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Bluegreen Vacations Reports Financial Results for Third Quarter 2021

Bluegreen Vacations Holding Corporation (NYSE: BVH) (OTCQX: BVHBB) (the “Company" or “BVH”) reported today its financial results for the quarter ended September 30, 2021. The Company’s wholly owned subsidiary, Bluegreen Vacations Corporation (“Bluegreen”), is a leading vacation ownership company that markets and sells vacation ownership interests (“VOIs”) and manages resorts in popular leisure and urban destinations.

Alan B. Levan, Chairman and Chief Executive Officer of the Company and Bluegreen commented, “Approximately two years ago we announced the Bluegreen Renewal Program. We designed this initiative to address areas we believed were adversely impacted by inconsistent performance. The initiative reflects our company wide effort to revitalize sales, revenue growth and efficiency and I am pleased to report that Bluegreen’s results during the third quarter of 2021 reflect an all-time record of system-wide sales of VOIs; an all-time record of sales of vacation packages; and the achievement of one of the highest Adjusted EBITDA in the Company’s history.”

Key Highlights as of and for the Quarter Ended September 30, 2021:

  • Net income attributable to shareholders of $23.1 million.
  • Earnings Per Share (“EPS”) from continuing operations of $1.07.
  • System-wide sales of VOIs of $180.6 million in the third quarter of 2021 versus $104.3 million in the third quarter of 2020 and $170.4 million in the third quarter of 2019.
  • Adjusted EBITDA of $42.7 million. (1)
  • The Company repurchased approximately 1,007,000 shares of its Common Stock for an aggregate purchase price of approximately $20.9 million.

Key Highlights for the Nine Months Ended September 30, 2021:

  • Net income attributable to shareholders of $45.6 million.
  • EPS from continuing operations of $2.21.
  • System-wide sales of VOIs of $451.1 million in the nine months ended September 30, 2021 versus $254.8 million in the nine months ended September 30, 2020 and $463.6 million in the nine months ended September 30, 2019.
  • Adjusted EBITDA of $91.2 million. (1)
  • Free cash flow of $74.6 million. (2)

(1)

See appendix for reconciliation to net income attributable to shareholders for each respective period.

(2)

Free cash flow is defined as cash from operating activities less capital expenditures.

Mr. Levan continued, “We are pleased with Bluegreen’s results during the third quarter of 2021. Bluegreen achieved record third quarter system-wide sales of VOIs. System-wide sales grew 6% during the third quarter of 2021 compared to the third quarter of 2019 and 73% compared to the third quarter of 2020. We believe these achievements reflect the ongoing success of our ‘Bluegreen Renewal’ initiative, a company-wide effort to revitalize sales, revenue growth and efficiency. We are also pleased to note that Bluegreen’s sales to new customers during the third quarter of 2021 represented 50% of system-wide sales of VOIs versus 48% in the third quarter of 2019, a sales mix which we believe will support net owner growth in the future.”

“Bluegreen’s new customer marketing efforts generally begin with the sale of a vacation package to a prospect. We sold 52,013 vacation packages in the third quarter of 2021, compared to 37,286 in the third quarter of 2020 and 49,821 in the third quarter of 2019. This represented a third quarter record for package sales, and we believe this achievement was due in large part to our ‘Bluegreen Renewal’ initiative.”

“We were very happy to see our owners’ continued enthusiasm for using the Bluegreen Vacation Club, as we experienced an overall occupancy rate during the third quarter of 2021 of approximately 84% at resorts with sales centers, an increase from the 70% occupancy we experienced in the third quarter of 2020 during the pandemic. The demand for resort stays from Bluegreen Vacation Club owners has been strong and we believe our core strategy of primarily offering a ‘drive-to’ network of resorts will continue to serve as a growth driver.”

“Our efforts resulted in net income from continuing operations attributable to shareholders of $23.1 million during the third quarter of 2021 and a third quarter record $42.7 million of Adjusted EBITDA attributable to shareholders. While we are excited by our third quarter results and energized and hopeful about the future, we continue to monitor the status of COVID-19, including cases in the markets where we operate, especially as we enter the fall and winter months when cases have historically increased. In addition, labor availability has been a challenge in certain of our markets and we cannot predict the duration or severity of the impact of the pandemic and labor conditions on our operations in the future. However, I am very pleased with the way our team has navigated these complexities to date,” Mr. Levan concluded.

Due to the volatility of results during the periods as a result of the varying impact of the COVID-19 pandemic, the Company has provided information for the third quarters of, and nine months ended September 30, 2021, 2020 and 2019.

Bluegreen’s Financial Results

(dollars in millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

September 30,

 

For the Nine Months Ended

September 30,

 

 

2021

 

2020

 

Q3 2021 vs

Q3 2020

% Change

 

2019

 

Q3 2021 vs

Q3 2019

% Change

 

2021

 

2020

 

YTD 2021

vs YTD

2020

% Change

 

2019

 

YTD 2021

vs YTD

2019

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

$

214.5

 

 

$

144.6

 

 

48.3

%

 

$

202.7

 

 

5.8

%

 

$

554.0

 

 

$

370.0

 

 

49.7

%

 

$

560.5

 

 

(1.2

)%

Income before non-controlling interest and provision for income taxes

 

$

37.7

 

 

$

17.4

 

 

116.7

%

 

$

30.4

 

 

24.0

%

 

$

80.9

 

 

$

6.4

 

 

1,164.1

%

 

$

42.5

 

 

90.4

%

Adjusted EBITDA Attributable to BVH (1)

 

$

43.3

 

 

$

22.4

 

 

93.3

%

 

$

37.0

 

 

17.0

%

 

$

95.1

 

 

$

29.5

 

 

222.4

%

 

$

91.8

 

 

3.6

%

Capital-light revenue (2) as a percentage of total revenue

 

 

71.8

%

 

 

68.1

%

 

370

bp

 

 

70.2

%

 

160

bp

 

 

68.1

%

 

 

72.3

%

 

(420

)bp

 

 

76.3

%

 

(820

)bp

(1)

See Appendix for reconciliation of Bluegreen’s Adjusted EBITDA Attributable to BVH to Net Income Attributable to BVH.

(2)

Bluegreen's "capital-light" revenue includes revenue from sales of VOIs under fee-based sales and marketing arrangements, just-in-time inventory acquisition arrangements, and secondary market arrangements, as well as other fee-based services revenue and cost reimbursements revenue.

Bluegreen’s Adjusted EBITDA attributable to BVH for the quarter ended September 30, 2021 was $43.3 million, including $47.0 million generated from the Sales of VOIs and Financing Segment and $21.6 million produced by the Resort Operations and Club Management segment, partially offset by $21.2 million of corporate overhead and other expenses and $4.2 million of Adjusted EBITDA attributable to the non-controlling interest in Bluegreen/ Big Cedar Vacations LLC, Bluegreen’s 51% owned subsidiary. Please see discussion of Segment Results below for further information.

Bluegreen’s Adjusted EBITDA attributable to BVH was $95.1 million for the nine months ended September 30, 2021, including $106.5 million generated from the Sales of VOIs and Financing Segment and $58.9 million produced by the Resort Operations and Club Management segment, partially offset by $60.0 million of corporate overhead and other expenses and $10.4 million of Adjusted EBITDA attributable to the non-controlling interest in Bluegreen/Big Cedar Vacations LLC. Please see discussion of Segment Results below for further information.

Segment Results

(dollars in millions, except per guest and per transaction amounts)

 

Bluegreen’s Sales of VOIs and Financing Segment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30

 

For the Nine Months Ended September 30

 

 

2021

 

2020

 

Q3 2021 vs

Q3 2020

% Change

 

2019

 

Q3 2021 vs

Q3 2019

% Change

 

2021

 

2020

 

YTD 2021

vs YTD

2020

% Change

 

2019

 

YTD 2021

vs YTD

2019

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales of VOIs

 

$

107.4

 

 

$

59.3

 

 

81.1

%

 

$

66.3

 

 

62.0

%

 

$

255.1

 

 

$

113.4

 

 

125.0

%

 

$

186.4

 

 

36.9

%

Segment Adjusted EBITDA

 

$

47.0

 

 

$

26.3

 

 

78.7

%

 

$

41.6

 

 

13.0

%

 

$

106.5

 

 

$

23.3

 

 

357.1

%

 

$

107.2

 

 

(0.7

)%

Provision for loan losses

 

 

16.2

%

 

 

16.7

%

 

(50

)bp

 

 

19.8

%

 

(360

)bp

 

 

16.8

%

 

 

28.0

%

 

1,120

bp

 

 

17.5

%

 

(70

)bp

Cost of VOIs sold

 

 

7.0

%

 

 

6.1

%

 

90

bp

 

 

4.7

%

 

230

bp

 

 

7.7

%

 

 

7.7

%

 

bp

 

 

9.4

%

 

(170

)bp

Financing revenue, net of financing expense

 

$

16.9

 

 

$

15.5

 

 

9.0

%

 

$

15.0

 

 

12.7

%

 

$

47.9

 

 

$

46.7

 

 

2.6

%

 

$

45.1

 

 

6.2

%

Key Data Regarding Bluegreen’s System-wide sales of VOIs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

September 30,

 

For the Nine Months Ended

September 30,

 

 

2021

 

2020

 

Q3 2021 vs

Q3 2020

% Change

 

2019

 

Q3 2021 vs

Q3 2019

% Change

 

2021

 

2020

 

YTD 2021

vs YTD

2020

% Change

 

2019

 

YTD 2021

vs YTD

2019

% Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

System-wide sales of VOIs

 

$

180.6

 

 

$

104.3

 

 

73.2

%

 

$

170.4

 

 

6.0

%

 

$

451.1

 

 

$

254.8

 

 

77.0

%

 

$

463.6

 

 

(2.7

)%

Segment Adjusted EBITDA

 

$

47.0

 

 

$

26.3

 

 

78.7

%

 

$

41.6

 

 

13.0

%

 

$

106.5

 

 

$

23.3

 

 

357.1

%

 

$

107.2

 

 

(0.7

)%

Number of total guest tours

 

 

62,449

 

 

 

36,268

 

 

72.2

%

 

 

65,875

 

 

(5.2

)%

 

 

155,803

 

 

 

83,022

 

 

87.7

%

 

 

179,180

 

 

(13.0

)%

Average sales price per transaction

 

$

17,524

 

 

$

17,094

 

 

2.5

%

 

$

14,799

 

 

18.4

%

 

$

17,280

 

 

$

16,324

 

 

5.9

%

 

$

15,290

 

 

13.0

%

Sales to tour conversion ratio

 

 

16.6

%

 

 

16.9

%

 

(30

)bp

 

 

17.6

%

 

(100

)bp

 

 

16.8

%

 

 

18.9

%

 

(210

)bp

 

 

17.0

%

 

(20

)bp

Sales volume per guest ("VPG")

 

$

2,910

 

 

$

2,889

 

 

0.7

%

 

$

2,609

 

 

11.5

%

 

$

2,911

 

 

$

3,079

 

 

(5.5

)%

 

$

2,605

 

 

11.7

%

Selling and marketing expenses, as a % of system-wide sales of VOIs

 

 

55.0

%

 

 

51.4

%

 

360

bp

 

 

51.8

%

 

320

bp

 

 

54.2

%

 

 

61.1

%

 

(690

)bp

 

 

51.4

%

 

280

bp

Provision for loan losses

 

 

16.2

%

 

 

16.7

%

 

(50

)bp

 

 

19.8

%

 

(360

)bp

 

 

16.8

%

 

 

28.0

%

 

(1,120

)bp

 

 

17.5

%

 

(70

)bp

Cost of VOIs sold

 

 

7.0

%

 

 

6.1

%

 

90

bp

 

 

4.7

%

 

230

bp

 

 

7.7

%

 

 

7.7

%

 

bp

 

 

9.4

%

 

(170

)bp

System-wide sales of VOIs were $180.6 million and $104.3 million during the three months ended September 30, 2021 and 2020, respectively, and $451.1 million and $254.8 million during the nine months ended September 30, 2021 and 2020, respectively. Further, system-wide sales of VOIs for the third quarter of 2021 were 6% higher than system-wide sales of VOIs for the third quarter of 2019, the most recent third quarter prior to the COVID-19 pandemic. System-wide sales of VOIs are driven by guests who attend a timeshare sale presentation (a “guest tour”) that purchase a VOI. The number of guest tours is driven by the number of existing owner guests Bluegreen has staying at a resort with a sales center and new guests who agree to attend a sale presentation. System-wide sales of VOIs during the 2020 periods were negatively impacted by Bluegreen’s temporary closure of its VOI sales centers and marketing operations in the last week of March through May 2020 in response to the COVID-19 pandemic. While the number of guest tours was 5% lower in the third quarter of 2021 as compared to the third quarter of 2019, we believe that the Bluegreen Renewal initiative resulted in improvements to the average sales price per transaction as well as credit qualified guests, which drove the achievement of a third quarter record sales volume per guest or VPG.

Fee-based Sales Commission Revenue

Fee-based sales commission revenue was $35.6 million during the third quarter of 2021, which represented approximately 68% of fee-based VOI sales during the quarter. Fee-based VOI sales represented 29% of system-wide sales of VOIs during the quarter. Fee-based VOI sales are expected to range from 25%-30% of system-wide sales of VOIs for the fourth quarter of 2021.

Fee-based sales commission revenue was $96.9 million during the nine months ended September 30, 2021, which represented approximately 67% of fee-based VOI sales for the period. Fee-based VOI sales represented 32% of system-wide sales of VOIs during the nine months ended September 30, 2021.

Cost of VOIs Sold

In the third quarter of 2021, Cost of VOIs sold represented 7% of sales of VOIs compared to 6% in the third quarter of 2020. Cost of VOIs sold as a percentage of sales of VOIs varies between periods based on the relative costs of the specific VOIs sold in each period and the size of the point packages of the VOIs sold. The Cost of VOIs sold as a percentage of sales of VOIs increased during the three months ended September 30, 2021, as compared to the third quarter of 2020, primarily due to sale of relatively higher cost VOIs partially offset by increased secondary market inventory purchases. Cost of VOIs sold is expected to range from 9% to 11% for the fourth quarter of 2021.

Bluegreen’s Selling and Marketing Expenses

 

 

 

         

 

       

 

 

For the Three Months Ended September 30

 

For the Nine Months Ended September 30

 

 

2021

 

2020

 

Q3 2021 vs

Q3 2020

% Change

 

2019

 

Q3 2021 vs

Q3 2019

% Change

 

2021

 

2020

 

YTD 2021

vs YTD

2020

% Change

 

2019

 

YTD 2021

vs YTD

2019

% Change

 

 

 

         

 

       

Selling and marketing expenses, as a % of system-wide sales of VOIs

 

55.0

%

 

51.4

%

 

360

bp

 

51.8

%

 

320

bp

 

54.2

%

 

61.1

%

 

(690

)bp

 

51.4

%

 

280

bp

Number of Bass Pro and Cabela's marketing locations

 

123

 

 

92

 

 

33.7

%

 

75

 

 

64.0

%

 

123

 

 

92

 

 

33.7

%

 

75

 

 

64.0

%

Number of vacation packages outstanding, beginning of the period (1)

 

163,738

 

 

149,620

 

 

9.4

%

 

168,420

 

 

(2.8

)%

 

121,915

 

 

169,294

 

 

(28.0

)%

 

163,100

 

 

(25.3

)%

Number of vacation packages sold

 

52,013

 

 

37,286

 

 

39.5

%

 

49,821

 

 

4.4

%

 

157,643

 

 

88,332

 

 

78.5

%

 

150,222

 

 

4.9

%

Number of vacation packages outstanding, end of the period (1)

 

174,496

 

 

134,619

 

 

29.6

%

 

163,205

 

 

6.9

%

 

174,496

 

 

134,619

 

 

29.6

%

 

163,205

 

 

6.9

%

(1)

Excludes vacation packages sold to customers more than one year prior to the period presented and vacation packages sold to customers who had already toured but purchased an additional vacation package.

Selling and marketing expenses were 55% of system-wide sales of VOIs during the 2021 third quarter. During the third quarter of 2021, Bluegreen opened marketing kiosks in eleven additional Cabela’s locations where it has continued its efforts to market and sell mini-vacation packages. These and other mini-vacation marketing programs resulted in the sale of over 52,000 vacation packages during the third quarter of 2021. As compared to the third quarter of 2019, this reflects an increase of over 4% in vacation package sales, driven by growth in the Bass Pro/Cabela’s channel, partially offset by lower vacation package sales through the Choice Hotels program and other marketing programs that were reduced or terminated or otherwise adversely impacted by COVID-19 or other factors. The active pipeline of vacation packages increased to 174,496 at September 30, 2021 from 163,738 at June 30, 2021, based on new vacation package sales during the quarter, net of vacation packages used or expired. While there is no assurance that this will continue to be the case, historically, approximately 44% of vacation packages resulted in a timeshare tour at one of Bluegreen’s resorts with a sales center within twelve months of purchase. In addition to this active pipeline, Bluegreen also has a pipeline of approximately 17,300 vacation packages held by customers who have already toured, some of whom have already purchased a VOI and have indicated they would tour again, and over 73,000 vacation packages that were purchased over 12 months prior to September 30, 2021. Bluegreen has several programs in place to attempt to reactivate those vacation packages to promote future travel and in turn potential future VOI sales.

As previously described, in response to the COVID-19 pandemic, Bluegreen temporarily ceased marketing activities from the last week of March 2020 through most of May 2020. During the three and nine months ended September 30, 2020, Bluegreen incurred $0.1 million and $4.0 million, respectively, in severance expense and $1.4 million and $12.3 million, respectively, of payroll and benefits expenses relating to employees who were then on temporary furlough or reduced work hours as a result of the impact of the COVID-19 pandemic. There were no such severance or furlough expenses during the 2021 periods.

Bluegreen’s Provision for Loan Losses

The provision for loan losses varies based on the amount of financed, non fee-based VOI sales during the period and Bluegreen’s estimates of future notes receivable performance for existing and newly originated loans. The provision for loan losses as a percentage of gross sales of VOIs was 16% during the third quarter of 2021 and 17% during the third quarter of 2020. The provision for loan losses applied to new loans during the third quarter of 2021 was 25%, which was consistent with the prior year quarter.

The COVID-19 pandemic has at times had a material adverse impact on unemployment in the United States and economic conditions in general and the ongoing impact continues to be uncertain. There is no assurance that the allowance for loan losses will prove to be adequate.

Bluegreen’s Financing Revenue, net of Financing Expense

Interest income on VOI notes receivable increased 10% to $20.9 million in the third quarter of 2021 compared to the third quarter of 2020, which was the result of a higher notes receivable balance due to higher sales of VOIs during the third quarter of 2021. Interest expense on receivable-backed notes payable decreased 3% to $3.8 million in the third quarter of 2021 compared to the third quarter of 2020, primarily due to lower outstanding receivable-backed notes payable balances and a lower weighted-average cost of borrowings due to lower market interest rates.

Bluegreen’s Resort Operations and Club Management Segment

(dollars in millions)

 

 

 

                 

 

 

For the Three Months Ended

September 30,

 

For the Nine Months Ended

September 30,

 

 

2021

 

2020

 

Q3 2021 vs

Q3 2020

% Change

 

2019

 

Q3 2021 vs

Q3 2019

% Change

 

2021

 

2020

 

YTD 2021

vs YTD

2020

% Change

 

2019

 

YTD 2021

vs YTD

2019

% Change

 

 

 

                 

Resort operations and club management revenue

 

$

46.9

 

$

42.2

 

11.1

%

 

$

47.3

 

(0.8

)%

 

$

133.3

 

$

124.9

 

6.7

%

 

$

132.9

 

0.3

%

Segment Adjusted EBITDA

 

$

21.6

 

$

16.5

 

30.9

%

 

$

15.5

 

39.4

%

 

$

58.9

 

$

50.5

 

16.6

%

 

$

45

 

30.9

%

Resorts managed

 

 

49

 

 

49

 

%

 

 

49

 

%

 

 

49

 

 

49

 

%

 

 

49

 

%

In the third quarter of 2021, resort operations and club management revenue increased 11% to $46.9 million from $42.2 million in the prior year quarter, both due to an increase in revenue from resort retail operations and third-party rental commissions, which impact Segment Adjusted EBITDA, and an increase in cost reimbursement revenue, which does not impact Segment Adjusted EBITDA. The increase in cost reimbursement revenue in the third quarter of 2021 compared to the third quarter of 2020 was primarily attributable to the temporary reduction in headcount and operating cost at resorts in the quarter ended September 30, 2020 due to the actions taken in connection with the COVID-19 pandemic. Net of cost reimbursement revenue, resort operations and club management revenue increased 6% during the quarter ended September 30, 2021 as compared to the quarter ended September 30, 2020. Segment Adjusted EBITDA increased 31% to $21.6 million in the third quarter of 2021 from $16.5 million in the third quarter of 2020.

For the nine months ended September 30, 2021, resort operations and management club revenue increased 7% to $133.3 million from $124.9 million in the prior year period, primarily due to an increase in cost reimbursement revenue, which does not impact Segment Adjusted EBITDA. The increase in cost reimbursement revenue in the 2021 period as compared to the 2020 period was primarily attributable to the temporary reduction in headcount and operating costs in the nine months ended September 30, 2020 due to actions taken in response to the COVID-19 pandemic. Net of cost reimbursement revenue, resort operations and club management revenue increased 5% during the nine months ended September 30, 2021 as compared to the nine months ended September 30, 2020. This increase was primarily attributable to increased resort retail operations and third-party rental commissions. Segment Adjusted EBITDA increased 17% to $58.9 million during the nine months ended September 30, 2021 from $50.5 million in the comparable prior year period.

Corporate Overhead, Administrative Expenses and Interest Expense

Corporate General and Administrative Expenses

The Company’s parent company level corporate general and administrative expenses were $0.6 million and $2.0 million during the three and nine months ended September 30, 2021, respectively, and $41.6 million and $58.8 million during the three and nine months ended September 20, 2020, respectively. Corporate general and administrative expenses during periods subsequent to the Company’s September 2020 spin-off of BBX Capital (which holds the Company’s historical businesses and investments other than Bluegreen) consist primarily of costs associated with the Company being a publicly traded company (including, but not limited to executive compensation, shareholder relations, and legal and accounting fees and expenses). Expenses for the 2020 periods reflect an acceleration of the vesting of unvested restricted stock awards and payments to settle BVH’s long term incentive program for 2020, in each case, in anticipation of the spin-off, which in the aggregate resulted in $32.6 million of compensation expense for the three and nine months ended September 30, 2020, and an additional $1.8 million of other costs associated with the spin-off.

Bluegreen’s general and administrative expenses were $23.8 million and $67.5 million during the three and nine months ended September 30, 2021, respectively, and $20.3 million and $48.6 million during the three and nine months ended September 30, 2020, respectively. The increase was primarily due to increased employee benefits and higher executive and management incentive compensation during the three and nine months ended September 30, 2021 as compared to the three and nine months ended September 30, 2020.

Interest Expense

The Company’s interest expense, excluding Bluegreen, for the three and nine months ended September 30, 2021 was $1.8 million and $5.5 million, respectively, and $0.9 million and $3.0 million for the three and nine months ended September 30, 2020, respectively. Interest expense for the three and nine months ended September 30, 2021 include $1.1 million and $3.4 million, respectively, of interest expense on the Company’s $75.0 million note payable to BBX Capital, which was issued in connection with the spin-off of BBX Capital in September 2020. This increase is partially offset during the 2021 periods compared to the 2020 periods by lower variable interest rates on junior subordinated debentures of a subsidiary of the Company and BVH’s repayment in full during August 2020 of its $80.0 million note payable to Bluegreen. The interest expense on the $80.0 million note to Bluegreen and the related interest income recognized by Bluegreen are eliminated in the Company’s consolidated statements of operations for the 2020 periods.

Bluegreen’s interest expense not related to receivable-backed debt was $3.0 million and $9.9 million during the three and nine months ended September 30, 2021, respectively, and $3.4 million and $11.9 million during the three and nine months ended September 30, 2020, respectively. The decrease in Bluegreen’s interest expense during the three and nine months ended September 30, 2021 was primarily due to lower outstanding debt balances as compared to the three and nine months ended September 30, 2020.

Share Repurchase Program

On August 9, 2021, the Company announced that its Board of Directors approved a share repurchase program which authorizes the Company, in management’s discretion, to repurchase shares from time to time, subject to market conditions and other factors considered by management, at an aggregate purchase price of up to $40 million. Since the inception of the share repurchase program, the Company has repurchased approximately 988,000 shares of its Class A Common Stock and approximately 19,000 shares of its Class B Common Stock for an aggregate purchase price of approximately $20.9 million. The share repurchase program replaced the Company’s previous share repurchase program, which was terminated in connection the adoption of the new program.

Additional Information

For more complete and detailed information regarding the Company and its financial results, please see the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed with the SEC on March 1, 2020, and the Company’s Quarterly Report on Form 10-Q for the three months ended September 30, 2021, which is expected to be filed with the SEC on or about November 3, 2021 and will be available on the SEC's website, https://www.sec.gov, and on the Company’s website, www.BVHCorp.com.

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.

About the Company:

Bluegreen Vacations Holding Corporation (NYSE: BVH; OTCQX: BVHBB) is a Florida-based holding company whose operations relate to the operations of its wholly owned subsidiary, Bluegreen Vacations Corporation, 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, deeded vacation ownership plan with 68 Club and Club Associate Resorts and access to nearly 11,300 other hotels and resorts through partnerships and exchange networks. The Company, through Bluegreen Vacations Corporation, also offers a portfolio of comprehensive, fee-based resort management, financial, and sales and marketing services to, or on behalf of, third parties.

For further information, please visit us at:

Bluegreen Vacations Holding Corporation: www.BVHCorp.com

Forward Looking Statements

Certain statements in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements are based on current expectations of management and can be identified by the use of words such as “believe”, “may”, “could”, “should”, “plans”, “anticipates”, “intends”, “estimates”, “expects”, and other words and phrases of similar impact. Forward-looking statements involve risks, uncertainties, and other factors, many of which are beyond our control, that may cause actual results or performance to differ from those set forth or implied in the forward-looking statements. These risks and uncertainties include, without limitation, the risk that the Company is a holding company and, accordingly, will be largely dependent on dividends from Bluegreen to fund its expenses and obligations in future periods, and Bluegreen’s ability to pay dividends will depend on its results and may be limited by the terms of Bluegreen’s indebtedness; risks regarding the amount of shares, if any, which may be repurchased by the Company in the future, the value of any shares repurchased by the Company, the timing of any share repurchases, and the availability of funds for the repurchase of shares; risks relating to Bluegreen’s business, operations and financial results; risks related to the COVID-19 pandemic and the recovery from the COVID-19 pandemic, including that the pandemic may continue to be prolonged and any recovery from the pandemic may not favorably impact Bluegreen’s results to the extent anticipated or at all; competitive conditions; labor market conditions, including shortages of labor, and its impact on operations; risks relating to our and Bluegreen’s liquidity and the availability of capital; risks that Bluegreen’s default rates may increase and exceed expectations, including due to the impact on consumers of the COVID-19 pandemic and if Bluegreen’s efforts to address the actions of timeshare exit firms and the increase in default rates associated therewith are not successful; risks related to our and Bluegreen’s indebtedness, including the potential for accelerated maturities and debt covenant violations; the impact of the COVID-19 pandemic on Bluegreen’s consumers, including their income, their level of discretionary spending both during and after the pandemic, and their views towards travel and the vacation ownership industries; the risk that Bluegreen’s resort management fees and finance operations may not continue to generate recurring sources of cash during or following the pandemic to the extent anticipated or at all; risks that Bluegreen’s current or future marketing alliances and arrangements, including its marketing arrangements with Bass Pro and the Choice Hotels program, may not result in the benefits anticipated, including increased VOI sales, that sales from marketing alliances and other arrangements or otherwise may not return to pre-pandemic levels, that any future expansion into additional Bass Pro or Cabela’s stores may not meet Bluegreen’s expectations or goals, and there is no assurance that Bluegreen will continue to have marketing operations at all of the Bass Pro and Cabela’s stores where it currently conducts marketing operations; the risk that vacation package sales, including those in the pipeline, may not convert to tours and/or VOI sales at anticipated or historical rates; the risk that Bluegreen’s allowance for loan losses may not be adequate and, accordingly, may need to be further increased in the future; our and Bluegreen’s ability to successfully implement strategic plans and initiatives, generate earnings and long-term growth, including that the Bluegreen Renewal initiative may not result in increased sales, revenues or efficiencies, or otherwise be successful, and that efforts to reactivate vacation packages sold over twelve months ago may not be successful; risks that construction defects, structural failures or natural disasters at or in proximity to Bluegreen’s resorts, including the condominium collapse which occurred in close proximity to Bluegreen’s resort in Surfside, Florida and which has result in the temporary closure of such resort, may cause liabilities that are not adequately covered by insurance and closures of operations that may have a significant adverse impact on the results of operations and cash flow; risks related to the mix of sales to new customers and existing owners, including that it may not support net owner growth in the future; our expectations with respect to fee-based sales as a percentage of system-wide sales and Cost of VOIs sold for the remainder of 2021 may not prove to be accurate, and costs may be greater than expected; and the additional risks and uncertainties described in the Company's filings with the SEC, including, without limitation, the Company’s Annual Report on Form 10-K for the year ended December 31, 2020, filed on March 1, 2021 (including the “Risk Factors” section thereof), and the Company’s Quarterly Report on Form 10-Q for the three months ended September 30, 2021, which is expected to be filed on or about November 3, 2021. The Company cautions that the foregoing factors are not exclusive. You should not place undue reliance on any forward-looking statement, which speaks only as of the date made. The Company does not undertake, and specifically disclaims any obligation, to update or supplement any forward-looking statements. In addition, past performance may not be indicative of future results.

BLUEGREEN VACATIONS HOLDING CORPORATION

CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 

2021

 

2020

ASSETS

 

 

 

 

Cash and cash equivalents

 

$

216,567

 

 

$

221,118

 

Restricted cash ($17,341 and $20,469 in VIEs at September 30, 2021 and December 31, 2020, respectively)

 

 

44,671

 

 

 

35,986

 

Notes receivable

 

 

589,277

 

 

 

551,393

 

Less: Allowance for loan losses

 

 

(152,540

)

 

 

(142,044

)

Notes receivable, net ($257,947 and $292,021 in VIEs at September 30, 2021 and December 31, 2020, respectively)

 

 

436,737

 

 

 

409,349

 

Vacation ownership interest ("VOI") inventory

 

 

341,562

 

 

 

347,122

 

Property and equipment, net

 

 

89,868

 

 

 

90,049

 

Intangible assets, net

 

 

61,369

 

 

 

61,431

 

Operating lease assets

 

 

35,016

 

 

 

34,415

 

Prepaid expenses

 

 

19,792

 

 

 

9,367

 

Other assets

 

 

38,075

 

 

 

41,282

 

Total assets

 

$

1,283,657

 

 

$

1,250,119

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

Liabilities

 

 

 

 

Accounts payable

 

$

15,375

 

 

$

10,559

 

Deferred income

 

 

14,680

 

 

 

15,745

 

Accrued liabilities and other

 

 

133,175

 

 

 

93,971

 

Receivable-backed notes payable - recourse

 

 

22,501

 

 

 

38,500

 

Receivable-backed notes payable - non-recourse ($297,531 and $341,532 in VIEs at September 30, 2021 and December 31, 2020, respectively)

 

 

358,526

 

 

 

355,833

 

Note payable to BBX Capital, Inc.

 

 

75,000

 

 

 

75,000

 

Other notes payable and borrowings

 

 

108,979

 

 

 

138,386

 

Junior subordinated debentures

 

 

134,694

 

 

 

138,177

 

Operating lease liabilities

 

 

38,662

 

 

 

35,904

 

Deferred income taxes

 

 

83,512

 

 

 

85,314

 

Total liabilities

 

 

985,104

 

 

 

987,389

 

Commitments and contingencies

 

 

 

 

Equity

 

 

 

 

Preferred stock of $0.01 par value; authorized 10,000,000 shares

 

 

 

 

 

 

Class A Common Stock of $0.01 par value; authorized 30,000,000 shares; issued and outstanding 17,312,422 in 2021 and 15,624,091 in 2020

 

 

173

 

 

 

156

 

Class B Common Stock of $0.01 par value; authorized 4,000,000 shares; issued and outstanding 3,664,412 in 2021 and 3,693,596 in 2020

 

 

37

 

 

 

37

 

Additional paid-in capital

 

 

179,892

 

 

 

177,104

 

Accumulated earnings

 

 

56,188

 

 

 

10,586

 

Total Bluegreen Vacations Holding Corporation equity

 

 

236,290

 

 

 

187,883

 

Non-controlling interest

 

 

62,263

 

 

 

74,847

 

Total equity

 

 

298,553

 

 

 

262,730

 

Total liabilities and equity

 

$

1,283,657

 

 

$

1,250,119

 

BLUEGREEN VACATIONS HOLDING CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(In thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended

 

For the Nine Months Ended

 

 

September 30,

 

September 30,

 

 

2021

 

2020

 

2021

 

2020

Revenue:

 

 

 

 

 

 

 

 

Gross sales of VOIs

 

$

128,090

 

 

$

71,149

 

 

$

306,640

 

 

$

157,530

 

Provision for loan losses

 

 

(20,707

)

 

 

(11,884

)

 

 

(51,514

)

 

 

(44,083

)

Sales of VOIs

 

 

107,383

 

 

 

59,265

 

 

 

255,126

 

 

 

113,447

 

Fee-based sales commission revenue

 

 

35,585

 

 

 

22,119

 

 

 

96,921

 

 

 

64,619

 

Other fee-based services revenue

 

 

31,920

 

 

 

27,831

 

 

 

91,259

 

 

 

83,558

 

Cost reimbursements

 

 

18,699

 

 

 

15,684

 

 

 

50,859

 

 

 

46,654

 

Interest income

 

 

20,931

 

 

 

19,345

 

 

 

59,787

 

 

 

59,963

 

Other income, net

 

 

 

 

 

 

 

 

157

 

 

 

186

 

Total revenues

 

 

214,518

 

 

 

144,244

 

 

 

554,109

 

 

 

368,427

 

Costs and Expenses:

 

 

 

 

 

 

 

 

Cost of VOIs sold

 

 

7,482

 

 

 

3,597

 

 

 

19,675

 

 

 

8,734

 

Cost of other fee-based services

 

 

11,768

 

 

 

20,861

 

 

 

44,500

 

 

 

61,107

 

Cost reimbursements

 

 

18,699

 

 

 

15,684

 

 

 

50,859

 

 

 

46,654

 

Interest expense

 

 

8,660

 

 

 

8,212

 

 

 

27,271

 

 

 

27,668

 

Selling, general and administrative expenses

 

 

132,496

 

 

 

120,932

 

 

 

338,246

 

 

 

281,237

 

Other expense, net

 

 

121

 

 

 

339

 

 

 

 

 

 

 

Total costs and expenses

 

 

179,226

 

 

 

169,625

 

 

 

480,551

 

 

 

425,400

 

Income (loss) before income taxes

 

 

35,292

 

 

 

(25,381

)

 

 

73,558

 

 

 

(56,973

)

(Provision) benefit for income taxes

 

 

(7,975

)

 

 

497

 

 

 

(16,858

)

 

 

(441

)

Income (loss) from continuing operations

 

 

27,317

 

 

 

(24,884

)

 

 

56,700

 

 

 

(57,414

)

Discontinued operations

 

 

 

 

 

 

 

 

Loss from discontinued operations

 

 

 

 

 

(5,516

)

 

 

 

 

 

(41,593

)

Benefit for income taxes

 

 

 

 

 

7,926

 

 

 

 

 

 

9,067

 

Net income (loss) from discontinued operations

 

 

 

 

 

2,410

 

 

 

 

 

 

(32,526

)

Net income (loss)

 

 

27,317

 

 

 

(22,474

)

 

 

56,700

 

 

 

(89,940

)

Less: Income attributable to noncontrolling interests - continuing operations

 

 

4,190

 

 

 

3,358

 

 

 

11,098

 

 

 

4,314

 

Less: Loss attributable to noncontrolling interests - discontinued operations

 

 

 

 

 

(510

)

 

 

 

 

 

(4,822

)

Net income (loss) attributable to shareholders

 

$

23,127

 

 

$

(25,322

)

 

$

45,602

 

 

$

(89,432

)

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share from continuing operations

 

$

1.07

 

 

$

(1.51

)

 

$

2.21

 

 

$

(3.35

)

Basic earnings (loss) per share from discontinued operations

 

 

 

 

 

0.16

 

 

 

 

 

 

(1.50

)

Basic earnings (loss) per share

 

$

1.07

 

 

$

(1.35

)

 

$

2.21

 

 

$

(4.85

)

Diluted earnings (loss) per share from continuing operations

 

$

1.06

 

 

$

(1.51

)

 

$

2.21

 

 

$

(3.35

)

Diluted earnings (loss) per share from discontinued operations

 

 

 

 

 

0.16

 

 

 

 

 

 

(1.50

)

Diluted earnings (loss) per share (1)

 

$

1.06

 

 

$

(1.35

)

 

$

2.21

 

 

$

(4.85

)

Cash dividends declared per Class A and B common shares

 

$

 

 

$

 

 

$

 

 

$

 

(1)

Basic and Diluted EPS are calculated the same for both Class A and B common shares.

BLUEGREEN VACATIONS HOLDING CORPORATION

ADJUSTED EBITDA ATTRIBUTABLE TO SHAREHOLDERS RECONCILIATION

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30,

 

For the Nine Months Ended September 30,

 

 

2021

 

2020

 

2021

 

2020

(in thousands)

 

 

 

 

 

 

 

 

Net income (loss) attributable to shareholders

 

$

23,127

 

 

$

(28,242

)

 

$

45,602

 

 

$

(61,728

)

Net income attributable to the non-controlling interest continuing operations

 

 

4,190

 

 

 

3,358

 

 

 

11,098

 

 

 

4,314

 

Net Income (loss)

 

 

27,317

 

 

 

(24,884

)

 

 

56,700

 

 

 

(57,414

)

Add: Depreciation and amortization

 

 

3,945

 

 

 

3,891

 

 

 

11,678

 

 

 

11,680

 

Less: Interest income (other than interest earned on

 

 

 

 

 

 

 

 

VOI notes receivable)

 

 

(77

)

 

 

(296

)

 

 

(267

)

 

 

(1,705

)

Add: Interest expense - corporate and other

 

 

4,811

 

 

 

4,302

 

 

 

15,353

 

 

 

14,923

 

Add: Franchise taxes

 

 

77

 

 

 

101

 

 

 

173

 

 

 

118

 

Add: Provision (benefit) for income taxes

 

 

7,975

 

 

 

(497

)

 

 

16,858

 

 

 

441

 

EBITDA

 

 

44,048

 

 

 

(17,383

)

 

 

100,495

 

 

 

(31,957

)

Add: Shared-based compensation expense (1)

 

 

457

 

 

 

 

 

 

608

 

 

 

 

Loss (gain) on assets held for sale

 

 

12

 

 

 

283

 

 

 

(24

)

 

 

326

 

Add: Severance and other (2)

 

 

2,403

 

 

 

663

 

 

 

2,403

 

 

 

6,660

 

Adjusted EBITDA

 

 

46,920

 

 

 

(16,437

)

 

 

103,482

 

 

 

(24,971

)

Adjusted EBITDA attributable to the non-controlling interest

 

 

(4,221

)

 

 

(4,241

)

 

 

(12,250

)

 

 

(6,228

)

Adjusted EBITDA attributable to shareholders

 

$

42,699

 

 

$

(20,678

)

 

$

91,232

 

 

$

(31,199

)

BLUEGREEN VACATIONS CORPORATION

ADJUSTED EBITDA ATTRIBUTABLE TO BVH RECONCILIATION

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30,

 

For the Nine Months Ended September 30,

 

 

2021

 

2020

 

2021

 

2020

(in thousands)

 

 

 

 

 

 

 

 

Bluegreen's net income (loss) attributable to BVH

 

$

25,108

 

 

$

9,901

 

 

$

52,107

 

 

$

1,272

 

Net income attributable to the non-controlling interest in Bluegreen/Big Cedar Vacations

 

 

4,190

 

 

 

2,644

 

 

 

10,237

 

 

 

4,021

 

Bluegreen Net Income

 

 

29,298

 

 

 

12,545

 

 

 

62,344

 

 

 

5,293

 

Add: Depreciation and amortization

 

 

3,945

 

 

 

3,891

 

 

 

11,678

 

 

 

11,680

 

Less: Interest income (other than interest earned on VOI notes receivable)

 

 

(83

)

 

 

(623

)

 

 

(241

)

 

 

(3,388

)

Add: Interest expense - corporate and other

 

 

2,998

 

 

 

3,409

 

 

 

9,903

 

 

 

11,932

 

Add: Franchise taxes

 

 

78

 

 

 

101

 

 

 

197

 

 

 

118

 

Add: Provision for income taxes

 

 

8,399

 

 

 

4,850

 

 

 

18,550

 

 

 

1,073

 

EBITDA

 

 

44,635

 

 

 

24,173

 

 

 

102,431

 

 

 

26,708

 

Add: Share - based compensation expense (1)

 

 

457

 

 

 

 

 

 

608

 

 

 

 

Loss (gain) on assets held for sale

 

 

12

 

 

 

283

 

 

 

(24

)

 

 

326

 

Add: Severance and other (2)

 

 

2,403

 

 

 

663

 

 

 

2,403

 

 

 

6,660

 

Adjusted EBITDA

 

 

47,507

 

 

 

25,119

 

 

 

105,418

 

 

 

33,694

 

Adjusted EBITDA attributable to the non-controlling interest in Bluegreen/Big Cedar Vacations

 

 

(4,221

)

 

 

(2,670

)

 

 

(10,361

)

 

 

(4,161

)

Adjusted EBITDA attributable to BVH

 

$

43,286

 

 

$

22,449

 

 

$

95,057

 

 

$

29,533

 

The Company defines EBITDA 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 debt secured by VOI notes receivable), income and franchise taxes and depreciation and amortization. The Company defines Adjusted EBITDA as its EBITDA, adjusted to exclude amounts of loss (gain) on assets held for sale, share-based compensation expense, and other items that the Company believes is not representative of ongoing operating results. Accordingly, the Company excludes certain items such as severance charges net of employee retention tax credits and incremental costs associated with the COVID-19 pandemic. The Company defines Adjusted EBITDA Attributable to Shareholders as Adjusted EBITDA excluding amounts attributable to the non-controlling interest in Bluegreen/Big Cedar Vacations (in which Bluegreen owns a 51% interest) and Bluegreen (in which the Company owned a 93% interest until May 5, 2021 when the Company acquired all of the 7% of the outstanding shares of Bluegreen’s common stock not previously owned by the Company through a statutory short-form merger). For purposes of the EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Shareholders calculations for each period presented, 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 ordinary operations of Bluegreen’s business.

The Company considers EBITDA, Adjusted EBITDA, Adjusted EBITDA Attributable to Shareholders to be indicators of its operating performance, and they are used by the Company to measure its ability to service debt, fund capital expenditures and expand its business. EBITDA and Adjusted EBITDA are also used by companies, lenders, investors, and others because they exclude 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. 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, Adjusted EBITDA and Adjusted EBITDA Attributable to Shareholders also exclude 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 depreciation and amortization expense among companies.

EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Shareholders are not recognized terms under GAAP and should not be considered as an alternative to net income (loss) or any other measure of financial performance or liquidity, including cash flow, derived in accordance with GAAP, or to any other method or analyzing the Company’s results as reported under GAAP. The limitations of using EBITDA, Adjusted EBITDA or Adjusted EBITDA Attributable to Shareholders as an analytical tool include, without limitation, that EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Shareholders do not reflect (i) changes in, or cash requirements for, the Company’s working capital needs; (ii) the Company’s interest expense, or the cash requirements necessary to service interest or principal payments on its indebtedness (other than as noted above); (iii) the Company’s tax expense or the cash requirements to pay its taxes; (iv) historical cash expenditures or future requirements for capital expenditures or contractual commitments; or (v) the effect on earnings or changes resulting from matters that the Company considers not to be indicative of its future operations or performance. Further, although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Shareholders do not reflect any cash requirements for such replacements. In addition, the Company’s definition of Adjusted EBITDA or Adjusted EBITDA Attributable to Shareholders may not be comparable to definitions of Adjusted EBITDA, Adjusted EBITDA Attributable to Shareholders or other similarly titled measures used by other companies.

BLUEGREEN VACATIONS HOLDING CORPORATION

SYSTEM-WIDE SALES OF VOIs RECONCILIATION (1)(2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30,

 

For the Nine Months Ended September 30,

(in thousands)

 

2021

 

2020

 

2019

 

2021

 

2020

 

2019

Gross sales of VOIs

 

$

128,090

 

$

71,149

 

$

82,729

 

$

306,640

 

$

157,530

 

$

225,834

Add: Fee-Based sales

 

 

52,474

 

 

33,159

 

 

87,646

 

 

144,413

 

 

97,266

 

 

237,793

System-wide sales of VOIs

 

$

180,564

 

$

104,308

 

$

170,375

 

$

451,053

 

$

254,796

 

$

463,627

(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 the Bluegreen Vacation Club through the same selling and marketing process Bluegreen uses to sell its VOI inventory. The Company 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.

(2)

Due to the volatility of results during the periods as a result of the varying impact of the COVID-19 pandemic, the Company has provided information for the third quarters of, and nine months ended September 30, 2021, 2020 and 2019.

BLUEGREEN VACATIONS HOLDING CORPORATION

FREE CASH FLOW RECONCILIATION (1)

 

 

 

 

 

 

 

For the Nine Months Ended September 30,

(in thousands)

 

2021

 

2020

Net cash provided by operating activities

 

$

86,072

 

 

$

3,161

 

Purchases of property and equipment

 

 

(11,478

)

 

 

(9,970

)

Free Cash Flow

 

$

74,594

 

 

$

(6,809

)

(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 focuses on the generation of free cash flow and considers free cash flow to be a useful supplemental measure of its 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 liquidity. The Company’s computation of free cash flow may differ from the methodology used by other companies. Investors are cautioned that items excluded from free cash flow are a significant component in understanding and assessing the Company’s financial performance.

BLUEGREEN VACATIONS HOLDING CORPORATION

SALES OF VOIs AND FINANCING SEGMENT- ADJUSTED EBITDA

 

 

 

 

 

 

 

 

 

 

 

For the Three Months Ended September 30,

 

 

2021

 

2020

 

 

Amount

 

% of

System-

wide sales

of VOIs (5)

 

Amount

 

% of

System-

wide sales

of VOIs (5)

(in thousands)

 

 

 

 

 

 

 

 

Developed VOI sales (1)

 

$

53,338

 

 

30

%

 

$

37,314

 

 

36

%

Secondary Market sales

 

 

74,109

 

 

41

 

 

 

24,076

 

 

23

 

Fee-Based sales

 

 

52,474

 

 

29

 

 

 

33,159

 

 

32

 

Just in Time sales

 

 

3,668

 

 

2

 

 

 

14,845

 

 

14

 

Less: Equity trade allowances (6)

 

 

(3,025

)

 

(2

)

 

 

(5,086

)

 

(5

)

System-wide sales of VOIs

 

 

180,564

 

 

100

%

 

 

104,308

 

 

100

%

Less: Fee-Based sales

 

 

(52,474

)

 

(29

)

 

 

(33,159

)

 

(32

)

Gross sales of VOIs

 

 

128,090

 

 

71

 

 

 

71,149

 

 

68

 

Provision for loan losses (2)

 

 

(20,707

)

 

(16

)

 

 

(11,884

)

 

(17

)

Sales of VOIs

 

 

107,383

 

 

59

 

 

 

59,265

 

 

57

 

Cost of VOIs sold (3)

 

 

(7,482

)

 

(7

)

 

 

(3,597

)

 

(6

)

Gross profit (3)

 

 

99,901

 

 

93

 

 

 

55,668

 

 

94

 

Fee-Based sales commission revenue (4)

 

 

35,585

 

 

68

 

 

 

22,119

 

 

67

 

Financing revenue, net of financing expense

 

 

16,929

 

 

9

 

 

 

15,545

 

 

15

 

Other fee-based services, title operations and other, net

 

 

2,741

 

 

2

 

 

 

481

 

 

0

 

Net carrying cost of VOI inventory

 

 

(4,036

)

 

(2

)

 

 

(9,663

)

 

(9

)

Selling and marketing expenses

 

 

(99,261

)

 

(55

)

 

 

(53,613

)

 

(51

)

General and administrative expenses - sales and marketing

 

 

(8,760

)

 

(5

)

 

 

(5,889

)

 

(6

)

Operating profit - sales of VOIs and financing

 

 

43,099

 

 

24

%

 

 

24,648

 

 

24

%

Add: Depreciation and amortization

 

 

1,515

 

 

 

 

 

1,405

 

 

 

Add: Severance and other

 

 

2,403

 

 

 

 

 

208

 

 

 

Adjusted EBITDA - sales of VOIs and financing

 

$

47,017

 

 

 

 

$

26,261

 

 

 

(1)

Developed VOI sales represent sales of VOIs acquired or developed by us. Developed VOI sales do not include Secondary Market sales, Fee-Based sales or Just in Time sales.

(2)

Percentages for provision for loan losses are calculated as a percentage of gross sales of VOIs, which excludes Fee-Based sales (and not as a percentage of system-wide sales of VOIs).

(3)

Percentages for costs of VOIs sold and gross profit are calculated as a percentage of sales of VOIs (and not as a percentage of system-wide sales of VOIs).

(4)

Percentages for Fee-Based sales commission revenue are calculated as a percentage of Fee-Based sales (and not as a percentage of system-wide sales of VOIs).

(5)

Represents the applicable line item, calculated as a percentage of system-wide sales of VOIs unless otherwise indicated in the above footnotes.

(6)

Equity trade allowances are amounts granted to customers upon trading in their existing VOIs in connection with the purchase of additional VOIs. Subject to certain exceptions, equity trade allowances were generally eliminated in June 2020.

BLUEGREEN VACATIONS HOLDING CORPORATION

SALES OF VOIs AND FINANCING SEGMENT- ADJUSTED EBITDA

 

 

 

 

 

 

 

 

 

 

 

For the Nine Months Ended September 30,

 

 

2021

 

2020

 

 

Amount

 

% of

System-

wide sales

of VOIs (5)

 

Amount

 

% of

System-

wide sales

of VOIs (5)

(in thousands)

 

 

 

 

 

 

 

 

Developed VOI sales (1)

 

$

157,992

 

 

35

%

 

$

128,396

 

 

50

%

Secondary Market sales

 

 

143,527

 

 

32

 

 

 

98,576

 

 

39

 

Fee-Based sales

 

 

144,413

 

 

32

 

 

 

97,266

 

 

38

 

Just in Time sales

 

 

16,834

 

 

4

 

 

 

20,453

 

 

8

 

Less: Equity trade allowances (6)

 

 

(11,713

)

 

(3

)

 

 

(89,895

)

 

(35

)

System-wide sales of VOIs

 

 

451,053

 

 

100

%

 

 

254,796

 

 

100

%

Less: Fee-Based sales

 

 

(144,413

)

 

(32

)

 

 

(97,266

)

 

(38

)

Gross sales of VOIs

 

 

306,640

 

 

68

 

 

 

157,530

 

 

62

 

Provision for loan losses (2)

 

 

(51,514

)

 

(17

)

 

 

(44,083

)

 

(28

)

Sales of VOIs

 

 

255,126

 

 

57

 

 

 

113,447

 

 

45

 

Cost of VOIs sold (3)

 

 

(19,675

)

 

(8

)

 

 

(8,734

)

 

(8

)

Gross profit (3)

 

 

235,451

 

 

92

 

 

 

104,713

 

 

92

 

Fee-Based sales commission revenue (4)

 

 

96,921

 

 

67

 

 

 

64,619

 

 

66

 

Financing revenue, net of financing expense

 

 

47,854

 

 

11

 

 

 

46,658

 

 

18

 

Other fee-based services, title operations and other, net

 

 

6,375

 

 

1

 

 

 

2,364

 

 

1

 

Net carrying cost of VOI inventory

 

 

(17,927

)

 

(4

)

 

 

(28,490

)

 

(11

)

Selling and marketing expenses

 

 

(244,392

)

 

(54

)

 

 

(155,597

)

 

(61

)

General and administrative expenses - sales and marketing

 

 

(24,559

)

 

(5

)

 

 

(19,372

)

 

(8

)

Operating profit - sales of VOIs and financing

 

 

99,723

 

 

22

%

 

 

14,895

 

 

6

%

Add: Depreciation and amortization

 

 

4,351

 

 

 

 

 

4,447

 

 

 

Add: Severance and other

 

 

2,403

 

 

 

 

 

3,977

 

 

 

Adjusted EBITDA - sales of VOIs and financing

 

$

106,477

 

 

 

 

$

23,319

 

 

 

(1)

Developed VOI sales represent sales of VOIs acquired or developed by us. Developed VOI sales do not include Secondary Market sales, Fee-Based sales or Just in Time sales.

(2)

Percentages for provision for loan losses are calculated as a percentage of gross sales of VOIs, which excludes Fee-Based sales (and not as a percentage of system-wide sales of VOIs).

(3)

Percentages for costs of VOIs sold and gross profit are calculated as a percentage of sales of VOIs (and not as a percentage of system-wide sales of VOIs).

(4)

Percentages for Fee-Based sales commission revenue are calculated as a percentage of Fee-Based sales (and not as a percentage of system-wide sales of VOIs).

(5)

Represents the applicable line item, calculated as a percentage of system-wide sales of VOIs unless otherwise indicated in the above footnotes.

(6)

Equity trade allowances are amounts granted to customers upon trading in their existing VOIs in connection with the purchase of additional VOIs. Subject to certain exceptions, equity trade allowances were generally eliminated in June 2020.

 

Contacts

Bluegreen Vacations Holding Corporation Contact Info

Investor Relations: Leo Hinkley, Managing Director, Investor Relations Officer

Telephone: 954-399-7193

Email: Leo.Hinkley@BVHcorp.com

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