Press Release
June 14, 2001
BOCA RATON, FL -- (NYSE:BXG):
FY 2001 Q4 Highlights Vs. FY 2000 Q4
------------------------------------
- Timeshare Sales Increase 26.1%
- Land Sales Up 44.7%
- Net Loss Narrows By $1.8 Million
FY 2001 Highlights Vs. FY 2000
------------------------------
- Timeshare Sales Increase 17.2%
- Total Operating Revenues Rise 8.2%
- Book Value Up; Debt to Equity Ratio Down
- Critical Mass Yielding Benefits
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 fiscal fourth quarter and year ended April
1, 2001 (see attached tables).
The Company believes that the initial benefits of its strategic business plan to improve operating efficiencies,
enhance profitability and maximize return on assets were manifested towards the end of the fourth quarter of fiscal
2001. The impact of this plan during the quarter combined with strong consumer demand for the Company's product
offerings. Highlights for the fourth quarter of fiscal 2001 as compared to the fiscal 2000 fourth quarter include
double digit sales increases at the timeshare and land divisions, a stabilized expense profile and a significantly
narrowed net loss. Management also noted the benefits which it believes are being produced as the Company achieves
critical mass.
George F. Donovan, President and Chief Executive Officer of Bluegreen, commented, ``We are very pleased with the
improvement in our fourth quarter results and are encouraged by the strong consumer demand for our timeshare and
land offerings. In fact, March 2001 was Bluegreen's strongest sales month since June 1999. I am also happy to report
that the sales momentum created in the fourth quarter has continued through the first two months of the current
first quarter. As we continue to implement our strategic business plan, these sales are producing a high degree
of operating leverage. Although the first quarter is not yet complete, based on results to date, current business
conditions and outlook, we expect to return to profitability in the first quarter of fiscal 2002 ending July 1,
2001.''
Timeshare sales for the fiscal 2001 fourth quarter increased 26.1% to $31.6 million from $25.0 million for the
same period last year and represented 58% of total sales. Timeshare sales for fiscal 2001 rose 17.2% to $137.4
million from $117.3 million last year. Fiscal 2001 timeshare sales accounted for 61% of the Company's total sales
as compared to 55% last year. Higher timeshare sales for both periods of fiscal 2001 were due to the continued
success of the points-based Bluegreen Vacation Club and overall price increases. Bluegreen also generated approximately
$2.6 million of timeshare sales from its recently instituted program that encourages existing owners to upgrade
their ownership interest in the Bluegreen Vacation Club at an attractive price. These sales also produce attractive
gross margins.
Lot sales for the fourth quarter of fiscal 2001 increased 44.7% to $22.9 million versus $15.8 million for the fourth
quarter of fiscal 2000. Despite the fourth quarter increase in lot sales, lot sales for fiscal 2001 decreased to
$88.9 million from $97.2 million last year. This annual decrease was due primarily to the inclusion in fiscal 2000
of approximately $5.0 million from the one-time, bulk sale of land and mineral rights, the impact of percentage-of-completion
accounting and an additional week of operations during fiscal 2000 that generated $4.6 million of lot sales.
Mr. Donovan continued, ``The benefits of reaching critical mass in our customer base are reflected in the Company's
increasing ancillary revenue streams, stabilized (and, in some cases, decreased) operating expenses and narrowed
fourth quarter net loss. Rather than simply selling product, we have established an operational foundation which
we believe has the potential to enhance existing streams of revenue while creating new and exciting profit centers
in the years to come.''
Mr. Donovan illustrated his point by noting the fiscal 2001 increases in other resort and golf operations revenue,
interest income and gain on sale of notes receivable. Total cost of sales remained constant during the 2001 fourth
quarter and year. During the fourth quarter of fiscal 2001, cost of other resort and golf operations (despite a
$931,000 sales increase) and S,G&A declined as a percentage of total revenue. He also noted fiscal 2001 sales
increases in areas such as resorts management, vacation club administration and the Company's resort title business.
``In our timeshare division, Bluegreen has cultivated a base of loyal customers over the past 7 years that is now
being leveraged through a variety of marketing programs and strategic alliances. We have centralized most resort
marketing operations at the Company's headquarters and consolidated most of our telemarketing operations in South
Florida, implemented a centralized resort marketing database and instituted a new profit-based compensation structure
for resort sales and marketing management. Our land division has continued its concerted effort to focus on larger,
residential land and golf community properties in selected markets where we have demonstrated acquisition, marketing
and sales strength.''
Higher total operating revenues and an improving expense structure contributed to a narrowed net loss for the fourth
quarter of fiscal 2001. The net loss for the fourth quarter was $935,000, or $.04 per share, versus a net loss
of $2.7 million, or $.11 per share, for the same period last year. Bluegreen remained profitable for the fiscal
year, reporting net income of $2.7 million, or $.11 per share, compared to net income of $6.8 million, or $.28
per share, last year.
Mr. Donovan commented, ``A recent issue of BusinessWeek magazine reported that vacations are still a way of life
for Americans. During fiscal 2001, this robust consumer demand was manifested in the sell-out of our Orlando's
Sunshine II timeshare resort just 14 months after its completion - a Company record - and the commencement of sales
at the Company's 51%-owned, wilderness-themed resort adjacent to the world famous Big Cedar Lodge at Table Rock
Lake, MO. On the land side, the grand opening of The Preserve at Jordan Lake, our exciting new Bluegreen Golf Community
near Chapel Hill, NC, not only contributed fiscal 2001 sales, but also generated a tremendous amount of positive
response from its owners.''
The Company maintained a dedication to prudent fiscal management during fiscal 2001, as evidenced by a book value
at April 1, 2001 of $5.65 per share and a debt-to-equity ratio of approximately 1.6:1. During fiscal 2001 Bluegreen
signed a $90 million non-recourse timeshare receivables purchase facility (sales under that facility to date total
$77.7 million), renewed its $10 million unsecured line of credit with First Union National Bank until December
31, 2001, and extended and increased the amount of its land receivables and inventory financing facility with Foothill
Capital Corporation to $30 million through December 31, 2005.
Mr. Donovan concluded, ``The years ahead offer tremendous opportunity for Bluegreen as we continue to expand our
portfolio of high quality timeshare and land product offerings, introduce innovative programs and strategies and
leverage the critical mass we have achieved. A primary strength remains our people who, in my opinion, represent
the best and brightest in our industry. We all look forward to the future with confidence.''
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;
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, actual results for future periods
may differ from those estimated, the Company may not be profitable in the first quarter, consumer demand may be
less than anticipated, 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,
that the Company will not be able to borrow under credit facilities 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
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
10K to be filed with respect to fiscal 2001. 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
------------------ ----------
April 1, April 2, April 1, April 2,
2001 2000 2001 2000
---- ---- ---- ----
Unaudited
---------
REVENUES:
Lot sales $ 22,926 $ 15,841 $ 88,899 $ 97,217
Timeshare sales 31,564 25,034 137,411 117,271
-------- -------- -------- --------
Total sales 54,490 40,875 226,310 214,488
Other resort and golf
operations revenue 6,433 5,502 28,213 21,745
Interest income 3,783 3,858 17,317 15,652
Gain on sale of notes
receivable 1,015 486 3,281 2,063
Other income (expense) (54) 249 572 735
-------- -------- -------- --------
Total operating revenues 65,667 50,970 275,693 254,683
EXPENSES:
Cost of sales:
Lot cost of sales 12,402 9,098 47,746 47,583
Timeshare cost of sales 7,564 5,736 31,049 27,374
-------- -------- -------- --------
Total cost of sales 19,966 14,834 78,795 74,957
Cost of other resort and
golf operations 5,457 5,054 24,951 20,948
Selling, general and
administrative expense 36,335 29,819 148,564 129,034
Interest expense 4,229 3,681 15,494 13,841
Provision for loan losses 1,496 1,958 4,887 5,338
-------- -------- -------- --------
Total operating expenses 67,483 55,346 272,691 244,118
-------- -------- -------- --------
Income (loss) before taxes (1,816) (4,376) 3,002 10,565
Provision (benefit) for
income taxes (699) (1,772) 1,156 4,055
Minority interest income
(loss) of consolidated
subsidiary (182) 120 (871) (267)
-------- -------- -------- --------
Net income (loss) $ (935) $ (2,724) $ 2,717 $ 6,777
======== ======== ======== ========
Net income (loss) per share:
Basic: $ (0.04) $ (0.11) $ 0.11 $ 0.29
======== ======== ======== ========
Diluted: $ (0.04) $ (0.11) $ 0.11 $ 0.28
======== ======== ======== ========
Weighted average number
of common and common
equivalent shares:
Basic 24,190 23,971 24,242 23,323
======== ======== ======== ========
Diluted 24,190 23,971 24,316 25,375
======== ======== ======== ========
BLUEGREEN CORPORATION
Condensed Consolidated Balance Sheets
(in 000's)
April 1, April 2,
2001 2000
---- ----
ASSETS
Cash and cash equivalents $ 40,016 $ 65,526
Contracts receivable, net 18,507 7,919
Notes receivable, net 74,796 70,114
Inventory, net 193,634 197,093
Investment in securities 19,898 15,330
Property and equipment, net 41,462 35,409
Other assets 31,368 22,592
---------- ----------
Total assets $ 419,681 $ 413,983
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY
Liabilities
Accounts payable, accrued liabilities
and other $ 37,416 $ 35,168
Deferred income 5,314 2,928
Deferred income taxes 19,329 13,173
Lines-of-credit and notes payable 67,620 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 280,050 279,171
Minority interest 2,841 768
Total shareholders' equity 136,790 134,044
---------- ----------
Total liabilities and
shareholders' equity $ 419,681 $ 413,983
========== ==========
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Contact:
Bluegreen Corporation, Boca Raton
John Chiste, 561/912-8010
Chief Financial Officer
john.chiste@bxgcorp.com
- or -
Investor Relations Counsel:
The Equity Group Inc., New York
Devin Sullivan, 212/836-9608
www.theequitygroup.com