Bluegreen Corp (BXG)
Q1 2008 Earnings Call
May 9, 2008 8:30 am ET
Devin Sullivan - Senior Vice President of The Equity Group Inc.
John M. Maloney, Jr. - President and Chief Executive Officer
Anthony M. Puleo - Senior Vice President and Chief Financial Officer
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Our speakers on this pre-recorded call will be John Maloney, President and Chief Executive Officer of Bluegreen and Tony Puleo - Senior Vice President and Chief Financial Officer.
Before we get started I would like to remind everyone that statements made during today’s call may constitute forward-looking statements and are made pursuant to the Safe Harbor Provision of the Private Securities and 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, competitive and other factors affecting the company and its operations, markets, products and services as well as the risk that growth and profitability will not occur as anticipated.
The company may be unable to sell notes receivable on satisfactory terms if at all, adversely impacting the company’s liquidity and profitability; the performance of the company’s vacation ownership notes receivables may deteriorate in the future; the company may not be in a position to draw down on its existing credit lines or may be unable to renew or replace such lines of credit; real estate inventories, notes receivable, retained interest in notes receivable, sold or other assets will be determined to be impaired in the future; risks relating to pending our future litigation, claims and assessments; that the company will not be able to acquire land or identify new projects as anticipated; sales and marketing strategies relating to new resorts and communities properties will not be as successful as anticipated, new resort communities properties will not open when expected and will cost more to develop or may not be as successful as anticipated; the relationship with Cedar Fair Theme Parks will not be put in place or be as successful as anticipated; retail prices and home site yields for Communities properties will be below the Company's estimates; cost of sales will not be as expected; sales to existing owners will not continue at current levels; deferred sales will not be recognized to the extent or at the time anticipated; and the risks and other factors detailed in the Company's SEC filings, including its most recent Annual Report on Form 10-K filed on March 3, 2008.
In addition matters discussed during this call contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended and involve substantial risks and uncertainties, including but not limited to the risk that because of business, economic or market conditions Bluegreen may decide not to pursue an offering of its securities or that the offering may not be made in the amounts contemplated, if at all.
In addition to the risks and uncertainties identified above, reference is also made to other risks and uncertainties detailed in reports filed by Bluegreen with the Securities and Exchange Commission. The Company cautions that the foregoing factors are not exclusive.
Any discussion regarding an offering of Bluegreen Securities shall not constitute an offer to sell or the solicitation of an offer to buy any securities. Securities may not be sold, nor may offers to buy be accepted prior to the effectiveness of a registration statement, nor shall there be any sale of the securities in any state in which such offer, solicitation, or sale would be unlawful prior to the registration or qualification under the Securities laws of any states.
I would now like to turn the call over to John Maloney, President, and Chief Executive Officer of Bluegreen Corporation.
Thank you, Devin. Good morning and thank you for joining us today.
We are taking a different approach to our post release communication practices. Because our conference call participation has been modest, we have decided to try this new format, which has been expanded to attempt to provide you with additional information as part of our prepared remarks.
If you have additional questions or concerns, please feel free to contact Tony or me and we will attempt to answer any questions you may have within, of course, the confined so Reg FD. Now let’s discuss our results for the first quarter 2008.
Bluegreen Resorts posted its 26th consecutive quarter of comparable quarterly sales growth, while sales at Bluegreen Communities remain slow. Both Bluegreen Resorts and Bluegreen Communities operated profitably during the first quarter, generating field-operating profit of $5.8 million and $30.9 million respectively; however field operating profit at each of these segments declined over the comparable prior year period.
Lower profits at Bluegreen Communities reflect the ongoing difficult residential real estate environment. We are continuing our efforts to identify and implement additional strategies that we hope will enhance sales and generate profitable returns.
Communities’ field operating profit of 19% is, we believe, a reflection of our disciplined approach to this business and indicative of how we hope to weather the current economic environment. We have not acquired any new properties for Bluegreen Communities in 2008. Although we regularly consider potential acquisitions, we are monitoring the current challenging real estate environment and there is no assurance that any transactions will be consummated.