BBX Capital Corporation (NYSE: BBX), (OTCQX: BBXTB) (“BBX
Capital” or the “Company”) reported today its financial results for
the quarter ended June 30, 2019.
Selected highlights of BBX Capital’s consolidated financial
results include:
Second Quarter 2019 Compared to Second
Quarter 2018:
- Total consolidated revenues of $251.3 million vs. $243.2
million
- Net (loss) income attributable to shareholders of ($11.6
million) vs. $6.5 million. Results for the second quarter of 2019
reflect a charge of $39.1 million as a result of Bluegreen’s
settlement agreement with Bass Pro in June 2019
- Diluted (loss) earnings per share of ($0.12) vs. $0.07
- Free cash flow of $0.3 million vs. $2.3 million (1)
- Adjusted EBITDA of $33.1 million vs. $25.4 million (2)
- See the supplemental tables included in this release for a
reconciliation of BBX Capital’s cash flow from operating activities
to free cash flow. Free cash flow is defined as cash provided by
operating activities less capital expenditures for property and
equipment.
- See the supplemental tables included in this release for a
reconciliation of BBX Capital’s net income to adjusted EBITDA.
Balance Sheet as of June 30, 2019 Compared
to December 31, 2018
- Total consolidated assets of $1.8 billion vs. $1.7 billion
- Total shareholders' equity of $539.4 million vs. $549.6
million
- Fully diluted book value per share of $5.51 vs. $5.70 (1)
- Fully diluted book value per share is stockholders’ equity
divided by the number of Class A and Class B common shares
outstanding plus unvested restricted stock awards as of period
end
“BBX Capital’s results reflect a $39.1 million charge relating
to the Bluegreen Vacations and Bass Pro settlement during the
second quarter of 2019. We are pleased that Bluegreen and Bass Pro
were able to resolve their differences, amend and expand their
existing marketing agreement, and resume building on their very
successful 19-year partnership. Moreover, we look forward to
Bluegreen’s planned expansion of its retail marketing operations
throughout additional Bass Pro and Cabela’s retail store locations
which see an approximate 200 million visitors annually,” commented
Alan B. Levan, Chairman and Chief Executive Officer of BBX Capital
Corporation. “While the second quarter of 2019 was a challenging
period for Bluegreen Vacations our other three segments performed
well. Details are summarized below.
“As we have stated each quarter, since many of BBX Capital’s
assets do not generate income on a regular or predictable basis,
our objective continues to be long term growth as measured by
increases in book value and intrinsic value over time. Our goal
remains to streamline our business verticals so that our business
model can be more easily analyzed and followed by the markets. To
this end, we are continuing to review and evaluate the performance
of our investments and consider transactions involving the sale or
a spin-off of assets, investments or subsidiaries,” Levan
concluded.
---------------
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, 2018 and its Quarterly Report on Form 10-Q
for the quarter ended June 30, 2019, 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.
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 for
how these terms are defined and for reconciliations of such
measures to the most comparable GAAP financial measures.
***
The following selected information relates to the operating
activities of Bluegreen Vacations, BBX Capital Real Estate, Renin,
and IT’SUGAR.
Bluegreen Vacations -
Selected Financial Data
Selected highlights of Bluegreen Vacations’ financial results
include:
Second Quarter 2019 Compared to Second
Quarter 2018:
- Sales of vacation ownership interests (“VOIs”) of $68.3 million
vs. $68.6 million
- System-wide sales of VOIs of $163.6 million vs. $172.0 million
(1)
- Other fee-based services revenue of $30.7 million vs. $30.4
million
- (Loss) income before income taxes of ($10.0 million) vs. $39.4
million
- Adjusted EBITDA of $28.7 million vs. $41.9 million (2)
- Free cash flow was negative by $6.3 million vs. free cash flow
of $0.1 million (3)
- See the supplemental tables included in this release for a
reconciliation of Bluegreen’s Sales of VOIs to System-wide sales of
VOIs.
- See the supplemental tables included in this release for a
reconciliation of Bluegreen’s net income to Adjusted EBITDA.
- See the supplemental tables included in this release for a
reconciliation of Bluegreen’s 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, 2018, 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, 2018 and its Quarterly Report on Form 10-Q for the quarter
ended June 30, 2019, which is currently or will be available to
view on the SEC's website, https://www.sec.gov, and on Bluegreen
Vacations’ website, www.BluegreenVacations.com.
BBX Capital Real
Estate - Selected Financial Data
Selected highlights of BBX Capital Real Estate’s (“BBXRE”)
financial results include:
Second Quarter 2019 Compared to Second
Quarter 2018:
- Revenues of $10.8 million vs. $5.0 million
- Net gains on sales of real estate assets of $9.7 million vs.
$0.7 million
- Equity in net earnings (losses) of unconsolidated real estate
joint ventures of $8.8 million vs. ($0.5 million)
- Income before income taxes of $19.1 million vs. $1.6
million
BBXRE’s results for the quarter ended June 30, 2019 as compared
to the same 2018 period reflect a net increase in sale activity in
BBXRE’s portfolio in 2019, including its sale of RoboVault, a
self-storage facility located in Fort Lauderdale, Florida, and its
sale of the remaining land parcels located at PGA Station in Palm
Beach Gardens, Florida. In addition, the Altis at Lakeline joint
venture completed the sale of its multifamily apartment community
located in Cedar Park, Texas, and the PGA Design Center joint
venture sold its remaining commercial buildings located in Palm
Beach Gardens, Florida.
Renin - Selected
Financial Data
Selected highlights of Renin’s financial results include:
Second Quarter 2019 Compared to Second
Quarter 2018:
- Trade sales of $15.3 million vs. $16.9 million
- Gross margin of $2.5 million vs. $2.9 million
- Gross margin percentage of 15.97% vs. 17.12%
- Income before income taxes of $15,000 vs. $42,000
- Adjusted EBITDA of $0.5 million vs $0.7 million (1)
- See the supplemental tables included in this release for a
reconciliation of Renin’s net income to Adjusted EBITDA.
Renin’s operating results for the quarter ended June 30, 2019 as
compared to the same 2018 period reflect a decrease in trade sales
and gross margin primarily due to lower sales volume from Renin’s
retail channel customers resulting from a barn door promotion in
2018 that was not repeated during 2019, partially offset by a
decrease in selling, general, and administrative expenses due to a
reduction in headcount.
IT’SUGAR- Selected
Financial Data
Selected highlights of IT’SUGAR’s financial results include:
Second Quarter 2019 Compared to Second
Quarter 2018:
- Trade sales of $21.5 million vs. $19.6 million
- Gross margin of $9.1 million vs. $8.4 million
- Gross margin percentage of 42.57% vs. 42.80%
- Income (loss) before income taxes of $143,000 vs.
($104,000)
- Adjusted EBITDA of $1.3 million vs $1.0 million (1)
- See the supplemental tables included in this release for a
reconciliation of IT’SUGAR’s net income to Adjusted EBITDA.
IT'SUGAR's operating results for the quarter ended June 30, 2019
as compared to the same 2018 period reflect a net increase in trade
sales and gross margin primarily due to the opening of new
locations during the second half of 2018 and the first six months
of 2019, including the FAO Schweetz location in New York City and
the Grand Bazaar location in Las Vegas, partially offset by a net
increase in selling, general, and administrative expenses primarily
due to the hiring of certain executives during the second half of
2018 and costs associated with the new locations described
above.
During the fourth quarter of 2019, IT’SUGAR anticipates opening
a 21,000 square foot, three-story flagship location at American
Dream Meadowlands, a three million square foot shopping and
entertainment complex in New Jersey.
Other
Investments
The Company also has other investments in various operating
businesses, including restaurant locations in Florida and companies
in the confectionery industry. The businesses generated aggregate
losses before income taxes of $4.1 million and $4.9 million during
the three months ended June 30, 2019 and 2018, respectively.
Included in the $4.1 million of aggregate losses for the three
months ended June 30, 2019 was $2.1 million of property and
equipment impairment losses associated with three MOD Pizza
locations that are performing below expectations. Although the
Company expects to continue to incur losses from these businesses
during 2019, the operating results for these businesses for the
quarter ended June 30, 2019 as compared to the 2018 period reflect
the Company’s earlier efforts during 2018 to reduce the size of
certain of its businesses in the confectionery industry, including
the closure of manufacturing facilities and a reduction in
personnel and infrastructure.
---
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, Renin Holdings, and IT’SUGAR.
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 (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 217,000 owners, 69 Club and Club Associate Resorts
and access to more than 11,300 other hotels and resorts through
partnerships and exchange networks as of June 30, 2019. Bluegreen
Vacations also offers a portfolio of comprehensive, fee-based
resort management, financial, and sales and marketing services, to
or on behalf of third parties. Bluegreen is approximately 90% owned
by BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB), a
diversified holding company. For further information, visit
www.BluegreenVacations.com.
This press release contains forward-looking statements based
largely on current expectations of BBX Capital or its subsidiaries
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.
Forward-looking statements may 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”). 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. Forward-looking statements 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 and 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, its
subsidiaries and their respective investments and operations, and
the reader should note that prior or current performance is not a
guarantee or indication of future performance. Future results could
differ materially as a result of a variety of risks and
uncertainties. Some factors which may affect the accuracy of the
forward-looking statements apply generally to the industries in
which the Company operates, including the resort development and
vacation ownership industries in which Bluegreen operates, the
development, operation, management and investment in residential
and commercial real estate, the home improvement industry in which
Renin operates, and the sugar and confectionery industry in which
IT’SUGAR operates, as well as the pizza franchise and fast-casual
restaurant industry in which the Company is a franchisee of MOD
Pizza restaurants. Risks and uncertainties include, without
limitation, the risks and uncertainties affecting BBX Capital and
its subsidiaries, and their respective results, operations,
markets, products, services and business strategies, including
risks associated with the ability to successfully implement
currently anticipated plans and generate earnings, long term
growth, and increased value; the risk that BBX Capital’s efforts to
streamline its businesses and reduce losses may not be successful
or achieve the anticipated or desired benefits; the performance of
entities of which BBX Capital has acquired or in which it has made
investments may not be profitable or perform as anticipated; the
risk that BBX Capital is dependent upon dividends from its
subsidiaries, principally Bluegreen, to fund its operations and
that its subsidiaries may not be in a position to pay dividends at
current levels, if at all, dividend payments may be subject to
certain restrictions, including restrictions contained in debt
instruments, and may be subject to declaration by such subsidiary’s
board of directors or managers; the risks relating to acquisitions,
including acquisitions in diverse activities, including the risk
that they will not perform as expected and will adversely impact
the Company’s results; risks relating to the monetization of BBX
Capital’s legacy assets; and risks related to litigation and other
legal proceedings involving BBX Capital and its subsidiaries. The
Company’s investment in Bluegreen Vacations Corporation exposes the
Company to risks of Bluegreen’s business including risks relating
to its ability to increase VOI sales and profitability and risks
inherent in the vacation ownership industry, risks relating to its
operations, its relationships with its strategic partners and its
ability to successfully grow new marketing partnerships and
alliances, risks that Bluegreen’s marketing alliances will not
contribute to growth or be profitable, risks that the expansion of
the Bass Pro/Cabela’s marketing channels will not be successful or
occur as anticipated; as well as other risks relating to the
ownership of Bluegreen’s common stock, including those described in
Bluegreen’s Annual and Quarterly Reports filed with the SEC. In
addition, with respect to BBX Capital Real Estate, Renin, IT’SUGAR,
and its other investments in operating businesses, the risks and
uncertainties include risks relating to the real estate market and
real estate development, the risk that joint venture partners may
not fulfill their obligations and the projects may not be developed
as anticipated or be profitable, and the risk that contractual
commitments may not be completed on the terms provided or at all;
risks relating to acquisition and performance of operating
businesses, including integration risks, risks regarding achieving
profitability, foreign currency transaction risk, goodwill and
other intangible impairment risks, risks relating to restructurings
and restated charges, and the risk that assets may be disposed of
at a loss; risks related to the Company’s MOD Pizza franchise
activities, including that stores may not be opened when or in the
number expected and that the stores once opened may not be
profitable or otherwise perform as expected. 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, 2018 and
its Quarterly Report on Form 10-Q for the quarter ended June 30,
2019, 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. 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 represents BBX Capital’s
Consolidating Statement of Operations (unaudited) for the three
months ended June 30, 2019 (in thousands):
Revenues:
Bluegreen
BBX
Capital RealEstate
Renin
IT'SUGAR
Other
Reconciling Items and
Eliminations
Segment
Total
Sales of VOIs
$
68,302
-
-
-
-
-
68,302
Fee-based sales commissions
55,343
-
-
-
-
-
55,343
Other fee-based services
30,703
-
-
-
-
-
30,703
Cost reimbursements
17,358
-
-
-
-
-
17,358
Trade sales
-
-
15,339
21,454
8,274
(6)
45,061
Sales of real estate inventory
-
424
-
-
-
-
424
Interest income
21,875
263
-
-
46
(666)
21,518
Net gains on sales of real estate
assets
-
9,664
-
-
-
-
9,664
Other revenue
1,993
449
152
16
497
(147)
2,960
Total revenues
195,574
10,800
15,491
21,470
8,817
(819)
251,333
Costs and expenses:
Cost of VOIs sold
10,572
-
-
-
-
-
10,572
Cost of other fee-based services
19,924
-
-
-
-
-
19,924
Cost reimbursements
17,358
-
-
-
-
-
17,358
Cost of trade sales
-
-
12,889
12,320
5,625
(6)
30,828
Cost of real estate inventory sold
-
-
-
-
-
-
-
Interest expense
10,061
-
116
35
21
1,428
11,661
Recoveries from loan losses, net
-
(1,424)
-
-
-
-
(1,424)
Impairment losses
-
-
-
-
2,138
-
2,138
Selling, general and administrative
expenses
147,668
1,879
2,442
8,972
5,120
11,887
177,968
Total costs and expenses
205,583
455
15,447
21,327
12,904
13,309
269,025
Equity in net earnings of unconsolidated
real estate joint ventures
-
8,759
-
-
-
-
8,759
Foreign exchange loss
-
-
(29)
-
-
-
(29)
(Loss) income before income
taxes
(10,009)
19,104
15
143
(4,087)
(14,128)
(8,962)
The following supplemental table represents BBX Capital’s
Consolidating Statement of Operations (unaudited) for the three
months ended June 30, 2018 (in thousands):
Bluegreen
BBX
Capital
RealEstate
Renin
IT'SUGAR
Other
Reconciling Items and
Eliminations
Segment
Total
Revenues:
Sales of VOIs
$
68,573
-
-
-
-
-
68,573
Fee-based sales commissions
60,086
-
-
-
-
-
60,086
Other fee-based services
30,391
-
-
-
-
-
30,391
Cost reimbursements
14,059
-
-
-
-
-
14,059
Trade sales
-
-
16,890
19,623
7,400
(5)
43,908
Sales of real estate inventory
-
3,250
-
-
-
-
3,250
Interest income
21,118
301
-
-
64
(819)
20,664
Net gains on sales of real estate
assets
-
733
-
-
-
-
733
Other revenue
710
710
-
17
311
(186)
1,562
Total revenues
194,937
4,994
16,890
19,640
7,775
(1,010)
243,226
Costs and expenses:
Cost of VOIs sold
6,789
-
-
-
-
-
6,789
Cost of other fee-based services
16,634
-
-
-
-
-
16,634
Cost reimbursements
14,059
-
-
-
-
-
14,059
Cost of trade sales
-
-
13,998
11,224
5,954
(5)
31,171
Cost of real estate inventory sold
-
2,381
-
-
-
-
2,381
Interest expense
8,495
-
174
-
99
1,635
10,403
Recoveries from loan losses, net
-
(1,999)
-
-
-
-
(1,999)
Impairment losses
-
122
-
-
-
-
122
Selling, general and administrative
expenses
109,580
2,377
2,639
8,520
6,593
12,338
142,047
Total costs and expenses
155,557
2,881
16,811
19,744
12,646
13,968
221,607
Equity in net losses of unconsolidated
real estate joint ventures
-
(488)
-
-
-
-
(488)
Foreign exchange loss
-
-
(37)
-
-
-
(37)
Income (loss) before income
taxes
$
39,380
1,625
42
(104)
(4,871)
(14,978)
21,094
The following supplemental table represents BBX Capital’s
Consolidating Statement of Operations (unaudited) for the six
months ended June 30, 2019 (in thousands):
Bluegreen
BBX
Capital
RealEstate
Renin
IT'SUGAR
Other
Reconciling Items and
Eliminations
Segment Total
Revenues:
Sales of VOIs
$
120,033
-
-
-
-
-
120,033
Fee-based sales commissions
100,555
-
-
-
-
-
100,555
Other fee-based services
60,271
-
-
-
-
-
60,271
Cost reimbursements
37,594
-
-
-
-
-
37,594
Trade sales
-
-
34,682
38,669
17,709
(15)
91,045
Sales of real estate inventory
-
4,660
-
-
-
-
4,660
Interest income
43,883
465
-
-
85
(1,500)
42,933
Net gains on sales of real estate
assets
-
10,996
-
-
-
-
10,996
Other revenue
2,082
1,295
152
226
967
(419)
4,303
Total revenues
364,418
17,416
34,834
38,895
18,761
(1,934)
472,390
Costs and expenses:
Cost of VOIs sold
14,420
-
-
-
-
-
14,420
Cost of other fee-based services
42,792
-
-
-
-
-
42,792
Cost reimbursements
37,594
-
-
-
-
-
37,594
Cost of trade sales
-
-
28,006
23,540
11,587
(15)
63,118
Cost of real estate inventory sold
-
2,643
-
-
-
-
2,643
Interest expense
19,567
-
256
57
43
2,886
22,809
Recoveries from loan losses, net
-
(2,385)
-
-
-
-
(2,385)
Impairment losses
-
-
-
-
2,756
-
2,756
Selling, general and administrative
expenses
237,882
4,373
5,477
17,078
11,161
23,990
299,961
Total costs and expenses
352,255
4,631
33,739
40,675
25,547
26,861
483,708
Equity in net earnings of unconsolidated
real estate joint ventures
-
8,742
-
-
-
-
8,742
Foreign exchange loss
-
-
(24)
-
-
-
(24)
Income (loss) before income
taxes
$
12,163
21,527
1,071
(1,780)
(6,786)
(28,795)
(2,600)
The following supplemental table represents BBX Capital’s
Consolidating Statement of Operations (unaudited) for the six
months ended June 30, 2018 (in thousands):
Bluegreen
BBX
Capital
Real Estate
Renin
IT'SUGAR
Other
Reconciling Items and
Eliminations
Segment Total
Revenues:
Sales of VOIs
$
124,714
-
-
-
-
-
124,714
Fee-based sales commissions
105,940
-
-
-
-
-
105,940
Other fee-based services
58,415
-
-
-
-
-
58,415
Cost reimbursements
30,260
-
-
-
-
-
30,260
Trade sales
-
-
31,875
36,304
14,139
(7)
82,311
Sales of real estate inventory
-
9,659
-
-
-
-
9,659
Interest income
42,240
1,834
-
1
95
(1,589)
42,581
Net gains on sales of real estate
assets
-
4,802
-
-
-
-
4,802
Other revenue
891
1,449
-
35
615
(379)
2,611
Total revenues
362,460
17,744
31,875
36,340
14,849
(1,975)
461,293
Costs and expenses:
Cost of VOIs sold
8,601
-
-
-
-
-
8,601
Cost of other fee-based services
34,045
-
-
-
-
-
34,045
Cost reimbursements
30,260
-
-
-
-
-
30,260
Cost of trade sales
-
-
26,148
21,784
11,166
(7)
59,091
Cost of real estate inventory sold
-
6,628
-
-
-
-
6,628
Interest expense
16,262
-
340
-
188
2,812
19,602
Recoveries from loan losses, net
-
(6,814)
-
-
-
-
(6,814)
Impairment losses
-
169
-
-
187
-
356
Selling, general and administrative
expenses
203,129
4,868
5,390
16,597
11,670
25,281
266,935
Total costs and expenses
292,297
4,851
31,878
38,381
23,211
28,086
418,704
Equity in net earnings of unconsolidated
real estate joint ventures
-
792
-
-
-
-
792
Foreign exchange gain
-
-
15
-
-
-
15
Income (loss) before income
taxes
$
70,163
13,685
12
(2,041)
(8,362)
(30,061)
43,396
The following supplemental table represents Bluegreen’s
System-wide sales of VOIs (1) for the three and six months ended
June 30, 2019 and 2018 as well as a reconciliation of Bluegreen’s
Sales of VOIs to its System-wide sales of VOIs (unaudited) (in
thousands):
For the Three Months
Ended
For the Six Months
Ended
June 30,
June 30,
2019
2018
2019
2018
Sales of VOIs
$
68,302
68,573
120,033
124,714
Provision for loan losses
11,919
13,454
23,072
21,473
Gross Sales of VOI's
80,221
82,027
143,105
146,187
Plus: Fee-based sales
83,352
89,934
150,146
158,618
System-wide sales of VOIs, net
$
163,573
171,961
293,251
304,805
(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 represents BBX Capital’s free
cash flow (1) for the three and six months ended June 30, 2019 and
2018 as well as a reconciliation of cash flow from operating
activities to free cash flow (unaudited) (in thousands):
For the Three Months
Ended
For the Six Months
Ended
June 30,
June 30,
2019
2018
2019
2018
Cash flow from operating activities
$
8,860
14,311
2,294
12,629
Capital expenditures for property and
equipment
(8,551)
(11,998)
(18,244)
(20,073)
Free cash flow
$
309
2,313
(15,950)
(7,444)
The following supplemental table represents Bluegreen’s free
cash flow (1) for the three and six months ended June 30, 2019 and
2018 as well as a reconciliation of Bluegreen’s cash flows from
operating activities to its free cash flow (unaudited) (in
thousands):
For the Three Months
Ended
For the Six Months
Ended
June 30,
June 30,
2019
2018
2019
2018
Cash flow from operating activities
$
670
9,752
11,612
23,215
Capital expenditures for property and
equipment
(7,009)
(9,643)
(14,516)
(15,105)
Free cash flow
$
(6,339)
109
(2,904)
8,110
(1) 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 item excluded from free
cash flow is a significant component in understanding and assessing
the Company’s financial performance.
The following supplemental table presents Bluegreen’s EBITDA and
Adjusted EBITDA, (1) defined below, for the three and six months
ended June 30, 2019 and 2018, as well as a reconciliation of
Bluegreen’s net (loss) income to its EBITDA and Adjusted EBITDA
(unaudited) (in thousands):
For the Three Months
Ended
For the Six Months
Ended
June 30,
June 30,
2019
2018
2019
2018
Net (loss) income
$
(6,052)
30,027
10,817
53,609
(Benefit) provision for income taxes
(3,957)
9,353
1,346
16,554
(Loss) income before income taxes
(10,009)
39,380
12,163
70,163
Add/(Less):
Interest income (other than interest
earned on VOI notes receivable)
(1,792)
(1,381)
(3,638)
(2,816)
Interest expense
4,991
3,873
9,235
6,930
Franchise taxes
25
43
60
124
Depreciation and amortization
3,504
2,989
6,870
5,917
Bluegreen EBITDA
(3,281)
44,904
24,690
80,318
EBITDA attributable to the
noncontrolling
interest in Bluegreen/Big Cedar
Vacations
(5,193)
(3,292)
(6,974)
(5,884)
(Gain) loss on assets held-for-sale
(1,989)
11
(1,980)
(9)
Bass Pro settlement
39,121
-
39,121
-
Corporate realignment costs
-
275
-
751
Adjusted EBITDA
$
28,658
41,898
54,857
75,176
(1) Bluegreen’s EBITDA is defined as earnings or net income,
before taking into account interest income (excluding interest
earned on VOI notes receivable), interest expense (excluding
interest expense incurred on financings related to Bluegreen’s
receivable-backed notes payable), income and franchise taxes, and
depreciation and amortization. For purposes of the EBITDA
calculation, 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.
Bluegreen’s Adjusted EBITDA is defined as EBITDA adjusted for
amounts attributable to noncontrolling interest in Bluegreen/Big
Cedar Vacations (in which Bluegreen has a 51% equity interest) and
items that the Company believes are not representative of ongoing
operating results. Accordingly, amounts paid, accrued, or incurred
in connection with the Bass Pro settlement in June 2019 were
excluded in the computation of Adjusted EBITDA.
The Company considers Bluegreen’s EBITDA and Adjusted EBITDA to
be an indicator of Bluegreen’s operating performance, and they are
used to measure Bluegreen’s ability to service debt, fund capital
expenditures and expand its business. 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 Bluegreen’s Adjusted EBITDA to be a useful
supplemental measure of Bluegreen’s operating performance 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 Bluegreen's financial
performance or as an alternative to cash flow from operating
activities as a measure of its liquidity. The Company's computation
of Bluegreen’s 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 Bluegreen’s financial
performance.
The following supplemental table presents Renin’s EBITDA and
Adjusted EBITDA, (1) defined below, for the three and six months
ended June 30, 2019 and 2018, as well as a reconciliation of
Renin’s net (loss) income to its EBITDA and Adjusted EBITDA
(unaudited) (in thousands):
For the Three Months
Ended
For the Six Months
Ended
June 30,
June 30,
2019
2018
2019
2018
Net (loss) income from Renin
$
(3)
42
$
631
12
Provision from income taxes
18
-
440
-
Income before income taxes
15
42
1,071
12
Add:
Interest expense
116
174
256
340
Depreciation and amortization
326
495
731
993
EBITDA
457
711
2,058
1,345
Foreign exchange loss (gain)
29
37
24
(15)
Adjusted EBITDA
$
486
748
$
2,082
1,330
(1) Renin’s EBITDA is defined as its earnings, or net income,
before taking into account interest expense, income taxes, and
depreciation and amortization, including the amortization of
product displays provided to customers for marketing purposes that
are presented as a reduction of trade sales under GAAP.
Renin’s Adjusted EBITDA is defined as EBITDA adjusted for
foreign exchange gains and losses, as exchange rates may vary
significantly among companies.
The Company considers Renin’s EBITDA and Adjusted EBITDA to be
an indicator of Renin’s operating performance, and they are used to
measure Renin’s ability to service debt, fund capital expenditures
and expand its business. 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.
The Company considers Renin’s Adjusted EBITDA to be a useful
supplemental measure of Renin’s operating performance 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 Renin’s financial
performance or as an alternative to cash flow from operating
activities as a measure of its liquidity. The Company’s computation
of Renin’s EBITDA and Adjusted EBITDA may differ from the
methodology utilized by other companies, and investors are
cautioned that items excluded from EBITDA and Adjusted EBITDA are
significant components in understanding and assessing Renin’s
financial performance.
The following supplemental table presents IT’SUGAR’s EBITDA and
Adjusted EBITDA, (1) defined below, for the three and six months
ended June 30, 2019 and 2018, as well as a reconciliation of
IT’SUGAR’s net income (loss) to its EBITDA and Adjusted EBITDA
(unaudited) (in thousands):
For the Three Months
Ended
For the Six Months
Ended
June 30,
June 30,
2019
2018
2019
2018
Net income (loss) from IT'SUGAR
$
143
(104)
$
(1,780)
(2,041)
Provision from income taxes
-
-
-
-
Income (loss) before income taxes
143
(104)
(1,780)
(2,041)
Add/(less):
Interest income
-
-
-
(1)
Interest expense
35
-
57
-
Depreciation and amortization
1,072
1,080
2,132
2,174
EBITDA and Adjusted EBITDA
$
1,250
976
409
132
(1) IT’SUGAR’s EBITDA is defined as earnings or net income,
before taking into account interest income, interest expense and
depreciation and amortization.
The Company considers IT’SUGAR’s EBITDA and Adjusted EBITDA to
be an indicator of IT’SUGAR’s operating performance, and they are
used to measure IT’SUGAR’s ability to service debt, fund capital
expenditures and expand its business. 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.
The Company considers IT’SUGAR’s Adjusted EBITDA to be a useful
supplemental measure of IT’SUGAR’s operating performance 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 IT’SUGAR’s financial
performance or as an alternative to cash flow from operating
activities as a measure of its liquidity. The Company’s computation
of IT’SUGAR’s EBITDA and Adjusted EBITDA may differ from the
methodology utilized by other companies, and investors are
cautioned that items excluded from EBITDA and Adjusted EBITDA are
significant components in understanding and assessing IT’SUGAR’s
financial performance.
The following supplemental table presents BBX Capital’s EBITDA
and Adjusted EBITDA, (1) defined below, for the three and six
months ended June 30, 2019 and 2018, as well as a reconciliation of
BBX Capital’s net (loss) income to its EBITDA and Adjusted EBITDA
(unaudited) (in thousands):
For the Three Months
Ended
For the Six Months
Ended
June 30,
June 30,
2019
2018
2019
2018
Net (loss) income
$
(7,624)
12,439
(2,986)
28,141
(Benefit) provision for income taxes
(1,338)
8,655
386
15,255
(Loss) income before income taxes
(8,962)
21,094
(2,600)
43,396
Add/(less):
Interest income (other than interest
earned on VOI notes receivable)
(1,435)
(927)
(2,688)
(3,157)
Interest expense
11,661
10,403
22,809
19,602
Interest expense on receivable-backed
debt
(5,069)
(4,622)
(10,332)
(9,332)
Franchise taxes
25
43
60
124
Depreciation and amortization
5,596
5,218
11,218
10,356
EBITDA
1,816
31,209
18,467
60,989
EBITDA attributable to non-controlling
interests
(8,043)
(7,543)
(12,237)
(13,345)
(Gain) loss on assets held-for-sale
(1,989)
11
(1,980)
(9)
Foreign exchange loss (gain)
29
37
24
(15)
Bass Pro settlement
39,121
-
39,121
-
Impairment of property and equipment and
intangible assets
2,138
-
2,756
-
Corporate realignment cost
-
1,719
-
2,818
Adjusted EBITDA
$
33,072
25,433
46,151
50,438
(1) BBX Capital’s EBITDA is defined as earnings or net income,
before taking into account interest income (excluding interest
earned on VOI notes receivable), interest expense (excluding
interest expense incurred on financings related to Bluegreen’s
receivable-backed notes payable), income and franchise taxes, and
depreciation and amortization. For purposes of the EBITDA
calculation, 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.
BBX Capital’s Adjusted EBITDA is defined as EBITDA adjusted for
amounts attributable to noncontrolling interest in Bluegreen and
Bluegreen/Big Cedar Vacations (in which Bluegreen has a 51% equity
interest) and items that the BBX Capital believes are not
representative of ongoing operating results including restructuring
charges and goodwill impairment losses. Accordingly, amounts paid,
accrued, or incurred in connection with the Bass Pro settlement in
June 2019, as well as impairments of property and equipment and
intangible assets related to certain of the Company’s MOD Pizza
restaurant locations, were excluded in the computation of Adjusted
EBITDA.
BBX Capital considers EBITDA and Adjusted EBITDA to be an
indicator of BBX Capital’s operating performance, and they are used
to measure BBX Capital’s ability to service debt, fund capital
expenditures and expand its business. 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.
BBX Capital considers Adjusted EBITDA to be a useful
supplemental measure of its operating performance 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 BBX Capital’s
financial performance or as an alternative to cash flow from
operating activities as a measure of its liquidity. BBX Capital’s
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 BBX Capital’s financial
performance.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190807005049/en/
BBX Capital Corporation:
Investor Relations: Leo Hinkley,
Managing Director, Investor Relations Officer 954-940-5300, Email:
LHinkley@BBXCapital.com
Media Relations: Kip Hunter Marketing, 954-765-1329, Nicole Lewis
/ Shannon O’Malley Email: nicole@kiphuntermarketing.com,
shannon@kiphuntermarketing.com
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