FORT LAUDERDALE, FL (May 12, 2015) — BFC Financial Corporation (“BFC” or the “Company”)(OTCQB: BFCF) (OTCQB: BFCFB) reported financial results for the three month period ended March 31, 2015.
First Quarter 2015:
The Company reported net income attributable to BFC of $1.9 million, or $0.02 per diluted share, for the quarter ended March 31, 2015, compared to net income attributable to BFC of $3.1 million, or $0.04 per diluted share, for the quarter ended March 31, 2014.
As of March 31, 2015, BFC had total consolidated assets of approximately $1.4 billion, shareholders’ equity attributable to BFC of approximately $256.6 million, and total consolidated equity of approximately $454.3 million. BFC’s book value per share at March 31, 2015 was $3.08.
BFC’s Chairman and CEO, Mr. Alan B. Levan, commented, “We are pleased with the overall progress of our core business segments which include our ownership interest in BBX Capital Corporation (NYSE: BBX) (“BBX Capital”) and our ownership interest in Bluegreen Corporation (“Bluegreen”). Bluegreen is a wholly owned subsidiary of Woodbridge Holdings, LLC (“Woodbridge”), which is owned 54% by BFC and 46% by BBX Capital. Our results reflect our pursuit of our broader goal of transitioning into a business platform with diverse activities and a focus on long term growth through our operating businesses and real estate opportunities, as well as the continued monetization of the BBX Capital legacy portfolios.”
Net income attributable to BFC is defined as net income after non-controlling interests. Under generally accepted accounting principles, the financial statements of the companies in which BFC holds a controlling interest, including BBX Capital (NYSE: BBX) and Woodbridge and its subsidiary, Bluegreen, are consolidated in BFC’s financial statements.
Overview and Highlights:
BFC Selected Financial Data (Consolidated)
First Quarter, 2015 Compared to First Quarter, 2014
- Total revenues of $149.9 million vs. $150.4 million
- Net income attributable to BFC of $1.9 million vs. $3.1 million
- Diluted earnings per share of $0.02 vs. $0.04
- Book value per share of $3.08 vs. $3.09
- Assets of $1.4 billion at March 31, 2015 and March 31, 2014
On April 30, 2015, BFC completed cash tender offer (the “Tender Offer”) pursuant to which it purchased from the shareholders of BBX Capital a total 4,771,221 shares of BBX Capital’s Class A Common Stock at a purchase price of $20.00 per share for an aggregate purchase price of approximately $95.4 million. Prior to the Tender Offer, the Company owned approximately 51% of the issued and outstanding shares of BBX Capital’s Class A Common Stock. The Company also owns all of the issued and outstanding shares of BBX Capital’s Class B Common Stock. Collectively, the shares of BBX Capital’s Class A Common Stock and Class B Common Stock owned by BFC represent an approximately 81% equity interest and 90% voting interest in BBX Capital.
The following selected information relates to the operating activities of Bluegreen Corporation and BBX Capital Corporation. See supplemental tables for consolidating income statements for the three month period ended March 31, 2015 and 2014.
Bluegreen is a sales, marketing and resort management company, focused on the vacation ownership industry. As previously indicated, Bluegreen is a wholly owned subsidiary of Woodbridge Holdings, which is owned 54% by BFC and 46% by BBX Capital. Woodbridge’s principal asset is its 100% ownership of Bluegreen.
For the quarter ended March 31, 2015, net income attributable to Woodbridge was $12.6 million, including $13.3 million related to the operations of Bluegreen. BFC recognized 54% of the net income attributable to Woodbridge, or $6.8 million, for the quarter ended March 31, 2015.
Bluegreen Selected Financial Data
First Quarter, 2015 Compared to First Quarter, 2014
- System-wide sales of Vacation Ownership Interests (“VOIs”) were $109.2 million vs. $109.9 million
- System-wide sales of VOIs included sales under Bluegreen’s “capital-light” business strategy(1) of, $64.4 million vs. $66.8 million
- Other fee-based services profits rose 6% to $11.3 million from $10.7 million
- Net income was $16.1 million vs. $17.1 million
- EBITDA was $30.8 million vs. $32.7 million (2)
|(1)||Bluegreen’s sales of VOIs under its capital-light business strategy includes sales of VOIs under fee-based sales and marketing arrangements (“FBS sales”), Just-in-Time” sales, and “Secondary Market” sales. In connection with “Just-in-Time” sales, Bluegreen enters into agreements with third party developers that allow Bluegreen to buy VOI inventory from time to time in close proximity to the timing of when Bluegreen intends to sell such VOIs. In connection with “Secondary Market” sales, Bluegreen acquires VOI inventory from resorts’ property owner associations (“POAs”) and other third parties close to the time Bluegreen intends to sell such VOIs. VOIs related to Secondary Market sales are typically obtained by the POAs through foreclosure in connection with maintenance fee defaults, and are generally acquired by Bluegreen at a significant discount.|
|(2)||See the supplemental tables included in this release for a reconciliation of EBITDA to net income.|
Bluegreen Summary for the First Quarter, 2015
System-wide sales of VOIs include all sales of VOIs, regardless of whether Bluegreen or a third-party owned the VOI immediately prior to the sale. The sales of third-party owned VOIs are transacted as sales of timeshare interests in the Bluegreen Vacation Club through the same selling and marketing process Bluegreen uses to sell its own VOI inventory. System-wide sales of VOIs were $109.2 million and $109.9 million during the first quarter of 2015 and the first quarter of 2014, respectively.
Included in system-wide sales are Fee Based Sales, Just-In-Time sales, Secondary Market sales and legacy sales under Bluegreen’s traditional VOI business. Fee Based Sales, Just-in-Time sales and Secondary Market sales are included in Bluegreen’s “capital-light” business strategy. Bluegreen determines which VOIs are sold based on several factors, including the requirements of Fee Based Sales clients, debt service requirements and default resale requirements under term securitization and similar transactions. In addition, Bluegreen accounts for equity trade allowances granted to consumers by deducting them from the specific sale on which the allowance was granted. These factors can cause fluctuations in the amount of net sales by category from period to period. Sales by category are tracked based on which deeded VOI is conveyed in each transaction. Sales under Bluegreen’s capital-light business strategy represented 59% of Bluegreen’s system-wide sales in the first quarter of 2015 compared to 61% in the first quarter of 2014.
Selling and marketing expenses were 52% of system-wide sales during the first quarter of 2015 as compared to 48% during the first quarter of 2014. The increase in selling and marketing expenses during the first quarter of 2015 compared to the first quarter of 2014 was a result of Bluegreen’s focus on increasing its marketing efforts to new prospects as opposed to existing owners, which resulted in higher costs per tour from new and expanding marketing channels. Sales to existing owners generally involve lower marketing expenses than sales to new prospects; however, a new program which contributed to owner sales has a slightly higher cost per tour as compared to historical owner sales tours. Bluegreen expects to continue to increase its focus on sales to new prospects as well as the new program for owner sales and, as a result, sales and marketing expenses generally and as a percentage of sales may increase.
Other Fee-Based Services profits, which are primarily generated from providing resort and club management services as well as title services, increased 6% to $11.3 million from $10.7 million. As of March 31, 2015 and 2014, Bluegreen managed 48 and 47 timeshare resort properties and hotels, respectively.
As a result of the above, Bluegreen’s net income was $16.1 million in the first quarter of 2015 as compared to $17.1 million in the first quarter of 2014.
As previously announced, in the first quarter of 2015 Bluegreen completed a securitization involving the issuance of $117.8 million of investment-grade rated securities. The issuance was completed through BXG Receivables Note Trust 2015-A and was comprised of $89.4 million of A rated vacation ownership loan backed notes and $28.4 million of BBB-/BBB rated vacation ownership loan backed notes. The notes have interest rates of 2.88% and 3.47% respectively, for an overall weighted average interest rate of 3.02%. The gross advance rate for this transaction was 94.25%. A portion of the proceeds received to date from the securitization were used to repay balances outstanding under certain of Bluegreen’s receivable-backed notes payable, with the remaining proceeds expected to be used for general corporate purposes.
BFC Financial Contact Info:
Source: BFC Financial Corporation