We Provide Advice When Your Business Needs It Not Just When You Ask For It! BLUEGREEN VACATIONS SECOND QUARTER 2018 RESULTS AUGUST 2, 2018
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; 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 at current levels or at all; the risk that acquisitions will not be successful; risk related to the timing and success of sales office expansions; 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 R 69 Resor esorts ts (1 (1) 45 Club Resorts 24 Club Associate Resorts ~215,000 (1 ~215,000 (1) Vacation Club Owners 244,000 244,000+ (2 (2) Tours Annually 71% (2 71 (2) Capital-Light Revenue 50 50%+ %+ (2 (2) Sales to New Customers $736 million (2 $736 million (2) Revenue $150 million $150 million (2 (2) ) (3 (3) Solara Surfside | Miami Beach, Florida Adjusted EBITDA (1) Data as of 6/30/18. (2) LTM period ended 6/30/18. Reflects retrospective impact of ASU 2014- 09 “Revenue from Contracts with Customers (Topic 606).” (3) See appendix for a reconciliation of Adjusted EBITDA to Net Income of $150 million for LTM period ended 6/30/18. 2
2Q18 INVESTMENT HIGHLIGHTS Realized net new owner growth of 3% to approximately 215,000 Vacation Club 1 owners at 6/30/18 from approximately 208,000 at 6/30/17 2 (1) to $0.36 for second quarter 2018 Grew earnings per share by 5.9% 3 Grew 2Q18 system-wide sales by 3.4% to $172.0 million Increased resort operations and club management revenue by 14.4% for the 4 second quarter of 2018 Grew resort network with addition of the Éilan Hotel & Spa in San Antonio, Texas 5 and The Marquee in New Orleans, Louisiana, and entered into an exclusive agreement to acquire inventory and, by 2021, the resort management contract at The Manhattan Club in New York City. (1) See appendix for reconciliation. 3
(1) PERFORMANCE SECOND QUARTER 2018 ($ in millions, except per share data) System-Wide Sales of VOIs T otal Revenues System-Wide Sales of VOIs, net $180.0 $200.0 $194.9 4.0% $175.0 $187.4 $190.0 $172.0 $170.0 $180.0 3.4% $166.4 $170.0 $165.0 $160.0 $160.0 2Q 2017 2Q 2018 2Q 2017 2Q 2018 Adjusted EBITDA (2) Earnings Per Share $45.0 $0.40 $44.0 $43.2 $0.38 $0.36 3.0% $43.0 5.9% $41.9 $0.35 $0.34 $42.0 $0.33 $41.0 $40.0 $0.30 2Q 2017 2Q 2018 2Q 2017 2Q 2018 (1) Three months ended 6/30/18. (2) See appendix for reconciliations. 4
(1) PERFORMANCE YEAR TO DATE ($ in millions, except per share data) System-Wide Sales of VOIs T otal Revenues $366.0 $362.5 $308.0 $304.8 $360.0 $304.0 3.6% 3.0% $300.0 $354.0 $296.0 $349.7 $296.0 $348.0 $292.0 $342.0 $288.0 YTD 2017 YTD 2018 YTD 2017 YTD 2018 Adjusted EBITDA (2) Earnings Per Share $84.0 $0.66 $0.64 $78.0 $0.63 $75.2 $75.2 NM 8.5% $72.0 $0.60 $0.59 $66.0 $0.57 $60.0 $0.54 YTD 2017 YTD 2018 YTD 2017 YTD 2018 (1) Six months ended 6/30/18. (2) See appendix for reconciliations. 5
SECOND QUARTER 2018 RECURRING REVENUE MIX ($ in millions) Resort Operations and Club Financing Revenue: Interest Other Recurring Revenue Management Revenue Income $42.0 $8.0 $22 $41.3 $7.0 $7.0 $19.8 $19.7 $20 33.6% 0.8% $40.0 $6.0 14.4% $18 $4.7 $5.0 $38.0 $5.7 $4.0 $16 $36.1 $36.0 $3.2 $3.0 $14 $2.0 $34.0 $12 $1.0 $1.5 $1.3 $32.0 $0.0 $10 2Q 2017 2Q 2018 2Q 2017 2Q 2018 2Q 2017 2Q 2018 Mortgage Servicing Title Operations 6
(1) RECURRING REVENUE MIX YEAR TO DATE ($ in millions) Resort Operations and Club Financing Revenue: Interest Other Recurring Revenue Management Revenue Income $85.0 $12.0 $40.0 $82.8 $11.0 1.8% $40.0 20.0% $39.3 $10.0 $80.0 $8.8 11.8% $38.0 $8.0 $8.6 $75.0 $74.1 $6.0 $5.9 $36.0 $4.0 $70.0 $34.0 $2.0 $2.9 $2.4 $0.0 $65.0 $32.0 YTD 2017 YTD 2018 YTD 2017 YTD 2018 YTD 2017 YTD 2018 Mortgage Servicing Title Operations (1) Six months ended 6/30/18. 7
(1) FLEXIBLE BUSINESS MODEL Sales on behalf of our Fee-Based Service clients were 52% Increased capital-light revenue as % of total revenue to 71% of our system-wide sales in 2018 compared to 51% in 2017. 2018 2017 2017 2018 29% 38% 49% 48% 51% 52% 62% 71% Fee-Based Service Sales Other Revenue Capital Light Developed Continue to drive new owner growth while pursuing a Realized 42% of sales in cash within 30 days of sale in 2018 balanced sales mix between new and existing customers and 2017 2018 2018 2017 2017 42% 42% 47% 50% 50% 53% 58% 58% Financed Cash New customers Existing Customers (1) LTM periods ended 6/30/17 and 6/30/18. 8
STRONG LIQUIDITY POSITION ($ in millions) LIQUIDITY PROFILE LIQUIDITY POSITION ✓ As of June 30, 2018, Bluegreen had total availability (1) of $140.5 million under its $365.0 million of credit and receivable Availability (2) Unrestricted Cash Free Cash Flow (1) purchase facilities Under Credit Lines $18.6 $219.9 ✓ Non-receivable-backed debt to equity of $205.7 0.5:1 at 6/30/18 vs. 0.4:1 at 6/30/17 ✓ Strong track record of producing free cash $140.5 flow and significant cash on hand $8.1 $197.3 Tax reform currently expected to ✓ contribute to FCF in 2018 Renewed revolving timeshare receivables ✓ hypothecation facility with Liberty Bank and purchase facility with Quorum Federal Credit Union (1) Six months ended 6/30/18. (2) Subject to eligible collateral and terms and conditions of each facility. 9
APPENDIX
Recommend
More recommend
