Quarterly report pursuant to Section 13 or 15(d)

Note 10 - Revenue Recognition

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Note 10 - Revenue Recognition
3 Months Ended
Mar. 31, 2023
Notes to Financial Statements  
Revenue from Contract with Customer [Text Block]

10. Revenue Recognition

 

The table below sets forth the Company’s revenue disaggregated by category (in thousands):

 

   

For the Three Months Ended

 
   

March 31,

 
   

2023

   

2022

 

Trade sales - wholesale

  $ 34,676       37,587  

Trade sales - retail

    29,038       28,162  

Construction contract revenue

    25,037        

Real estate development management fees

    867        

Real estate property management fees

    744        

Sales of real estate inventory

    1,772       6,470  

Revenue from customers

    92,134       72,219  

Interest income

    2,517       1,149  

Net gain on sales of real estate assets

          1,329  

Other revenue

    347       779  

Total revenues

  $ 94,998       75,476  

 

The table below sets forth information about the Company's contract assets and contract liabilities associated with contracts with customers:

 

   

For the Three Months Ended

 
   

March 31,

 

Contract Assets

 

2023

   

2022

 

Contingent purchase price receivable

  $ 13,967       16,918  

Cost and estimated earnings in excess of billings on uncompleted contracts

    640        

Retainage receivable

    13,138        

Uninstalled materials and deposits to purchase materials

    8,450        

Total contract assets

  $ 36,195       16,918  

Contract Liabilities

               

Billings in excess of costs and estimated earnings on uncompleted contracts

  $ 21,320        

Retainage payable

    9,535        

Contingent purchase price due to homebuilders

    625       625  

Other

    296       236  
    $ 31,776       861  

 

Contract Assets

 

Contingent purchase price receivables represent estimated variable consideration related to the contingent purchase price due from homebuilders in connection with the sale of real estate inventory to homebuilders at BBXRE’s Beacon Lake Community Development. Cost and estimated earnings in excess of billings on uncompleted construction or development contracts represents revenues recognized in excess of amounts billed to customers. Retainage receivable is an amount, generally ten percent of the customer billings, withheld by the customer and paid to the Company when certain milestones are reached or when the contract is completed. Uninstalled materials and deposits to purchase materials represent funds received from the customer to purchase materials for the project or to provide deposits for items that range from lumber and other construction materials to appliances and fixtures.

 

 

 

Contract Liabilities

 

Billings in excess of costs and estimated earnings on uncompleted contracts represents the Company's obligation to perform on uncompleted contracts with customers for which the Company has received payment or for which the contract receivable is outstanding. Retainage payable is the amount withheld by the Company payable to subcontractors when certain milestones are reached or when the contract is completed. The contingent purchase price to homebuilders is variable consideration recognition in connection with the sale of real estate inventory at the Beacon Lake Community Development to a homebuilder.

 

Concentration of Revenues with Major Customers

 

During the three months ended March 31, 2023, Renin’s total revenues included $22.0 million of trade sales to three major customers and their affiliates and $15.6 million of revenues generated outside the United States. Revenues from each of the three major customers were $4.1 million, $9.2 million, and $8.7 million for the three months ended March 31, 2023, which represented 4.3%, 9.7%, and 9.1% of the Company’s total revenues for the three months ended March 31, 2023

 

During the three months ended March 31, 2022, Renin’s total revenues included $26.7 million of trade sales to three major customers and their affiliates and $13.1 million of revenues generated outside the United States. Revenues from each of the three major customers were $5.4 million, $11.5 million, and $9.8 million for the three months ended March 31, 2022, which represented 7.2%, 15.3%, and 12.9% of the Company’s total revenues for the three months ended March 31, 2022

 

During the three months ended March 31, 2023, six real estate development projects accounted for approximately 27% of the Company's total revenues.