BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB) (“BBX
Capital” or the “Company”) reported today its financial results for
the quarter and year ended December 31, 2019.
Selected highlights of BBX Capital’s consolidated financial
results include:
Fourth Quarter 2019 Compared to Fourth
Quarter 2018:
- Total consolidated revenues of $234.2 million vs. $231.8
million
- Net income attributable to shareholders of $5.5 million vs.
$11.3 million
- Diluted earnings per share of $0.06 vs. $0.12
- Free cash flow of $8.5 million vs. $30.8 million
- Adjusted EBITDA of $25.0 million vs. $36.6 million
Year Ended December 31, 2019 Compared to the
Year Ended December 31, 2018:
- Total consolidated revenues of $946.9 million vs. $945.9
million
- Net income attributable to shareholders of $17.7 million vs.
$35.1 million
- Diluted earnings per share of $0.19 vs. $0.36
- Free cash flow of $42.7 million vs. $41.1 million
- Adjusted EBITDA of $123.3 million vs. $109.3 million
Balance Sheet as of December 31, 2019
Compared to December 31, 2018:
- Total consolidated assets of $1.8 billion vs. $1.7 billion
- Total shareholders' equity of $549.8 million vs. $549.6
million
- Fully diluted book value per share of $5.84 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 and unvested restricted stock awards outstanding as
of period end.
During the quarter ended December 31, 2019, the Company
repurchased approximately 1.4 million shares of its Class A Common
Stock for $6.6 million pursuant to the share repurchase program
approved by the Company’s Board of Directors in June 2017. As of
December 31, 2019, the Company had repurchased approximately 4.8
million shares of its Class A Common Stock for $25.4 million under
the June 2017 repurchase program.
“The results for the fourth quarter and full year 2019 reflect
BBX Capital’s focus on its strategic initiatives and objective of
achieving long-term growth,” commented Alan B. Levan, Chairman and
Chief Executive Officer of BBX Capital Corporation. “While
Bluegreen’s results in 2019 were negatively impacted by issues
associated with our relationship with Bass Pro, we are pleased that
Bluegreen and Bass Pro were able to resume building on their very
successful 20-year partnership, as reflected in Bluegreen’s entry
into 15 Cabela’s retail stores as of December 31, 2019. BBX Capital
Real Estate unlocked intrinsic value through the monetization of
investments in its portfolio, including its Altis at Bonterra joint
venture, and continues to be focused on expanding its pipeline of
investment opportunities in multifamily apartment and residential
housing communities. Renin continued to seek to diversify its
customer base while navigating the complexities associated with
tariffs on Chinese produced goods. IT’SUGAR grew its
‘retail-tainment’ branded stores with the recent opening of its
newest flagship store at American Dream in New Jersey.
“Since many of our 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. One of our goals is to streamline our business verticals so
that our business model can be more easily analyzed and followed by
the markets. To this end, we plan to continue to review the
performance of our assets and investments and consider transactions
involving the sale, disposition, or spin-off of assets,
investments, or subsidiaries,” Levan concluded.
Issues arising as a consequence of the coronavirus outbreak have
resulted in uncertainties for our operations and results moving
forward. See “Forward-Looking Statements” below.
Additional Information
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, 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, which is expected to
occur no later than March 16, 2020.
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.
Financial Results
The following selected information relates to the financial
results of Bluegreen Vacations, BBX Capital Real Estate, BBX Sweet
Holdings, and Renin.
Bluegreen Vacations -
Selected Financial Data
Selected highlights of Bluegreen Vacations’ financial results
include:
Fourth Quarter 2019 Compared to Fourth
Quarter 2018:
- Sales of Vacation Ownership Interests (“VOIs”) of $69.0 million
vs. $58.8 million
- System-wide sales of VOIs of $155.5 million vs. $146.0
million
- Fee-based sales commissions of $46.8 million vs. $48.8
million
- Other fee-based services revenue of $31.2 million vs. $28.6
million
- Income before income taxes of $15.7 million vs. $26.2
million
- Adjusted EBITDA of $30.0 million vs. $31.7 million
- Free cash flow of $14.3 million vs. $22.9 million
Year Ended December 31, 2019 Compared to the
Year Ended December 31, 2018:
- Sales of VOIs of $255.4 million vs. $254.2 million
- System-wide sales of VOIs of $619.1 million vs. $624.1
million
- Fee-based sales commissions of $207.8 million vs. $216.4
million
- Other fee-based services revenue of $125.2 million vs. $118.0
million
- Income before income taxes of $58.3 million vs. $128.9
million
- Adjusted EBITDA of $121.8 million vs. $141.8 million
- Free cash flow of $46.1 million vs. $44.3 million
In addition to BBX Capital’s Annual Report on Form 10-K for the
year ended December 31, 2019, 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, 2019, which will be available on the SEC's website,
https://www.sec.gov, and on Bluegreen Vacations’ website,
www.BluegreenVacations.com, upon filing with the SEC, which is
expected to occur no later than March 16, 2020.
BBX Capital Real
Estate - Selected Financial Data
Selected highlights of BBX Capital Real Estate’s (“BBXRE”)
financial results include:
Fourth Quarter 2019 Compared to Fourth
Quarter 2018:
- Revenues of $2.7 million vs. $5.2 million
- Equity in net earnings of unconsolidated real estate joint
ventures of $0.6 million vs. $13.0 million
- Income before income taxes of $2.1 million vs. $14.6
million
Year Ended December 31, 2019 Compared to the
Year Ended December 31, 2018:
- Revenues of $21.0 million vs. $31.2 million
- Equity in net earnings of unconsolidated real estate joint
ventures of $37.9 million vs. $14.2 million
- Income before income taxes of $52.7 million vs. $30.2
million
BBXRE’s operating results for the quarter ended December 31,
2019 as compared to the same 2018 period primarily reflects the
timing of sales activity in BBXRE’s portfolio, as the 2018 period
included the impact of significant gains recognized upon the sale
of multifamily apartment communities by two unconsolidated joint
ventures.
BBX Sweet Holdings-
Selected Financial Data
Selected highlights of BBX Sweet Holding’s (“BBXSH”) financial
results include:
Fourth Quarter 2019 Compared to Fourth
Quarter 2018:
- Trade sales of $29.4 million vs. $28.7 million
- Gross margin of $10.5 million vs. $9.6 million
- Gross margin percentage of 35.8% vs. 33.5%
- Loss before income taxes of $(0.8) million vs. $(6.4)
million
- Adjusted EBITDA of $0.6 million vs $(0.7) million
Year Ended December 31, 2019 Compared to the
Year Ended December 31, 2018:
- Trade sales of $105.4 million vs. $101.2 million
- Gross margin of $37.7 million vs. $35.4 million
- Gross margin percentage of 35.8% vs. 34.9%
- Loss before income taxes of $(5.1) million vs. $(15.0)
million
- Adjusted EBITDA of $0.5 million vs. $(2.9) million
BBX Sweet Holdings (“BBXSH”) is engaged in the ownership and
management of operating businesses in the confectionery industry,
including IT’SUGAR, Hoffman’s Chocolates, and Las Olas Confections
and Snacks. BBXSH’s operating results for the quarter ended
December 31, 2019 as compared to the same 2018 period reflect an
increase in trade sales and improved gross margin primarily related
to increased sales at IT’SUGAR, including sales from its new
locations that were opened in 2019, improvements in efficiencies at
BBXSH’s manufacturing facility in Orlando, and lower selling,
general, and administrative expenses as a result of cost reduction
initiatives. In addition, BBXSH’s loss before income taxes in the
2018 period included a $4.0 million goodwill impairment loss
associated with a subsidiary in the wholesale confection
business.
In December 2019, IT’SUGAR opened its 22,000 square foot,
three-story candy department store at American Dream, a 3 million
square foot shopping and entertainment complex in New Jersey.
Renin - Selected
Financial Data
Selected highlights of Renin’s financial results include:
Fourth Quarter 2019 Compared to Fourth
Quarter 2018:
- Trade sales of $16.4 million vs. $21.2 million
- Gross margin of $3.2 million vs. $4.2 million
- Gross margin percentage of 19.2% vs. 19.7%
- Income before income taxes of $0.3 million vs. $1.8
million
- Adjusted EBITDA of $0.7 million vs $2.4 million
Year Ended December 31, 2019 Compared to the
Year Ended December 31, 2018:
- Trade sales of $67.5 million vs. $68.4 million
- Gross margin of $13.3 million vs. $12.9 million
- Gross margin percentage of 19.7% vs. 18.9%
- Income before income taxes of $1.8 million vs. $2.5
million
- Adjusted EBITDA of $3.7 million vs $5.0 million
Renin’s operating results for the quarter ended December 31,
2019 as compared to the same 2018 period primarily reflect a
decrease in trade sales in 2019 due to lower sales volume from
Renin’s retail channel customers. The 2018 period included a
holiday promotion with a customer that was not repeated in 2019 and
a new customer program that is in less stores in 2019. Renin’s
operating results in 2019 were also impacted by a decline in gross
margin percentage primarily resulting from tariffs on imported
product and higher selling, general and administrative expenses
primarily due the recognition of severance expenses and higher
employee compensation expense associated with performance
bonuses.
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, BBX Sweet Holdings, and
Renin. 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 and manages resorts in popular leisure
and urban destinations. The Bluegreen Vacation Club is a flexible,
points-based vacation ownership plan with approximately 220,000
owners, 68 Club and Club Associate Resorts, and access to nearly
11,350 other hotels and resorts through partnerships and exchange
networks as of December 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.
Forward-Looking
Statements
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
residential and commercial real estate industry in which BBXRE
operates, the sugar and confectionery industry in which BBX Sweet
Holdings operates, and the home improvement industry in which Renin
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 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, BBX Sweet Holdings, Renin, 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. In addition, the recent coronavirus could
cause disruptions in our supply chain, decreased demand for
products, declines in leisure travel and traffic at retail
locations, impact the availability of credit, or otherwise
adversely impact our financial condition and operations results.
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, 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 December 31, 2019 (in thousands):
Revenues:
Bluegreen
BBX
Capital
Real Estate
BBX Sweet
Holdings
Renin
Other
Reconciling
Items and
Eliminations
Segment
Total
Sales of VOIs
$
69,024
—
—
—
—
—
69,024
Fee-based sales commissions
46,799
—
—
—
—
—
46,799
Other fee-based services
31,229
—
—
—
—
—
31,229
Cost reimbursements
14,956
—
—
—
—
—
14,956
Trade sales
—
—
29,367
16,413
1,862
(10)
47,632
Sales of real estate inventory
—
19
—
—
—
—
19
Interest income
21,938
119
14
—
16
(491)
21,596
Net gains on sales of real estate
assets
—
2,221
—
—
—
—
2,221
Other revenue
—
298
114
—
482
(157)
737
Total revenues
183,946
2,657
29,495
16,413
2,360
(658)
234,213
Costs and expenses:
Cost of VOIs sold
4,304
—
—
—
—
—
4,304
Cost of other fee-based services
20,402
—
—
—
—
—
20,402
Cost reimbursements
14,956
—
—
—
—
—
14,956
Cost of trade sales
—
—
18,841
13,254
657
(10)
32,742
Cost of real estate inventory sold
—
—
—
—
—
—
—
Interest expense
9,583
—
54
111
16
1,339
11,103
Recoveries from loan losses, net
—
(1,222)
—
—
—
—
(1,222)
Impairment losses
—
10
142
—
—
—
152
Selling, general and
administrative expenses
113,815
2,435
11,343
2,740
1,436
5,407
137,176
Total costs and expenses
163,060
1,223
30,380
16,105
2,109
6,736
219,613
Equity in net earnings of
unconsolidated real estate joint
ventures
—
622
—
—
—
—
622
Other (expense) income
(5,138)
(1)
44
—
7
96
(4,992)
Foreign exchange loss
—
—
—
(51)
—
—
(51)
Income (loss) before income
taxes
$
15,748
2,055
(841)
257
258
(7,298)
10,179
The following supplemental table presents BBX Capital’s
Consolidating Statement of Operations (unaudited) for the three
months ended December 31, 2018 (in thousands):
Bluegreen
BBX
Capital
Real
Estate
BBX
Sweet
Holdings
Renin
Other
Reconciling
Items and
Eliminations
Segment
Total
Revenues:
Sales of VOIs
$
58,813
—
—
—
—
—
58,813
Fee-based sales commissions
48,841
—
—
—
—
—
48,841
Other fee-based services
28,552
—
—
—
—
—
28,552
Cost reimbursements
15,375
—
—
—
—
—
15,375
Trade sales
—
—
28,745
21,212
3,424
(9)
53,372
Sales of real estate inventory
—
4,633
—
—
—
—
4,633
Interest income
22,143
213
14
—
27
(634)
21,763
Net losses on sales of real estate
assets
—
(231)
—
—
—
—
(231)
Other revenue (expense)
—
589
(5)
—
424
(282)
726
Total revenues
173,724
5,204
28,754
21,212
3,875
(925)
231,844
Costs and expenses:
Cost of VOIs sold
3,975
—
—
—
—
—
3,975
Cost of other fee-based services
18,986
—
—
—
—
—
18,986
Cost reimbursements
15,375
—
—
—
—
—
15,375
Cost of trade sales
—
—
19,122
17,029
1,453
(9)
37,595
Cost of real estate inventory sold
—
2,833
—
—
—
—
2,833
Interest expense
9,239
—
70
141
3
1,752
11,205
Recoveries from loan losses, net
—
(1,394)
—
—
—
—
(1,394)
Impairment losses
—
209
3,960
—
—
—
4,169
Reimbursements of litigation costs
and penalty
—
—
—
—
—
(600)
(600)
Selling, general and administrative
expenses
99,867
2,047
12,024
2,262
3,681
7,594
127,475
Total costs and expenses
147,442
3,695
35,176
19,432
5,137
8,737
219,619
Equity in net earnings of
unconsolidated real estate joint
ventures
—
13,029
—
—
—
—
13,029
Other (expense) income
(68)
39
24
—
9
74
78
Foreign exchange loss
—
—
—
(23)
—
—
(23)
Income (loss) before income
taxes
$
26,214
14,577
(6,398)
1,757
(1,253)
(9,588)
25,309
The following supplemental table presents BBX Capital’s
Consolidating Statement of Operations (unaudited) for the year
ended December 31, 2019 (in thousands):
Bluegreen
BBX
Capital
Real
Estate
BBX Sweet
Holdings
Renin
Other
Reconciling
Items and
Eliminations
Segment
Total
Revenues:
Sales of VOIs
$
255,375
—
—
—
—
—
255,375
Fee-based sales commissions
207,832
—
—
—
—
—
207,832
Other fee-based services
125,244
—
—
—
—
—
125,244
Cost reimbursements
63,889
—
—
—
—
—
63,889
Trade sales
—
—
105,406
67,537
13,420
(26)
186,337
Sales of real estate inventory
—
5,049
—
—
—
—
5,049
Interest income
87,902
750
56
—
104
(2,486)
86,326
Net gains on sales of real estate
assets
—
13,616
—
—
—
—
13,616
Other revenue
—
1,619
324
—
2,233
(973)
3,203
Total revenues
740,242
21,034
105,786
67,537
15,757
(3,485)
946,871
Costs and expenses:
Cost of VOIs sold
21,845
—
—
—
—
—
21,845
Cost of other fee-based services
86,940
—
—
—
—
—
86,940
Cost reimbursements
63,889
—
—
—
—
—
63,889
Cost of trade sales
—
—
67,703
54,243
5,800
(26)
127,720
Cost of real estate inventory sold
—
2,643
—
—
—
—
2,643
Interest expense
39,538
—
196
498
27
5,523
45,782
Recoveries from loan losses, net
—
(5,428)
—
—
—
—
(5,428)
Impairment losses
—
47
142
—
6,749
—
6,938
Selling, general and
administrative expenses
468,856
9,144
43,203
11,066
12,282
41,135
585,686
Total costs and expenses
681,068
6,406
111,244
65,807
24,858
46,632
936,015
Equity in net earnings of
unconsolidated real estate joint
ventures
—
37,898
—
—
—
—
37,898
Other (expense) income
(910)
170
336
153
15
318
82
Foreign exchange loss
—
—
—
(75)
—
—
(75)
Income (loss) before income
taxes
$
58,264
52,696
(5,122)
1,808
(9,086)
(49,799)
48,761
The following supplemental table presents BBX Capital’s
Consolidating Statement of Operations (unaudited) for the year
ended December 31, 2018 (in thousands):
Bluegreen
BBX
Capital
Real Estate
BBX Sweet
Holdings
Renin
Other
Reconciling
Items and
Eliminations
Segment
Total
Revenues:
Sales of VOIs
$
254,225
—
—
—
—
—
254,225
Fee-based sales commissions
216,422
—
—
—
—
—
216,422
Other fee-based services
118,024
—
—
—
—
—
118,024
Cost reimbursements
62,534
—
—
—
—
—
62,534
Trade sales
—
—
101,187
68,417
9,903
(21)
179,486
Sales of real estate inventory
—
21,771
—
—
—
—
21,771
Interest income
85,914
2,277
61
—
87
(2,838)
85,501
Net gains on sales of real estate
assets
—
4,563
—
—
—
—
4,563
Other revenue
—
2,541
10
—
1,869
(1,048)
3,372
Total revenues
737,119
31,152
101,258
68,417
11,859
(3,907)
945,898
Costs and expenses:
Cost of VOIs sold
23,813
—
—
—
—
—
23,813
Cost of other fee-based services
72,968
—
—
—
—
—
72,968
Cost reimbursements
62,534
—
—
—
—
—
62,534
Cost of trade sales
—
—
65,829
55,483
4,349
(21)
125,640
Cost of real estate inventory sold
—
14,116
—
—
—
—
14,116
Interest expense
34,709
—
308
638
7
6,413
42,075
Recoveries from loan losses, net
—
(8,653)
—
—
—
—
(8,653)
Impairment losses
—
571
4,147
—
—
—
4,718
Reimbursements of litigation costs
and penalty
—
—
—
—
—
(600)
(600)
Selling, general and administrative
expenses
415,403
9,210
46,130
9,903
11,680
45,486
537,812
Total costs and expenses
609,427
15,244
116,414
66,024
16,036
51,278
874,423
Equity in net earnings of
unconsolidated real estate joint
ventures
—
14,194
—
—
—
—
14,194
Other income (expense)
1,201
112
170
—
(1)
213
1,695
Foreign exchange gain
—
—
—
68
—
—
68
Income (loss) before income
taxes
$
128,893
30,214
(14,986)
2,461
(4,178)
(54,972)
87,432
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 Years Ended
December 31,
December 31,
2019
2018
2019
2018
Sales of VOIs
$
69,024
58,813
255,375
254,225
Provision for loan losses
16,218
15,379
55,701
51,305
Gross Sales of VOI's
85,242
74,192
311,076
305,530
Plus: Fee-based sales
70,239
71,767
308,032
318,540
System-wide sales of VOIs, net
$
155,481
145,959
619,108
624,070
(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 (2) and a reconciliation of cash flow from operating
activities to free cash flow (unaudited) (in thousands):
For the Three Months
Ended
For the Years Ended
December 31,
December 31,
2019
2018
2019
2018
Cash flow from operating activities
$
17,848
43,052
78,242
86,639
Capital expenditures for property and
equipment
(9,302)
(12,234)
(35,588)
(45,550)
Free cash flow
$
8,546
30,818
42,654
41,089
The following supplemental table presents Bluegreen’s free cash
flow (2) 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 Years Ended
December 31,
December 31,
2019
2018
2019
2018
Cash flow from operating activities
$
20,233
31,092
70,558
76,834
Capital expenditures for property and
equipment
(5,973)
(8,192)
(24,475)
(32,539)
Free cash flow
$
14,260
22,900
46,083
44,295
(2)
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 BBX Capital’s EBITDA
and Adjusted EBITDA (3) 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 Years Ended
December 31,
December 31,
2019
2018
2019
2018
Net income
$
8,589
15,667
32,103
55,793
Provision for income taxes
1,590
9,642
16,658
31,639
Income before income taxes
10,179
25,309
48,761
87,432
Add/(less):
Interest income (other than interest
earned on VOI
notes receivable)
(1,412)
(1,441)
(5,615)
(5,631)
Interest expense
11,103
11,205
45,782
42,075
Interest expense on receivable-backed
debt
(5,110)
(5,175)
(20,503)
(19,514)
Franchise taxes
22
19
193
199
Depreciation and amortization
5,201
5,776
22,302
21,788
EBITDA
19,983
35,693
90,920
126,349
EBITDA attributable to noncontrolling
interests
(5,157)
(5,972)
(23,527)
(26,674)
Loss (gain) on assets held-for-sale
5,802
(6)
3,656
3
Foreign exchange loss (gain)
51
23
75
(68)
Corporate realignment (other)
—
3,961
—
6,027
Impairment losses - MOD Pizza
—
—
6,749
—
Severance
4,343
2,899
6,267
3,650
Bass Pro Settlement
—
—
39,121
—
Adjusted EBITDA
$
25,022
36,598
123,261
109,287
The following supplemental table presents Bluegreen’s EBITDA and
Adjusted EBITDA(3) and a reconciliation of Bluegreen’s net income
to its EBITDA and Adjusted EBITDA (unaudited) (in thousands):
For the Three Months
Ended
For the Years Ended
December 31,
December 31,
2019
2018
2019
2018
Net income
$
12,732
22,670
46,124
100,352
Provision for income taxes
3,016
3,544
12,140
28,541
Income before income taxes
15,748
26,214
58,264
128,893
Add/(less):
Interest income (other than interest
earned on VOI
notes receivable)
(1,754)
(1,821)
(7,191)
(6,044)
Interest expense (other than interest
expense on
receivable-back debt)
4,471
4,064
19,035
15,195
Franchise taxes
22
19
193
199
Depreciation and amortization
3,661
3,303
14,114
12,392
Bluegreen EBITDA
22,148
31,779
84,415
150,635
EBITDA attributable to the noncontrolling
interest
in Bluegreen/Big Cedar Vacations
(2,330)
(2,947)
(11,670)
(12,468)
Loss (gain) on assets held-for-sale
5,802
(6)
3,656
3
Bass Pro Settlement
—
—
39,121
—
Severance
4,343
2,899
6,267
3,650
Adjusted EBITDA
$
29,963
31,725
121,789
141,820
The following supplemental table presents BBX Sweet Holdings’
EBITDA and Adjusted EBITDA (3) and a reconciliation of BBX Sweet
Holdings’ net loss to its EBITDA and Adjusted EBITDA (unaudited)
(in thousands):
For the Three Months
Ended
For the Years Ended
December 31,
December 31,
2019
2018
2019
2018
Net loss from BBX Sweet
Holdings
$
(841)
(6,398)
$
(5,122)
(14,986)
Provision from income taxes
—
—
—
—
Loss before income taxes
(841)
(6,398)
(5,122)
(14,986)
Add/(less):
Interest income
(14)
(14)
(56)
(61)
Interest expense
54
70
196
308
Depreciation and amortization
1,314
1,551
5,565
5,897
Corporate realignment and related
impairment losses
—
3,961
—
6,027
EBITDA
513
(830)
583
(2,815)
EBITDA attributable to noncontrolling
interests
54
96
(112)
(75)
Adjusted EBITDA
$
567
(734)
471
(2,890)
The following supplemental table presents Renin’s EBITDA and
Adjusted EBITDA (3) and a reconciliation of Renin’s net income to
its EBITDA and Adjusted EBITDA (unaudited) (in thousands):
For the Three Months
Ended
For the Years Ended
December 31,
December 31,
2019
2018
2019
2018
Net income from Renin
$
332
1,082
$
1,213
1,610
(Benefit) provision from income taxes
(75)
675
595
851
Income before income taxes
257
1,757
1,808
2,461
Add:
Interest expense
111
141
498
638
Depreciation and amortization
305
467
1,339
1,953
EBITDA
673
2,365
3,645
5,052
Foreign exchange loss (gain)
51
23
75
(68)
Adjusted EBITDA
$
724
2,388
$
3,720
4,984
(3)
The Company defines EBITDA as earnings or
net income, before taking into account interest income (excluding
interest earned on Bluegreen’s VOI notes receivable), interest
expense (excluding interest expense incurred by Bluegreen on
financings related to its receivable-backed notes payable), income
and franchise taxes, and depreciation and amortization (including
Renin’s amortization of product displays provided to customers for
marketing purposes that are presented as a reduction of trade sales
under GAAP). For purposes of the Company’s EBITDA calculations for
BBX Capital and Bluegreen, 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.
The Company defines Adjusted EBITDA as
EBITDA adjusted for amounts attributable to noncontrolling
interests, foreign exchange gains and losses (as exchange rates may
vary significantly among companies), and items that the Company
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 were excluded in the
computation of BBX Capital’s and Bluegreen’s Adjusted EBITDA for
the year ended December 31, 2019. In addition, impairments of
property and equipment and intangible assets related to the
Company’s MOD Pizza restaurant locations were excluded in the
computation of the Company’s Adjusted EBITDA in the applicable 2019
periods.
The Company considers EBITDA and Adjusted
EBITDA to be an indicator of the operating performance of BBX
Capital, Bluegreen, BBX Sweet Holdings, and Renin, and they are
used to measure their ability to service debt, fund capital
expenditures, and expand its businesses. 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 Adjusted EBITDA to
be a useful supplemental measure of the operating performance of
BBX Capital, Bluegreen, BBX Sweet Holdings, and Renin 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 the financial
performance of BBX Capital, Bluegreen, BBX Sweet Holdings, and
Renin or as an alternative to cash flow from operating activities
as a measure of its liquidity. The Company's computation of 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 the financial performance of BBX
Capital, Bluegreen, BBX Sweet Holdings, and Renin.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200310005886/en/
BBX Capital Corporation Contact
Info Investor Relations
Contact: Leo Hinkley, Managing Director, Investor Relations
Officer 954-940-5300, Email: LHinkley@BBXCapital.com
Media Relations Contacts: Kip
Hunter Marketing, Nicole Lewis / Shannon O’Malley 954-765-1329,
Email: nicole@kiphuntermarketing.com,
shannon@kiphuntermarketing.com
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