BLUEGREEN VACATIONS SECOND QUARTER 2020 RESULTS August 10, 2020
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, risks relating to public health issues, including in particular the COVID-19 pandemic and the effects of the pandemic, including resort closures, travel and business restrictions, volatility in the international and national economy and credit markets, worker absenteeism, quarantines and other health related restrictions; the length and severity of the COVID-19 pandemic and our ability to successfully resume full business operations thereafter; governmental and agency orders, mandates and guidance in response to the COVID-19 pandemic and the duration thereof, which is uncertain and will impact our ability to fully utilize resorts and re-open sales centers and other marketing activities; the pace of recovery following the COVID-19 pandemic; the risk that resorts and sales operations, including those at Bass Pro and Cabela’s store locations, may not reopen to the extent or when expected, or may be subject to additional closures in the future, particularly in locations where COVID-19 cases have increased; competitive conditions; our liquidity and the availability of capital; our ability to successfully implement our strategic plans and initiatives to navigate the COVID-19 pandemic; risks that default rates may increase and exceed the Company’s expectations, including due to the impact on consumers of the COVID-19 pandemic and if our efforts to address the actions of timeshare exit firms and the increase in default rates associated therewith are not successful; risks related to our indebtedness, including the potential for accelerated maturities and debt covenant violations; the risk of heightened litigation as a result of actions taken in response to the COVID-19 pandemic; the impact of the COVID-19 pandemic on our operations and our payment of regular or special dividends in the future, including that despite the special cash dividend declared during July 2020, we have suspended the payment of regular quarterly cash dividends due to the impact of the COVID-19 pandemic, and dividends may not be paid at historical rates or at all; the impact of the COVID-19 pandemic on 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 our 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 our current or future marketing alliances may not be available to us in the future; that the Company’s current strategy to reduce sales of fee-based inventory may not result in EBITDA growth or otherwise positively impact the Company and such strategy may change; our ability to successfully implement our strategic plans and initiatives, generate earnings and long-term growth; risks that the Company’s costs, including costs of VOIs sold, will not be within the expected ranges; risks related to our indebtedness; risks that natural disasters, including hurricanes, may result in declines in leisure travel or traffic at locations where we have marketing operations, adversely impact the availability of credit, or otherwise adversely impact the Company’s financial condition and operating results; any damage to physical assets or interruption of access to physical assets or operations resulting from public health issues, such as the COVID-19 outbreak, or from hurricanes, earthquakes, fires, floods, windstorms or other natural disasters, which may increase in frequency or severity due to climate change or other factors; and the additional risks and uncertainties described in Bluegreen's filings with the Securities and Exchange Commission, including, without limitation, those described in the “Risk Factors” section of Bluegreen’s Annual Report on Form 10-K for the year ended December 31, 2019, which was filed on March 12, 2020, and the Company’s Quarterly Report on Form 10-Q for the three months ended June 30, 2020, which is expected to be filed on or about August 10, 2020. Bluegreen 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. Bluegreen does not undertake, and specifically disclaims any obligation, to update or supplement any forward-looking statements. . 2
Bluegreen Vacations Overview 1994 69% (2) Entered Vacation OwnershipIndustry “Capital-Light” Revenue 68Resorts (1) 38% (2) 45 Club Resorts / 23 Club AssociateResorts Sales to NewCustomers ~219,000 (1) $225.8Million (1) Vacation Club Owners Revenue ~47,000 (2) $6.9Million (2)(3) T ours Annually Adjusted EDITDA (1) Data as of June 30, 2020 (2) For the six months ended June 30, 2020, 21 of the Company’s 26 VOI sales centers had reopened for sales to existing customers and one was selling to new prospects. See the Company’s disclosures in its Quarterly Report on Form 10-Q for the three months ended June 30, 2020. (3) See appendix for a reconciliation of Adjusted EBITDA to Net Loss of $8.6 million for the six months ended 6/30/20. 3
Second Quarter Highlights Net loss attributable to shareholders was $(8.8) million in the second quarter compared to net 1 loss of $(11.2) million in the prior year quarter. Loss Per Share (“EPS”) of $(0.12), compared to $(0.15) in the prior year quarter. 2 Adjusted EBITDA (1) of a loss of $(4.1) million, compared to Adjusted EBITDA of $28.7 3 million in the prior year quarter. System-wide Sales of vacation ownership interests (“VOIs) decreased to $13.1 4 million in the current year quarter from $163.6 million in the prior year quarter. Resort Operations and Club Management revenue for the quarter decreased 11% 5 to $36.9 million compared to the prior year quarter; segment adjusted EBITDA increased 20% to $18.5 million (1) . Thecurrentyear quarter’s results were adversely effected by the economic impact of the COVID-19 pandemic and the steps taken by the Company in connection with the impact of the pandemic 6 which includedthe temporary closure of all of the Company’s VOI sales centersin the last week of March 2020. As of June 30, 2020, 21 of the Company’s 26 VOI sales centers had reopened for sales to existing owners and one was selling to new prospects. While most resorts had previously been closed, at June 30, 2020, 67 out of 68 resorts had reopened and occupancy for June was 7 approximately 60% at all resorts and 58% at resorts with on-site sales centers. As of June 30, 2020, unrestricted cash and cash equivalents totaled $209.4 million and, excludingreceivable-backed notes payable,theCompany’s net-debt-to-EBITDAratio was 0.61. (1) See appendix for reconciliation. 4
Second Quarter (1) Performance ($ in millions, except per share data) System-Wide ide S Sales les o of VO VOIs Total R l Rev evenue ue $250 $175 $163.6 $192.2 $150 $200 $125 $150 $100 (92.0)% (64.2)% $75 $100 $68.8 $50 $50 $25 $13.1 $0 $0 2Q 2019 2Q 2020 2Q 2019 2Q2020 Share (3) 3) Loss P Los Per Sh EBITDA (2)(3 )(3) Adjusted ed E $35 $0.00 $28.7 $30 -$0.02 $25 -$0.04 $20 (114.3%) -$0.06 $15 -$0.08 $10 -$0.10 $5 $(4.1) $0 -$0.12 20.0% $(.12) -$5 -$0.14 -$10 $(.15) -$0.16 2Q 2019 2Q 2020 2Q 2019 2Q 2020 (1) Three months ended 6/30/19 and 6/30/2020, respectively (2) See appendix for reconciliation to net loss of $(8.8) million and $(11.2) million for 2Q 2019 and 2Q 2020, respectively (3) 2Q 2019 includes $39.1 million pretax charge, or $0.39 loss per share, related to the Company’s settlement with Bass Pro Shops. 5
Year to Date (1) Performance ($ in millions, except per share data) System-Wide ide S Sales les o of VO VOIs Total R l Rev evenue ue $400 $357.9 $325 $293.3 $300 $350 $275 $300 $250 $225 (36.9)% (48.7)% $225.8 $250 $200 $175 $150.5 $200 $150 $125 $150 $100 $75 $100 $50 $25 $50 $0 $0 YTD 2019 YTD 2020 YTD 2019 YTD 2020 Share (3 (3) Earnings (Los (Loss) P Per Sh EBITDA (2)(3 )(3) Adjusted ed E $60 $0.06 $54.9 $0.05 $0.04 $50 $0.02 $40 $0.00 (87.4%) -$0.02 (340.0)% $30 -$0.04 -$0.06 $20 -$0.08 $6.9 $10 -$0.10 -$0.12 $0 $(.12) -$0.14 YTD 2019 YTD 2020 YTD 2019 YTD 2020 (1) Six months ended 6/30/19 and 6/30/2020, respectively (2) See appendix for reconciliation to net income (loss) of $4.0 million and $(8.6) million for the six months ended 6/30/2019 and 6/30/2020, respectively (3) 2020 includes $13.3 pretax, or $0.13 loss per share, due to the COVID-19 pandemic. 2020 and 2019 include $4.0 million pretax or $0.04 loss per share and $39.1 million pretax, or $0.53 loss per share, respectively, related to the Company’s settlement with Bass Pro Shops. 6
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