BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB) (“BBX
Capital” or the “Company”) reported today its financial results for
the quarter ended March 31, 2020.
Selected highlights of BBX Capital’s consolidated financial
results include:
First Quarter 2020 Compared to First Quarter
2019:
- Total consolidated revenues of $204.1 million vs. $217.4
million
- Net loss attributable to shareholders of $(28.3) million vs.
net income attributable to shareholders of $1.5 million
- Diluted loss per share of $(0.31) vs. diluted earnings per
share of $0.02
- Adjusted EBITDA of $3.9 million vs. $13.1 million (1)
- Free cash flow of $(36.5) million vs. $(16.3) million (1)
(1)
See the supplemental tables included in
this release for a reconciliation of BBX Capital’s net income to
Adjusted EBITDA and its cash flow from operating activities to free
cash flow. BBX Capital’s Adjusted EBITDA excludes certain items
that the Company believes are not representative of ongoing
operating results, including, but not limited to, $28.3 million of
impairments of goodwill and long-lived assets primarily associated
with the effects of the COVID-19 pandemic and $4.5 million of
severance charges incurred as a result of the pandemic.
Balance Sheet as of March 31, 2020 Compared
to December 31, 2019:
- Total consolidated assets in each period of $1.8 billion
- Total shareholders’ equity of $521.9 million vs. $549.8
million
- Fully diluted book value per share of $5.40 vs. $5.84 (2)
(2)
Fully diluted book value per share is
shareholders’ equity divided by the number of Class A and Class B
common shares and unvested restricted stock awards outstanding as
of period end.
“As we watch the COVID-19 pandemic continue to evolve,
threatening the health and lives of people and families, and
significantly impact the local and national economies, our hearts
go out to the communities and individuals, including healthcare
workers and first responders, most deeply hit by the crisis,”
commented Alan B. Levan, Chairman and Chief Executive Officer of
BBX Capital Corporation.
“During March and continuing into April we believe we took
prudent financial steps at our portfolio companies to increase
liquidity, strengthen our financial position, and manage expenses
through cost saving initiatives. These included drawing down lines
of credit, reducing or eliminating planned capital expenditures,
temporarily ceasing certain operations and closing resorts and
retail locations, suspending the quarterly dividend paid to
shareholders, and lowering headcount through layoffs and
furloughs.
“The extraordinary conditions we are experiencing required us to
take wide-ranging actions which unfortunately impacted many of our
Associates. I want to thank our Associates for their character and
integrity as they continue to help our customers every way they
can. Our objective at BBX Capital has been long term growth as
measured by increases in book value and intrinsic value over time,
and despite the challenging environment we find ourselves in, we
remain committed to that goal,” Levan concluded.
Additional Information
For more complete and detailed information regarding BBX Capital
and its financial results, business, operations, investments, and
risks, please see BBX Capital’s Annual Report on Form 10-K for the
year ended December 31, 2019 and its Quarterly Report on Form 10-Q
for the quarter ended March 31, 2020, which is available on the
SEC's website, https://www.sec.gov, and on BBX Capital’s website,
www.BBXCapital.com.
Non-GAAP Financial
Measures
The Company refers to certain non-GAAP financial measures in
this press release, including EBITDA, Adjusted EBITDA, System-wide
Sales of VOIs, and Free Cash Flow. Please see the supplemental
tables herein for how these terms are defined and for
reconciliations of such measures to the most comparable GAAP
financial measures.
COVID-19 Update
The COVID-19 pandemic has been, and continues to be, an
unprecedented disruption in the U.S. and global economies and in
the industries in which the Company operates due to, among other
things, government ordered “shelter in place” and “stay at home”
health orders and advisories, travel restrictions, and restrictions
on business operations, including required closures of resorts and
retail locations. The disruptions arising from the pandemic and the
reaction of the general public had a significant adverse impact on
the Company's financial condition and operations during the three
months ended March 31, 2020 and continues to adversely impact the
Company. Furthermore, the duration and severity of the pandemic and
related disruptions, as well as the adverse impact on economic and
market conditions, are uncertain.
As previously disclosed, Bluegreen temporarily closed all of its
VOI sales centers; its retail marketing operations at Bass Pro
Shops, Cabela’s stores, and outlet malls; and the Choice Hotels
call transfer program. In connection with these actions, Bluegreen
canceled existing owner reservations through May 15, 2020 and new
prospect guest tours through June 30, 2020. Further, some of
Bluegreen’s Club and Club Associate Resorts were closed in
accordance with government mandates and advisories. Bluegreen is
currently developing a plan to reopen these operations, including
accepting guests as of May 16, 2020 and reopening VOI sales centers
and marketing operations beginning June 1, 2020 on a phased
schedule. BBX Sweet Holdings temporarily closed all of its IT’SUGAR
retail locations, although it currently expects to reopen a minimum
of 10 of its IT’SUGAR retail locations on May 15, 2020. BBX Capital
Real Estate and Renin are experiencing uncertainty in demand for
their products.
Although the impact of the COVID-19 pandemic on the Company’s
principal investments, including management’s efforts to mitigate
the effects of the pandemic, has varied, BBX Capital and its
subsidiaries have taken steps to manage expenses through cost
saving initiatives and reductions in employee head count and to
increase liquidity and strengthen the Company’s financial position,
including drawing cash from certain available lines of credit,
reducing planned capital expenditures, and suspending the payment
of quarterly dividends. As of March 31, 2020, the Company’s
consolidated cash and cash equivalents were $397.5 million,
including $137.8 million held directly by BBX Capital.
The impact of the pandemic on the Company’s consolidated results
of operations, cash flows, and financial condition in 2020 is
expected to be material. Furthermore, although the duration and
severity of the effects of the pandemic are uncertain, it is
expected that demand for many of the Company’s products and
services may remain weak for a significant length of time, and the
Company cannot predict if and when the industries in which the
Company operates will return to pre-pandemic levels.
For additional information with respect to the impact of the
COVID-19 pandemic on BBX Capital and its principal investments,
please see BBX Capital’s Quarterly Report on Form 10-Q for the
quarter ended March 31, 2020.
Financial Results
The following selected information relates to the financial
results of Bluegreen Vacations, BBX Capital Real Estate, BBX Sweet
Holdings, and Renin.
Bluegreen Vacations -
Selected Financial Data
Selected highlights of Bluegreen Vacations’ financial results
include:
First Quarter 2020 Compared to First Quarter
2019:
- Sales of Vacation Ownership Interests (“VOIs”) of $45.1 million
vs. $51.7 million
- System-wide sales of VOIs of $137.4 million vs. $129.7
million
- Fee-based sales commissions of $41.4 million vs. $45.2
million
- Other fee-based services revenue of $29.3 million vs. $29.6
million
- Income before income taxes of $1.0 million vs. $22.2
million
- Adjusted EBITDA of $11.0 million vs. $26.2 million (3)
- Free cash flow of $(16.8) million vs. $3.4 million (3)
(3)
See the supplemental tables included in
this release for a reconciliation of Bluegreen’s net income to
Adjusted EBITDA and its cash flow from operating activities to free
cash flow.
In addition to BBX Capital’s Annual Report on Form 10-K for the
year ended December 31, 2019 and its Quarterly Report on Form 10-Q
for the quarter ended March 31, 2020, more complete and detailed
information regarding Bluegreen Vacations and its financial
results, business, operations, and risks can be found in Bluegreen
Vacations’ Annual Report on Form 10-K for the year ended December
31, 2019 and its Quarterly Report on Form 10-Q for the quarter
ended March 31, 2020, which will be available on the SEC's website,
https://www.sec.gov, and on Bluegreen Vacations’ website,
www.BluegreenVacations.com, upon filing with the SEC, which is
expected to occur no later than May 11, 2020.
BBX Capital Real
Estate - Selected Financial Data
Selected highlights of BBX Capital Real Estate’s (“BBXRE”)
financial results include:
First Quarter 2020 Compared to First Quarter
2019:
- Revenues of $7.0 million vs. $6.5 million
- Equity in net earnings (losses) of unconsolidated real estate
joint ventures of $0.6 million vs. $(17,000)
- Income before income taxes of $4.1 million vs. $2.4
million
BBXRE’s operating results for the quarter ended March 31, 2020
as compared to the same 2019 period primarily reflects an increase
in net profits from the sale of developed lots to homebuilders at
the Beacon Lake Community development, an increase in recoveries
from loan losses primarily due to a settlement in 2020 with a
financial institution servicing loans for BBXRE, and an increase in
equity in earnings of unconsolidated real estate joint ventures
primarily due to the Altis at Wiregrass’s sale of its 392 unit
multifamily apartment community in Tampa, Florida in March 2020,
partially offset by lower gains on the sale of real estate
assets.
BBX Sweet Holdings -
Selected Financial Data
Selected highlights of BBX Sweet Holdings’ (“BBXSH”) financial
results include:
First Quarter 2020 Compared to First Quarter
2019:
- Trade sales of $21.3 million vs. $22.1 million
- Gross margin of $6.6 million vs. $6.7 million
- Gross margin percentage of 30.8% vs. 30.4%
- Loss before income taxes of $(28.9) million vs. $(3.3)
million
- Adjusted EBITDA of $(2.5) million vs $(1.8) million (4)
(4)
See the supplemental tables included in
this release for a reconciliation of BBX Sweet Holdings’ net income
to Adjusted EBITDA.
Although BBX Sweet Holdings’ results from operations improved
for the first two months of 2020 as compared to 2019, reflecting,
among other things, IT’SUGAR’s opening of a three story candy
department store at American Dream in New Jersey in December 2019
and the opening of three other stores in 2019, BBX Sweet Holdings
has been materially adversely impacted by the effects of the
COVID-19 pandemic, including the closure of all of its IT’SUGAR
retail locations as of March 31, 2020.
BBXSH’s operating results for the quarter ended March 31, 2020
as compared to the same 2019 period primarily reflect the
recognition of $24.7 million of impairment losses related to
goodwill and long-lived assets in 2020 associated with the impact
of the COVID-19 pandemic on BBXSH’s operations and financial
condition.
Renin - Selected
Financial Data
Selected highlights of Renin’s financial results include:
First Quarter 2020 Compared to First Quarter
2019:
- Trade sales of $17.4 million vs. $19.3 million
- Gross margin of $3.2 million vs. $4.2 million
- Gross margin percentage of 18.2% vs. 21.9%
- Income before income taxes of $714,000 vs. $1.1 million
- Adjusted EBITDA of $0.9 million vs $1.6 million (5)
(5)
See the supplemental tables included in
this release for a reconciliation of BBX Sweet Holdings’ net income
to Adjusted EBITDA.
Renin’s operating results for the quarter ended March 31, 2020
as compared to the same 2019 period primarily reflect a decrease in
trade sales resulting primarily from sales programs to two retail
customers in the 2019 period that were not repeated in the 2020
period and a decrease in gross margin percentage, which reflects a
shift in its customer mix towards lower margin commercial customers
and an increase in tariffs on products imported from China.
About BBX Capital
Corporation: BBX Capital Corporation (NYSE: BBX) (OTCQX:
BBXTB) is a Florida-based diversified holding company whose
principal investments include Bluegreen Vacations Corporation
(NYSE: BXG), BBX Capital Real Estate, BBX Sweet Holdings, and
Renin. For additional information, please visit
www.BBXCapital.com.
About Bluegreen Vacations
Corporation: Bluegreen Vacations Corporation (NYSE: BXG)
is a leading vacation ownership company that markets and sells
vacation ownership interests and manages resorts in popular leisure
and urban destinations. The Bluegreen Vacation Club is a flexible,
points-based, deeded vacation ownership plan with approximately
221,000 owners, 68 Club and Club Associate Resorts, and access to
nearly 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 approximately 93% owned by BBX Capital Corporation
(NYSE: BBX) (OTCQX: BBXTB), a diversified holding company. For
further information, visit www.BluegreenVacations.com.
Forward-Looking
Statements
This press release contains forward-looking statements based
largely on current expectations of 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 import. The forward-looking statements in this press
release are also forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended (the
“Securities Act”), and Section 21E of the Securities Exchange Act
of 1934, as amended (the “Exchange Act”), and involve substantial
risks and uncertainties. We can give no assurance that such
expectations will prove to be correct. Actual results, performance,
or achievements could differ materially from those contemplated,
expressed, or implied by the forward-looking statements contained
herein. Forward-looking statements are based largely on our
expectations and are subject to a number of risks and uncertainties
that are subject to change based on factors which are, in many
instances, beyond our control. When considering forward-looking
statements, the reader should keep in mind the risks,
uncertainties, and other cautionary statements made in this report
and in the Company’s other reports filed with the SEC. The reader
should not place undue reliance on any forward-looking statement,
which speaks only as of the date made. This press release also
contains information regarding the past performance of the Company
and its respective investments and operations. The reader should
note that prior or current performance is not a guarantee or
indication of future performance. Comparisons of results for
current and any prior periods are not intended to express any
future trends or indications of future performance, and all such
information should only be viewed as historical data.
Future results and the accuracy of forward-looking statements
may be affected by various risks and uncertainties, including the
risk factors applicable to the Company which are described in “Item
1. Business – Cautionary Note Regarding Forward-Looking Statements”
and “Item 1A. Risk Factors” of the Company’s Annual Report on Form
10-K for the year ended December 31, 2019 (the “2019 Annual
Report”) and the Company’s Current Report on Form 8-K filed with
the SEC on March 31, 2020. These risks and uncertainties also
include risks relating to public health issues, including, in
particular, the COVID-19 pandemic, as it is not currently possible
to accurately assess the expected duration and effects of the
pandemic on our business. These include required closures of
resorts and retail locations, travel and business restrictions,
“shelter in place” and “stay at home” orders and advisories,
volatility in the global and national economies and equity, credit,
and commodities markets, worker absenteeism, quarantines, and other
health-related restrictions; the duration and severity of the
COVID-19 pandemic and the impact on demand for the Company’s
products and services, levels of consumer confidence, and supply
chains; actions governments, businesses, and individuals take in
response to the pandemic and their impact on economic activity and
consumer spending, which will impact the Company’s ability to
successfully resume full business operations; the pace of recovery
when the COVID-19 pandemic subsides; competitive conditions; the
Company’s liquidity and the availability of capital; the effects
and duration of steps the Company takes in response to the COVID-19
pandemic, including the risk of lease defaults and the inability to
rehire or replace furloughed employees; risks that the Company’s
current or future business and marketing alliances may not be
available to it in the future; risks that default rates may
increase and exceed the Company’s expectations; risks related to
the Company’s 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 and other factors on
the Company’s ability to pay dividends, including that the risk
that future dividends may not be paid at historical rates or at
all; the impact of the COVID-19 pandemic on consumers, including,
but not limited to, their income, their level of discretionary
spending both during and after the pandemic, and their views
towards the hospitality and retail industries; and the risk that
certain of the Company’s operations, including Bluegreen’s resort
management and finance operations, may not continue to generate
recurring sources of cash during or following the pandemic to the
extent anticipated or at all.
Reference is also made to the other risks and uncertainties
described in BBX Capital’s Annual Report on Form 10-K for the year
ended December 31, 2019 and its Quarterly Report on Form 10-Q for
the quarter ended March 31, 2020, which will be available on the
SEC's website, https://www.sec.gov, and on BBX Capital’s website,
www.BBXCapital.com, upon filing with the SEC, which is expected to
occur no later than May 11, 2020. The Company cautions that the
foregoing factors are not exclusive, and that the reader should not
place undue reliance on any forward-looking statement, which speaks
only as of the date made.
The following supplemental table presents BBX Capital’s
Consolidating Statement of Operations (unaudited) for the three
months ended March 31, 2020 (in thousands):
Revenues:
Bluegreen
BBX Capital Real
Estate
BBX Sweet Holdings
Renin
Other
Reconciling Items and
Eliminations
Segment Total
Sales of VOIs
$
45,128
—
—
—
—
—
45,128
Fee-based sales commissions
41,365
—
—
—
—
—
41,365
Other fee-based services
29,314
—
—
—
—
—
29,314
Cost reimbursements
19,120
—
—
—
—
—
19,120
Trade sales
—
—
21,329
17,446
2,110
(8
)
40,877
Sales of real estate inventory
—
6,439
—
—
—
—
6,439
Interest income
21,866
104
14
—
—
(668
)
21,316
Net losses on sales of real estate
assets
—
(47
)
—
—
—
—
(47
)
Other revenue
—
460
119
—
249
(254
)
574
Total revenues
156,793
6,956
21,462
17,446
2,359
(930
)
204,086
Costs and expenses:
Cost of VOIs sold
4,099
—
—
—
—
—
4,099
Cost of other fee-based services
22,711
—
—
—
—
—
22,711
Cost reimbursements
19,120
—
—
—
—
—
19,120
Cost of trade sales
—
—
14,770
14,275
735
(8
)
29,772
Cost of real estate inventory sold
—
4,632
—
—
—
—
4,632
Interest expense
8,818
—
61
114
3
837
9,833
Recoveries from loan losses, net
—
(3,512
)
—
—
—
—
(3,512
)
Impairment losses
—
—
24,708
—
3,575
—
28,283
Selling, general and administrative
expenses
101,197
2,336
10,900
2,618
1,743
8,059
126,853
Total costs and expenses
155,945
3,456
50,439
17,007
6,056
8,888
241,791
Equity in net earnings of unconsolidated
real estate joint ventures
—
551
—
—
—
—
551
Other income (expense)
133
—
39
(3
)
—
62
231
Foreign exchange gain
—
—
—
278
—
—
278
Income (loss) before income
taxes
$
981
4,051
(28,938
)
714
(3,697
)
(9,756
)
(36,645
)
The following supplemental table presents BBX Capital’s
Consolidating Statement of Operations (unaudited) for the three
months ended March 31, 2019 (in thousands):
Bluegreen
BBX Capital Real
Estate
BBX Sweet Holdings
Renin
Other
Reconciling Items and
Eliminations
Segment Total
Revenues:
Sales of VOIs
$
51,731
—
—
—
—
—
51,731
Fee-based sales commissions
45,212
—
—
—
—
—
45,212
Other fee-based services
29,568
—
—
—
—
—
29,568
Cost reimbursements
17,044
—
—
—
—
—
17,044
Trade sales
—
—
22,131
19,343
4,519
(9
)
45,984
Sales of real estate inventory
—
4,236
—
—
—
—
4,236
Interest income
22,008
202
15
—
24
(834
)
21,415
Net gains on sales of real estate
assets
—
1,332
—
—
—
—
1,332
Other revenue
—
684
14
—
451
(319
)
830
Total revenues
165,563
6,454
22,160
19,343
4,994
(1,162
)
217,352
Costs and expenses:
Cost of VOIs sold
3,848
—
—
—
—
—
3,848
Cost of other fee-based services
22,868
—
—
—
—
—
22,868
Cost reimbursements
17,044
—
—
—
—
—
17,044
Cost of trade sales
—
—
15,397
15,117
1,785
(9
)
32,290
Cost of real estate inventory sold
—
2,643
—
—
—
—
2,643
Interest expense
9,506
—
44
140
1
1,457
11,148
Recoveries from loan losses, net
—
(961
)
—
—
—
—
(961
)
Impairment losses
—
—
—
—
618
—
618
Selling, general and administrative
expenses
90,214
2,494
10,211
3,035
3,933
12,106
121,993
Total costs and expenses
143,480
4,176
25,652
18,292
6,337
13,554
211,491
Equity in net losses of unconsolidated
real estate joint ventures
—
(17
)
—
—
—
—
(17
)
Other income
89
162
209
—
6
47
513
Foreign exchange gain
—
—
—
5
—
—
5
Income (loss) before income
taxes
$
22,172
2,423
(3,283
)
1,056
(1,337
)
(14,669
)
6,362
The following supplemental table presents Bluegreen’s
System-wide sales of VOIs (1) and a reconciliation of Bluegreen’s
Sales of VOIs to its System-wide sales of VOIs (unaudited) (in
thousands):
For the Three Months
Ended
March 31,
2020
2019
Sales of VOIs
$
45,128
51,731
Provision for loan losses
30,353
11,153
Gross Sales of VOI's
75,481
62,884
Plus: Fee-based sales
61,908
66,794
System-wide sales of VOIs, net
$
137,389
129,678
(1)
System-wide Sales of VOIs is a non-GAAP
measure and represents all sales of VOIs, whether owned by
Bluegreen or a third party immediately prior to the sale. Sales of
VOIs owned by third parties are transacted as sales of VOIs in
Bluegreen’s Vacation Club through the same selling and marketing
process it uses to sell its VOI inventory. Bluegreen considers
system-wide sales of VOIs to be an important operating measure
because it reflects all sales of VOIs by its sales and marketing
operations without regard to whether Bluegreen or a third party
owned such VOI inventory at the time of sale. System-wide sales of
VOIs should not be considered as an alternative to sales of VOIs or
any other measure of financial performance derived in accordance
with GAAP or to any other method of analyzing results as reported
under GAAP.
The following supplemental table presents BBX Capital’s free
cash flow (2) and a reconciliation of cash flow from operating
activities to free cash flow (unaudited) (in thousands):
For the Three Months
Ended
March 31, 2020
2020
2019
Cash flow from operating activities
$
(29,994
)
(6,566
)
Capital expenditures for property and
equipment
(6,549
)
(9,693
)
Free cash flow
$
(36,543
)
(16,259
)
The following supplemental table presents Bluegreen’s free cash
flow (2) and a reconciliation of Bluegreen’s cash flows from
operating activities to its free cash flow (unaudited) (in
thousands):
For the Three Months
Ended
March 31, 2020
2020
2019
Cash flow from operating activities
$
(13,826
)
10,942
Capital expenditures for property and
equipment
(2,966
)
(7,507
)
Free cash flow
$
(16,792
)
3,435
(2)
Free cash flow is a non-GAAP measure and
is defined as cash provided by operating activities less capital
expenditures for property and equipment. The Company and Bluegreen
focus on the generation of free cash flow. The Company considers
free cash flow to be a useful supplemental measure of the Company’s
and Bluegreen’s ability to generate cash flow from operations and
is a supplemental measure of liquidity. Free cash flow should not
be considered as an alternative to cash flow from operating
activities as a measure of its liquidity. The Company's computation
of free cash flow may differ from the methodology utilized by other
companies. Investors are cautioned that the items excluded from
free cash flow are a significant component in understanding and
assessing the Company’s financial performance.
The following supplemental table presents BBX Capital’s EBITDA
and Adjusted EBITDA (3) and a reconciliation of BBX Capital’s net
income to its EBITDA and Adjusted EBITDA (unaudited) (in
thousands):
For the Three Months
Ended
March 31,
2020
2019
Net (loss) income
$
(30,815
)
4,638
(Benefit) provision for income taxes
(5,830
)
1,724
Income before income taxes
(36,645
)
6,362
Add/(less):
Interest income (other than interest
earned on VOI notes receivable)
(1,168
)
(1,253
)
Interest expense
9,833
11,148
Interest expense on receivable-backed
debt
(4,664
)
(5,262
)
Franchise taxes
17
34
Depreciation and amortization
5,766
5,623
EBITDA
(26,861
)
16,652
EBITDA attributable to noncontrolling
interests
(1,839
)
(4,196
)
(Gain) loss on assets held-for-sale
(44
)
9
Foreign exchange gain
(278
)
(5
)
Impairment losses
28,283
618
Covid-19 incremental costs
106
—
Severance
4,496
—
Adjusted EBITDA
$
3,863
13,078
The following supplemental table presents Bluegreen’s EBITDA and
Adjusted EBITDA (3) and a reconciliation of Bluegreen’s net income
to its EBITDA and Adjusted EBITDA (unaudited) (in thousands):
For the Three Months
Ended
March 31,
2020
2019
Net income
$
937
16,869
Provision for income taxes
44
5,303
Income before income taxes
981
22,172
Add/(less):
Interest income (other than interest
earned on VOI notes receivable)
(1,718
)
(1,846
)
Interest expense (other than interest
expense on receivable-back debt)
4,154
4,244
Franchise taxes
17
34
Depreciation and amortization
3,899
3,365
Bluegreen EBITDA
7,333
27,969
EBITDA attributable to the noncontrolling
interest in Bluegreen/Big Cedar Vacations
(906
)
(1,781
)
(Gain) loss on assets held-for-sale
(44
)
9
Covid-19 incremental costs
106
—
Severance
4,496
—
Adjusted EBITDA
$
10,985
26,197
The following supplemental table presents BBX Sweet Holdings’
EBITDA and Adjusted EBITDA (3) and a reconciliation of BBX Sweet
Holdings’ net loss to its EBITDA and Adjusted EBITDA (unaudited)
(in thousands):
For the Three Months
Ended
March 31,
2020
2019
Net loss
$
(28,938
)
(3,283
)
Provision for income taxes
—
—
Loss before income taxes
(28,938
)
(3,283
)
Add/(less):
Interest income
(14
)
(15
)
Interest expense
61
44
Depreciation and amortization
1,433
1,359
Impairment losses
24,708
—
EBITDA
(2,750
)
(1,895
)
EBITDA attributable to noncontrolling
interests
266
115
Adjusted EBITDA
$
(2,484
)
(1,780
)
The following supplemental table presents Renin’s EBITDA and
Adjusted EBITDA (3) and a reconciliation of Renin’s net income to
its EBITDA and Adjusted EBITDA (unaudited) (in thousands):
For the Three Months
Ended
March 31,
2020
2019
Net income
$
711
635
Provision for income taxes
3
421
Income before income taxes
714
1,056
Add:
Interest expense
114
140
Depreciation and amortization
306
405
EBITDA
1,134
1,601
Foreign exchange gain
(278
)
(5
)
Adjusted EBITDA
$
856
1,596
(3)
The Company defines EBITDA as earnings or
net income, before taking into account interest income (excluding
interest earned on Bluegreen’s VOI notes receivable), interest
expense (excluding interest expense incurred by Bluegreen on
financings related to its receivable-backed notes payable), income
and franchise taxes, and depreciation and amortization (including
Renin’s amortization of product displays provided to customers for
marketing purposes that are presented as a reduction of trade sales
under GAAP). For purposes of the Company’s EBITDA calculations for
BBX Capital and Bluegreen, no adjustments were made for interest
income earned on Bluegreen’s VOI notes receivable or the interest
expense incurred on debt that is secured by such notes receivable
because they are both considered to be part of the operations of
Bluegreen’s business.
The Company defines Adjusted EBITDA as
EBITDA adjusted for amounts attributable to noncontrolling
interests, foreign exchange gains and losses (as exchange rates may
vary significantly among companies), and items that the Company
believes are not representative of ongoing operating results,
including restructuring charges and goodwill impairment losses.
Accordingly, severance charges and incremental costs associated
with the COVID-19 pandemic were excluded in the computation of BBX
Capital’s and Bluegreen’s Adjusted EBITDA for the three months
ended March 31, 2020. In addition, impairments of goodwill and
long-lived assets primarily resulting from the effects of the
COVID-19 pandemic were excluded in the computation of BBX Capital’s
and BBX Sweet Holdings’ Adjusted EBITDA for the three months ended
March 31, 2020.
The Company considers EBITDA and Adjusted
EBITDA to be an indicator of the operating performance of BBX
Capital, Bluegreen, BBX Sweet Holdings, and Renin, and they are
used to measure their ability to service debt, fund capital
expenditures, and expand their businesses. EBITDA is also used by
companies, lenders, investors and others because it excludes
certain items that can vary widely across different industries or
among companies within the same industry. For example, interest
expense can be dependent on a company’s capital structure, debt
levels and credit ratings. Accordingly, the impact of interest
expense on earnings can vary significantly among companies.
Additionally, the tax positions of companies can also vary because
of their differing abilities to take advantage of tax benefits and
because of the tax policies of the jurisdictions in which they
operate. As a result, effective tax rates and provision for income
taxes can vary considerably among companies. EBITDA also excludes
depreciation and amortization because companies utilize productive
assets of different ages and use different methods of both
acquiring and depreciating productive assets. These differences can
result in considerable variability in the relative costs of
productive assets and the related depreciation and amortization
expense among companies.
The Company considers Adjusted EBITDA to
be a useful supplemental measure of the operating performance of
BBX Capital, Bluegreen, BBX Sweet Holdings, and Renin that
facilitates the comparability of historical financial periods.
EBITDA and Adjusted EBITDA should not be considered as an
alternative to net income as an indicator of the financial
performance of BBX Capital, Bluegreen, BBX Sweet Holdings, and
Renin or as an alternative to cash flow from operating activities
as a measure of its liquidity. The Company's computation of EBITDA
and Adjusted EBITDA may differ from the methodology utilized by
other companies. Investors are cautioned that items excluded from
EBITDA and Adjusted EBITDA are significant components in
understanding and assessing the financial performance of BBX
Capital, Bluegreen, BBX Sweet Holdings, and Renin.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200511005292/en/
BBX Capital Corporation Contact
Info Investor Relations
Contact: Leo Hinkley, Managing Director, Investor Relations
Officer 954-940-5300, Email: LHinkley@BBXCapital.com Media Relations Contacts: Kip Hunter Marketing,
Nicole Lewis / Shannon O’Malley 954-765-1329, Email:
nicole@kiphuntermarketing.com, shannon@kiphuntermarketing.com
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