EX-99.1 2 d60192_ex99-1.txt PRESS RELEASE DATED JULY 26, 2004 EXHIBIT 99.1 [BLUEGREEN LOGO] CONTACT: -OR- INVESTOR RELATIONS COUNSEL: Bluegreen Corporation The Equity Group Inc. John Chiste Devin Sullivan Chief Financial Officer (212) 836-9608 (561) 912-8010 dsullivan@equityny.com john.chiste@bxgcorp.com Adam Prior (212) 836-9606 aprior@equityny.com FOR IMMEDIATE RELEASE BLUEGREEN CORPORATION REPORTS RECORD SECOND QUARTER FINANCIAL RESULTS Q2 2004 vs. Q2 2003 Highlights o Net income increased 46% to $9.1 million, or $.31 per diluted share o Bluegreen(R) Resorts sales rose 38% to $86.6 million o Bluegreen Communities sales up 78% to $41.7 million o Total operating revenues increased 44% to 153.6 million Boca Raton, FL - July 26, 2004 - Bluegreen Corporation (NYSE: BXG), a leading U.S. developer and marketer of drive-to vacation ownership resorts ("Bluegreen Resorts") and planned residential and golf communities ("Bluegreen Communities"), today announced record financial results for the second quarter and six month periods ended June 30, 2004 (see attached tables). RECORD NET INCOME Net income for the second quarter of 2004 increased 46% to $9.1 million, or $.31 per diluted share, on approximately 30.7 million weighted average common and common equivalent diluted shares outstanding ("shares outstanding"), compared to net income of $6.2 million, or $.23 per diluted share, on approximately 29.0 million shares outstanding, for the same period last year. Net income for the first six months of 2004 rose 65% to $13.8 million, or $.47 per diluted share, on approximately 30.5 million shares outstanding, from income of $8.4 million, or $.32 per diluted share, on approximately 28.9 million shares outstanding, for the same period last year. RECORD RESORTS AND COMMUNITIES RESULTS Resorts sales in the second quarter of 2004 increased 38% to a record $86.6 million from $62.6 million in the same period last year. Resorts sales for the first six months of 2004 rose 30% to $139.8 million from $107.1 million for the comparable prior year period. George F. Donovan, President and Chief Executive Officer of Bluegreen, commented, "Higher sales in both periods were due primarily to double-digit same-resort sales increases at a majority of Bluegreen's properties, including: Big Cedar Wilderness Club(TM) located just outside of Branson, MO; Christmas Mountain Village(TM) in Wisconsin Dells, WI; Laurel Crest(TM) in Pigeon Forge, TN; and Harbour Lights(TM) in Myrtle Beach, SC. We also experienced strong initial sales at our two new properties -- The Fountains(TM) resort in Orlando, FL and Grande Villas at World Golf Village(R) in St. Augustine, FL. Sales at both of these properties commenced in the fourth quarter of 2003." Bluegreen Corporation Page 2 July 26, 2004 Communities sales in the second quarter of 2004 increased 78% to a record $41.7 million from $23.5 million in the same period last year. For the first six months of 2004, Communities sales rose 84% to $74.7 million from $40.7 million in the same period last year. Mr. Donovan stated, "We experienced robust sales of properties opened for less than 12 months, including: Sanctuary Cove at St. Andrews Sound(TM), a Bluegreen Golf Community located in Brunswick, GA; Mountain Springs Ranch(TM), in the Texas Hill Country; Quail Springs Ranch(TM) in Peaster, TX; and Terra Medina Ranch(TM) in Hondo, TX. These sales increases were supported by solid same-project sales growth at Brickshire(TM), a Bluegreen Golf Community located near Richmond, VA and Traditions of Braselton(TM), a Bluegreen Golf Community located near Atlanta, GA." SECOND QUARTER OPERATING METRICS Despite a 49% increase in total sales and a 44% increase in total operating revenues, selling, general and administrative expenses ("S,G&A") as a percentage of these sales declined during the second quarter of 2004 compared to the second quarter of 2003. During the 2004 second quarter, S,G&A as a percentage of total sales declined to 52% from 58%, while S,G&A as a percentage of total operating revenues declined to 44% from 47%. FINANCIAL POSITION Bluegreen's balance sheet at June 30, 2004 reflected a book value of $8.04 per share, compared to a book value of $7.50 per share at December 31, 2003, and a debt-to-equity ratio of 1.10:1, as compared to 1.38:1 at December 31, 2003. From December 31, 2003 through June 30, 2004, holders of $6.4 million in principal amount of Bluegreen's 8.25% Convertible Subordinated Debentures due 2012 elected to convert their holdings into shares of the Company's common stock at a conversion price of $8.24 per share. As reported on July 15, 2004, Bluegreen completed a $156.6 million private offering of timeshare receivable-backed securities. CLOSING COMMENTS Mr. Donovan concluded, "The quality of our properties, the success of our marketing programs and the continued acceptance of the points-based Bluegreen Vacation Club(R) continue to support our growth. Membership in the Bluegreen Vacation Club rose 12% to approximately 84,000 members during the first half of 2004 from approximately 75,000 members at December 31, 2003. Bluegreen Vacation Club members continue to enjoy the flexibility and access to a wide portfolio of vacation destinations that membership offers. In this regard, construction of 54 new two-bedroom vacation ownership residences at our newest Resort, The Suites at Hershey(TM), located in Hershey, PA has commenced." Bluegreen Corporation Page 3 July 26, 2004 ABOUT BLUEGREEN CORPORATION Bluegreen is one of the leading companies engaged in the acquisition, development, marketing and sale of vacation ownership resorts and residential homesites. Bluegreen Resorts are located in a variety of popular vacation destinations, including: Marathon, Florida; Orlando, Florida; Ormond Beach, Florida; St. Augustine, Florida; Surfside, Florida; the Smoky Mountains of Tennessee; Myrtle Beach, South Carolina; Charleston, South Carolina; Wisconsin Dells, Wisconsin; Gordonsville, Virginia; Hershey, Pennsylvania; Branson, Missouri; Ridgedale, Missouri; Boyne Falls, Michigan; and Aruba, while its Bluegreen Communities operations are predominantly located in the Southeastern and Southwestern United States. This press release contains forward-looking statements and the Company desires to take advantage of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 in connection with these statements. Statements contained herein are not statements of historical fact may be deemed forward-looking statements. The words "believe," "expect," "intend," "anticipate," "project," "may," "should," "designed to," "estimate," "hope," "plan" and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. The Company does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements are based on current expectations and assumptions and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and many of which are beyond the Company's control. Future events could differ materially from those set forth in, contemplated by, or underlying such forward-looking statements. The risks and uncertainties to which forward-looking statements are subject to include, but are not limited to, the following: general economic conditions, the continued success of Bluegreen's sales and marketing strategies, the continued acceptance of the Bluegreen Vacation Club, that S,G&A as a percentage of sales or operating revenues may increase and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including its most recent Form 10-K filed on March 29, 2004 and its Quarterly Report on Form 10-Q to be filed on or about August 16, 2004. ### #### ### Bluegreen Corporation Page 4 July 26, 2004 BLUEGREEN CORPORATION Condensed Consolidated Income Statements (In 000's, Except Per Share Data)
Three Months Ended Six Months Ended ------------------ ---------------- June 30, June 30, June 30, June 30, 2004 2003 2004 2003 ---- ---- ---- ---- Unaudited Unaudited REVENUES: Vacation ownership sales $ 86,637 $ 62,573 $ 139,784 $ 107,135 Homesite sales 41,677 23,453 74,721 40,673 --------- --------- --------- --------- Total sales 128,314 86,026 214,505 147,808 Other resort and communities operations revenue 19,089 14,831 32,714 28,043 Interest income 4,720 4,112 9,741 7,867 Gain on sale of notes receivable 1,216 1,323 3,596 2,884 Other income, net 236 551 35 1,123 --------- --------- --------- --------- Total operating revenues 153,575 106,843 260,591 187,725 --------- --------- --------- --------- EXPENSES: Cost of sales: Vacation ownership cost of sales 20,747 13,223 31,606 22,863 Homesite cost of sales 23,079 13,050 41,460 22,470 --------- --------- --------- --------- Total cost of sales 43,826 26,273 73,066 45,333 Cost of other resort and communities operations 19,438 14,896 33,198 29,292 Selling, general and administrative expense 66,881 50,161 117,556 89,142 Interest expense 4,098 2,972 8,097 5,976 Provision for loan losses 3,029 1,699 3,899 3,225 --------- --------- --------- --------- Total operating expenses 137,272 96,001 235,816 172,968 --------- --------- --------- --------- Income before minority interest and provision for income taxes 16,303 10,842 24,775 14,757 Minority interest in income of consolidated subsidiary 1,503 719 2,332 1,176 --------- --------- --------- --------- Income before provision for income taxes 14,800 10,123 22,443 13,581 Provision for income taxes 5,698 3,897 8,641 5,228 --------- --------- --------- --------- Net income $ 9,102 $ 6,226 $ 13,802 $ 8,353 ========= ========= ========= ========= Earnings per share: Basic $ 0.35 $ 0.25 $ 0.54 $ 0.34 ========= ========= ========= ========= Diluted $ 0.31 $ 0.23 $ 0.47 $ 0.32 ========= ========= ========= ========= Weighted-average number of common and common equivalent shares: Basic 26,082 24,590 25,636 24,589 ========= ========= ========= ========= Diluted 30,679 28,983 30,518 28,913 ========= ========= ========= =========
Bluegreen Corporation Page 5 July 26, 2004 BLUEGREEN CORPORATION Condensed Consolidated Balance Sheets (in 000's) June 30, December 31, 2004 2003 ASSETS (Unaudited) Cash and cash equivalents (unrestricted) $ 32,274 $ 39,491 Cash and cash equivalents (restricted) 45,885 33,540 Contracts receivable, net 37,876 25,522 Notes receivable, net 102,121 94,194 Other assets 34,416 33,364 Inventory, net 210,514 219,890 Retained interests in notes receivable sold 67,175 60,975 Property and equipment, net 68,990 63,430 ---------- ---------- Total assets $ 599,251 $ 570,406 ========== ========== LIABILITIES AND SHAREHOLDERS' EQUITY Liabilities Accounts payable, accrued liabilities and other $ 71,889 $ 59,158 Deferred income 25,960 18,646 Deferred income taxes 52,648 43,924 Lines-of-credit and notes payable 93,625 112,779 10.50% senior secured notes payable 110,000 110,000 8.25% convertible subordinated debentures 28,007 34,371 ---------- ---------- Total liabilities 382,129 378,878 Minority interest 6,980 4,648 Total shareholders' equity 210,142 186,880 ---------- ---------- Total liabilities and shareholders' equity $ 599,251 $ 570,406 ========== ==========