Bluegreen Revenues way down

[MULTIZ321]

Bluegreen Corp Revenues way down - "The company said it will cut inventory spending from $215 million in the 12 months ended Sept. 30 to a projected $45 million in 2009. Bluegreen said it is also restricting underwriting for timeshare loans, and raising interest rates."

A perusal of other recent Tug posts - e.g, Marriott not exercising ROFR; HCC implodes and may not survive; 1900 eBay Timeshare-for-sale adds - up from about 1200; RHC imposes a special assessment to cover projected shortfall in operating expenses; Marriott Vacation Club fiscal year revenues markedly lower;
various posts asking about lower than traditional resort selling prices - indicate what we all know. Not only is our economy in a recession but the timeshare and destination club industry has been severely impacted.


Richard

 

[BocaBum99]

Your headline is inaccurate. Bluegreen Vacation Club revenue is UP year over year. It actually rose by 10% year over year to $154M for the quarter.

What Bluegreen anticipates is a dramatic reduction in sales next year mostly because they must target customers with a better credit profile in order to be able to sell the loans they give to their customers for making purchases.

What you quoted is the amount of inventory acquisition that Bluegreen will have year over year. When they say that they will decrease inventory spending from $215M down to $45M. That means that they have already sufficient inventory to make their revenue plan throughout 2009 and beyond due to the anticipated slow down in the market and the need to target only higher credit customers.

Here is the full Press Release: Bluegreen 3rd Quarter Financial Results

What the release tells me is:

1) Bluegreen has a good plan for making it through 2009 and this incredibly tough economic environment. I would give them a better chance of success than other timeshare companies with weaker balance sheets. And, they do not need any additional credit facilities to make the current plan.

2) The DRI deal is probably dead since Bluegreen doesn't need to sell out to continue operations. And, it doesn't seem likely that DRI can get financing for a strategic deal in this environment.

3) Bluegreen will probably stop all expansion activities since it is dramatically reducing inventory spending. No more new resorts for a while. I would expect enhancements to Select Connections instead.

4) Bluegreen recently laid off about 800 employees in anticpation of the slowdown this coming year. Very prudent cash management.

I'd say that Bluegreen is in much better condition than say the auto manufacturers.

 

[Bill4728]

Since this post is about BG and not about buying or selling, I'm moving it to the other TS board.

 

[MULTIZ321]

Your headline is inaccurate.

Boca,

Thanks for the clarification and updated analysis.

I obviously made inaccurate assumptions based on limited info.

Bill - thanks for moving to the appropriate board.

Based on Boca's updated info, I would say that Bluegreen Corp management has made prudent decisions for these tough economic times.

Richard

 

[dukebigtom]

What other timeshare board are you refering to?

Thanks,

BigTom

 

[MULTIZ321]

What other timeshare board are you refering to?

Thanks,

BigTom

BigTom,

I originally posted my comments and link in the Tug "Travel Info" Forum.
Bill felt the post was more appropriate in the Tug "All Other Timeshare Systems" Forum (aka a Timeshare board).

Richard

 

[Steve A]

Bluegreen to layoff 110 Wisconsin workers, 25 in Sun Prairie

Bluegreen to layoff 110 Wisconsin workers, 25 in Sun Prairie

The Capital Times [Madison, Wisconsin] — 11/25/2008 6:54 pm

Financially troubled Bluegreen Corp. has announced it will close its facilities in Sun Prairie and Wisconsin Dells and drastically reduce its sales office at Christmas Mountain.

Bluegreen, a timeshare resort company based in Boca Raton, Fla., has announced it will close several sales offices around the country but did not say how many employees would be affected nationwide.

In a letter to the Wisconsin Department of Workforce Development, Bluegreen said it will close its Sun Prairie office on Windsor Street and lay off the 25 workers there; close its office on Wisconsin Dells Parkway in the Dells and lay off 16 workers there; and "substantially reduce" its sales facility operations on Christmas Mountain Road outside of the Dells, laying off 69 workers there.

All the layoffs are to take place on Jan. 20, the company said.

The company told the South Florida Business Journal earlier this week that it was going to focus on generating income from its resort management and finance divisions.

Income for the third quarter as reported by the company on Nov. 10 was down $6.8 million, or 51 percent from the $13.9 million for the same quarter last year.

The Wisconsin Department of Workforce Development said it will send a Rapid Response Team to assist displaced workers at the three locations.

 

[MULTIZ321]

Bluegreen announces more layoffs

Bluegreen Corp. laying off 122 people at its Boca Raton Headquarters - from the South Florida Sun-Sentinel


Richard