Bluegreen Corp. Reports Operating Results (10-Q)

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May 17, 2010
Bluegreen Corp. (BXG, Financial) filed Quarterly Report for the period ended 2010-03-31.

Bluegreen Corp. has a market cap of $177.72 million; its shares were traded at around $5.46 with a P/E ratio of 20.22 and P/S ratio of 0.49. Bluegreen Corp. had an annual average earning growth of 29.8% over the past 10 years.

Highlight of Business Operations:

The Wachovia Notes Payable. As of March 31, 2010, we had approximately $21.9 million of outstanding debt to Wachovia Bank, N.A. (“Wachovia”) under various notes payable collateralized by certain of our timeshare resorts or sales offices (the “Wachovia Notes Payable”). During the first quarter of 2010, we made a required principal payment of $2.6 million related to the various Wachovia Note Payable loans. In April 2010, we executed an agreement with Wells Fargo Bank, N.A, the parent Company of Wachovia (“Wells Fargo”), to refinance the remaining $21.9 million outstanding under the Wachovia Notes Payable into a new term loan. See Wells Fargo Term Loan below for further details.

The Wachovia Line-of-Credit. As of March 31, 2010, we had an unsecured line-of-credit with Wachovia. Amounts borrowed under the line bear interest at 30-day LIBOR plus 1.75% (2.00% at March 31, 2010). Interest is due monthly. During the first quarter of 2010, we repaid $1.2 million on this line-of-credit. In April 2010, the remaining $14.5 million was refinanced by Wells Fargo Bank, N.A. See Wells Fargo Term Loan below for further details.

The Wells Fargo Term Loan. On April 30, 2010, we entered into a definitive agreement with Wells Fargo, which amended, restated and consolidated our notes payable to Wachovia and the line-of-credit issued by Wachovia into a single term loan with Wells Fargo (the “Wells Fargo Term Loan”). As described above, the notes payable and line of credit which were consolidated into the Wells Fargo Term Loan had a total outstanding balance of $36.4 million as of April 30, 2010. In connection with the closing of the Wells Fargo Term Loan, we made a principal payment of $0.4 million, reducing the balance to $36.0 million, and paid accrued interest on the existing Wachovia debt. The Wells Fargo Term Loan is scheduled to mature on April 30, 2012 and bears interest at 30-day LIBOR + 6.87%. Principal payments will be effected through agreed-upon release prices as real estate collateralizing the Wells Fargo Term Loan is sold, subject to minimum required amortization of $5.2 million in 2010, $10.6 million in 2011 and $20.2 million in 2012. In addition to the resort projects previously pledged as collateral for the various notes payable to Wachovia, we pledged additional timeshare interests, resorts real estate, and the residual interests in certain of our sold VOI notes receivables as collateral for the Wells Fargo Term Loan. Wells Fargo has the right to receive as additional collateral, the residual interest in one future transaction which creates such a retained interest. The Wells Fargo term loan contains certain financial and non-financial covenants that we believe are typical to these types of transactions.

Liberty Bank Facility. During the first quarter of 2010, we pledged $8.3 million of VOI notes receivable to this facility and received cash proceeds of $7.5 million. We also made repayments of $4.7 million on the facility during the first quarter of 2010. In April 2010, we transferred $1.2 million of VOI notes receivable to Liberty and received cash proceeds of $1.1 million.

Total stock-based compensation expense for non-employee directors and employees during the three months ended March 31, 2009 and 2010 was $1.2 million and $1.1 million, respectively. The following table sets forth certain information related to our unrecognized compensation for our stock-based awards as of March 31, 2010:

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