Colonial

Transaction

Other Transaction



BBX Capital, Inc.

Elegance Inc.

Accounting

Accounting



Historical

Historical

Adjustments

Adjustments

Pro Forma

ASSETS

$

Cash and cash equivalents

 —

(2)

(4)

Restricted cash

 —

 —

 —

Trade accounts receivable, net

(2)

 —

 —

Trade inventory

(2)

(2)

 —

Real estate

 —

 —

 —

Investments in and advances to unconsolidated real estate joint ventures

 —

 —

 —

Investment in and advances to IT'SUGAR, LLC

 —

 —

 —

Note receivable from Bluegreen Vacations Holding Corporation

 —

 —

 —

Property and equipment, net

(2)

 —

 —

Goodwill

 —

(2)

(2)

Intangible assets, net

(2)

(2)

 —

Operating lease assets

(2)

 —

 —

Deferred tax asset, net

 —

(2)

(1)

Other assets

(2)

 —

(4)

Total assets

LIABILITIES AND EQUITY

Liabilities:

Accounts payable

(2)

 —

 —

Accrued expenses

(2)

 —

(1)

Other liabilities (incl. taxes payable)

(3)

 —

Operating lease liabilities

(2)

 —

 —

Deferred tax liability, net

(3)

 —

 —

Notes payable and other borrowings

(3)

(4)

Total liabilities

Equity:

Colonial Equity

 —

 —

—

Preferred stock of $.01 par value; authorized 10,000,000 shares

 —

 —

 —

 —

 —

Class A Common Stock of $.01 par value; authorized 30,000,000 shares; issued and outstanding 15,624,091

 —

 —

Class B Common Stock of $.01 par value; authorized 4,000,000 shares; issued and outstanding 3,639,596

 —

 —

 —

Additional paid-in capital

 —

 —

(1)

Accumulated earnings

 —

 —

 —

 —

 —

Accumulated other comprehensive income

 —

 —

 —

Total shareholders' equity

Noncontrolling interests

 —

 —

 —

Total equity

Total liabilities and equity

$



1.

Accrued expenses includes $440,000 of estimated transaction costs incurred by Renin in connection with the Acquisition, which resulted in an increase in deferred tax assets of $117,000.

2.

The following table summarizes the i) historical cost and estimated fair values of Colonial Elegance’s identifiable net assets acquired, including intangible assets, ii) goodwill acquired, iii) purchase consideration, and iv) related pro forma Transaction Accounting Adjustments.  





Colonial Elegance Inc.

Estimated



Historical Cost of

Fair Value of

Transaction

(in thousands)

Net Assets Acquired

Net Assets Acquired

Adjustments

Cash

$

 -

$

 -

$

 -

Accounts receivable

 -

Trade inventory

Property and equipment

 -

Operating lease assets

 -

Deferred tax asset

 -

Other assets

 -

Accounts payable

 -

Accrued expenses

 -

Operating lease liabilities

 -

Intangible assets, net

Total identifiable net assets

$



Goodwill

$

Total purchase consideration

$

3.

In connection with the Acquisition, Renin did not assume Colonial Elegance’s historical borrowings or tax liabilities.

4.

The Company contributed $5.0 million to Renin to partially fund the Acquisition, while the remainder of the Acquisition was funded by Renin using borrowings under its 2020 TD Bank Credit Facility, including $30.0 million from the term loan and the remainder from the operating loan under the facility. Accordingly, the pro forma statement of financial condition assumes that the pro forma estimated purchase consideration of $43.2 million (derived as outlined in Note 2) was funded with $5.0 million of cash, $30.0 million of borrowings from the term loan in the 2020 TD Bank Credit Facility,  and approximately $8.2 million of borrowings from the operating loan in the 2020 TD Bank Credit Facility.  Included in the borrowings were $216,000 and $324,000 of debt issuance costs for the operating loan and term loan.





Colonial

Transaction

Other Transaction



BBX Capital, Inc.

Elegance Inc.

Accounting

Accounting



Historical

Historical

Adjustments

Adjustments

Pro Forma

Revenues:

Trade sales

$

 —

 —

Sales of real estate inventory

 —

 —

 —

Interest income

 —

 —

 —

Net gains on sales of real estate assets

 —

 —

 —

Other revenue

 —

 —

 —

Total revenues

 —

 —

Costs and Expenses:

Cost of trade sales

(1)

 —

Cost of real estate inventory sold

 —

 —

 —

Interest expense

(2)

(5)

Recoveries from loan losses, net

 —

 —

 —

Impairment losses

 —

 —

 —

Selling, general and administrative expenses

(3)

 —

Total costs and expenses

Operating losses

Equity in net earnings of unconsolidated real estate joint ventures

 —

 —

 —

Other income

 —

 —

Foreign exchange loss

 —

 —

Income (loss) from continuing operations before income taxes

(Provision) benefit for income taxes

(4)

(4)

Net income (loss) from continuing operations

Discontinued operations

Loss from operations

 —

 —

 —

Benefit for income taxes

 —

 —

 —

Loss from discontinued operations

 —

 —

 —

Net income (loss)

Less: Net loss attributable to noncontrolling interests

 —

 —

 —

Net income (loss) attributable to shareholders

$



Basic and diluted earnings per share from continuing operations

Basic and diluted loss per share from discontinued operations

Total basic and diluted earnings per share

Weighted average number of common shares outstanding

Net income (loss)

Other comprehensive income, net of tax:

 —

Unrealized gain on securities available for sale

 —

 —

 —

Foreign currency translation adjustments

 —

 —

 —

Other comprehensive income, net

$

 —

 —

 —

Comprehensive income (loss), net of tax

Less: Comprehensive loss attributable to noncontrolling interests

 —

 —

 —

Comprehensive income (loss) attributable to shareholders







Colonial

Transaction

Other Transaction



BBX Capital, Inc.

Elegance Inc.

Accounting

Accounting



Historical

Historical

Adjustments

Adjustments

Pro Forma

Revenues:

Trade sales

$

 —

 —

Sales of real estate inventory

 —

 —

 —

Interest income

 —

 —

 —

Net gains on sales of real estate assets

 —

 —

 —

Other revenue

 —

 —

 —

Total revenues

 —

 —

Costs and Expenses:

Cost of trade sales

 —

 —

Cost of real estate inventory sold

 —

 —

 —

Interest expense

 —

(2)

(5)

Recoveries from loan losses, net

 —

 —

 —

Impairment losses

 —

 —

 —

Selling, general and administrative expenses

(3)

 —

Total costs and expenses

Operating losses

Equity in net earnings of unconsolidated real estate joint ventures

 —

 —

 —

Loss on the deconsolidation of IT'SUGAR, LLC

 —

 —

 —

Other income

 —

 —

 —

Foreign exchange (loss) gain

 —

 —

(Loss) income from continuing operations before income taxes

Benefit (provision) for income taxes

(4)

(4)

Net (Loss) income from continuing operations

Discontinued operations

Loss from operations

 —

 —

 —

Benefit for income taxes

 —

 —

 —

Loss from discontinued operations

 —

 —

 —

Net (loss) income

Less: Net loss attributable to noncontrolling interests

 —

 —

Net (loss) income attributable to shareholders

$



Basic and diluted loss per share from continuing operations

Basic and diluted loss per share from discontinued operations

 —

 —

Total basic and diluted loss per share

Weighted average number of common shares outstanding

Net (loss) income

Other comprehensive loss, net of tax:

Unrealized gain on securities available for sale

 —

 —

 —

Foreign currency translation adjustments

 —

 —

 —

Other comprehensive loss, net

$

 —

 —

 —

Comprehensive (loss) income, net of tax

Less: Comprehensive loss attributable to noncontrolling interests

 —

 —

 —

Comprehensive (loss) income attributable to shareholders



1.

Amount represents the recognition of the fair value adjustment to inventory at the acquisition date as a cost of trade sales.

2.

Amounts represent interest expense on Colonial Elegance’s borrowings that were not assumed in the acquisition.

3.

Amounts represent the difference in i) the historical amortization expense recognized by Colonial Elegance related to its identifiable intangible assets and ii) the estimated amortization expense expected to be recognized by Renin based on the estimated fair values of the identifiable intangible assets associated with Colonial Elegance as of the acquisition date. As described above, the estimated fair values of the assets acquired and liabilities assumed associated with Colonial Elegance are preliminary and subject to change, as management is in the process of completing its valuation analysis and its accounting for the Acquisition is not complete as of the date of this report.

4.

The benefit (provision) for income tax was calculated based on a statutory income tax rate of 26.5%.

5.

Amounts represent interest expense on borrowings to fund the acquisition assuming that the transaction was completed on January 1, 2019.  Amounts outstanding under the Term Loan and Operating Loan bear interest at (i) the Canadian Prime Rate plus a spread between 1.375% to 1.875% per annum, (ii) the United States Base Rate plus a spread between 1.00% to 1.50% per annum, or (iii) LIBOR or Canadian Bankers Acceptance Rate, in each case plus a spread between 2.875% to 3.375% per annum, with the spreads applicable to each rate depending on the Renin’s total leverage. The principal on the $30.0 million term loan is payable quarterly, with $563,000 payable quarterly in Year 1 and $750,000 payable quarterly in Year 2.The pro forma interest expense was calculated based on the 3 month LIBOR rate at the applicable date plus a spread of 3.375% adjusting quarterly. Further, the calculation of pro forma interest expense assumes that Renin paid the required principal payments under the term loan pursuant to the stated amortization schedule but did not make any principal payments for amounts that were assumed to be drawn under the operating loan in connection with the Acquisition.