The partial article below pretty much cuts to the chase. Bluegreen's main focus is sales. Not providing owners with happy vacations but selling more VOIs or Vacation Ownership Intervals, so they can pay dividends to their stockholders who in turn can take you money and go on vacation themselves. I'm betting they do not own Bluegreen points. To read the entire article visit: http://money.cnn.com/news/newsfeeds/articles/marketwire/11G025179-001.htm
The following provides financial and other information regarding our
assets, including our investment in Bluegreen and acquired operating
businesses, our real estate joint ventures, and our BankAtlantic legacy
portfolio of loans and foreclosed real estate.
Bluegreen Overview for the Third Quarter, 2014 Compared to Third Quarter 2013
Bluegreen Corporation: On April 2, 2013, BBX Capital acquired a
46% interest in Woodbridge Holdings, LLC ("Woodbridge"). BFC Financial
Corporation ("BFC"), BBX Capital's parent company, owns the remaining
54% of Woodbridge. Woodbridge's principal asset is its 100% ownership of
Bluegreen Corporation ("Bluegreen").
For the quarter ended September 30, 2014, net income attributable to
Woodbridge was $16.6 million, of which $17.2 million related to the
operations of Bluegreen. BBX Capital recognized 46% of the net income
attributable to Woodbridge, or $7.6 million, for the quarter ended
September 30, 2014. For the nine month period ended September 30, 2014,
net income attributable to Woodbridge was $47.8 million, of which $49.7
million related to the operations of Bluegreen. BBX Capital recognized
46% of the net income attributable to Woodbridge, or $22.0 million, for
the nine month period ended September 30, 2014.
During the third quarter of 2013 and the first, second and third
quarters of 2014, Bluegreen paid cash dividends of $18.0 million, $14.5
million, $19.0 million, and $19.0 million, respectively, to
Woodbridge. Woodbridge paid cash dividends to BBX Capital of $ 3.7
million, $6.4 million, $8.4 million, and $8.5 million, respectively,
during September 2013, April 2014, June 2014, and August 2014, based on
BBX Capital's pro rata 46% interest in Woodbridge.
Bluegreen Highlights for the Third Quarter, 2014 Compared to Third Quarter, 2013
(1) Bluegreen's sales of VOIs under its capital-light business
strategy include sales of VOIs under
fee-based sales and marketing arrangements, just-in-time
inventory acquisition arrangements. Bluegreen enters into agreements
with third party developers that allow Bluegreen to buy VOI inventory
from time to time in close proximity to the timing of when Bluegreen
intends to sell such VOIs and refers to this as "Just in Time"
arrangements. Bluegreen also acquires VOI inventory from resorts'
property owner associations ("POAs") and other third parties close to
the time Bluegreen intends to sell such VOIs. Such VOIs are typically
obtained by the POAs through foreclosure in connection with maintenance
fee defaults, and are generally acquired by Bluegreen at a significant
discount. Bluegreen refers to sales of inventory acquired through these
arrangements as "Secondary Market Sales."
System-wide sales of VOIs, net include all sales of VOIs, regardless
of whether Bluegreen or a third-party owned the VOI immediately prior to
the sale. The sales of third-party owned VOIs are transacted as sales
of timeshare interests in the Bluegreen Vacation Club through the same
selling and marketing process Bluegreen uses to sell its VOI
inventory. The growth in system-wide sales of VOIs, net during 2014 as
compared to 2013 reflects an increase in the number of tours and an
increase in the sale-to-tour conversion ratio. During the three months
ended September 30, 2014, the number of tours increased by 9% compared
to the same period in 2013. The increase in the number of tours reflects
efforts to expand marketing to sales prospects through new marketing
initiatives. Additionally, during the three months ended September 30,
2014, Bluegreen's sale-to-tour conversion ratio increased 1% compared to
the same period in 2013.
During the three months ended September 30, 2014 and 2013, cost of
VOIs sold as a percentage of sales of VOIs was 12% and 14%,
respectively. The decrease in cost of sales generally and as a
percentage of sales during 2014 is a result of a higher proportion of
Secondary Market sales, which typically carry a relatively lower
acquisition cost. Cost of VOIs sold as a percentage of sales of VOIs
varies between periods based on the relative costs of the specific VOIs
sold in each period and the size of the point packages of the VOIs sold
(due to offered volume discounts, including consideration of cumulative
sales to existing owners). Additionally, the effect of changes in
estimates under the relative sales value method, including estimates of
project sales, future defaults, upgrades and incremental revenue from
the resale of repossessed VOI inventory, are reflected on a
retrospective basis in the period the change occurs. Therefore, cost of
sales will typically be favorably impacted in periods where a
significant amount of Secondary Market VOI inventory is acquired and the
resulting change in estimate is recognized.
As a percentage of system-wide sales, net, selling and marketing
expenses increased from 45% during the third quarter of 2013 to 48%
during the third quarter of 2014. Generally, the increase in selling and
marketing expenses and the increase in selling and marketing expenses
as a percentage of sales during the 2014 periods compared to the 2013
periods was a result of Bluegreen's continued focus on increasing its
marketing efforts to new customers as opposed to existing owners. Sales
to existing owners generally involve lower marketing expenses than sales
to new customers. Bluegreen expects to continue to increase its focus
on sales to new owners and, as a result, sales and marketing expenses
generally and as a percentage of sales may continue to increase.
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