Bluegreen Tallies Double-Digit Gains Across the Board

Total sales jumped 20.7% to $104 million this first quarter versus $86.2 million in the same quarter a year ago, "reflecting higher sales at both the resorts and communities business segments," says George F. Donovan, president and CEO. The overall first-quarter financials, he says, "reflect same-resort growth at many of our timeshare properties, a solid performance from our new off-site resort sales offices and continued profitability at our communities business."

Net income for the quarter was $6.5 million, a 37.4% increase over $4.7 million in the same quarter the previous year. Total operating revenues hit $130 million, up 21.4% versus $107.1 million in first-quarter 2004. The increase was due to higher total sales of real estate, a 33.1% rise in other resort and community operations revenue, and a 30.3% rise in interest income.

Resort cost of sales declined slightly to 20.1% of sales, down from 20.4% in the same period a year ago. The lower cost of sales in this first quarter, Donovan says, "is due primarily to the additional construction of units and consequently increased sales of vacation ownership interest in the Fountains Resort [in Orlando], which has a relatively low associated product cost." He says resort cost of sales has more typically ranged from 23% to 25% and the company expects it will be at that level in the future.

Meanwhile, Bluegreen is continuing to develop and acquire new resort properties. It acquired 80 acres in Gatlinburg, TN where it intends to construct a minimum of 250 timeshare units, plus amenities. This tract is adjacent to its MountainLoft Resort. It also acquired a four-acre tract adjacent to it Harbour Lights Resort in Myrtle Beach SC, where it has begun construction of a three-story, 12-unit timeshare building, scheduled for completion in 2006. This parcel can accommodate additional units.