales efforts.''
Mr. Donovan also commented on the continued development of exciting marketing opportunities for Bluegreen through
its exclusive, ten-year marketing agreement with Bass Pro Shops, Inc., which expires in June 2010. ``Bluegreen
has opened manned sales outlets in more than half of Bass Pro Shops' extraordinary retail stores to sell three-day,
two-night mini-vacation packages; we expect to have a presence in most of Bass Pro Shops' locations by the end
of fiscal 2002. These value-priced packages require the buyer to experience either a Bluegreen Vacation Club or
Big Cedar Wilderness Club timeshare sales presentation. Through this agreement, we hope to engender the same type
of brand and customer loyalty for our timeshare products that has made Bass Pro Shops such a successful and enduring
enterprise.''
Mr. Donovan also noted the continued favorable effects of the Company's previously announced strategic business
plan on financial results for the third quarter of fiscal 2002 and year-to-date. Bluegreen first reported this
plan in the third quarter of fiscal 2001 and has, since that time, implemented several steps designed to improve
operating efficiencies, enhance profitability and maximize return on assets. In addition to higher sales of its
timeshare, land and golf properties, Mr. Donovan highlighted lower total selling, general and administrative expenses
as a percentage of sales during the third quarter. Moreover, Bluegreen continued to secure innovative and attractive
financing to assist in the growth of its business. In August 2001, the Company signed a 364-day, $75 million revolving
timeshare receivables purchase facility with Credit Suisse First Boston and, in December 2001, established a $12.5
million revolving unsecured line of credit with First Union National Bank that expires on December 31, 2002.
Mr. Donovan concluded by discussing Bluegreen's financial position, highlighted by a book value at December 30,
2001 of $6.12 per share and a debt-to-equity ratio of approximately 1.41:1
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 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 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 referred to in this release will not be successfully implemented, the Big Cedar Wilderness Club may not be
profitable, 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-Q to be filed on or about February 13, 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)
(Unaudited)
Three Months Ended Nine Months Ended
------------------- --------------------
Dec. 30, Dec. 31, Dec. 30, Dec. 31,
2001 2000 2001 2000
-------- -------- --------- ---------
REVENUES:
Timeshare sales $ 32,272 $ 28,558 $ 110,846 $ 108,276
Lot sales 23,013 16,927 73,857 65,973
-------- -------- --------- ---------
Total sales 55,285 45,485 184,703 174,249
Other resort and
golf operations revenue 5,607 5,522 19,184 19,351
Interest income 3,776 3,959 11,855 13,534
Gain on sale
of notes receivable 2,185 2,266 4,214 2,266
Other income - 14 - 136
-------- -------- --------- ---------
Total operating revenues 66,853 57,246 219,956 209,536
-------- -------- --------- ---------
EXPENSES:
Cost of sales:
Timeshare cost of sales 7,638 6,197 25,726 23,485
Lot cost of sales 12,346 9,853 38,407 35,344
-------- -------- --------- ---------
Total cost of sales 19,984 16,050 64,133 58,829
Cost of other resort
and golf operations 5,949 6,280 17,844 19,494
Selling, general and
administrative expense 33,939 32,412 106,345 111,739
Interest expense 3,032 4,000 10,129 11,265
Provision for loan losses 788 900 3,683 3,391
Other expense 83 - 277 -
-------- -------- --------- ---------
Total operating expenses 63,775 59,642 202,411 204,718
-------- -------- --------- ---------
Income (loss) before taxes 3,078 (2,396) 17,545 4,818
Provision (benefit)
for income taxes 1,185 (922) 6,755 1,855
Minority interest in
income (loss) of
consolidated subsidiary (79) (113) 107 (689)
-------- -------- --------- ---------
Net income (loss) $ 1,972 $ (1,361) $ 10,683 $ 3,652
======== ======== ========= =========
Net income
(loss) per share:
Basic $ 0.08 $ (0.06) $ 0.44 $ 0.15
======== ======== ========= =========
Diluted $ 0.08 $ (0.06) $ 0.41 $ 0.15
======== ======== ========= =========
Weighted average number
of common and common
equivalent shares:
Basic 24,297 24,193 24,240 24,259
======== ======== ========= =========
Diluted 25,838 24,193 29,968 25,872
======== ======== ========= =========
BLUEGREEN CORPORATION
Condensed Consolidated Balance Sheets
(in 000's)
Dec. 30, April 1,
2001 2001
--------- ---------
(Unaudited)
ASSETS
Cash and cash equivalents $ 38,477 $ 40,016
Contracts receivable, net 11,826 18,507
Notes receivable, net 72,222 74,796
Inventory, net 194,025 193,634
Retained interests in notes receivable sold 34,248 19,898
Property and equipment, net 48,242 41,462
Other assets 33,648 31,368
--------- ---------
Total assets $ 432,688 $ 419,681
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Accounts payable, accrued liabilities and other $ 40,044 $ 37,416
Deferred income 4,627 5,314
Deferred income taxes 26,680 19,329
Lines-of-credit and notes payable 59,393 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 281,115 280,050
Minority interest 2,948 2,841
Total shareholders' equity 148,625 136,790
--------- ---------
Total liabilities and shareholders' equity $ 432,688 $ 419,681
========= =========
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Contact:
Bluegreen Corporation
John Chiste, 561/912-8010
john.chiste@bxgcorp.com
or
The Equity Group Inc.
Devin Sullivan, 212/836-9608
www.theequitygroup.com