BOCA RATON, Fla.–(BUSINESS WIRE)–Bluegreen Vacations Corporation (NYSE: BXG) (“Bluegreen” or the
“Company”) today reported its first quarter 2019 financial results.
1Q19 Highlights:
-
Earnings Per Share (“EPS”) of $0.20, compared to $0.28 in the prior
year quarter. -
Net income attributable to shareholders was $15.2 million, compared to
$21.0 million in the prior year quarter. -
Adjusted EBITDA of $26.2 million, compared to $33.3 million in the
prior year quarter. -
Total revenue of $168.8 million, compared to $167.5 million in the
prior year quarter. -
System-Wide Sales of Vacation Ownership Interests (VOIs) of $129.7
million, compared to $132.8 million in the prior year quarter.
“We remain focused on strengthening our platform to support growth and
to accelerate new owner sales. To accomplish this, we added new sales
offices, streamlined processes and offered vacation package holders the
ability to book their vacations online,” said Shawn B. Pearson, Chief
Executive Officer and President. “During the quarter we saw an increase
in package sales, which we believe is a positive leading indicator for
VOI sales, and we are seeing the positive impact of sales at the new
resorts added to our network over the past year and improved activation
of our vacation packages. We continue to explore opportunities to add
new partnerships and distribution channels to broaden our network so as
to introduce Bluegreen to potential new owners. Our financial condition
is strong supported by a stable balance sheet and solid cash flows.”
“Regarding our relationship with Bass Pro Shops, we continue to have
communications regarding the scheduling of good faith meetings with the
objective of settling our differences and continuing our successful
alliance. In the meantime, we are continuing to sell vacation packages
through the Bass Pro marketing channel, we opened a new kiosk at the
Rogers, Arkansas Bass Pro store on April 26, 2019 and we achieved a 23%
increase in the number of vacation packages sold through the Bass Pro
marketing channel in the first quarter of 2019 compared to the first
quarter of 2018. In addition, we’re underway with the construction and
design process of new cabins within the Bluegreen/Big Cedar Vacations
joint venture with an affiliate of Bass Pro.”
| Financial Results | ||||||||
| (dollars in millions, except per share data) | ||||||||
| ———————————————————— | ||||||||
| Three Months Ended March 31, | ||||||||
| 2019 | 2018 | Change | ||||||
| Total revenue | $ | 168.8 | $ | 167.5 | 0.8% | |||
| Income before non-controlling interest and | ||||||||
| provision for income taxes | $ | 22.2 | $ | 30.8 | (27.9)% | |||
| Net income attributable to shareholders | $ | 15.2 | $ | 21.0 | (27.6)% | |||
| Earnings per share basic and diluted | $ | 0.20 | $ | 0.28 | (28.6)% | |||
| Adjusted EBITDA | $ | 26.2 | $ | 33.3 | (21.3)% | |||
| Capital-light revenue(1) as a percentage of | ||||||||
| total revenue | 70.8% | 74.8% | (400)bp | |||||
| (1) |
Bluegreen’s “capital-light” revenue includes revenue from the sales of VOIs under fee-based sales and marketing arrangements, just-in-time inventory acquisition arrangements, and secondary market arrangements, as well as other fee-based services revenue and cost reimbursements revenue. |
Total Revenue for the three months ended March 31, 2019 was $168.8
million, compared to $167.5 million in the prior year period, primarily
due to increases in resort operations and club management revenue and
interest income, partially offset by decreases in VOI sales and an
increase in the provision for loan losses as discussed more fully under
“Segment Results” below. Adjusted EBITDA was $26.2 million in the first
quarter of 2019 compared to $33.3 million in the first quarter of 2018,
primarily due to lower VOI sales and higher provision for loan losses,
cost of VOI sales and net carrying cost of inventory, partially offset
by higher profit on resort operations and club management.
Corporate & Other expenses were $18.2 million in the first quarter of
2019 compared to $22.5 million in the first quarter of 2018. The decline
in the 2019 period was primarily due to lower legal and healthcare
costs, and lower long-term incentive compensation.
In terms of segment results, decreased results in the Sales of VOIs and
Financing segment were partially offset by growth in the Company’s
Resort Operations and Club Management segment, as more fully described
below.
| Segment Results | ||||||||
| Sales of VOIs and Financing Segment | ||||||||
|
(dollars in millions, except per guest and per transaction |
||||||||
|
|
||||||||
| Three Months Ended March 31, | ||||||||
| 2019 | 2018 | Change | ||||||
| System-wide sales of VOIs | $ | 129.7 | $ | 132.8 | (2.4)% | |||
| Segment adjusted EBITDA | $ | 31.1 | $ | 43.7 | (28.8)% | |||
| Number of total guest tours | 48,138 | 50,197 | (4.1)% | |||||
| Average sales price per transaction | $ | 15,796 | $ | 15,234 | 3.7% | |||
| Sales to tour conversion ratio | 17.1% | 17.5% | (2.3)% | |||||
| Sales volume per guest (“VPG”) | $ | 2,705 | $ | 2,661 | 1.7% | |||
| Selling and marketing expenses, as a | ||||||||
| % of system-wide sales of VOIs | 50.3% | 49.4% | 90bp | |||||
| Provision for loan losses | 17.7% | 12.5% | 520bp | |||||
| Cost of VOIs sold | 7.4% | 3.2% | 420bp | |||||
During the first quarter of 2019, system-wide sales of VOIs were $129.7
million, compared to $132.8 million in the first quarter of 2018. The
decrease in sales reflected the decrease in guest tours, partially
offset by a slightly higher average sales volume per guest (“VPG”). The
impact of lower marketing vacation package sales last year and
pre-qualifying holders of packages through the Company’s “yield
management” program resulted in a decrease in the number of tours in the
first quarter of 2019, although, as indicated above, an increase in VPG.
Package sales volumes in the first quarter of 2019 increased 8% compared
to the first quarter of 2018 and this increase is expected to result in
increased guest tours over the next six to 18 months.
Provision for loan losses increased to 17.7% of gross VOI sales,
compared to 12.5% in the prior year first quarter. In the first quarter
of 2018, the low provision for loan losses resulted primarily from the
impact of prepayments (including equity trades) on prior years’
originations in excess of previous estimates. The Company’s provision
for loan losses in the third and fourth quarter of 2018 was 17.0% and
20.7%, respectively, with expectations for 2019 at the low end of that
range. The year over year increase was also driven by continued attorney
cease and desist activity. The Company believes that its zero-tolerance
strategy and ongoing steps to address this issue, should ultimately
result in a reduction of cease and desist activity.
Fee-based sales commission revenue was $45.2 million in the first
quarter of 2019, compared to $45.9 million in the first quarter of 2018.
The year over year change reflected lower sales of third-party VOI
inventory, partially offset by higher commission rates.
In the first quarter of 2019, cost of VOIs sold represented 7.4% of
sales of VOIs compared to 3.2% in the first quarter of 2018. In the
first quarter of 2018, the low cost of VOIs sold was primarily due to
the benefit achieved from approximately 36% of our VOI sales coming from
a resort that we acquired in 2017 that had a relatively lower cost than
our other VOIs. The cost of VOIs sold in the first quarter of 2019 were
favorably impacted by more secondary market inventory acquisitions
during the quarter than expected.
Net carrying cost of inventory increased $5.2 million in the first
quarter of 2019 compared to the first quarter of 2018, primarily due to
the carrying cost associated with the Éilan Hotel and Spa, which was
acquired in April 2018.
| Resort Operations and Club Management Segment | ||||||||
| (dollars in millions) | ||||||||
| Three Months Ended March 31, | ||||||||
| 2019 | 2018 | % Change | ||||||
| Resort operations and club management revenue | $ | 47.1 | $ | 41.5 | 13.3% | |||
| Segment adjusted EBITDA | $ | 13.2 | $ | 12.1 | 9.6% | |||
| Resorts managed | 49 | 47 | 4.3% | |||||
In the first quarter of 2019, resort operations and management club
revenue increased by $5.5 million, or 13.3%, to $47.1 million from the
prior year quarter. The increase was driven in part by the additional
resorts managed in the first quarter of 2019 compared to 2018, as well
as fee increases under certain management contracts. Segment adjusted
EBITDA grew by 9.6% to $13.2 million.
Balance Sheet and Liquidity
As of March 31, 2019, unrestricted cash and cash equivalents totaled
$189.9 million. Bluegreen had availability of approximately $191.1
million under its receivable-backed purchase and credit facilities and
corporate credit line as of March 31, 2019, subject to eligible
collateral and the terms of the facilities, as applicable. Excluding
receivable-backed notes payable, the Company’s net debt-to-EBITDA ratio
as of March 31, 2019 was only 0.05.
Free cash flow, which the Company defines as cash flow from operating
activities, less capital expenditures, was $3.4 million for the quarter
ended March 31, 2019, compared to $8.0 million for the quarter ended
March 31, 2018. The decrease in free cash flow was primarily
attributable to sales office expansions, increased information
technology spending and the acquisition of secondary market inventory,
partially offset by lower income tax payments and lower change in
working capital.
During the first quarter of 2019, the Company did not repurchase any
shares of Common Stock under the repurchase program approved by the
Company’s Board of Directors in 2018. There are approximately 2.7
million shares remaining in the program authorized for repurchase. The
program authorizes the Company, in management’s discretion, to
repurchase shares from time to time subject to market conditions and
other factors.
Dividend
On April 17, 2019, Bluegreen’s Board of Directors declared a quarterly
common stock cash dividend of $0.17 per share. The dividend is payable
May 15, 2019 to shareholders of record as of the close of trading on
April 30, 2019.
First Quarter 2019 Webcast
The Company has provided a pre-recorded business update and management
presentation via webcast link, indicated below, in the Investor
Relations section of its website at ir.bluegreenvacations.com. A
transcript will also be available simultaneously with the webcast. The
webcast and supplemental management presentation can be accessed on the
Investor Relations section of Bluegreen Vacations’ website at ir.bluegreenvacations.com.
The pre-recorded presentation can also be accessed at 1-844-512-2921
(domestic) and 1-412-317-6671 (international) and entering pin number
1134342. The business update via dial-in will be available through
midnight Sunday, June 2, 2019. A transcript will also be available
simultaneously with the webcast.
Forward-Looking Statements:
Certain statements in this press release are “forward-looking
statements” within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of
1934, as amended. All statements, other than statements of historical
fact, are forward-looking statements. Forward-looking statements are
based on current expectations of management and can be identified by the
use of words such as “believe”, “may”, “could”, “should”, “plans”,
“anticipates”, “intends”, “estimates”, “expects”, and other words and
phrases of similar impact. Forward-looking statements involve risks,
uncertainties and other factors, many of which are beyond our control,
that may cause actual results or performance to differ from those set
forth or implied in the forward-looking statements. These risks and
uncertainties include, without limitation, risks relating to our ability
to achieve increases in VOI sales or new owner sales successfully
implementing our strategic plans and initiatives, generate earnings and
long-term growth, improve our digital capabilities, including our
virtual reality technology or complete sales office expansions when
planned or at all and that such expansions will be profitable; and risks
that our marketing alliances will not contribute to growth or be
profitable or that issues with Bass Pro will not be successfully
resolved; risks that dividend payments will not continue at current
levels, if at all; and the additional risks and uncertainties described
in Bluegreen’s filings with the Securities and Exchange Commission,
including, without limitation, those described in the “Risk Factors”
section of Bluegreen’s Annual Report on Form 10-K and the Quarterly
Report on Form 10-Q for the three months ended March 31, 2019 which is
expected to be filed on or about May 6, 2019. Bluegreen cautions that
the foregoing factors are not exclusive. You should not place undue
reliance on any forward-looking statement, which speaks only as of the
date made. Bluegreen does not undertake, and specifically disclaims any
obligation, to update or supplement any forward-looking statements.
Non-GAAP Financial Measures:
The Company refers to certain non-GAAP financial measures in this press
release, including system-wide sales of VOIs, Adjusted EBITDA, adjusted
EPS and free cash flow. Please see the supplemental tables and
definitions attached herein for additional information and
reconciliation of such non-GAAP financial measures.
About Bluegreen Vacations Corporation:
Bluegreen Vacations Corporation (NYSE: BXG) is a leading vacation
ownership company that markets and sells vacation ownership interests
(VOIs) and manages resorts in top leisure and urban destinations. The
Bluegreen Vacation Club is a flexible, points-based, deeded vacation
ownership plan with approximately 217,000 owners, 69 Club and Club
Associate Resorts and access to more than 11,000 other hotels and
resorts through partnerships and exchange networks as of March 31, 2019.
Bluegreen Vacations also offers a portfolio of comprehensive, fee-based
resort management, financial, and sales and marketing services, to or on
behalf of third parties. Bluegreen is approximately 90% owned by BBX
Capital Corporation (NYSE: BBX) (OTCQX: BBXTB), a diversified holding
company. For further information, visit www.BluegreenVacations.com.
About BBX Capital Corporation:
BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB) is a Florida-based
diversified holding company whose principal investments include
Bluegreen Vacations Corporation (NYSE: BXG), BBX Capital Real Estate,
Renin Holdings, and IT’SUGAR. For additional information, please visit www.BBXCapital.com.
| BLUEGREEN VACATIONS CORPORATION | ||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||
| AND COMPREHENSIVE INCOME (UNAUDITED) | ||||||
| (In thousands, except for share and per share data) | ||||||
| For the Three Months Ended | ||||||
| March 31, | ||||||
| 2019 | 2018 | |||||
| Revenue: | ||||||
| Gross sales of VOIs | $ | 62,884 | $ | 64,160 | ||
| Provision for loan losses | (11,153) | (8,019) | ||||
| Sales of VOIs | 51,731 | 56,141 | ||||
| Fee-based sales commission revenue | 45,212 | 45,854 | ||||
| Other fee-based services revenue | 29,568 | 28,024 | ||||
| Cost reimbursements | 20,236 | 16,200 | ||||
| Interest income | 22,008 | 21,122 | ||||
| Other income, net | 89 | 181 | ||||
| Total revenue | 168,844 | 167,522 | ||||
| Costs and expenses: | ||||||
| Cost of VOIs sold | 3,848 | 1,812 | ||||
| Cost of other fee-based services | 22,868 | 17,411 | ||||
| Cost reimbursements | 20,236 | 16,200 | ||||
| Selling, general and administrative expenses | 90,214 | 93,549 | ||||
| Interest expense | 9,506 | 7,767 | ||||
| Total costs and expenses | 146,672 | 136,739 | ||||
| Income before non-controlling interest and | ||||||
| provision for income taxes | 22,172 | 30,783 | ||||
| Provision for income taxes | 5,303 | 7,201 | ||||
| Net income | 16,869 | 23,582 | ||||
|
Less: Net income attributable to non-controlling interest |
1,716 | 2,607 | ||||
| Net income attributable to Bluegreen | ||||||
| Vacations Corporation shareholders | $ | 15,153 | $ | 20,975 | ||
| Comprehensive income attributable to | ||||||
| Bluegreen Vacations Corporation | ||||||
| shareholders | $ | 15,153 | $ | 20,975 | ||
| BLUEGREEN VACATIONS CORPORATION | ||||||
| CONSOLIDATED STATEMENTS OF INCOME | ||||||
| AND COMPREHENSIVE INCOME (UNAUDITED) | ||||||
| (In thousands, except for share and per share data) | ||||||
| For the Three Months Ended | ||||||
| March 31, | ||||||
| 2019 | 2018 | |||||
|
Earnings per share attributable to Bluegreen Vacations Corporation shareholders – Basic and diluted |
$ | 0.20 | $ | 0.28 | ||
|
Weighted average number of common shares outstanding: |
||||||
| Basic and diluted | 74,446 | 74,734 | ||||
| Cash dividends declared per share | $ | 0.17 | $ | 0.15 | ||
| BLUEGREEN VACATIONS CORPORATION | ||||||
| CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) | ||||||
| (In thousands) | ||||||
| For the Three Months Ended | ||||||
| March 31, | ||||||
| 2019 | 2018 | |||||
| Operating activities: | ||||||
| Net income | $ | 16,869 | $ | 23,582 | ||
| Adjustments to reconcile net income to net cash provided | ||||||
| by operating activities: | ||||||
| Depreciation and amortization | 4,486 | 3,946 | ||||
| Loss on disposal of property and equipment | 10 | — | ||||
| Provision for loan losses | 11,145 | 8,006 | ||||
| Provision for deferred income taxes | 2,281 | 3,247 | ||||
| Changes in operating assets and liabilities: | ||||||
| Notes receivable | (7,607) | (5,264) | ||||
| Prepaid expenses and other assets | (9,131) | (5,177) | ||||
| Inventory | (8,237) | (9,673) | ||||
| Accounts payable, accrued liabilities and other, and | ||||||
| deferred income | 1,126 | (5,204) | ||||
| Net cash provided by operating activities | 10,942 | 13,463 | ||||
| Investing activities: | ||||||
| Purchases of property and equipment | (7,507) | (5,462) | ||||
| Net cash used in investing activities | (7,507) | (5,462) | ||||
| Financing activities: | ||||||
| Proceeds from borrowings collateralized | ||||||
| by notes receivable | 13,487 | 25,761 | ||||
| Payments on borrowings collateralized by notes receivable | (34,968) | (33,947) | ||||
| Payments under line-of-credit facilities and notes payable | (8,168) | (16,487) | ||||
| Payments of debt issuance costs | (105) | (98) | ||||
| Dividends paid | (12,655) | (11,210) | ||||
| Net cash used in financing activities | (42,409) | (35,981) | ||||
| Net decrease in cash and cash equivalents | ||||||
| and restricted cash | (38,974) | (27,980) | ||||
| Cash, cash equivalents and restricted cash at beginning of period | 273,134 | 243,349 | ||||
| Cash, cash equivalents and restricted cash at end of period | $ | 234,160 | $ | 215,369 | ||
| Supplemental schedule of operating cash flow information: | ||||||
| Interest paid, net of amounts capitalized | $ | 8,271 | $ | 6,685 | ||
| Income taxes paid | $ | 812 | $ | 4,182 | ||
| BLUEGREEN VACATIONS CORPORATION | ||||||
| CONSOLIDATED BALANCE SHEETS (UNAUDITED) | ||||||
| (In thousands, except for per share data) | ||||||
| March 31, | December 31, | |||||
| 2019 | 2018 | |||||
| ASSETS | ||||||
| Cash and cash equivalents | $ | 189,875 | $ | 219,408 | ||
| Restricted cash ($20,714 and $28,400 in VIEs at March 31, 2019 | ||||||
| and December 31, 2018, respectively) | 44,285 | 53,726 | ||||
| Notes receivable, net ($318,111 and $341,975 in VIEs | ||||||
| at March 31, 2019 and December 31, 2018, respectively) | 435,629 | 439,167 | ||||
| Inventory | 342,386 | 334,149 | ||||
| Prepaid expenses | 17,948 | 10,097 | ||||
| Other assets | 48,931 | 49,796 | ||||
| Operating lease assets | 24,031 | — | ||||
| Intangible assets, net | 61,577 | 61,845 | ||||
| Loan to related party | 80,000 | 80,000 | ||||
| Property and equipment, net | 102,431 | 98,279 | ||||
| Total assets | $ | 1,347,093 | $ | 1,346,467 | ||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||
| Liabilities | ||||||
| Accounts payable | $ | 16,169 | $ | 19,515 | ||
| Accrued liabilities and other | 80,827 | 80,364 | ||||
| Operating lease liabilities | 25,263 | — | ||||
| Deferred income | 17,051 | 16,522 | ||||
| Deferred income taxes | 93,337 | 91,056 | ||||
| Receivable-backed notes payable – recourse | 74,744 | 76,674 | ||||
| Receivable-backed notes payable – non-recourse (in VIEs) | 363,183 | 382,257 | ||||
| Lines-of-credit and notes payable | 125,436 | 133,391 | ||||
| Junior subordinated debentures | 71,504 | 71,323 | ||||
| Total liabilities | 867,514 | 871,102 | ||||
| Commitments and Contingencies | ||||||
| Shareholders’ Equity | ||||||
|
Common stock, $.01 par value, 100,000,000 shares authorized; 74,445,923 |
||||||
| shares issued and outstanding at March 31, 2019 and December 31, 2018 | 744 | 744 | ||||
| Additional paid-in capital | 270,369 | 270,369 | ||||
| Retained earnings | 161,139 | 158,641 | ||||
| Total Bluegreen Vacations Corporation shareholders’ equity | 432,252 | 429,754 | ||||
| Non-controlling interest | 47,327 | 45,611 | ||||
| Total shareholders’ equity | 479,579 | 475,365 | ||||
| Total liabilities and shareholders’ equity | $ | 1,347,093 | $ | 1,346,467 | ||
| BLUEGREEN VACATIONS CORPORATION | ||||||
| ADJUSTED EBITDA RECONCILIATION | ||||||
| For the Three Months Ended | ||||||
| March 31, | ||||||
| (in thousands) | 2019 | 2018 | ||||
| Net income attributable to shareholders | $ | 15,153 | $ | 20,975 | ||
| Net income attributable to the | ||||||
| non-controlling interest in | ||||||
| Bluegreen/Big Cedar Vacations | 1,716 | 2,607 | ||||
| Adjusted EBITDA attributable to the | ||||||
| non-controlling interest | ||||||
| in Bluegreen/Big Cedar Vacations | (1,781) | (2,612) | ||||
| Loss (gain) on assets held for sale | 9 | (20) | ||||
| Add: depreciation and amortization | 3,365 | 2,927 | ||||
| Less: interest income (other than interest | ||||||
| earned on VOI notes receivable) | (1,846) | (1,434) | ||||
| Add: interest expense – corporate and other | 4,244 | 3,056 | ||||
| Add: franchise taxes | 34 | 81 | ||||
| Add: provision for income taxes | 5,303 | 7,201 | ||||
| Corporate realignment cost | — | 476 | ||||
| Total Adjusted EBITDA | $ | 26,197 | $ | 33,257 | ||
| BLUEGREEN VACATIONS CORPORATION | ||||||
| SEGMENT ADJUSTED EBITDA SUMMARY | ||||||
| For the Three Months Ended | ||||||
| March 31, | ||||||
| (in thousands) | 2019 | 2018 | ||||
| Adjusted EBITDA – sales of VOIs | ||||||
| and financing | $ | 31,131 | $ | 43,702 | ||
| Adjusted EBITDA – resort operations | ||||||
| and club management | 13,234 | 12,078 | ||||
| Total Segment Adjusted EBITDA | 44,365 | 55,780 | ||||
| Less: Corporate and other | (18,168) | (22,523) | ||||
| Total Adjusted EBITDA | $ | 26,197 | $ | 33,257 | ||
| BLUEGREEN VACATIONS CORPORATION | ||||||||||
| SALES OF VOIs AND FINANCING SEGMENT- ADJUSTED EBITDA | ||||||||||
| For the Three Months Ended March 31, | ||||||||||
| 2019 | 2018 | |||||||||
|
% of |
% of | |||||||||
|
System- |
System- | |||||||||
|
wide sales |
wide sales | |||||||||
| Amount |
of VOIs((5)) |
Amount | of VOIs ((5)) | |||||||
| (in thousands) | ||||||||||
| Developed VOI sales (1) | $ | 68,153 | 53% | $ | 47,531 | 36% | ||||
| Secondary Market sales | 59,153 | 45 | 76,289 | 57 | ||||||
| Fee-Based sales | 66,794 | 52 | 68,684 | 52 | ||||||
| JIT sales | 2,234 | 2 | 3,369 | 3 | ||||||
| Less: Equity trade allowances (6) | (66,656) | (52) | (63,029) | (48) | ||||||
| System-wide sales of VOIs | 129,678 | 100% | 132,844 | 100% | ||||||
| Less: Fee-Based sales | (66,794) | (52) | (68,684) | (52) | ||||||
| Gross sales of VOIs | 62,884 | 48 | 64,160 | 48 | ||||||
| Provision for loan losses (2) | (11,153) | (18) | (8,019) | (12) | ||||||
| Sales of VOIs | 51,731 | 40 | 56,141 | 42 | ||||||
| Cost of VOIs sold (3) | (3,848) | (7) | (1,812) | (3) | ||||||
| Gross profit (3) | 47,883 | 93 | 54,329 | 97 | ||||||
| Fee-Based sales commission revenue (4) | 45,212 | 68 | 45,854 | 67 | ||||||
| Financing revenue, net of financing expense | 14,865 | 11 | 14,738 | 11 | ||||||
| Other fee-based services – title operations, net | 1,518 | 1 | 1,447 | 1 | ||||||
| Net carrying cost of VOI inventory | (7,687) | (6) | (2,517) | (2) | ||||||
| Selling and marketing expenses | (65,222) | (50) | (65,683) | (49) | ||||||
| General and administrative expenses – sales and | ||||||||||
| marketing | (6,974) | (5) | (6,133) | (5) | ||||||
| Operating profit – sales of VOIs and financing | 29,595 | 23% | 42,035 | 32% | ||||||
| Add: Depreciation and amortization | 1,536 | 1,667 | ||||||||
| Adjusted EBITDA – sales of VOIs and financing | $ | 31,131 | $ | 43,702 | ||||||
| (1) |
Developed VOI sales represent sales of VOIs acquired or developed by us under our developed VOI business. Developed VOI sales do not include Secondary Market sales, Fee-Based sales or JIT sales. |
|
| (2) |
Provision for loan losses is calculated as a percentage of gross sales of VOIs, which excludes Fee-Based sales (and not based on system-wide sales of VOIs). |
|
| (3) |
Percentages for costs of VOIs sold and gross profit are calculated as a percentage of sales of VOIs (and not based on system-wide sales of VOIs). |
|
| (4) |
Percentages for Fee-Based sales commission revenue are calculated as a percentage of Fee-Based sales (and not based on system-wide sales of VOIs). |
|
| (5) |
Represents the applicable line item, calculated as a percentage of system-wide sales of VOIs, unless otherwise indicated in the above footnotes. |
|
| (6) |
Equity trade allowances are amounts granted to customers upon trading in their existing VOIs in connection with the purchase of additional VOIs. |
| BLUEGREEN VACATIONS CORPORATION | ||||||||
| SALES OF VOIs AND FINANCING SEGMENT | ||||||||
| SALES AND MARKETING DATA | ||||||||
| For the Three Months Ended | ||||||||
| March 31, | ||||||||
| 2019 | 2018 | % Change | ||||||
| (dollars in thousands) | ||||||||
| Number of sales offices at period-end | 26 | 24 | 8 | |||||
| Number of active sales arrangements | ||||||||
| with third-party clients at period-end | 15 | 13 | 15 | |||||
| Total number of VOI sales transactions | 8,243 | 8,769 | (6) | |||||
| Average sales price per transaction | $ | 15,796 | $ | 15,234 | 4 | |||
| Number of total guest tours | 48,138 | 50,197 | (4) | |||||
| Sale-to-tour conversion ratio– | ||||||||
| total marketing guests | 17.1% | 17.5% | (2) | |||||
| Number of new guest tours | 28,064 | 29,879 | (6) | |||||
| Sale-to-tour conversion ratio– | ||||||||
| new marketing guests | 13.9% | 14.9% | (7) | |||||
| Percentage of sales to existing owners | 56.9% | 54.0% | 5 | |||||
| Average sales volume per guest | $ | 2,705 | $ | 2,661 | 2 | |||
| BLUEGREEN VACATIONS CORPORATION | |||||||||||
| RESORT OPERATIONS AND CLUB MANAGEMENT SEGMENT- ADJUSTED EBITDA | |||||||||||
| For the Three Months Ended | |||||||||||
| March 31, | |||||||||||
| (dollars in thousands) | 2019 | 2018 | |||||||||
| Resort operations and club management revenue | $ | 47,076 | $ | 41,535 | |||||||
| Resort operations and club management expense | (34,207) | (29,852) | |||||||||
| Operating profit – resort operations and club | |||||||||||
| management | 12,869 | 27% | 11,683 | 28% | |||||||
| Add: Depreciation and amortization | 365 | 395 | |||||||||
| Adjusted EBITDA – resort operations and | |||||||||||
| club management | $ | 13,234 | $ | 12,078 | |||||||
Contacts
Bluegreen Vacations Corporation
Investor Relations:
Nikki
Sacks, 203-682-8263
or
Evelyn Infurna, 203-682-8265
Email:
bluegreenvac@icrinc.com