Bluegreen Vacations Reports Financial Results for First Quarter 2023
Key Highlights as of and for the Quarter Ended March 31, 2023:
-
Net income attributable to shareholders decreased
28% to$11.5 million $16.0 million -
Diluted Earnings Per Share (“EPS”) decreased
7% to$0.71 $0.76 -
Total revenue increased
13% to$219.1 million $195.1 million -
System-wide sales of vacation ownership interests (“VOIs”) increased
10% to$166.9 million $151.5 million -
Number of guest tours increased
6% to 51,749 from 48,861 in the prior year quarter. - Vacation packages sold were 40,780 compared to 41,990 in the prior year quarter.
- Vacation packages outstanding of 166,597 as of March 31, 2023, compared to 165,240 as of December 31, 2022, and 200,627 outstanding as of March 31, 2022.
-
Adjusted EBITDA attributable to shareholders decreased
3% to$30.1 million $31.1 million -
Free cash flow was an outflow of
$27.7 million $24.6 million - In April 2023, Bluegreen/Big Cedar Vacations LLC, a joint venture between the Company and Bass Pro Shops, acquired Branson Cedars Resort, an 80-acre property adjacent to the joint venture’s Wilderness Club at Big Cedar Resort. The acquisition marks the fourth resort the Company has added to its portfolio within the last six months.
| (1) | See appendix for reconciliation of system-wides sales of VOIs to gross sales of VOIs for each respective period. |
| (2) | See appendix for reconciliation of Adjusted EBITDA attributable to shareholders to net income attributable to shareholders for each respective period. |
| (3) | See appendix for reconciliation of free cash flow to net cash provided by operating activities. |
Alan B. Levan, Chairman and Chief Executive Officer of Bluegreen Vacations Holding Corporation, commented, “We are pleased that the Bluegreen Renewal is working as anticipated – sales volume is up, sales volume per guest is up, guest tours are up and we are exceeding our internal budget on operating margin. The fact that our EPS and Adjusted EBITDA are down is a function of several identifiable items which we budgeted for in November and believe will resolve in the coming months. These include our purchases of additional inventory which have short-term carrying costs to the Company, start-up operations related to the opening of a new sales center, resorts temporarily closed as a consequence of weather and other events, and increased staffing in anticipation of future higher sales volume. Additionally, during the first quarter of 2023 a higher proportion of VOI sales were financed by us, resulting in a higher provision for loan losses as a percentage gross sales of VOIs.”
“In July 2022, we acquired a resort in
“During 2022, we announced that several of our resorts were impacted by weather or other catastrophic issues forcing partial or entire closure of the resort and the movement of staff, owners and guests to other resorts. A number of these resorts were still impacted and not fully open during the first quarter of 2023. The staff resources to rehabilitate these resorts have been a Herculean effort. Some are still impacted, but we expect all resorts to be fully operational during the coming months of 2023.”
“Turning to our first quarter results, our sales team again generated a first quarter record
“Our sales of VOIs are driven by the success of our marketing programs, and Bluegreen’s marketing to new customers generally begins with the sale of a vacation package to a prospect. During the first quarter of 2023, we sold 40,780 vacation packages, a decrease from the 41,990 we sold in the first quarter of 2022. We consider this quite a positive achievement considering we closed or went virtual on 52 marketing locations on January 1, 2023. During the first quarter, we continued to invest in and expand our marketing and sales operations to ensure we are properly staffed for the volume we expect to see during the summer travel season. This spend in the short term resulted in higher sales and marketing expenses in the first quarter and while our selling and marketing cost as a percentage of system-wide sales of VOIs was consistent this quarter with the first quarter of 2022, we believe profitability will increase in the future.”
“As of March 31, 2023, our notes receivable portfolio again hit an all-time record high balance of
“Not to be overlooked, our Resort Management and Club Operations segment grew its Adjusted EBITDA by
“I’m also pleased that we were able to increase our quarterly dividend to our shareholders by over
“Overall, the demand for vacations by Bluegreen Vacation Club owners has been and remains strong and we believe our core strategy of primarily offering a ‘drive-to’ network of resorts will continue to serve as a growth driver. From a balance sheet perspective, we believe that we are well positioned to help us navigate uncertain economic conditions with approximately
Financial Results (dollars in millions, except per guest and per transaction amounts) |
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|
Three Months Ended March 31, |
|
|
|
|||||
|
2023 |
|
2022 |
|
Q1 2023 vs Q1 2022 % Change |
||||
|
|
|
|
|
|
|
|
|
|
Total revenue |
$ |
219.1 |
|
$ |
195.1 |
|
12 |
|
% |
Income before non-controlling interest and provision for income taxes |
$ |
19.9 |
|
$ |
25.4 |
|
(22 |
) |
% |
Adjusted EBITDA Attributable to Shareholders (1) |
$ |
30.1 |
|
$ |
31.1 |
|
(3 |
) |
% |
Adjusted EBITDA Attributable to Shareholders was
Sales of VOIs and Financing Segment (dollars in millions, except per guest and per transaction amounts) |
|||||||||||
|
Three Months Ended March 31, |
|
|
|
|||||||
|
2023 |
|
2022 |
|
Q1 2023 vs Q1 2022 % Change |
||||||
|
|
|
|
|
|
|
|
|
|||
System-wide sales of VOIs |
$ |
166.9 |
|
|
$ |
151.5 |
|
|
10 |
|
% |
Segment Adjusted EBITDA |
$ |
34.7 |
|
|
$ |
35.7 |
|
|
(3 |
) |
% |
Provision for loan losses |
|
17 |
% |
|
|
14 |
% |
|
300 |
|
bp |
Cost of VOIs sold |
|
12 |
% |
|
|
12 |
% |
|
— |
|
bp |
Financing revenue, net of financing expense |
$ |
21.1 |
|
|
$ |
18.7 |
|
|
13 |
|
% |
Key Data Regarding Bluegreen’s System-wide sales of VOIs and Gross Profit |
||||||||||
|
Three Months Ended March 31, |
|
|
|
||||||
|
2023 |
|
2022 |
|
Q1 2023 vs Q1 2022 % Change |
|||||
|
|
|
|
|
|
|
|
|
||
System-wide sales of VOIs |
$ |
166.9 |
|
|
$ |
151.5 |
|
|
10 |
% |
Number of total guest tours |
|
51,749 |
|
|
|
48,861 |
|
|
6 |
% |
Average sales price per transaction |
$ |
21,916 |
|
|
$ |
20,226 |
|
|
8 |
% |
Sales to tour conversion ratio |
|
15 |
% |
|
|
15 |
% |
|
— |
bp |
Sales volume per guest ("VPG") |
$ |
3,225 |
|
|
$ |
3,110 |
|
|
4 |
% |
Selling and marketing expenses, as a % of system-wide sales of VOIs |
|
55 |
% |
|
|
55 |
% |
|
— |
bp |
Provision for loan losses |
|
17 |
% |
|
|
14 |
% |
|
300 |
bp |
Cost of VOIs sold |
|
12 |
% |
|
|
12 |
% |
|
— |
bp |
System-wide sales of VOIs increased
Fee-based Sales Commission Revenue
VOI sales of third-party inventory, for which we earn a commission, represented
VOI sales of third-party inventory, for which we earn a commission, are expected to be between
Provision for Loan Losses
The provision for loan losses as a percentage of gross sales of VOIs was approximately
The provision for loan losses is expected to be between
Cost of VOIs Sold
Cost of VOIs sold represented
Cost of VOIs sold is expected to be between
Financing Revenue, net of Financing Expense
Interest income on VOI notes receivable increased
Selling and Marketing Expenses
|
|
|
|
|
|
|
|
|
|||
|
Three Months Ended March 31, |
|
|
|
|||||||
|
2023 |
|
2022 |
|
Q1 2023 vs Q1 2022 % Change |
||||||
|
|
|
|
|
|
|
|
|
|||
Selling and marketing expenses, as a % of system-wide sales of VOIs |
|
55 |
% |
|
|
55 |
% |
|
— |
|
bp |
Percentage of sales of VOIs to new customers |
|
39 |
% |
|
|
43 |
% |
|
(400 |
) |
bp |
Number of Bass Pro and Cabela's marketing locations (1) |
|
129 |
|
|
|
128 |
|
|
1 |
|
% |
Number of total guest tours |
|
51,749 |
|
|
|
48,861 |
|
|
6 |
|
% |
Number of vacation packages sold |
|
40,780 |
|
|
|
41,990 |
|
|
(3 |
) |
% |
Number of vacation packages outstanding, end of the period (2) |
|
166,597 |
|
|
|
200,627 |
|
|
(17 |
) |
% |
| (1) | As of January 1, 2023, 23 of our Cabela’s marketing locations were converted to unmanned, virtual kiosks. |
| (2) | 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 and purchased. |
Selling and marketing expenses increased
As previously disclosed, Bluegreen transitioned its kiosks at certain Cabela’s stores to an unmanned, virtual format as of January 1, 2023 and exited certain kiosks at malls. Even with this reduction of locations, Bluegreen’s vacation marketing programs generated 40,780 vacation packages during the first quarter of 2023. This reflects a decrease of approximately
Selling and marketing expenses are expected to be between
General & Administrative Expenses from Sales & Marketing Operations
General and administrative expenses representing expenses directly attributable to sales and marketing operations increased
General and administrative expenses representing expenses directly attributable to sales and marketing operations as a percentage of sales are expected to be between
Resort Operations and Club Management Segment (dollars in millions) |
||||||||
|
Three Months Ended March 31, |
|
|
|
||||
|
2023 |
|
2022 |
|
Q1 2023 vs Q1 2022 % Change |
|||
|
|
|
|
|
|
|
|
|
Resort operations and club management revenue |
$ |
51.6 |
|
$ |
46.2 |
|
12 |
% |
Segment adjusted EBITDA |
$ |
22.6 |
|
$ |
20.6 |
|
10 |
% |
Resorts managed |
|
50 |
|
|
49 |
|
2 |
% |
The increases in the first quarter 2023 in Resort operations and club management revenue and Adjusted EBITDA primarily reflect an increase in management fees, higher reimbursed HOA resort operating costs and an additional resort management contract, partially offset by higher labor costs of providing such services.
Corporate Overhead, Administrative Expenses and Interest Expense
Corporate General and Administrative Expenses
General and administrative expenses increased
Interest Expense
Interest expense not related to receivable-backed debt was
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, 2022, which was filed with the SEC on March 13, 2023, and its Quarterly Report on Form 10- Q for the three months ended March 31, 2023, which is expected to be filed with the SEC on or about May 4, 2023, 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 Bluegreen Vacations:
Bluegreen Vacations Holding Corporation (NYSE: BVH; OTCQX: BVHBB) 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, deeded vacation ownership plan with 71 Club and Club Associate Resorts and access to nearly 11,200 other hotels and resorts through partnerships and exchange networks.
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 import. 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 benefits to the Company, if any, of repurchasing shares, the timing of any share repurchases, and the availability of funds for the repurchase of shares; the risk that quarterly dividend payments may not be declared at the current level in the future, on a regular basis as anticipated, or at all; risks relating to Bluegreen’s business, operations, financial results, business strategy and prospects; risks related to general economic conditions, including increasing interest rates, inflationary trends, a potential recession and supply chain issues, and our ability to successfully navigate any adverse condition; competitive conditions; labor market conditions, including costs and shortages of labor, and its impact on Bluegreen’s operations and sales; risks related to changes made to our vacation package programs and their impact on sales, including that the goal of improving the efficiency of Bluegreen’s marketing spend may not result in the benefits anticipated; risks related to our investments in sales and marketing efforts and infrastructure, including their impact on our cash flow and the risk that they may not result in the benefits anticipated; risks related to resort acquisitions and our pursuit of acquisition and development opportunities, including that acquired resorts may not open when planned, the costs and risks of development and renovation activities, including potential construction delays and environmental issues, that we may not be successful in identifying or consummating acquisition or development opportunities in the future, and that acquired or developed resorts may not be successfully operated or result in the benefits anticipated; risks relating to our liquidity and the availability of capital; the risk that our allowance for loan losses may not be adequate and, accordingly, may need to be increased in the future, including if Bluegreen’s default rates increase and exceed expectations; risks related to Bluegreen’s efforts to address the actions of timeshare exit firms and the increase in default rates associated therewith are not successful, or otherwise; risks related to our indebtedness, including the potential for accelerated maturities and debt covenant violations; the impact of public health and general economic conditions, including inflation, on Bluegreen’s consumers, including their income and level of discretionary spending, and on consumer traffic at retail locations; the risk that our core strategy of primarily offering a ‘drive-to’ network of resorts will not continue to serve as a growth driver; the risk that resort operations and club management segment may not continue to produce recurring EBITDA and free cash flow; risks that Bluegreen’s current or future marketing alliances and arrangements, including its marketing arrangements with Bass Pro, NASCAR and the Choice Hotels program, may not be renewed and will expire pursuant to their terms and may not be profitable; 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 efforts to reactivate older vacation packages which have not been used may not be successful; the risk that resort occupancies may not continue at current or historical levels or meet expectations; our ability to successfully implement strategic plans and initiatives, generate earnings and long-term growth may not result in increased sales, revenues or efficiencies, or otherwise be successful; risks that construction defects, structural failures or natural disasters at or in proximity to Bluegreen’s resort; risks related to expansion of the resort network in existing and to new locations, including that such expansion may not be successful and may increase the Company’s debt and decrease the Company’s free cash flow; risks related to the mix of sales to new customers and existing owners, including that the level of sales to new customers may not be increased or maintained, or support net owner growth in the future; 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, 2022 (including the “Risk Factors” section thereof), which was filed on March 13, 2023, and the Company’s Quarterly Report on Form 10-Q for the three months ended March 31, 2023, which is expected to be filed on May 4, 2023. 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) |
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|
|
March 31, |
|
December 31, |
||||
|
|
2023 |
|
2022 |
||||
ASSETS |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
166,663 |
|
|
$ |
175,683 |
|
Restricted cash ( |
|
|
|
|
|
|
||
and December 31, 2022, respectively) |
|
|
43,835 |
|
|
|
50,845 |
|
Notes receivable |
|
|
789,114 |
|
|
|
763,801 |
|
Less: Allowance for loan losses |
|
|
(214,796 |
) |
|
|
(211,311 |
) |
Notes receivable, net ( |
|
|
|
|
|
|
||
at March 31, 2023 and December 31, 2022, respectively) |
|
|
574,318 |
|
|
|
552,490 |
|
Vacation ownership interest ("VOI") inventory |
|
|
380,817 |
|
|
|
389,864 |
|
Property and equipment, net |
|
|
86,228 |
|
|
|
85,915 |
|
Intangible assets, net |
|
|
61,293 |
|
|
|
61,293 |
|
Operating lease assets |
|
|
21,717 |
|
|
|
22,963 |
|
Prepaid expenses |
|
|
34,686 |
|
|
|
23,833 |
|
Other assets |
|
|
31,586 |
|
|
|
35,499 |
|
Total assets |
|
$ |
1,401,143 |
|
|
$ |
1,398,385 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND EQUITY |
|
|
|
|
|
|
||
Liabilities |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
15,477 |
|
|
$ |
21,389 |
|
Deferred income |
|
|
15,537 |
|
|
|
15,675 |
|
Accrued liabilities and other |
|
|
87,230 |
|
|
|
110,048 |
|
Receivable-backed notes payable - recourse |
|
|
20,082 |
|
|
|
20,841 |
|
Receivable-backed notes payable - non-recourse (in VIEs) |
|
|
468,375 |
|
|
|
440,781 |
|
Note payable to BBX Capital, Inc. |
|
|
50,000 |
|
|
|
50,000 |
|
Note payable and other borrowings |
|
|
207,547 |
|
|
|
218,738 |
|
Junior subordinated debentures |
|
|
136,296 |
|
|
|
136,011 |
|
Operating lease liabilities |
|
|
26,354 |
|
|
|
27,716 |
|
Deferred income taxes |
|
|
116,806 |
|
|
|
113,193 |
|
Total liabilities |
|
|
1,143,704 |
|
|
|
1,154,392 |
|
Commitments and Contingencies |
|
|
|
|
|
|
||
Equity |
|
|
|
|
|
|
||
Preferred stock of |
|
|
— |
|
|
|
— |
|
Class A Common Stock of |
|
|
|
|
|
|
||
issued and outstanding 12,204,198 in 2023 and 12,165,825 in 2022 |
|
|
122 |
|
|
|
122 |
|
Class B Common Stock of |
|
|
|
|
|
|
||
issued and outstanding 3,664,117 in 2023 and 2022 |
|
|
37 |
|
|
|
37 |
|
Additional paid-in capital |
|
|
48,270 |
|
|
|
46,821 |
|
Accumulated earnings |
|
|
132,771 |
|
|
|
124,680 |
|
Total Bluegreen Vacations Holding Corporation equity |
|
|
181,200 |
|
|
|
171,660 |
|
Non-controlling interest |
|
|
76,239 |
|
|
|
72,333 |
|
Total equity |
|
|
257,439 |
|
|
|
243,993 |
|
Total liabilities and equity |
|
$ |
1,401,143 |
|
|
$ |
1,398,385 |
|
BLUEGREEN VACATIONS HOLDING CORPORATION CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (In thousands, except share data) |
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|
|
|
|
|
|
|
||
|
|
For the Three Months Ended |
||||||
|
|
March 31, |
||||||
|
|
2023 |
|
2022 |
||||
Revenue: |
|
|
|
|
|
|
||
Gross sales of VOIs |
|
$ |
148,859 |
|
|
$ |
115,607 |
|
Provision for loan losses |
|
|
(25,246 |
) |
|
|
(16,579 |
) |
Sales of VOIs |
|
|
123,613 |
|
|
|
99,028 |
|
Fee-based sales commission revenue |
|
|
11,691 |
|
|
|
24,084 |
|
Other fee-based services revenue |
|
|
33,301 |
|
|
|
31,207 |
|
Cost reimbursements |
|
|
21,369 |
|
|
|
18,064 |
|
Interest income |
|
|
28,834 |
|
|
|
22,198 |
|
Other income, net |
|
|
265 |
|
|
|
548 |
|
Total revenues |
|
|
219,073 |
|
|
|
195,129 |
|
Costs and Expenses: |
|
|
|
|
|
|
||
Cost of VOIs sold |
|
|
15,331 |
|
|
|
11,841 |
|
Cost of other fee-based services |
|
|
14,582 |
|
|
|
12,765 |
|
Cost reimbursements |
|
|
21,369 |
|
|
|
18,064 |
|
Interest expense |
|
|
16,469 |
|
|
|
7,759 |
|
Selling, general and administrative expenses |
|
|
131,438 |
|
|
|
119,302 |
|
Total costs and expenses |
|
|
199,189 |
|
|
|
169,731 |
|
Income before income taxes |
|
|
19,884 |
|
|
|
25,398 |
|
Provision for income taxes |
|
|
(4,479 |
) |
|
|
(6,190 |
) |
Net income |
|
|
15,405 |
|
|
|
19,208 |
|
Less: Income attributable to non-controlling interests |
|
|
3,906 |
|
|
|
3,220 |
|
Net income attributable to shareholders |
|
$ |
11,499 |
|
|
$ |
15,988 |
|
|
|
|
|
|
|
|
||
Comprehensive income attributable to shareholders |
|
$ |
11,499 |
|
|
$ |
15,988 |
|
|
|
|
|
|
|
|
||
Basic earnings per share (1) |
|
$ |
0.73 |
|
|
$ |
0.77 |
|
Diluted earnings per share (1) |
|
$ |
0.71 |
|
|
$ |
0.76 |
|
Basic weighted average number of common shares outstanding |
|
|
15,860 |
|
|
|
20,778 |
|
Diluted weighted average number of common and common equivalent shares outstanding |
|
|
16,246 |
|
|
|
20,971 |
|
Cash dividends declared per Class A and B common shares |
|
$ |
0.20 |
|
|
$ |
— |
|
| (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
|
||||||
|
2023 |
|
2022 |
|||
(in thousands) |
|
|
|
|
||
Net income attributable to shareholders |
$ |
11,499 |
|
|
15,988 |
|
Net income attributable to the non-controlling interest in Bluegreen/Big Cedar Vacations |
|
3,906 |
|
|
3,220 |
|
Net Income |
|
15,405 |
|
|
19,208 |
|
Add: Depreciation and amortization |
|
3,972 |
|
|
3,922 |
|
Less: Interest income (other than interest earned on |
|
|
|
|
||
VOI notes receivable) |
|
(872 |
) |
|
(62 |
) |
Add: Interest expense - corporate and other |
|
9,628 |
|
|
4,364 |
|
Add: Provision for income taxes |
|
4,479 |
|
|
6,190 |
|
EBITDA |
|
32,612 |
|
|
33,622 |
|
Add: Share-based compensation expense |
|
1,457 |
|
|
746 |
|
Gain on assets held for sale |
|
(19 |
) |
|
(44 |
) |
Adjusted EBITDA |
|
34,050 |
|
|
34,324 |
|
Adjusted EBITDA attributable to the non-controlling interest |
|
(3,963 |
) |
|
(3,269 |
) |
Adjusted EBITDA attributable to shareholders |
$ |
30,087 |
|
|
31,055 |
|
The Company defines EBITDA as earnings, or net income, before taking into account income tax, interest income (excluding interest earned on VOI notes receivable), interest expense (excluding interest expense incurred on debt secured by VOI notes receivable), and depreciation and amortization. The Company defines Adjusted EBITDA as EBITDA, adjusted to exclude amounts of loss (gain) on assets held for sale, share-based compensation expense, and items that the Company believes are not representative of ongoing operating results. Adjusted EBITDA Attributable to Shareholders is Adjusted EBITDA excluding amounts attributable to the non-controlling interest in Bluegreen/Big Cedar Vacations (in which Bluegreen owns a
The Company considers EBITDA, Adjusted EBITDA, and Adjusted EBITDA Attributable to Shareholders to be indicators of 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 or any other measure of financial performance or liquidity, including cash flow, derived in accordance with GAAP, or to any other method or analyzing 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, working capital needs; (ii) interest expense, or the cash requirements necessary to service interest or principal payments on indebtedness (other than as noted above); (iii) tax expense or the cash requirements to pay 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 does not believe to be indicative of future operations or performance. Further, although depreciation and amortization are non-cash charges, the assets being depreciated and amortized often have to be replaced in the future, and EBITDA, Adjusted EBITDA and Adjusted EBITDA Attributable to Shareholders do not reflect any cash that may be required 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) |
|||||
|
|
|
|
|
|
|
For the Three Months Ended
|
||||
(in thousands) |
2023 |
|
2022 |
||
Gross sales of VOIs |
$ |
148,859 |
|
$ |
115,607 |
Add: Fee-Based sales |
|
18,087 |
|
|
35,937 |
System-wide sales of VOIs |
$ |
166,946 |
|
$ |
151,544 |
| (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. |
BLUEGREEN VACATIONS HOLDING CORPORATION FREE CASH FLOW RECONCILIATION (1) |
|||||||
|
|
|
|
|
|
||
|
For the Three Months Ended
|
||||||
(in thousands) |
2023 |
|
2022 |
||||
Net cash (used in) provided by operating activities |
$ |
(23,748 |
) |
|
$ |
29,492 |
|
Purchases of property and equipment |
|
(3,924 |
) |
|
|
(4,895 |
) |
Free Cash Flow |
$ |
(27,672 |
) |
|
$ |
24,597 |
|
| (1) | Free cash flow is a non-GAAP measure 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 March 31, |
||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
||||||
|
|
Amount |
|
% of System-
|
|
Amount |
|
% of
|
||||||
(in thousands) |
|
|
|
|
|
|
|
|
|
|
||||
Bluegreen owned VOI sales(1) |
|
$ |
148,859 |
|
|
89 |
|
|
$ |
115,607 |
|
|
76 |
|
Fee-Based VOI sales |
|
|
18,087 |
|
|
11 |
|
|
|
35,937 |
|
|
24 |
|
System-wide sales of VOIs |
|
|
166,946 |
|
|
100 |
|
|
|
151,544 |
|
|
100 |
|
Less: Fee-Based sales |
|
|
(18,087 |
) |
|
(11 |
) |
|
|
(35,937 |
) |
|
(24 |
) |
Gross sales of VOIs |
|
|
148,859 |
|
|
89 |
|
|
|
115,607 |
|
|
76 |
|
Provision for loan losses (2) |
|
|
(25,246 |
) |
|
(17 |
) |
|
|
(16,579 |
) |
|
(14 |
) |
Sales of VOIs |
|
|
123,613 |
|
|
74 |
|
|
|
99,028 |
|
|
65 |
|
Cost of VOIs sold (3) |
|
|
(15,331 |
) |
|
(12 |
) |
|
|
(11,841 |
) |
|
(12 |
) |
Gross profit (3) |
|
|
108,282 |
|
|
88 |
|
|
|
87,187 |
|
|
88 |
|
Fee-Based sales commission revenue (4) |
|
|
11,691 |
|
|
65 |
|
|
|
24,084 |
|
|
67 |
|
Financing revenue, net of financing expense |
|
|
21,121 |
|
|
13 |
|
|
|
18,741 |
|
|
12 |
|
Other expense |
|
|
(699 |
) |
|
0 |
|
|
|
(152 |
) |
|
0 |
|
Other fee-based services, title operations and other, net |
|
|
1,285 |
|
|
1 |
|
|
|
2,130 |
|
|
1 |
|
Net carrying cost of VOI inventory |
|
|
(4,981 |
) |
|
(3 |
) |
|
|
(4,056 |
) |
|
(3 |
) |
Selling and marketing expenses |
|
|
(92,527 |
) |
|
(55 |
) |
|
|
(83,889 |
) |
|
(55 |
) |
General and administrative expenses - sales and marketing |
|
|
(11,499 |
) |
|
(7 |
) |
|
|
(9,961 |
) |
|
(7 |
) |
Operating profit - sales of VOIs and financing |
|
|
32,673 |
|
|
20 |
% |
|
|
34,084 |
|
|
22 |
% |
Add: Depreciation and amortization |
|
|
2,035 |
|
|
|
|
|
1,649 |
|
|
|
||
Add: Loss on sale of assets |
|
|
19 |
|
|
|
|
|
— |
|
|
|
||
Adjusted EBITDA - sales of VOIs and financing |
|
$ |
34,727 |
|
|
|
|
$ |
35,733 |
|
|
|
||
(1) |
Bluegreen owned sales represent sales of VOIs acquired or developed by Bluegreen. |
(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. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230504005257/en/
Bluegreen Vacations Holding Corporation Contact Info
Investor Relations: Leo Hinkley, Managing Director, Investor Relations Officer
Telephone: 954-399-7193
Email: Leo.Hinkley@BVHcorp.com
Source: Bluegreen Vacations Holding Corporation
