Bluegreen Vacations Reports Financial Results for Third Quarter 2022

Bluegreen Vacations Holding Corporation (NYSE: BVH) (OTCQX: BVHBB) (the “Company” or “Bluegreen”) reported today its financial results for the quarter ended September 30, 2022.

Key Highlights as of and for the Quarter Ended September 30, 2022:

• Net income attributable to shareholders decreased 1% to $23.0 million from $23.1 million in the prior year quarter.
• Diluted Earnings Per Share (“EPS”) increased 12% to $1.19 from $1.06 in the prior year quarter.
• Total revenue increased 17% to $250.8 million from $214.5 million in the prior year quarter.
• System-wide sales of vacation ownership interests (“VOIs”) increased 15% to $206.9 million from $180.6 million in the prior year quarter.⁽¹⁾
• Number of guest tours increased 11% to 69,490 from 62,449 in the prior year quarter.
• Vacation packages sold were 40,595 compared to 52,013 in the prior year quarter.
• Vacation packages outstanding of 169,950 as of September 30, 2022, compared to 174,496 outstanding as of September 30, 2021.
• Resort operations and club management segment adjusted EBITDA increased 1% to $21.9 million from $21.6 million in the prior year quarter.
• Adjusted EBITDA attributable to shareholders decreased 2% to $41.9 million from $42.6 million in the prior year quarter. ⁽²⁾

Key Highlights for the Nine Months Ended September 30, 2022:

• Net income attributable to shareholders increased 24% to $56.7 million from $45.6 million in the prior year period.
• Diluted EPS increased 27% to $2.81 from $2.21 in the prior year period.
• Total revenue increased 23% to $681.5 million from $554.1 million in the prior year period.
• System-wide sales of VOIs increased 24% to $556.9 million from $451.1 million in the prior year period.⁽¹⁾
• Number of guest tours increased 19% to 184,816 from 155,803 in the prior year period.
• Vacation packages sold were 122,980 compared to 157,639 in the prior year period.
• Resort operations and club management segment adjusted EBITDA increased 8% to $63.4 million from $58.9 million in the prior year period.
• Adjusted EBITDA attributable to shareholders increased 18% to $107.6 million from $91.1 million in the prior year period. ⁽²⁾
• Free cash flow decreased 21% to $59.3 million from $74.6 million in the prior year period. ⁽³⁾

In addition to the above highlights for the quarter and nine months ended September 30, 2022, the Company renewed and expanded a VOI receivable-backed notes purchase facility to $250.0 million in September 2022.

(1)		See appendix for reconciliation of system-wide sales of VOIs to gross sales of VOIs for each respective period.
(2)		See appendix for reconciliation of Adjusted EBITDA attributable to shareholders to net income attributable to shareholders for each respective period.
(3)		See appendix for reconciliation of free cash flow to net cash provided by operating activities

Alan B. Levan, Chairman and Chief Executive Officer of Bluegreen Vacations Holding Corporation, commented, “We are very excited that our top-line VOI revenue growth produced the highest quarterly sales of VOIs in Bluegreen’s history. This record $206.9 million of system-wide sales of VOIs was a 15% increase over the prior year quarter. The increase reflected that our marketing team produced more guest tours, an increase of 11% over the prior year quarter, and the achievement of a 3% increase in sales volume per guest. This increase in sales efficiency was achieved despite maintaining what we believe to be an industry-leading percentage of sales to new customers, which represented 48% of sales in the third quarter of 2022 and 51% in the third quarter of 2021.”

“Our sales of VOIs are driven by the success of our marketing programs, and Bluegreen’s marketing to new customers generally begins with the sale of a vacation package to a prospect. During the third quarter of 2022, we sold 40,595 vacation packages compared to 52,013 in the third quarter of 2021. We believe that the decrease reflected the continued effects of a challenging labor market which affected staffing levels and resulted in increased turnover which consequently impacted package sales at our marketing kiosks. The decrease may also reflect the impact of inflation on consumer sentiment and on consumer traffic in the retail locations where we operate, as well as the impact of certain changes to our package program. As we previously announced, we are making investments in our sales and marketing team and their supporting infrastructure and many of these costs are expensed currently. While these expenses and the costs inherent in growing a vacation package pipeline to support future sales growth impact our profitability, we expect these investments to provide benefits in the future.”

“Overall, the demand for vacations by Bluegreen Vacation Club owners has been strong and we believe our core strategy of primarily offering a ‘drive-to’ network of resorts will continue to serve as a growth driver. During, the third quarter of 2022, we experienced an overall occupancy rate of approximately 85% at resorts with sales centers.”

“We intend to continue pursuing the acquisition and development of additional resort inventory in destinations frequently requested by our owners and in destinations strategic to the expansion of our sales and marketing operations. In that regard, we recently took steps to add three new exciting resorts to the Bluegreen Vacation Club. In July 2022, we acquired two resort buildings comprising 46 units in Vail, Colorado, further expanding our footprint in the West. We hope to have this new location available for use by our owners in 2023. In October 2022, we acquired a resort in Panama City Beach, Florida. This high-demand location is expected to be converted into 200 VOI units, including our popular presidential suites, and a new sales preview center. We are also commencing construction of a new resort in Pigeon Forge, Tennessee. Planned to open in 2024, it is expected that the new resort will feature 67 guest accommodations, including three-bedroom presidential suites with upgraded in-room amenities. The project will also include an expansive sales preview center. These new resorts are in addition to previously announced construction activities at our existing resorts in Big Bear, California and Orlando, Florida. As you can see, we have been busy making investments in additional new resort locations for the enjoyment of our 219,000 Bluegreen Vacation Club owners as well as the future expansion of our sales infrastructure. While we expect these investments to adversely impact free cash flow in the near term, we believe that these investments will ultimately benefit our results of operations and cash flows in the future.”

“We cannot predict the future impact of general economic conditions, including higher interest rates and inflationary trends, the continuation of the COVID-19 pandemic, a possible recession, and labor availability, on our operations. However, we will continue our focus on navigating these challenges, and pursuing long term growth and profitability while at the same time improving our customers’ vacation experiences,” Mr. Levan concluded.

Full report – on businesswire.com: https://www.businesswire.com/news/home/20221103005135/en/