Developing Homes Since 1929

Transcription

1 Developing Homes Since 1929 Prepared: September 27, 2003

2 LEVITT CORPORATION Levitt Corporation is a wholly owned subsidiary of BankAtlantic Bancorp, Inc. (NYSE:BBX). Earlier this year, BBX announced its intention to spinoff Levitt, pending BBX s receipt of a private letter ruling from the Internal Revenue Service stating that a pro rata distribution of Levitt shares to BBX s common shareholders will be tax-free to BBX and to BBX s common shareholders for U.S. federal income tax purposes. Pending receipt of a favorable private letter ruling, BBX will distribute all of its Levitt shares via a dividend the Spin-Off at which time Levitt will cease to be a subsidiary of BBX. 2

3 LEVITT CORPORATION Approximately 59 million shares of BBX common stock are outstanding. BBX estimates that it will distribute a total of approximately 14.7 million shares of Levitt to the BBX shareholders, representing a 0.25 per share distribution ratio. Before the Spin-Off, Levitt will register its shares of common stock under The Securities Exchange Act of 1934, and Levitt will make application with one of the national securities exchanges to list its shares of common stock for trading. 3

4 THE LEVITT ORGANIZATION A FLORIDA GROWTH COMPANY Homebuilder Master Planned Community Developer Operator of Resort Properties Under the Timeshare Model (40% Ownership after Spin-Off) 4

5 THE LEVITT BRAND Building a Proud Legacy 5

6 PROFORMA INFORMATION 6/30/03 Assets Shareholder Equity $330 Million $109 Million Book Value per Share $7.40* *Assumes spin off at 1:4 ratio 6

7 REVENUE NET INCOME (DOLLARS IN MILLIONS) Up Revenue $144 $ % Net Income $ 8 $ % 7

8 TOTAL REVENUE (DOLLARS IN MILLIONS) $250 $200 $150 Compound Growth 124.5% $ $ $ $ $100 $85.36 $50 $ % $ /30/2002 6/30/2003 8

9 NET INCOME AFTER TAXES $25 (DOLLARS IN MILLIONS) $20 $15 Compound Growth 69.2% $19.51 $9.66 $10 $6.96 $7.52 $8.75 $5 $ % $ /30/2002 6/30/2003 9

10 TOTAL ASSETS (DOLLARS IN MILLIONS) $400 $300 $200 Compound Growth 24.0% $ $ $ $ % $ $100 $ /30/03 10

11 $150 $100 $50 SHAREHOLDER S EQUITY (DOLLARS IN MILLIONS) Compound Growth 24.6% $70.03 $62.51 $55.55 $ $ % $ /30/03 11

12 25% 20% 15% 10% RETURN ON EQUITY (AFTER TAX) 22.00% 17.10% 11.80% 11.40% 8.00% 5% 0% /30/03 12

13 FLORIDA HOUSING UNIT ADDITIONS FROM JULY 1, 2001 TO JULY 1, Florida 147, Source: U.S. Census Bureau 13

14 DEMOGRAPHICS OF FLORIDA Estimated 330,000 people are expected to move to Florida in 2003 In ,000 people changed addresses within Florida 260,000 people migrated to Florida from other states Source: U.S. Census Bureau 14

15 America s Oldest Home Builder (1929) William J. Levitt, Father of suburbia Developer of Levittowns in Long Island and Pennsylvania Residential Builder of over 200,000 homes 15

16 COMMUNITIES Currently developing 11 communities in six Florida counties. 16

17 A LEADER IN ACTIVE ADULT COMMUNITIES 17

18 TOTAL ASSETS (DOLLARS IN MILLIONS) $400 $300 $200 Compound Growth 32.0% $ $ $96.00 $ $100 $ /30/03 18

19 $200 $150 TOTAL REVENUES (DOLLARS IN MILLIONS) Compound Growth 38.8% $ $ $100 $50 $85.08 $ % $83.57 $ /30/2002 6/30/

20 DELIVERIES (HOUSING UNITS * ) $192,000 $190,000 $195,000 $219, *Includes Joint Ventures Average Sales Price 20

21 BACKLOG OF SIGNED CONTRACTS $350 $300 $250 (DOLLARS IN MILLIONS) $ $200 $150 $100 $91.29 $ $ $ $50 $ /30/2003 Units 21

22 MARGIN 25% 23.00% 20% 19.00% 19.00% 15% 15.00% 10% 5% 0% /30/

23 Over 95% of homes are pre-sold before construction begins Unsold inventory represents approximately 5% of starts Customer deposits Range from 5%-10% of sale price Leads to low cancellation rate, minimized discounts and strong backlog 23

24 CASH VS. MORTGAGE SALES * 54.10% Financed 45.90% Cash *For the year ended

25 CURRENT LOT INVENTORY AS OF JUNE 30, 2003 Lots Owned 4,738 Lots Under Contract 1,245 Total Lots 5,983 25

26 NET INCOME AFTER TAXES (DOLLARS IN MILLIONS) $10 $9.31 $5 $5.09 $4.12 $2.54 $ /30/

27 Developer of Master Planned Communities Residential tracts delivered to Levitt and Sons and independent builders 27

28 28

29 PORT ST. LUCIE, FLORIDA Master Planned Community St. Lucie West ranked by Robert Charles Lesser & Co. as 8th fastest selling Master Planned Community in USA for ,600 Original Acreage Location of PGA Golf Course Location of New York Mets spring training stadium 29

30 PORT ST. LUCIE, FLORIDA Master Planned Community 9,000+/- Original Acreage 5 miles frontage on Interstate 95 30

31 $100 $80 $60 $40 TOTAL ASSETS (DOLLARS IN MILLIONS) Compound Growth 19.5% $54.85 $65.91 $78.32 $75.27 (7.6)% $20 $ /30/03 31

32 NET INCOME AFTER TAXES (DOLLARS IN MILLIONS) $14.88 $4.88 $3.52 $ /30/03 32

33 Resort Developer Operator of resort properties under the timeshare model Operates throughout the U.S., primarily drive to destinations Developer of residential and golf communities 40% owned by Levitt Corporation after Spin-Off 33

34 NYSE:BXG More than 100,000 Resort Owners Over 30 Communities Over 45,000 Homesites sold since

35 35

36 TOTAL ASSETS (DOLLARS IN MILLIONS) $435 $434 $499 3/31/02 12/31/02 6/30/03 36

37 TOTAL REVENUES (DOLLARS IN MILLIONS) $275 $ % $151 $ % FY 2001 FY Months Months

38 NET INCOME (DOLLARS IN MILLIONS) $11.73 $8.35 $ % ($0.38) FY 2001 FY Months Months

39 SHAREHOLDERS EQUITY (DOLLARS IN MILLIONS) $150 $158 $167 3/31/02 12/31/02 6/30/03 39

40 FINANCIAL RESULTS 40

41 NET INCOME AFTER TAXES $25 (DOLLARS IN MILLIONS) $20 $15 $10 $5 Compound Growth 69.2% $6.96 $7.52 $4.03 $19.51 $ % $9.66 $ /30/02 6/30/03 41

42 TOTAL ASSETS (DOLLARS IN MILLIONS) $400 $300 $ $ $200 $ $ $ $100 $ /30/03 42

43 DEBT-TO TO-EQUITY RATIO /30/03 43

44 $150 SHAREHOLDER S EQUITY (DOLLARS IN MILLIONS) $ $ $100 $50 $55.55 $62.51 $70.03 $ /30/03 44

45 AVERAGE MARKET VALUATION FOR HOMEBUILDERS * 1.3 x Book Value 7.3 x Price / Earnings *For Illustration Purposes Only 45

46 FORWARD LOOKING STATEMENTS Except for historical information contained herein, the matters discussed in this presentation contain forwardlooking 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 ), that involve substantial risks and uncertainties. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. These forward-looking statements are based largely on the expectations of BankAtlantic Bancorp, Inc. and Levitt Corporation ( Levitt ) and are subject to a number of risks and uncertainties that are subject to change based on factors which are, in many instances, beyond their control. These include, but are not limited to, risks and uncertainties associated with: The impact of economic, competitive and other factors affecting the companies and their operations, markets and products; Risks and uncertainties relating to the market for real estate generally and in the areas where Levitt has developments; The availability and price of land suitable for development, materials prices, labor costs, interest rates, environmental factors and governmental regulations; And risks and uncertainties with respect to the proposed spin-off of Levitt Corporation, including that the spin-off may not be consummated, that Levitt will not be successful as a separate publicly-traded company, that historical results will not be indicative of future results, that the stock of Levitt will not trade as anticipated or at multiples of book value or price/earnings, that Levitt will not have additional access to capital or debt markets or that such markets may prove to be more expensive than currently available, and that the spin-off may be effected on a different basis than contemplated herein. The foregoing factors are not exclusive and reference is also made to other risks and factors detailed in reports filed by BankAtlantic Bancorp with the Securities and Exchange Commission. 46

47 SUPPLEMENTAL DATA 47

48 LEVITT CORPORATION POST SPIN PRO FORMA SUMMARY PRO FORMA STATEMENTS OF FINANCIAL CONDITION (Unaudited) Dollars in Thousands As of June 30, 2003 BBX After BBX Levitt Spin-off Levitt As Reported Pro Forma (a) Pro Forma (a) ASSETS Cash and short-term investments $ 127,150 $ 114,100 $ 31,568 Investments 1,011,729 1,011,729 - Loans 4,024,340 4,113,828 4,809 Real estate held for development and sale and joint ventures 268,546 20, ,411 Investment in unconsolidated real estate subsidiary 64,381-64,381 Other Assets 315, ,046 10,645 Total Assets $ 5,811,478 $ 5,567,170 $ 333,814 LIABILITIES AND STOCKHOLDERS' EQUITY Deposits $ 2,904,380 $ 2,904,380 $ - FHLB Advances 1,332,300 1,332,300 - Other short-term borrowings 373, ,659 - Other long-term borrowings (b) 396, , ,708 Other liabilities 309, ,407 49,593 Total Liabilities 5,315,647 5,181, ,301 Stockholders' Equity 495, , ,513 Total Liabilities and stockholders' equity $ 5,811,478 $ 5,567,170 $ 333,814 (a) Pro forma assumptions. Financials may be materially different based on actual transaction details and timing of the spin-off, subject to receipt of a favorable private letter ruling from the IRS (b) Levitt Corporation's obligations to BBX post spin-off: Amount Maturity Existing Notes payable $ 30,000 1/1/08 Dividend note payable 8,000 1/1/08 Note associated with sale of Bluegreen stock 5,500 1/1/04 Total obligations to BBX post spin-off $ 43,500 (a) 48

49 SUMMARY PRO FORMA STATEMENTS OF OPERATIONS (Unaudited) Dollars in Thousands For the six months ended June 30, 2003 BBX After BBX Levitt Spin-off Levitt As Reported Pro Forma (a) Pro Forma (a) Net interest income $ 79,788 $ 80,520 $ (58) Provision for loan losses 2,340 2,340 - Net interest income after provision for loan losses 77,448 78,180 (58) Non-interest income: Service charges and other banking fees 28,152 28,152 - Investment banking Income 116, ,075 - Gains on sales of real estate and joint venture activities 34,303 2,315 31,266 Income from unconsolidated real estate subsidiary 2,438-2,438 Gains (losses) on sales of assets and redemption of debt (1,279) (1,279) - Other 6,715 5,606 1,119 Total non-interest income 186, ,869 34,823 Non-interest expense: Employee compensation and benefits 136, ,658 8,390 Other 78,894 68,623 10,281 Total non-interest expense 214, ,281 18,671 Income before income taxes 48,910 32,768 16,094 Provision for income taxes 17,344 11,129 6,216 Net income $ 31,566 $ 21,640 $ 9,879 (a) Financial results of Operations may be materially different based on actual transaction details and timing of the spin-off, subject to receipt of a favorable private letter ruling from the IRS 49

50 LEVITT CORPORATION SELECTED CONSOLIDATED FINANCIAL DATA Six Months Ended June 30, Year Ended December 31, (Dollars in Thousands) Statement of Operations Data: Revenues Sales of real estate $ 120,003 84, , , ,322 18,499 13,229 Other revenues ,595 1,106 5, $ 120,984 85, , , ,986 18,499 13,229 Costs and Expenses Cost of sales of real estate $ 88,675 62, , ,685 79,029 9,437 7,174 Other costs and expenses 19,568 15,443 32,059 27,697 21,770 6,976 5, ,243 77, , , ,799 16,413 12,952 Operating income 12,741 7,829 17,669 4,864 5,187 2, Equity from earnings in Bluegreen Corporation (a) 1,806 1,522 4, Other income 1,185 2,742 3,527 6,776 4,976 3, Income before income taxes 15,732 12,093 25,766 11,640 10,163 5,600 1,223 Provision (benefit) for income taxes 6,072 3,339 6,254 4,118 3,208 1,568 (232) Net income $ 9,660 8,754 19,512 7,522 6,955 4,032 1,455 Other Data: Levitt and Sons (b) Gross margin on sales of homes 23% 18% 19% 19% 15% - - Homes delivered Joint ventures homes delivered Backlog Units (d) 1, Backlog Sales Value (d) $ 336, , , , ,117 91, ,922 Core Communities (c): Gross margin on land sales 37% 62% (e) 47% (e) 51% 56% 49% 46% Acres sold 1, , Unsold acres 5,214 5,857 4,472 4,131 3,099 3,244 3,556 Ratio of earnings to fixed charges

51 LEVITT CORPORATION SELECTED CONSOLIDATED FINANCIAL DATA June 30, December 31, Balance Sheet Data: Inventory of real estate $ 218, , , , ,524 28,070 Investment in Bluegreen $ 60,224 57, Total assets $ 329, , , , ,831 54,700 Notes and mortgage notes payable $ 104,306 85,359 55,625 41,047 50,631 6,300 Notes and mortgage notes payable to affiliates $ 56,509 57,505 27,870 27,796 20,653 - Development bonds payable $ 1,393 4,581 8,635 9,891 7,533 1,745 Total liabilities 211, , , ,874 98,659 9,711 Shareholder's equity $ 117, ,533 70,028 62,506 55,551 44,966 Financial Statistics: Return on average equity (g) 17.1% (f) 22.0% 11.4% 11.8% 8.0% 4.4% Debt to equity ratio (a) Levitt Corporation acquired its interest in Bluegreen Corporation in April (b) Levitt Corporation acquired Levitt and Sons in December (c) Levitt Corporation acquired Core Communities in October (d) Including joint ventures' homes delivered and backlog units and sales. (e) Land sales to Levitt and Sons for the six months ended June 30, 2002 equaled $6.7 million and the net gain recognized was $4.9 million. For the year ended December 31, 2002 land sales to Levitt and Sons equaled $8.5 million and the net gain recognized was $6.5 million. These inter-company transactions were eliminated in consolidation. (f) Annualized. (g) Calculated by dividing net income period equity balances. 51

52 Developing Homes Since