Press Release
November 3, 2000
BOCA RATON, FL -- Bluegreen Corporation (NYSE: BXG), a leading U.S. developer and marketer of timeshare resorts,
golf communities and residential land, yesterday announced financial results for the second quarter of fiscal 2001
(see attached table) highlighted by the highest quarterly timeshare sales in Bluegreen's history.
Timeshare sales for the fiscal 2001 second quarter reached an all-time quarterly record $43.6 million, a 21.4%
increase from the same period one year ago, and represented 67.3% of total sales as compared to 54.7% for the same
period last year. Timeshare sales for the first six months of fiscal 2001 rose 14.3% to a record $78.0 million
from $68.2 million for the first half of fiscal 2000. Timeshare sales for the first six months of fiscal 2001 accounted
for 61.4% of the Company's total sales as compared to 53.1% for the first six months of fiscal 2000. Higher timeshare
sales for the three and six month periods of fiscal 2001 were due to the continued success of the points-based
Bluegreen Vacation Club, overall price increases and the contribution of the Company's offsite sales offices.
Lot sales for the fiscal 2001 second quarter were $21.2 million versus $29.7 million for the same period last year.
For the first half of fiscal 2001, lot sales were $49.0 million as compared to $60.2 million for the first half
of fiscal 2000. Lower lot sales reflected, in part, the one-time, bulk sale of land and mineral rights in Colorado
by the Residential Land and Golf Division during the fiscal 2000 second quarter (``the rights sale''), which contributed
approximately $5.0 million of total revenue for the three and six month periods ended October 3, 1999. The first
half of fiscal 2000 also included an additional week of operations that generated an additional $4.6 million of
lot sales.
Excluding the impact of the rights sale, lot sales for the fiscal 2000 second quarter would have been $24.7 million;
excluding the impact of the rights sale and the additional week of operations, lot sales for the first half of
fiscal 2000 would have been $50.6 million. Lower lot sales for the fiscal 2001 three and six month periods were
also due to decreased sales in the Company's Arizona and North Carolina regions as projects in these areas were
approaching sell-out.
Record Total Operating Revenues; Profitable Operations
Record timeshare sales and substantial increases in interest income and other resort and golf operations revenue
contributed to record total operating revenues for the fiscal 2001 three and six month periods. Total operating
revenues for the second quarter of fiscal 2001 reached a record $77.9 million from $76.5 million for the same period
last year. For the first six months of the new fiscal year, total operating revenues were $152.5 million, up from
$148.5 million for the comparable period of the prior year.
Net income for the fiscal 2001 second quarter was $2.0 million, or $.08 per share, compared to net income of $5.9
million, or $.22 per share, last year. Net income for the first six months of fiscal 2001 was $5.0 million, or
$.20 per share, versus net income of $10.3 million, or $.38 per share, for the comparable prior year period. Management
noted several factors when comparing the Company's net income for the three and six month periods of fiscal 2001
and fiscal 2000:
The rights sale contributed approximately $2.6 million of net income during the fiscal 2000 second quarter and
six-month periods. The Company also realized an $884,000 gain on notes receivable during the fiscal 2000 second
quarter; Bluegreen realized no such gain in the fiscal 2001 second quarter due to the fact that its new timeshare
receivables purchase facility was not finalized until the third quarter of fiscal 2001. Excluding the effect of
the rights sale and the gain on notes receivable, net income for the fiscal 2000 second quarter would have been
$2.7 million, or $.11 per share.
After excluding the effect of the rights sale and the gain on sale of notes receivable, as well as the additional
week of operations included in the fiscal 2000 six month period, net income would have been $5.9 million, or $.23
per share. These factors in the aggregate, generated approximately $4.4 million, or $.15 per share, in net income.
Growing Markets Define Opportunities for Future Growth
George Donovan, President and Chief Executive Officer of Bluegreen, commented, ``The record timeshare sales we
recorded during the fiscal 2001 second quarter and the continued profitability of our operations reflect the success
of our internal sales and marketing efforts, as well as the growing consumer demand for high quality, amenity-rich
leisure properties. We have increased the inventory in our residential land and golf segment. We recently acquired
597 acres of land outside of Chapel Hill, NC on which we intend to construct a new Bluegreen Golf Community. The
516 lots that will comprise this latest project, The Preserve at Jordan Lake, will surround an 18-hole golf course
designed by legendary golfer Davis Love III.
``As we continue to broaden our industry presence, we are also focusing on ways to lower our marketing costs as
a percentage of sales. We are in the process of centralizing all of our corporate marketing activities and have
opened a new corporate call center. We are also maintaining a focus on permission marketing and are seeking to
broaden the capabilities of our corporate website -- www.bluegreenonline.com -- to include fully functional e-commerce
aspects that should enable customers to conduct a wide range of online transactions, including vacation bookings
and account balance information. We are proud to be an active participant in what we believe is one of the most
exciting times in the history of our industry. We look forward to the future with great confidence.''
Stock Repurchase Program Continues
In January 2000, Bluegreen's Board of Directors authorized the repurchase of up to an additional one million shares
of the Company's common stock, from time to time in open market transactions, depending on price, availability,
market conditions and other factors. This is the third repurchase plan authorized by the Board of Directors since
October 1998, reflecting its continued confidence in Bluegreen and its future operations. Bluegreen completed the
repurchase of an aggregate of two million shares under the first two repurchase plans and as of November 1, 2000,
the Company has repurchased 300,800 shares of its common stock under this most recent plan.
Balance Sheet; A New Receivables Facility
Mr. Donovan commented, ``Our balance sheet and capital structure continue to be strong. Bluegreen's book value
equates to $5.72 per share and its debt-to-equity ratio is approximately 1.73:1. To attempt to further strengthen
our financial position and reduce our risk exposure, we recently signed a new $90 million timeshare receivables
purchase facility with Heller Financial, Inc. (NYSE: HF - news) acting as the Facility Administrator. The Company
is also in the process of negotiating new or increased acquisition and development lines of credit with interested
lenders.''
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; 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,'' ``estimate,'' ``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, regulatory changes, changes in
national or regional economic conditions that can affect the real estate market, risks associated with a large
investment in real estate, shortages of available inventory, the risk that future sales contemplated under the
timeshare purchase facility referred to above will not close, and that the Company will not enter into, on favorable
terms or at all, the new or increased acquisition and development lines of credit referred to above, 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 and its Form 10-Q to be filed on or about November 15, 2000. 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 Income
(In 000's, Except Per Share Data)
(Unaudited)
Three Months Ended Six Months Ended
October 1, October 3, October 1, October 3,
2000 1999 2000 1999
REVENUES:
Timeshare sales $ 43,620 $ 35,917 $ 77,971 $ 68,194
Lot sales 21,190 29,736 49,046 60,171
Total sales 64,810 65,653 127,017 128,365
Other resort and golf
operations revenue 7,859 5,658 15,577 11,041
Interest income 5,317 4,099 9,575 7,891
Gain on sale of notes
receivable - 884 - 884
Other income (expense) (50) 228 311 287
Total operating
revenues 77,936 76,522 152,480 148,468
EXPENSES:
Cost of sales:
Timeshare cost of
sales 9,380 8,367 17,288 15,914
Lot cost of sales 11,515 12,731 25,491 26,908
Total cost of sales 20,895 21,098 42,779 42,822
Cost of other resort and
golf operations 6,620 5,625 13,214 10,526
Selling, general and
administrative
expense 42,589 35,320 79,517 69,491
Interest expense 3,623 3,674 7,264 6,630
Provision for loan
losses 1,456 1,536 2,491 2,324
Total operating
expenses 75,183 67,253 145,265 131,793
Income before taxes 2,753 9,269 7,215 16,675
Provision for income
taxes 1,060 3,577 2,778 6,503
Minority interest in
loss of consolidated
subsidiary (308) (170) (576) (115)
Net income $ 2,001 $ 5,862 $ 5,013 $ 10,287
Net income per share:
Basic: $ 0.08 $ 0.25 $ 0.21 $ 0.44
Diluted: $ 0.08 $ 0.22 $ 0.20 $ 0.38
Weighted average number
of common and common
equivalent shares:
Basic 24,226 23,197 24,293 23,315
Diluted 25,857 29,527 25,940 29,688
BLUEGREEN CORPORATION
Condensed Consolidated Balance Sheets
(in 000's)
October 1, April 2,
2000 2000
(Unaudited)
ASSETS
Cash and cash equivalents $ 35,101 $ 65,526
Contracts receivable, net 13,871 8,403
Notes receivable, net 117,262 70,114
Inventory, net 188,251 196,509
Investments in securities 14,355 15,330
Property and equipment, net 39,181 35,409
Other assets 33,528 24,221
Total assets $441,549 $415,512
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Accounts payable, accrued liabilities
and other $ 39,205 $ 35,652
Deferred income 4,539 3,973
Deferred income taxes 15,948 13,173
Lines-of-credit and notes payable 89,783 77,531
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 299,846 280,700
Minority interest 3,136 768
Total shareholders' equity 138,567 134,044
Total liabilities and
shareholders' equity $441,549 $415,512
------------------------------------------
Contact:
Bluegreen Corporation
John Chiste
Chief Financial Officer
561/912-8010
john.chiste@bxgcorp.com
or
INVESTOR RELATIONS COUNSEL:
The Equity Group Inc.
Devin Sullivan
212/836-9608
www.theequitygroup.com