FORT LAUDERDALE, Fla., Nov. 14 /PRNewswire-FirstCall/ -- BFC
Financial Corporation (NYSE:BFF), a diversified holding company
that invests in and acquires operating businesses in a variety of
industries, today announced financial results for the third quarter
2006. For the quarter ended September 30, 2006, BFC Financial
Corporation ("BFC" or "the Company") had a net loss allocable to
common stock of $1.4 million or a diluted loss per share of
($0.04), compared with net income allocable to common stock of $1.9
million, or $0.05 per diluted share reported in the third quarter
2005. Year-to-date, the Company reported a net loss allocable to
common stock of $2.1 million or a diluted loss per share of
($0.06), compared to net income allocable to common stock of $8.6
million, or $0.27 per diluted share reported for the nine months
ended September 30, 2005. As a holding company with limited
operations, BFC's financial results primarily reflect the results
of the operating companies in which it has its principal
investments. The Company's results for the period reflect the lower
earnings of its principal holdings, BankAtlantic Bancorp and Levitt
Corporation. Further, both companies are implementing strategic
long-term initiatives that generally reduce shorter-term earnings
performance. Levitt Corporation's results were impacted by the
adverse market conditions in the homebuilding industry, while
BankAtlantic's results were impacted by the losses at its
wholly-owned investment banking and brokerage subsidiary, Ryan Beck
and higher operating expenses in connection with BankAtlantic's
store expansion initiatives. While BankAtlantic Bancorp and Levitt
Corporation anticipate their respective initiatives will position
each company for future growth and improved profitability, these
strategies have a negative impact on each company's current
financial results. As a long-term investor, BFC supports its
portfolio companies' efforts to build and strengthen their
respective businesses with a goal of achieving long-term
sustainable earnings growth. Developments during the quarter at
each of the companies include: BankAtlantic Bancorp: *
BankAtlantic's 'Florida's Most Convenient Bank' initiatives
produced continued growth in new customers, with 62,000 and 197,000
new low cost deposit accounts opened in the third quarter of 2006
and year-to-date 2006, respectively, an increase of 21% and 27%
over the number of accounts opened in the corresponding 2005
quarter. Balances of these new accounts have aggregated
approximately $443 million year-to-date. At quarter end, "total
bank" and "same store" low cost deposit balances increased 5.5% and
5.3%, respectively, compared to the third quarter 2005, an increase
of $110 million in low cost deposit balances. As noted in earlier
quarters, growth in balances in new low cost accounts remains very
strong, but declines in legacy balances have negatively impacted
growth in net aggregate balances. Demand deposits declined slightly
to 27.5% of total deposits from 29.2% in the second quarter 2006.
Year- over-year, low cost deposit balances rose to 57.3% of total
deposits, up from 54.0% in the third quarter of 2005. *
BankAtlantic previously announced its store expansion program for
the next two years, including the anticipated opening of 40 new
stores (bank branches) in the next 18-24 months. BankAtlantic also
announced its plans to open at least four new full service stores
in the greater Orlando area in 2007. The first two stores are
expected to open during the first quarter, and its total expansion
plan currently calls for opening more than 20 stores in the greater
Orlando area over the next several years. * Ryan Beck was selected
to act as selling agent in connection with the subscription
offering of People's Mutual Holdings' and People's Bank's
previously announced second step mutual conversion, according to a
registration statement filed by People's Bank's proposed holding
company, People's United Financial, Inc. on November 3, 2006. In
addition, Ryan Beck will act as joint lead manager for the
syndicated offering. Levitt Corporation: * Total revenue from sales
of real estate in the homebuilding division for the third quarter
of 2006 increased 10.8% to $122.6 million, up from $110.7 million
earned in the corresponding 2005 period. During the third quarter
of 2006, deliveries declined to 403 units versus 439 units
delivered in the comparable 2005 quarter. * Net new orders
decreased 19.3% to 196 units in the third quarter of 2006 from 243
units in the comparable 2005 period, mirroring the sales trends
recently reported by several other public home builders, while the
cancellation rate (defined as cancellations divided by gross sales)
increased to 36% from 21% in the third quarter 2005. Demand in
Levitt's active adult communities, which constitute 67% of its
unsold lot inventory, experienced continued softness in Florida as
buyers appeared to remain concerned about their ability to sell
their existing homes; however, sales at its projects in Atlanta and
Myrtle Beach continue to meet expectations. Average selling prices
for new orders in the third quarter of 2006 were $347,000, up from
$340,000 in the comparable 2005 period. * While homebuilding
backlog was 6.5% lower at the end of the September 2006 quarter
with 1,592 homes in backlog versus the similar 2005 period with
1,703 homes in backlog, higher selling prices yielded a 12.1%
increase in backlog value to $554.6 million versus $494.8 million
in the third quarter of 2005. The average sales price of the homes
in backlog for this quarter increased 19.6% to $348,000, up from
$291,000 in the third quarter of 2005. * Levitt's margin percentage
(defined as sales of real estate, minus cost of sales of real
estate, divided by sales of real estate) was 19.2% for the third
quarter of 2006, versus 21.2% in the comparable 2005 quarter and
20.5% in the second quarter of 2006. SG&A as a percent of total
homebuilding revenues were approximately 17.3% in the quarter,
versus 12.3% in the third quarter of 2005. The increase reflected
the effect of added compensation expense associated with higher
average headcount and recruitment costs, advertising and costs
associated with new communities that are not expected to generate
revenue until 2007. Further, Levitt recorded a charge of $900,000
in the third quarter in connection with an approximate 11%
reduction in workforce in July 2006, and other retirement costs and
retention programs. Annual cash savings from the July workforce
reduction are anticipated to total approximately $4.2 million. *
Revenue from land sales in the land division was $8.3 million for
the third quarter compared to $17.9 million during the same 2005
period. During the quarter, 29 acres were sold with a margin of
42.7%. Total SG&A increased to $4.3 million during the quarter
from $2.4 million for the same 2005 period. This increase reflects
an additional headcount in support of new commercial development
operations and at the Tradition(TM) South Carolina project, higher
advertising and marketing costs, and an increase in property taxes.
The backlog in Levitt's land division at September 30, 2006
consisted of contracts for the sale of 69 acres at Tradition(TM)
Florida with a sales value of $20.3 million. * The Torrey Pines
Institute for Molecular Studies (TPIMS) announced its intention to
establish its Florida headquarters in Tradition Florida in Port St.
Lucie, creating nearly 190 high-paying jobs over time and further
cementing Florida's Treasure Coast as a destination for biotech
industry. TPIMS will be the first major tenant in Tradition's
planned employment corridor. * In October, Levitt and Sons(R)
opened Seasons at Seven Hills, a 730-home active adult community in
the Atlanta region within the Cousins Properties'
multi-generational Seven Hills community. * Bluegreen Corporation,
approximately 31% of which is owned by Levitt Corporation,
announced sales of $172.5 million and net income of $21.9 million
for the 2006 third quarter, versus sales and net income for the
2005 third quarter of $166.7 million and $18.3 million,
respectively. Effective January 1, 2006, Bluegreen was required to
adopt the American Institute of Certified Public Accountants'
Statement of Position 04-2, "Accounting for Real Estate
Time-Sharing Transactions (the "SOP"), which changed the rules for
many aspects of timeshare accounting, including revenue
recognition, inventory costing and incidental operations. As
previously announced by Bluegreen, the adoption of the new
accounting regulations adversely impacted Bluegreen's results by
changing many aspects of timeshare accounting, including revenue
recognition, inventory costing and accounting for incidental
operations. As a result of this accounting change, recognition of a
portion of Bluegreen's sales and profits from its Resorts division
was shifted from the first half of 2006 until the second half of
the year. Bluegreen's results for its third quarter reflect the
impact of this anticipated shift. Bluegreen's management continues
to believe that its business and markets remain fundamentally
strong and are demonstrating solid growth. On a pro forma, non-GAAP
basis excluding the impact of the SOP, total sales and net income
in the third quarter of 2006 were $217.2 million and $19.5 million,
respectively, versus the comparable 2005 period's sales and net
income of $204.2 million and $18.3 million, respectively. Benihana,
Inc.: * Benihana Inc. reported a 9.8% increase in company-wide
comparable restaurant sales for fiscal year 2007 second quarter
ended October 8, 2006. Comparable restaurant sales for the Benihana
teppanyaki restaurants increased 9.3%, while comparable restaurant
sales rose 12.8% at RA Sushi and 10.3% at Haru, with eight and
seven restaurants, respectively in their comparable restaurant
base. * Total restaurant sales increased 7.9% to $58.6 million from
$54.3 million during the same quarter last year. During the second
quarter ended October 8, 2006, Benihana teppanyaki restaurants
represented approximately 74% of consolidated restaurant sales
while RA Sushi and Haru accounted for 14% and 12% of consolidated
restaurant sales, respectively. The year-ago period included
approximately $0.5 million in revenue from the Sushi Doraku
restaurant concept, which was sold in April 2006. Restaurant sales
were negatively impacted by approximately $2.5 million, net during
the second quarter of fiscal 2007 because of temporary closures
under the Company's renovation program. There were a total of 840
store-operating weeks during the current second fiscal quarter
compared with 855 store-operating weeks during last year's second
fiscal quarter. * Benihana continues to grow its Japanese-themed
restaurant concepts with its 77 restaurants nationwide, including
59 Benihana teppanyaki restaurants, seven Haru sushi restaurants
and eleven RA Sushi Bar restaurants. In addition, a total of 17
franchised Benihana teppanyaki restaurants are now open in the U.S.
and Latin America. * BFC's purchases in 2004 and 2005 of an
aggregate of 800,000 shares of Benihana Convertible Preferred Stock
represents an investment by BFC of $20 million which, based on
NASDAQ closing stock price as of September 29, 2006 was convertible
into $30.5 million of Benihana Common Stock. The underlying closing
price of the common stock will, of course, fluctuate from time to
time. Our holdings in Benihana upon conversion would represent
approximately 25% of Benihana's voting common stock and 10% of
Benihana's outstanding equity interest.
*********************************** On June 22, 2006, BFC announced
that its Class A common stock began trading on the NYSE Arca
exchange ("NYSE Arca") under the symbol "BFF." BFC's Class A Common
Stock had previously traded on the NASDAQ National Market since
April 2003. On October 27, 2006, BFC announced that its Board of
Directors had approved the repurchase, through a share repurchase
program, of up to 1,750,000 shares of its Class A Common Stock,
which constitutes approximately 5 percent of its total common stock
presently outstanding, at an aggregate cost of no more than $10
million. Results by Segment: The following table shows net income
(loss) for each segment and earnings (loss) per share including the
items discussed above for the three months and nine months ended
September 30, 2006 and 2005 (in thousands, except per share data):
Three Months Ended Nine Months Ended 2006 2005 2006 2005 BFC
Activities $ (2,170) $ (3,133) $ (5,489) $(11,316) Financial
Services 2,338 16,260 17,172 60,675 Homebuilding & Real Estate
Development 2,972 10,708 1,575 46,578 Eliminations - (97) - (796)
3,140 23,738 13,258 95,141 Non-controlling interest 4,308 21,589
14,764 85,663 (Loss) income from continuing operations (1,168)
2,149 (1,506) 9,478 Discontinued operations, less income taxes -
(92) - (290) Net (loss) income (1,168) 2,057 (1,506) 9,188 5%
Preferred Stock dividends 187 187 562 562 Net (loss) income
allocable to common stock $ (1,355) $ 1,870 $ (2,068) $ 8,626 Basic
(loss) earnings per share from continuing operations $ (0.04) $
0.06 $ (0.06) $ 0.32 Basic (loss) earnings per share from
discontinued operations $ - $ - $ - $ (0.01) Basic earnings (loss)
per share $ (0.04) $ 0.06 $ (0.06) $ 0.31 Diluted (loss) per share
from continuing operations $ (0.04) $ 0.05 $ (0.06) $ 0.28 Diluted
(loss) per share from discontinued operations $ - $ - $ - $ (0.01)
Diluted (loss) earnings per share $ (0.04) $ 0.05 $ (0.06) $ 0.27
Basic weighted average number of common shares outstanding 33,427
31,751 33,181 27,983 Diluted weighted average number of common and
common equivalent shares outstanding 33,427 34,121 33,181 30,471 *
The "BFC Activities" segment includes BFC's real estate owned,
loans receivable that relate to previously owned properties, its
investment in Benihana Convertible Preferred Stock and other
securities and investments, including the operations of its
wholly-owned subsidiary Cypress Creek Capital, BFC's overhead and
interest expense and the financial results of a venture partnership
that BFC controls. Since BFC is a holding company whose principal
activities consist of managing investments and seeking and
evaluating potential new investments, BFC itself has no significant
direct revenue or cash-generating operations. Accordingly, the "BFC
Activities" segment will generally reflect a loss as the current
amount of dividends, interest and fees from investments do not
currently cover BFC parent company operating costs. * The
"Financial Services" segment includes BankAtlantic Bancorp and its
subsidiaries, BankAtlantic and Ryan Beck Holdings, Inc. * The
"Homebuilding & Real Estate Development" segment includes
Levitt Corporation and its subsidiaries, Levitt and Sons(R) and
Core Communities, and Levitt's investment in Bluegreen Corporation.
* "Noncontrolling Interest" represents that portion of a
consolidated entity that is owned by others. Both BankAtlantic
Bancorp and Levitt Corporation are consolidated in BFC's financial
statements because of BFC's voting control ownership position in
each of those companies, even though BFC's equity ownership is less
than a majority in each entity. At September 30, 2006, BFC owned
21.6% of the economic interest and held 54.9% of the voting control
of BankAtlantic Bancorp and 16.6% of the economic interest and
52.9% of the voting control of Levitt Corporation. Shareholders'
Equity or Book Value: Shareholders' equity or book value decreased
from $183 million as of December 31, 2005 to $177 million as of
September 30, 2006. This decrease was primarily due to the
retirement of Common Stock relating to the exercise of stock
options, the net loss for the nine months ended September 30, 2006,
the effects of subsidiaries' capital transactions and cash
dividends on the 5% Cumulative Convertible Preferred Stock
partially offset by the retirement of common stock received as
consideration for the exercise price and minimum withholding tax
amounts upon the exercise of options. Market Value of BankAtlantic
Bancorp and Levitt Corporation: BFC's holdings include 13.2 million
shares of common stock of BankAtlantic Bancorp and 3.3 million
shares of common stock of Levitt Corporation. The market value of
BFC's holdings in these two companies, based upon NYSE closing
prices, which will fluctuate from time to time, was $227 million at
September 29, 2006. BFC also owns 800,000 shares of Convertible
Preferred Stock in Benihana, Inc., which is convertible into
approximately 1.1 million shares of Common Stock. Based on the
closing price of Benihana, BFC's investment, if converted, was
worth approximately $31 million as of September 29, 2006. Other:
BFC's quarterly report on Form 10-Q for the quarter ended September
30, 2006 contains additional information and was filed with the
Securities and Exchange Commission on November 9, 2006. The Form
10-Q for the quarter ended September 30, 2006 will be posted on
BFC's website, which can be accessed via
http://www.bfcfinancial.com/. About BFC Financial Corporation: BFC
Financial Corporation (NYSE Arca: BFF) is a diversified holding
company that invests in and acquires private and public companies
in different industries. BFC is typically a long-term, "buy and
hold" investor whose direct and indirect, diverse ownership
interests span a variety of business sectors, including consumer
and commercial banking; brokerage and investment banking services;
homebuilding; development of master-planned communities; the
hospitality and leisure sector through the development, marketing
and sales of vacation resorts on a time-share, vacation club model;
the restaurant and family dining business, and real estate
investment banking and investment services. BFC's current holdings
include BankAtlantic Bancorp and its subsidiaries, BankAtlantic and
Ryan Beck Holdings, Inc.; Levitt Corporation, which includes its
subsidiaries Levitt and Sons(R), Core Communities and its 31%
ownership in Bluegreen Corporation; a minority interest in the
renowned national restaurant chain, Benihana, Inc., and Cypress
Creek Capital, a wholly-owned subsidiary. For further information,
please visit our website at: http://www.bfcfinancial.com/. To
receive future news releases or announcements directly via Email,
please click on the Email Broadcast Sign Up button. BFC Contact
Info: Investor and Corporate Communications: Sharon Lyn, Vice
President Email: Investor Relations: Leo Hinkley, Senior Vice
President Email: Mailing Address and Telephone: BFC Financial
Corporation Attn: Investor Relations 2100 West Cypress Creek Road
Fort Lauderdale, FL 33309 Phone: (954) 940-4994 Fax: (954) 940-5320
Matters discussed in this press release may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Actual results, performance or achievements
could differ materially from those contemplated, expressed or
implied by the forward-looking statements contained herein. Past
performance is no indication of current or future results. These
forward-looking statements are based largely on the expectations of
BFC and are subject to a number of risks and uncertainties that are
subject to change based on factors which are, in many instances,
beyond the Company's control including the risks and uncertainties
with respect to its current investments and any future investments,
that resources may not be available to make desired investments or
acquisitions; that the performance of the Company and its portfolio
companies are subject to general economic conditions and the
condition of their individual industries; that expansion, strategic
plans and initiatives pursued by its portfolio companies may not be
successful, and those disclosed in the Company's filings with the
Securities and Exchange Commission. Moreover, this press release
contains only summary and partial financial data for the periods in
question. More complete information is contained in our 2005 Annual
Report on Form 10-K and BFC's quarterly reports on Form 10-Q filed
with the Securities and Exchange Commission and available on BFC's
website at http://www.bfcfinancial.com/. Additional information
relating to BFC's publicly-traded portfolio companies, including
the risks and uncertainties relating to their respective
businesses, is contained in reports filed by those companies with
the Securities and Exchange Commission at http://www.sec.gov/.
http://www.newscom.com/cgi-bin/prnh/20050714/FLTH001LOGO
http://photoarchive.ap.org/ DATASOURCE: BFC Financial Corporation
CONTACT: Investor and Corporate Communications, Sharon Lyn, Vice
President, , or Investor, Leo Hinkley, Senior Vice President, ,
both of BFC Financial Corporation Web site:
http://www.bfcfinancial.com/
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