Woodbridge Holdings Corporation Reports Financial Results for the Second Quarter, 2008
SOURCE:
Woodbridge Holdings Corporation
2008-08-12 18:12:00
Woodbridge Holdings Corporation Reports Financial Results for the Second Quarter, 2008
Announces Plans for Reverse Stock Split
FORT LAUDERDALE, FL–(EMWNews – August 12, 2008) – Woodbridge Holdings Corporation (
the period ended June 30, 2008. Net loss for the second quarter of 2008
was ($8.9) million, or ($0.09) per diluted share, compared with a net loss
of ($58.1) million, or ($2.87) per diluted share, in the second quarter of
2007. Year-to-date, Woodbridge reported a net loss of ($19.4) million, or
($0.20) per diluted share, compared to a net loss of ($57.1) million, or
($2.82) per diluted share, for the comparable six month period ended June
30, 2007. Included in the net loss for 2007 is the results of Levitt and
Sons, which have been deconsolidated from the financial statements of
Woodbridge Holdings Corporation for the three and six month periods ended
June 30, 2008.
Woodbridge Holdings’ Chairman and Chief Executive Officer, Alan B. Levan,
commented, “We continue to make progress on the transition to a new
strategic direction which we anticipate will allow Woodbridge to utilize
its cash, assets and expertise to capitalize on opportunities inside and
outside the real estate industry.
“In line with this new strategic direction, Woodbridge’s Board of Directors
recently approved a 1-for-5 reverse split of Woodbridge’s Common Stock. We
believe that a reverse stock split is in the best interest of our current
shareholders because we expect it will allow our stock to be more
attractive to a broader range of institutional and other investors, and
will assist us in maintaining compliance with the NYSE’s price criteria for
continued listing. The reverse stock split will not have any impact on a
shareholder’s proportionate equity interest or voting rights in the
Company.
“The following is an update on our current operations:
Core Communities
“Core Communities (‘Core’), our subsidiary engaged in the development of
master-planned communities, is continuing its development of its
master-planned community, ‘Tradition, Florida,’ in Port St. Lucie, Florida
and its master-planned community, ‘Tradition Hilton Head’ near Hardeeville,
South Carolina. For the second quarter of 2008, Core reported a net loss
before discontinued operations of ($3.5) million versus net loss of ($0.5)
million during the comparable 2007 period. Lease revenues of our shopping
centers at Tradition, Florida are not included in these numbers as these
properties, as discussed below, are carried in discontinued operations.
“Core Communities’ third party backlog at June 30, 2008 consisted of
contracts for the sale of 326 acres with a sales value of $96.2 million,
compared with contracts for the sale of 98 acres with a sales value of
$29.0 million at June 30, 2007. Total selling, general and administrative
(SG&A) expenses at Core Communities increased to $4.8 million during the
second quarter of 2008 from $3.5 million for the comparable 2007 period.
This increase reflects administrative expenses related to compensation and
benefits, increased expenses associated with our support of the community
and commercial associations in our master-planned communities, increased
fees for professional services and higher property tax expense.
Tradition, Florida
“Tradition, Florida encompasses more than 8,200 total acres, including
approximately 3,900 remaining net saleable acres, a planned 4.5-mile long
employment corridor along I-95, educational and health care facilities,
commercial properties, residential developments and other mixed-use
parcels.
“A recent study by Money Magazine ranked St. Lucie County number six on the
list of counties nationwide with the greatest job growth between 2000 and
2007. St. Lucie County experienced a 50 percent growth rate during that
period. Further, according to the U.S. Census Bureau, the city of Port St.
Lucie was ranked number seven among the fastest-growing cities in the
nation between July 2006 and July 2007. Port St. Lucie increased its
population by 70 percent between 2000 and 2007, according to a recent
article in the Port St. Lucie Times.
“In addition to the continued marketing of land parcels to users and third
party developers, Core is actively marketing and soliciting bids from
several potential buyers to purchase its income producing commercial assets
in Florida, including the Landing at Tradition and Tradition Square. Since
these shopping centers are held as ‘available for sale’, accounting rules
require that the lease revenues, expenses, and the assets and liabilities
related to these properties be treated as discontinued operations in our
financial statements. Income from discontinued operations, which reflects
the results of Landing at Tradition and Tradition Square, was $1.0 million
in the second quarter of 2008 versus $108,000 in the second quarter of
2007, reflecting the operations of these commercial leasing projects.
“During the quarter, Core Communities secured a purchase option from Tanger
Outlet Centers for a 30-acre parcel just north of The Landing, Tradition’s
600,000-square-foot retail power center, for the development of a
350,000-square-foot retail outlet mall. Tradition Square, the 23-acre,
135,000-square-foot retail/office development that serves as the Tradition
Town Center, was awarded a 2008 Merit Award in the commercial category by
the Florida Chapter of the American Society of Landscape Architects. The
award, presented to Core Communities and Canin Associates, the project’s
landscape architect, recognizes the Square’s unique pedestrian environment
and role in the community.
Tradition Hilton Head
“Tradition Hilton Head encompasses approximately 5,400 total acres,
including approximately 2,800 remaining net saleable acres, and is
currently entitled for up to 9,500 residential units and 1.5 million square
feet of commercial space.
“We continue to seek to use cost effective marketing strategies to create
awareness for Tradition Hilton Head. In that regard, Tradition National
Golf Course was selected as the site of the first-ever College Golf
Combine, an effort by UNDER ARMOUR®, the International Junior Golf Tour
and the Hank Haney International Junior Golf Academy on Hilton Head Island
to bring exposure to junior golfers seeking college opportunities. Two
combines were held in late July/early August uniting junior golfers and
college golf coaches from around the country. Additionally, Tradition
Hilton Head was selected as the location of HGTV’s first ‘green’ home and
was featured prominently in the national HGTV Green Home Giveaway 2008(SM)
special that aired on March 23, 2008. During the television special,
viewers entered a contest to win a ‘green’ home package valued at $850,000.
The winner was announced during the second quarter of 2008. During the
Green Home promotion, more than 10,000 people visited Tradition Hilton Head
for tours, raising $94,000 for United Way of the Lowcountry.
Bluegreen Corporation
“Bluegreen Corporation recently announced that it has signed a non-binding
letter of intent for the acquisition of Bluegreen by Diamond Resorts
International (‘Diamond Resorts’) at a price of $15.00 per share, valuing
the transaction at approximately $500 million exclusive of Bluegreen’s
outstanding debt. The acquisition is subject to the completion of due
diligence and the execution of definitive agreements. Diamond Resorts,
based in Las Vegas, Nevada, is one of the largest vacation ownership
companies in the world with 110 branded and affiliated resorts in 14
countries with destinations throughout the continental United States and
Hawaii, Canada, Mexico, the Caribbean and Europe, more than 360,000 owners
and members and more than 5,500 associates worldwide. We own approximately
9.5 million shares of Bluegreen’s outstanding common stock, and have
indicated our support of the transaction at the terms stated in the letter
of intent.
“For the second quarter of 2008, Bluegreen Corporation reported net income
of $3.4 million, or $0.11 per diluted share, versus $4.1 million, or $0.13
per diluted share, in the comparable period of 2007. As of June 30, 2008,
the book value of Bluegreen’s common stock was $12.46 per share.
“Woodbridge’s equity in the earnings of Bluegreen Corporation was $1.2
million for the second quarter of 2008, versus $1.4 million in the
corresponding 2007 period.
Levitt and Sons
“On June 27, 2008, Woodbridge entered into a settlement agreement (the
“Settlement Agreement”) with the Debtors and the Joint Committee of
Unsecured Creditors appointed in the Chapter 11 Cases associated with the
Levitt and Sons bankruptcy. Pursuant to the Settlement Agreement, among
other things, (i) Woodbridge has agreed to pay to the Debtors’ bankruptcy
estates the sum of $12.5 million plus accrued interest from May 22, 2008
through the date of payment, (ii) Woodbridge has agreed to waive and
release substantially all of the claims it has against the Debtors,
including its administrative expense claims through July 2008, and
(iii) the Debtors (joined by the Joint Committee of Unsecured Creditors)
have agreed to waive and release any claims they may have against
Woodbridge and its affiliates. The Settlement Agreement is subject to a
number of conditions, including the approval of the Bankruptcy Court. There
is no assurance that the Settlement Agreement will be approved or the
transactions contemplated by it completed.
“In connection with the filing of the Chapter 11 Cases, Woodbridge
deconsolidated Levitt and Sons as of November 9, 2007. As a result of the
deconsolidation, Woodbridge had a negative basis in its investment in
Levitt and Sons because Levitt and Sons generated significant losses and
intercompany liabilities in excess of its asset balances. This negative
investment, “Loss in excess of investment in subsidiary,” is reflected as a
single amount on the Company’s consolidated statements of financial
condition as a $55.2 million liability as of June 30, 2008 and December 31,
2007. This balance was comprised of a negative investment in Levitt and
Sons of $123.0 million, and outstanding advances due to Woodbridge from
Levitt and Sons of $67.8 million. Included in the negative investment was
approximately $15.8 million associated with deferred revenue related to
intra-segment sales between Levitt and Sons and Core Communities. Upon
such approval, if any, Woodbridge will make payments in accordance with the
terms and conditions of the Settlement Agreement, recognize the cost of
settlement and reverse the related liability into income for a net positive
result of approximately $43 million.
Other Operations
“SG&A expense for the second quarter of 2008 increased to $7.7 million from
$6.9 million during the same 2007 period. The increase was mainly
attributable to severance related charges due to the reductions in force
associated with the bankruptcy filing of Levitt and Sons, increased
professional fees associated with our interest and position taken in
connection with our investment in equity securities and increased insurance
expenses due to the absorption of certain of Levitt and Sons’ insurance
costs. These increases were partially offset by decreased compensation,
benefits and incentives expenses and decreased office related expenses.
“Subsequent to the end of the quarter, Woodbridge filed its 2007 tax return
and anticipates receiving a refund of approximately $27 million.
Woodbridge Holdings Corporation
“During the second quarter, Woodbridge announced that John K. Grelle was
appointed Chief Financial Officer and principal accounting officer of the
Company. Mr. Grelle replaced Patrick M. Worsham, who had served as Acting
Chief Financial Officer of the Company since January 2008. Mr. Grelle will
also serve as Chief Financial Officer of BFC Financial Corporation, the
Company’s controlling shareholder.”
Woodbridge Holdings Corporation Selected Financial Data (Consolidated)
-- Total cash and cash equivalents: $125.3 million
-- Total assets: $673.7 million
-- Debt (excluding discontinued operations): $257.9 million
-- Shareholders' equity: $240.9 million
-- Shares outstanding: 96.4 million
-- Book value per share: $2.50
Second Quarter, 2008 Compared to Second Quarter, 2007
-- Total revenues of $3.2 million versus $127.1 million
-- Net (loss) of ($8.9) million versus ($58.1) million
-- Diluted (loss) per share of ($0.09) vs. ($2.87)
-- Weighted average shares outstanding of 96.4 million versus 20.2
million
Year-to-Date, 2008 Compared to Year-To-Date, 2007
-- Total revenues of $4.1 million versus. $270.3 million
-- Net loss of ($19.4) million versus ($57.1) million
-- Diluted (loss) per share of ($0.20) versus ($2.82)
-- Weighted average shares outstanding of 96.4 million versus 20.2
million
Woodbridge’s second quarter 2008 financial results press release and
financial tables will be available on its website:
www.WoodbridgeHoldings.com. To view the press release and financial
tables, access the “Investor Relations” section and click on the “News
Releases” navigation link.
New York Stock Exchange Notification Letter
On August 11, 2008, Woodbridge was notified by the NYSE that it had fallen
below the continued listing standard relating to minimum share price.
Woodbridge intends to provide notification to the NYSE of its intent to
seek to cure the deficiency and the steps it will take to attempt to do so,
including the reverse stock split described in this press release. Under
the New York Stock Exchange’s rules and regulations, Woodbridge’s Class A
Common Stock will continue to be listed on the NYSE during the six month
cure period, subject to compliance with the other continued listing
requirements. Although Woodbridge hopes that it will be able to comply with
the NYSE’s requirements for continued listing, there is no assurance that
it will be able to do so.
About Woodbridge Holdings Corporation
Woodbridge Holdings Corporation, directly and through its wholly owned
subsidiaries seeks to invest opportunistically within and outside the real
estate industry. Historically, the Company’s operations were primarily
within the real estate industry, however, the Company’s current business
strategy includes the pursuit of opportunistic investments and acquisitions
within or outside of the real estate industry, as well as the continued
development of master-planned communities. Under this business strategy,
the Company may not generate a constant earnings stream and the composition
of the Company’s revenues may vary widely due to factors inherent in a
particular investment, including the maturity of the business, market
conditions and cyclicality. Net investment gains and other income that may
occur are to be driven by the Company’s strategic initiatives as well as
overall market conditions.
Core Communities, a wholly owned subsidiary, develops master-planned
total-living community environments throughout the Southeastern United
States, including its original and best known, St. Lucie West. The
company’s
8,200-acre Tradition™ Florida community is home to more than 1,700
families, vibrant commercial areas and a 4.5-mile-long employment corridor.
The community is also home to the Florida Center for Innovation at
Tradition (FCI) Research Park, in which The Torrey Pines Institute for
Molecular Studies, Mann Research Center, Martin Memorial Health Systems and
Oregon Health & Science University’s Vaccine and Gene Therapy Institute
have all announced plans to locate. Core is also expanding its
Tradition™ brand with Tradition™ Hilton Head, an approximate
5,400-acre community planned to include 9,500 residences and 1.5 million
square feet of commercial space, which features a variety of neighborhoods
and housing styles, shopping and dining in Village Square, a Fitness Center
& Spa and the Tommy Fazio-designed Tradition National Golf Course.
Cypress Creek Capital Holdings, LLC, a wholly owned subsidiary, is a real
estate investment banking company. Cypress Creek Capital’s acquisition
program focuses on existing commercial income producing properties in
Florida’s growth markets. The company targets office, retail and industrial
real estate.
Snapper Creek Equity Management, LLC is a wholly-owned subsidiary of
Woodbridge Holdings Corporation focused on activities related to investing
in and acquiring mid-market diverse operating businesses.
For further information, please visit our websites:
*To receive future Woodbridge Holdings Corporation news releases or
announcements directly via Email, please click on the Email Broadcast Sign
Up button on our website: www.WoodbridgeHoldings.com.
Some of the statements contained or incorporated by reference herein
include forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended (the “Securities Act”), and Section 21E
of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
that involve substantial risks and uncertainties. Some of the
forward-looking statements can be identified by the use of words such as
“anticipate,” “believe,” “estimate,” “may,” “intend,” “expect,” “will,”
“should,” “seek” or other similar expressions. Forward-looking statements
are based largely on management’s expectations and involve inherent risks
and uncertainties described in this report. When considering those
forward-looking statements, you should keep in mind the risks,
uncertainties and other cautionary statements. These risks are subject to
change based on factors which are, in many instances, beyond the Company’s
control. Some factors which may affect the accuracy of the forward-looking
statements apply generally to the industries in which we operate, while
other factors apply directly to us. Any number of important factors could
cause actual results to differ materially from those in the forward-looking
statements including: the impact of economic, competitive and other
factors affecting the Company and its operations; the market for real
estate in the areas where the Company has developments, including the
impact of market conditions on the Company’s margins and the fair value of
our real estate inventory and the potential for write-downs or impairment
charges; the effects of increases in interest rates and availability of
credit to buyers of our inventory; accelerated principal payments on our
debt obligations due to re-margining or curtailment payment requirements;
the ability to obtain financing and to renew existing credit facilities on
acceptable terms, if at all; the Company’s ability to access additional
capital on acceptable terms, if at all; the risk that we may require to
adjust the carrying value of our investment in Bluegreen and incur an
impairment charge in future periods; the risk that the Bluegreen
acquisition transaction may not be consummated under the proposed terms, if
at all; equity risks associated with a decline in the trading prices of our
equity securities; the risks and uncertainties inherent in bankruptcy
proceedings and the inability to predict the effect of Levitt and Sons’
reorganization and/or liquidation process on Woodbridge Holdings
Corporation and its results of operation and financial condition, including
the risk that the previously announcement settlement will not be approved
or consummated and the risk that creditors of Levitt and Sons may be
successful in asserting claims against Woodbridge Holdings Corporation; the
Company’s ability to implement its business plan to pursue opportunistic
acquisitions and investments successfully, if at all, or produce results
which justify their costs and the risk that no gain from such investments
will be realized; the risk that the volatility in the trading price of
equity securities held will result in adjustments of shareholder equity;
the risks associated with the Company’s compliance with the continued
listing requirements of the New York Stock Exchange; and the Company’s
success at managing the risks involved in the foregoing. Many of these
factors are beyond the Company’s control and the Company cautions that the
foregoing factors are not exclusive. Further, while the Company intends to
effect the reverse stock split as soon as practicable, subject to market
and other customary conditions, there is no assurance that the reverse
stock split will be consummated or Woodbridge Holdings Corporation’s Class
A common stock will be eligible for continued listing on the NYSE
Additional information concerning the potential risk factors that could
affect Woodbridge Holdings Corporation’s future performance are described
in the Company’s periodic reports filed with the SEC, which may be viewed
free of charge on the SEC’s website, www.sec.gov, or on the Company’s
website, www.WoodbridgeHoldings.com.
Woodbridge Holdings Corporation
Consolidated Statements of Financial Condition - Unaudited
(In thousands, except share data)
June 30, December 31,
2008 2007
----------- -----------
Assets
Cash and cash equivalents $ 125,307 195,181
Restricted cash 729 2,207
Current income tax receivable 27,375 27,407
Inventory of real estate 242,185 227,290
Assets held for sale 95,827 96,214
Investments:
Bluegreen Corporation 117,365 116,014
Other equity securities 15,699 -
Other 2,564 2,565
Property and equipment, net 33,005 33,566
Other assets 13,655 12,407
----------- -----------
Total assets $ 673,711 712,851
=========== ===========
Liabilities and Shareholders' Equity
Accounts payable, accrued liabilities and other $ 37,454 41,618
Liabilities related to assets held for sale 82,311 80,093
Notes and mortgage notes payable 172,820 189,768
Junior subordinated debentures 85,052 85,052
Loss in excess of investment in subsidiary 55,214 55,214
----------- -----------
Total liabilities 432,851 451,745
----------- -----------
Shareholders' equity:
Preferred stock, $0.01 par value
Authorized: 5,000,000 shares
Issued and outstanding: no shares - -
Class A Common Stock, $0.01 par value
Authorized: 150,000,000 shares
Issued and outstanding: 95,197,445 and
95,040,731 shares, respectively 952 950
Class B Common Stock, $0.01 par value
Authorized: 10,000,000 shares
Issued and outstanding: 1,219,031 shares 12 12
Additional paid-in capital 337,358 336,795
Accumulated deficit (97,910) (78,537)
Accumulated other comprehensive income 448 1,886
----------- -----------
Total shareholders' equity 240,860 261,106
----------- -----------
Total liabilities and shareholders' equity $ 673,711 712,851
=========== ===========
Woodbridge Holdings Corporation
Consolidated Statements of Operations - Unaudited
(In thousands, except per share data)
Three Months Six Months
Ended June 30, Ended June 30,
------------------ ------------------
2008 2007 2008 2007
-------- -------- -------- --------
Revenues:
Sales of real estate $ 2,395 125,364 2,549 266,662
Other revenues 810 1,702 1,556 3,614
-------- -------- -------- --------
Total revenues 3,205 127,066 4,105 270,276
-------- -------- -------- --------
Costs and expenses:
Cost of sales of real estate 1,758 171,594 1,786 284,502
Selling, general and
administrative expenses 12,439 33,017 24,514 65,331
Interest expense 2,146 - 4,865 -
Other expenses - 413 - 895
-------- -------- -------- --------
Total costs and expenses 16,343 205,024 31,165 350,728
-------- -------- -------- --------
Earnings from Bluegreen Corporation 1,211 1,357 1,737 3,101
Interest and other income 1,946 3,294 3,545 5,634
-------- -------- -------- --------
Loss from continuing operations
before income taxes (9,981) (73,307) (21,778) (71,717)
Benefit for income taxes - 15,112 - 14,501
-------- -------- -------- --------
Loss from continuing operations (9,981) (58,195) (21,778) (57,216)
Discontinued operations:
Income from discontinued
operations, net of tax 1,039 108 2,405 105
-------- -------- -------- --------
Net loss $ (8,942) (58,087) (19,373) (57,111)
======== ======== ======== ========
Basic loss per common share:
Continuing operations $ (0.10) (2.88) (0.23) (2.83)
Discontinued operations 0.01 0.01 0.03 0.01
-------- -------- -------- --------
Total basic loss per common
share $ (0.09) (2.87) (0.20) (2.82)
======== ======== ======== ========
Diluted loss per common share:
Continuing operations $ (0.10) (2.88) (0.23) (2.83)
Discontinued operations 0.01 0.01 0.03 0.01
-------- -------- -------- --------
Total diluted loss per common
share $ (0.09) (2.87) (0.20) (2.82)
======== ======== ======== ========
Weighted average common shares
outstanding:
Basic 96,264 20,218 96,261 20,217
Diluted 96,264 20,218 96,261 20,217
Dividends declared per common
share:
Class A common stock $ - - - 0.02
Class B common stock $ - - - 0.02
WOODBRIDGE HOLDINGS CORPORATION
Summary of Selected Financial Data (unaudited)
As of or for the
Six Months Ended
--------------------
(dollars in thousands,
except share and per
share data) 6/30/2008 6/30/2007
--------- ---------
Consolidated Operations:
Revenues from sales
of real estate $ 2,549 266,662
Cost of sales of real
estate $ 1,786 284,502
--------- ---------
Margin (a) $ 763 (17,840)
Earnings from
Bluegreen
Corporation $ 1,737 3,101
Selling, general and
administrative
expenses $ 24,514 65,331
Loss from continuing
operations $ (21,778) (57,216)
Income from
discontinued
operations $ 2,405 105
Net loss $ (19,373) (57,111)
Basic loss per share
(b)
Continuing
Operations $ (0.23) (2.83)
Discontinued
operations $ 0.03 0.01
--------- ---------
Total basic loss per
share $ (0.20) (2.82)
Diluted loss per
share (b)
Continuing
Operations $ (0.23) (2.83)
Discontinued
operations $ 0.03 0.01
--------- ---------
Total diluted loss
per share $ (0.20) (2.82)
Weighted average
shares outstanding -
basic 96,261 20,217
Weighted average
shares outstanding
-diluted 96,261 20,217
Dividends declared
per common share $ - 0.02
Key Performance Ratios:
S, G & A expense as a
percentage of total
revenues 597.2% 24.2%
Return on average
shareholders'
equity, trailing 12
mos. (d) (74.5%) (20.4%)
Ratio of debt to
shareholders' equity 107.1% 227.6%
Ratio of debt to
total capitalization 51.7% 69.5%
Ratio of net debt to
total capitalization 26.6% 62.9%
Consolidated Financial
Condition Data:
Cash and cash
equivalents $ 125,307 61,618
Inventory of real
estate 242,185 776,211
Investment in
Bluegreen
Corporation 117,365 109,658
Total assets 673,711 1,096,585
Total debt 257,872 654,093
Total liabilities 432,851 809,244
Shareholders' equity 240,860 287,341
Homebuilding Division
(e):
Revenues from sales
of real estate $ - 257,822
Cost of sales of real
estate - 278,609
--------- ---------
Margin (a) $ - (20,787)
Margin percentage (c) - (8.1%)
Gross orders (units) - 763
Cancellations (units) - 313
Net orders (units) - 450
Net orders (value) - 106,226
Construction starts - 489
Homes delivered - 741
Average closing price
of homes delivered
(h) $ - 333
Backlog of homes
(units) - 957
Backlog of homes ($) $ - 297,832
Land Division (f):
Revenues from sales
of real estate (i) $ 1,865 2,694
Cost of sales of real
estate (i) 1,173 555
--------- ---------
Margin (a) (i) $ 692 2,139
Margin percentage (c)
(i) 37.1% 79.4%
Acres sold 3 1
Inventory of real
estate (acres) (g) 6,676 6,870
Inventory of real
estate ($) $ 200,976 204,611
Backlog of land
(acres) - Third
parties 326 98
Backlog of land ($) -
Third parties $ 96,164 29,013
As of or for the Three Months Ended
---------------------------------------------------
(dollars in thousands,
except share and per
share data) 6/30/2008 3/31/2008 12/31/2007 9/30/2007 6/30/2007
--------- --------- ------- --------- ---------
Consolidated Operations:
Revenues from sales
of real estate 2,395 154 20,629 122,824 125,364
Cost of sales of real
estate 1,758 28 13,399 275,340 171,594
--------- --------- ------- --------- ---------
Margin (a) 637 126 7,230 (152,516) (46,230)
Earnings from
Bluegreen
Corporation 1,211 526 2,756 4,418 1,357
Selling, general and
administrative
expenses 12,439 12,075 19,200 31,556 33,017
Loss from continuing
operations (9,981) (11,797) (9,189) (169,980) (58,195)
Income from
discontinued
operations 1,039 1,366 848 812 108
Net loss (8,942) (10,431) (8,341) (169,168) (58,087)
Basic loss per share
(b)
Continuing operations (0.10) (0.12) (0.10) (8.41) (2.88)
Discontinued
operations 0.01 0.01 0.01 0.04 0.01
--------- --------- ------- --------- ---------
Total basic loss per
share (0.09) (0.11) (0.09) (8.37) (2.87)
Diluted loss per
share (b)
Continuing operations (0.10) (0.12) (0.10) (8.41) (2.88)
Discontinued
operations 0.01 0.01 0.01 0.04 0.01
--------- --------- ------- --------- ---------
Total diluted loss
per share (0.09) (0.11) (0.09) (8.37) (2.87)
Weighted average
shares outstanding -
basic 96,264 96,257 96,256 20,220 20,218
Weighted average
shares outstanding
-diluted 96,264 96,257 96,256 20,220 20,218
Dividends declared
per common share - - - - -
Key Performance Ratios:
S, G & A expense as a
percentage of total
revenues 388.1% 1341.7% 90.0% 25.4% 26.0%
Return on average
shareholders'
equity, trailing 12
mos. (d) (74.5%) (82.8%) (77.6%) (100.3%) (20.4%)
Ratio of debt to
shareholders' equity 107.1% 105.1% 105.3% 510.0% 227.6%
Ratio of debt to
total capitalization 51.7% 51.3% 51.3% 83.6% 69.5%
Ratio of net debt to
total capitalization 26.6% 25.6% 14.9% 78.7% 62.9%
Consolidated Financial
Condition Data:
Cash and cash
equivalents 125,307 131,183 195,181 35,733 61,618
Inventory of real
estate 242,185 234,223 227,290 580,104 776,211
Investment in
Bluegreen
Corporation 117,365 116,340 116,014 115,408 109,658
Total assets 673,711 688,694 712,851 900,392 1,096,585
Total debt 257,872 262,119 274,820 609,149 654,093
Total liabilities 432,851 439,374 451,745 780,959 809,244
Shareholders' equity 240,860 249,320 261,106 119,433 287,341
Homebuilding Division
(e):
Revenues from sales
of real estate - - 7,662 122,224 123,653
Cost of sales of real
estate - - 6,747 267,210 171,006
--------- --------- ------- --------- ---------
Margin (a) - - 915 (144,986) (47,353)
Margin percentage (c) - - 11.9% (118.6%) (38.3%)
Gross orders (units) - - 62 206 478
Cancellations (units) - - 68 157 187
Net orders (units) - - (6) 49 291
Net orders (value) - - (3,695) 12,872 62,326
Construction starts - - 4 236 235
Homes delivered - - 28 375 379
Average closing price
of homes delivered
(h) - - 274 302 326
Backlog of homes
(units) - - - 631 957
Backlog of homes ($) - - - 197,404 297,832
Land Division (f):
Revenues from sales
of real estate (i) 1,711 154 13,116 757 1,917
Cost of sales of real
estate (i) 1,145 28 6,636 256 483
--------- --------- ------- --------- ---------
Margin (a) (i) 566 126 6,480 501 1,434
Margin percentage (c)
(i) 33.1% 81.8% 49.4% 66.2% 74.8%
Acres sold 3 - 38 1 1
Inventory of real
estate (acres) (g) 6,676 6,679 6,679 6,717 6,870
Inventory of real
estate ($) 200,976 195,068 189,903 212,704 204,611
Backlog of land
(acres) - Third
parties 326 260 259 291 98
Backlog of land ($) -
Third parties 96,164 78,488 77,888 92,451 29,013
(a) Margin is calculated as sales of real estate minus cost of sales of
real estate. Homebuilding Division impairment charges and write-offs of
deposits and pre-acquisition costs included in cost of sales for the
quarters ended June 30, 2007 and September 30, 2007; totaled $63.0
million and $154.3 million, respectively. There were no impairment
charges for the quarters ended June 30, 2008, March 31, 2008 and
December 31, 2007.
(b) Diluted loss per share takes into account the dilutive effect of our
stock options and restricted stock using the treasury stock method and
the dilution in earnings we recognize as a result of outstanding
Bluegreen securities that entitle the holders thereof to acquire shares
of Bluegreen's common stock. The weighted average number of common
shares outstanding in basic and diluted loss per share for all prior
periods presented have been retroactively adjusted for a number of
shares representing a bonus element arising from the rights offering
that closed at a higher price ($2.05) on October 1, 2007 than the
offering price of $2.00 per share.
(c) Margin percentage is calculated by dividing margin by sales of real
estate.
(d) Calculated by dividing net loss by average shareholders' equity.
Average shareholders' equity is calculated by averaging the equity
balance at the end of the current period with the equity balance at the
end of the same period in the prior year.
(e) Backlog includes all homes subject to sales contracts.
(f) There were no land sales to the Homebuilding Division during 2007. Any
inter-segment transactions are eliminated in consolidation.
(g) Estimated net saleable acres (subject to final zoning, permitting, and
other governmental regulations / approvals). Includes approximately 56
acres related to assets held for sale as of June 30, 2008.
(h) Average closing price of homes delivered excludes lot sales and land
sales in the Homebuilding Division.
(i) Consists of land sales, look back fees and revenue recognition of
previously deferred revenue associated with percentage of completion
accounting.
WOODBRIDGE HOLDINGS CORPORATION
Land Development Properties
As of: 6/30/08
Non- Net
Total Saleable Saleable Closed
Project Location Acres Acres (a) Acres (a) Acres
------------ ---------- ---------- ---------- ----------
Currently in
Development
St. Lucie
Tradition, FL County, FL 8,246 2,583 5,663 1,794
Jasper
Tradition, SC County, SC 5,390 2,417 2,973 165
---------- ---------- ---------- ----------
Total
Currently in
Development 13,636 5,000 8,636 1,959
========== ========== ========== ==========
$ Book Acres
Saleable value per Contract Saleable
Acres Saleable to Third Acres
Remaining Acre Parties Available
Project (c) ($000) (b) (d)
------------ ---------- ---------- ----------
Currently in
Development
Tradition, FL 3,869 26 293 3,576
Tradition, SC 2,808 35 33 2,775
------------ ---------- ---------- ----------
Total Currently
in Development 6,676 $ 30 326 6,350
============ ========== ========== ==========
(a) Actual saleable acres may vary from original plan due to changes in
zoning, project design, or other factors.
(b) There can be no assurance that current property contracts will be
consummated.
(c) Includes approximately 56 acres related to assets held for sale as of
June 30, 2008.
(d) Saleable acres available for sale are approved for the following mix of
use:
Acres Residential Commercial
Project Available Units* Sq. Ft.
----------- ----------- -----------
Tradition, FL 3,576 13,000 7,500,000
Tradition, SC 2,775 8,500 1,500,000
----------- ----------- -----------
Total 6,350 21,500 9,000,000
* Based on current plans for these communities. Management does
not expect to utilize the full residential density allowed by
the existing entitlements.
| Woodbridge Holdings Corporation Contact Information: Investor Relations: Leo Hinkley SVP, Investor Relations Officer Phone: (954) 940-4995 Fax: (954) 940-5320 Email: |
|
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