Bluegreen Vacations Holding Corporation (BVH) Tops Q1 EPS by 14c, Revenues Miss

Bluegreen Vacations Holding Corporation (NYSE: BVH) reported Q1 EPS of $0.15, $0.14 better than the analyst estimate of $0.01. Revenue for the quarter came in at $146.4 million versus the consensus estimate of $152.71 million.

Key Consolidated BVH Highlights as of and during the Quarter Ending March 31, 2021:
(Since the above-mentioned merger did not occur until May 5, 2021, the following financial results only reflects BVH’s ownership interest of an approximate 93% of Bluegreen.)

• Net income from continuing operations of $5.5 million.
• Earnings Per Share (“EPS”) from continuing operations of $0.15.
• Total revenue of $146.4 million.
• Bluegreen’s System-wide sales of vacation ownership interests (“VOIs”) of $107.0 million.
• Adjusted EBITDA from continuing operations attributable to shareholders of $12.8 million.
• Consolidated unrestricted cash of $199.2 million.
• Total consolidated assets of $1.2 billion.
• Total BVH shareholders’ equity of $190.9 million.
• Fully diluted book value per share of $9.88. (1)

(1) Fully diluted book value per share is BVH shareholders’ equity divided by the total number of shares of BVH’s Class A Common Stock and Class B Common Stock outstanding as of March 31, 2021.

“As we previously announced, the proposed short-form merger with Bluegreen Vacations Corporation was consummated on May 5, 2021. As a result of that merger, we believe BVH is now essentially a ‘pure play’ company in the timeshare space,” commented Alan B. Levan, Chairman and Chief Executive Officer of Bluegreen Vacations Holding Corporation. “We believe that the merger will end confusion in the market as the Company will now report on 100% of Bluegreen’s results and will address the inefficiencies of having two public companies reporting on the same business.”

“We are encouraged by the overall improvements in the timeshare and leisure travel sectors during the first quarter of 2021. The vaccination rollouts and what we believe is greater optimism about the future appear to have had a positive impact on consumers and vacation travel. However, while we are mindful of the fact that the potential impact of the pandemic continues to be an issue, Bluegreen is continuing to focus on positioning the Company for growth and providing its owners with a safe and well-deserved vacation experience.”

“With that said, we are pleased with the performance and results delivered by Bluegreen during what appears to be the initial stage of the economic recovery. We are continuing to move forward with our previously announced ‘Bluegreen Renewal’ initiative, a company-wide effort to revitalize sales and revenue growth, combined with our expanding marketing alliances. Under the leadership of the consolidated sales organization, we sold 49,000 vacation packages in the first quarter of 2021, compared to 43,000 in the first quarter of 2020.

“We are also pleased with the expansion of our marketing activity into Cabela’s retail stores, where we opened seven new marketing kiosks during the first quarter of 2021. As of March 31, 2021, the total number of marketing kiosks at Bass Pro Shops and Cabela’s stores had increased to 105, up from 98 at December 31, 2020 and 89 at March 31, 2020. We believe we are on track to achieve our previously stated goal of having at least a combined 120 Bass Pro and Cabela’s marketing kiosks by year-end 2021.

“With regards to travel, we are encouraged by the enthusiasm of our owners to travel to our resorts. All of our resorts are open, and the overall average occupancy rates were approximately 70% at resorts with sales centers during the first quarter of 2021. The demand for resort stays from Bluegreen Vacation Club Owners has steadily improved and we believe our core strategy of primarily offering a ‘drive-to’ network of resorts has facilitated occupancy during the pandemic reopening. We are optimistic that this model will continue to serve as a growth driver.

“While unscientific, pent up demand, optimistic consumer sentiment, and additional positive market trends appear to be the controlling drivers of a broad wave through the recovery roll-out. We believe these market fundamentals benefit Bluegreen greatly and we are optimistic of productive improvements in VOI sales and vacation package sales going forward. In closing, we are continuing to focus on our ‘Bluegreen Renewal’ initiative, our pro-recovery efforts, and expanding our marketing alliances. We believe that this focus, combined with market and consumer sentiments, will continue to grow and drive sales and revenue growth to pre-pandemic levels and beyond as the economy and markets migrate upwards towards pre-COVID levels.” Levan concluded.

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

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