Here is something to take solace in as an investor who enjoys hidden asset, murky, under the rug type investments that the rest of Wall Street can't find, see or have the patience to understand properly: BFCF released an 8-K with the financials for BFCF subsidiary BlueGreen Corporation (formerly BXG:NYSE). The presentation simply reinforces everything I have discussed regarding the company since taking a position and publishing research in October:
- Generated free cash flow of $71 million during 9 months ended September 2013.
- Full year free cash generation of near $100 million
- $46 million in EBITDA through first 9 months of 2013
- Full year estimate EBITDA close to $60 million
- $337 million in sales during 9 months ended September 2013
- Full year sales estimates near $450 million
- 20% growth in top line vs. 2012
- 11% growth in bottom line vs. 2012
- Timeshare industry as a whole experienced highest one year sales growth since 2006
Important to note that BXG is just one sub of BFCF/BBX. We know of three other subs that were acquired just over the past few months: Renin Corp, Hoffman's Chocolates, William & Bennett. Don't have much insight into the financials of these companies. However, we know the modus operandi of the company is to purchase niche businesses with a proven history of cash flow generation.
On a post-merger basis, assuming the merger is consummated between BBX/BFCF, we are talking about a company that is trading at less than 4 times free cash flow AND has real estate assets throughout Florida that are impossible to value correctly due to a) vastness of portfolio b) various stages of development c) murky path to discovery of assets gained through foreclosure.
