Recent BXG transcripts
Associated BXG filings
Evelyn Infurna | Investor Relations |
Shawn Pearson | Chief Executive Officer |
Tony Puleo | Chief Financial Officer |
Good afternoon, everyone. Thank you for joining us today to review Bluegreen Vacations’ Third Quarter 2018 Financial and Operating Results. Today’s business update will be presented by Bluegreen Vacation’s Chief Executive Officer, Shawn Pearson, and Chief Financial Officer, Tony Puleo. I would like to remind listeners that this pre-recorded business update may contain forward-looking statements based largely on current expectations of Bluegreen Vacations that involve a number of risks and uncertainties. All opinions, forecasts, projections, future plans or other statements, other than statements of historical fact, are forward-looking statements. assurance expectations no be prove give correct. can that will such to We or materially are, are could expressed, results, based control. uncertainties achievements Actual performance, to subject differ instances, number risks by change beyond forward-looking that company’s are a factors or these from many statements to and which subject on of and in implied contemplated, those the long-term without ability plans, uncertainties include, limitation, and and to generate implement and with company’s risks value. Risks the shareholder anticipated successfully currently earnings growth, increase associated
XX-K XX, filed expected Additional view on website, Report and in detailed XX, the to or risks Bluegreen which Vacations’ www.sec.gov, and Quarterly for to uncertainties Form SEC's on ended are Annual on for described Bluegreen be Report September the on www.bluegreenvacations.com. and Vacations’ XXXX, filed its website, is on X, available November December XXXX, ended year XX-Q, about XXXX and the quarter Form
on which provided also forward-looking a have cautions available of on speaks reliance place statement, We Listeners the slide which any Bluegreen only supplementary deck should made. Vacations undue as not is our date earnings website. any any that do not disclaim Shawn? Officer. and the exclusive, update turn obligation, over I’ll statement. we to Pearson, factors or specifically and foregoing Chief Executive now undertake, are supplement it forward-looking Shawn not to
sales ERP upgraded step a completed an Éilan our point in initiatives Thank in system, a sales which into first the third an to was support agreement of Texas to designed on and a company’s our acquired inventory you, portion the Club, had growth. Antonio, at focused accounting center Spa opened and of & Hotel Bluegreen entered ongoing project. exclusive recently Evelyn. inventory quarter the The of acquire modernization sale and long-term critical installation We San busy at Manhattan
traditional efforts. devised digital marketing and in tandem our we our to our We In on with programs marketing also have new testing continued particular, programs. focus have actively
Specifically, which book marketing website the activity phone. to with for we our was capability guests available previously by package able have an performed to stays, only enhanced their be
completed centers portion of Additionally, have the the resulted weeks. four receivable-backed impacted a This upwards of and subsequent liquidity. term, million in attribute as notes, ability We position been with and many Hurricane growth affected sales long the guest of Florence, of to steps two end, in closure market of priced sales term. our to strong $XXX sales line not VOI that our impact quarter and our securitization Bluegreen an forward Despite for sales which the of resorts in create marketing of the lower storm attractively reflective were owner we centers for short well ongoing the expectations gains demand of our timeshare cancellations in to in nine in to Club disruption path hurricane. the our the the
to that We did and are sustain nor guests, grateful our properties. any colleagues harmed, were damage meaningful physical not owners our we
estimated an System-Wide did and by quarter. reduce the Sales our $X.X by estimated adjusted million $X.X However, million the an EBITDA in hurricane third
in will the in Hurricanes in to estimated to and $X.X range also million of Michael sales million of Florence million that anticipate EBITDA. million impact loss opportunities, quarter $X.X We the fourth given be $X.X to and $X.X results our sales
temporary the by to of results a Cost believed decision accommodate the increased this reflecting and guests. help Our VOIs first in new phases enhanced our to operations subsequent the and of and ERP phase VOIs. which Unfortunately, quarter this purchase necessary efficiencies system, that of first the will third the impacted that reduction this was implementation provide new secondary a the system of believe owners during Sold, is was we of market ERP were our We service complete. improve also phase of now
Turning were in them new XXXX market for provide Marlins’ the the XXXX vacation customers unique vacation on seasons alliance creative the promote focus Bluegreen being The Miami ownership certain provider. fans. and an benefits provides in-stadium continue to the to reach to named partnership Marlins’ as launched to Marlins opportunity and which our opportunity In as the August, for ways initiatives, games home during to Marlins’ we official with with we signage, a a marketing we Bluegreen ownership directly well to owner.
capabilities, to a alliances, Florida Marlins desire when opportunity compared more the South larger, of community. our opportunity focused the combined marketing to is this support national our our While with nature our demonstrates dynamic
have to Pro important also we comes marketing Bass to taken Group. our created complement alliances. alliances newly of leadership L’Oréal added to successful Al new to productive our the already Business and Vice the We roles be Brands at Al identify cultivate in to with L marketing sole and Choice Shops Hotels. identify and an welcome Al’s Montalvo of Al October, establish efforts We new, previously steps Development. team our from position President in us International Bluegreen. focus alliances to marketing and will In
retiring high the performance, has leadership his these coordination of relationships, known strong on management our is service and veteran more years. a a nimbleness industry mark Bluegreen past of area service the Dave management and Dave’s from all improving left benefited like to December unique would topic taken I senior moment our of a to its over Bluegreen reporting Operating We’ve with relationships maintain XXXX. our who recognize eleven and Dave internally indelible streamlined and for that in to while experience he Pontius, product the take announced team. has restructure the team, areas. and and opportunity impeccable Officer our levels effective to is Chief an his is Dave On company
let’s to value Choice. marketing alliance Now We highly our strategic move with our programs.
prospects. similar Our resulting have in Choice quality to our demographic characteristics target high customers to members, Privileges access sales
experimenting and direct customers Privileges and with Choice. transfer we programs Choice Choice’s Loyalty with members market are digital call our predominately While to various through marketing we also program,
million to example, Choice team to planning is reach up expanded For working Bluegreen an will members. marketing our in XX Choice event Monday Privileges cyber Loyalty allow with that
results of been to learning in that early our creative ongoing future. growth is develop with we While can have and drive promising, and Choice the are goal our programs still experiments
Regarding our marketing XX-year venture to alliance power we Missouri Bass development our closely the work joint with with and long-running, Pro strategic operations on Shops, our Pro resort the alliance. in Bass leverage of existing continue of to day-to-day arrangements
and continued despite channel have marketing historical with Bass joint Our our Pro disclosed disputes. venture previously
channel, working that still quarter able a we ongoing that resolution. have earnings. growth been Cabela’s time With Bass to respect so any unable we our in relationship While believe will remain access an active by we’ve the to to delaying of share date, we update We do with we’ve hopeful be this disappointed locations thus to been the to we that report future. we dialogue and maintain will an the with fourth Pro, towards are you anticipated
and over that three which Wilderness has Club As that We to at sales in centers our space base additional marketing an one marketing center sales is have introduce time, grow sales adding expanded XX,XXX been have center, sales and Big to sales in addition under XX are sales. office square Bluegreen and those currently the at to Cedar in it’s construction. adequate important feet our actively generate guests which additional we already Vacation of with This XX,XXX the VOI programs Club new centers completed. currently feet square space to
growth the we’ll of We next amount, least August. Included opened foot in at have is sales occurs, three years, Éilan so to meet & the square have portion space in which XX,XXX San our as this to office space it. this sales the Hotel a targeted Texas, expansion at support needs for the Spa Antonio, in
Orleans. In to next we square the our the office, Marquee sales at of open in the remainder addition foot to office expect new, sales X,XXX Éilan New
of space also considering for are an potential feet additional sales expansion. square XX,XXX We
me Let industry-wide our addressing the issue. on and briefly cease comment desist progress
targeting We proactive can predatory obligations continue firms claiming they towards encourage owners’ that owner a delinquencies by owner and eliminate take and VOI defaults. to law stance
de timeshare who who the Multiple Legal representation now us XXX more termination notices also Osa, progress, firms of to la related Officer, experience, the making new contracts. in third-party industry already focused joined June on have and than Our is issue. as filed is substantial exit with timeshare vacation owner entire Chief Jorge industry are Compliance club
the by announced In of Tennessee, declared the of of another higher law that volume was firms firms Supreme the involved founder bankruptcy. disbarred recently it one of was addition, the these activities and Court in
to ways that other various can members try the our on we working directly. needs now of address also are We
by of the frivolous date We results strategy addressing these continue our are to aggressively and fighting intend encouraged claims industry-wide problem. this to with
ownership thoughts. few discuss to like has call the XXXX with been to since I’d the a in Bluegreen you over Puleo turn to XXXX. I business was Before in vacation financial and leave results, founded Tony
our We XX have as established model and significant Club which successfully light an investment. generates platform business capital grown Resorts, Club owners, include without XXX,XXX revenues to Associate capital as approximately attractive well
disruptions During past through and and this experience. Regardless of presented the cycles, stronger having addressed growing for also numerous smarter storm has and issues and time, business Bluegreen economic have gone in the pains. we come challenge, navigated the through
term on to sales these the we sales our slightly XXXX. positioning marketing moderate Bluegreen execute term, will time and and keenly are focused throughout take results and long in but We building some growth, for including near channels, efforts anticipate sustainable growth
technology increased cost infrastructure have information and with to other that a this in growth begun quarter support expenditures, continue years to operating investments time for for we expenses implementation. but we commitments place the to that Additionally, temporarily the believe will implement this and and enhanced capital put come of will come,
impact long our While vacation growth that had and coupled over to prior quarter VOI be sales strategy we third unique expected ownership shareholders and our negative experiences marketing outlook, destinations confident for our near our term. remain owners and below the Tony? weather on will compelling with for value our the high-quality produce disruptions is term a
Shawn. in share the million, you, in and improvement for modest sales the recognized attributable shareholders We Bluegreen a and management XXXX. X.X% for VOI third segment Net $XX.X as or well EBITDA associated September income revenue improvement resort per as XX, three system-wide X.X% improvement to of margin. revenues $X.XX or compared in was Adjusted $X.XX total months Thank million, quarter share, $XX.X per to ended
the Act tax was X, income due have higher for of million which the for been which $XX.X believe sold, third VOIs provision mentioned, by quarter, further to prior curtailed Cuts which and VOI EBITDA was system of was X.X%, XXXX, due on Shawn in purchases to that financial financing Jobs into XXXX. we to interest would compared disruptions million benefit also as the quarter estimate We period last our to These what primarily went as impact the $XX.X contraction largely believe of effect the that non-controlling from quarter installation cost roughly continue of disruptive weather Florence. a for compared the EBITDA of by to the well and offset January before margin the in third $X.X million from was temporary the favorable Tax was as comparable increases $XX.X sales Hurricane decrease Income XXXX. suspension which impact sales. VOIs adjusted comparisons the to segment, of VOI million were year our to impacted million. due We market year third and Adjusted growth accommodate to storms of $XX.X to we from for secondary
costs due corporate law million we frivolous. to overhead increased strategy partially suits a quarter, are our result rather that as the compared of than defend, prior legal settle, $X.X addition, In ongoing our believe higher to to year
respect to segment to incurred public continue the depreciation information higher increased to relations and near third related quarter We the investments, addition overhead for higher in will related costs believe company our in being XXXX. the and $XXX.X With reflects in per sales-to-tour to improvement known a results in sales increased In decline technology legal $XXX.X transaction, and from our a company. knows costs, in system-wide offset public as higher by of term quarter, sales driven in costs investor the these and The conversion as from which volume higher XX.X% the ratio VOIs year APT, a modest increase the higher guest, sales XX.X% was by APT million average X.X% million. per X.X% to X.X% VPG, prior. a to
to you cancellations. shared experienced indirect trip third Florence earlier, on impact guest also sales tours. X.X% as centers due VOIs And closures in Hurricane sales we of in direct system-wide a our with a We and of the quarter had decline and
sales to volume execute almost plan sales net see our growth has XXXX, marketing realize versus center over improvements our to of further the benefits space productivity quarter unlock of volumes to continue of add in third fee-based add the Choice VOIs, XX% expanded anticipated hope our marketing the As trend been XXXX. to marketing several as quarter expansion, on higher to sales and since increases on alliances behalf the to years. at all clients sales potential relationship, are We due XX% represented to offices. our we new higher existing Sales system-wide the begin of additional Cabela’s in our of our accommodate sales next from
from to We are our of experienced financed mix resulted a score offset segment, With relating weighted-average in in year. compared periods. provision originations, of higher new for XX% new sales increase XX% to compression basis regard operating the on the the XX% by on for needed period the third XXXX. September XXXX in loan our profit track quarter compared an targeted to increase to was consumer three loan for our were XXXX partially XXXX. XX% XXXX, percentage to to in provision XX% of to to losses by in Cost the the our for of net loss and FICO an in to of impact Sold XX% increase additional quarter being we in prior over Sales financing reach of primarily X% margin increase third due of owner VOIs XX% an of from reserves approximately the points This the sales, year’s in the XX, goal of XX% in sales ended prior of and impact loan and The customers in VOIs XXX of months system-wide to our growth year. past the
to our now Turning rates. default
in rates slightly while For XX-months September XXXX, the X.X%, same from up X.X% by average fell annual points period. in XX rates ended the XX, were XXXX, delinquency default basis
and we obligations, and owners that to their these Given in our are become increases attorneys default VOI targeting default the dynamic more encouraged seeing we are not of rates. are delinquent seeing advising and owners on we dramatic delinquency
still near we Cost market the in months it compared inventory show primarily approximate believe, to for in XXXX. loan will Sold stance and acquisition XX, early increase cost levels our to our of initiatives through default and is provision expect product this and the more The due VOIs September While promise. other we losses term aggressive But, current in of less sales secondary as three of ended was comparatively VOI higher period XXXX. the
with market As our purchases connection in we comparatively temporarily existing so XXXX, VOIs of market suspended as an Sold purchases Shawn discussed, were secondary conversion. secondary this in September We resorts, computer our system immediate had Cost margin. acquire the adverse an on inventory realize to in impact of reduction benefit
from of purchase each of October. mix XX% range through in recommenced market our VOIs estimate our to have in depending XXXX quarter. to product on We secondary VOI’s Cost We XX%, Sold
as should from we rental the costs utilize $X.X the inventory increased of VOI our our inventory. cost bring acquired decrease home of & cost XXXX. carrying and income we net that unsold quarter we to third the This over receive which inventory, increase in is by pay net net developer of due will inventory and we programs million fees we This VOI of sell $X.X This the subsidies and the was which sampler resort Éilan associations online, XXXX. Spa, such the owners’ increase expense of on April addition, to for VOI In Hotel primarily time. maintenance million to inventory additional then carrying as
fourth XXXX. will in our realignment increased XXXX, brought Fountains was As costs and increased due quarter, be net of Florida; and the a on in XX% result segment, in profit in higher XXXX of additional in a of marketing XX to believe line of units in percentage to from Resort XXXX we to an being In sales a by Orlando, partially The XXXX. expected quarter a be inventory XX.X%. in sales lower our resort offset management XX% than higher carrying to in decline our VOI corporate including as as well and operating selling system-wide of additional result our cost of XX.X% as at existing costs revenue XXXX fixed XXXX. profit the owners operations as initiative lower club to compared our decrease as our the quarter percentage the operating This was inventories
XX-months, our to managed We XX. bringing have management added last the contract resorts one over new total
this driven by total XX.X% the of revenue to streams: in capital-light in compared XXXX third a can There and Capital-light XXXX. the is more business as Our of XX.X% was model traditional third dual revenue. revenue percentage quarter quarter revenue capital flexibility. our basis increased by flexibility a quarter-by-quarter balanced in light on We maximizes revenues. as strategy as believe to XXX revenue points well XX% our variability percentage total year-to-date, basis, be operating but capital of has
sheet to balance and the with equivalents. take On stability, conditions a opportunities to allowing time. provides XXXX sheet great advantage activities, of September company of turning XX, adapt we Bluegreen while of flexibility market cash our our the capital Now over balance and unrestricted deal changing held and markets over cash million $XXX to business
less trailing than Our recourse EBITDA debt to one-to-one. of net XX-months was
As timeshare for extended under $XX its credit an had receivable Bank million of purchase years. the Pacific of August, facilities. renewed third with In three Bluegreen our additional advance hypothecation facility million of $XXX.X and million the and $XXX period and receivables maturity availability quarter, revolving we of Western
of the all purposes. offering making date. were XX a with spread XX gross the subject for for of it securitization the one at risk loan million points conditions rate of we rate pay basis oversubscribed the an end, backed Note securitization facilities just a price lower rate a advance average corporate weighted over to on demand debt of were the and us of most reflecting of used used and basis to quarter and we XX%. fixed on to by Subsequent The the of proceeds in points $XXX.X to well-priced balance the risk down spread of to the rate, balances vacation to able XX be facility. an X.XX% receivables-backed completed points, certain interest the applicable notes terms course company’s general interest swap to our In of will allowed addition, X.XX%, the basis securitizations facility
on As we cost dividend and work capital. per of October, our cash share Directors stock, November commitment our our to and XX, $X.XX down In are front. XXXX, declared move that we Board on debt XX, to shareholders. a growth will in to on October In improving common forward, to working XXXX with avenues of augment sales all sources return shareholders drive capital keeping we closing, continuously our on payment of of capital payable record focused are of
phase our for and the our first center ready plans the conversion space to ERP growth for it confident several have than marketing next growth handle We more that sales adequate completed of our for years. is as platform with are occurs,
levels growth us and us lower you sales that although previously joining earnings anticipated, we healthy same-store operating today. are are are over the than catalysts time. metrics growing Thank help and right achieve for Our that improved at and optimistic on working we will
We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.