EX-99.1 2 d591653dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

 

LOGO

 

Bluegreen Corporation

August 2013

 

   LOGO


LOGO

 

Statements in this presentation may constitute forward-looking statements and are made pursuant to the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Forward looking statements are based largely on expectations and are subject to a number of risks and uncertainties including, but not limited to, the risks and uncertainties associated with economic, credit market, competitive and other factors affecting the Company and its operations, markets, products and services; risks relating to the merger with BFC Financial Corporation (“BFC”); the Company’s efforts to improve its liquidity through cash sales and larger down payments on financed sales may not be successful; the performance of the Company’s VOI notes receivable may deteriorate, and the FICO® score-based credit underwriting standards may not have the expected effects on the performance of the receivables; the Company may not be in a position to draw down on its existing credit lines or may be unable to renew, extend, or replace such lines of credit; the Company may require new credit lines to provide liquidity for its operations, including facilities to sell or finance its notes receivable; the Company may not be able to successfully securitize additional timeshare loans and/or obtain adequate receivable credit facilities in the future; risks relating to pending or future litigation, regulatory proceedings, claims and assessments; sales and marketing strategies may not be successful; marketing costs may increase and not result in increased sales; system-wide sales, including sales on behalf of third parties and sales to existing owners, may not continue at current levels or they may decrease; fee-based service initiatives may not be successful and may not grow or generate profits as anticipated; it may be necessary or desirable to increase capital expenditures, thereby decreasing free cash flow; risks related to other financial trends discussed in this presentation including that the Company may be required to further increase its allowance for loan losses in the future and record additional impairment charges as a result of any such increase; selling and marketing expenses as a percentage of system-wide sales of VOIs, net may not remain at current levels or they may increase; and the Company’s indebtedness may increase in the future; and the risks and other factors detailed in the Company’s previous SEC filings and BFC’s SEC filings, including those contained in the “Risk Factors” sections of such filings.

 

1


LOGO

 

Table of Contents

 

  Company Profile

 

  Highlights

 

  Our Industry

 

  Our Business

 

  Liquidity

Appendices

 

  A – Non-GAAP Reconciliations

 

  B – Other Information

NOTE: Bluegreen Corporation’s (“Bluegreen’s”) financial statements and all amounts derived from such included in this presentation are presented on Bluegreen’s historical basis accounting, materially consistent with the basis of accounting used in Bluegreen’s Annual Report on Form 10-K for the year ended December 31, 2012. Therefore, certain amounts included in this presentation will differ from the disclosure of Bluegreen’s financial statements in BFC Financial Corporation’s (“BFC’s”) filings with the Securities and Exchange Commission, due to the impact of certain “purchase accounting” adjustments recorded by BFC in connection with its November 2009 indirect acquisition of approximately 7.4 million additional shares of Bluegreen’s Common Stock, which resulted in BFC, indirectly, holding a controlling interest in Bluegreen.

 

2


LOGO

 

Company Profile

 

    A leading leisure/hospitality management & marketing company with desirable vertical integration, focused on the timeshare industry.

 

    Founded in 1966 and entered the timeshare space in 1994, today Bluegreen is one of the largest timeshare companies.

 

    Bluegreen was publicly-traded from 1985 – 2013, and had grown to be the third(a) largest publicly-traded timeshare company.

 

    In April 2013, BFC Financial Corporation (OTC: BFCF) (“BFC”) completed its previously announced acquisition of Bluegreen Corporation (the “Merger”). BFC had been a significant Bluegreen shareholder since 2002 and the majority shareholder since 2009. As a result of the Merger, Bluegreen became an indirect, wholly-owned subsidiary of BFC and ceased to be an SEC registrant.

 

    Core product is the flexible, points-based Bluegreen Vacation Club.

 

    Strong emphasis on customer experience; attractive demographic profile.

 

    This platform supports three source of revenues:

 

    Traditional timeshare business

 

    Growing fee-based services business

 

    Finance business

 

  (a) Based on 2012 sales.

LOGO

 

 

3


LOGO

 

Highlights

Operating model features improvements from historical, capital-intensive timeshare model:

 

    “Capital light” business model that is generating cash from multiple streams:

 

    Traditional timeshare sales operations generate significant cash sales and currently have historically low capital requirements

 

    Fee-based Services Business:

 

    Fee-Based services sales & marketing commissions

 

    Property management, title, mortgage servicing & other Fee-Based services

 

    Finance business income

 

    Growing sales while focusing on marketing efficiencies

 

    Improving debt profile

 

    Minimizing capital spending

 

    Established FICO® score – based credit underwriting program in December 2008

 

    Completed sale of non-core real estate business (Bluegreen Communities) in May 2012

 

4


LOGO

 

Highlights (cont.)

 

  Generated operating/investing cash flow of approximately $162 million in 2012(a).

 

  Increased cash realized within 30 days of sale from 24% of sales in 2008, to 53% in 2012.

 

  The “capital-light” fee-based service business model generated $57 million in pre-tax profits in 2012.

 

  Receivable-backed debt decreased 40% to $446 million at December 31, 2012 from $748 million at December 31, 2008.

 

  Lines-of-credit and notes payable declined 90% to $22 million as of December 31, 2012 from $222.7 million as of December 31, 2008. Added $75 million in April 2013, in connection with the Merger.

 

  Capital expenditures decreased from $188 million in 2008 to $18 million in 2012.

 

(a) Excludes $27.8 million of gross proceeds from sale of Bluegreen Communities

 

5


LOGO

 

Highlights (cont.)

 

  Associate headcount went from 6,396 as of 9/30/08 to 4,387 as of 12/31/12.

 

  Revolving receivable credit facilities of $190 million with availability of $81 million as of June 30, 2013(a).

 

  Unrestricted cash and equivalents of $113.7 million as of June 30, 2013.

 

  Improved delinquency and default performance in FICO® score-based credit underwritten portfolio.

 

  Recent transactions in credit and securitization markets (including Merger financing of $75 million).

 

  Sales to Bluegreen Vacation Club owners represented 58% of total Resort sales in 2012, indicating a high level of customer satisfaction and providing a low cost marketing channel.

 

(a) Including July 10, 2013 facility renewal.

 

6


LOGO

 

Results of Operations

 

System Wide VOI Sales, Net (a)

($ in millions)

 

LOGO

Income from Continuing Operations (b)

($ in millions)

 

 

LOGO

 
(a) Excludes estimated uncollectible VOI notes receivable. Includes sales made on behalf of fee-based service clients.
(b) Net of income taxes.

 

7


LOGO

 

Adjusted EBITDA (a)

($ in millions)

 

 

LOGO

Capital Expenditures (b)

($ in millions)

 

LOGO

 
(a) See Appendix A for reconciliation of Adjusted EBITDA to GAAP income/loss.
(b) Excludes expenditures under “Just-in-Time” arrangements as part of the Fee-Based Services business.

 

8


LOGO

 

Timeshare Industry

 

    2012 U.S. Timeshare sales of approximately $6.9 billion (up 6%).

 

    Highest one-year sales growth since 2006.

 

    Other participants include: Wyndham, Marriott, Starwood, Hilton, Hyatt, Disney, Diamond, Orange Lake and Silverleaf.

 

    Increased activity in the industry in corporate transactions, consolidation and ongoing affiliation through Fee-Based Service arrangements.

 

9


LOGO

 

Why not just rent?

Hotel Room vs. Timeshare Vacation Home

 

LOGO

 

10


LOGO

 

Bluegreen Vacations

 

    Vacation Ownership Interests (real estate) sold through points-based Bluegreen Vacation Club®.

 

    More than 174,000 owners in the Bluegreen Vacation Club and over 219,000 owners under management as of June 30, 2013.

 

    62 in-network resorts.

 

    Access to 23 Shell Vacation Club Resorts through “Select Connections” partnership.

 

    Access to 13 Raintree Vacation Club Resorts through Prizzma.

 

    In January 2013, Bluegreen Vacations was named the “Official Vacation Ownership Provider of Choice Hotels”.

LOGO

 

 

11


LOGO

 

Bluegreen Vacation Club

Vacation Ownership with Flexibility, Quality and Value

Since 1994

Owners get the flexibility of a points-based reservation system, not an internal exchange.

 

LOGO

Note: All subject to terms and conditions of the Bluegreen Vacation Club.

 

12


LOGO

 

Bluegreen Vacation Club Resorts

 

LOGO

 

13


LOGO

 

Bluegreen Vacation Club Resorts

 

LOGO

Mountain Run at Boyne, Boyne Falls Michigan

 

LOGO

Grande Villas at World Golf Village, St. Augustine, Florida

LOGO

Club 36, Las Vegas, Nevada

 

LOGO

The Fountains, Orlando, Florida

 

 

14


LOGO

 

Bluegreen Vacation Club Resorts

 

LOGO

La Cabana , Oranjestad, Aruba

 

LOGO

MountainLoft, Gatlinburg, Tennessee

LOGO

Wilderness Club at Big Cedar, Ridgedale, Missouri

 

LOGO

Shenandoah Crossing, Gordonsville, Virgina

 

 

15


LOGO

 

Typical Bluegreen Owner

 

    Average income: $75,000 - $80,000

 

    Age: 44-55

 

    Marital Status: Married

 

    Number of persons per vacation ownership trip: 2.8

 

    Number of nights per stay: 4.3

 

 

 

16


LOGO

 

Bluegreen Sales Centers

 

LOGO

 

17


LOGO

 

Experienced Direct Marketer

 

LOGO

 

2008 Marketing Mix

 

LOGO

2012 Marketing Mix

 

LOGO

 

 

18


LOGO

 

Selling and Marketing Expenses

 

LOGO

 

19


LOGO

 

Fee-Based Services

 

    We provide various timeshare services and product offerings for third-party property owners/developers, lenders and investors.

 

    Services are based on Bluegreen’s core competencies in:

 

    Sales & Marketing

 

    Property Management

 

    Risk Management

 

    Title & Escrow

 

    Design & Development

 

    Mortgage Servicing

 

    Allows third-party property owners/developers to benefit from the Bluegreen Vacation Club product and sales distribution platform.

 

    Two types of Sales & Marketing Arrangements:

 

    Commission-Based

 

    Just-in-Time

 

    Cash business, which requires little, if any, capital expenditure/debt by Bluegreen.

 

    Expands the offerings of the Bluegreen Vacation Club.

 

20


LOGO

 

Fee-Based Services-Sales

($ in millions)

 

LOGO

 

21


LOGO

 

Other Fee-Based Services

($ in millions)

 

LOGO

 

22


LOGO

 

Fee-Based Services-Profits

($ in millions)

 

LOGO

 

23


LOGO

 

Finance Business

 

  Provides seller-financing to FICO® score credit qualified Bluegreen timeshare customers to facilitate sales and earn net interest profits.

 

  In-house servicing of all Bluegreen receivables and certain fee-based service clients; centralized at our Boca Raton, FL headquarters.

 

  Bluegreen has been servicing loans for over 20 years. Our Mortgage management team has a combined 157 years of servicing experience, with an average tenure of 14 years with Bluegreen.

Resorts Notes Receivable Outstanding

($ in millions)

 

LOGO

 

 

24


LOGO

 

Finance Operations – Net Interest Spread

($ in millions)

 

LOGO

 

25


LOGO

 

Bluegreen Resorts

Credit Underwriting Standards

(FICO® Scores at time of Origination)

 

LOGO

 

26


LOGO

 

Bluegreen Resorts

FICO® Profile (a)

 

LOGO

 

(a) Percentage of portfolio outstanding at 12/31/10 originated in the 2008-2010 periods by FICO® strata (12/31/11 for 2011 originated loans and 12/31/12 for 2012 originated loans), excluding foreign obligors and other “No FICO®” loans in 2009 - 2012, which were less than 1.5% in 2009 and 2010, and 3% in 2011 and 2012. 2008 assumes strata for 10% of loans outstanding at 12/31/10, for which no FICO® score was obtained. Based on most recent FICO® score in Bluegreen’s files for each obligor.

 

27


LOGO

 

 

Interest Rates

 

VOI RATES & TERMS

  

  

NEW OBLIGORS with a FICO® SCORE of > 600    
EFFECTIVE 11/01/08   
           Int. Rate w/o        

Down Payment

   Int. Rate     Auto-Debit     Max Term  

10%

     16.99 %*      17.99 %      10 years   

20%

     15.99 %*      16.99 %      10 years   

10%

     15.99 %*      16.99 %      5/7 years   

50%

     9.99 %      9.99 %      1 year   

Original Portfolio Statistics

 

     2012 VOI Loans  

Weighted Average FICO® (Highest Obligor)

     711 (1) 

Weighted Average Interest Rate

     16.3
 

 

* In the event a borrower goes off of pre-authorized checking, the interest rate will increase by 1%.
(1) Loans without a FICO® score are removed. FICO® is at the time of sale. Excluding loans paid in full within 6 months from origination.

 

28


LOGO

 

Typical Collection Process - VOI

 

    10 Days – Telephone contact generally initiated on delinquent accounts when an account is as few as 10 days past due

 

    30 Days – Letter mailed advising the borrower (if a U.S. resident) that if the loan is not brought current, the delinquency will be reported to the credit reporting agencies (telephone contact continues)

 

    60 Days – “Lock-out” letter mailed, return receipt requested and regular mail, advising that the borrower cannot use any accommodations until the delinquency is cured (telephone contact continues)

 

    90 Days – “Notice of Intent to Cancel Membership” mailed, return receipt requested and regular mail, which informs the borrower that unless the delinquency is cured within 30 days, the borrower will forfeit ownership (telephone contact continues)

 

    Approximately 120 Days – Termination letter mailed, return receipt requested and regular mail, advising the borrower that the owner’s beneficial rights in the Bluegreen Vacation Club have been terminated

 

    The VOI is placed back into inventory for resale to a new purchaser

 

29


LOGO

 

VOI Portfolio Dynamics

 

    Unlike floating rate residential mortgage loans (many of which have “teaser” rates), the monthly payment for Bluegreen’s borrowers does not change over the life of the loan.*

 

    The average monthly payment (approximately $200) for Bluegreen’s borrowers is much less than a typical mortgage payment.

 

    Geographical diversity of obligors, few foreign obligors.

 

    Bluegreen’s VOI collections team has an average of 15 years of collections experience. Our collectors are incentivized through a performance-based compensation program.

 

    In addition, Bluegreen implemented FICO® score-based credit requirements on 12/15/08 and further raised such guidelines on 1/1/10.

 

  * In the event a borrower goes off of pre-authorized checking, the interest rate will increase by 1%.

 

30


LOGO

 

Bluegreen VOI Loan Payment Methods

As of December 2012

 

PAC/ACH/Automated

     89.6

Coupon Book

     10.4
  

 

 

 

Total

     100.0
  

 

 

 

 

  Each sale facility/securitization/hypothecation has a separate, dedicated lockbox.

 

  There is a daily automated, repetitive wire to the paying agent/lender for each sale facility/securitization/hypothecation.

 

  Banking Partners in current securitizations:

Lock Box – Bank of America

Paying Agent & Indenture Trustee – U.S. Bank

 

31


LOGO

 

Bluegreen VOI Delinquency Performance(1)

 

LOGO

 

(1) Excludes introductory products

Note: Loans are generally defaulted, and therefore no longer included in delinquency, after 120 days.

 

32


LOGO

 

Portfolio Performance(1)

VOI Delinquency Breakdown: As of June 30, 2013

 

     Percentage of     Percentage of outstanding  
     outstanding loans     principal balance over 30 days past due  

Originations Pre-12/15/08 (loans not credit scored at origination)

     45.4     3.18
  

 

 

   

 

 

 

Originations 12/15/08 – 6/30/2013 (loans must meet minimum FICO® requirement of 500 from 12/15/2008 – 12/31/2009; 575 thereafter)

     54.6     2.16
  

 

 

   

 

 

 

Total

     100     2.62
  

 

 

   

 

 

 

Non-Scored vs. Credit Scored VOI Defaults at 42 months

 

     Percentage defaulted

Loans originated 1/1/08 – 12/14/08

   21.84% (as of 6/30/11)

Loans originated 1/1/10 – 12/31/10

   11.68% (as of 6/30/13)

 

(1) Excludes introductory products

 

33


LOGO

 

Bluegreen’s Previous Receivables Purchase

Facilities and Term Securitizations

 

Purchase Facility/Term Securitization

   Note
Amount
 

1998 GE Purchase Facility

   $ 100.0 MM   

2000 GE Purchase Facility

   $ 90.0 MM   

2001-A ING Purchase Facility

   $ 125.0 MM   

2002-A Term Securitization

   $ 170.2 MM   

2004-A GE Purchase Facility

   $ 38.6 MM   

2004-B Term Securitization

   $ 156.6 MM   

2004-C BB&T Purchase Facility

   $ 140.0 MM   

2005-A Term Securitization

   $ 203.8 MM   

2006-A GE Purchase Facility

   $ 125.0 MM   

2006-B Term Securitization

   $ 139.2 MM   

2007-A Term Securitization

   $ 177.0 MM   

2008-A Term Securitization

   $ 60.0 MM   

BXG Legacy 2010 Securitization

   $ 27.0 MM   

2010-A Term Securitization

   $ 107.6 MM   

Quorum Federal Credit Union Purchase Facility

   $ 30.0 MM   

2012-A Term Securitization

   $ 100.0 MM   

2012 BB&T Purchase Facility

   $ 40.0 MM   
  

 

 

 

Total

   $  1.8 Billion   

There has never been a principal or interest payment delinquency or default under any of these facilities.

 

34


LOGO

 

Liquidity: Cash Flow Activities

($ in millions)

 

     2010     2011     2012     6 Mos 6/2012     6 Mos 6/2013  

Cash Flow provided by operating activities

   $ 164      $ 167      $ 168      $ 64      $ 42   

Cash Flow provided by (used in) investing activities

     (6     (4     22        25        (5

Cash Flow used in financing activities

     (156     (154     (117     (105     (77
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

   $ 2      $ 9      $ 73      $ (15   $ (40
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Ending unrestricted cash balance

   $ 72      $ 81      $ 154      $ 66      $ 114   

 

35


LOGO

 

Revolving Credit Facilities

($ in thousands)

June 30, 2013

 

          Revolving                              
          Advance Period             Facility      Amount      Amount  

Lender

  

Type

   Expiration      Maturity      Amount      Outstanding      Available  

BB&T

   Receivables Purchase Facility      12/17/2013         12/17/2016       $ 40,000       $ 25,314       $ 14,686 (A) 

Quorum

   Receivables Purchase Facility      3/31/2014         12/30/2030         30,000         19,624         10,376 (A) 

Liberty

  

Receivable Hypothecation Facility

     3/1/2015         3/1/2018         50,000         25,471         24,529   

CapitalSource

  

Receivable Hypothecation Facility

     9/20/2016         9/20/2019         40,000         20,883         19,117 (B) 

NBA

  

Receivable Hypothecation Facility

     10/10/2014         4/10/2020         30,000         17,673         12,327   
           

 

 

       

 

 

 
            $ 190,000          $ 81,035   
           

 

 

       

 

 

 

 

A. Non-recourse (except for representations and warranties)
B. Reflects July 2013 Amendment. Amount outstanding includes June 30th $2.9 million from an associated inventory loan with same lender.

 

36


LOGO

 

Contractual Debt Maturities

As of June 30, 2013

($ in millions)

 

     Less Than      1-3      4-5      After 5     Debt  
     1 Year      Years      Years      Years     Balance  

Receivable Backed Notes (Recourse)

   $ —         $ 5       $ 47       $ 20 (A)    $ 72   

Lines of Credit & Notes Payable

     7         24         17         41        89   

Jr Subordinated Debentures

     —           —           —           111        111   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Subtotal – Recourse Debt

     7         29         64         172        272   

Non- Recourse Receivable – Backed Notes

     —           5         25         310        340   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

   $ 7       $ 34       $ 89       $ 482      $ 612   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

(A) Net of Legacy Discount

 

37


LOGO

 

Balance Sheet

($ in thousands)

 

 

     June 30, 2013      December 31, 2012  
     (unaudited)         

Assets

     

Cash and cash equivalents, unrestricted

   $ 113,698       $ 153,662   

Cash and cash equivalents, restricted

     65,529         54,335   

Notes receivable, net

     467,871         480,865   

Inventory, net

     264,127         274,006   

Property and equipment, net

     70,201         68,975   

Prepaid Expenses and Other assets

     71,688         47,799   
  

 

 

    

 

 

 

Total assets

   $ 1,053,114       $ 1,079,642   
  

 

 

    

 

 

 

 

 

 

38


LOGO

 

Balance Sheet (cont.)

($ in thousands)

 

     June 30, 2013      December 31, 2012  
     (unaudited)         

Liabilities and Shareholders‘ Equity

     

Accounts payable & accrued liabilities

   $ 88,759       $ 81,970   

Deferred income

     30,229         27,679   

Deferred income taxes

     55,230         42,663   

Receivable—backed debt :

     

Non-recourse

     340,454         356,015   

Recourse

     72,721         89,640   

Lines-of-credit and notes payable

     88,699         21,551   

Junior subordinated debentures

     110,827         110,827   
  

 

 

    

 

 

 

Total liabilities

     786,919         730,345   

Non-controlling interest

     44,378         37,919   

Bluegreen shareholders’ equity (a)

     221,817         311,378   
  

 

 

    

 

 

 

Total shareholders’ equity

     266,195         349,297   
  

 

 

    

 

 

 

Total liabilities and shareholders’ equity

   $ 1,053,114       $ 1,079,642   
  

 

 

    

 

 

 

 

(a) Reflects payments to public shareholders of $89.2 million in connection with the Merger and payment of $20 million of dividends.

 

39


LOGO

 

Income Statements

($ in millions)

 

     Six Months Ended(a)      Year Ended  
     6/2013      6/2012      2012      2011  

Sales of VOIs(b)

   $ 119       $ 95       $ 208       $ 164   

Fee-based sales commission revenue

     46         38         88         74   

Other fee-based services revenue

     40         38         75         71   

Interest income and other

     42         44         87         95   
  

 

 

    

 

 

    

 

 

    

 

 

 
     247         215         458         404   

Cost of VOIs sold

     22         19         40         41   

Cost of other resort fee-based services

     25         25         46         52   

Selling, general and administrative expenses

     142         109         247         199   

Interest expense

     20         22         42         54   

Other expense, net

     —           —           —           —     
  

 

 

    

 

 

    

 

 

    

 

 

 
     208         175         375         347   
  

 

 

    

 

 

    

 

 

    

 

 

 

Pre-tax income from continuing operations

     38         39         83         57   

Provision for income taxes

     13         14         29         21   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income from continuing operations

   $ 26       $ 25       $ 54       $ 36   
  

 

 

    

 

 

    

 

 

    

 

 

 

 

 

(a) Unaudited
(b) Sales of Bluegreen’s inventory only, net of estimated uncollectible VOI notes receivable.

 

40


LOGO

 

Appendix A:

Non- GAAP Reconciliations

 

 

41


LOGO

 

Non-GAAP Measures

In addition to financial results determined in accordance with generally accepted accounting principles (“GAAP”), this presentation also contains financial information determined by methods other than in accordance with GAAP. The Company’s management uses these non-GAAP measures in their analysis of the Company’s performance. These non-GAAP measures are referred to in this presentation as “Adjusted EBITDA”, which the Company uses as a measure of financial performance, is defined as earnings before interest income (except interest income on notes receivable), interest expense (except interest expense on receivable-backed debt), provision for income taxes, depreciation, amortization, net income attributable to non-controlling interests, non-cash stock and other long-term compensation expense, loss on disposal of fixed assets, non-cash impairment charges, Bluegreen Communities’ Adjusted EBITDA and adjustments to loan loss allowance for pre-2009 originations (net of associated benefit to cost of sales).

The Company believes that these non-GAAP measures supplement its GAAP financial information and provide a useful measure of evaluating the Company’s operating results and any related trends that may be affecting the Company’s business. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

 

42


LOGO

 

Adjusted EBITDA

($ in millions)

 

     2010     2011     2012     6 Mos 6/2012     6 Mos 6/2013  

Net Income(Loss)

   $ (44.0   $ (17.3   $ 39.7      $ 18.9      $ 19.1   

Minority Interest

     8.1        7.7        11.1        4.8        6.5   

Non-cash stock and other long-term compensation expense

     2.6        4.4        10.1        2.2        8.0   

Non-cash impairment charges

     54.6        0.5        0.0        0.0        —     

Loss on assets held for sale

     —          62.0        1.2        0.2        0.1   

Plus: non-cash adjustment to pre-2009 loan loss provision

     69.7        13.0        7.3        3.4        0.1   

Less: benefit to cost of sales from loan loss adjustment

     (15.9     (3.2     (1.4     (0.7     —     

Less: Other Interest income (a)

     (0.0     (0.1     (0.0     (0.2     (0.2

Interest Expense

     65.8        56.9        42.9        23.8        19.7   

Less: Interest expense on Receivable-Backed Debt

     (43.4     (39.0     (32.6     (16.8     (13.9

Taxes

     (22.2     (3.8     27.6        12.1        12.7   

Depreciation and amortization

     9.4        7.9        7.2        3.6        3.4   

Add Back: Bluegreen Communities’ negative EBITDA (b)

     12.0        4.3        1.8        1.9        0.2   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA*

   $ 96.4      $ 93.3      $ 114.9      $ 53.1      $ 55.6   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(a) Excludes Interest Income from the Notes Receivable portfolio.
(b) For comparability, Communities EBITDA is adjusted for all years, including 2011 – 2012 when it was determined to be a discontinued operation.
* May not balance due to rounding.

 

43


LOGO

 

 

Appendix B:

Other Information

 

 

44


LOGO

 

Completed Merger with BFC

 

LOGO

 

    BFC’s Ownership History of Bluegreen

 

LOGO

 

    BFC is a diversified holding company

 

45


LOGO

 

Completed Merger with BFC

 

LOGO

 

46


LOGO

 

Unique Club Configuration

 

 

•    Bluegreen Vacation Club- ‘Trust’ architecture allows for the retention of voting rights once inventory is sold, perpetual management control, and allows for recovery of the underlying collateral for non-performing consumer loans or assessments without necessity of judicial process.

  

LOGO

 

1.     Promissory Note

2.     Deed To VOI

3.     Mortgage

4.     Owner Beneficiary Rights

 

47


LOGO

 

Realized Cash vs Receivables at

Point of Sale

(as a percentage of sales)

 

LOGO

 

(1) Includes both 100% cash sales and down payments.

 

48


LOGO

 

Sales to Existing Owner Base

(As a % of system-wide sales)

 

LOGO

 

49


LOGO

 

How Bluegreen VOI Buyers Finance Their Purchase

 

Purchase Price of a Typical Vacation Ownership Interest:

   $ 13,200      100%  

Cash Down Payment:

   ($ 1,320   (10%)  
  

 

 

   

 

 

Amount Financed:

   $ 11,880      90%  

Terms of Typical Financing:

      

Term / Amortization:

     10 years       

Fixed Interest Rate:

     16.99    

Monthly Payment:

   $ 206    

Approx. Annual Maintenance Fee/ Club Dues:

   $ 809       

Annual Cost During Financing Period:

   $ 3,286   (4.1% of Income**)

Annual Cost After Financing Period:

   $ 809      (1.0% of Income**)

 

* Dollar amount rounded to the nearest whole dollar.
** Note: Based on average household income of $80,000 for timeshare buyers.

 

50


LOGO

 

2008 Strategic Initiatives

Transformative changes since 2008 to improve operating model…

 

    Substantially reduced timeshare sales operations to align with known receivable financing capacity, projected cash sales and marketing efficiencies.

 

    Employing “capital light” business model that is generating excess cash from multiple streams:

 

    Traditional timeshare sales operations generate significant cash sales and currently has historically low capital requirements

 

    Fee-based Services Business:

 

    Fee-Based services sales & marketing commissions

 

    Property management, title, mortgage servicing & other Fee-Based services

 

    Finance business income

 

    Reduced overhead, improving debt profile, minimizing capital spending, increasing marketing efficiencies.

 

    Established FICO® score – based credit underwriting program in December 2008.

 

    Completed sale of non-core real estate business (Bluegreen Communities) in May 2012.

 

51


LOGO

 

Impact of 2008 Strategic Initiatives

Faced with the credit crisis in the fall of 2008, with reduced levels of timeshare receivable financing in general, and a freeze in the securitization markets in particular, Bluegreen quickly and efficiently navigated through the crisis by implementing numerous strategic initiatives in a 60 day period. Certain updated results of these original 2008 initiatives include:

 

    Generated operating/investing cash flow of approximately $162 million in 2012.(a)

 

    Increased cash realized within 30 days of sale from 24% of sales in 2008 to 53% in 2012.

 

    The “capital-light” fee-based service business model generated $57 million in pre-tax profits in 2012.

 

    Lines-of-credit and notes payable declined 90% to $22 million as of December 31, 2012 from $222.7 million as of December 31, 2008.

 

    Capital expenditures decreased from $188 million in 2008 to $18 million in 2012.

 

    Successfully extended over $200 million in debt obligations in 2009 and 2010, with no defaults.

 

    Associate headcount went from 6,396 as of 9/30/08 to 3,236 as of 1/31/09; as of 12/31/12 headcount was 4,387 (such increase was primarily due to fee-based service volume).

 

    Revolving receivable credit facilities of $190 million with availability of $81 million as of June 30, 2013.(b)

 

    Unrestricted cash and equivalents of $113.7 million as of June 30, 2013.

 

    Improved delinquency and default performance in FICO® score-based credit underwritten portfolio.

 

    Recent transactions in credit and securitization markets (including Merger financing of $75 million).

 

    Sales to Bluegreen Vacation Club owners represented 58% of total Resort sales in 2012, indicating a high level of customer satisfaction and providing a low cost marketing channel.

 

(a) Excludes $27.8 million of gross proceeds from sale of Bluegreen Communities
(b) Including July 2013 facility renewal.

 

52