Boca Raton, Florida-based timeshare seller Bluegreen Vacations Corp. (NYSE: BXG) posted a second-quarter net loss after entering a settlement with Bass Pro Shops.
Bluegreen Vacations in June agreed to pay the Springfield-based outdoor retailer more than $40 million, settling allegations that the timeshare seller engaged in “high pressure salesmanship” inside Bass Pro and Cabela’s stores, contract violations and missed commission payments.
In a Tuesday news release, Bluegreen Vacations disclosed how the settlement impacted its financials during the three-month period that ended June 30. Within 15 days of the settlement, Bluegreen paid Bass Pro $20 million. The remainder is scheduled to be paid through 2024, and additionally, Bluegreen Vacations agreed to pay set annual fees and donate a minimum $700,000 per year to the Wonders of Wildlife Foundation.
Bluegreen Vacations’ net loss attributable to common shareholders was $11.2 million, a 142% drop compared with earnings of $26.7 million in second-quarter 2018. Officials indicated settlement expenses cost the company 39 cents per diluted share; the diluted share loss was 15 cents.
“We are pleased that during the quarter we came to a resolution of our differences with our longtime partner, Bass Pro Shops,” Bluegreen Vacations President and CEO Shawn Pearson said in the release. “The settlement agreement not only reinstated all of our marketing activities in Bass Pro retail stores, but resolved the issues which were delaying the expansion of our network into Cabela’s retail stores, which we believe positions us to reach an even broader audience.”
BXG shares were trading at $9.11 as of 11:32 a.m., compared with a 52-week range of $7.60 to $21.33.
Fishing retail shop Modern Outdoor Tackle moved; Healthy Spot LLC opened; and Springfield law firm Strong, Garner & Bauer PC changed names and moved its office.