Bluegreen Vacations Corporation Provides Business Update
31 March 2020 - 10:00AM
Business Wire
Bluegreen Vacations Corporation (NYSE: BXG) ("Bluegreen" or the
“Company") announced today that as a result of the COVID-19
pandemic, including current and anticipated travel restrictions and
restrictions on business operations, the Company has temporarily
closed until further notice all of its VOI sales centers; its
retail marketing operations at Bass Pro Shops; Cabela’s stores and
outlet malls; and its Choice Hotels call transfer program. Several
of the Company’s resorts have been or are expected to be closed
based on various governmental mandates and advisories.
Alan B. Levan, Chairman, President and Chief Executive Officer,
commented, “The COVID-19 pandemic is an unprecedented event in the
United States and globally, and the domino effect has directly
impacted Bluegreen’s sales and operations. We remain committed to
our owners and the future of Bluegreen and are taking these
difficult necessary measures, which will adversely impact our
associates and our business, only after careful consideration of
the challenges we face and with a view to protecting the long-term
best interests of our associates, owners and our Company. We look
forward to the end of this global crisis and the reestablishment of
our full business operations.”
The Company started the year off strong, with system-side sales
of vacation ownership interests up 16.5% through February 29, 2020.
Since then, the Company has seen significant declines in occupancy,
sales tours, and system-side sales of vacation ownership interest
due to the COVID-19 pandemic. As a result, in addition to the
aforementioned actions, the Company has taken a number of
additional actions including a reduction in force, temporary
furloughs and reduced work hours.
Balance Sheet and
Liquidity
As a precautionary measure aimed towards ensuring adequate
liquidity for a sustained period, the Company drew down $60 million
under its $125 million Revolving Credit Facility on March 19, 2020
and pledged/sold receivables under its various receivable-backed
debt/purchase facilities to increase its cash position, bringing
the Company’s unrestricted cash balance as of March 30, 2020 to
approximately $240 million. In addition, the Company has only $20.3
million of debt maturities due during 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 the
rapidly changing effects of the COVID-19 outbreak, including
reduced demand for vacation ownership products and services, 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 outbreak and our ability to successfully
resume full business operations thereafter; governmental and agency
orders, mandates and guidance in response to the COVID-19 outbreak;
the pace of recovery following the COVID-19 outbreak; competitive
conditions; our liquidity and the availability of capital; our
ability to successfully implement our strategic plans and
initiatives to navigate the COVID-19 outbreak; risks that our
current or future marketing alliances may not be available to us in
the future; risks that default rates may increase and exceed the
Company’s expectations; 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 outbreak on our shareholder dividend policy,
including that dividends may not be paid at the current rate or at
all; 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.
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.
About Bluegreen Vacations
Corporation: Bluegreen Vacations Corporation (NYSE: BXG)
is a leading vacation ownership company that markets and sells
vacation ownership interests (“VOIs”) and manages resorts in top
leisure and urban destinations. The Bluegreen Vacation Club is a
flexible, points-based, deeded vacation ownership plan with
approximately 220,000 owners, 68 Club and Club Associate Resorts
and access to more than 11,350 other hotels and resorts through
partnerships and exchange networks as of December 31, 2019.
Bluegreen Vacations also offers a portfolio of fee-based resort
management, financial, and sales and marketing services, to or on
behalf of third parties. Bluegreen is more than 90% owned by BBX
Capital Corporation (NYSE: BBX) (OTCQX: BBXTB), a diversified
holding company. For further information, visit
www.BluegreenVacations.com.
About BBX Capital
Corporation: BBX Capital Corporation (NYSE: BBX) (OTCQX:
BBXTB), is a Florida-based diversified holding company whose
activities include its more than 90% ownership interest in
Bluegreen Vacations Corporation (NYSE: BXG) as well as its real
estate and middle market divisions. For additional information,
please visit www.BBXCapital.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200330005756/en/
Bluegreen Vacations Corporation Investor Relations: Leo Hinkley
954-940-5336 Email: Leo.Hinkley@BluegreenVacations.com
Bluegreen Vacations (NYSE:BXG)
Historical Stock Chart
From Apr 2024 to May 2024
Bluegreen Vacations (NYSE:BXG)
Historical Stock Chart
From May 2023 to May 2024