Bluegreen Vacations Corporation (BXG) Misses Q4 EPS by 4c, Offers Outlook

Bluegreen Vacations Corporation (NYSE: BXG) reported Q4 EPS of $0.14, $0.04 worse than the analyst estimate of $0.18. Revenue for the quarter came in at $183.9 million versus the consensus estimate of $181.96 million.

Outlook

The Company anticipates that 2020 will be a period of rebuilding with the goal of positioning the Company for future growth. The challenges of 2019 included the Bass Pro dispute and its impact on the Company’s operations as well as the cost of investments in the Company’s sales and marketing infrastructure. While the Company will continue to be flexible moving forward, the Company currently anticipates that it will reduce the percentage of its system-wide sales devoted to selling fee-based service inventory to approximately 35% to 40% of system-wide sales, with a view to improving EBITDA growth. The Company believes it has access to adequate inventory for its near term sales requirements and expects to continue to operate in a favorable interest rate environment. The Company also anticipates continued compression in its operating margins, primarily as a result of i) increases in the cost of VOIs sold (although it expects costs of VOIs sold to return to a more normalized range of between 10% to 15% in 2020), ii) the net carrying cost of inventory and iii) the marketing costs associated with the anticipated growth in vacation package sales. While there is a risk that public health issues, such as the recent coronavirus outbreak, may impact leisure travel or otherwise adversely impact our operating results or financial condition, to date we have not experienced significant cancellations at our resorts but continue to monitor the situation and cancellation activity closely . See Forward Looking Statements below.

For earnings history and earnings-related data on Bluegreen Vacations Corporation (BXG) click here.

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