315858--3/30/2006--BFC_FINANCIAL

related topics

{loan, real, estate}

{stock, price, share}

{regulation, change, law}

{acquisition, growth, future}

{stock, price, operating}

{financial, litigation, operation}

{personnel, key, retain}

{debt, indebtedness, cash}

{cost, operation, labor}

{gas, price, oil}

{loss, insurance, financial}

{competitive, industry, competition}

{cost, contract, operation}

{control, financial, internal}

{provision, law, control}

{product, liability, claim}

{product, market, service}

{tax, income, asset}

Events in Florida, where our investments are currently concentrated, could adversely impact our results and future growth. Our future acquisitions may reduce our earnings, require us to obtain additional financing and expose us to additional risks. Our activities and our subsidiaries activities are subject to a wide range of bank regulatory requirements that could have a material adverse effect on our business. We have many competitors who may have greater financial resources or operate under fewer regulatory constraints. Our success depends on key management, the loss of which could disrupt our business operations. Certain members of our Board of Directors and certain of our executive officers are also directors and executive officers of our affiliates. Recent changes in accounting standards could limit the desirability of granting stock options, which could harm our ability to attract and retain employees, and could also negatively impact our results of operations. Failure to achieve and maintain effective internal controls in accordance with Section 404 of the Sarbanes-Oxley Act could have a material adverse effect on our business and stock price. Risks Associated with Our Investment in Benihana, Inc. and the Restaurant Industry We May Issue Additional Securities In The Future. Alan B. Levan And John E. Abdo s Control Position May Adversely Affect The Market Price Of Our Common Stock. Our control position may adversely affect the market price of BankAtlantic Bancorp s and Levitt s Class A Common Stock. The terms of our articles of incorporation, which establish fixed relative voting percentages between our Class A Common Stock and Class B Common Stock, may not be well accepted by the market. We have enacted a shareholder rights plan that may have anti-takeover effects and could result in substantial dilution to holders of Class A Common Stock. Changes in interest rates could adversely affect our net interest income and profitability. BankAtlantic has disclosed issues regarding its compliance with the USA PATRIOT Act, anti-money laundering laws and the Bank Secrecy Act which may subject it to fines and regulatory actions, including restrictions on its ability to pay dividends. BankAtlantic s Florida s Most Convenient Bank initiative has created increased operating expenses, which may have an adverse impact on our earnings. BankAtlantic s loan portfolio subjects it to high levels of credit risk. BankAtlantic may be impacted by a concentration in interest-only residential loans. An inadequate allowance for loan losses would result in reduced earnings. BankAtlantic Bancorp s ability to service its debt and pay dividends depends on dividends from BankAtlantic, which are subject to regulatory limits. Adverse events in Florida, where our business is currently concentrated, could adversely impact our results and future growth. We engage in the securities business through Ryan Beck, which subjects us to the risks of its business. We are controlled by BFC Corporation and its control position may adversely affect the market price of our Class A common stock. Our activities and our subsidiaries activities are subject to a wide range of bank regulatory requirements that could have a material adverse effect on our business. Our portfolio of equity securities subjects us to equity pricing risks. Homebuilding Real Estate Development Segment RISKS RELATING TO OUR BUSINESS AND THE REAL ESTATE BUSINESS GENERALLY We engage in real estate activities which are speculative and involve a high degree of risk We continue to experience shortages of labor and supplies resulting mainly from circumstances beyond our control, and there could be delays and increased costs in developing our projects, which may adversely affect our operating results We have experienced significant growth in our homebuilding operations that may not be maintained and which may continue to cause production challenges in some of our homebuilding communities Natural disasters could have an adverse effect on our real estate operations Increases in interest rates or decreases in the availability of mortgage financing could depress the market for new homes because of the increased monthly mortgage costs or the unavailability of financing to potential homebuyers. Even if potential customers do not need financing, increases in interest rates and decreased mortgage availability could make it harder for them to sell their homes. If demand for housing declines, land may remain in our inventory longer and our corresponding borrowing costs would increase. This could adversely affect our operating results and financial condition. Product liability litigation and claims that arise in the ordinary course of business may be costly or negatively impact sales, which could adversely affect our business In addition, the costs of insuring against construction defect and product liability claims, if applicable, are high and the amount of coverage offered by insurance companies is also currently limited. There can be no assurance that this coverage will not be further restricted and become more costly. If we are not able to obtain adequate insurance against these claims, we may experience losses that could negatively impact our operating results. Further, as a community developer, we may be expected by community residents from time to time to resolve any real or perceived issues or disputes that may arise in connection with the operation or development of our communities. Any efforts made by us in resolving these issues or disputes may not satisfy the affected residents and any subsequent action by these residents could negatively impact sales and results of operations. In addition, we could be required to make material expenditures related to the settlement of such issues or disputes or to modify our community development plans. Building moratoriums and changes in governmental regulations may subject us to delays or increased costs of construction or prohibit development of our properties RISKS RELATING TO OUR COMPANY We have a significant amount of debt. At December 31, 2005, our consolidated debt was approximately $408.0 million. The amount of our debt could: We have rapidly increased our operating expenses in response to our rapid growth and our results of operations may be adversely affected if there is a slowdown in sales generally or we are unable to increase revenues and effectively manage growth. Our future growth requires additional capital, which may not be available Our success depends on key management, the loss of which could disrupt our business operations We may not successfully integrate acquired businesses into ours Our controlling shareholders have the voting power to control the outcome of any shareholder vote, except in limited circumstances RISKS ASSOCIATED WITH OUR OWNERSHIP STAKE IN BLUEGREEN CORPORATION

Full 10-K form ▸

315858--3/30/2006--BFC_FINANCIAL_CORP