Digital Communication is the # 1 Method for Pharma Field Forces When Interacting With External Stakeholders

RESEARCH TRIANGLE PARK, NC—(Marketwired – August 08, 2017) – The majority of interactions between surveyed health economics (HE) field force teams and external stakeholders occur through email correspondence, rather than face–to–face and phone interactions, according to a new study by business intelligence provider Cutting Edge Information.

Data published in the study, Health Economics Field Forces: Shape World–Class HOL and MCL Teams to Deliver HEOR Data, revealed that email communication is the most common method for health economics field force teams for disseminating health economics information when targeting payers, pharmacy benefit managers (PBMs), and hospital systems.

The study found that after email correspondence, HE field forces typically favor face–to–face meetings, making phone interactions the least common method used when communicating with external stakeholders.

“Much of a health economics field force liaison's responsibility is interacting with key external stakeholders,” said Natalie DeMasi, research team leader at Cutting Edge Information. “Communicating health economics data to healthcare stakeholders is critical for product and company success.”

On average, interactions with payers occur 48% of the time via email, and 32% of the time via face–to–face communication, the study found. When communicating with hospital systems, email correspondence typically makes up 47% of field force interactions, with an another 35% for face–to–face communication.

Additional data from the study revealed that most health economics field force teams report that at least 63% of their interactions with pharmacy benefit managers (PBMs) occur over email.

When digging deeper into the data, the study found that healthcare physicians are the only external stakeholder that field force teams prefer face–to–face interactions over digital communication. Most surveyed teams interact with physicians at least 44% of the time through face–to–face meetings and about 43% of the time through email.

Health Economics Field Forces: Shape World–Class HOL and MCL Teams to Deliver HEOR Data, available at https://www.cuttingedgeinfo.com/product/health–economics–field–forces/, includes benchmarks and innovative approaches for establishing and improving health economics (HE) field forces — such as HOL teams, MCL teams or hybrid MSL roles. This report is a decision support tool for health economics teams and medical affairs executives seeking to implement or improve HE field forces' role in delivering data to healthcare stakeholders.

This report is designed to help executives:

  • Discover industry trends and insights into new approaches for ideal HOL and MCL team structures
  • Use real–life profiles to compare field force activities and strategies from other life science companies to help teams optimize their operations
  • Benchmark hiring and training best practices for health economics field forces
  • Determine resource allocation, such as team size and budget allocation

For more information on Cutting Edge Information's medical affairs research, please visit https://www.cuttingedgeinfo.com/product–category/medical–affairs/.

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Asia Society Announces 2017 Asia Game Changers

NEW YORK, NY—(Marketwired – August 08, 2017) – Asia Society today announced this year's recipients of the Asia Game Changer Awards, which recognize those making a transformative and positive difference for the future of Asia and the world. Asia Society is proud to partner with Citi to honor these extraordinary individuals and organizations, continuing a tradition begun with the inauguration of Asia Game Changers four years ago.

This year's nine honorees include a young woman using rap music to fight a trauma in Afghanistan, a trailblazing CEO changing urban life in China, a Hollywood star building bridges between India and the world, and an environmentalist placing his life on the line to stop deforestation in his native country. His Highness the Aga Khan, spiritual leader to the world's 15 million Ismaili Muslims, will receive the Asia Game Changer Lifetime Achievement Award.

“In a world of challenges, it is important to honor the dreamers and leaders, those who take action and those who inspire us to build a better world,” said Asia Society President Josette Sheeran. “This year's Game Changers have each made a significant difference through a unique vision, perseverance, and courage.”

“Citi's mission is to enable growth and economic progress and we are honored to once again partner with the Asia Society,” said Citi Asia Pacific CEO Francisco Aristeguieta. “These awards reflect how these Game Changers are using courage and creativity to inspire and make a positive impact in communities.”

Honorees are nominated and selected by members of Asia Society's global network.

The 2017 awardees are:

Asia Game Changer Lifetime Achievement Award: His Highness the Aga Khan (Global)
Founder, Aga Khan Development Network
For using philanthropy to lift millions of Asia's most vulnerable

Sonita Alizadeh (Afghanistan)
Rapper and activist
For using rap music to empower the girls of Afghanistan

Jean Liu (China)
President, Didi Chuxing
For revolutionizing transportation in China

Aisholpan Nurgaiv (Mongolia)
Eagle huntress
For breaking gender barriers at a remarkably young age

Leng Ouch (Cambodia)
Environmental activist
For risking his life to expose an environmental calamity

Dev Patel (India/ United Kingdom)
Actor
For using celebrity to place a spotlight on India's poor

Sesame Workshop (Global)
Nonprofit organization
For proving that learning can be fun — and have a profound impact — anywhere in the world

Wu Tong (China)
Musician and composer
For showing that musical virtuosity knows no bounds

Tadashi Yanai (Japan)
Founder, UNIQLO; Chairman, President and CEO, FAST RETAILING
For building a global retail empire that gives back to local communities

The honorees will attend the Asia Game Changer Awards Dinner and Celebration at the United Nations on November 1, 2017. The evening will feature performances from Game Changer Wu Tong as well as the Aga Khan Music Initiative's All–Stars Ensemble, which brings together beloved artists–performers from Asia and the West.

Previous Game Changers include ICICI Bank CEO Chanda Kochhar; Alibaba founder Jack Ma; comedian Aasif Mandvi; Acumen CEO Jacqueline Novogratz; Xiaomi founder and CEO Lei Jun; documentarian Sharmeen Obaid–Chinoy; architecture icon I.M. Pei; education activist Malala Yousafzai; filmmaker Zhang Yimou, among others.

More information about the 2017 and past awardees, including bios, and the November 1 event is available at AsiaSociety.org/GameChangers. Members of the media should email pr@asiasociety.org for details.

About Asia Society

Asia Society is the leading educational organization dedicated to promoting mutual understanding of Asia in a global context and strengthening partnerships among peoples, leaders and institutions across the fields of arts, business, culture, education, and policy. Founded in 1956 by John D. Rockefeller 3rd, Asia Society is a nonpartisan, nonprofit institution with offices in Hong Kong, Houston, Los Angeles, Manila, Mumbai, New York, San Francisco, Seoul, Shanghai, Sydney, Washington, DC, and Zurich.

About Citi

Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.

Additional information may be found at www.citigroup.com | Twitter: @Citi | YouTube: www.youtube.com/citi | Blog: http://blog.citigroup.com | Facebook: www.facebook.com/citi | LinkedIn: www.linkedin.com/company/citi

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Canada Jetlines Retains Hybrid Financial for Strategic Investor Relations Initiatives

VANCOUVER, BC—(Marketwired – August 08, 2017) – Canada Jetlines Ltd. (TSX VENTURE: JET) (the “Company” or “Jetlines“) announces that it has retained the services of Hybrid Financial Inc. (“Hybrid Financial“) for strategic investor relations initiatives. The initiatives will include marketing, distribution, and branding services for the Company with a specific focus on elevating the Company's profile via investment advisors in the United States and Canada.

Pursuant to the agreement Hybrid Financial will receive a monthly retainer of $7,500. The agreement commenced August 8, 2017, for an initial term of three months, following which the agreement may be renewed by Jetlines on a month–to–month basis. Jetlines will pay the monthly fee from its cash on hand. The agreement is subject to the approval of the TSX Venture Exchange.

Launched in 2011, Hybrid Financial has a team of 55 professionals operating in Toronto and Montreal. With a proprietary database of over 300,000 U.S. and Canadian brokers, Hybrid Financial's team members have structured and sold over $10 billion of investment products and the firm has raised over $2 billion on behalf of clients in the past 24 months. Additional information about Hybrid Financial can be found at www.hybridfinancial.com.

Hybrid Financial Inc. does not have any interest, directly or indirectly, in Jetlines or its securities, or any right or intent to acquire such an interest.

About Canada Jetlines Ltd.

Jetlines is set to become Canada's first ultra–low cost carrier (“ULCC”) airline. With plans to operate flights throughout Canada and provide non–stop service from Canada to the United States, Mexico, and the Caribbean, Jetlines will service the 10 million passenger trips and 30+ secondary airports that go unserved or underserved across Canada. The Jetlines board and management teams are comprised of industry experts with extensive collective expertise in aviation, start–ups and capital markets, successfully receiving an unprecedented exemption from the Government of Canada that will permit it to conduct domestic air services while having up to 49% foreign voting interests.

For more information on Jetlines, please visit our website at www.jetlines.ca.

ON BEHALF OF THE BOARD

“Mark J. Morabito”
Executive Chairman

Cautionary Note Regarding Forward–Looking Information

This news release contains “forward–looking information” concerning anticipated developments and events that may occur in the future. Forward looking information contained in this news release includes, but is not limited to, statements with respect to the business plan and future airline operations of the Company.

In certain cases, forward–looking information can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved” suggesting future outcomes, or other expectations, beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward–looking information contained in this news release is based on certain factors and assumptions regarding, among other things, the accuracy, reliability and applicability of the Jetlines' business model; the timely receipt of governmental approvals, including the receipt of approval from regulators in Canada, the United States, Mexico and other jurisdictions where Jetlines may operate; the timely commencement of operations by Jetlines and the success of such operations; the ability of Jetlines to implement its business plan as intended; the legislative and regulatory environments of the jurisdictions where the Jetlines will carry on business or have operations; the impact of competition and the competitive response to the Jetlines' business strategy; and the availability of aircraft. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect.

Forward looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward–looking information. Such factors include risks related to acts of God, the impact of general economic conditions, changing domestic and international airline industry conditions, volatility of fuel prices, increases in operating costs, terrorism, pandemics, currency fluctuations, interest rates, risks specific to the airline industry, the ability of management to implement Jetlines' operational strategy, the ability to attract qualified management and staff, labour disputes, regulatory risks, including risks relating to the acquisition of the necessary licenses and permits, financing, capitalization and liquidity risks, including the risk that the financing necessary to fund operations may not be obtained and the additional risks identified in the “Risk Factors” section of the Company's reports and filings with applicable Canadian securities regulators.

Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward–looking information, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward–looking information. The forward–looking information is made as of the date of this news release. Except as required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward–looking information.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has reviewed or accepts responsibility for the adequacy or accuracy of this release.

AirBoss Announces 2nd Quarter 2017 Results and Dividend

NEWMARKET, ON—(Marketwired – August 08, 2017) – AirBoss of America Corp. (TSX: BOS)

Quarterly Highlights:

(In US dollars unless otherwise noted)

  • Quarterly dividend paid of C$0.07 per common share
  • Basic and diluted EPS of $0.14 per common share
  • Volume for the Rubber Solutions segment increased by 18.1% compared to 2016
     
  Three Months ended Six Months ended
   June 30  June 30
  (In thousands of US dollars) 2017 2016 2017 2016
  Net Sales 73,877 67,455 143,804 137,922
  Gross profit 11,768 13,073 22,864 26,237
  EBITDA(1) 7,419 8,836 14,432 18,065
  Net income 3,180 4,965 6,056 9,306
  (In US dollars, except shares)        
  Net income per share (EPS)        
    –Basic 0.14 0.22 0.26 0.40
    –Diluted 0.14 0.21 0.26 0.39
  Common shares outstanding (millions)        
    –Basic 23.1 23.1 23.1 23.0
    –Diluted 23.5 23.6 23.5 23.6

Dividend

The Board of Directors of the Company has approved a quarterly dividend of CAD $0.07 per common share, to be paid on October 13, 2017 to shareholders of record at September 29, 2017.

Consolidated Results

In the second quarter of 2017, the Company continued to realize the benefits that began in the first quarter from its ongoing investment in people and in its infrastructure and processes, achieving stronger net sales and EBITDA that were driven primarily by improvements in the Rubber Solutions segment. Consolidated net sales in the quarter of $73,877 increased 9.5% compared to the second quarter of 2016, and year–to–date net sales of $143,804 were up 4.3% over 2016, as increased sales at Rubber Solutions offset decreases at Engineered Products. Consolidated gross profit for the quarter and year–to–date was down 10.0% and 12.9%, respectively, from 2016, reflecting the lower net sales in Engineered Products that offset gains in Rubber Solutions. EBITDA in the second quarter was down 16.0% from Q2 2016, but reflected a 5.8% increase from the first quarter and continuing significant improvement from the level in Q4 2016. The Company exited the second quarter with cash and cash equivalents of $21,606, and has strengthened its net debt to capital to 30.6% from 34.9% over Q2 2016.

Segment Results

At Rubber Solutions, net sales increased by 25.5% (to $32,525) in the quarter and by 18.3% (to $63,384) year–to–date, from the comparable periods in 2016. The increases were driven by increased overall volume (measured in pounds shipped) of 18.1% for the quarter and 8.0% year–to–date, and by increased raw material costs of 21.4% for the quarter and 11.4% year–to–date (which resulted in price increases to customers). The increase in net sales for these periods was reflected in several sectors, with particular strength in off–the–road (“OTR”), infrastructure and track.

Non–tolling volumes increased 12.5% in the second quarter compared to 2016, marking the second consecutive year–over–year quarterly increase, while tolling volumes increased 75.5% in the same period, driven by an increase in conventional tolling applications. Year–to–date, non–tolling volume increased 11.9% over 2016, while tolling volume decreased 13.5% in the same period due to the decline in the first quarter in conventional tolling applications.

Gross profit at Rubber Solutions for the second quarter and year–to–date was slightly higher compared to 2016, at $5,575 and $11,249, respectively. Higher net sales and the absence of the negative productivity impacts experienced in the first half of 2016 (related to the 2015 transfer of production from the former Vermont facility to the Acton Vale, Quebec facility) were partly offset in the second quarter by higher raw material costs, increased raw material price volatility (which impacted our timing and ability to fully align input cost increases with customer price increases) and, in some cases, availability of certain specialty raw materials. As a percentage of net sales, gross profit in the second quarter was 17.1%, down from 21.3% in the comparable period in 2016, and year–to–date was 17.7%, down from 20.3% in 2016.

At Engineered Products, net sales for the second quarter and year–to–date decreased by 0.4%, to $41,352, and by 4.6%, to $80,420, respectively, from the comparable periods in the prior year. Increased net sales in the defense business were more than offset by decreases in the automotive business in these periods.

Net sales in the automotive business decreased in the second quarter and year–to–date by 8.7% and 8.3%, respectively, compared to 2016. As previously disclosed, these relative decreases were largely in the bushings and boot product lines as a result of customer specification changes that led to reduced net sales for those parts, and in muffler hangers as a result of the completion of a large program in the second half of 2016. These lower net sales were partly offset by increased demand in dampers and induction bonding applications.

Net sales in the defense business increased 64.1% in the second quarter of 2017 over last year, primarily in the extreme cold weather boot (“ECW”) and glove product lines. Year–to–date, net sales increased 21.4% compared to the comparable period last year, driven by increases in ECW, gloves and shelter product lines. These higher net sales were partly offset by a decrease in over–boots, following the completion of a contract with final shipments in the first quarter of 2016, as previously disclosed.

As a result of lower net sales at Engineered Products, gross profit declined to $6,193 for the second quarter (15% of net sales), compared to $7,561 (18.2% of net sales) in 2016 and year–to–date, declined to $11,615 (14.4% of sales), compared to $15,369 (18.2% in 2016).

Overview and Outlook

Management is encouraged to see the positive trends that began in the first quarter of 2017 continuing in the second quarter.

At Rubber Solutions, the continued improvement in volume reflects our efforts to diversify our customer base and product offerings, supported by a strong development pipeline. These efforts will continue throughout 2017. In particular, our niche tolling is proceeding on plan and we expect to ramp up to commercial volumes in another niche tolling program in the second half of the year. Raw material price volatility in the first half of the year impacted pricing strategies, resulting in some pressure on gross profit at Rubber Solutions. In addition, customers in the OTR market have also become increasingly price sensitive as a result of the inflow of lower cost products in the re–tread market from offshore suppliers. This is expected to pressure our OTR pricing in the remainder of 2017.

While the Company is taking steps to address these issues, and notwithstanding these challenges, management expects overall volume levels for the second half of the year to be similar to the first half. We will continue to aggressively pursue new customers and to invest in compound development and customer trials in order to acquire incremental volume, while implementing measures to protect gross profit margins.

Within Engineered Products, the automotive business continues to add bench strength in key areas and to invest in improved processes, while gaining traction in its efforts to pursue new multi–year programs to replace programs that have expired or are near the end of their platform life. However, as previously mentioned, efforts to pursue new programs are necessarily focused on platforms that start production in 2018/19 or later, and will likely not have a significant impact on near term results. We expect net sales in the automotive business for the second half of 2017 to be at similar levels to the first half of the year. In our defense business, we are pleased that the positive signs in the global defense market that had been accumulating for the past few months are starting to translate into firm orders in several product lines. The increase in net sales on a year–over–year basis in the first half of 2017 is encouraging, and the rate of inquiries and potential tendering activity remains steady. As is common in the space, the sales revenue that may result from such increased activity will not necessarily be realized in the short term.

We see positive indications for defense in the second half of 2017 and into the first quarter of 2018, including the recent receipt of our first firm order from a large foreign military for our new Low Burden Mask (“LBM”) and the commencement order for production under a previously delayed filter contract.

The initial positive results from our internal investments seen in the first quarter have continued into the second quarter of 2017. Our strong financial position will allow us to continue the required investments to optimize the business and also allow us to consider future acquisitions or other growth opportunities.

A conference call to discuss the quarterly results is scheduled for 8:30 a.m. Eastern on Wednesday, August 9, 2017. Please go to http://www.gowebcasting.com/8491 or dial in to the following numbers: 416–340–2220 or Toll Free: 1–866–225–6564. Direct Replay Access number: 905–694–9451 or Toll Free: 1–800–408–3053, pass code: 5409908.

AirBoss of America Corp. is a group of complementary businesses using compounding technology and engineering expertise to create value for its customers. With a capacity to process approximately 400 million turn pounds of rubber annually, AirBoss Rubber Solutions is one of North America's largest custom rubber compounders and a leading supplier of essential calendered and extruded products for a broad range of applications. AirBoss Engineered Products is a world leader in the supply of life saving products for the military and a leading supplier of innovative anti–vibration solutions to the North American automotive market. The Company's shares trade on the TSX under the symbol BOS. Visit www.airbossofamerica.com.

Note (1): Non–IFRS Financial Measures: EBITDA does not have any standardized meanings prescribed by IFRS. Such measure is neither required by, nor calculated in accordance with IFRS, and therefore is considered a Non–IFRS financial measure. The Company discloses EBITDA, a financial measurement used by interested parties and investors to monitor the ability of an issuer to generate cash from operations for debt service, financing working capital and capital expenditures and paying dividends. It should not be considered as an alternative to, or more meaningful than net income (or any other IFRS financial measure) as an indicator of the Company's performance. Because EBITDA excludes some, but not all, items that affect net income, the EBITDA presented by the Company may not be comparable to similarly titled measures of other companies. A reconciliation of EBITDA to net income is presented below.

     
  Three months ended Six months ended
  June 30  June 30  
  In thousands of US dollars 2017 2016 2017 2016
  Net income 3,180 4,965 6,056 9,306
  Finance costs 781 633 1,513 1,507
  Depreciation and amortization 2,720 2,545 5,394 5,119
  Income tax expense 738 693 1,469 2,133
  EBITDA 7,419 8,836 14,432 18,065

FORWARD–LOOKING STATEMENT DISCLAIMER

Certain statements contained or incorporated by reference herein, including those that express management's expectations or estimates of future developments or AirBoss' future performance, constitute “forward–looking statements” within the meaning of applicable securities laws, and can generally be identified by words such as “will”, “may”, “could” “expects”, “believes”, “anticipates”, “forecasts”, “plans”, “intends” or similar expressions. These statements are not historical facts but instead represent management's expectations, estimates and projections regarding future events and performance.

Forward–looking statements are necessarily based upon a number of opinions, estimates and assumptions that, while considered reasonable by management at the time the statements are made, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies. AirBoss cautions that such forward–looking statements involve known and unknown contingencies, uncertainties and other risks that may cause AirBoss' actual financial results, performance or achievements to be materially different from its estimated future results, performance or achievements expressed or implied by those forward–looking statements. Numerous factors could cause actual results to differ materially from those in the forward–looking statements, including without limitation: impact of general economic conditions; its dependence on key customers; cyclical trends in the tire and automotive, construction, mining and retail industries; sufficient availability of raw materials at economical costs; weather conditions affecting raw materials, production and sales; AirBoss' ability to maintain existing customers or develop new customers in light of increased competition; AirBoss' ability to successfully integrate acquisitions of other businesses and/or companies or to realize on the anticipated benefits thereof, changes in accounting policies and methods, including uncertainties associated with critical accounting assumptions and estimates; changes in the value of the Canadian dollar relative to the US dollar; changes in tax laws and potential litigation; ability to obtain financing on acceptable terms; environmental damage caused by it and non–compliance with environmental laws and regulations; potential product liability and warranty claims and equipment malfunction. This list is not exhaustive of the factors that may affect any of AirBoss' forward–looking statements.

All of the forward–looking information in this press release is expressly qualified by these cautionary statements. Investors are cautioned not to put undue reliance on forward–looking statements. All subsequent written and oral forward–looking statements attributable to AirBoss or persons acting on its behalf are expressly qualified in their entirety by this notice. Forward–looking information contained herein is made as of the date of this press release and, whether as a result of new information, future events or otherwise, AirBoss disclaims any intent or obligation to update publicly these forward–looking statements except as required by applicable laws. Risks and uncertainties about AirBoss' business are more fully discussed in the Management's Discussion and Analysis of Financial Condition and Results of Operations in the 2016 Annual Report to Shareholders under the heading “Risk Factors”.

BBX Capital Corporation Reports Financial Results For the Second Quarter, 2017

FORT LAUDERDALE, FL—(Marketwired – August 08, 2017) – BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB) (“BBX Capital” or the “Company”) reported financial results for the three–month period ended June 30, 2017.

BBX Capital Selected Financial Data (Consolidated)
Second Quarter 2017 Compared to Second Quarter 2016:

  • Total consolidated revenues of $202.9 million vs. $193.1 million
  • Net income available to common shareholders of $12.1 million vs. $0.2 million
  • Provision for income taxes of $8.8 million vs. a benefit of $0.4 million
  • Diluted earnings per share of $0.11 vs. $0
  • “Free cash flow” (cash flow from operating activities less capital expenditures) was $5.3 million compared to $23.4 million

As of June 30, 2017, BBX Capital had total consolidated assets of $1.5 billion, shareholders' equity of $486.5 million, and total consolidated equity of $533.5 million. At June 30, 2017, BBX Capital's book value per share was $5.01 compared to $4.61 at June 30, 2016.

“We are pleased with our overall results, momentum and accomplishments during the first half of the year. For the six–month period ending June 30, 2017, Bluegreen Vacations® reported approximately $292 million in system–wide sales of VOIs, approximately $56 million of other fee–based services revenue, and EBITDA of approximately $80 million. During the second quarter of 2017, Bluegreen Vacations completed a securitization involving the issuance of $120.2 million of investment–grade vacation ownership loan–backed notes, and announced the opening of Charleston's King 583 Resort in Charleston, SC. Overall, as part of our ongoing growth strategy at Bluegreen, we remain focused on increasing vacation ownership sales by expanding existing and identifying new tour sources and sales locations, increasing sales and operating efficiencies across all customer touch–points, efficiently procuring vacation ownership interests through a mix of capital light sources and strategic resort development, and growing the resort management, title, loan servicing and other cash generating businesses,” commented Alan B. Levan, Chairman and Chief Executive Officer of BBX Capital.

“On a corporate level, our Board approved a new share repurchase program in June 2017, and the Company's Class A Common Stock commenced trading on the New York Stock Exchange in July 2017.

“Our corporate strategy continues to be focused on building long–term shareholder value. Since many of BBX Capital's assets do not generate income on a regular or predictable basis, our objective continues to be long–term growth as measured by increases in book value and intrinsic value over time,” Levan concluded.

On June 13, 2017, the Company's Board of Directors declared a cash dividend of $0.0075 per share on our Class A and Class B Common Stock, with a payment date of July 20, 2017, to all shareholders of record at the close of trading on June 26, 2017, and has indicated its current intention to declare regular quarterly dividends of $.0075 per quarter per share on our Class A and Class B Common Stock (an aggregate per share of $.03 annually).

The following selected information relates to the operating activities of Bluegreen, BBX Capital Real Estate and Renin. See the supplemental tables below for the consolidating statements of operations for the three and six month periods ended June 30, 2017 and 2016.

Bluegreen Corporation

Bluegreen is a sales, marketing, and management company focused on the vacation ownership industry. Bluegreen markets, sells and manages vacation ownership interests (“VOIs”) in resorts, which are generally located in popular, high–volume, “drive–to” vacation destinations. The resorts in which Bluegreen markets, sells and manages VOIs were either developed or acquired by Bluegreen, or were developed and were owned by third parties. Bluegreen earns fees for providing sales and marketing services to these third–party developers. Bluegreen also earns fees by providing management services to the Bluegreen Vacation Club and home owners associations (“HOAs”), mortgage servicing, VOI title services, and construction design and development services. In addition, Bluegreen provides financing to FICO® score–qualified individual purchasers of VOIs, which generates significant interest income.

Bluegreen Selected Financial Data
Second Quarter 2017 Compared to Second Quarter 2016:

  • System–wide sales of VOIs, net of equity trade allowances (2), were $162.5 million vs. $159.7 million. Included in system–wide sales are sales of VOIs made under Bluegreen's “capital–light” business activities (1), which were $151.4 million vs. $125.8 million, gross of equity trade allowances (2):
    • Sales of third party VOIs — commission basis were $93.6 million vs. $77.6 million and generated sales and marketing commissions of $63.9 million vs. $54.2 million
    • Secondary market sales of VOIs were $40.3 million vs. $26.8 million
    • Just–in–time sales of VOIs were $17.5 million vs. $21.4 million
  • Average sales price per transaction was $15,475 vs. $13,293
  • Average sales volume per guest was $2,366 vs. $2,239
  • Guest tours decreased 6% compared to prior year period
  • Other fee–based services revenue was $29.9 million vs. $26.1 million
  • Income before taxes was $41.4 million vs. $21.0 million. Excluding special bonuses totaling $10.0 million paid to certain employees, Bluegreen's income before taxes would have been $31.0 million for the three months ended June 30, 2016
  • EBITDA (3) was $45.2 million vs. $25.1 million
  • “Free cash flow” (cash flow from operating activities less capital expenditures) was $9.6 million compared to $28.7 million during the same period in 2016

Bluegreen Selected Financial Data
First Six Months of 2017 Compared to First Six Months of 2016:

  • System–wide sales of VOIs, net of equity trade allowances (2), were $292.5 million vs. $286.7 million. Included in system–wide sales are sales of VOIs made under Bluegreen's “capital–light” business activities (1), which were $261.8 million vs. $224.4 million, gross of equity trade allowances (2):
    • Sales of third party VOIs — commission basis were $159.8 million vs. $137.7 million and generated sales and marketing commissions of $109.1 million vs. $94.3 million
    • Secondary market sales of VOIs were $79.0 million vs. $61.0 million
    • Just–in–time sales of VOIs were $23.1 million vs. $25.7 million
  • Average sales price per transaction was $15,675 vs. $13,265
  • Average sales volume per guest was $2,403 vs. $2,268
  • Guest tours decreased 6% compared to the prior year period
  • Other fee–based services revenue was $56.1 million vs. $51.6 million
  • Income before taxes was $72.2 million vs. $48.4 million. Excluding special bonuses totaling $10.0 million paid to certain employees, Bluegreen's income before taxes would have been $58.4 million for the six months ended June 30, 2016
  • EBITDA (3) was $79.6 million vs. $55.5 million
  • “Free cash flow” (cash flow from operating activities less capital expenditures) was $9.7 million compared to $60.0 million during the same period in 2016
  1. Bluegreen's sales of VOIs under its “capital–light” business activities include sales of VOIs under fee–based sales and marketing arrangements, just–in–time inventory acquisition arrangements, and secondary market arrangements. Under “just–in–time” arrangements, Bluegreen enters into agreements with third party developers that allow Bluegreen to buy VOI inventory from time to time in close proximity to the timing of when Bluegreen intends to sell such VOIs. Bluegreen also acquires VOI inventory from resorts' homeowner associations (“HOAs”) and other third parties close to the time Bluegreen intends to sell such VOIs. Such VOIs are typically obtained by the HOAs through foreclosure in connection with maintenance fee defaults, and are generally acquired by Bluegreen at a significant discount. Bluegreen refers to sales of inventory acquired through these arrangements as “Secondary Market Sales.”
  2. Equity trade allowances are amounts granted to customers upon trading in their existing VOIs in connection with the purchase of additional VOIs.
  3. See the supplemental tables included in this release for a reconciliation of EBITDA to income before taxes.

Bluegreen Summary for the Three and Six Months Ended June 30, 2017

System–wide sales of VOIs were $162.5 million and $292.5 million during the three and six months ended June 30, 2017, respectively, and $159.7 million and $286.7 million during the three and six months ended June 30, 2016, respectively. The growth in system–wide sales during the three and six months ended June 30, 2017 is primarily attributable to a 16% and 18% increase, respectively, in the average sales price per transaction, partially offset by a decrease of 6% in both the three and six month periods in the number of guest tours as well as a 9% and 11% decrease, respectively, in sales–to–tour conversion ratio. During the six months ended June 30, 2017, Bluegreen began screening the credit qualifications of potential marketing guests, resulting in a higher average transaction price, higher average sales volume per guest, and a lower number of tours. Bluegreen believes its screening of marketing guests will ultimately result in improved efficiencies in its sales process. In the fourth quarter of 2016, Bluegreen temporarily increased its minimum transaction size requirements together with a higher transaction price. The higher average sales transaction price, as well as the temporary increase in the minimum transaction size, resulted in a lower sale–to–tour conversion ratio in the 2017 periods compared to the 2016 periods. In July 2017, Bluegreen adopted new sales materials to support the purchase of lower–point VOIs and reinstated its former lower minimum transaction size requirements. Bluegreen expects this will result in an increase in its sales–to–tour conversion ratio.

Fee–Based Sales commission revenue was $63.9 million and $54.2 million, respectively, during the three months ended June 30, 2017 and 2016 and $109.1 million and $94.3 million, respectively, during the six months ended June 30, 2017 and 2016. The increase in the sales of third–party developer inventory on a commission basis during the 2017 period was due primarily to the factors described above related to the increase in system–wide sales of VOIs. Bluegreen earned an average sales and marketing commission of 68% during the three and six months ended June 30, 2017 compared to 70% and 69% during the three and six months ended June 30, 2016, respectively. The decrease in sales and marketing commissions as a percentage of fee–based sales for the three and six months ended June 30, 2017 is primarily related to an incentive commission of $1.7 million earned in June 2016 related to the achievement of certain sales thresholds pursuant to the terms and conditions of the applicable contractual arrangement, with no such comparable incentive commission earned in the 2017 periods.

Other fee–based services revenue increased 15% to $29.9 million for the three months ended June 30, 2017 and 9% to $56.1 million for the six months ended June 30, 2017. At June 30, 2017 and 2016, Bluegreen managed a total of 47 and 46 timeshare resort properties and hotels, respectively. Fee–based management services revenues increased during the 2017 period compared to the 2016 period primarily as a result of increases in the number of managed resorts and the increase in the number of owners in the Bluegreen Vacation Club.

Selling and marketing expenses were $86.0 million and $153.4 million during the three and six months ended June 30, 2017, respectively, and $81.5 million and $147.4 million during the three and six months ended June 30, 2016, respectively. As a percentage of system–wide sales of VOIs, selling and marketing expenses increased to 53% and 52% during the three and six months ended June 30, 2017, respectively, from 51% during each of the three and six months ended June 30, 2016, respectively.

General and administrative expenses, which represent expenses directly attributable to sales and marketing operations and corporate overhead, were $19.9 million and $41.5 million during the three and six months ended June 30, 2017, respectively, and $33.9 million and $58.1 million during the three and six months ended June 30, 2016, respectively. As a percentage of system–wide sales of VOIs, general and administrative expenses were 12% and 14% during the three and six months ended June 30, 2017, respectively, and 21% and 20% during the three and six months ended June 30, 2016, respectively. The decrease was primarily related to special bonuses totaling $10.0 million which were paid to certain Bluegreen employees in June 2016, with no such comparable bonus paid in June 2017. Additional decreases were realized in personnel costs and consulting fees partially offset by higher information technology related costs.

Net interest spread was $13.9 million during each of the three months ended June 30, 2017 and 2016, respectively, and $28.7 million and $28.2 million during the six months ended June 30, 2017 and 2016, respectively. The increase in net interest spread during the six months ended June 30, 2017 was primarily due to the lower weighted–average cost of borrowing.

Bluegreen generated “free cash flow” (cash flow from operating activities less capital expenditures) of $9.7 million during the six months ended June 30, 2017 compared to $60.0 million during the six months ended June 30, 2016. The decrease in free cash flow was attributable to increased income tax payments of $11.6 million and increased spending on the acquisition and development of inventory. During the first six months of 2017, Bluegreen paid $10.3 million for development expenditures, primarily related to Bluegreen/Big Cedar Vacations, as compared to $5.0 million in the 2016 period. Additionally, Bluegreen paid $15.9 million for Just–in–Time and Secondary Market inventory purchases in the 2017 period compared to $5.3 million in inventory purchases during the 2016 period. Further, operating cash flow decreased due to changes in components of working capital in 2017. These changes were partially offset by the increase in net income.

Additional selected supplemental financial data regarding the results of Bluegreen's operations for the periods ended June 30, 2017, are available on the BBX Capital website, and may be viewed by accessing http://ir.bbxcapital.com/supplemental–financial–data.

BBX Capital Real Estate

BBX Capital Real Estate is active in the acquisition, ownership and management of real estate development projects and investments in joint ventures. BBX Capital Real Estate also holds legacy assets previously owned by BankAtlantic consisting of loans and charged off loans and judgments. Highlights during the second quarter of 2017 include:

  • Equity in earnings of unconsolidated real estate joint ventures was $3.5 million primarily associated with closings on single–family units by the Hialeah Communities joint venture.
  • Recoveries from loans previously charged off of $1.0 million

Middle Market

BBXCapital Middle Market Division is active in the acquisition and management of middle market operating businesses. Highlights of the second quarter of 2017 compared to the second quarter of 2016 include:

Renin

Renin is engaged in the manufacture and design of specialty doors, systems and hardware products in Canada, the United States, and Europe. Highlights of the second quarter of 2017 compared to the second quarter of 2016 include:

  • Trade sales of $17.9 million vs. $16.5 million
  • Gross margin of $5.3 million vs. $4.6 million
  • Gross margin percentage of 29.9% vs. 28.1%
  • Income before taxes of $0.3 million vs. $0.7 million

The improvement in trade sales for the second quarter of 2017 compared to the second quarter of 2016 reflects increased sales volume from Renin's retail channel customers driven by higher sales of its barn door product. The improvement in the gross margin percentage for the comparable periods resulted primarily from a higher proportion of sales of higher margin door and hardware products. The increase in gross margin in the second quarter of 2017 was offset by higher interest expense from maintaining a higher outstanding balance on its revolving line of credit, increased selling, general and administration expenses, and the impact of foreign exchange losses. Selling, general and administrative expenses increased in the second quarter of 2017 compared to the second quarter of 2016 as a result of increased compensation and benefits, higher depreciation expense in connection with technology expenditures, and increased marketing expenses from product promotions.

Other

Other middle market companies were primarily companies acquired by BBX Sweet Holdings in the sugar and confectionery industry. Highlights of the second quarter of 2017 compared to the second quarter of 2016 include:

  • Trade sales of $10.6 million vs. $4.7 million
  • Gross margin of $3.5 million vs. ($2.4) million
  • Gross margin percentage of 32.7% vs. (49.8)%
  • Inventory write–downs of $0.5 million vs. $3.0 million
  • Loss before taxes of ($4.3) million vs. loss of ($6.4) million

On June 16, 2017, the Company acquired It'Sugar, LLC (“It'Sugar”) for a purchase price of $58.5 million, net of cash acquired. Headquartered in Deerfield Beach, Florida, It'Sugar is the largest specialty candy retailer in the United States with 95 locations in 26 states and Washington, DC. It'Sugar's trade sales for the year ended December 31, 2016 totaled approximately $77 million. It'Sugar is anticipated to operate within the BBX Sweet Holdings division and will expand BBX Sweet Holdings' retail footprint in the confectionery industry. During the period from June 16, 2017 to June 30, 2017, It'Sugar contributed revenues and income before income taxes of approximately $4.3 million and $0.7 million, respectively.

We consider BBX Sweet Holdings' other businesses to be in the early development stages and their activities included one–time costs to consolidate manufacturing facilities and upgrade information system applications. The Company's activities relating to its MOD Pizza franchise operations included building infrastructure to support plans to open approximately 60 MOD franchised pizza restaurant locations throughout Florida over the next seven years. The Company currently plans to open its first MOD Pizza franchise location in Parkland, FL, in September 2017 and anticipates opening three additional locations during the remainder of 2017.

For more complete and detailed information regarding BBX Capital and its financial results, business, operations and risks, please see BBX Capital's Quarterly Report on Form 10–Q for the quarter ended June 30, 2017, and BBX Capital's Annual Report on Form 10–K for the year ended December 31, 2016, which are available on the SEC's website, https://www.sec.gov, and on BBX Capital's website, www.BBXCapital.com.

About BBX Capital Corporation:
BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB), formerly BFC Financial Corporation, is a diversified holding company whose principal activities are its ownership of Bluegreen Corporation and, through its Real Estate and Middle Market Divisions, the acquisition, ownership and management of joint ventures and investments in real estate and real estate development projects and middle market operating businesses. As of June 30, 2017, BBX Capital had total consolidated assets of $1.5 billion, shareholders' equity of $486.5 million, and total equity of $533.5 million. At June 30, 2017, BBX Capital's book value per share was $5.01 compared to $4.61 at June 30, 2016.

Bluegreen, founded in 1966 and headquartered in Boca Raton, Florida, is a sales, marketing and management company, focused on the vacation ownership industry. Bluegreen manages, markets and sells the Bluegreen Vacation Club, a flexible, points–based, deeded vacation ownership plan with more than 200,000 owners, 66 resorts, and access to more than 4,300 resorts worldwide. Bluegreen also offers a portfolio of comprehensive, fee–based resort management, financial services, and sales and marketing services, to or on behalf of third parties.

This press release contains forward–looking statements based largely on current expectations of BBX Capital or its subsidiaries that involve a number of risks and uncertainties. All opinions, forecasts, projections, future plans or other statements, other than statements of historical fact, are forward–looking statements and can be identified by the use of words or phrases such as “plans,” “believes,” “will,” “expects,” “anticipates,” “intends,” “estimates,” “our view,” “we see,” “would” and words and phrases of similar meaning. The forward looking statements in this document are also 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”), and involve substantial risks and uncertainties. We can give no assurance that such expectations will prove to have been correct. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward–looking statements contained herein. Forward–looking statements are based largely on our expectations and are subject to a number of risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control. When considering forward–looking statements, the reader should keep in mind the risks, uncertainties and other cautionary statements made in this report. The reader should not place undue reliance on any forward–looking statement, which speaks only as of the date made. This document also contains information regarding the past performance of the Company, its subsidiaries and their respective investments and operations, and the reader should note that prior or current performance is not a guarantee or indication of future performance. Future results could differ materially as a result of a variety of risks and uncertainties. Risks and uncertainties include the risk that quarterly dividend payments may not be declared in the future, on a regular basis or as anticipated, if at all. Some factors which may affect the accuracy of the forward–looking statements apply generally to the industries in which the Company operates, including the development, operation, management and investment in residential and commercial real estate, the resort development and vacation ownership industries in which Bluegreen operates, the home improvement industry in which Renin operates, and the sugar and confectionary industry in which BBX Sweet Holdings and It'Sugar operate as well as the pizza franchise industry in which the Company has recently commenced activities. Risks and uncertainties include, without limitation, risks associated with the ability to successfully implement currently anticipated plans and generate earnings, long term growth, and increased shareholder value; the performance of entities in which BBX Capital has made investments may not be profitable or perform as anticipated; BBX Capital is dependent upon dividends from its subsidiaries, principally Bluegreen, to fund its operations; BBX Capital's subsidiaries may not be in a position to pay dividends, dividend payments may be subject to certain restrictions, including restrictions contained in debt instruments, and may be subject to declaration by such subsidiary's board of directors or managers; the risks relating to acquisitions including acquisitions in diverse industries; risks relating to the monetization of BBX Capital's legacy assets; risks related to litigation and other legal proceedings involving BBX Capital and its subsidiaries. The Company's investment in Bluegreen Corporation exposes the Company to risks of Bluegreen's business and its ability to pay dividends to BBX Capital, and risks inherent in the vacation ownership industry, including the risk that Bluegreen's marketing expenses will increase; and the risk that Bluegreen may not be successful in increasing or expanding its capital–light business activities because of changes in economic conditions or otherwise, and such fee–based service activities may not be profitable, which would have an adverse impact on its results of operations and financial condition; and the risk that the Bluegreen's strategy to grow profitability and increase long–term value may not be realized as anticipated, if at all. In addition, with respect to BBX Capital's Real Estate and Middle Market Division, the risks and uncertainties include risks relating to the real estate market and real estate development, the risk that joint venture partners may not fulfill their obligations and the projects may not be developed as anticipated or be profitable, and contractual commitments may not be completed on the terms provided or at all; risks relating to acquisitions of operating businesses, including integration risks, risks regarding achieving profitability, foreign currency transaction risk, goodwill and other intangible impairment risks; risks related to the recently completed acquisition of It'Sugar, including risk that the integration of It'Sugar may not be completed on a timely basis, or as anticipated, that the revenue anticipated to be generated by its operations will not be achieved, that net income may not be generated when anticipated or at all, and that the transaction may not be advantageous and the Company may not realize the anticipated benefits of the acquisition. Additional risks and uncertainties are described in BBX Capital's Quarterly Report on Form 10–Q for the quarter ended June 30, 2017, and BBX Capital's Annual Report on Form 10–K for the year ended December 31, 2016, and are available to view on the SEC's website, https://www.sec.gov, and on BBX Capital's website, www.BBXCapital.com. The reader should not place undue reliance on any forward–looking statement, which speaks only as of the date made. BBX Capital cautions that the foregoing factors are not exclusive, and we do not undertake, and specifically disclaim any obligation, to update or supplement any forward–looking statements whether as a result of changes in circumstances, new information, subsequent events or otherwise.

The following supplemental table represents BBX Capital's Segment Statement of Operations (unaudited) for the three months ended June 30, 2017 (in thousands):

  Reportable Segments            
      BBX Capital       Corporate        
      Real       Expenses &       Segment
  Bluegreen   Estate   Renin   Other   Eliminations   Total
Revenues:                      
  Sales of VOIs $ 56,694           56,694
  Fee–based sales commission revenue   63,915           63,915
  Other fee–based services revenue   29,936           29,936
  Trade sales       17,895   10,547     28,442
  Interest income   21,990   636     249   (2,000)   20,875
  Net gains on sales of assets     1,884         1,884
  Other revenue     968     251   (99)   1,120
  Total revenues   172,535   3,488   17,895   11,047   (2,099)   202,866
                         
Costs and Expenses:                        
  Cost of sales of VOIs   1,135           1,135
  Cost of other fee–based services   16,311           16,311
  Cost of trade sales       12,550   7,842     20,392
  Interest expense   8,077     102   3,094   (2,000)   9,273
  Recoveries from loan losses, net     (999)         (999)
  Asset impairments, net     58         58
 
 
Selling, general and administrative
expenses
                       
  105,845   2,371   4,570   23,117   (99)   135,804
  Total costs and expenses   131,368   1,430   17,222   34,053   (2,099)   181,974
                         
 
 
Equity in net earnings of unconsolidated real estate joint ventures                        
    3,455         3,455
  Foreign exchange loss       (398)       (398)
  Other income   244       82     326
    Income (loss) before income taxes   41,411   5,513   275   (22,924)     24,275
                           

The following supplemental table represents BBX Capital's Segment Statement of Operations (unaudited) for the three months ended June 30, 2016 (in thousands):

  Reportable Segments            
      BBX Capital       Corporate        
      Real       Expenses &       Segment
  Bluegreen   Estate   Renin   Other   Eliminations   Total
Revenues:                      
  Sales of VOIs $68,542           68,542
  Fee–based sales commission revenue 54,188           54,188
  Other fee–based services revenue 26,056           26,056
  Trade sales     16,523   4,727     21,250
  Interest income 22,237   849     141   (2,000)   21,227
  Net gains on sales of assets   337         337
  Other revenue   1,456     336   (273)   1,519
  Total revenues 171,023   2,642   16,523   5,204   (2,273)   193,119
                       
Costs and Expenses:                      
  Cost of sales of VOIs 9,666           9,666
  Cost of other fee–based services 16,577           16,577
  Cost of trade sales     11,878   7,081     18,959
  Interest expense 8,378     78   3,282   (2,000)   9,738
  Recoveries from loan losses, net   (6,287)         (6,287)
  Asset impairments, net   1,759         1,759
  Selling, general and administrative
expenses
                     
115,359   3,094   3,954   20,070   (273)   142,204
  Total costs and expenses 149,980   (1,434)   15,910   30,433   (2,273)   192,616
                       
  Equity in net earnings of unconsolidated real estate joint ventures                      
  1,655         1,655
  Foreign exchange gain     110       110
  Other (loss) income (48)       83     35
    Income (loss) before income taxes 20,995   5,731   723   (25,146)     2,303
                         

The following supplemental table represents BBX Capital's Segment Statement of Operations for the six months ended June 30, 2017 (in thousands):

  Reportable Segments            
      BBX Capital       Corporate        
      Real       Expenses &       Segment
  Bluegreen   Estate   Renin   Other   Eliminations   Total
Revenues:                      
  Sales of VOIs $111,151           111,151
  Fee–based sales commission revenue 109,069           109,069
  Other fee–based services revenue 56,056           56,056
  Trade sales     35,286   16,669     51,955
  Interest income 44,376   1,218     436   (4,000)   42,030
  Net gains on sales of assets   2,179         2,179
  Other revenue   2,059     432   (239)   2,252
  Total revenues 320,652   5,456   35,286   17,537   (4,239)   374,692
                       
Costs and Expenses:                      
  Cost of sales of VOIs 4,453           4,453
  Cost of other fee–based services 33,374           33,374
  Cost of trade sales     25,132   13,333     38,465
  Interest expense 15,721     181   6,195   (4,000)   18,097
  Recoveries from loan losses, net   (4,093)         (4,093)
  Asset impairments, net   45         45
  Net gains on cancellation of                      
  junior subordinated debentures       (6,929)     (6,929)
  Litigation costs and penalty reimbursements       (9,606)     (9,606)
  Selling, general and administrative
expenses
                     
194,872   4,902   8,799   41,665   (239)   249,999
  Total costs and expenses 248,420   854   34,112   44,658   (4,239)   323,805
                       
  Equity in net earnings of unconsolidated real estate joint ventures                      
  7,169         7,169
  Foreign exchange loss     (207)       (207)
  Other (expense) income (1)       152     151
    Income (loss) before taxes $72,231   11,771   967   (26,969)     58,000
                       

The following supplemental table represents BBX Capital's Segment Statement of Operations for the six months ended June 30, 2016 (in thousands):

    Reportable Segments            
        BBX Capital       Corporate        
        Real       Expenses &       Segment
    Bluegreen   Estate   Renin   Other   Eliminations   Total
Revenues:                        
  Sales of VOIs $ 124,912           124,912
  Fee–based sales commission revenue   94,335           94,335
  Other fee–based services revenue   51,611           51,611
  Trade sales       30,298   11,914     42,212
  Interest income   44,233   1,868     267   (4,000)   42,368
  Net gains on sales of assets     291         291
  Other revenue     2,985     649   (497)   3,137
  Total revenues   315,091   5,144   30,298   12,830   (4,497)   358,866
                         
Costs and Expenses:                        
  Cost of sales of VOIs   13,582           13,582
  Cost of other fee–based services   31,587           31,587
  Cost of trade sales       22,041   11,965     34,006
  Interest expense   16,052     142   6,611   (4,000)   18,805
  Recoveries from loan losses, net     (8,035)         (8,035)
  Asset impairments, net     1,722         1,722
  Selling, general and administrative
expenses
                       
  205,534   6,771   7,622   34,829   (497)   254,259
  Total costs and expenses   266,755   458   29,805   53,405   (4,497)   345,926
                         
  Equity in net earnings of unconsolidated real estate joint ventures                        
    1,313         1,313
  Foreign exchange gain       320       320
  Other income   86       104     190
    Income (loss) before income taxes $ 48,422   5,999   813   (40,471)     14,763
                           

The following tables present Bluegreen's EBITDA, defined below, for the three and six months ended June 30, 2017 and 2016, as well as a reconciliation of EBITDA to income before taxes (unaudited) (in thousands):

  For the Three Months Ended   For the Six Months Ended
  June 30,   June 30,
  2017   2016   2017   2016
Bluegreen segment income before income taxes $41,411   20,995   72,231   48,422
  Add/(Less):              
  Interest income (other than interest earned on VOI notes receivable) (2,091)   (2,035)   (4,195)   (4,055)
  Interest expense 8,077   8,378   15,721   16,052
  Interest expense on Receivable–Backed Debt (4,544)   (4,668)   (8,850)   (9,748)
  Franchise Taxes 28   26   55   78
  Depreciation and Amortization 2,310   2,374   4,669   4,725
Bluegreen segment EBITDA $45,191   25,070   79,631   55,474
               

EBITDA is defined as earnings, or income before taxes, before taking into account interest income (excluding interest earned on VOI notes receivable), interest expense (excluding interest expense incurred on financings related to Bluegreen's receivable–backed notes payable), franchise taxes, and depreciation and amortization. For purposes of the EBITDA calculation, no adjustments were made for interest income earned on Bluegreen's VOI notes receivable or the interest expense incurred on debt that is secured by such notes receivable because they are both considered to be part of the operations of Bluegreen's business.

The Company considers Bluegreen's EBITDA to be an indicator of Bluegreen's operating performance, and it is used to measure Bluegreen's ability to service debt, fund capital expenditures and expand its business. EBITDA is also used by companies, lenders, investors and others because it excludes certain items that can vary widely across different industries or among companies within the same industry. For example, interest expense can be dependent on a company's capital structure, debt levels and credit ratings. Accordingly, the impact of interest expense on earnings can vary significantly among companies. The tax positions of companies can also vary because of their differing abilities to take advantage of tax benefits and because of the tax policies of the jurisdictions in which they operate. As a result, effective tax rates and provision for income taxes can vary considerably among companies. EBITDA also excludes depreciation and amortization because companies utilize productive assets of different ages and use different methods of both acquiring and depreciating productive assets. These differences can result in considerable variability in the relative costs of productive assets and the depreciation and amortization expense among companies.

Titan Medical Reports Second Quarter 2017 Financial Results

TORONTO, ON—(Marketwired – August 08, 2017) – Titan Medical Inc. (TSX: TMD) (OTCQB: TITXF), a medical device company focused on the design and development of a robotic surgical system for application in minimally invasive surgery (MIS), announces financial results for the three and six months ended June 30, 2017.

All financial results are reported in U.S. dollars, unless otherwise stated. The unaudited condensed interim financial statements and management's discussion and analysis for the period ended June 30, 2017 may be viewed on SEDAR at www.sedar.com.

David McNally, President and CEO of Titan Medical, said, “The second quarter of 2017 was exciting and productive as we took several important steps to advance the development of our SPORT Surgical System (SPORT). Importantly, we completed the initial formative human factor studies. We also began the process of partnering with renowned robotic surgery training centers for feasibility and validation studies. We signed the first of three contemplated agreements with Florida Hospital Nicholson Center in Orlando during the second quarter. These studies will support our regulatory filings and we are on track to confirm the signing of the remaining two facilities during the third quarter. We expect to begin conducting live animal studies in the fourth quarter of 2017.”

Mr. McNally continued, “We strengthened our executive team with the recruitment of Curtis Jensen as Vice President of Quality and Regulatory Affairs. In addition, we continued to gain visibility for Titan Medical and for SPORT in the medical device industry. In June we were named the Best Canadian IP Department at the 2017 International Legal IP Alliance Summit Awards. We also completed a two–part public offering and raised gross proceeds of approximately CDN $6.9 million, which will allow us to begin feasibility and validation studies.”

Operational highlights for the second quarter of 2017 and recent weeks include:

  • On May 17, 2017 Titan announced the completion of initial formative human factor studies for SPORT.
  • On April 26, 2017 Titan announced it was granted a U.S. patent related to SPORT robotic instruments.
  • On April 3, 2017 Titan announced the hiring of Curtis Jensen as Vice President of Quality and Regulatory Affairs.
  • On June 7, 2017 Titan announced it was granted a European patent related to SPORT robotic instruments.
  • On June 19, 2017 Titan was named Best Canadian IP Department at the 2017 International Legal IP Alliance Summit & Awards.
  • On June 29, 2017 Titan announced the first closing of a public offering of units.
  • On July 10, 2017 Titan announced it will partner with Florida Nicholson Center for SPORT feasibility and validation studies.
  • On July 21, 2017 Titan announced the second closing of a public offering of units.
  • On August 1, 2017 Titan announced Longtai Medical agreed to convert its distributorship deposit to Titan equity.

Financial highlights for the second quarter of 2017 and recent weeks include (all comparisons are with the second quarter of 2016, unless otherwise stated):

  • Research and development expenses for the second quarter of 2017 were $2,704,054, compared with $7,662,739.
  • Net and comprehensive loss for the second quarter of 2017 was $1,865,913, compared with a net and comprehensive loss of $7,934,874.
  • Completed a two–part public offering for gross proceeds of CDN $6,905,228.
  • Cash and cash equivalents as of June 30, 2017 were $6,838,358, compared with $4,339,911 as of December 31, 2016.

About Titan Medical Inc.

Titan Medical Inc. is focused on the design and development through the planned commercialization of a robotic surgical system for use in MIS. The Company's SPORT Surgical System, currently under development, includes a surgeon–controlled robotic platform that features multi–articulating instruments for performing MIS procedures through a single incision. The surgical system also includes a workstation that provides a surgeon with an advanced ergonomic interface to the robotic platform for controlling the instruments and provides a 3D high–definition endoscopic view inside a patient's body. The SPORT Surgical System is designed to enable surgeons to perform a broad set of general abdominal, gynecologic and urologic procedures. For more information, visit the Company's website at www.titanmedicalinc.com.

Forward–Looking Statements

This news release contains “forward–looking statements” which reflect the current expectations of management of the Company's future growth, results of operations, performance and business prospects and opportunities. Wherever possible, words such as “may”, “would”, “could”, “will”, “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, “potential for” and similar expressions have been used to identify these forward–looking statements. These statements reflect management's current beliefs with respect to future events and are based on information currently available to management. Forward–looking statements involve significant risks, uncertainties and assumptions. Many factors could cause the Company's actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by such forward–looking statements, including, without limitation, those listed in the “Risk Factors” section of the Company's Annual Information Form dated March 31, 2017 (which may be viewed at www.sedar.com). Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward looking statements prove incorrect, actual results, performance or achievements may vary materially from those expressed or implied by the forward–looking statements contained in this news release. These factors should be considered carefully, and prospective investors should not place undue reliance on the forward–looking statements. Although the forward–looking statements contained in the news release are based upon what management currently believes to be reasonable assumptions, the Company cannot assure prospective investors that actual results, performance or achievements will be consistent with these forward–looking statements.

iAnthus Addresses Speculation Surrounding CSE Listing Policies and CDS Policy on Settlement of Securities

TORONTO, ON and NEW YORK, NY—(Marketwired – August 08, 2017) – iAnthus Capital Holdings, Inc. (“iAnthus” or “the Company”), (CSE: IAN) (CSE: IAN.CN) (CNSX: IAN) (OTCQB: ITHUF), which owns, operates, and partners with licensed cannabis operations throughout the United States, is providing the following statement with respect to Canadian Securities Exchange (“CSE”) listing policies as well as recent media reports suggesting that The Canadian Depository for Securities Limited (“CDS”) may be considering a policy change with respect to issuers with U.S. cannabis assets.

On September 7, 2016, iAnthus listed on the CSE under the ticker symbol IAN. iAnthus' listing remains active and in compliance with the CSE's policies. iAnthus is one of approximately 10 issuers listed on the CSE with exposure to the US cannabis sector. As detailed in the CSE's news release and subsequent notice dated August 4, 2017 (the “CSE Policy Guidance”), Richard Carleton, the CEO of the CSE, confirmed the CSE's position on U.S. cannabis listings. In the CSE Policy Guidance Mr. Carleton stated that:

“…[the CSE is] pleased to be receiving growing interest from entrepreneurs in the U.S. cannabis space, where a rapidly evolving legal framework has created significant investment opportunities. Provided that these companies offer appropriate risk disclosure and demonstrate that they are operating in accordance with applicable laws, we believe that they are valuable additions to our well–regulated exchange.”

The CSE Policy Guidance was in response to recent media reports indicating that CDS may be considering a policy change with respect to issuers with U.S. cannabis assets. As background, CDS, a wholly owned subsidiary of TMX Group Limited, is the principal clearing house in Canada responsible for the custody and movement of securities, the post–trade processing of securities transactions, and the collection and distribution of entitlements relating to securities deposited by participants. In other words, when a security is traded and clears through CDS, CDS is the party responsible for ensuring that the buyer receives the securities and the seller receives the payment.

iAnthus is aware of speculation surrounding CDS; specifically, media reports have suggested that CDS may be considering a policy change which, if implemented, could disqualify CDS settlement of securities of issuers with U.S. cannabis assets.

On the facts, CDS has not issued any policy statement indicating that it is formally considering a policy change to disqualify the settlement of securities of issuers with U.S. cannabis assets. Likewise, none of the securities regulators in Canada have issued a formal statement on settlement rules pertaining to issuers with U.S. cannabis assets. Simply put, at this time we are not aware of any formal decision by CDS, or any of the securities regulators in Canada, to disqualify or restrict settlement of securities of issuers with U.S. cannabis assets.

We are actively monitoring publicly announced developments at CDS but we do not believe that any decision on this matter is imminent. Further, CDS is highly regulated by various securities regulators in Canada including the Ontario Securities Commission, the Autorité des marchés financiers, and the British Columbia Securities Commission. Accordingly, even if CDS wanted to unilaterally implement a policy change it is not readily apparent that CDS has the authority to do so.

iAnthus recently obtained eligibility with The Depository Trust Company (“DTC”) in April 2017, allowing iAnthus to facilitate trading and settlement for iAnthus shareholders. DTC is the largest securities depository in the world and holds over US$35 trillion of securities on deposit. Many Canadian brokerages are fully equipped for and settle through both CDS and DTC, and in the event of any CDS policy changes, iAnthus expects to be able to clear trades through DTC. Additional information pertaining to iAnthus' DTC eligibility can be found in iAnthus' news release dated April 3, 2017 (a copy of which is available under the Company's SEDAR profile at www.sedar.com).

The total market capitalization of Canadian public companies with US cannabis exposure is over C$1.5 billion, representing significant interest from institutional investors, brokerages and other shareholders. We will continue to monitor developments at CDS and we expect to issue further news releases if any developments occur.

About iAnthus Capital Holdings, Inc.

iAnthus Capital Holdings, Inc. provides investors diversified exposure to best–in–class licensed cannabis cultivators, processors and dispensaries throughout the United States. Founded by entrepreneurs with decades of experience in operations, investment banking, corporate finance, law and healthcare services, iAnthus provides a unique combination of capital and hands–on operating and management expertise. The Company harnesses these skills to support operations across five states. For more information, visit www.iAnthuscapital.com.

Forward Looking Statements

Statements in this news release that are forward–looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in iAnthus' periodic filings with Canadian securities regulators. When used in this news release, words such as “will, could, plan, estimate, expect, intend, may, potential, believe, should, aware” and similar expressions, are forward–looking statements.

Forward–looking statements may include, without limitation, statements including statements related to CDS stock–clearing policy for issuers with US cannabis assets, securities regulators stock–clearing policy for issuers with U.S. cannabis assets, clearing of the Company's securities through DTC, and future news releases.

Although iAnthus has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward–looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under US Federal laws; change in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical–use and adult–use marijuana industry; and regulatory or political change.

There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward–looking statements may differ materially from actual results or events.

Accordingly, readers should not place undue reliance on forward–looking statements. The forward–looking statements in this news release are made as of the date of this release. iAnthus disclaims any intention or obligation to update or revise such information, except as required by applicable law, and iAnthus does not assume any liability for disclosure relating to any other company mentioned herein.

The Canadian Securities Exchange has not reviewed, approved or disapproved the content of this news release.

Polaris Infrastructure Announces 2017 Second Quarter Results

TORONTO, ON—(Marketwired – August 08, 2017) – Polaris Infrastructure Inc. (TSX: PIF) (“Polaris Infrastructure” or the “Company”), a Toronto–based company engaged in the operation, acquisition and development of renewable energy projects in Latin America, is pleased to report its financial and operating results for the quarter ended June 30, 2017. This earnings release should be read in conjunction with Polaris Infrastructure's financial statements and management's discussion and analysis, which are available on the Company's website at www.polarisinfrastructure.com and have been posted on SEDAR at www.sedar.com. The dollar figures below are denominated in US Dollars unless noted otherwise.

HIGHLIGHTS

San Jacinto–Tizate Project Highlights

  • Quarterly revenue growth of 31% year–over–year: The San Jacinto–Tizate Power Plant (the “San Jacinto project”) generated 129,233 MWh (net) (an average of 59.2 MW (net)), resulting in revenue of $15.9 million for the three months ended June 30, 2017, versus revenue of $12.1 million on generation of 101,515 MWh (net) (an average of 46.5 MW (net)) in the prior year period. The 31% revenue increase was due to significantly higher average production in 2017 as well as the impact of the 3% annual tariff increase.
  • Strong Adjusted EBITDA stemming from revenue growth: The Company generated Adjusted EBITDA (a non–GAAP measure) of $13.6 million in the three months ended June 30, 2017, a 38% increase from the prior year period. This growth, stemming from a strong revenue increase and nominal increase in costs, reflects the core operating leverage built into San Jacinto project. See Use of Non–GAAP Measures section below for reconciliation of Adjusted EBITDA to Total income (loss) and comprehensive income (loss).
  • Progress with 2017 Drilling Program including new injection well: The Company's wholly–owned operating subsidiary, Polaris Energy Nicaragua S.A. (“PENSA”), which owns and operates the San Jacinto project, concluded drilling of SJ 11–2, a new injection well, in early June 2017. The well was completed on–time and on–budget, after successfully hitting the targeted zone of permeability. Based on injectivity testing completed to date, SJ 11–2 is expected to accept a significant volume of geothermal fluids for reinjection, further increasing operating flexibility with respect to the long–term management of the San Jacinto reservoir. We anticipate SJ 11–2 being available for service in August 2017, following completion of construction and fabrication activities.
  • Successful drilling execution related to possible new San Jacinto production well: Immediately following drilling of SJ 11–2, PENSA proceeded with drilling SJ 4–2, a planned new production well. Having reached the targeted depth, drilling of SJ 4–2 was concluded on July 31, 2017. Preliminary downhole measurements indicate the presence of permeability, while temperature of the well continues to increase and wellhead pressure is adequate. Accordingly, PENSA plans to start testing the well within the next few weeks, at which point we should have a preliminary view as to the productive capacity of SJ 4–2. Our estimate is that SJ 4–2 could be connected to the plant and contributing incremental steam flows by mid–September 2017.
  • Further production well drilling to commence in early September: PENSA anticipates drilling of a second new production well, SJ 12–4, as part of the 2017 drilling program, to commence on approximately September 7, 2017. Further, we have confirmed rig availability and have identified targets, so drilling a third new production well is something we will assess in the coming weeks, based in part on the outcome of drilling SJ 4–2 and SJ 12–4.

FINANCIAL OVERVIEW

The financial results of Polaris Infrastructure for the three and six months ended June 30, 2017 and 2016 are summarized below:

               
  Three months ended   Six months ended  
(all $ figures in thousands except income (loss) per share) June 30, 2017   June 30, 2016   June 30, 2017   June 30, 2016  
Average production 59.2 MW (net ) 46.5 MW (net ) 54.8 MW (net ) 47.4 MW (net )
Total revenue $ 15,913   $ 12,145   $ 29,281   $ 24,705  
Adjusted EBITDA (1) 13,581   9,838   24,475   20,217  
Finance costs (4,354 ) (4,239 ) (8,650 ) (8,486 )
Total earnings (loss) attributable to Owners of the Company 1,189   (2,305 ) 22   (4,375 )
Total earnings (loss) per share (basic and diluted) attributable to Owners of the Company $0.08   ($0.15 ) $0.00   ($0.28 )
     
  As at
June 30, 2017
As at
December 31, 2016
Total assets $ 408,264 $ 409,248
Long–term debt 161,342 166,238
Total liabilities 218,504 214,590
Cash 43,999 45,739
Working capital 38,377 43,921
(1)

Refer to Use of Non–GAAP Measures section for further details with respect to calculation of Adjusted EBITDA.

For the three months ended June 30, 2017, the Company reported revenue of $15.9 million and Adjusted EBITDA of $13.6 million, compared to revenue of $12.1 million and Adjusted EBITDA of $9.8 million, for the same period in 2016. The increase in revenue resulted from the 3% annual tariff increase combined with a 27% increase in power generation at the San Jacinto project. The improvement in Adjusted EBITDA reflects increased contribution from the San Jacinto plant more than offsetting a modest increase in costs. See Use of Non–GAAP Measures section below for reconciliation of Adjusted EBITDA to Total loss and comprehensive loss.

For the six months ended June 30, 2017, the Company reported revenue of $29.3 million and Adjusted EBITDA of $24.5 million, compared to revenue of $24.7 million and Adjusted EBITDA of $20.2 million, for the same period in 2016. The increase in revenue resulted from the 3% annual tariff increase combined with a 15% increase in average power generation at the San Jacinto project, which came despite the impact of planned downtime for turbine maintenance in the first quarter of 2017, which did not occur in the prior year. The improvement in Adjusted EBITDA reflects increased revenue from the San Jacinto plant with minimal accompanying cost increases. See Use of Non–GAAP Measures section below for reconciliation of Adjusted EBITDA to Total loss and comprehensive loss.

For the six months ended June 30, 2017, the Company had net operating cash inflows of $15.0 million, net investing cash outflows of $8.0 million and net financing cash outflows of $8.7 million. At June 30, 2017, the Company had cash of $44.0 million, of which $25.2 million was held for current use in the San Jacinto project.

“We are pleased with our achievements during the second quarter of 2017,” noted Marc Murnaghan, Chief Executive Officer of Polaris Infrastructure. “Our 2017 drilling program at the San Jacinto project is off to a good start and we are optimistic that we will bring additional production online later this year. We look forward to providing further updates with respect to the outcome of the 2017 drilling program in the weeks ahead.”

Polaris Infrastructure will hold its earnings call to discuss financial and operating results for the quarter ended June 30, 2017 on Wednesday, August 9, 2017 at 10:00 am EDT. To listen to the call, please dial +1 (647) 427–2311 or +1 (866) 521–4909.
 
A digital recording of the earnings call will be available for replay two hours after the call's completion, until August 15, 2017. Please dial +1 (416) 621–4642 or +1 (800) 585–8367; Conference ID: 51249271.

About Polaris Infrastructure

Polaris Infrastructure is a Toronto–based company engaged in the operation, acquisition and development of renewable energy projects in Latin America. Currently, the Company operates a 72MW geothermal project located in Nicaragua.

USE OF NON–GAAP MEASURES

Certain measures in this document do not have any standardized meaning as prescribed by International Financial Reporting Standards (“IFRS”) and, therefore, are not considered generally accepted accounting principles (“GAAP”) measures. Where non–GAAP measures or terms are used, definitions are provided. In this document and in the Company's consolidated financial statements, unless otherwise noted, all financial data is prepared in accordance with IFRS.

EBITDA is a non–GAAP metric used by many investors to compare companies on the basis of ability to generate cash from operations. The Company uses Adjusted EBITDA to assess its operating performance without the effects of (as applicable): current and deferred tax expense, finance costs, interest income, other gains and losses, impairment loss, depreciation and amortization of plant assets, share–based compensation and other non–recurring items. The Company adjusts for these factors as they may be non–cash, unusual in nature and are not factors used by management for evaluating the performance of the Company. The Company believes the presentation of this measure will enhance an investor's understanding of its operating performance. Adjusted EBITDA is not intended to be representative of cash provided by operating activities or results of operations determined in accordance with GAAP. The table below reconciles between Adjusted EBITDA and Net income (loss) and comprehensive Income (loss), calculated in accordance with IFRS.

                 
Reconciliation of Adjusted EBITDA to total loss and comprehensive loss attributable to Owners of the Company  
  Three months ended   Six months ended  
(in thousands) June 30, 2017   June 30, 2016   June 30, 2017   June 30, 2016  
Total earnings (loss) attributable to Owners of the Company $ 1,189   $ (2,305 ) $ 22   $ (4,375 )
Add (deduct):                        
  Loss attributable to non–controlling interest   24     (19 )   15     (36 )
  Current and deferred tax (expense) recovery   2,020     1,760     4,179     3,596  
  Finance costs   4,354     4,239     8,650     8,486  
  Interest income   (149 )   (93 )   (239 )   (168 )
  Other losses   102     23     234     165  
  Depreciation and amortization of plant assets   5,415     5,955     10,797     11,943  
  Share–based compensation   626     278     817     606  
Adjusted EBITDA $ 13,581   $ 9,838   $ 24,475   $ 20,217  

Cautionary Statements

This news release contains certain “forward–looking information” which may include, but is not limited to, statements with respect to future events or future performance, management's expectations regarding the Company's growth, results of operations, estimated future revenue, requirements for additional capital, revenue and production costs, future demand for and prices of electricity, business prospects and opportunities. In addition, statements relating to estimates of recoverable geothermal energy “reserves” or “resources” or energy generation are forward–looking information, as they involve implied assessment, based on certain estimates and assumptions, that the geothermal resources and reserves described can be profitably produced in the future. Such forward–looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward–looking statements can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “predicts”, “intends”, “targets”, “aims”, “anticipates” or “believes” or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions “may”, “could”, “should”, “would”, “might” or “will” be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward–looking information. Such factors include, among others, general business, economic, competitive, political and social uncertainties; the actual results of current geothermal energy production, development and/or exploration activities and the accuracy of probability simulations prepared to predict prospective geothermal resources; changes in project parameters as plans continue to be refined; possible variations of production rates; failure of plant, equipment or processes to operate as anticipated; accidents, labor disputes and other risks of the geothermal industry; political instability or insurrection or war; labor force availability and turnover; delays in obtaining governmental approvals or in the completion of development or construction activities, or in the commencement of operations; the ability of the Company to continue as a going concern and general economic conditions, as well as those factors discussed in the section entitled “Risk Factors” in the Company's Annual Information Form. These factors should be considered carefully and readers of this news release should not place undue reliance on forward–looking information.

Although the forward–looking information contained in this news release is based upon what management believes to be reasonable assumptions, there can be no assurance that such forward–looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward–looking information. The information in this news release, including such forward–looking information, is made as of the date of this news release and, other than as required by applicable securities laws, Polaris Infrastructure assumes no obligation to update or revise such information to reflect new events or circumstances.

Polaris Infrastructure Announces Quarterly Dividend Increase

TORONTO, ON—(Marketwired – August 08, 2017) – Polaris Infrastructure Inc. (TSX: PIF) (“Polaris Infrastructure” or the “Company”), a Toronto–based company engaged in the operation, acquisition and development of renewable energy projects in Latin America, is pleased to announce that its board of directors has declared a quarterly dividend of US$0.14 per common share outstanding. This dividend will be paid on August 28, 2017 to shareholders of record at the close of business on August 17, 2017.

The US$0.14 dividend per share related to the second quarter of 2017 equates to approximately a 37% payout ratio, while on a year to date basis, reflecting the previously declared and paid dividend of $0.12 per share, equates to a 44% payout ratio.

The increase in quarterly dividend (from US$0.12 to US$0.14) reflects a 17% increase in dividend, and an aggregate 40% increase from the US$0.10 per share quarterly dividend initiated in March of 2016. The latest dividend increase is viewed as sustainable and falls towards the bottom of the Company's target payout range. The board of directors of Polaris Infrastructure remains committed to paying a quarterly dividend and will evaluate further dividend increases if considered appropriate at such time.

Marc Murnaghan, Chief Executive Officer of Polaris Infrastructure commented, “We are pleased with the improved free cash flow generation of the San Jacinto project, and remain committed to strategically investing further, where we think opportunity exists to further improve power generation. While continuing to balance the importance of dividends with our growth objectives, we believe increasing our quarterly dividend to $0.14 per share is sustainable and leaves us well–positioned to explore external growth opportunities.”

About Polaris Infrastructure

Polaris Infrastructure is a Toronto–based company engaged in the operation, acquisition and development of renewable energy projects in Latin America. Currently, the Company operates a 72MW geothermal project located in Nicaragua.