FORT LAUDERDALE, Fla., May 10 /PRNewswire-FirstCall/ -- BFC
Financial Corporation (NYSE:BFF) ("BFC" or "the Company"), a
diversified holding company that invests in and acquires operating
businesses in a variety of industries, today announced financial
results for the quarter ended March 31, 2007. Since BFC is a
holding company with limited operations, BFC's results primarily
reflect the earnings of the companies in which it has its principal
investments. For the first quarter of 2007, BFC's net loss
available to common shareholders was ($715,000) compared with a net
loss available to common shareholders of ($487,000) incurred in the
corresponding quarter of 2006. The diluted loss per share was
($0.02) in the first quarter of 2007, compared to a diluted loss
per share of ($0.02) in the corresponding quarter of 2006. The
Company's results for the period reflect lower earnings from its
principal holdings, BankAtlantic Bancorp (NYSE:BBX) and Levitt
Corporation (NYSE:LEV). Both companies experienced challenging
conditions in their respective markets. The adverse market
conditions in the homebuilding industry, particularly in its key
Florida market, impacted Levitt Corporation's ("Levitt") results;
while at BankAtlantic Bancorp, higher operating expenses associated
with BankAtlantic's store expansion initiatives, increased loan
reserves, reduced growth of earning assets and compressed net
interest margin all combined to reduce financial performance.
Significant Corporate Transaction Proposed: On January 30, 2007, we
entered into a merger agreement with Levitt, which, if the
transactions contemplated by the merger agreement are completed,
will result in Levitt becoming our wholly-owned subsidiary. We
currently own approximately 16.6% of Levitt's common stock,
representing 52.9% of the aggregate voting control of Levitt. If
the merger is consummated, Levitt's shareholders (other than us and
shareholders who exercise their appraisal rights) will receive 2.27
shares of our Class A Common Stock for each share of Levitt Class A
Common Stock they own. The closing of the merger is subject to a
number of conditions, including the affirmative vote of the holders
of a majority of the outstanding shares of Levitt Class A Common
Stock as well as the affirmative vote of the holders of a majority
of the shares of Levitt Class A Common Stock actually voted on the
merger not counting the votes of BFC and certain other shareholders
of Levitt. There is no assurance that the merger will be
consummated. BankAtlantic Bancorp's Sale of Ryan Beck Completed: On
February 28, 2007, BFC's subsidiary, BankAtlantic Bancorp completed
the sale of its wholly-owned subsidiary, Ryan Beck Holdings, Inc.
and its subsidiaries to Stifel Financial Corporation (NYSE:SF). As
a consequence of the sale, the results of operations of Ryan Beck
are reported as discontinued operations in BankAtlantic Bancorp's
and BFC's financial statements for all periods. The results of
BankAtlantic Bancorp, Levitt Corporation, Stifel Financial
Corporation, Bluegreen Corporation and Benihana, Inc., are fully
discussed in press releases available on the websites of all five
companies, at the following links:
http://www.bankatlanticbancorp.com/
http://www.levittcorporation.com/ http://www.stifel.com/
http://www.bluegreencorp.com/ http://www.benihana.com/ Segment
Income: The following table shows net income (loss) for each
segment and earnings (loss) per share including the items discussed
above for the three ended March 31, 2007 and 2006 (in thousands,
except per share data): Three Months Ended March 31, 2007 2006 BFC
Activities (1,313) (1,723) Financial Services (2,204) 8,022
Homebuilding & real estate development 1,250 (660) Income
before noncontrolling interest And discontinued operations (2,267)
5,639 Non-controlling interest (687) 5,729 Income (loss) from
continuing operations (1,580) (90) Discontinued operations 1,053
(209) Net loss (527) (299) 5% Preferred Stock dividends (188) (188)
Net income (loss) allocable to common shareholders $ (715) $ (487)
Basic (loss) earnings per share from continuing operations $ (0.05)
$ (0.01) Basic earnings per share from discontinued operations $
0.03 $ - Basic (loss) per common share (0.02) (0.01) Diluted
earnings (loss) per share from continuing operations (0.05) (0.01)
Diluted earnings (loss) per share from discontinued operations $
0.03 $ (0.01) Diluted (loss) per common share (0.02) (0.02) Basic
weighted average number of common shares outstanding 33,444 32,692
Diluted weighted average number of common and common equivalent
shares outstanding 33,444 32,692 -- The "BFC Activities" segment
includes BFC's real estate owned, loans receivable that relate to
previously owned properties, its investment in Benihana Convertible
Preferred Stock and other securities and investments, including the
operations of its wholly-owned subsidiary Cypress Creek Capital,
BFC's overhead and interest expense and the financial results of a
venture partnership which BFC controls. Since BFC is a holding
company whose principal activities consist of managing investments
and seeking and evaluating potential new investments, BFC itself
has no significant direct revenue or cash-generating operations.
Accordingly, the "BFC Activities" segment will normally reflect a
loss as the current amount of dividends; interest and fees from
investments do not currently cover BFC parent company operating
costs. -- The "Financial Services" segment includes BankAtlantic
Bancorp and its subsidiary, BankAtlantic. -- The "Homebuilding
& Real Estate Development" segment includes Levitt Corporation
and its subsidiaries, Levitt and Sons(TM) and Core Communities, and
Levitt's investment in Bluegreen. -- "Noncontrolling Interest" is
an accounting term for that portion of a consolidated entity that
is owned by others. Both BankAtlantic Bancorp and Levitt
Corporation are consolidated in BFC's financial statements because
of BFC's voting control ownership position in each of those
companies, even though BFC's equity ownership is less than a
majority in each entity. At March 31, 2007, BFC owned 22.1% of the
economic interest and held 55.0% of the voting control of
BankAtlantic Bancorp and 16.6% of the economic interest and 52.9%
of the voting control of Levitt Corporation. Shareholders' Equity
or Book Value: Shareholders' equity or book value decreased from
$177.6 million as of December 31, 2006 to $176.8 million as of
March 31, 2007. This decrease was primarily due to the net loss for
the quarter, the effects of subsidiaries' capital transactions,
other comprehensive loss and cash dividends on our 5% Preferred
Stock. The decrease in shareholders' equity was partially offset by
the cumulative effect adjustment upon adoption of FASB
Interpretation No. 48 and share-based compensation related to stock
options and restricted stock. Market Value of BankAtlantic Bancorp,
Levitt Corporation and Benihana, Inc.: Our holdings include 13.2
million shares of common stock, or 22.1%, of BankAtlantic Bancorp
and 3.3 million shares of common stock, or 16.6%, of Levitt
Corporation. The market value of our holdings in these two
companies, based upon NYSE closing prices, which will fluctuate
from time to time, was $174.9 million at March 30, 2007. BFC also
owns 800,000 shares of Convertible Preferred Stock in Benihana,
Inc., which is convertible into approximately 1.1 million shares of
Common Stock. This investment represents approximately 10.0% of
Benihana's economic ownership and 26% of the voting rights of
Benihana. Based on the closing price of Benihana, BFC's investment
was worth $29.7 million as of March 30, 2007. The total market
value of all three public holdings was $204.6 million as of March
30, 2007. Other: Our quarterly report on Form 10-Q for the quarter
ended March 31, 2007 contains additional information and was filed
with the Securities and Exchange Commission on May 10, 2007. The
Form 10-Q for the quarter ended March 31, 2007 is posted on BFC's
website, which can be accessed via http://www.bfcfinancial.com/.
About BFC Financial Corporation: BFC Financial Corporation (NYSE
Arca: BFF) is a diversified holding company that invests in and
acquires private and public companies in different industries. BFC
is typically a long-term, "buy and hold" investor whose direct and
indirect, diverse ownership interests span a variety of business
sectors, including consumer and commercial banking; homebuilding;
development of master-planned communities; the hospitality and
leisure sector through the development, marketing and sales of
vacation resorts on a time-share, vacation club model; the
restaurant and family dining business, and real estate investment
banking and investment services. BFC's current major holdings
include BankAtlantic Bancorp and its subsidiary, BankAtlantic;
BankAtlantic Bancorp's 16% ownership in Stifel Financial
Corporation; Levitt Corporation, which includes its subsidiaries
Levitt and Sons(TM) and Core Communities; Levitt Corporation's 31%
ownership in Bluegreen Corporation; a minority interest in the
national restaurant chain, Benihana, Inc. and Cypress Creek
Capital, a wholly-owned subsidiary. Although BFC's current holdings
primarily consist of minority positions, its more recent strategy
has been to focus primarily on new investment opportunities with
80-100% ownership potential. For further information, please visit
our website at: http://www.bfcfinancial.com/. To receive future
news releases or announcements directly via Email, please click on
the Email Broadcast Sign Up button. BFC Contact Info: Investor and
Corporate Communications: Sharon Lyn, Vice President Email:
Investor Relations: Leo Hinkley, SVP, Investor Relations Officer
Email: Mailing Address and Telephone: BFC Financial Corporation
Attn: Investor Relations 2100 West Cypress Creek Road Fort
Lauderdale, FL 33309 Phone: (954) 940-4994 Fax: (954) 940-5320 Some
of the statements contained in this press release include forward-
looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended (the "Securities Act"), and
Section 21E of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). All statements in this press release not dealing
with historical results are forward-looking and are based largely
on various assumptions and expectations and involve inherent risks
and uncertainties that are subject to change based on factors which
are, in many instances, beyond the control of BFC or the companies
in which BFC has invested. Some factors which may affect the
accuracy of the forward-looking statements that apply generally to
BFC include, but are not limited to, the risks and uncertainties
associated with its current investments and any future investments,
the risk that sufficient resources may not be available to make
desired investments or acquisitions, and the risk that the
strategic plans and initiatives pursued by BFC's portfolio of
companies may not be successful. Risks and uncertainties associated
with BankAtlantic Bancorp include, but are not limited to, the
impact of economic, competitive and other factors affecting the
bank, its operations, asset quality, markets, products and
services, the risk that BankAtlantic's new store expansion program
and other growth initiatives may not result in continued
development of core deposits or produce results which justify their
costs, and the risk that the value of the Stifel shares
BankAtlantic Bancorp received and may in the future receive as a
result of the sale of Ryan Beck Holdings, Inc. may decrease over
time. Risks and uncertainties associated with Levitt include, but
are not limited to, the impact of economic, competitive and other
factors affecting its operations and markets; its ability to
maintain sufficient liquidity in the event of a prolonged downturn
in the housing market, and its ability to access additional capital
on acceptable terms, if at all, including through the proposed
merger with BFC. Further, the proposed merger of BFC and Levitt
involves substantial risks and uncertainties including, but not
limited to, the risk that the benefits of the merger to either BFC,
Levitt, or both companies may not be achieved, risks related to the
timing and extent of any homebuilding recovery, and the risk that
BFC's cash flow may be negatively impacted if a substantial number
of Levitt's shareholders exercise their appraisal rights in the
merger or by Levitt's operations after the merger. Furthermore,
this press release contains only summary and partial financial data
for the period. The forward- looking statements contained in this
release reflect the opinion of management as of the date of this
release and are qualified by, and subject to, significant business,
economic, competitive, regulatory and other uncertainties and
contingencies, all of which are difficult or impossible to predict
and many of which are beyond the control of the Company or the
management of companies in which BFC has invested. Accordingly,
there can be no assurance that the forward-looking statements
contained in this release will be realized or that actual results
will not be significantly higher or lower. Readers are hereby
advised that developments subsequent to this release are likely to
cause these statements to become outdated with the passage of time
or other factors beyond the control of the Company. In light of the
foregoing, readers of this release are cautioned not to place undue
reliance on the forward-looking statements contained herein. The
Company cautions that the foregoing risks and uncertainties are not
exclusive. More complete information relating to BFC and its
publicly-traded portfolio of companies, including the risks and
uncertainties relating to their respective businesses, is detailed
in reports filed by BFC and these companies with the Securities and
Exchange Commission, and may be viewed free of charge on the SEC's
website, http://www.sec.gov/.
http://www.newscom.com/cgi-bin/prnh/20050714/FLTH001LOGODATASOURCE:
BFC Financial Corporation CONTACT: Sharon Lyn, Vice President of
BFC Financial Corporation, or Investor Relations, Leo Hinkley, SVP,
Investor Relations Officer, Web site: http://www.bfcfinancial.com/
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