BBX Capital Corporation Reports Financial Results For the Fourth Quarter and Full Year, 2017

FORT LAUDERDALE, FL—(Marketwired – March 08, 2018) – BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB) (“BBX Capital” or the “Company”) reported today its financial results for the quarter and year ended December 31, 2017.

Selected highlights of BBX Capital's consolidated financial results include:

Fourth Quarter 2017 Compared to Fourth Quarter 2016:

  • Total consolidated revenues of $214.7 million vs. $198.5 million, an increase of 8.2%
  • Net income attributable to shareholders of $44.0 million vs. $4.9 million
  • Diluted earnings per share of $0.43 vs. $0.05
  • Benefit for income taxes of $37.3 million vs. a provision for income taxes of $12.5 million due to a decrease in net deferred tax liabilities as a result of the enactment of the Tax Cuts and Jobs Act (2)
  • Free cash flow of $19.6 million vs. $16.0 million (1)

Year Ended December 31, 2017 Compared to the Year Ended December 31, 2016:

  • Total consolidated revenues of $815.8 million vs. $767.3 million, an increase of 6.3%
  • Net income attributable to shareholders of $82.2 million vs. $28.4 million
  • Diluted earnings per share of $0.79 vs. $0.32
  • Benefit for income taxes of $7.2 million vs. a provision for income taxes of $36.4 million primarily due to a decrease in net deferred tax liabilities (2)
  • Free cash flow of $43.6 million vs. $68.2 million (1)

Balance Sheet as of December 31, 2017 Compared to December 31, 2016:

  • Total consolidated assets of $1.6 billion vs. $1.4 billion
  • Total shareholders' equity of $573.2 million vs. $454.6 million
  • Fully diluted book value per share of $5.52 vs. $4.22

(1) See the supplemental tables included in this release for a reconciliation of BBX Capital's cash flow from operating activities to free cash flow.

(2) The Company estimates that its effective combined federal and state income tax rate will decrease from 38% to a range of 30% to 32%.

Alan B. Levan, Chairman and Chief Executive Officer of BBX Capital, commented, “We are pleased with the accomplishments made at BBX Capital during 2017 and believe our progress reflects our goal of building a strong operating platform throughout our holdings and at the parent company level, and our goals of long–term growth and increasing shareholder value.

“2017 has been a momentous year for BBX Capital. After BBX Capital and I were cleared of any wrongdoing after years of litigation with the SEC in May 2017, our Class A Common Stock commenced trading on the New York Stock Exchange (“NYSE”) in July 2017, and BBX Capital and Bluegreen Vacations Corporation (“Bluegreen Vacations” or “Bluegreen”) successfully pursued an IPO of Bluegreen's common stock, which commenced trading on the NYSE under the ticker symbol 'BXG' in November 2017. These actions led to a momentous day when, on January 12, 2018, BBX Capital and Bluegreen rang both the Opening and Closing Bell of the NYSE, which is believed to have been a first time event on the Exchange. In addition, during 2017, we continued the expansion of our other operating verticals through the acquisition of IT'SUGAR in June 2017 and the commencement of our MOD Pizza franchise operations in the fourth quarter.

“BBX Capital's goal is to build long–term shareholder value as opposed to focusing on quarterly or annual earnings. Today, BBX Capital's investments include its 90% ownership interest in Bluegreen Vacations as well as investments made through its Real Estate and Middle Market Divisions. Since many of BBX Capital's assets do not generate income on a regular or predictable basis and the addition of stores in our operating companies as part of our growth strategy requires up–front expenses, our objective continues to be long–term growth in shareholder value as measured by increases in book value and intrinsic value over time.”

For more complete and detailed information regarding BBX Capital and its financial results, business, operations, investments and risks, please see BBX Capital's Annual Report on Form 10–K for the year ended December 31, 2017, which will be available on the SEC's website, https://www.sec.gov, and on BBX Capital's website, www.BBXCapital.com, upon filing with the SEC on or about March 9, 2018.

The following selected information relates to the operating activities of Bluegreen and BBX Capital's Real Estate and Middle Market Divisions.

Bluegreen Vacations – Selected Financial Data

Selected highlights of Bluegreen's financial results include:

Fourth Quarter 2017 Compared to Fourth Quarter 2016:

  • Sales of VOIs of $66.8 million vs. $69.5 million
  • System–wide sales of VOIs of $154.0 million vs. $146.0 million (1)
  • Other fee–based services revenue of $28.4 million vs. $25.0 million
  • Income before income taxes of $29.0 million vs. $37.6 million
  • Adjusted EBITDA of $35.6 million vs. $35.8 million (2)
  • Free cash flow of $27.6 million vs. $13.7 million (3)

Year Ended December 31, 2017 Compared to the Year Ended December 31, 2016:

  • Sales of VOIs of $239.7 million vs. $266.1 million
  • System–wide sales of VOIs of $616.7 million vs. $605.4 million (1)
  • Other fee–based services revenue of $111.8 million vs. $103.4 million
  • Income before income taxes of $135.3 million vs. $124.9 million. Income before income taxes for the year ended December 31, 2016 includes special bonuses totaling $10.0 million paid to certain employees
  • Adjusted EBITDA of $148.6 million vs. $137.9 million (2)
  • Free cash flow of $51.9 million vs. $92.3 million (3)

(1) See the supplemental tables included in this release for a reconciliation of Bluegreen's Sales of VOIs to System–wide sales of VOIs, net.
(2) See the supplemental tables included in this release for a reconciliation of Bluegreen's net income to Adjusted EBITDA.
(3) See the supplemental tables included in this release for a reconciliation of Bluegreen's cash flow from operating activities to free cash flow.

In addition to BBX Capital's Annual Report on Form 10–K for the year ended December 31, 2017, more complete and detailed information regarding Bluegreen Vacations and its financial results, business, operations and risks can be found in Bluegreen Vacations' press release reporting its financial results for the quarter and year ended December 31, 2017 and its Annual Report on Form 10–K for the year ended December 31, 2017, which is available on the SEC's website, https://www.sec.gov, and on Bluegreen's website, www.BluegreenVacations.com.

BBX Capital Real Estate – Selected Financial Data

Selected highlights of BBX Capital Real Estate's financial results include:

Fourth Quarter 2017 Compared to Fourth Quarter 2016:

  • Revenues of $2.2 million, which was consistent with the same period in 2016
  • Recoveries from previously charged off loans of $1.4 million vs. $1.5 million
  • Equity in earnings of unconsolidated real estate joint ventures of $4.9 million vs. $7.8 million

Year Ended December 31, 2017 Compared to the Year Ended December 31, 2016:

  • Revenues of $9.3 million vs. $14.7 million, a decrease of 36.7%
  • Recoveries from previously charged off loans of $7.5 million vs $20.5 million
  • Equity in earnings of unconsolidated real estate joint ventures of $14.5 million vs $13.6 million

While BBX Capital Real Estate's financial results for the year ended December 31, 2017 reflect the continued decline in the outstanding balance of its legacy assets acquired from BankAtlantic, it generated increased equity in earnings from its unconsolidated joint ventures during 2017 in connection with the completion of various development projects, including the CC Homes Bonterra joint venture, which sold the remaining homes in a 394 single–family home development during 2017, and the Gardens on Millenia retail joint venture, which sold a portion of its newly–developed retail center in December 2017. In 2017, BBX Capital Real Estate continued to focus on expanding its investments in real estate development assets primarily through new investments in real estate joint ventures, including three new investments in unconsolidated joint ventures for an aggregate investment of $7.7 million, and continued progress in its development of the Beacon Lake Community in St. Johns County, Florida. In February 2018, the first two developed land parcels were sold to homebuilders in the Beacon Lake Community development.

BBX Capital Middle Market – Selected Financial Data

BBX Capital Middle Market: Renin Holdings, LLC

Selected highlights of Renin Holdings, LLC's (“Renin”) financial results include:

Fourth Quarter 2017 Compared to Fourth Quarter 2016:

  • Trade sales of $17.7 million vs. $19.3 million, a decrease of 8.3%
  • Gross margin of $5.5 million vs. $5.8 million
  • Gross margin percentage of 31.2% vs. 29.9%
  • Income before income taxes of $1.1 million vs. $0.4 million
  • Adjusted EBITDA of $1.7 million vs $1.0 million (1)

Year Ended December 31, 2017 Compared to the Year Ended December 31, 2016:

  • Trade sales of $69.6 million vs. $65.2 million, an increase of 6.7%,
  • Gross margin of $20.3 million vs. $18.1 million
  • Gross margin percentage of 29.1% vs. 27.8%
  • Income before income taxes of $2.2 million vs. $0.9 million
  • Adjusted EBITDA of $4.6 million vs $1.9 million (1)

(1) See the supplemental tables included in this release for a reconciliation of Renin's net income to Adjusted EBITDA.

Renin's financial results for the year ended December 31, 2017 reflect the continued improvement in its operating performance, including increased sales of its barn door product and growth in e–commerce sales. During 2017, Renin also continued to increase operating efficiencies through the integration of its manufacturing facilities in the United States and Canada.

BBX Capital Middle Market: BBX Sweet Holdings

Selected highlights of BBX Sweet Holdings' financial results include:

Fourth Quarter 2017 Compared to Fourth Quarter 2016:

  • Trade sales of $28.0 million vs. $12.4 million, an increase of 125.8%
  • Gross margin of $10.0 million vs. $2.3 million
  • Gross margin percentage of 35.7% vs. 18.4%
  • Loss before taxes of ($8.1) million vs. loss of ($3.2) million

Year Ended December 31, 2017 Compared to the Year Ended December 31, 2016:

  • Trade sales of $72.9 million vs. $30.8 million, an increase of 136.7%
  • Gross margin of $24.6 million vs. $3.5 million
  • Gross margin percentage of 33.7% vs. 11.4%
  • Loss before taxes of ($16.8) million vs. loss of ($14.9) million

The significant increase in BBX Sweet Holdings' revenues and gross margins primarily resulted from its acquisition of IT'SUGAR, a specialty candy retailer with 95 locations in 26 states and Washington, DC, in June 2017. IT'SUGAR generated income before income taxes of $2.6 million from the acquisition date through December 2017. Due to anticipated costs of opening new stores in the future, the Company does not expect that IT'SUGAR will generate income before taxes on a regular basis, however, the acquisition of IT'SUGAR is expected to be cash flow accretive to the Company and has significantly expanded BBX Sweet Holdings' retail footprint in the confectionery industry.

The increase in BBX Sweet Holdings' loss before income taxes primarily resulted from the recognition of $5.2 million of non–cash impairment charges during the fourth quarter of 2017 associated with declining profits in its Orlando manufacturing operations, the elimination of unprofitable brands, and the exploration of strategic alternatives for its manufacturing facility in Utah.

BBX Capital Middle Market: MOD Pizza

Selected highlights of BBX Capital's MOD Pizza franchise operations during 2017 include:

  • Built infrastructure to support the Company's plans to open approximately 60 MOD franchised pizza restaurant locations throughout Florida over the next six years, including hiring the necessary personnel to establish initial store operations
  • Opened two restaurant locations during the fourth quarter of 2017
  • Continued to establish pipeline of restaurant locations, with an expectation to open eight to twelve locations during 2018

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 for how these terms are defined and for reconciliations of such measures to the most comparable GAAP financial measures.

About BBX Capital Corporation: BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB), is a Florida–based diversified holding company whose activities include its 90 percent ownership interest in Bluegreen Vacations Corporation (NYSE: BXG) as well as its real estate and middle market divisions. For additional information, please visit www.BBXCapital.com.

About Bluegreen Vacations Corporation: Bluegreen Vacations Corporation (NYSE: BXG), founded in 1966 and headquartered in Boca Raton, Florida, is a leading vacation ownership company that markets and sells vacation ownership interests (VOIs) and manages resorts in top leisure and urban destinations. Bluegreen's resort network includes 43 Club Resorts (resorts in which owners in the Bluegreen Vacation Club (“Vacation Club”) have the right to use most of the units in connection with their VOI ownership) and 24 Club Associate Resorts (resorts in which owners in its Vacation Club have the right to use a limited number of units in connection with their VOI ownership). Through Bluegreen's points–based system, the approximately 213,000 owners in its Vacation Club have the flexibility to stay at units available at any of its resorts and have access to almost 11,000 other hotels and resorts through partnerships and exchange networks. Bluegreen Vacations also offers a portfolio of comprehensive, fee–based resort management, financial, and sales and marketing services, to or on behalf of third parties. Bluegreen is 90% owned by BBX Capital Corporation. For further information, visit www.BluegreenVacations.com.

This press release contains forward–looking statements based largely on current expectations of BBX Capital or its subsidiaries that involve a number of risks and uncertainties. All opinions, forecasts, projections, future plans or other statements, other than statements of historical fact, are forward–looking statements. Forward–looking statements may be identified by the use of words or phrases such as “plans,” “believes,” “will,” “expects,” “anticipates,” “intends,” “estimates,” “our view,” “we see,” “would” and words and phrases of similar import. The forward–looking statements in this press release are also 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”). We can give no assurance that such expectations will prove to have been correct. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward–looking statements contained herein. Forward–looking statements are subject to a number of risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control. When considering forward–looking statements, the reader should keep in mind the risks, uncertainties and other cautionary statements made herein. The reader should not place undue reliance on any forward–looking statement, which speaks only as of the date made. This press release also contains information regarding the past performance of the Company, its subsidiaries and their respective investments and operations, and the reader should note that prior or current performance is not a guarantee or indication of future performance. Future results could differ materially as a result of a variety of risks and uncertainties. Some factors which may affect the accuracy of the forward–looking statements apply generally to the industries in which the Company operates, including the development, operation, management and investment in residential and commercial real estate, the resort development and vacation ownership industries in which Bluegreen operates, the home improvement industry in which Renin operates, and the sugar and confectionery industry in which BBX Sweet Holdings operates as well as the pizza franchise industry in which the Company has recently commenced activities. Risks and uncertainties include, without limitation, the risks and uncertainties affecting BBX Capital and its subsidiaries, and their respective results, operations, markets, products, services and business strategies, including risks associated with the ability to successfully implement currently anticipated plans and generate earnings, long term growth, and increased value; the performance of entities in which BBX Capital has made investments may not be profitable or perform as anticipated; BBX Capital is dependent upon dividends from its subsidiaries, principally Bluegreen, to fund its operations; BBX Capital's subsidiaries may not be in a position to pay dividends, dividend payments may be subject to certain restrictions, including restrictions contained in debt instruments, and may be subject to declaration by such subsidiary's board of directors or managers; the risks relating to acquisitions, including acquisitions in diverse activities, including the risk that they will not perform as expected and will adversely impact the Company's results; risks relating to the monetization of BBX Capital's legacy assets; and risks related to litigation and other legal proceedings involving BBX Capital and its subsidiaries. The Company's investment in Bluegreen Vacations Corporation exposes the Company to risks of Bluegreen's business and risks inherent in the vacation ownership industry, as well as other risks relating to the ownership of Bluegreen's common stock, including those described in Bluegreen's Annual Report on Form 10–K for the year ended December 31, 2017. In addition, with respect to BBX Capital's Real Estate and Middle Market Division, the risks and uncertainties include risks relating to the real estate market and real estate development, the risk that joint venture partners may not fulfill their obligations and the projects may not be developed as anticipated or be profitable, and contractual commitments may not be completed on the terms provided or at all; risks relating to acquisitions of operating businesses, including integration risks, risks regarding achieving profitability, that new personnel will not be successful, foreign currency transaction risk, goodwill and other intangible impairment risks; the risk that assets may be disposed of at a loss; and risks related to the Company's MOD Pizza franchise activities, including that stores may not be opened when or in the number expected and stores opened may not be profitable or otherwise perform as expected. Reference is also made to the other risks and uncertainties described in BBX Capital's Annual Report on Form 10–K for the year ended December 31, 2017. The Company cautions that the foregoing factors are not exclusive.

The following supplemental table represents BBX Capital's Consolidating Statement of Operations (unaudited) for the three months ended December 31, 2017 (in thousands):

    Reportable Segments                    
        BBX Capital               Corporate              
        Real         BBX Sweet     Expenses &           Segment  
    Bluegreen   Estate     Renin   Holdings     Other     Eliminations     Total  
Revenues:                                      
  Sales of VOIs $ 66,823                     66,823  
  Fee–based sales                          
    commission revenue   50,343                     50,343  
  Other fee–based services revenue   28,377                     28,377  
  Trade sales         17,739   27,979     245         45,963  
  Interest income   21,203   310       35     295     (1,200 )   20,643  
  Net gains on sales of assets     281                   281  
  Other revenue   432   1,624       51     402     (192 )   2,317  
  Total revenues   167,178   2,215     17,739   28,065     942     (1,392 )   214,747  
                                       
Costs and Expenses:                                      
  Cost of sales of VOIs   6,702                     6,702  
  Cost of other fee–based services   16,786                     16,786  
  Cost of trade sales         12,208   18,003     91         30,302  
  Interest expense   6,198   0     171   80     2,379     (1,200 )   7,628  
  Recoveries from loan losses, net     (1,397 )                 (1,397 )
  Asset impairments, net     368       5,512             5,880  
  Litigation costs and                                      
    penalty reimbursements               (1,450 )       (1,450 )
  Selling, general and                                      
    administrative expenses   108,455   3,112     4,356   12,598     11,261     (192 )   139,590  
  Total costs and expenses   138,141   2,083     16,735   36,193     12,281     (1,392 )   204,041  
                                         
  Equity in net earnings of                                      
    unconsolidated real                                      
    estate joint ventures     4,863                   4,863  
  Foreign exchange loss         119               119  
  Income (loss) before income taxes $ 29,037   4,995     1,123   (8,128 )   (11,339 )       15,688  

The following supplemental table represents BBX Capital's Consolidating Statement of Operations (unaudited) for the three months ended December 31, 2016 (in thousands):

    Reportable Segments                    
        BBX Capital                 Corporate              
        Real           BBX Sweet     Expenses &           Segment  
    Bluegreen   Estate     Renin     Holdings     Other     Eliminations     Total  
Revenues:                                         
  Sales of VOIs $ 69,488    –                     69,488  
  Fee–based sales                                         
  commission revenue   48,111    –                     48,111  
  Other fee–based services revenue   25,027    –                     25,027  
  Trade sales      –     19,303     12,403             31,706  
  Interest income   22,579    525         2     37     (2,000 )   21,143  
  Net gains on sales of assets      750                     750  
  Other revenue   1,127    930         1     495     (234 )   2,319  
  Total revenues   166,332    2,205     19,303     12,406     532     (2,234 )   198,544  
                                          
Costs and Expenses:                                         
  Cost of sales of VOIs   7,936    –                     7,936  
  Cost of other fee–based services   15,835    –                     15,835  
  Cost of trade sales      –     13,538     10,123             23,661  
  Interest expense   6,392    –     109     7     3,207     (2,000 )   7,715  
  Recoveries from loan losses, net      (1,529 )                   (1,529 )
  Asset impairments, net      612         2,352             2,964  
  Selling, general and                                         
    administrative expenses   98,521    2,567     5,149     3,081     19,831     (234 )   128,915  
  Total costs and expenses   128,684    1,650     18,796     15,563     23,038     (2,234 )   185,497  
                                            
  Equity in net earnings of                                         
    unconsolidated real                                         
    estate joint ventures      7,837                     7,837  
  Foreign exchange loss      –     (106 )               (106 )
    Income (loss) before income taxes $ 37,648    8,392     401     (3,157 )   (22,506 )   0     20,778  
                                          

The following supplemental table represents BBX Capital's Consolidating Statement of Operations (unaudited) for the year ended December 31, 2017 (in thousands):

    Reportable Segments                    
        BBX Capital                 Corporate              
        Real           BBX Sweet     Expenses &           Segment  
    Bluegreen   Estate     Renin     Holdings     Other     Eliminations     Total  
Revenues:                                        
  Sales of VOIs $ 239,662                       239,662  
  Fee–based sales                                        
  Fee–based sales                                        
  commission revenue   229,389                       229,389  
  Other fee–based services revenue   111,819                       111,819  
  Trade sales         69,648     72,905     245         142,798  
  Interest income   86,876   2,225         38     969     (6,400 )   83,708  
  Net gains on sales of assets     2,442                     2,442  
  Other revenue   312   4,647         74     1,480     (549 )   5,964  
  Total revenues   668,058   9,314     69,648     73,017     2,694     (6,949 )   815,782  
                                         
Costs and Expenses:                                        
  Cost of sales of VOIs   17,439                       17,439  
  Cost of other fee–based services   68,336                       68,336  
  Cost of trade sales         49,358     48,306     91         97,755  
  Interest expense   29,977       509     335     10,784     (6,400 )   35,205  
  Recoveries from loan losses, net     (7,495 )                   (7,495 )
  Asset impairments, net     1,646         5,785             7,431  
  Net gains on cancellation of                                        
    junior subordinated debentures                 (6,929 )       (6,929 )
  Litigation costs and                                        
    penalty reimbursements                 (13,169 )       (13,169 )
  Selling, general and                                        
    administrative expenses   416,970   11,113     17,408     35,374     57,809     (549 )   538,125  
  Total costs and expenses   532,722   5,264     67,275     89,800     48,586     (6,949 )   736,698  
                                           
  Equity in net earnings of                                        
    unconsolidated real                                        
    estate joint ventures     14,483                     14,483  
  Foreign exchange loss         (193 )               (193 )
    Income (loss) before income taxes $ 135,336   18,533     2,180     (16,783 )   (45,892 )       93,374  

The following supplemental table represents BBX Capital's Consolidating Statement of Operations (unaudited) for the year ended December 31, 2016 (in thousands):

    Reportable Segments                    
        BBX Capital               Corporate              
        Real         BBX Sweet     Expenses &           Segment  
    Bluegreen   Estate     Renin   Holdings     Other     Eliminations     Total  
Revenues:                                      
  Sales of VOIs $ 266,142                     266,142  
  Fee–based sales                                      
    commission revenue   201,829                     201,829  
  Other fee–based services revenue   103,448                     103,448  
  Trade sales         65,225   30,771             95,996  
  Interest income   89,510   3,606       10     620     (8,000 )   85,746  
  Net gains on sales of assets     6,076                   6,076  
  Other revenue   1,724   5,067       8     2,230     (971 )   8,058  
  Total revenues   662,653   14,749     65,225   30,789     2,850     (8,971 )   767,295  
                                       
Costs and Expenses:                                      
  Cost of sales of VOIs   27,346                     27,346  
  Cost of other fee–based services   64,479                     64,479  
  Cost of trade sales         47,088   27,253             74,341  
  Interest expense   30,853       313   409     12,462     (8,000 )   36,037  
  Recoveries from loan losses, net     (20,508 )                 (20,508 )
  Asset impairments, net       2,304       2,352             4,656  
  Selling, general and                                      
    administrative expenses   415,027   11,864     17,186   15,720     57,931     (971 )   516,757  
  Total costs and expenses   537,705   (6,340 )   64,587   45,734     70,393     (8,971 )   703,108  
                                       
  Equity in net earnings of                                      
    unconsolidated real                                      
    estate joint ventures     13,630                   13,630  
  Foreign exchange gain         219               219  
    Income (loss) before income taxes $ 124,948   34,719     857   (14,945 )   (67,543 )       78,036  

The following supplemental table presents Bluegreen's System–wide sales of VOIs for the three months and for the years ended December 31, 2017 and 2016 as well as a reconciliation of Bluegreen's Sales of VOIs to Bluegreen's System–wide sales of VOIs (unaudited) (in thousands):

   For the Three Months Ended   For the Years Ended
   December 31,   December 31,
    2017   2016   2017   2016
Sales of VOIs $ 66,823   69,488   239,662   266,142
Estimated uncollectible VOI                
  notes receivable   14,059   7,454   46,134   44,428
Gross Sales of VOI's   80,882   76,942   285,796   310,570
Plus: Fee–based sales   73,098   69,059   330,854   294,822
System–wide sales of VOIs, net $ 153,980   146,001   616,650   605,392

System–wide Sales of VOIs, net is a non–GAAP measure and represents all sales of VOIs, whether owned by Bluegreen or a third party immediately prior to the sale. Sales of VOIs owned by third parties are transacted as sales of VOIs in Bluegreen's Vacation Club through the same selling and marketing process they use to sell their VOI inventory. Bluegreen consider system–wide sales of VOIs, net to be an important operating measure because it reflects all sales of VOIs by their sales and marketing operations without regard to whether Bluegreen or a third party owned such VOI inventory at the time of sale. System–wide sales of VOIs, net should not be considered as an alternative to sales of VOIs or any other measure of financial performance derived in accordance with GAAP or to any other method of analyzing results as reported under GAAP.

The following supplemental table represents BBX Capital's free cash flow for the three months and for the years ended December 31, 2017 and 2016 as well as a reconciliation of cash flow from operating activities to free cash flow (unaudited) (in thousands):

     For the Three Months Ended   For the Years Ended
     December 31,   December 31,
      2017   2016   2017   2016
Cash flow from operating activities $ 27,442   20,055   65,599   81,163
  Capital expenditures for property and equipment   (7,887)   (4,010)   (22,045)   (12,939)
Free cash flow $ 19,555   16,045   43,554   68,224

The following supplemental table represents Bluegreen's free cash flow for the three months and for the years ended December 31, 2017 and 2016 as well as a reconciliation of cash flows from operating activities to free cash flow (unaudited) (in thousands):

     For the Three Months Ended   For the Years Ended
     December 31,   December 31,
      2017   2016   2017   2016
Cash flow from operating activities $ 32,304   16,265   65,970   101,868
  Capital expenditures for property and equipment   (4,735)   (2,593)   (14,115)   (9,605)
Free cash flow $ 27,569   13,672   51,855   92,263

Free cash flow is a non–GAAP measure and is defined as cash provided by operating activities less capital expenditures for property and equipment. The Company and Bluegreen focus on the generation of free cash flow. The Company considers free cash flow to be a useful supplemental measure of the Company's and Bluegreen's ability to generate cash flow from operations and is a supplemental measure of liquidity. Free cash flow should not be considered as an alternative to cash flow from operating activities as a measure of its liquidity. The Company's computation of free cash flow may differ from the methodology utilized by other companies. Investors are cautioned that the item excluded from free cash flow is a significant component in understanding and assessing the Company's financial performance.

The following supplemental table presents Bluegreen's EBITDA and Adjusted EBITDA, defined below, for the three months and for the years ended December 31, 2017 and 2016, as well as a reconciliation of EBITDA and Adjusted EBITDA to net income (unaudited) (in thousands):

     For the Three Months Ended   For the Years Ended
     December 31,   December 31,
      2017   2016   2017   2016
Net income $ 69,855   28,816   138,310   84,776
  (Benefit) provision for income taxes   (40,818)   8,830   (2,974)   40,172
  Income before income taxes   29,037   37,646   135,336   124,948
  Add/(Less):                
  Interest income (other than interest earned on VOI notes receivable)   (1,387)   (2,061)   (6,874)   (8,167)
  Interest expense   1,753   2,255   12,168   12,505
  Franchise Taxes   51   98   178   186
  Depreciation and Amortization   2,541   2,400   9,632   9,536
Bluegreen EBITDA   31,995   40,338   150,440   139,008
  EBITDA attributable to the noncontrolling                
  interest in Bluegreen/Big Cedar Vacations   (3,348)   (3,189)   (12,509)   (9,705)
  (Gain) loss on assets held–for–sale   2   (1,386)   46   (1,423)
  Corporate realignment costs   2,157     5,836  
  One–time payment to Bass Pro   4,781     4,781  
  One–time special bonus         10,000
Adjusted EBITDA $ 35,587   35,763   148,594   137,880

EBITDA is defined as earnings or net income, before taking into account interest income (excluding interest earned on VOI notes receivable), interest expense (excluding interest expense incurred on financings related to Bluegreen's receivable–backed notes payable), income and franchise taxes, depreciation and amortization. For purposes of the EBITDA calculation, no adjustments were made for interest income earned on Bluegreen's VOI notes receivable or the interest expense incurred on debt that is secured by such notes receivable because they are both considered to be part of the operations of Bluegreen's business.

Adjusted EBITDA is defined as EBITDA adjusted for amounts attributable to noncontrolling interest in Bluegreen/Big Cedar Vacations (in which Bluegreen has a 51% equity interest) and items that the Company believes are not representative of ongoing operating results.

The Company considers Bluegreen's EBITDA and Adjusted EBITDA to be an indicator of Bluegreen's operating performance, and it is used to measure Bluegreen's ability to service debt, fund capital expenditures and expand its business.

EBITDA is also used by companies, lenders, investors and others because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. Additionally, the tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provision for income taxes can vary considerably among companies. EBITDA also excludes depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. These differences can result in considerable variability in the relative costs of productive assets and the related depreciation and amortization expense among companies.

The Company considers Adjusted EBITDA to be a useful supplemental measure of Bluegreen's operating performance that facilitates the comparability of historical financial periods.

EBITDA and Adjusted EBITDA should not be considered as an alternative to net income as an indicator of the company's financial performance, or as an alternative to cash flow from operating activities as a measure of its liquidity. The Company's computation of EBITDA and Adjusted EBITDA may differ from the methodology utilized by other companies. Investors are cautioned that items excluded from EBITDA and Adjusted EBITDA are significant components in understanding and assessing the Company's financial performance.

The following supplemental table presents Renin's EBITDA and Adjusted EBITDA, defined below, for the three months and for the years ended December 31, 2017 and 2016, as well as a reconciliation of EBITDA and Adjusted EBITDA to Renin's net income (unaudited) (in thousands):

     For the Three Months Ended     For the Years Ended
     December 31,     December 31,
      2017   2016     2017   2016
Net income from Renin $ 885   401   $ 1,484   857
  Provision from income taxes   238       696  
Income before income taxes   1,123   401     2,180   857
  Add/(Less):                  
  Interest expense   171   154     509   396
  Depreciation and Amortization   539   354     1,713   818
EBITDA   1,833   909     4,402   2,071
  Foreign exchange (gain) loss   (119)   106     193   (219)
Adjusted EBITDA $ 1,714   1,015   $ 4,595   1,852

Renin's EBITDA is defined as its earnings, or net income, before taking into account interest expense, depreciation and amortization.

Renin's Adjusted EBITDA is defined as EBITDA adjusted for foreign exchange (gains) and losses.

The Company considers Renin's EBITDA to be an indicator of Renin's operating performance, and it is used to measure Renin's ability to service debt, fund capital expenditures and expand its business. EBITDA is also used by companies, lenders, investors and others because it excludes certain items that can vary widely across different industries or among companies within the same industry.

Renin's Adjusted EBITDA excludes foreign exchange gains and losses as exchange rates may vary significantly among companies.

The Company considers Adjusted EBITDA to be a useful supplemental measure of Renin's operating performance that facilitates the comparability of historical financial periods.

EBITDA and Adjusted EBITDA should not be considered as an alternative to income before income taxes as an indicator of Renin's financial performance, or as an alternative to cash flow from operating activities as a measure of its liquidity. The computation of Renin's EBITDA and Adjusted EBITDA may differ from the methodology utilized by other companies. Investors are cautioned that items excluded from EBITDA and Adjusted EBITDA are significant components in understanding and assessing financial performance.

BBX Capital Corporation Reports Financial Results For the Fourth Quarter and Full Year, 2017

FORT LAUDERDALE, FL—(Marketwired – March 08, 2018) – BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB) (“BBX Capital” or the “Company”) reported today its financial results for the quarter and year ended December 31, 2017.

Selected highlights of BBX Capital's consolidated financial results include:

Fourth Quarter 2017 Compared to Fourth Quarter 2016:

  • Total consolidated revenues of $214.7 million vs. $198.5 million, an increase of 8.2%
  • Net income attributable to shareholders of $44.0 million vs. $4.9 million
  • Diluted earnings per share of $0.43 vs. $0.05
  • Benefit for income taxes of $37.3 million vs. a provision for income taxes of $12.5 million due to a decrease in net deferred tax liabilities as a result of the enactment of the Tax Cuts and Jobs Act (2)
  • Free cash flow of $19.6 million vs. $16.0 million (1)

Year Ended December 31, 2017 Compared to the Year Ended December 31, 2016:

  • Total consolidated revenues of $815.8 million vs. $767.3 million, an increase of 6.3%
  • Net income attributable to shareholders of $82.2 million vs. $28.4 million
  • Diluted earnings per share of $0.79 vs. $0.32
  • Benefit for income taxes of $7.2 million vs. a provision for income taxes of $36.4 million primarily due to a decrease in net deferred tax liabilities (2)
  • Free cash flow of $43.6 million vs. $68.2 million (1)

Balance Sheet as of December 31, 2017 Compared to December 31, 2016:

  • Total consolidated assets of $1.6 billion vs. $1.4 billion
  • Total shareholders' equity of $573.2 million vs. $454.6 million
  • Fully diluted book value per share of $5.52 vs. $4.22

(1) See the supplemental tables included in this release for a reconciliation of BBX Capital's cash flow from operating activities to free cash flow.

(2) The Company estimates that its effective combined federal and state income tax rate will decrease from 38% to a range of 30% to 32%.

Alan B. Levan, Chairman and Chief Executive Officer of BBX Capital, commented, “We are pleased with the accomplishments made at BBX Capital during 2017 and believe our progress reflects our goal of building a strong operating platform throughout our holdings and at the parent company level, and our goals of long–term growth and increasing shareholder value.

“2017 has been a momentous year for BBX Capital. After BBX Capital and I were cleared of any wrongdoing after years of litigation with the SEC in May 2017, our Class A Common Stock commenced trading on the New York Stock Exchange (“NYSE”) in July 2017, and BBX Capital and Bluegreen Vacations Corporation (“Bluegreen Vacations” or “Bluegreen”) successfully pursued an IPO of Bluegreen's common stock, which commenced trading on the NYSE under the ticker symbol 'BXG' in November 2017. These actions led to a momentous day when, on January 12, 2018, BBX Capital and Bluegreen rang both the Opening and Closing Bell of the NYSE, which is believed to have been a first time event on the Exchange. In addition, during 2017, we continued the expansion of our other operating verticals through the acquisition of IT'SUGAR in June 2017 and the commencement of our MOD Pizza franchise operations in the fourth quarter.

“BBX Capital's goal is to build long–term shareholder value as opposed to focusing on quarterly or annual earnings. Today, BBX Capital's investments include its 90% ownership interest in Bluegreen Vacations as well as investments made through its Real Estate and Middle Market Divisions. Since many of BBX Capital's assets do not generate income on a regular or predictable basis and the addition of stores in our operating companies as part of our growth strategy requires up–front expenses, our objective continues to be long–term growth in shareholder value as measured by increases in book value and intrinsic value over time.”

For more complete and detailed information regarding BBX Capital and its financial results, business, operations, investments and risks, please see BBX Capital's Annual Report on Form 10–K for the year ended December 31, 2017, which will be available on the SEC's website, https://www.sec.gov, and on BBX Capital's website, www.BBXCapital.com, upon filing with the SEC on or about March 9, 2018.

The following selected information relates to the operating activities of Bluegreen and BBX Capital's Real Estate and Middle Market Divisions.

Bluegreen Vacations – Selected Financial Data

Selected highlights of Bluegreen's financial results include:

Fourth Quarter 2017 Compared to Fourth Quarter 2016:

  • Sales of VOIs of $66.8 million vs. $69.5 million
  • System–wide sales of VOIs of $154.0 million vs. $146.0 million (1)
  • Other fee–based services revenue of $28.4 million vs. $25.0 million
  • Income before income taxes of $29.0 million vs. $37.6 million
  • Adjusted EBITDA of $35.6 million vs. $35.8 million (2)
  • Free cash flow of $27.6 million vs. $13.7 million (3)

Year Ended December 31, 2017 Compared to the Year Ended December 31, 2016:

  • Sales of VOIs of $239.7 million vs. $266.1 million
  • System–wide sales of VOIs of $616.7 million vs. $605.4 million (1)
  • Other fee–based services revenue of $111.8 million vs. $103.4 million
  • Income before income taxes of $135.3 million vs. $124.9 million. Income before income taxes for the year ended December 31, 2016 includes special bonuses totaling $10.0 million paid to certain employees
  • Adjusted EBITDA of $148.6 million vs. $137.9 million (2)
  • Free cash flow of $51.9 million vs. $92.3 million (3)

(1) See the supplemental tables included in this release for a reconciliation of Bluegreen's Sales of VOIs to System–wide sales of VOIs, net.
(2) See the supplemental tables included in this release for a reconciliation of Bluegreen's net income to Adjusted EBITDA.
(3) See the supplemental tables included in this release for a reconciliation of Bluegreen's cash flow from operating activities to free cash flow.

In addition to BBX Capital's Annual Report on Form 10–K for the year ended December 31, 2017, more complete and detailed information regarding Bluegreen Vacations and its financial results, business, operations and risks can be found in Bluegreen Vacations' press release reporting its financial results for the quarter and year ended December 31, 2017 and its Annual Report on Form 10–K for the year ended December 31, 2017, which is available on the SEC's website, https://www.sec.gov, and on Bluegreen's website, www.BluegreenVacations.com.

BBX Capital Real Estate – Selected Financial Data

Selected highlights of BBX Capital Real Estate's financial results include:

Fourth Quarter 2017 Compared to Fourth Quarter 2016:

  • Revenues of $2.2 million, which was consistent with the same period in 2016
  • Recoveries from previously charged off loans of $1.4 million vs. $1.5 million
  • Equity in earnings of unconsolidated real estate joint ventures of $4.9 million vs. $7.8 million

Year Ended December 31, 2017 Compared to the Year Ended December 31, 2016:

  • Revenues of $9.3 million vs. $14.7 million, a decrease of 36.7%
  • Recoveries from previously charged off loans of $7.5 million vs $20.5 million
  • Equity in earnings of unconsolidated real estate joint ventures of $14.5 million vs $13.6 million

While BBX Capital Real Estate's financial results for the year ended December 31, 2017 reflect the continued decline in the outstanding balance of its legacy assets acquired from BankAtlantic, it generated increased equity in earnings from its unconsolidated joint ventures during 2017 in connection with the completion of various development projects, including the CC Homes Bonterra joint venture, which sold the remaining homes in a 394 single–family home development during 2017, and the Gardens on Millenia retail joint venture, which sold a portion of its newly–developed retail center in December 2017. In 2017, BBX Capital Real Estate continued to focus on expanding its investments in real estate development assets primarily through new investments in real estate joint ventures, including three new investments in unconsolidated joint ventures for an aggregate investment of $7.7 million, and continued progress in its development of the Beacon Lake Community in St. Johns County, Florida. In February 2018, the first two developed land parcels were sold to homebuilders in the Beacon Lake Community development.

BBX Capital Middle Market – Selected Financial Data

BBX Capital Middle Market: Renin Holdings, LLC

Selected highlights of Renin Holdings, LLC's (“Renin”) financial results include:

Fourth Quarter 2017 Compared to Fourth Quarter 2016:

  • Trade sales of $17.7 million vs. $19.3 million, a decrease of 8.3%
  • Gross margin of $5.5 million vs. $5.8 million
  • Gross margin percentage of 31.2% vs. 29.9%
  • Income before income taxes of $1.1 million vs. $0.4 million
  • Adjusted EBITDA of $1.7 million vs $1.0 million (1)

Year Ended December 31, 2017 Compared to the Year Ended December 31, 2016:

  • Trade sales of $69.6 million vs. $65.2 million, an increase of 6.7%,
  • Gross margin of $20.3 million vs. $18.1 million
  • Gross margin percentage of 29.1% vs. 27.8%
  • Income before income taxes of $2.2 million vs. $0.9 million
  • Adjusted EBITDA of $4.6 million vs $1.9 million (1)

(1) See the supplemental tables included in this release for a reconciliation of Renin's net income to Adjusted EBITDA.

Renin's financial results for the year ended December 31, 2017 reflect the continued improvement in its operating performance, including increased sales of its barn door product and growth in e–commerce sales. During 2017, Renin also continued to increase operating efficiencies through the integration of its manufacturing facilities in the United States and Canada.

BBX Capital Middle Market: BBX Sweet Holdings

Selected highlights of BBX Sweet Holdings' financial results include:

Fourth Quarter 2017 Compared to Fourth Quarter 2016:

  • Trade sales of $28.0 million vs. $12.4 million, an increase of 125.8%
  • Gross margin of $10.0 million vs. $2.3 million
  • Gross margin percentage of 35.7% vs. 18.4%
  • Loss before taxes of ($8.1) million vs. loss of ($3.2) million

Year Ended December 31, 2017 Compared to the Year Ended December 31, 2016:

  • Trade sales of $72.9 million vs. $30.8 million, an increase of 136.7%
  • Gross margin of $24.6 million vs. $3.5 million
  • Gross margin percentage of 33.7% vs. 11.4%
  • Loss before taxes of ($16.8) million vs. loss of ($14.9) million

The significant increase in BBX Sweet Holdings' revenues and gross margins primarily resulted from its acquisition of IT'SUGAR, a specialty candy retailer with 95 locations in 26 states and Washington, DC, in June 2017. IT'SUGAR generated income before income taxes of $2.6 million from the acquisition date through December 2017. Due to anticipated costs of opening new stores in the future, the Company does not expect that IT'SUGAR will generate income before taxes on a regular basis, however, the acquisition of IT'SUGAR is expected to be cash flow accretive to the Company and has significantly expanded BBX Sweet Holdings' retail footprint in the confectionery industry.

The increase in BBX Sweet Holdings' loss before income taxes primarily resulted from the recognition of $5.2 million of non–cash impairment charges during the fourth quarter of 2017 associated with declining profits in its Orlando manufacturing operations, the elimination of unprofitable brands, and the exploration of strategic alternatives for its manufacturing facility in Utah.

BBX Capital Middle Market: MOD Pizza

Selected highlights of BBX Capital's MOD Pizza franchise operations during 2017 include:

  • Built infrastructure to support the Company's plans to open approximately 60 MOD franchised pizza restaurant locations throughout Florida over the next six years, including hiring the necessary personnel to establish initial store operations
  • Opened two restaurant locations during the fourth quarter of 2017
  • Continued to establish pipeline of restaurant locations, with an expectation to open eight to twelve locations during 2018

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 for how these terms are defined and for reconciliations of such measures to the most comparable GAAP financial measures.

About BBX Capital Corporation: BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB), is a Florida–based diversified holding company whose activities include its 90 percent ownership interest in Bluegreen Vacations Corporation (NYSE: BXG) as well as its real estate and middle market divisions. For additional information, please visit www.BBXCapital.com.

About Bluegreen Vacations Corporation: Bluegreen Vacations Corporation (NYSE: BXG), founded in 1966 and headquartered in Boca Raton, Florida, is a leading vacation ownership company that markets and sells vacation ownership interests (VOIs) and manages resorts in top leisure and urban destinations. Bluegreen's resort network includes 43 Club Resorts (resorts in which owners in the Bluegreen Vacation Club (“Vacation Club”) have the right to use most of the units in connection with their VOI ownership) and 24 Club Associate Resorts (resorts in which owners in its Vacation Club have the right to use a limited number of units in connection with their VOI ownership). Through Bluegreen's points–based system, the approximately 213,000 owners in its Vacation Club have the flexibility to stay at units available at any of its resorts and have access to almost 11,000 other hotels and resorts through partnerships and exchange networks. Bluegreen Vacations also offers a portfolio of comprehensive, fee–based resort management, financial, and sales and marketing services, to or on behalf of third parties. Bluegreen is 90% owned by BBX Capital Corporation. For further information, visit www.BluegreenVacations.com.

This press release contains forward–looking statements based largely on current expectations of BBX Capital or its subsidiaries that involve a number of risks and uncertainties. All opinions, forecasts, projections, future plans or other statements, other than statements of historical fact, are forward–looking statements. Forward–looking statements may be identified by the use of words or phrases such as “plans,” “believes,” “will,” “expects,” “anticipates,” “intends,” “estimates,” “our view,” “we see,” “would” and words and phrases of similar import. The forward–looking statements in this press release are also 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”). We can give no assurance that such expectations will prove to have been correct. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward–looking statements contained herein. Forward–looking statements are subject to a number of risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control. When considering forward–looking statements, the reader should keep in mind the risks, uncertainties and other cautionary statements made herein. The reader should not place undue reliance on any forward–looking statement, which speaks only as of the date made. This press release also contains information regarding the past performance of the Company, its subsidiaries and their respective investments and operations, and the reader should note that prior or current performance is not a guarantee or indication of future performance. Future results could differ materially as a result of a variety of risks and uncertainties. Some factors which may affect the accuracy of the forward–looking statements apply generally to the industries in which the Company operates, including the development, operation, management and investment in residential and commercial real estate, the resort development and vacation ownership industries in which Bluegreen operates, the home improvement industry in which Renin operates, and the sugar and confectionery industry in which BBX Sweet Holdings operates as well as the pizza franchise industry in which the Company has recently commenced activities. Risks and uncertainties include, without limitation, the risks and uncertainties affecting BBX Capital and its subsidiaries, and their respective results, operations, markets, products, services and business strategies, including risks associated with the ability to successfully implement currently anticipated plans and generate earnings, long term growth, and increased value; the performance of entities in which BBX Capital has made investments may not be profitable or perform as anticipated; BBX Capital is dependent upon dividends from its subsidiaries, principally Bluegreen, to fund its operations; BBX Capital's subsidiaries may not be in a position to pay dividends, dividend payments may be subject to certain restrictions, including restrictions contained in debt instruments, and may be subject to declaration by such subsidiary's board of directors or managers; the risks relating to acquisitions, including acquisitions in diverse activities, including the risk that they will not perform as expected and will adversely impact the Company's results; risks relating to the monetization of BBX Capital's legacy assets; and risks related to litigation and other legal proceedings involving BBX Capital and its subsidiaries. The Company's investment in Bluegreen Vacations Corporation exposes the Company to risks of Bluegreen's business and risks inherent in the vacation ownership industry, as well as other risks relating to the ownership of Bluegreen's common stock, including those described in Bluegreen's Annual Report on Form 10–K for the year ended December 31, 2017. In addition, with respect to BBX Capital's Real Estate and Middle Market Division, the risks and uncertainties include risks relating to the real estate market and real estate development, the risk that joint venture partners may not fulfill their obligations and the projects may not be developed as anticipated or be profitable, and contractual commitments may not be completed on the terms provided or at all; risks relating to acquisitions of operating businesses, including integration risks, risks regarding achieving profitability, that new personnel will not be successful, foreign currency transaction risk, goodwill and other intangible impairment risks; the risk that assets may be disposed of at a loss; and risks related to the Company's MOD Pizza franchise activities, including that stores may not be opened when or in the number expected and stores opened may not be profitable or otherwise perform as expected. Reference is also made to the other risks and uncertainties described in BBX Capital's Annual Report on Form 10–K for the year ended December 31, 2017. The Company cautions that the foregoing factors are not exclusive.

The following supplemental table represents BBX Capital's Consolidating Statement of Operations (unaudited) for the three months ended December 31, 2017 (in thousands):

    Reportable Segments                    
        BBX Capital               Corporate              
        Real         BBX Sweet     Expenses &           Segment  
    Bluegreen   Estate     Renin   Holdings     Other     Eliminations     Total  
Revenues:                                      
  Sales of VOIs $ 66,823                     66,823  
  Fee–based sales                          
    commission revenue   50,343                     50,343  
  Other fee–based services revenue   28,377                     28,377  
  Trade sales         17,739   27,979     245         45,963  
  Interest income   21,203   310       35     295     (1,200 )   20,643  
  Net gains on sales of assets     281                   281  
  Other revenue   432   1,624       51     402     (192 )   2,317  
  Total revenues   167,178   2,215     17,739   28,065     942     (1,392 )   214,747  
                                       
Costs and Expenses:                                      
  Cost of sales of VOIs   6,702                     6,702  
  Cost of other fee–based services   16,786                     16,786  
  Cost of trade sales         12,208   18,003     91         30,302  
  Interest expense   6,198   0     171   80     2,379     (1,200 )   7,628  
  Recoveries from loan losses, net     (1,397 )                 (1,397 )
  Asset impairments, net     368       5,512             5,880  
  Litigation costs and                                      
    penalty reimbursements               (1,450 )       (1,450 )
  Selling, general and                                      
    administrative expenses   108,455   3,112     4,356   12,598     11,261     (192 )   139,590  
  Total costs and expenses   138,141   2,083     16,735   36,193     12,281     (1,392 )   204,041  
                                         
  Equity in net earnings of                                      
    unconsolidated real                                      
    estate joint ventures     4,863                   4,863  
  Foreign exchange loss         119               119  
  Income (loss) before income taxes $ 29,037   4,995     1,123   (8,128 )   (11,339 )       15,688  

The following supplemental table represents BBX Capital's Consolidating Statement of Operations (unaudited) for the three months ended December 31, 2016 (in thousands):

    Reportable Segments                    
        BBX Capital                 Corporate              
        Real           BBX Sweet     Expenses &           Segment  
    Bluegreen   Estate     Renin     Holdings     Other     Eliminations     Total  
Revenues:                                         
  Sales of VOIs $ 69,488    –                     69,488  
  Fee–based sales                                         
  commission revenue   48,111    –                     48,111  
  Other fee–based services revenue   25,027    –                     25,027  
  Trade sales      –     19,303     12,403             31,706  
  Interest income   22,579    525         2     37     (2,000 )   21,143  
  Net gains on sales of assets      750                     750  
  Other revenue   1,127    930         1     495     (234 )   2,319  
  Total revenues   166,332    2,205     19,303     12,406     532     (2,234 )   198,544  
                                          
Costs and Expenses:                                         
  Cost of sales of VOIs   7,936    –                     7,936  
  Cost of other fee–based services   15,835    –                     15,835  
  Cost of trade sales      –     13,538     10,123             23,661  
  Interest expense   6,392    –     109     7     3,207     (2,000 )   7,715  
  Recoveries from loan losses, net      (1,529 )                   (1,529 )
  Asset impairments, net      612         2,352             2,964  
  Selling, general and                                         
    administrative expenses   98,521    2,567     5,149     3,081     19,831     (234 )   128,915  
  Total costs and expenses   128,684    1,650     18,796     15,563     23,038     (2,234 )   185,497  
                                            
  Equity in net earnings of                                         
    unconsolidated real                                         
    estate joint ventures      7,837                     7,837  
  Foreign exchange loss      –     (106 )               (106 )
    Income (loss) before income taxes $ 37,648    8,392     401     (3,157 )   (22,506 )   0     20,778  
                                          

The following supplemental table represents BBX Capital's Consolidating Statement of Operations (unaudited) for the year ended December 31, 2017 (in thousands):

    Reportable Segments                    
        BBX Capital                 Corporate              
        Real           BBX Sweet     Expenses &           Segment  
    Bluegreen   Estate     Renin     Holdings     Other     Eliminations     Total  
Revenues:                                        
  Sales of VOIs $ 239,662                       239,662  
  Fee–based sales                                        
  Fee–based sales                                        
  commission revenue   229,389                       229,389  
  Other fee–based services revenue   111,819                       111,819  
  Trade sales         69,648     72,905     245         142,798  
  Interest income   86,876   2,225         38     969     (6,400 )   83,708  
  Net gains on sales of assets     2,442                     2,442  
  Other revenue   312   4,647         74     1,480     (549 )   5,964  
  Total revenues   668,058   9,314     69,648     73,017     2,694     (6,949 )   815,782  
                                         
Costs and Expenses:                                        
  Cost of sales of VOIs   17,439                       17,439  
  Cost of other fee–based services   68,336                       68,336  
  Cost of trade sales         49,358     48,306     91         97,755  
  Interest expense   29,977       509     335     10,784     (6,400 )   35,205  
  Recoveries from loan losses, net     (7,495 )                   (7,495 )
  Asset impairments, net     1,646         5,785             7,431  
  Net gains on cancellation of                                        
    junior subordinated debentures                 (6,929 )       (6,929 )
  Litigation costs and                                        
    penalty reimbursements                 (13,169 )       (13,169 )
  Selling, general and                                        
    administrative expenses   416,970   11,113     17,408     35,374     57,809     (549 )   538,125  
  Total costs and expenses   532,722   5,264     67,275     89,800     48,586     (6,949 )   736,698  
                                           
  Equity in net earnings of                                        
    unconsolidated real                                        
    estate joint ventures     14,483                     14,483  
  Foreign exchange loss         (193 )               (193 )
    Income (loss) before income taxes $ 135,336   18,533     2,180     (16,783 )   (45,892 )       93,374  

The following supplemental table represents BBX Capital's Consolidating Statement of Operations (unaudited) for the year ended December 31, 2016 (in thousands):

    Reportable Segments                    
        BBX Capital               Corporate              
        Real         BBX Sweet     Expenses &           Segment  
    Bluegreen   Estate     Renin   Holdings     Other     Eliminations     Total  
Revenues:                                      
  Sales of VOIs $ 266,142                     266,142  
  Fee–based sales                                      
    commission revenue   201,829                     201,829  
  Other fee–based services revenue   103,448                     103,448  
  Trade sales         65,225   30,771             95,996  
  Interest income   89,510   3,606       10     620     (8,000 )   85,746  
  Net gains on sales of assets     6,076                   6,076  
  Other revenue   1,724   5,067       8     2,230     (971 )   8,058  
  Total revenues   662,653   14,749     65,225   30,789     2,850     (8,971 )   767,295  
                                       
Costs and Expenses:                                      
  Cost of sales of VOIs   27,346                     27,346  
  Cost of other fee–based services   64,479                     64,479  
  Cost of trade sales         47,088   27,253             74,341  
  Interest expense   30,853       313   409     12,462     (8,000 )   36,037  
  Recoveries from loan losses, net     (20,508 )                 (20,508 )
  Asset impairments, net       2,304       2,352             4,656  
  Selling, general and                                      
    administrative expenses   415,027   11,864     17,186   15,720     57,931     (971 )   516,757  
  Total costs and expenses   537,705   (6,340 )   64,587   45,734     70,393     (8,971 )   703,108  
                                       
  Equity in net earnings of                                      
    unconsolidated real                                      
    estate joint ventures     13,630                   13,630  
  Foreign exchange gain         219               219  
    Income (loss) before income taxes $ 124,948   34,719     857   (14,945 )   (67,543 )       78,036  

The following supplemental table presents Bluegreen's System–wide sales of VOIs for the three months and for the years ended December 31, 2017 and 2016 as well as a reconciliation of Bluegreen's Sales of VOIs to Bluegreen's System–wide sales of VOIs (unaudited) (in thousands):

   For the Three Months Ended   For the Years Ended
   December 31,   December 31,
    2017   2016   2017   2016
Sales of VOIs $ 66,823   69,488   239,662   266,142
Estimated uncollectible VOI                
  notes receivable   14,059   7,454   46,134   44,428
Gross Sales of VOI's   80,882   76,942   285,796   310,570
Plus: Fee–based sales   73,098   69,059   330,854   294,822
System–wide sales of VOIs, net $ 153,980   146,001   616,650   605,392

System–wide Sales of VOIs, net is a non–GAAP measure and represents all sales of VOIs, whether owned by Bluegreen or a third party immediately prior to the sale. Sales of VOIs owned by third parties are transacted as sales of VOIs in Bluegreen's Vacation Club through the same selling and marketing process they use to sell their VOI inventory. Bluegreen consider system–wide sales of VOIs, net to be an important operating measure because it reflects all sales of VOIs by their sales and marketing operations without regard to whether Bluegreen or a third party owned such VOI inventory at the time of sale. System–wide sales of VOIs, net should not be considered as an alternative to sales of VOIs or any other measure of financial performance derived in accordance with GAAP or to any other method of analyzing results as reported under GAAP.

The following supplemental table represents BBX Capital's free cash flow for the three months and for the years ended December 31, 2017 and 2016 as well as a reconciliation of cash flow from operating activities to free cash flow (unaudited) (in thousands):

     For the Three Months Ended   For the Years Ended
     December 31,   December 31,
      2017   2016   2017   2016
Cash flow from operating activities $ 27,442   20,055   65,599   81,163
  Capital expenditures for property and equipment   (7,887)   (4,010)   (22,045)   (12,939)
Free cash flow $ 19,555   16,045   43,554   68,224

The following supplemental table represents Bluegreen's free cash flow for the three months and for the years ended December 31, 2017 and 2016 as well as a reconciliation of cash flows from operating activities to free cash flow (unaudited) (in thousands):

     For the Three Months Ended   For the Years Ended
     December 31,   December 31,
      2017   2016   2017   2016
Cash flow from operating activities $ 32,304   16,265   65,970   101,868
  Capital expenditures for property and equipment   (4,735)   (2,593)   (14,115)   (9,605)
Free cash flow $ 27,569   13,672   51,855   92,263

Free cash flow is a non–GAAP measure and is defined as cash provided by operating activities less capital expenditures for property and equipment. The Company and Bluegreen focus on the generation of free cash flow. The Company considers free cash flow to be a useful supplemental measure of the Company's and Bluegreen's ability to generate cash flow from operations and is a supplemental measure of liquidity. Free cash flow should not be considered as an alternative to cash flow from operating activities as a measure of its liquidity. The Company's computation of free cash flow may differ from the methodology utilized by other companies. Investors are cautioned that the item excluded from free cash flow is a significant component in understanding and assessing the Company's financial performance.

The following supplemental table presents Bluegreen's EBITDA and Adjusted EBITDA, defined below, for the three months and for the years ended December 31, 2017 and 2016, as well as a reconciliation of EBITDA and Adjusted EBITDA to net income (unaudited) (in thousands):

     For the Three Months Ended   For the Years Ended
     December 31,   December 31,
      2017   2016   2017   2016
Net income $ 69,855   28,816   138,310   84,776
  (Benefit) provision for income taxes   (40,818)   8,830   (2,974)   40,172
  Income before income taxes   29,037   37,646   135,336   124,948
  Add/(Less):                
  Interest income (other than interest earned on VOI notes receivable)   (1,387)   (2,061)   (6,874)   (8,167)
  Interest expense   1,753   2,255   12,168   12,505
  Franchise Taxes   51   98   178   186
  Depreciation and Amortization   2,541   2,400   9,632   9,536
Bluegreen EBITDA   31,995   40,338   150,440   139,008
  EBITDA attributable to the noncontrolling                
  interest in Bluegreen/Big Cedar Vacations   (3,348)   (3,189)   (12,509)   (9,705)
  (Gain) loss on assets held–for–sale   2   (1,386)   46   (1,423)
  Corporate realignment costs   2,157     5,836  
  One–time payment to Bass Pro   4,781     4,781  
  One–time special bonus         10,000
Adjusted EBITDA $ 35,587   35,763   148,594   137,880

EBITDA is defined as earnings or net income, before taking into account interest income (excluding interest earned on VOI notes receivable), interest expense (excluding interest expense incurred on financings related to Bluegreen's receivable–backed notes payable), income and franchise taxes, depreciation and amortization. For purposes of the EBITDA calculation, no adjustments were made for interest income earned on Bluegreen's VOI notes receivable or the interest expense incurred on debt that is secured by such notes receivable because they are both considered to be part of the operations of Bluegreen's business.

Adjusted EBITDA is defined as EBITDA adjusted for amounts attributable to noncontrolling interest in Bluegreen/Big Cedar Vacations (in which Bluegreen has a 51% equity interest) and items that the Company believes are not representative of ongoing operating results.

The Company considers Bluegreen's EBITDA and Adjusted EBITDA to be an indicator of Bluegreen's operating performance, and it is used to measure Bluegreen's ability to service debt, fund capital expenditures and expand its business.

EBITDA is also used by companies, lenders, investors and others because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. Additionally, the tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provision for income taxes can vary considerably among companies. EBITDA also excludes depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. These differences can result in considerable variability in the relative costs of productive assets and the related depreciation and amortization expense among companies.

The Company considers Adjusted EBITDA to be a useful supplemental measure of Bluegreen's operating performance that facilitates the comparability of historical financial periods.

EBITDA and Adjusted EBITDA should not be considered as an alternative to net income as an indicator of the company's financial performance, or as an alternative to cash flow from operating activities as a measure of its liquidity. The Company's computation of EBITDA and Adjusted EBITDA may differ from the methodology utilized by other companies. Investors are cautioned that items excluded from EBITDA and Adjusted EBITDA are significant components in understanding and assessing the Company's financial performance.

The following supplemental table presents Renin's EBITDA and Adjusted EBITDA, defined below, for the three months and for the years ended December 31, 2017 and 2016, as well as a reconciliation of EBITDA and Adjusted EBITDA to Renin's net income (unaudited) (in thousands):

     For the Three Months Ended     For the Years Ended
     December 31,     December 31,
      2017   2016     2017   2016
Net income from Renin $ 885   401   $ 1,484   857
  Provision from income taxes   238       696  
Income before income taxes   1,123   401     2,180   857
  Add/(Less):                  
  Interest expense   171   154     509   396
  Depreciation and Amortization   539   354     1,713   818
EBITDA   1,833   909     4,402   2,071
  Foreign exchange (gain) loss   (119)   106     193   (219)
Adjusted EBITDA $ 1,714   1,015   $ 4,595   1,852

Renin's EBITDA is defined as its earnings, or net income, before taking into account interest expense, depreciation and amortization.

Renin's Adjusted EBITDA is defined as EBITDA adjusted for foreign exchange (gains) and losses.

The Company considers Renin's EBITDA to be an indicator of Renin's operating performance, and it is used to measure Renin's ability to service debt, fund capital expenditures and expand its business. EBITDA is also used by companies, lenders, investors and others because it excludes certain items that can vary widely across different industries or among companies within the same industry.

Renin's Adjusted EBITDA excludes foreign exchange gains and losses as exchange rates may vary significantly among companies.

The Company considers Adjusted EBITDA to be a useful supplemental measure of Renin's operating performance that facilitates the comparability of historical financial periods.

EBITDA and Adjusted EBITDA should not be considered as an alternative to income before income taxes as an indicator of Renin's financial performance, or as an alternative to cash flow from operating activities as a measure of its liquidity. The computation of Renin's EBITDA and Adjusted EBITDA may differ from the methodology utilized by other companies. Investors are cautioned that items excluded from EBITDA and Adjusted EBITDA are significant components in understanding and assessing financial performance.