We Provi vide de Advic ice e When n Your ur Busin iness ess Needs ds It Not t Just t When n You u Ask For It! BLUEGREEN GREEN VACATIO IONS NS FOURTH TH QUARTER ER 2018 8 RE RESULTS TS FEBRUARY Y 22, , 2019
FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements based largely on current expectations of Bluegreen Vacations (“Bluegreen” or “The Company”), that involve a number of risks and uncertainties. All opinions, forecasts, projections, future plans or other statements, other than statements of historical fact, are forward-looking statements and can be identified by the use of words or phrases such as "plans," "believes," "will," "expects," "anticipates," "intends," "estimates," "our view," "we see," "would" and words and phrases of similar meaning. The forward-looking statements in presentation are also 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, and involve substantial risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control. We can give no assurance that such expectations will prove to have been correct. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. This presentation also contains information regarding the past performance of the Bluegreen Vacations, and you should note that prior or current performance is not a guarantee or indication of future performance. Some factors which may affect the accuracy of the forward-looking statements apply generally to the resort development and vacation ownership industries in which Bluegreen operates. Risks and uncertainties include, without limitation, risks associated with the ability to successfully implement currently anticipated plans and generate earnings, long term growth, and increased shareholder value; risks inherent in the vacation ownership industry, including the risk that Bluegreen's marketing expenses will increase or that marketing alliances will not contribute to growth or be successful; and the risk that Bluegreen’s capital-light business activities or other operations may not be successful because of changes in economic conditions or otherwise; the risk that Bluegreen may not achieve EBITDA growth or increased margins; the risk that revenue streams will not be recurring, long-term, or sustainable; risks relating to the economic conditions generally or in the vacations ownership, rental, and travel industries; risks of adverse changes in relationships with strategic partners and other third parties; risks of decreased demand from purchasers or the ability to maintain an optimal inventory of VOI’s for sale; risks of changes in senior management; the risk that dividends on our common stock will not be declared or that shares will not be repurchased at current levels or at all; the risk that acquisitions will not be successful; risks related to the timing and success of sales office expansions; risks associated with the impact of hurricanes and other natural disasters or other adverse events outside of our control; and the risk that the Bluegreen's strategy to grow profitability and increase long-term value may not be realized as anticipated, if at all. Additional risks and uncertainties are described in Bluegreen’s filings with the Securities and Exchange Commission available to view on the SEC's website, www.sec.gov, and on Bluegreen Vacation's website, ir.bluegreenvacations.com/. You should not place undue reliance on any forward-looking statement, which speaks only as of the date made. Bluegreen Vacations cautions that the foregoing factors are not exclusive, and we do not undertake, and specifically disclaim any obligation, to update or supplement any forward-looking statements whether as a result of changes in circumstances, new information, subsequent events or otherwise. 1
BLUEGREEN VACATIONS OVERVIEW 1994 1994 Entered Vacation Ownership Industry 69 Resor 69 R esorts ts (1) 45 Club Resorts 24 Club Associate Resorts ~216,000 ~216,000 (1) Vacation Club Owners ~238,000 238,000 (2) Tours Annually 71 71% (2) Capital-Light Revenue 48% 48 % (2) Sales to New Customers $738 million (2) $738 million Revenue $142 million $142 million (2) (3) Solara Surfside | Miami Beach, Florida Adjusted EBITDA (1) Data as of 12/31/18. (2) Year ended 12/31/18. 2 (3) See appendix for a reconciliation of Adjusted EBITDA to Net Income of $88 million for the year ended 12/31/18.
4Q18 HIGHLIGHTS 1 Total revenue decreased by 2.4% to $173.7 million Earnings per share fell 70.3% to $0.27. Excluding a $0.66 tax benefit in the prior 2 year due to the Tax Cuts and Jobs Act, earnings per share grew 8% Resort Operations and Club Management revenue increased 12.4% year-over-year to 3 $41.1; segment adjusted EBITDA increased 9.5% to $12.5 million Improved average sales price per transaction and sales volume per guest by 6.3% 4 and 0.9%, respectively 5 Authorized share repurchase program for up to 3 million shares Completed a $117.7 million securitization of investment-grade vacation ownership 6 loan-backed notes. 3 3
(1) PERFORMANCE FOURTH QUARTER ($ in millions, except per share data) System em-Wi Wide de Sales of VO VOIs Tota tal l Reven venue ue $155 $180 $151.9 $177.9 $178 $150 (3.9 .9)% )% (2.4 .4%) %) $176 $146.0 $173.7 $174 $145 $172 $140 $170 4Q 2017 4Q 2018 4Q 2017 4Q 2018 Adju justed ed EBITD TDA (2) Earnin rnings Per r Share $40 $1.00 $0.91 $35.5 $0.80 $35 (10.7 .7)% )% $0.60 (70.3 .3)% )% $31.7 $0.40 $30 $0.27 $0.20 $25 $0.00 4Q 2017 4Q 2018 4Q 2017 4Q 2018 (1) Three months ended 12/31/18. 4 (2) See appendix for reconciliations.
(1) PERFORMANCE FULL YEAR 2018 ($ in millions, except per share data) System em-Wi Wide de Sales of VO VOIs Tota tal l Reven venue ue $630 $738.3 $740 $624.1 $625 2.1 .1% $730 0.8 .8% $619.3 $620 $723.1 $720 $615 $610 $710 2017 2018 2017 2018 Adju justed ed EBITD TDA (2) Earnin rnings Per r Share $155 $2.00 $150.3 $1.77 $1.80 $150 (5.7 .7)% )% (33.3 .3)% )% $1.60 $145 $141.8 $1.40 $140 $1.18 $1.20 $135 $1.00 2017 2018 2017 2018 (1) Year ended 12/31/18. 5 (2) See appendix for reconciliations.
(1) RECURRING REVENUE MIX FOURTH QUARTER ($ in millions) Resort Operations and Club Financing Revenue: Interest Other Recurring Revenue Management Revenue Income $42 $20.2 $41.1 $20.1 $5.5 $5.2 $5.0 (15.4 .4)% )% $40 $20.0 $4.4 $1.4 $4.5 1.9 .9% $4.0 12.4 .4% $1.6 $38 $19.8 $3.5 $19.7 $3.0 $36.5 $2.5 $3.8 $36 $19.6 $2.0 $2.9 $1.5 $34 $19.4 $1.0 4Q 2017 4Q 2018 4Q 2017 4Q 2018 4Q 2017 4Q 2018 Title Revenue Mortgage Servicing Revenue 6 (1) Three months ended 12/31/18.
(1) RECURRING REVENUE MIX FULL YEAR 2018 ($ in millions) Resort Operations and Club Financing Revenue: Interest Other Recurring Revenue Management Revenue Income $170 $80.0 $168.4 $22 $79.7 $19.9 (0.4 .4)% )% $165 (9.0 .0)% )% $20 $79.5 $79.4 $18.2 $160 $18 $5.2 12.4 .4% $155 $79.0 $16 $6.0 $149.7 $14 $150 $78.5 $14.7 $12 $145 $12.2 $10 $140 $78.0 2017 2018 2017 2018 2017 2018 Title Revenue Mortgage Servicing Revenue 7 (1) Year ended 12/31/18.
(1) FLEXIBLE BUSINESS MODEL Increased capital-light revenue to 71% of total Sales on behalf of Fee-Based Service clients were 51% of system-wide sales in 2018 2018 2018 2017 2017 2017 2017 2018 2018 31% 29% 51% 53% 47% 49% 71% 69% Capital Light Developed Fee-Based Service Sales Other VOI Sales Achieved a balanced sales mix between Realized 42% of sales in cash within new and existing customers 30 days of sale in 2018 2017 2017 2018 2018 2017 2017 2018 2018 48% 51% 42% 43% 57% 49% 52% 58% New Customers Existing Customers Financed Sales Cash Sales 8 (1) Years ended 12/31/17 and 12/31/18.
STRONG LIQUIDITY POSITION ($ in millions) LIQUID IDIT ITY Y PRO ROFI FILE LE LIQUID UIDIT ITY Y POSIT ITION ION As of December 31, 2018, Bluegreen had total availability (1) of $193.3 Avail ilab abil ility ity (2) 2) Unrestr tric icted ted Cash Free ree Cash Flow (1) 1) million under its $365.0 million of Under der Credit it Lines credit and receivable purchase $240 $225 $55 facilities $219. 6 $219.4 $220 $220 $51.9 $193. Non-receivable-backed debt to $200 $215 3 equity of 0.43:1 at 12/31/18 vs 0.39:1 $210 $180 at 12/31/17 $50 $205 $160 Strong track record of producing free $200 $140 $197.3 cash flow (“FCF”) and significant cash $195 $44.3 on hand $120 $45 $190 $100 During the fourth quarter, completed $185 $80 $117.7 million securitization of investment-grade vacation ownership $40 loan-backed notes 2017 2018 (1) Year ended 12/31/18. (2) Subject to eligible collateral and terms and conditions of each facility. 9
APPENDIX For more information, see Earnings Release dated February 22, 2019 and Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on or about March 1, 2019.
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