BOCA RATON, Fla., November 3, 2019 – Shares of BBX Capital Corporation (NYSE: BBX) showed the bullish trend with a higher momentum of 3.13% to $4.61. The company traded total volume of 170.423K shares as contrast to its average volume of 161.16K shares. The company has a market value of $448.46M and about 97.28M shares outstanding.
For the three months ended June 30, 2019, BBX Capital Corporation (NYSE: BBX) reported total revenue of $195.60M, compared to $194.90M in the prior year period, primarily due to increases in resort operations and club management revenue and interest income, and a decrease in the provision for loan loss, partially offset by a decrease in VOI sales. Adjusted EBITDA was $28.70M in the second quarter of 2019 compared to $41.90M in the second quarter of 2018, primarily due to lower VOI sales and higher cost of VOI sales and net carrying cost of inventory, partially offset by a lower provision for loan losses and higher profit on resort operations and club management operations.
During the second quarter of 2019, system-wide sales of VOIs were $163.60M, compared to $172.00M in the second quarter of 2018. The year over year change in sales was primarily driven by a lower sale-to-tour conversion ratio, which resulted in a lower average sales volume per guest (“VPG”), in part due to disruptions at sales offices related to the Bass Pro matter, which has subsequently been resolved as described under Bass Pro Settlement below. Package sales volumes in the second quarter of 2019 increased approximately 7% compared to the second quarter of 2018 following an 8% increase in the first quarter, and these increases are expected to result in increased guest tours over the next six to 18 months. However, the growth in package sales occurred in channels that are typically not as efficient as Bass Pro, in which the Company experienced a decrease in package sales during the quarter due to the period of time we were denied access to the Bass Pro stores.
Fee-based sales commission revenue was $55.30M in the second quarter of 2019, compared to $60.10M in the second quarter of 2018. The period over period change reflected lower sales of third-party VOI inventory, due to lower system-wide sales as described above, as well as an average fee-based sales commission of 66% during the second quarter of 2019 as compared to 67% during the comparable prior year period.
Net carrying cost of inventory increased $3.60M in the second quarter of 2019 compared to the second quarter of 2018, primarily due to the carrying cost associated with the Éilan Hotel and Spa, which was acquired in April 2018 and increased maintenance fees and developer subsidies associated with the increase in VOI inventory as well as decreased net operating profits from the Company’s sampler program.
Balance Sheet and Liquidity
As of June 30, 2019, unrestricted cash and cash equivalents totaled $180.20M. Bluegreen had availability of approximately $150.60M under its receivable-backed purchase and credit facilities and corporate credit line as of June 30, 2019, subject to eligible collateral and the terms of the facilities, as applicable. Excluding receivable-backed notes payable, the Company’s net debt-to-EBITDA ratio as of June 30, 2019 was .23.
Free cash flow, which the Company defines as cash flow from operating activities, less capital expenditures, was $2. 90M for the six months ended June 30, 2019, compared to $8.10M for the six months ended June 30, 2018. The decrease in free cash flow was primarily attributable to the $20.00M payment to Bass Pro in June 2019, partially offset by decreased spending on the acquisition and development of inventory in the 2019 period.
The Company offered net profit margin of 0.90% while its gross profit margin was 62.80%. ROE was recorded as 1.30% while beta factor was 1.83. The stock, as of recent close, has shown the weekly upbeat performance of 3.60% which was maintained at -19.55% in this year.