Quarterly report pursuant to Section 13 or 15(d)

Note 17 - Segment Reporting

v3.23.1
Note 17 - Segment Reporting
 3 Months Ended
Mar. 31, 2023
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]

17. Segment Reporting

 

Operating segments are defined as components of an enterprise about which separate financial information is available that is regularly reviewed by the chief operating decision maker (“CODM”) in assessing performance and deciding how to allocate resources. Reportable segments consist of one or more operating segments with similar economic characteristics, products and services, production processes, type of customer, distribution system, or regulatory environment.

 

The information provided for segment reporting is obtained from internal reports utilized by the Company’s CODM, and the presentation and allocation of assets and results of operations may not reflect the actual economic costs of the segments as standalone businesses. If a different basis of allocation were utilized, the relative contributions of the segments might differ, but the relative trends in the segments’ operating results would, in management’s view, likely not be materially impacted.

 

The Company’s three reportable segments are its principal holdings: BBX Capital Real Estate, BBX Sweet Holdings, and Renin. See Note 1 for a description of the Company’s principal investments.

 

The amounts set forth in the column entitled “Other” include the Company’s investments in various operating businesses, including a controlling financial interest in a restaurant acquired in connection with a loan receivable default, and the amounts set forth in the column entitled “Reconciling Items and Eliminations” include unallocated corporate general and administrative expenses, interest income on the $50.0 million note receivable from Bluegreen Vacations, and elimination adjustments related to transactions between consolidated subsidiaries that are required to be eliminated in consolidation.

 

The Company evaluates segment performance based on segment income or loss before income taxes.

 

 

The table below sets forth the Company’s segment information as of and for the three months ended March 31, 2023 (in thousands):

 

Revenues:

  

BBX Capital Real Estate

    

BBX Sweet Holdings

    

Renin

    

Other

    

Reconciling Items and Eliminations

    

Segment Total

  

Trade sales

   $ —       32,725       27,976       3,016       (3 )     63,714  

Sales of real estate inventory

     1,772       —       —       —       —       1,772  

Revenue from construction contracts

     25,037       —       —       —       —       25,037  

Real estate development and management fees

     1,611       —       —       —       —       1,611  

Interest income

     1,974       —       —       —       543       2,517  

Other revenue

     51       —       —       436       (140 )     347  

Total revenues

     30,445       32,725       27,976       3,452       400       94,998  

Costs and expenses:

                                                

Cost of trade sales

     —       20,546       26,007       857       (3 )     47,407  

Cost of real estate inventory sold

     578       —       —       —       —       578  

Cost of revenue from construction contracts

     24,189       —       —       —       —       24,189  

Interest expense

     11       332       1,121       1       (730 )     735  

Recoveries from loan losses, net

     (600 )     —       —       —       —       (600 )

Selling, general and administrative expenses

     6,240       14,541       3,848       2,158       6,991       33,778  

Total costs and expenses

     30,418       35,419       30,976       3,016       6,258       106,087  

Operating income (losses)

     27       (2,694 )     (3,000 )     436       (5,858 )     (11,089 )

Equity in net earnings of unconsolidated real estate joint ventures

     1,104       —       —       —       —       1,104  

Gain on the consolidation of The Altman Companies

     6,195       —       —       —       —       6,195  

Gain on the consolidation of investment in real estate joint ventures

     10,855       —       —       —       —       10,855  

Other (loss) income

     (305 )     200       1       2,256       19       2,171  

Foreign exchange loss

     —       (14 )     (32 )     —       —       (46 )

Income (loss) before income taxes

   $ 17,876       (2,508 )     (3,031 )     2,692       (5,839 )     9,190  

Total assets

   $ 350,458       172,958       97,344       8,720       55,445       684,925  

Expenditures for property and equipment

   $ —       5,069       284       48       13       5,414  

Depreciation and amortization

   $ (196 )     1,802       867       39       108       2,620  

Debt accretion and amortization

   $ 20       6       42       —       —       68  

Cash and cash equivalents

   $ 83,434       3,686       603       4,136       3,163       95,022  

Real estate equity method investments

   $ 56,130       —       —       —       —       56,130  

Goodwill

   $ 32,901       14,274       4,140       —       —       51,315  

Notes payable and other borrowings

   $ 3,308       19,927       43,532       40       (28,425 )     38,382  

 

 

The table below sets forth the Company’s segment information as of and for the three months ended March 31, 2022 (in thousands):

 

   

BBX Capital Real Estate

    

BBX Sweet Holdings

    

Renin

    

Other

    

Reconciling Items and Eliminations

    

Segment Total

  

Revenues:

                                                

Trade sales

   $ —       29,357       33,488       2,905       (1 )     65,749  

Sales of real estate inventory

     6,470       —       —       —       —       6,470  

Interest income

     545       —       —       —       604       1,149  

Net gains on sales of real estate assets

     1,329       —       —       —       —       1,329  

Other revenue

     516       —       —       445       (182 )     779  

Total revenues

     8,860       29,357       33,488       3,350       421       75,476  

Costs and expenses:

                                                

Cost of trade sales

     —       18,373       31,774       859       —       51,006  

Cost of real estate inventory sold

     2,235       —       —       —       —       2,235  

Interest expense

     —       247       566       1       (278 )     536  

Recoveries from loan losses, net

     (648 )     —       —       —       —       (648 )

Impairment losses

     —       64       —       —       —       64  

Selling, general and administrative expenses

     2,398       12,675       4,660       1,999       5,632       27,364  

Total costs and expenses

     3,985       31,359       37,000       2,859       5,354       80,557  

Operating income (losses)

     4,875       (2,002 )     (3,512 )     491       (4,933 )     (5,081 )

Equity in net earnings of unconsolidated real estate joint ventures

     1,532       —       —       —       —       1,532  

Other (loss) income

     (13 )     872       —       2       123       984  

Foreign exchange loss

     —       —       (189 )     —       —       (189 )

Income (loss) before income taxes

   $ 6,394       (1,130 )     (3,701 )     493       (4,810 )     (2,754 )

Total assets

   $ 186,617       139,991       108,952       6,809       90,003       532,372  

Expenditures for property and equipment

   $ —       1,357       270       26       231       1,884  

Depreciation and amortization

   $ —       1,493       819       33       57       2,402  

Debt accretion and amortization

   $ 9       44       32       —       —       85  

Cash and cash equivalents

   $ 74,412       7,713       523       2,009       29,975       114,632  

Real estate equity method investments

   $ 53,666       —       —       —       —       53,666  

Goodwill

   $ —       14,274       4,140       —       —       18,414  

Notes payable and other borrowings

   $ 5,535       15,966       48,077       22       (14,025 )     55,575