Bluegreen Corporation (NYSE: BXG), a leading provider of Colorful Places to Live and Play(R), announced financial results for the three months ended March 31, 2011.
John M. Maloney Jr., President and Chief Executive Officer of Bluegreen, commented, “We are pleased to begin 2011 on such a positive note, with improved earnings, continued growth in cash flow from operating and investing activities, and continued growth of our fee-based services business model. VOI system-wide sales increased in Q1 2011 compared to Q1 2010, although we will attempt to continue to align sales levels with our desired marketing efficiencies and receivables financing capacity. We remain committed to the long-term growth and success of our business, while delivering what we believe is a vacation experience that ranks among the best in the industry.” [member]
Mr. Maloney continued by noting additional operating highlights for Q1 2011:
*In connection with its fee-based services business, Bluegreen Resorts (“Resorts”) sold $16.9 million of third-party VOI inventory in Q1 2011, generating sales and marketing commissions of approximately $10.8 million, which contributed an estimated $1.1 million to Resorts operating profit. This compares to sales of $15.8 million of third-party VOI inventory, which generated sales and marketing commissions of $10.2 million and contributed an estimated $0.9 million to Resorts operating profit in Q1 2010. In Q1 2011, we provided sales and marketing services for six resorts under fee-based service arrangements, as compared to four such arrangements during Q1 2010;
*Total revenues from fee-based services (including sales and marketing commissions, resort management services, title and other services) rose 7% to $28.0 million in Q1 2011. As of March 31, 2011, we managed 42 timeshare resort properties and hotels compared to 40 as of March 31, 2010;
*Cash received from Resorts sales – either at closing or within 30 days of closing – represented 59% of Resorts sales in Q1 2011, compared to 48% in Q1 2010;
*Sales to existing Bluegreen Vacation Club owners represented 59% of total Resorts sales in Q1 2011 as compared to 62% in Q1 2010 as sales to new customers increased;
*Cash flow from operating and investing activities was $34.0 million for the three months ended March 31, 2011 compared to $24.3 million for the three months ended March 31, 2010; and
*Debt-to-equity (recourse and non-recourse) declined to 2.44:1 at March 31, 2011 from 2.58:1 at December 31, 2010. Debt-to-equity (recourse only) declined to 1.16:1 at March 31, 2011 from 1.22:1 at December 31, 2010.
Net income for Q1 2011 was $2.5 million, or $0.08 per diluted share, compared to a net loss of $7.9 million, or $0.25 per diluted share, in Q1 2010. The net loss for Q1 2010 included non-cash pre-tax charges of $13.0 million, comprised of a $10.7 million charge to increase the reserve for loan losses on VOI notes receivable generated prior to December 15, 2008 (the date we implemented our FICO(R) score-based underwriting program) and a $5.3 million impairment charge related to Bluegreen Communities inventory, partially offset by a $3.0 million reduction in Resorts cost of sales associated with the increase in loan loss reserves. Excluding these non-cash charges, non-GAAP net loss for Q1 2010 would have been $0.3 million, or $0.01 per diluted share.
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