Bluegreen Vacations Reports Fourth Quarter, Full Year 2022 Financial Results

WHY IT RATES: The company reported record sales performance throughout 2022.—Patrick Clarke, TravelPulse Senior Editor

Bluegreen Vacations Holding Corporation (NYSE: BVH) (OTCQX: BVHBB) (the “Company” or “Bluegreen”) reported today its financial results for the quarter and year ended December 31, 2022.

Key Highlights as of and for the Quarter Ended December 31, 2022:

—Net income attributable to shareholders from continuing operations decreased 37{6932ee47e64f4ce8eedbbd5224581f6531cba18a35225771c06e4f1b3f0d9667} to $7.6 million from $12.2 million in the prior year’s quarter. Excluding the charge relating to the exiting of certain marketing locations, net income attributable to shareholders from continuing operations decreased by 5{6932ee47e64f4ce8eedbbd5224581f6531cba18a35225771c06e4f1b3f0d9667} to $11.6 million during the fourth quarter of 2022.

—Diluted Earnings Per Share (“EPS”) from continuing operations decreased 30{6932ee47e64f4ce8eedbbd5224581f6531cba18a35225771c06e4f1b3f0d9667} to $0.41 from $0.59 in the prior year quarter. Excluding the charge relating to exiting of certain marketing locations, diluted EPS from continuing operations increased 5{6932ee47e64f4ce8eedbbd5224581f6531cba18a35225771c06e4f1b3f0d9667} to $0.61 during the fourth quarter of 2022.

—Total revenue increased 17{6932ee47e64f4ce8eedbbd5224581f6531cba18a35225771c06e4f1b3f0d9667} to $238.0 million from $203.0 million in the prior year quarter.

—System-wide sales of vacation ownership interests (“VOIs”) increased 12{6932ee47e64f4ce8eedbbd5224581f6531cba18a35225771c06e4f1b3f0d9667} to $186.5 million from $166.6 million in the prior year quarter.(1)

—Number of guest tours increased 1{6932ee47e64f4ce8eedbbd5224581f6531cba18a35225771c06e4f1b3f0d9667} to 58,632 from 57,796 in the prior year quarter.

—Vacation packages sold were 46,002 compared to 53,721 in the prior year quarter, a decrease we believe reflected the continued effects of a challenging labor market which affected staffing levels and resulted in increased turnover.

—Vacation packages outstanding of 165,240 as of December 31, 2022 compared to 187,244 outstanding as of December 31, 2021.

—Resort operations and club management segment Adjusted EBITDA increased 2{6932ee47e64f4ce8eedbbd5224581f6531cba18a35225771c06e4f1b3f0d9667} to $20.4 million from $20.0 million in the prior year quarter.

—Adjusted EBITDA attributable to shareholders increased 4{6932ee47e64f4ce8eedbbd5224581f6531cba18a35225771c06e4f1b3f0d9667} to $32.2 million from $31.0 million in the prior year quarter. (2)

—The Company completed a cash tender offer pursuant to which it purchased and retired 3,040,882 shares of its Class A Common Stock at a purchase price of $25.00 per share for an aggregate purchase price of $76.0 million.

Key Highlights for the Year Ended December 31, 2022:

—Net income attributable to shareholders from continuing operations increased 11{6932ee47e64f4ce8eedbbd5224581f6531cba18a35225771c06e4f1b3f0d9667} to $64.4 million from $57.8 million in the prior year period. Excluding the fourth quarter 2022 charge relating to exiting of certain marketing locations, net income attributable to shareholders from continuing operations increased 19{6932ee47e64f4ce8eedbbd5224581f6531cba18a35225771c06e4f1b3f0d9667} to $69.4 million during 2022.

—Diluted EPS from continuing operations increased 16{6932ee47e64f4ce8eedbbd5224581f6531cba18a35225771c06e4f1b3f0d9667} to $3.24 from $2.79 in the prior year. Excluding the fourth quarter 2022 charge relating to exiting of certain marketing locations, diluted EPS from continuing operations increased 25{6932ee47e64f4ce8eedbbd5224581f6531cba18a35225771c06e4f1b3f0d9667} to $3.47 during 2022.

—Total revenue increased 21{6932ee47e64f4ce8eedbbd5224581f6531cba18a35225771c06e4f1b3f0d9667} to $919.4 million from $757.1 million in the prior year.

—System-wide sales of VOIs increased 20{6932ee47e64f4ce8eedbbd5224581f6531cba18a35225771c06e4f1b3f0d9667} to $743.4 million from $617.6 million in the prior year. (1)

—Number of guest tours increased 14{6932ee47e64f4ce8eedbbd5224581f6531cba18a35225771c06e4f1b3f0d9667} to 243,448 from 213,599 in the prior year.

—Vacation packages sold were 168,982 compared to 211,364 in the prior year.

—Resort operations and club management segment adjusted EBITDA increased 6{6932ee47e64f4ce8eedbbd5224581f6531cba18a35225771c06e4f1b3f0d9667} to $83.8 million from $78.9 million in the prior year.

—Adjusted EBITDA attributable to shareholders increased 15{6932ee47e64f4ce8eedbbd5224581f6531cba18a35225771c06e4f1b3f0d9667} to $139.8 million from $122.0 million in the prior year.

—Free cash flow was an outflow of $28.0 million compared to an inflow of $63.4 million in 2021, primarily as a result of our $78.0 million acquisition of our newest resort, Bayside Resort & Spa in Panama City Beach, Florida.

Alan B. Levan, Chairman and Chief Executive Officer of Bluegreen Vacations Holding Corporation, commented, “We believe our record sales performance throughout 2022 is evidence that the appeal of the Bluegreen Vacation Club to our target customer base is stronger than ever. In the fourth quarter of 2022, our sales team generated a fourth-quarter record $186.5 million of system-wide sales of VOIs, which was a 12{6932ee47e64f4ce8eedbbd5224581f6531cba18a35225771c06e4f1b3f0d9667} increase over the prior year quarter. The increase reflected both an increase in our sales efficiency, as demonstrated by the 7{6932ee47e64f4ce8eedbbd5224581f6531cba18a35225771c06e4f1b3f0d9667} increase in our sales volume per guest, and a 1{6932ee47e64f4ce8eedbbd5224581f6531cba18a35225771c06e4f1b3f0d9667} increase in guest tours over the prior year quarter.”

“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 fourth quarter of 2022, we sold 46,002 vacation packages, a decrease from the 53,721 we sold in the fourth quarter of 2021, a decrease we believe reflected the continued effects of a challenging labor market which affected staffing levels and resulted in increased turnover and consequently impacted package sales at our marketing kiosks. The decrease is also reflecting lower traffic in the retail locations where we operate.”

“As we begin 2023, one of our objectives is to increase the efficiency of our marketing spend and to accomplish this, we will seek to increase our VOI sales and also lower our new customer acquisition cost. In connection with this objective, in December 2022 we vacated certain marketing locations that were difficult to staff and/or were under-performing. As a result, we incurred a charge of $6.6 million, which we add back to Adjusted EBITDA.”

“Overall, the demand for vacations by Bluegreen Vacation Club owners has been and remains strong and we believe our core strategy of primarily offering a ‘drive-to’ network of resorts will continue to serve as a growth driver.”

“However, we cannot predict the future impact of general economic conditions, including higher interest rates, inflationary trends, and labor availability, on our operations. From a balance sheet perspective, we believe that we are well positioned to help navigate various economic conditions with approximately $175.7 million of unrestricted cash on hand and $430.5 million of conditional availability under our lines of credit and receivable purchase facilities as of December 31, 2022. We also believe we have a level of protection from rising interest rates as 42{6932ee47e64f4ce8eedbbd5224581f6531cba18a35225771c06e4f1b3f0d9667} of our outstanding debt is at fixed interest rates. As always, we are focused on growth and profitability over the long term, while at the same time delivering memorable vacation experiences to our owners,” Mr. Levan concluded.

SOURCE: Bluegreen Vacations press release.