BFC Financial Corporation Announces Financial Results for the First Qu

FORT LAUDERDALE, Fla., May 9 /PRNewswire-FirstCall/ -- BFC Financial Corporation ("BFC"), a diversified holding company that invests in and acquires operating businesses in a variety of industries, today announced financial results for the first quarter ended March 31, 2005.

Net Income and Earnings Per Share:

Net income available to common shareholders for the first quarter of 2005 was $4.2 million compared with $4.4 million for the first quarter of 2004. The 2004 quarter included two items resulting in a $1.4 million net after-tax gain. These items were a litigation settlement gain and costs associated with the prepayment of certain high cost debt. Excluding the effect of these items, net income in the first quarter 2004 would have been $3.0 million, compared to $4.2 million in the current quarter, an increase of 41%. Diluted earnings per share decreased 7% to $0.14 in the first quarter of 2005, compared to $0.15 in the prior year. Excluding the two items discussed above, diluted earnings per share would have increased 40% to $0.14 in the first quarter of 2005, up from $0.10 in the first quarter of 2004.

Segment Income: BFC reports its results in three distinct segments.:

-- The "Financial Services" segment includes BankAtlantic Bancorp and its subsidiaries, BankAtlantic and Ryan Beck & Co.

-- The "Homebuilding & Real Estate Development" segment includes Levitt Corporation and its subsidiaries, Levitt and Sons, Core Communities, Bowden Homes and Levitt Commercial and Levitt's investment in Bluegreen.

-- The "BFC Activities" segment includes BFC's real estate owned, loans receivable that relate to previously owned properties, other securities and investments, BFC's overhead and interest expense and the financial results of venture partnerships which BFC controls. Since BFC is a holding company whose principal activities consist of managing existing investments and actively seeking and evaluating potential new investments, BFC itself has no significant direct revenue or cash-generating operations. Accordingly, BFC itself, as a holding company and the "BFC Activities" segment, will normally show a loss as dividends, interest and fees from our investments typically do not cover BFC stand-alone operating costs.

The following table shows net income and earnings per share for each segment including the 2004 special items discussed above (in thousands, except per share data):

Three Months Ended Percent March 31, Increase 2005 2004 (Decrease) Financial Services $ 19,878 $ 20,524 (3.1%) Homebuilding & Real Estate Development 29,818 13,055 128.4 % BFC Activities (4,930) (2,585) 90.7 % 44,766 30,994 44.4 % Minority interest* 40,366 26,622 51.6 % Net income 4,400 4,372 0.6 % 5% Preferred Stock dividends 188 -- Net income available to common shareholders $ 4,212 $ 4,372 (3.7%) Basic earnings per share of common stock $ 0.16 $ 0.18 (11.1%) Diluted earnings per share of common stock $ 0.14 $ 0.15 (6.7%) Basic weighted average number of common shares outstanding 25,750 23,824 8.1 % Diluted weighted average number of common and common equivalent shares outstanding 28,336 27,760 2.1 %

The following table shows net income and earnings per share for each segment excluding the 2004 special items discussed above** (in thousands, except per share data):

Three Months Ended Percent March 31, Increase 2005 2004 (Decrease) Financial Services $ 19,878 $ 13,371 48.7 % Homebuilding & Real Estate Development 29,818 13,055 128.4 % BFC Activities (4,930) (2,869) 71.8 % 44,766 23,557 90.0 % Minority interest* 40,366 20,560 96.3 % Net income 4,400 2,997 46.8 % 5% Preferred Stock dividends 188 -- Net income available to common shareholders $ 4,212 $ 2,997 40.5 % Basic earnings per share of common stock $ 0.16 $ 0.13 27.2 % Diluted earnings per share of common stock $ 0.14 $ 0.10 40.0 %

The following table shows net income and earnings per share for each segment excluding the 2004 special items discussed above after the allocation of minority interest* to the respective segments** (in thousands, except per share data):

Three Months Ended Percent March 31, Increase 2005 2004 (Decrease) Financial Services $ 4,368 $ 2,976 46.8 % Homebuilding & Real Estate Development 4,956 2,902 70.8 % BFC Activities (4,924) (2,881) 70.9 % Net income 4,400 2,997 46.8 % 5% Preferred Stock dividends 188 -- Net income available to common shareholders $ 4,212 $ 2,997 40.5 % Basic earnings per share of common stock $ 0.16 $ 0.13 27.2 % Diluted earnings per share of common stock $ 0.14 $ 0.10 40.0 %

*"Minority 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, 2005, BFC owned 21.8% of the economic interest and 54.9% of voting control of BankAtlantic Bancorp and 16.6% of the economic interest and 52.9% voting control of Levitt Corporation.

**"Net income and earnings per share excluding the 2004 special items" is not prepared in accordance with GAAP and this non-GAAP financial measure should not be construed as being superior to GAAP. A reconciliation of 2004 GAAP income to net income excluding the 2004 special items is as follows:

GAAP net income $ 4,372 Costs associated with debt redemption 1,042 Litigation settlement (2,417) Net income excluding the 2004 non- operating items $ 2,997 Shareholders' Equity or Book Value:

Shareholders' equity, or book value, grew from $125 million as of December 31, 2004 to $128 million as of March 31, 2005, an increase of 2%. Shareholders' equity was $92 million as of March 31, 2004, representing a year-over-year increase of 39%. These increases were primarily due to increases in net income, the sale of $15 million of preferred stock, the effects of subsidiaries' capital transactions, issuance of common stock and the tax effect of the exercise of stock options.

Market Value of Public Holdings:

Our public holdings are comprised of 13.2 million shares of common stock, or 21.8%, of BankAtlantic Bancorp and 3.3 million shares of common stock, or 16.6%, of Levitt Corporation . The market value of our public holdings, which will fluctuate from time to time, decreased to $314 million at March 31, 2005 from $363 million at December 31, 2004, a decrease of 13.5%.

-- BankAtlantic Bancorp's stock price decreased 12% in the first quarter of 2005 from $19.86 per share at December 31, 2004 to $17.40 per share at March 31, 2005.

-- Levitt Corporation's stock price decreased 16% in the first quarter of 2005 from $30.55 per share at December 31, 2004 to $25.64 per share at March 31, 2005.

BFC Market Capitalization:

The market capitalization of BFC, based on basic shares outstanding, (which we define as shares outstanding at the end of the period times the market price on the last day of the period) decreased to $265 million at March 31, 2005 from $286 million at December 31, 2004, a decrease of 7%. The market capitalization of BFC, based on diluted shares outstanding, (which we define as shares outstanding at the end of the period plus common stock equivalents calculated using the treasury stock method resulting from stock-based compensation outstanding at the end of the period times the market price on the last day of the period) decreased to $288 million at March 31, 2005 from $313 million at December 31, 2004, a decrease of 8.0%.

Other:

Our quarterly report on Form 10-Q for the quarter ended March 31, 2005 will contain much more information than this press release and is currently scheduled to be filed with the Securities and Exchange Commission on May 10, 2005. We will also post the Form 10-Q for the quarter ended March 31, 2005 on BFC's website, which can be accessed via http://www.bfcfinancial.com/ .

About BFC Financial Corporation:

BFC Financial Corporation is a diversified holding company that invests in and acquires private and public companies in different industries. BFC's current major holdings include BankAtlantic Bancorp and its subsidiaries, BankAtlantic and Ryan Beck & Co.; Levitt Corporation , which includes its subsidiaries Levitt and Sons(TM) and Core Communities; Levitt Corporation's 31% ownership in Bluegreen Corporation , as well as a minority interest in the renowned national restaurant chain, Benihana, Inc. . BFC's direct and indirect diverse ownership interests span a variety of business sectors, including consumer and commercial banking; brokerage and investment banking services; 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; and the restaurant and family dining business.

BFC Contact Info: Investor and Corporate Communications: Sharon Lyn, Vice President Email: CorpComm@BFCFinancial.com Phone: (954) 760-5151, Fax: (954) 760-5415 Investor Relations: Leo Hinkley, Senior Vice President Email: InvestorRelations@BFCFinancial.com Mailing Address: BFC Financial Corporation Attn: Investor Relations 1750 East Sunrise Boulevard, Fort Lauderdale, Florida 33304

Matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Actual results, performance or achievements could differ materially from those contemplated, expressed or implied by the forward-looking statements contained herein. Past performance is no indication of current or future results. These forward-looking statements are based largely on the expectations of BFC and are subject to a number of risks and uncertainties that are subject to change based on factors which are, in many instances, beyond the Company's control including the risks and uncertainties disclosed in the Company's filings with the Securities and Exchange Commission. Moreover, this press release contains only summary and partial financial data for the periods in question and is subject to the completion of our audit. More complete information is contained in our 2004 Annual Report on Form 10-K and our quarterly report on Form 10Q filed with the Securities and Exchange Commission and available on BFC's website at http://www.bfcfinancial.com/ .