BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB) (“BBX
Capital” or the “Company”) reported today its financial results for
the quarter ended September 30, 2019.
Selected highlights of BBX Capital’s consolidated financial
results include:
Third Quarter 2019 Compared to Third Quarter
2018:
- Total consolidated revenues of $255.1 million vs. $254.4
million
- Net income attributable to shareholders of $22.4 million vs.
$6.2 million
- Diluted earnings per share of $0.24 vs. $0.06
- Free cash flow of $50.1 million vs. $17.7 million(1)
- Adjusted EBITDA of $52.1 million vs. $22.1 million(2)
(1)
See the supplemental tables included in
this release for a reconciliation of BBX Capital’s cash flow from
operating activities to free cash flow, which is defined as cash
provided by operating activities less capital expenditures for
property and equipment.
(2)
See the supplemental tables included in
this release for a reconciliation of BBX Capital’s net income to
Adjusted EBITDA.
Balance Sheet as of September 30, 2019
Compared to December 31, 2018
- Total consolidated assets of $1.8 billion vs. $1.7 billion
- Total shareholders' equity of $556.7 million vs. $549.6
million
- Fully diluted book value per share of $5.77 vs. $5.70 (1)
(1)
Fully diluted book value per share is
shareholders’ equity divided by the number of Class A and Class B
common shares outstanding plus unvested restricted stock awards as
of period end
During the quarter ended September 30, 2019, the Company
repurchased approximately 1.4 million shares of its Class A Common
Stock for $7.0 million pursuant to the share repurchase program
approved by the Company’s Board of Directors in June 2017. As of
September 30, 2019, the Company had repurchased approximately 3.3
million shares of its Class A Common Stock for $18.9 million under
the June 2017 repurchase program.
Alan B. Levan, Chairman and Chief Executive Officer of BBX
Capital Corporation, commented, “The third quarter of 2019 reflects
our ongoing objectives to increase intrinsic value for our
shareholders, to position our segments for long-term growth, and to
streamline our business verticals. During the quarter, we realized
our investment in our Altis at Bonterra joint venture, which
resulted in earnings of $29.1 million and cash proceeds of $46.0
million. In addition, Bluegreen remained focused on its ongoing
growth initiatives, including the addition of vacation package
sales kiosks in seven Cabela’s locations and the addition of
inventory and sales office space at the Fountains Resort in
Orlando, Florida. Further, as part of our ongoing efforts to
streamline our business verticals, we exited our operations as a
franchisee of MOD Pizza restaurants in Florida.”
“As we have stated each quarter, since many of BBX Capital’s
assets do not generate income on a regular or predictable basis,
our objective continues to be long term growth as measured by
increases in book value and intrinsic value over time,” Levan
concluded.
---------------
For more complete and detailed information regarding BBX Capital
and its financial results, business, operations, investments and
risks, please see BBX Capital’s Annual Report on Form 10-K for the
year ended December 31, 2018 and its Quarterly Report on Form 10-Q
for the quarter ended September 30, 2019, which will be available
on the SEC's website, https://www.sec.gov, and on BBX Capital’s
website, www.BBXCapital.com, upon filing with the SEC.
Non-GAAP Financial Measures: The
Company refers to certain non-GAAP financial measures in this press
release, including EBITDA, Adjusted EBITDA, System-wide Sales of
VOIs, and Free Cash Flow. Please see the supplemental tables herein
for how these terms are defined and for reconciliations of such
measures to the most comparable GAAP financial measures.
***
The following selected information relates to the operating
activities of Bluegreen Vacations, BBX Capital Real Estate, Renin,
and IT’SUGAR.
Bluegreen Vacations -
Selected Financial Data
Selected highlights of Bluegreen Vacations’ financial results
include:
Third Quarter 2019 Compared to Third Quarter
2018:
- Sales of Vacation Ownership Interests (“VOIs”) of $66.3 million
vs. $70.7 million
- System-wide sales of VOIs of $170.4 million vs. $173.3 million
(1)
- Other fee-based services revenue of $33.7 million vs. $31.1
million
- Income before income taxes of $30.4 million vs. $32.5
million
- Adjusted EBITDA of $37.0 million vs. $34.9 million (2)
- Free cash flow of $34.7 million vs. $13.3 million (3)
(1)
See the supplemental tables included in
this release for a reconciliation of Bluegreen’s Sales of VOIs to
System-wide sales of VOIs.
(2)
See the supplemental tables included in
this release for a reconciliation of Bluegreen’s net income to
Adjusted EBITDA.
(3)
See the supplemental tables included in
this release for a reconciliation of Bluegreen’s cash flow from
operating activities to free cash flow.
In addition to BBX Capital’s Annual Report on Form 10-K for the
year ended December 31, 2018, more complete and detailed
information regarding Bluegreen Vacations and its financial
results, business, operations, and risks can be found in Bluegreen
Vacations’ Annual Report on Form 10-K for the year ended December
31, 2018 and its Quarterly Report on Form 10-Q for the quarter
ended September 30, 2019, which are available to view on the SEC's
website, https://www.sec.gov, and on Bluegreen Vacations’ website,
www.BluegreenVacations.com.
BBX Capital Real
Estate - Selected Financial Data
Selected highlights of BBX Capital Real Estate’s (“BBXRE”)
financial results include:
Third Quarter 2019 Compared to Third Quarter
2018:
- Revenues of $1.1 million vs. $8.3 million
- Equity in net earnings of unconsolidated real estate joint
ventures of $28.5 million vs. $0.4 million
- Income before income taxes of $29.1 million vs. $1.9
million
BBXRE’s results for the quarter ended September 30, 2019 as
compared to the same 2018 period reflect an increase in equity in
earnings of unconsolidated joint ventures primarily due to the
Altis at Bonterra joint venture’s sale of its 314 unit multifamily
apartment community located in Hialeah, Florida. As a result of the
sale, BBXRE recognized $29.1 million of equity earnings and
received approximately $46.0 million of distributions from the
joint venture during the third quarter of 2019.
Renin - Selected
Financial Data
Selected highlights of Renin’s financial results include:
Third Quarter 2019 Compared to Third Quarter
2018:
- Trade sales of $16.4 million vs. $15.3 million
- Gross margin of $3.5 million vs. $3.0 million
- Gross margin percentage of 21.04% vs. 19.73%
- Income before income taxes of $479,000 vs. $693,000
- Adjusted EBITDA of $0.9 million vs $1.3 million (1)
(1)
See the supplemental tables included in
this release for a reconciliation of Renin’s net income to Adjusted
EBITDA.
Renin’s operating results for the quarter ended September 30,
2019 as compared to the same 2018 period reflect an increase in
trade sales due to higher sales volume from Renin’s retail channel
customers and an improvement in Renin’s gross margin percentage,
which reflects lower cost of manufactured products and a barn door
product promotion in 2018 that was not repeated in 2019, partially
offset by the impact of tariffs on products imported from China.
These improvements were offset by an increase in selling, general
and administrative expenses primarily due to consulting expenses
and higher employee compensation expenses associated with
performance bonuses.
IT’SUGAR- Selected
Financial Data
Selected highlights of IT’SUGAR’s financial results include:
Third Quarter 2019 Compared to Third Quarter
2018:
- Trade sales of $24.7 million vs. $22.7 million
- Gross margin of $10.8 million vs. $10.4 million
- Gross margin percentage of 43.67% vs. 46.01%
- Income before income taxes of $1.2 million vs. $1.6
million
- Adjusted EBITDA of $2.4 million vs $2.7 million (1)
(1)
See the supplemental tables included in
this release for a reconciliation of IT’SUGAR’s net income to
Adjusted EBITDA
IT'SUGAR's operating results for the quarter ended September 30,
2019 as compared to the same 2018 period reflect a net increase in
trade sales and gross margin primarily due to the opening of new
locations during the fourth quarter of 2018 and the first nine
months of 2019, including the FAO Schweetz location in New York
City and the Grand Bazaar location in Las Vegas. These increases
were offset by a net increase in selling, general, and
administrative expenses primarily due to expenses associated with
IT’SUGAR’s new locations, executive severance expense, and costs
related to the closure of certain store locations.
IT’SUGAR anticipates opening a 21,000 square foot, three-story
flagship location at American Dream, a three million square foot
shopping and entertainment complex in New Jersey, during the fourth
quarter of 2019.
Other
Investments
The Company also has other investments in various operating
businesses that generated aggregate losses before income taxes of
$6.3 million and $2.7 million during the three months ended
September 30, 2019 and 2018, respectively. The aggregate losses for
the three months ended September 30, 2019 includes $4.0 million of
impairment losses recognized in connection with the Company’s exit
of its operations as a franchisee of MOD Pizza restaurant locations
in Florida, as the Company terminated its area development and
franchise agreements with MOD Pizza, transferred seven of its
restaurant locations to MOD Pizza, and closed its remaining two
locations during the third quarter of 2019.
---
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, and IT’SUGAR. For
additional information, please visit www.BBXCapital.com.
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 popular
leisure and urban destinations. The Bluegreen Vacation Club is a
flexible, points-based vacation ownership plan with approximately
219,000 owners, 69 Club and Club Associate Resorts and access to
nearly 11,400 other hotels and resorts through partnerships and
exchange networks as of September 30, 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.
This press release contains forward-looking statements based
largely on current expectations of BBX Capital or its subsidiaries
that involve a number of risks and uncertainties. All opinions,
forecasts, projections, future plans or other statements, other
than statements of historical fact, are forward-looking statements.
Forward-looking statements may be identified by the use of words or
phrases such as “plans,” “believes,” “will,” “expects,”
“anticipates,” “intends,” “estimates,” “our view,” “we see,”
“would” and words and phrases of similar import. The
forward-looking statements in this press release are also
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended (the “Securities Act”), and
Section 21E of the Securities Exchange Act of 1934, as amended (the
“Exchange Act”). We can give no assurance that such expectations
will prove to have been correct. Actual results, performance, or
achievements could differ materially from those contemplated,
expressed, or implied by the forward-looking statements contained
herein. Forward-looking statements are subject to a number of risks
and uncertainties that are subject to change based on factors which
are, in many instances, beyond our control and the reader should
not place undue reliance on any forward-looking statement, which
speaks only as of the date made. This press release also contains
information regarding the past performance of the Company, its
subsidiaries and their respective investments and operations, and
the reader should note that prior or current performance is not a
guarantee or indication of future performance. Future results could
differ materially as a result of a variety of risks and
uncertainties. Some factors which may affect the accuracy of the
forward-looking statements apply generally to the industries in
which the Company operates, including the resort development and
vacation ownership industries in which Bluegreen operates, the
development, operation, management and investment in residential
and commercial real estate, the home improvement industry in which
Renin operates, and the sugar and confectionery industry in which
IT’SUGAR operates. Risks and uncertainties include, without
limitation, the risks and uncertainties affecting BBX Capital and
its subsidiaries, and their respective results, operations,
markets, products, services and business strategies, including
risks associated with the ability to successfully implement
currently anticipated plans and generate earnings, long term
growth, and increased value; the risk that BBX Capital’s efforts to
streamline its businesses and reduce losses may not be successful
or achieve the anticipated or desired benefits; the performance of
entities of which BBX Capital has acquired or in which it has made
investments may not be profitable or perform as anticipated; the
risk that BBX Capital is dependent upon dividends from its
subsidiaries, principally Bluegreen, to fund its operations and
that its subsidiaries may not be in a position to pay dividends at
current levels, if at all, dividend payments may be subject to
certain restrictions, including restrictions contained in debt
instruments, and may be subject to declaration by such subsidiary’s
board of directors or managers; the risks relating to acquisitions,
including acquisitions in diverse activities, including the risk
that they will not perform as expected and will adversely impact
the Company’s results; risks relating to the monetization of BBX
Capital’s legacy assets; and risks related to litigation and other
legal proceedings involving BBX Capital and its subsidiaries. The
Company’s investment in Bluegreen Vacations Corporation exposes the
Company to risks of Bluegreen’s business including risks relating
to its ability to increase VOI sales and profitability and risks
inherent in the vacation ownership industry, risks relating to its
operations, its relationships with its strategic partners and its
ability to successfully grow new marketing partnerships and
alliances, risks that Bluegreen’s marketing alliances will not
contribute to growth or be profitable, risks that the expansion of
the Bass Pro/Cabela’s marketing channels will not be successful or
occur as anticipated; as well as other risks relating to the
ownership of Bluegreen’s common stock, including those described in
Bluegreen’s Annual and Quarterly Reports filed with the SEC. In
addition, with respect to BBX Capital Real Estate, Renin, IT’SUGAR,
and its other investments in operating businesses, the risks and
uncertainties include risks relating to the real estate market and
real estate development, the risk that joint venture partners may
not fulfill their obligations and the projects may not be developed
as anticipated or be profitable, risks related to the concentration
of investments with the same joint venture partner, and the risk
that contractual commitments may not be completed on the terms
provided or at all; risks relating to acquisition and performance
of operating businesses, including integration risks, risks
regarding achieving profitability, foreign currency transaction
risk, goodwill and other intangible impairment risks, risks
relating to restructurings and restated charges, and the risk that
assets may be disposed of at a loss. Reference is also made to the
other risks and uncertainties described in BBX Capital’s Annual
Report on Form 10-K for the year ended December 31, 2018 and its
Quarterly Report on Form 10-Q for the quarter ended September 30,
2019, which will be available on the SEC's website,
https://www.sec.gov, and on BBX Capital’s website,
www.BBXCapital.com, upon filing with
the SEC. The Company cautions that the foregoing factors are not
exclusive, and that the reader should not place undue reliance on
any forward-looking statement, which speaks only as of the date
made.
The following supplemental table presents BBX Capital’s
Consolidating Statement of Operations (unaudited) for the three
months ended September 30, 2019 (in thousands):
Revenues:
Bluegreen
BBX Capital Real
Estate
Renin
IT'SUGAR
Other
Reconciling Items and
Eliminations
Segment Total
Sales of VOIs
$
66,318
-
-
-
-
-
66,318
Fee-based sales commissions
60,478
-
-
-
-
-
60,478
Other fee-based services
33,744
-
-
-
-
-
33,744
Cost reimbursements
21,111
-
-
-
-
-
21,111
Trade sales
-
-
16,442
24,678
6,541
(1)
47,660
Sales of real estate inventory
-
370
-
-
-
-
370
Interest income
22,081
166
-
-
45
(495)
21,797
Net gains on sales of real estate
assets
-
399
-
-
-
-
399
Other revenue
2,146
197
-
15
1,053
(174)
3,237
Total revenues
205,878
1,132
16,442
24,693
7,639
(670)
255,114
Costs and expenses:
Cost of VOIs sold
3,121
-
-
-
-
-
3,121
Cost of other fee-based services
23,746
-
-
-
-
-
23,746
Cost reimbursements
21,111
-
-
-
-
-
21,111
Cost of trade sales
-
-
12,983
13,902
4,976
(1)
31,860
Cost of real estate inventory sold
-
-
-
-
-
-
-
Interest expense
10,388
-
131
24
29
1,298
11,870
Recoveries from loan losses, net
-
(1,821)
-
-
-
-
(1,821)
Impairment losses
-
37
-
-
3,993
-
4,030
Selling, general and administrative
expenses
117,159
2,336
2,849
9,567
4,900
11,738
148,549
Total costs and expenses
175,525
552
15,963
23,493
13,898
13,035
242,466
Equity in net earnings of unconsolidated
real estate joint ventures
-
28,534
-
-
-
-
28,534
Foreign exchange gain (loss)
-
-
-
-
-
-
-
Income (loss) before income
taxes
$
30,353
29,114
479
1,200
(6,259)
(13,705)
41,182
The following supplemental table presents BBX Capital’s
Consolidating Statement of Operations (unaudited) for the three
months ended September 30, 2018 (in thousands):
Bluegreen
BBX Capital Real
Estate
Renin
IT'SUGAR
Other
Reconciling Items and
Eliminations
Segment Total
Revenues:
Sales of VOIs
$
70,698
-
-
-
-
-
70,698
Fee-based sales commissions
61,641
-
-
-
-
-
61,641
Other fee-based services
31,057
-
-
-
-
-
31,057
Cost reimbursements
16,900
-
-
-
-
-
16,900
Trade sales
-
-
15,330
22,663
5,815
(5)
43,803
Sales of real estate inventory
-
7,478
-
-
-
-
7,478
Interest income
21,531
229
-
-
10
(613)
21,157
Other revenue
378
572
-
99
840
(220)
1,669
Total revenues
202,205
8,279
15,330
22,762
6,665
(838)
254,403
Costs and expenses:
Cost of VOIs sold
11,237
-
-
-
-
-
11,237
Cost of other fee-based services
19,937
-
-
-
-
-
19,937
Cost reimbursements
16,900
-
-
-
-
-
16,900
Cost of trade sales
-
-
12,306
12,236
4,420
(5)
28,957
Cost of real estate inventory sold
-
4,655
-
-
-
-
4,655
Interest expense
9,208
-
157
-
53
1,712
11,130
Recoveries from loan losses, net
-
(443)
-
-
-
-
(443)
Impairment losses
-
193
-
-
-
-
193
Selling, general and administrative
expenses
112,407
2,307
2,250
8,962
4,868
12,765
143,559
Total costs and expenses
169,689
6,712
14,713
21,198
9,341
14,472
236,125
Equity in net earnings of unconsolidated
real estate joint ventures
-
373
-
-
-
-
373
Foreign exchange gain
-
-
76
-
-
-
76
Income (loss) before income
taxes
$
32,516
1,940
693
1,564
(2,676)
(15,310)
18,727
The following supplemental table presents BBX Capital’s
Consolidating Statement of Operations (unaudited) for the nine
months ended September 30, 2019 (in thousands):
Bluegreen
BBX| Capital Real
Estate
Renin
IT'SUGAR
Other
Reconciling Items and
Eliminations
Segment Total
Revenues:
Sales of VOIs
$
186,351
-
-
-
-
-
186,351
Fee-based sales commissions
161,033
-
-
-
-
-
161,033
Other fee-based services
94,015
-
-
-
-
-
94,015
Cost reimbursements
58,705
-
-
-
-
-
58,705
Trade sales
-
-
51,124
63,347
24,250
(16)
138,705
Sales of real estate inventory
-
5,030
-
-
-
-
5,030
Interest income
65,964
631
-
-
130
(1,995)
64,730
Net gains on sales of real estate
assets
-
11,395
-
-
-
-
11,395
Other revenue
4,228
1,492
152
241
2,020
(593)
7,540
Total revenues
570,296
18,548
51,276
63,588
26,400
(2,604)
727,504
Costs and expenses:
Cost of VOIs sold
17,541
-
-
-
-
-
17,541
Cost of other fee-based services
66,538
-
-
-
-
-
66,538
Cost reimbursements
58,705
-
-
-
-
-
58,705
Cost of trade sales
-
-
40,989
37,442
16,563
(16)
94,978
Cost of real estate inventory sold
-
2,643
-
-
-
-
2,643
Interest expense
29,955
-
387
81
72
4,184
34,679
Recoveries from loan losses, net
-
(4,206)
-
-
-
-
(4,206)
Impairment losses
-
37
-
-
6,749
-
6,786
Selling, general and administrative
expenses
355,041
6,709
8,326
26,645
16,061
35,728
448,510
Total costs and expenses
527,780
5,183
49,702
64,168
39,445
39,896
726,174
Equity in net earnings of unconsolidated
real estate joint ventures
-
37,276
-
-
-
-
37,276
Foreign exchange loss
-
-
(24)
-
-
-
(24)
Income (loss) before income
taxes
$
42,516
50,641
1,550
(580)
(13,045)
(42,500)
38,582
The following supplemental table presents BBX Capital’s
Consolidating Statement of Operations (unaudited) for the nine
months ended September 30, 2018 (in thousands):
Bluegreen
BBX Capital Real
Estate
Renin
IT'SUGAR
Other
Reconciling Items and
Eliminations
Segment Total
Revenues:
Sales of VOIs
$
195,412
-
-
-
-
-
195,412
Fee-based sales commissions
167,581
-
-
-
-
-
167,581
Other fee-based services
89,472
-
-
-
-
-
89,472
Cost reimbursements
47,157
-
-
-
-
-
47,157
Trade sales
-
-
47,205
58,967
19,954
(12)
126,114
Sales of real estate inventory
-
17,138
-
-
-
-
17,138
Interest income
63,771
2,064
-
1
105
(2,203)
63,738
Net gains on sales of real estate
assets
-
4,802
-
-
-
-
4,802
Other revenue
1,269
2,020
-
134
1,455
(600)
4,278
Total revenues
564,662
26,024
47,205
59,102
21,514
(2,815)
715,692
Costs and expenses:
Cost of VOIs sold
19,838
-
-
-
-
-
19,838
Cost of other fee-based services
53,983
-
-
-
-
-
53,983
Cost reimbursements
47,157
-
-
-
-
-
47,157
Cost of trade sales
-
-
38,454
34,020
15,583
(12)
88,045
Cost of real estate inventory sold
-
11,283
-
-
-
-
11,283
Interest expense
25,470
-
497
-
241
4,661
30,869
Recoveries from loan losses, net
-
(7,258)
-
-
-
-
(7,258)
Impairment losses
-
362
-
-
187
-
549
Selling, general and administrative
expenses
315,535
7,175
7,641
25,559
16,541
37,908
410,359
Total costs and expenses
461,983
11,562
46,592
59,579
32,552
42,557
654,825
Equity in net earnings of unconsolidated
real estate joint ventures
-
1,165
-
-
-
-
1,165
Foreign exchange gain
-
-
91
-
-
-
91
Income (loss) before income
taxes
$
102,679
15,627
704
(477)
(11,038)
(45,372)
62,123
The following supplemental table presents Bluegreen’s
System-wide sales of VOIs(1) and a reconciliation of Bluegreen’s
Sales of VOIs to its System-wide sales of VOIs (unaudited) (in
thousands):
For the Three Months
Ended
For the Nine Months
Ended
September 30,
September 30,
2019
2018
2019
2018
Sales of VOIs
$
66,318
70,698
186,351
195,412
Provision for loan losses
16,411
14,453
39,483
35,926
Gross Sales of VOI's
82,729
85,151
225,834
231,338
Plus: Fee-based sales
87,646
88,155
237,793
246,773
System-wide sales of VOIs, net
$
170,375
173,306
463,627
478,111
(1)
System-wide Sales of VOIs is a non-GAAP
measure and represents all sales of VOIs, whether owned by
Bluegreen or a third party immediately prior to the sale. Sales of
VOIs owned by third parties are transacted as sales of VOIs in
Bluegreen’s Vacation Club through the same selling and marketing
process it uses to sell its VOI inventory. Bluegreen considers
system-wide sales of VOIs to be an important operating measure
because it reflects all sales of VOIs by its sales and marketing
operations without regard to whether Bluegreen or a third party
owned such VOI inventory at the time of sale. System-wide sales of
VOIs should not be considered as an alternative to sales of VOIs or
any other measure of financial performance derived in accordance
with GAAP or to any other method of analyzing results as reported
under GAAP.
The following supplemental table presents BBX Capital’s free
cash flow (1) and a reconciliation of cash flow from operating
activities to free cash flow (unaudited) (in thousands):
For the Three Months
Ended
For the Nine Months
Ended
September 30,
September 30,
2019
2018
2019
2018
Cash flow from operating activities
$
58,100
30,958
60,394
43,587
Capital expenditures for property and
equipment
(8,042)
(13,243)
(26,286)
(33,316)
Free cash flow
$
50,058
17,715
34,108
10,271
The following supplemental table presents Bluegreen’s free cash
flow (1) and a reconciliation of Bluegreen’s cash flows from
operating activities to its free cash flow (unaudited) (in
thousands):
For the Three Months
Ended
For the Nine Months
Ended
September 30,
September 30,
2019
2018
2019
2018
Cash flow from operating activities
$
38,713
22,527
50,325
45,742
Capital expenditures for property and
equipment
(3,986)
(9,242)
(18,502)
(24,347)
Free cash flow
$
34,727
13,285
31,823
21,395
(1)
Free cash flow is a non-GAAP measure and
is defined as cash provided by operating activities less capital
expenditures for property and equipment. The Company and Bluegreen
focus on the generation of free cash flow. The Company considers
free cash flow to be a useful supplemental measure of the Company’s
and Bluegreen’s ability to generate cash flow from operations and
is a supplemental measure of liquidity. Free cash flow should not
be considered as an alternative to cash flow from operating
activities as a measure of its liquidity. The Company's computation
of free cash flow may differ from the methodology utilized by other
companies. Investors are cautioned that the items excluded from
free cash flow are a significant component in understanding and
assessing the Company’s financial performance.
The following supplemental table presents Bluegreen’s EBITDA and
Adjusted EBITDA(1) and a reconciliation of Bluegreen’s net income
to its EBITDA and Adjusted EBITDA (unaudited) (in thousands):
For the Three Months
Ended
For the Nine Months
Ended
September 30,
September 30,
2019
2018
2019
2018
Net income
$
22,575
24,073
33,392
77,682
Provision for income taxes
7,778
8,443
9,124
24,997
Income before income taxes
30,353
32,516
42,516
102,679
Add/(less):
Interest income (other than interest
earned on VOI
notes receivable)
(1,799)
(1,407)
(5,437)
(4,222)
Interest expense (other than interest
incurred on debt that is
secured by VOI notes receivable
5,326
4,207
14,564
11,136
Franchise taxes
112
56
171
180
Depreciation and amortization
3,585
3,169
10,453
9,087
Bluegreen EBITDA
37,577
38,541
62,267
118,860
EBITDA attributable to the noncontrolling
interest
in Bluegreen/Big Cedar Vacations
(2,364)
(3,637)
(9,339)
(9,521)
(Gain) loss on assets held-for-sale
(166)
18
(2,146)
9
Bass Pro Settlement
-
-
39,121
-
Severance
1,924
-
1,924
751
Adjusted EBITDA
$
36,971
34,922
91,827
110,099
(1)
Bluegreen’s EBITDA is defined as earnings
or net income, before taking into account interest income
(excluding interest earned on VOI notes receivable), interest
expense (excluding interest expense incurred on financings related
to Bluegreen’s receivable-backed notes payable), income and
franchise taxes, and depreciation and amortization. For purposes of
the EBITDA calculation, no adjustments were made for interest
income earned on Bluegreen’s VOI notes receivable or the interest
expense incurred on debt that is secured by such notes receivable
because they are both considered to be part of the operations of
Bluegreen’s business.
Bluegreen’s Adjusted EBITDA is defined as
EBITDA adjusted for amounts attributable to noncontrolling interest
in Bluegreen/Big Cedar Vacations (in which Bluegreen has a 51%
equity interest) and items that the Company believes are not
representative of ongoing operating results. Accordingly, amounts
paid, accrued, or incurred in connection with the Bass Pro
settlement in June 2019 were excluded in the computation of
Adjusted EBITDA for the nine months ended September 30, 2019.
The Company considers Bluegreen’s EBITDA
and Adjusted EBITDA to be an indicator of Bluegreen’s operating
performance, and they are used to measure Bluegreen’s ability to
service debt, fund capital expenditures and expand its business.
EBITDA is also used by companies, lenders, investors and others
because it excludes certain items that can vary widely across
different industries or among companies within the same industry.
For example, interest expense can be dependent on a company’s
capital structure, debt levels and credit ratings. Accordingly, the
impact of interest expense on earnings can vary significantly among
companies. Additionally, the tax positions of companies can also
vary because of their differing abilities to take advantage of tax
benefits and because of the tax policies of the jurisdictions in
which they operate. As a result, effective tax rates and provision
for income taxes can vary considerably among companies. EBITDA also
excludes depreciation and amortization because companies utilize
productive assets of different ages and use different methods of
both acquiring and depreciating productive assets. These
differences can result in considerable variability in the relative
costs of productive assets and the related depreciation and
amortization expense among companies.
The Company considers Bluegreen’s Adjusted
EBITDA to be a useful supplemental measure of Bluegreen’s operating
performance that facilitates the comparability of historical
financial periods.
EBITDA and Adjusted EBITDA should not be
considered as an alternative to net income as an indicator of
Bluegreen's financial performance or as an alternative to cash flow
from operating activities as a measure of its liquidity. The
Company's computation of Bluegreen’s EBITDA and Adjusted EBITDA may
differ from the methodology utilized by other companies. Investors
are cautioned that items excluded from EBITDA and Adjusted EBITDA
are significant components in understanding and assessing
Bluegreen’s financial performance.
The following supplemental table presents Renin’s EBITDA and
Adjusted EBITDA (1) and a reconciliation of Renin’s net income to
its EBITDA and Adjusted EBITDA (unaudited) (in thousands):
For the Three Months
Ended
For the Nine Months
Ended
September 30,
September 30,
2019
2018
2019
2018
Net income from Renin
$
249
518
$
879
529
Provision from income taxes
230
175
671
175
Income before income taxes
479
693
1,550
704
Add:
Interest expense
131
157
387
497
Depreciation and amortization
303
492
1,034
1,486
EBITDA
913
1,342
2,971
2,687
Foreign exchange (gain) loss
-
(76)
24
(91)
Adjusted EBITDA
$
913
1,266
$
2,995
2,596
(1)
Renin’s EBITDA is defined as its earnings,
or net income, before taking into account interest expense, income
taxes, and depreciation and amortization, including the
amortization of product displays provided to customers for
marketing purposes that are presented as a reduction of trade sales
under GAAP. Renin’s Adjusted EBITDA is defined as EBITDA adjusted
for foreign exchange gains and losses, as exchange rates may vary
significantly among companies.
The Company considers Renin’s EBITDA and
Adjusted EBITDA to be an indicator of Renin’s operating
performance, and they are used to measure Renin’s ability to
service debt, fund capital expenditures and expand its business.
EBITDA is also used by companies, lenders, investors and others
because it excludes certain items that can vary widely across
different industries or among companies within the same
industry.
The Company considers Renin’s Adjusted
EBITDA to be a useful supplemental measure of Renin’s operating
performance that facilitates the comparability of historical
financial periods.
EBITDA and Adjusted EBITDA should not be
considered as an alternative to net income as an indicator of
Renin’s financial performance or as an alternative to cash flow
from operating activities as a measure of its liquidity. The
Company’s computation of Renin’s EBITDA and Adjusted EBITDA may
differ from the methodology utilized by other companies, and
investors are cautioned that items excluded from EBITDA and
Adjusted EBITDA are significant components in understanding and
assessing Renin’s financial performance.
The following supplemental table presents IT’SUGAR’s EBITDA and
Adjusted EBITDA (1) and a reconciliation of IT’SUGAR’s net income
(loss) to its EBITDA and Adjusted EBITDA (unaudited) (in
thousands):
For the Three Months
Ended
For the Nine Months
Ended
September 30,
September 30,
2019
2018
2019
2018
Net income (loss) from IT'SUGAR
$
1,200
1,564
$
(580)
(477)
Provision from income taxes
-
-
-
-
Income (loss) before income taxes
1,200
1,564
(580)
(477)
Add/(less):
Interest income
-
-
-
(1)
Interest expense
24
-
81
-
Depreciation and amortization
1,181
1,153
3,313
3,327
EBITDA and Adjusted EBITDA
$
2,405
2,717
2,814
2,849
(1)
IT’SUGAR’s EBITDA is defined as earnings
or net income, before taking into account interest income, interest
expense and depreciation and amortization.
The Company considers IT’SUGAR’s EBITDA
and Adjusted EBITDA to be an indicator of IT’SUGAR’s operating
performance, and they are used to measure IT’SUGAR’s ability to
service debt, fund capital expenditures and expand its business.
EBITDA is also used by companies, lenders, investors and others
because it excludes certain items that can vary widely across
different industries or among companies within the same
industry.
The Company considers IT’SUGAR’s Adjusted
EBITDA to be a useful supplemental measure of IT’SUGAR’s operating
performance that facilitates the comparability of historical
financial periods.
EBITDA and Adjusted EBITDA should not be
considered as an alternative to net income as an indicator of
IT’SUGAR’s financial performance or as an alternative to cash flow
from operating activities as a measure of its liquidity. The
Company’s computation of IT’SUGAR’s EBITDA and Adjusted EBITDA may
differ from the methodology utilized by other companies, and
investors are cautioned that items excluded from EBITDA and
Adjusted EBITDA are significant components in understanding and
assessing IT’SUGAR’s financial performance.
The following supplemental table presents BBX Capital’s EBITDA
and Adjusted EBITDA (1) and a reconciliation of BBX Capital’s net
income to its EBITDA and Adjusted EBITDA (unaudited) (in
thousands):
For the Three Months
Ended
For the Nine Months
Ended
September 30,
September 30,
2019
2018
2019
2018
Net income
$
26,500
11,985
23,514
40,126
Provision for income taxes
14,682
6,742
15,068
21,997
Income before income taxes
41,182
18,727
38,582
62,123
Add/(less):
Interest income (other than interest
earned on VOI
notes receivable)
(1,515)
(1,033)
(4,203)
(4,189)
Interest expense (other than interest
incurred on debt that is
secured by VOI notes receivable)
11,870
11,130
34,679
30,869
Interest expense on receivable-backed
debt
(5,062)
(5,001)
(15,391)
(14,334)
Franchise taxes
112
56
171
180
Depreciation and amortization
5,884
5,657
17,102
16,015
EBITDA
52,471
29,536
70,940
90,664
EBITDA attributable to non-controlling
interests
(6,131)
(7,356)
(18,370)
(20,702)
(Gain) loss on assets held-for-sale
(166)
18
(2,146)
9
Foreign exchange (gain) loss
-
(76)
24
(91)
Corporate realignment costs
-
-
-
2,067
Impairment losses - MOD Pizza
3,993
-
6,749
-
Severance
1,924
-
1,924
751
Bass Pro Settlement
-
-
39,121
-
Adjusted EBITDA
$
52,091
22,122
98,242
72,698
(1)
BBX Capital’s EBITDA is defined as
earnings or net income, before taking into account interest income
(excluding interest earned on VOI notes receivable), interest
expense (excluding interest expense incurred on financings related
to Bluegreen’s receivable-backed notes payable), income and
franchise taxes, and depreciation and amortization. For purposes of
the EBITDA calculation, no adjustments were made for interest
income earned on Bluegreen’s VOI notes receivable or the interest
expense incurred on debt that is secured by such notes receivable
because they are both considered to be part of the operations of
Bluegreen’s business.
BBX Capital’s Adjusted EBITDA is defined
as EBITDA adjusted for amounts attributable to noncontrolling
interest in Bluegreen and Bluegreen/Big Cedar Vacations (in which
Bluegreen has a 51% equity interest) and items that BBX Capital
believes are not representative of ongoing operating results,
including restructuring charges and goodwill impairment losses.
Accordingly, amounts paid, accrued, or incurred in connection with
the Bass Pro settlement in June 2019, as well as impairments of
property and equipment and intangible assets related to the
Company’s MOD Pizza restaurant locations, were excluded in the
computation of Adjusted EBITDA in the applicable 2019 periods.
BBX Capital considers EBITDA and Adjusted
EBITDA to be an indicator of BBX Capital’s operating performance,
and they are used to measure BBX Capital’s ability to service debt,
fund capital expenditures and expand its business. EBITDA is also
used by companies, lenders, investors and others because it
excludes certain items that can vary widely across different
industries or among companies within the same industry. For
example, interest expense can be dependent on a company’s capital
structure, debt levels and credit ratings. Accordingly, the impact
of interest expense on earnings can vary significantly among
companies. Additionally, the tax positions of companies can also
vary because of their differing abilities to take advantage of tax
benefits and because of the tax policies of the jurisdictions in
which they operate. As a result, effective tax rates and provision
for income taxes can vary considerably among companies. EBITDA also
excludes depreciation and amortization because companies utilize
productive assets of different ages and use different methods of
both acquiring and depreciating productive assets. These
differences can result in considerable variability in the relative
costs of productive assets and the related depreciation and
amortization expense among companies.
BBX Capital considers Adjusted EBITDA to
be a useful supplemental measure of its operating performance that
facilitates the comparability of historical financial periods.
EBITDA and Adjusted EBITDA should not be
considered as an alternative to net income as an indicator of BBX
Capital’s financial performance or as an alternative to cash flow
from operating activities as a measure of its liquidity. BBX
Capital’s EBITDA and Adjusted EBITDA may differ from the
methodology utilized by other companies. Investors are cautioned
that items excluded from EBITDA and Adjusted EBITDA are significant
components in understanding and assessing BBX Capital’s financial
performance.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191101005055/en/
BBX Capital Corporation Contact
Info: Investor Relations:
Leo Hinkley, Managing Director, Investor Relations Officer
954-940-5300, Email: LHinkley@BBXCapital.com Media Relations Contacts: Kip Hunter Marketing, 954-765-1329, Nicole Lewis
/ Shannon O’Malley Email: nicole@kiphuntermarketing.com,
shannon@kiphuntermarketing.com
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