Although there are still a number of owners who are trying to get out of their timeshare contracts, the recovering economy is making it a favorable condition for this industry. The timeshare business is already showing a sales boost this year. One of these companies is the Bluegreen Corp which although the earnings were off 37% in the second quarter, it sales of its timeshare resorts expanded.
The Boca Raton-based company had a net income of $4.3 million, or 14 cents a share, on revenue of $107.4 million. In the same period last year, it posted a net income of $6.8 million, or 22 cents a share, on revenue of $90.1 million. The results in the second quarter of the year 2009 included a one-time tax benefit of $4.6 million.
The bulk of Bluegreen’s revenue growth came in sales of timeshare resorts, which increased 33% quarter-over-quarter. Bluegreen had 40 timeshare resorts and hotels under management as of June 30, which is up by three from a year ago. However, the sales of homes in Bluegreen Communities declined and made up a relatively small portion of the company’s revenue.
The company held $744.6 million in outstanding loans to Bluegreen timeshare buyers and as of June 30, 3.8% of that was past due by more than 30 days. As for its own debt, Bluegreen said it had two receivable loans that are set to expire near the end of August. Meanwhile, it is talking to lenders about renewing or extending those loans. The company also had $40.5 million of receivable-backed loans outstanding as of June 30 and $63.6 million in unrestricted cash. This year, businesses about vacation properties like timeshares shows a great improvement compared to the previous year. Bluegreen Corp. is one of those companies that shows an improvement in their timeshare resorts’ sales.