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Bluegreen Corporation – BXG – Performed well in the third quarter of 2012

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Bluegreen Corporation (NYSE: BXG), a leading timeshare sales, marketing and resort management company, announced financial results for the quarter and nine months ended September 30, 2012.

BXG – Q3 2012 Overview

  • Bluegreen Resorts (“Resorts”) system-wide sales of vacation ownership interests (“VOIs”) increased 19.9% to $109.1 million from $91.0 million in Q3 2011.
  • Sales of VOIs made on behalf of Resorts’ fee-based services clients, which are included in system-wide sales above, rose 22.7% to $41.7 million from $34.0 million in Q3 2011.
  • Income from continuing operations attributable to Bluegreen shareholders (defined as income from continuing operations after tax less net income attributable to non-controlling interest) rose 24.1% to $12.0 million, or $0.38 per diluted share, from $9.7 million, or $0.30 per diluted share, in Q3 2011.
  • Net income rose to $11.7 million, or $0.37 per diluted share, from net income of $7.1 million, or $0.22 per diluted share, in Q3 2011. Q3 2011 included a loss from discontinued operations of $2.6 million, or $0.08 per diluted share, related to Bluegreen Communities, substantially all of the assets of which were sold in May 2012. Q3 2012 loss from discontinued operations of approximately $0.3 million, or $0.01 per diluted share, was related to expenses incurred to satisfy a portion of the obligations of Bluegreen Communities not assumed by the buyer.
  • Unrestricted cash and cash equivalents at September 30, 2012 of $100.2 million.

John M. Maloney Jr., President and Chief Executive Officer of Bluegreen, commented, “We performed well in the third quarter of 2012, as evidenced by growth at both our traditional VOI and fee-based services businesses, as well as increases in sales tours and sale-to-tour conversion ratios. Our fee-based services business represented approximately 39% and 37% of total system-wide VOI sales for the three and nine months ended September 30, 2012, respectively, up from approximately 37% and 34% in the same respective periods last year. In September, we completed the sale of $100 million of investment-grade timeshare loan-backed notes in a term securitization transaction. This transaction allowed us to refinance at a 2.94% fixed interest rate receivables that were previously pledged under certain of our variable-rate credit facilities, and create approximately $60 million of additional availability under existing receivable-backed credit facilities. Through the first nine months of 2012, we generated free cash flow (defined as cash flow from operating and investing activities) of $138.7 million (including $27.8 million of proceeds from the sale of Bluegreen Communities, prior to the payment of $22.7 million of Bluegreen Communities’ debt and related fees) and reduced outstanding debt by approximately $107.3 million.”

About Bluegreen Corporation – BXG

Founded in 1966 and headquartered in Boca Raton, FL, Bluegreen Corporation (BXG) is a leading timeshare sales, marketing and resort management company. BXG manages, markets and sells the Bluegreen Vacation Club, a flexible, points-based, deeded vacation ownership plan with more than 160,000 owners, over 59 owned or managed resorts, and access to more than 4,000 resorts worldwide. BXG also offers a portfolio of comprehensive, turnkey, fee-based service resort management, financial services, and sales and marketing on behalf of third parties.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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