Bluegreen Vacations Reports Financial Results for Fourth Quarter and Full Year 2022

March 13, 2023 at 6:30 AM·22 min read

BOCA RATON, Fla., March 13, 2023--(BUSINESS WIRE)--Bluegreen Vacations Holding Corporation (NYSE: BVH) (OTCQX: BVHBB) (the "Company" or "Bluegreen") reported today its financial results for the quarter and year ended December 31, 2022.

Key Highlights as of and for the Quarter Ended December 31, 2022:

Net income attributable to shareholders from continuing operations decreased 37% to $7.6 million from $12.2 million in the prior year quarter. Excluding the charge relating to exiting of certain marketing locations, net income attributable to shareholders from continuing operations decreased 5% to $11.6 million during the fourth quarter of 2022.
Diluted Earnings Per Share ("EPS") from continuing operations decreased 30% to $0.41 from $0.59 in the prior year quarter. Excluding the charge relating to exiting of certain marketing locations, diluted EPS from continuing operations increased 5% to $0.61 during the fourth quarter of 2022.
Total revenue increased 17% to $238.0 million from $203.0 million in the prior year quarter.
System-wide sales of vacation ownership interests ("VOIs") increased 12% to $186.5 million from $166.6 million in the prior year quarter.⁽¹⁾
Number of guest tours increased 1% to 58,632 from 57,796 in the prior year quarter.
Vacation packages sold were 46,002 compared to 53,721 in the prior year quarter, a decrease we believe reflected the continued effects of a challenging labor market which affected staffing levels and resulted in increased turnover.
Vacation packages outstanding of 165,240 as of December 31, 2022 compared to 187,244 outstanding as of December 31, 2021.
Resort operations and club management segment Adjusted EBITDA increased 2% to $20.4 million from $20.0 million in the prior year quarter.
Adjusted EBITDA attributable to shareholders increased 4% to $32.2 million from $31.0 million in the prior year quarter.⁽²⁾
The Company completed a cash tender offer pursuant to which it purchased and retired 3,040,882 shares of its Class A Common Stock at a purchase price of $25.00 per share for an aggregate purchase price of $76.0 million.

Key Highlights for the Year Ended December 31, 2022:

Net income attributable to shareholders from continuing operations increased 11% to $64.4 million from $57.8 million in the prior year period. Excluding the fourth quarter 2022 charge relating to exiting of certain marketing locations, net income attributable to shareholders from continuing operations increased 19% to $69.4 million during 2022.
Diluted EPS from continuing operations increased 16% to $3.24 from $2.79 in the prior year. Excluding the fourth quarter 2022 charge relating to exiting of certain marketing locations, diluted EPS from continuing operations increased 25% to $3.47 during 2022.
Total revenue increased 21% to $919.4 million from $757.1 million in the prior year.
System-wide sales of VOIs increased 20% to $743.4 million from $617.6 million in the prior year. ⁽¹⁾
Number of guest tours increased 14% to 243,448 from 213,599 in the prior year.
Vacation packages sold were 168,982 compared to 211,364 in the prior year.
Resort operations and club management segment adjusted EBITDA increased 6% to $83.8 million from $78.9 million in the prior year.
Adjusted EBITDA attributable to shareholders increased 15% to $139.8 million from $122.0 million in the prior year. ⁽²⁾
Free cash flow was an outflow of $28.0 million compared to an inflow of $63.4 million in 2021, primarily as a result of our $78.0 million acquisition of our newest resort, Bayside Resort & Spa in Panama City Beach, Florida. ⁽³⁾

(1)		See appendix for reconciliation of system-wides sales of VOIs to gross sales of VOIs for each respective period.
(2)		See appendix for reconciliation of Adjusted EBITDA attributable to shareholders to net income attributable to shareholders for each respective period.
(3)		See appendix for reconciliation of free cash flow to net cash provided by operating activities.

Alan B. Levan, Chairman and Chief Executive Officer of Bluegreen Vacations Holding Corporation, commented, "We believe our record sales performance throughout 2022 is evidence that the appeal of the Bluegreen Vacation Club to our target customer base is stronger than ever. In the fourth quarter of 2022, our sales team generated a fourth quarter record $186.5 million of system-wide sales of VOIs, which was a 12% increase over the prior year quarter. The increase reflected both an increase in our sales efficiency, as demonstrated by the 7% increase in our sales volume per guest, and a 1% increase in guest tours over the prior year quarter."

"Our sales of VOIs are driven by the success of our marketing programs, and Bluegreen’s marketing to new customers generally begins with the sale of a vacation package to a prospect. During the fourth quarter of 2022, we sold 46,002 vacation packages, a decrease from the 53,721 we sold in the fourth quarter of 2021, a decrease we believe reflected the continued effects of a challenging labor market which affected staffing levels and resulted in increased turnover and consequently impacted package sales at our marketing kiosks. The decrease is also reflecting lower traffic in the retail locations where we operate."

"As we begin 2023, one of our objectives is to increase the efficiency of our marketing spend and to accomplish this, we will seek to increase our VOI sales and also lower our new customer acquisition cost. In connection with this objective, in December 2022 we vacated certain marketing locations that were difficult to staff and/or were under-performing. As a result, we incurred a charge of $6.6 million, which we add back to Adjusted EBITDA."

"Overall, the demand for vacations by Bluegreen Vacation Club owners has been and remains strong and we believe our core strategy of primarily offering a ‘drive-to’ network of resorts will continue to serve as a growth driver."

"However, we cannot predict the future impact of general economic conditions, including higher interest rates, inflationary trends, and labor availability, on our operations. From a balance sheet perspective, we believe that we are well positioned to help navigate various economic conditions with approximately $175.7 million of unrestricted cash on hand and $430.5 million of conditional availability under our lines of credit and receivable purchase facilities as of December 31, 2022. We also believe we have a level of protection from rising interest rates as 42% of our outstanding debt is at fixed interest rates. As always, we are focused on growth and profitability over the long term, while at the same time delivering memorable vacation experiences to our owners," Mr. Levan concluded.

Financial Results
(dollars in millions, except per guest and per transaction amounts)

	Three Months Ended December 31,								Year Ended December 31,
	2022		2021		Change			2022			2021		Change

Total revenue	$	238.0	$	203.0		17.2	%	$		919.4	$	757.1	21.4	%
Income before non-controlling interest and provision for income taxes	$	17.8	$	25.0		(28.8)	%	$		107.4	$	98.6	8.9	%
Adjusted EBITDA Attributable to Shareholders	$	32.2	$	31.0		3.9	%	$		139.8	$	122.0	14.6	%

Adjusted EBITDA Attributable to Shareholders was $32.2 million for the quarter ended December 31, 2022, including $42.3 million generated by the Sales of VOIs and Financing Segment and $20.4 million produced by the Resort Operations and Club Management segment, partially offset by $25.5 million of corporate overhead and other expenses and $5.0 million of Adjusted EBITDA attributable to a third-party non-controlling interest in Bluegreen/Big Cedar Vacations LLC.

Adjusted EBITDA Attributable to Shareholders was $139.8 million for the full year 2022, including $159.3 million generated by the Sales of VOIs and Financing Segment and $83.8 million produced by the Resort Operations and Club Management segment, partially offset by $86.2 million of corporate overhead and other expenses and $17.1 million of Adjusted EBITDA attributable to a third-party non-controlling interest in Bluegreen/Big Cedar Vacations LLC. Please see the discussion of Segment Results below for further information.

Sales of VOIs and Financing Segment
(dollars in millions, except per guest and per transaction amounts)

	For the Three Months Ended December 31						For the Years Ended December 31
	2022		2021		Q4 2022 vs Q4 2021 % Change		2022		2021		YTD 2022 vs YTD 2021 % Change

System-wide sales of VOIs	$	186.5	$	166.6	11.9	%	$	743.4	$	617.6	20.4	%
Segment adjusted EBITDA	$	42.3	$	31.6	33.9	%	$	159.3	$	138.1	15.4	%
Provision for loan losses		16.3%		17.7%	(140)	bp		15.8%		17.1%	(130)	bp
Cost of VOIs sold		10.1%		10.0%	10	bp		11.0%		8.3%	270	bp
Financing revenue, net of financing expense	$	20.7	$	17.7	16.9	%	$	78.3	$	65.6	19.4	%

Key Data Regarding Bluegreen’s System-wide sales of VOIs and Gross Profit

	For the Three Months Ended December 31,							For the Years Ended December 31,
	2022		2021		Q4 2022 vs Q4 2021 % Change		2022			2021		YTD 2022 vs YTD 2021 %Change

System-wide sales of VOIs	$	186.5	$	166.6	11.9	%	$		743.4	$	617.6	20.4	%
Number of total guest tours		58,632		57,796	1.4	%			243,448		213,599	14.0	%
Average sales price per transaction	$	21,132	$	18,929	11.6	%	$		20,689	$	17,696	16.9	%
Sales to tour conversion ratio		15.1%		15.3%	(20)	bp			14.9%		16.4%	(150)	bp
Sales volume per guest ("VPG")	$	3,192	$	2,987	6.9	%	$		3,073	$	2,907	5.7	%

Provision for loan losses		16.3%		17.7%	(140)	bp			15.8%		17.1%	(130)	bp
Cost of VOIs sold		10.1%		10.0%	10	bp			11.0%		8.3%	270	bp

System-wide sales of VOIs increased 12% to $186.5 million during the three months ended December 31, 2022 from $166.6 million for the three months ended December 31, 2021. The number of guest tours was 1% higher while sales volume per guest, or VPG, was 7% higher in the fourth quarter of 2022 as compared to the fourth quarter of 2021. The VPG performance in the fourth quarter of 2022 was driven by a 12% increase in average sales price per transaction, partially offset by a 20 basis-point decrease in the sale-to-tour conversion rate.

System-wide sales of VOIs increased 20% to a record $743.4 million during the year ended December 31, 2022 from $617.6 million during the year ended December 31, 2021. The number of guest tours was 14% higher while sales volume per guest, or VPG, was 6% higher in the year ended December 31, 2022 as compared to the year ended December 31, 2021. The VPG performance in 2022 was driven by a 17% increase in average sales price per transaction, partially offset by a 150 basis-point decrease in the sale-to-tour conversion rate.

Fee-based Sales Commission Revenue

VOI sales of third-party inventory, for which we earn a commission, represented 12% and 14% of System-wide Sales of VOIs during the fourth quarter and year ended December 31, 2022, respectively. Fee-based sales commission revenue on such sales was $15.5 million during the fourth quarter of 2022 and $72.6 million for the full year of 2022, which represented a commission rate of approximately 68% for both periods.

VOI sales of third-party inventory, for which we earn a commission, are expected to be between 10% and 15% of system-wide sales of VOIs in 2023.

Provision for Loan Losses

The provision for loan losses as a percentage of gross sales of VOIs was approximately 16% during the fourth quarter of 2022 and 18% during the fourth quarter of 2021. The provision for loan losses as a percentage of gross sales of VOIs was 16% during the year ended December 31, 2022 and 17% during the year ended December 31, 2021. The change in the provision for loan losses during the 2022 periods as compared to the 2021 periods was primarily driven by the change in the percentage of loans from existing owners versus new owners and lower defaults experienced in 2022. The provision for loan losses applied to new loans during the year ended December 31, 2022 was 27%, an increase from 26% in the prior year, due to the change in the percentage of loans from existing owner versus new owners.

The provision for loan losses is expected to be between 16% and 18% of gross sales of VOIs for 2023.

Cost of VOIs Sold

Cost of VOIs sold represented 10% of sales of VOIs in both the fourth quarter of 2022 and the fourth quarter of 2021. During the year ended December 31, 2022, cost of VOIs sold represented 11% of sales of VOIs compared to 8% during the year ended December 31, 2021. The cost of VOIs sold as a percentage of sales of VOIs increased during 2022 as compared to 2021 primarily due to the relative mix of inventory being sold in 2022, partially offset by the timing of secondary market VOI purchases, which typically results in lower cost of sales in the period that we purchase these VOIs, and the reinstatement of certain equity trade programs in 2022.

Cost of VOIs sold is expected to be between 11% and 13% of sales of VOIs in 2023.

Financing Revenue, net of Financing Expense

Interest income on VOI notes receivable increased 24% to $27.0 million in the fourth quarter of 2022 compared to $21.8 million in the fourth quarter of 2021 reflecting a higher balance of VOI notes receivable. Interest expense on receivable-backed notes payable increased 58% to $5.6 million in the fourth quarter of 2022 compared to $3.6 million in the fourth quarter of 2021, primarily due to higher outstanding receivable-backed notes payable and an increased weighted-average cost of borrowing reflecting increased interest rates.

Interest income on VOI notes receivable increased 21% to $98.0 million in during the year ended December 31, 2022 compared to $81.3 million during the year ended December 31, 2021 reflecting a higher balance of VOI notes receivable. Interest expense on receivable-backed notes payable increased 16% to $17.9 million during the year ended December 31, 2022 compared to $15.5 million during the year ended December 31, 2021, primarily due to higher outstanding receivable-backed notes payable and an increased weighted-average cost of borrowing reflecting increased interest rates.

Selling and Marketing Expenses

	For the Three Months Ended December 31						For the Years Ended December 31
		2022	2021		Q4 2022 vs Q4 2021 % Change			2022	2021		YTD 2021 vs YTD 2020 % Change

Percentage of sales to new owners		45.8%		47.7%	(190)	bp		46.0%		45.9%	10	bp
Number of Bass Pro and Cabela's marketing locations ⁽²⁾		129		128	0.8	%		129		128	0.8	%
Number of total guest tours		58,632		57,796	1.4	%		243,448		213,599	14.0	%
Number of vacation packages sold		46,002		53,721	(14.4)	%		168,982		211,364	(20.1)	%
Number of vacation packages outstanding, end of the period ⁽¹⁾		165,240		187,244	(11.8)	%		165,240		187,244	(11.8)	%

(1)		Excludes vacation packages sold to customers more than one year prior to the period presented and vacation packages sold to customers who had already toured and purchased.
(2)		As of January 1, 2023, 23 of our Cabela’s marketing locations were converted to unmanned, virtual kiosks.

Selling and marketing expenses increased 17% in the fourth quarter of 2022 compared to the fourth quarter of 2021. The increase in selling and marketing expenses is due to increased selling commissions associated with the 12% increase in system-wide sales, higher cost per tour and higher expenses relating to the fulfillment of a greater number of guest tours in the period, the cost of expanded marketing operations and the costs of $6.6 million incurred in connection with the reorganization of Bluegreen’s retail marketing operations including the elimination of lower performing marketing programs at various locations. To a lesser extent, selling and marketing expenses were also impacted by start-up costs associated with preparing for the start of sales operations at Bluegreen’s Bayside Resort & Spa, in Panama City Beach, FL, where we commenced VOI sales in January 2023.

Bluegreen’s vacation marketing programs sold 46,002 vacation packages during the fourth quarter of 2022. This reflects a decrease of approximately 14% in vacation package sales as compared to the fourth quarter of 2021, which we believe was due primarily to the challenging labor market, which impacted staffing levels and turnover at our marketing kiosks, lower traffic in the retail locations where we operate, as well as certain changes to our package program in an effort to improve the quality of the packages. For the year ended December 31, 2022, vacation packages sold decreased 20% to 168,982 from 211,364 for the year ended December 31, 2021. The active pipeline of vacation packages decreased to 165,240 at December 31, 2022 from 187,244 at December 31, 2021, based on vacation packages used or expired net of new vacation package sales. While there is no assurance that this will continue to be the case, historically, approximately 40%-42% of vacation packages resulted in guest tours at one of Bluegreen’s resorts with a sales center within twelve months of purchase. In addition to this active pipeline, Bluegreen also has a pipeline of approximately 15,800 vacation packages held by customers who already toured and purchased a VOI and have indicated they would tour again.

Selling and marketing expenses increased 25% during the year ended December 31, 2022 compared to the year ended December 31, 2021, and represented 57% and 55% of system-wide sales of VOIs, respectively. The increase in selling and marketing expenses is due to the 20% increase in system-wide sales.

Selling and marketing expenses are expected to be between 53% and 57% as a percentage of system-wide sales for 2023.

General & Administrative Expenses from Sales & Marketing Operations

General and administrative expenses representing expenses directly attributable to sales and marketing operations increased 6% to $12.8 million during the fourth quarter of 2022 from $12.1 million during the fourth quarter of 2021, respectively. As a percentage of system-wide sales of VOIs, general and administrative expenses attributable to sales and marketing operations were 7% in both the fourth quarter of 2022 and the fourth quarter of 2021.

General and administrative expenses representing expenses directly attributable to sales and marketing operations increased 37% to $50.2 million during the year ended December 31, 2022 from $36.7 million during the year ended December 31, 2021. As a percentage of system-wide sales of VOIs, general and administrative expenses attributable to sales and marketing operations were 7% in the year ended December 31, 2022 and were 6% in the year ended December 31, 2021.

In 2022, the increase in general and administrative expenses attributable to sales and marketing operations reflects increased compensation costs due to expansion of our sales and marketing support operations in anticipation of expected future sales growth.

General and administrative expenses representing expenses directly attributable to sales and marketing operations as a percentage of sales are expected to be between 5% and 8% as a percentage of system-wide sales in 2023.

Resort Operations and Club Management Segment
(dollars in millions)

	For the Three Months Ended December 31,						For the Years Ended December 31,
	2022		2021		Q4 2022 vs Q4 2021 % Change		2022		2021		YTD 2022 vs YTD 2021 % Change

Resort operations and club management revenue	$	52.4	$	47.1	11.3	%	$	195.6	$	180.3	8.5	%
Segment Adjusted EBITDA	$	20.5	$	20.0	2.5	%	$	83.8	$	78.9	6.2	%
Resorts managed		50		49	2.0	%		50		49	2.0	%

The increases in the fourth quarter and full year 2022 Resort operations and club management revenue and Adjusted EBITDA primarily reflect an increase in management fees reflecting higher HOA resort operating costs and an additional resort management contract, partially offset by higher labor cost of providing such services.

Corporate Overhead, Administrative Expenses and Interest Expense

Corporate General and Administrative Expenses

General and administrative expenses increased 40% to $30.3 million during the fourth quarter of 2022 from $21.6 million during the fourth quarter of 2021. General and administrative expenses increased 12% to $101.3 million from $90.9 million during the years ended December 31, 2022 and December 31, 2021, respectively. The increase during 2022 as compared to 2021 was primarily due to higher legal expenses associated with litigation and higher information technology costs.

Interest Expense

Interest expense not related to receivable-backed debt was $8.4 million and $4.5 million during the fourth quarters of 2022 and 2021, respectively. Interest expense not related to receivable-backed debt was $25.0 million and $19.8 million during the years ended December 31, 2022 and 2021, respectively. These increases were primarily due to an increase in outstanding debt and a higher weighted average cost of borrowing due to increased interest rates in the 2022 periods.

Class A Common Stock Cash Tender Offer

In November 2022, the Company commenced a cash tender offer to purchase up to 4,500,000 shares of its Class A Common Stock. The tender offer expired at 5:00 P.M., Eastern time, on Friday, December 23, 2022, and a total of 3,040,882 shares of Bluegreen’s Class A Common Stock were purchased for an aggregate price of approximately $76.0 million ($25.00 per share), excluding fees and expenses relating to the tender offer. The shares purchased represented approximately 18.9% of the then issued and outstanding shares of Bluegreen’s Class A Common Stock and 15.4% of the aggregate number of issued and outstanding shares of Bluegreen’s Class A Common Stock and Class B Common Stock. The shares purchased in the tender offer were canceled by the Company.

Additional Information

For more complete and detailed information regarding the Company and its financial results, please see the Company’s Annual Report on Form 10-K for the year ended December 31, 2022, which is expected to be filed with the SEC on or about March 13, 2023 and will be available on the SEC's website, https://www.sec.gov, and on the Company’s website, www.BVHCorp.com.

Non-GAAP Financial Measures

The Company refers to certain non-GAAP financial measures in this press release, including EBITDA, Adjusted EBITDA, System-wide Sales of VOIs, and Free Cash Flow. Please see the supplemental tables herein for how these terms are defined and for reconciliations of such measures to the most comparable GAAP financial measures.

About Bluegreen Vacations:

Bluegreen Vacations Holding Corporation (NYSE: BVH; OTCQX: BVHBB) is a leading vacation ownership company that markets and sells vacation ownership interests and manages resorts in popular leisure and urban destinations. The Bluegreen Vacation Club is a flexible, points-based, deeded vacation ownership plan with 69 Club and Club Associate Resorts and access to nearly 11,400 other hotels and resorts through partnerships and exchange networks. The Company also offers a portfolio of comprehensive, fee-based resort management, financial, and sales and marketing services to, or on behalf of, third parties.

For further information, please visit us at:

Bluegreen Vacations Holding Corporation: www.BVHCorp.com

Forward Looking Statements

Certain statements in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements are based on current expectations of management and can be identified by the use of words such as "believe", "may", "could", "should", "plans", "anticipates", "intends", "estimates", "expects", and other words and phrases of similar import. Forward-looking statements involve risks, uncertainties, and other factors, many of which are beyond our control, that may cause actual results or performance to differ from those set forth or implied in the forward-looking statements. These risks and uncertainties include, without limitation, the risk that the Company is a holding company and, accordingly, will be largely dependent on dividends from Bluegreen to fund its expenses and obligations in future periods, and Bluegreen’s ability to pay dividends will depend on its results and may be limited by the terms of Bluegreen’s indebtedness; risks regarding the amount of shares, if any, which may be repurchased by the Company in the future, the benefits to the Company, if any, of repurchasing shares, the timing of any share repurchases, and the availability of funds for the repurchase of shares; the risk that quarterly dividend payments may not be declared at the current level in the future, on a regular basis as anticipated, or at all; risks relating to Bluegreen’s business, operations, financial results, business strategy and prospects; risks related to public health, general economic conditions, including increasing interest rates, inflationary trends, a potential recession and supply chain issues, and our ability to successfully navigate any adverse condition; competitive conditions; labor market conditions, including costs and shortages of labor, and its impact on Bluegreen’s operations and sales; risks related to changes made to our vacation package programs and their impact on sales, including that the retail marketing reorganization may not result in the benefits anticipated; risks related to our investments in sales and marketing efforts and infrastructure, including their impact on our cash flow and the risk that they may not result in the benefits anticipated; risks related to resort acquisitions and our pursuit of acquisition and development opportunities, including that acquired resorts may not open when planned, the costs and risks of development and renovation activities, including potential construction delays and environmental issues, that we may not be successful in identifying or consummating acquisition or development opportunities in the future, and that acquired or developed resorts may not be successfully operated or result in the benefits anticipated; risks relating to our liquidity and the availability of capital; the risk that our allowance for loan losses may not be adequate and, accordingly, may need to be increased in the future, including if Bluegreen’s default rates increase and exceed expectations; risks related to Bluegreen’s efforts to address the actions of timeshare exit firms and the increase in default rates associated therewith are not successful, or otherwise; risks related to our indebtedness, including the potential for accelerated maturities and debt covenant violations; the impact of public health and general economic conditions, including inflation, on Bluegreen’s consumers, including their income and level of discretionary spending, and on consumer traffic at retail locations; the risk that our core strategy of primarily offering a ‘drive-to’ network of resorts will not continue to serve as a growth driver; the risk that resort operations and club management segment may not continue to produce recurring EBITDA and free cash flow; risks that Bluegreen’s current or future marketing alliances and arrangements, including its marketing arrangements with Bass Pro and the Choice Hotels program, may not be renewed and will expire pursuant to their terms; the risk that vacation package sales, including those in the pipeline, may not convert to tours and/or VOI sales at anticipated or historical rates; the risk that efforts to reactivate older vacation packages which have not been used may not be successful; the risk that resort occupancies may not continue at current or historical levels or meet expectations; our ability to successfully implement strategic plans and initiatives, generate earnings and long-term growth may not result in increased sales, revenues or efficiencies, or otherwise be successful; risks that construction defects, structural failures or natural disasters at or in proximity to Bluegreen’s resort; risks related to expansion of the resort network in existing and to new locations, including that such expansion may not be successful and may increase the Company’s debt and decrease the Company’s free cash flow; risks related to the mix of sales to new customers and existing owners, including that the level of sales to new customers may not be increased or maintained, or support net owner growth in the future; and the additional risks and uncertainties described in the Company's filings with the SEC, including, without limitation, the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 (including the "Risk Factors" section thereof), which is expected to be filed on March 13, 2023. The Company cautions that the foregoing factors are not exclusive. You should not place undue reliance on any forward-looking statement, which speaks only as of the date made. The Company does not undertake, and specifically disclaims any obligation, to update or supplement any forward-looking statements. In addition, past performance may not be indicative of future results.

BLUEGREEN VACATIONS HOLDING CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)

	December 31,			December 31,
	2022			2021
ASSETS
Cash and cash equivalents	$	175,683		$	140,225
Restricted cash ($19,461 and $15,956 in VIEs at December 31, 2022 and 2021, respectively)		50,845			42,854
Notes receivable		763,801			609,429
Less: Allowance for loan loss		(211,311	)		(163,107	)
Notes receivable, net ($354,403 and $248,873 in VIEs at December 31, 2022 and 2021, respectively)		552,490			446,322
Vacation ownership interest ("VOI") inventory		389,864			334,605
Property and equipment, net		85,915			87,852
Intangible assets, net		61,293			61,348
Operating lease assets		22,963			33,467
Prepaid expenses		23,833			25,855
Other assets		35,499			37,984
Total assets	$	1,398,385		$	1,210,512

LIABILITIES AND EQUITY
Liabilities
Accounts payable	$	21,389		$	14,614
Deferred income		15,675			13,690
Accrued liabilities and other		110,048			100,131
Receivable-backed notes payable - recourse		20,841			22,500
Receivable-backed notes payable - non-recourse (in VIEs)		440,781			340,154
Note payable to BBX Capital, Inc.		50,000			50,000
Other notes payable and borrowings		218,738			97,125
Junior subordinated debentures		136,011			134,940
Operating lease liabilities		27,716			37,870
Deferred income taxes		113,193			95,688
Total liabilities		1,154,392			906,712
Commitments and contingencies (See Note 12)
Equity
Preferred Stock of $0.01 par value; authorized 10,000,000 shares		—			—
Class A Common Stock of $0.01 par value; authorized 30,000,000 shares; issued and outstanding 12,165,825 in 2022 and 17,118,392 in 2021		122			171
Class B Common Stock of $0.01 par value; authorized 4,000,000 shares; issued and outstanding 3,664,117 in 2022 and 3,664,412 in 2021		37			37
Additional paid-in capital		46,821			173,909
Accumulated earnings		124,680			69,316
Total Bluegreen Vacations Holding Corporation equity		171,660			243,433
Non-controlling interests		72,333			60,367
Total equity		243,993			303,800
Total liabilities and equity	$	1,398,385		$	1,210,512

BLUEGREEN VACATIONS HOLDING CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(In thousands, except share data)

For the Three Months Ended
December 31,

For the Years Ended
December 31,

2022

2021

2022

2021

Revenue:

Gross sales of VOIs

163,861

119,918

636,156

426,556

Provision for loan losses

(26,642

)

(21,275

)

(100,431

)

(72,788

)

Sales of VOIs

137,219

98,643

535,725

353,768

Fee-based sales commission revenue

15,473

31,400

72,647

128,321

Other fee-based services revenue

33,357

32,195

131,910

123,454

Cost reimbursements

22,444

18,207

77,394

69,066

Interest income

28,233

21,905

99,739

81,691

Other income, net

1,240

653

2,014

813

Total revenues

237,966

203,003

919,429

757,113

Costs and Expenses:

Cost of VOIs sold

13,797

9,829

58,665

29,504

Cost of other fee-based services

16,715

14,310

58,447

58,812

Cost reimbursements

22,443

18,208

77,394

69,066

Interest expense

14,018

8,057

42,953

35,329

Selling, general and administrative expenses

153,193