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Press Release: BFC Financial Corporation
May 16, 2006
FORT LAUDERDALE, FL -- BFC Financial Corporation (NASDAQ: BFCF; "BFC" or "the Company"), a
diversified holding company that invests in and acquires operating businesses in a variety of industries, May 12
announced financial results for the first quarter 2006. Since BFC is a holding company and has only limited operations,
BFC's earnings primarily reflect the earnings of the operating companies in which it has its principal investments.
For the quarter ended March 31, 2006, BFC's net loss available to common shareholders was $453,000, compared with
net income available to common shareholders of $4.2 million earned in the corresponding quarter in 2005. The diluted
loss per share was $0.01 in the first quarter of 2006, compared to diluted earnings per share of $0.14 in the corresponding
quarter in 2005.
While BFC experienced a loss for the first quarter of 2006, as previously discussed, the current reduction in earnings
is primarily the result of strategic long-term initiatives being pursued at BankAtlantic Bancorp and Levitt Corporation.
Each of these companies, which represent BFC's primary holdings, made strategic decisions which they believe position
each company for future growth and improved profitability. While these decisions negatively impacted earnings at
these companies in the short term, BFC, as a long-term investor, supports its portfolio companies' decisions to
build their respective businesses with a long-term perspective with a view to achieving sustainable and prudent
future earnings growth. During the quarter, these two companies announced several positive developments including:
* BankAtlantic's 'Florida's Most Convenient Bank' initiative continued to produce strong growth in new customers,
having opened in the quarter a record 77,000 new low cost deposit accounts, an increase of 37% over the corresponding
2005 quarter. The 'net new' low cost deposit balances (net balance growth in both new and 'legacy' accounts) increased
79% to a record $205 million vs. $115 million in the comparable 2005 period.
* BankAtlantic Bancorp and its wholly-owned subsidiary, Ryan Beck Holdings, Inc. announced that they are pursuing
a financial transaction with a view toward monetizing a portion of BankAtlantic Bancorp's investment in that company.
* BankAtlantic resolved the regulatory inquiry regarding certain past deficiencies in the bank's compliance with
the Bank Secrecy Act and anti-money laundering laws by, among other things, agreeing to pay a $10 million fine,
the amount previously disclosed and provided for in the fourth quarter of 2005, and entered into agreements with
its regulators. BankAtlantic does not believe this will have any adverse effect on its ongoing operations and growth,
including branching and acquisitions, provided that BankAtlantic remains in full compliance with the terms of the
agreements.
* Levitt Corporation expanded its homebuilding efforts into South Carolina by opening an active adult resort lifestyle
community called "Seasons" at Prince Creek West, a community situated on 213 acres that is expected to
include 460 single-family detached homes.
* Bluegreen Corporation, 31% of which is owned by Levitt Corporation, sold 7,681 Vacation Ownership Interests ("VOIs")
during the three months ended March 31, 2006, which was 14.8% higher than the first quarter of 2005, at an average
sales price per transaction of $10,664. During the comparable 2005 period, Bluegreen sold 6,689 VOIs at an average
sales price per transaction of $10,124.
We have also been pleased with BFC's investment in Benihana, Inc., the renowned Asian-themed restaurant chain.
* Benihana continues to grow its Japanese-themed restaurant concepts, having opened new RA Sushi restaurants in
Houston, TX and Palm Beach Gardens, FL, a new Benihana restaurant in Tucson, AZ, and announced plans to open a
Benihana restaurant in Maple Grove, MN and a new Haru restaurant in downtown New York City.
* BFC's purchases in 2004 and 2005 of an aggregate of 800,000 shares of Benihana Convertible Preferred Stock represents
an investment by BFC of $20 million which, based on NASDAQ closing stock price as of March 31, 2006 was convertible
into $32.3 million of Benihana Common Stock. The underlying closing price of the common stock will of course fluctuate
from time to time. Our holdings in Benihana upon conversion would represent approximately 23% of Benihana's voting
common stock and 10% of Benihana's outstanding equity interest.
Segment Income
The following table shows net income (loss) for each segment and earnings (loss) per share including the items
discussed above for the three ended March 30, 2006 and 2005 (in thousands, except per share data):
Three Months Ended
2006 2005
BFC Activities $(1,614) $4,822
Financial Services 6,712 19,878
Homebuilding & real estate development (660) 29,818
Income before noncontrolling interest and
discontinued operations 4,438 44,874
Noncontrolling interest 4,703 40,366
Income (loss) from continuing operations (265) 4,508
Discontinued operations -- (108)
Net income (loss) (265) 4,400
5% Preferred Stock dividends 188 188
Net income (loss) available to common
shareholders $(453) $4,212
Basic earnings (loss) per share from
continuing operations $(0.01) $0.16
Basic earnings (loss) per share from
discontinued operations $-- $--
Basic earnings (loss) per share $(0.01) $0.16
Diluted earnings (loss) per share
from continuing operations $(0.01) $0.14
Diluted earnings (loss) per share
from discontinued operations $-- $--
Diluted earnings (loss) per share $(0.01) $0.14
Basic weighted average number of
common shares outstanding 32,692 25,750
Diluted weighted average number of
common and common equivalent shares
outstanding 32,692 28,336
* The "BFC Activities" segment includes BFC's real estate owned, loans receivable that relate to previously
owned properties, its investment in Benihana Convertible Preferred Stock and other securities and investments,
including the operations of its wholly-owned subsidiary Cypress Creek Capital, BFC's overhead and interest expense
and the financial results of a venture partnership which BFC controls. Since BFC is a holding company whose principal
activities consist of managing investments and seeking and evaluating potential new investments, BFC itself has
no significant direct revenue or cash-generating operations. Accordingly, the "BFC Activities" segment
will normally reflect a loss as the current amount of dividends, interest and fees from investments do not currently
cover BFC parent company operating costs.
* The "Financial Services" segment includes BankAtlantic Bancorp and its subsidiaries, BankAtlantic and
Ryan Beck Holdings, Inc.
* The "Homebuilding & Real Estate Development" segment includes Levitt Corporation and its subsidiaries,
Levitt and Sons(TM) and Core Communities, and Levitt's investment in Bluegreen.
* "Noncontrolling Interest" is an accounting term for that portion of a consolidated entity that is owned
by others. Both BankAtlantic Bancorp and Levitt Corporation are consolidated in BFC's financial statements because
of BFC's voting control ownership position in each of those companies, even though BFC's equity ownership is less
than a majority in each entity. At March 31, 2006, BFC owned 21.5% of the economic interest and held 54.8% of the
voting control of BankAtlantic Bancorp and 16.6% of the economic interest and 52.9% of the voting control of Levitt
Corporation.
Shareholders' Equity or Book Value
Shareholders' equity or book value decreased from $183 million as of December 30, 2005 to $178 million as of March
31, 2006. This decrease was primarily due to the retirement of Common Stock relating to the exercise of stock options,
the net loss for the quarter and the effects of subsidiaries' capital transactions, which was partially offset
by the issuance of common stock upon the exercise of stock options and the tax effect of the exercise of stock
options.
Market Value of BankAtlantic Bancorp and Levitt Corporation
Our holdings include 13.2 million shares of common stock, or 21.5%, of BankAtlantic Bancorp and 3.3 million shares
of common stock, or 16.6%, of Levitt Corporation. The market value of our holdings in these two companies, based
upon NYSE closing prices, which will fluctuate from time to time, was $262 million at March 31, 2006. BFC also
owns 800,000 shares of Convertible Preferred Stock in Benihana, Inc., which is convertible into approximately 1.1
million shares of Common Stock. This investment represents approximately 10.0% of Benihana's economic ownership
and 23% of the voting rights of Benihana. Based on the closing price of Benihana, BFC's investment was worth $32.3
million as of March 31, 2006.
Other
Our quarterly report on Form 10-Q for the quarter ended March 31, 2006 contains additional information and was
filed with the Securities and Exchange Commission on May 10, 2006. The Form 10-Q for the quarter ended March 31,
2006 is posted on BFC's website, which can be accessed via http://www.BFCFinancial.com .
About BFC Financial Corporation:
BFC Financial Corporation (NASDAQ: BFCF) is a diversified holding company that invests in and acquires private
and public companies in different industries. BFC is typically a long-term, "buy and hold" investor whose
direct and indirect, diverse ownership interests span a variety of business sectors, including consumer and commercial
banking; brokerage and investment banking services; homebuilding; development of master-planned communities; the
hospitality and leisure sector through the development, marketing and sales of vacation resorts on a time-share,
vacation club model; and the restaurant and family dining business. BFC's current major holdings include BankAtlantic
Bancorp and its subsidiaries, BankAtlantic and Ryan Beck Holdings Inc.; Levitt Corporation, which includes its
subsidiaries Levitt and Sons(TM) and Core Communities; Levitt Corporation's 31% ownership in Bluegreen Corporation,
as well as a noncontrolling interest in the renowned national restaurant chain, Benihana, Inc.
For further information, please visit our website at: http://www.BFCFinancial.com
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BFC Contact Info:
Investor and Corporate Communications:
Sharon Lyn, Vice President
Email: CorpComm@BFCFinancial.com
Investor Relations:
Leo Hinkley, Senior Vice President
Email: InvestorRelations@BFCFinancial.com
Mailing Address and Telephone:
BFC Financial Corporation
Attn: Investor Relations
2100 West Cypress Creek Road
Fort Lauderdale, FL 33309
Phone: (954) 940-4994
Fax: (954) 940-5320
Matters discussed in this press release may contain forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Actual results, performance or achievements could differ materially from
those contemplated, expressed or implied by the forward-looking statements contained herein. Past performance is
no indication of current or future results. These forward-looking statements are based largely on the expectations
of BFC and are subject to a number of risks and uncertainties that are subject to change based on factors which
are, in many instances, beyond the Company's control including the risks and uncertainties with respect to its
current investments and any future investments, that appropriate investment opportunities on reasonable terms and
at reasonable prices will not be available, that sufficient resources may not be available to make desired investments
or acquisitions, that the expansion, strategic plans and initiatives pursued by its portfolio companies may not
be successful, and those disclosed in the Company's filings with the Securities and Exchange Commission. Moreover,
this press release contains only summary and partial financial data for the periods in question. More complete
information is contained in our 2005 Annual Report on Form 10-K and our quarterly report on Form 10-Q filed with
the Securities and Exchange Commission and available on BFC's website at http://www.BFCFinancial.com. Additional
information relating to our publicly-traded portfolio companies, including the risks and uncertainties relating
to their respective businesses, is contained in reports filed by those companies with the Securities and Exchange
Commission at http://www.sec.gov .
Source: BFC Financial Corporation