Bluegreen Announces Fiscal 2000 Year and Fourth Quarter Results

Business Wire,  May 30, 2000  

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Business Editors

BOCA RATON, Fla.--(BUSINESS WIRE)--May 30, 2000

Bluegreen Corporation (NYSE: BXG), a leading U.S. developer and marketer of timeshare resorts, golf communities and residential land, today announced financial results for the fiscal 2000 year and fourth quarter ended April 2, 2000 (see attached tables).

Record Fiscal 2000 Timeshare Sales Comprise 54.7% of Total Sales - A Company Milestone

Timeshare sales for fiscal 2000 increased 13.7% to a record $117.3 million, or 54.7% of total sales, as compared to $103.1 million, or 45.7% of total sales, last year. Timeshare sales for the fourth quarter of fiscal 2000 totaled $25.0 million, or 61.2% of total sales, as compared to $28.2 million, or 53.2% of total sales, for the same period last year. The twelve months ended April 2, 2000 marks the first time in Bluegreen's history that timeshare sales surpassed those of the residential land and golf division for an entire fiscal year. Management believes that this milestone validates the strategy implemented in 1997 that has resulted in Bluegreen becoming one of the industry's leading timeshare developers/operators. Management also expects that timeshare sales will continue to represent a higher percentage of total sales, as existing timeshare properties mature and additional resorts are added to Bluegreen's timeshare portfolio.

Fiscal 2000 lot sales, comprised of golf communities and residential land, were $97.2 million versus $122.7 million last year, while lot sales for the fiscal 2000 fourth quarter totaled $15.8 million as compared to $24.8 million for the comparable period one year ago.

Despite the double-digit annual increase in timeshare sales, timeshare sales for the fiscal 2000 fourth quarter were impacted by decreased tour-flow and lower conversion rates due to unforeseen challenges in completing the roll out and integration of the Bluegreen Vacation Club. By the end of the fourth quarter, all of the Company's existing resorts (other than Aruba) were using the Vacation Club for new customers and the sales force was trained and positioned to present the Club and sell Bluegreen's points-based system. The Company believes that these efforts should benefit future timeshare sales, beginning in the first quarter of fiscal 2001. Lower lot sales were the result of decreases in available inventories during the second half of fiscal 2000 as compared to the same period last year, due, in part, to a strategic decision not to replace certain sold-out properties in areas of the country where Bluegreen has chosen to exit. Revenues generated from the sale of these properties were included in fiscal 1999 results. Also contributing to the shortage of available inventories for sale were delays experienced by the Company in the acquisition and development of new larger scale projects currently underway, including Brickshire, a Bluegreen Golf community located in Virginia, as well as Texas projects such as Mystic Shores, Mountain Lakes, Riverwood Forest and a new phase of the successful Lake Ridge at Joe Pool Lake.

Infrastructure Investments/Marketing & Acquisition Initiatives Underway

George Donovan, President and CEO of Bluegreen, commented, "We believe that lower timeshare and lot sales, as well as lower total operating revenues and net income for the 2000 year and fourth quarter, are temporary and do not reflect a shift of industry trends or call into question the validity of our business model.

"With the start of fiscal 2001, we are more optimistic about the future of our business and industry than at any time in our history. Fiscal 2000 may best be defined as a year of transition for Bluegreen. Our business and industry are evolving and during the past year we invested in excess of $5 million in human, technological, capital and creative resources to develop and initiate new and innovative ways to reach the consumer, exploit converging market trends and offer the best and most personalized lifestyle experience possible. These investments, coupled with lower timeshare and golf community and residential land sales, also impacted our operating results for the fiscal 2000 fourth quarter and year. The short-term negative impact to our operations that these initiatives caused will, we believe, result in long-term benefits to Bluegreen and its shareholders.

"Several initiatives are already in place and are producing encouraging results. The foundation for much of these efforts will be our new emphasis on permission marketing, which produces a more relevant lead base and enhances marketing effectiveness. As indicated above, all of our resorts (except Aruba) utilize the Bluegreen Vacation Club, in which new consumers purchase points as opposed to weekly vacation intervals. We believe that this facet of our business offers great potential for growth. We also launched Phase I of our re-designed, interactive website at www.bluegreenonline.com, which will enhance and simplify the consumer's vacation experience options, and opened two new call centers in Florida and Indiana to pursue leads generated from the site.