Quarterly report pursuant to Section 13 or 15(d)

Note 10 - Revenue Recognition

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Note 10 - Revenue Recognition
6 Months Ended
Jun. 30, 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

   

For the Six Months Ended

 
   

June 30,

   

June 30,

 
   

2023

   

2022

   

2023

   

2022

 

Trade sales - wholesale

  $ 26,871       38,878       59,139       76,465  

Trade sales - retail

    34,332       33,707       65,778       61,869  

Construction contract revenue

    36,574             61,611        

Real estate development management fees

    1,671             2,538        

Real estate property management fees

    965             1,709        

Sales of real estate inventory

    4,445       8,737       6,217       15,207  

Revenue from customers

    104,858       81,322       196,992       153,541  

Interest income

    1,674       1,221       4,191       2,370  

Net gain on sales of real estate assets

                      1,329  

Other revenue

    312       1,150       659       1,929  

Total revenues

  $ 106,844       83,693       201,842       159,169  

 

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

 

   

As of

 
    June 30,     December 31,  

Contract Assets

 

2023

   

2022

 

Contingent purchase price receivable

  $ 13,719       16,918  

Cost and estimated earnings in excess of billings on uncompleted contracts

    481        

Retainage receivable

    12,366        

Uninstalled materials and deposits to purchase materials

    7,032        

Total contract assets

  $ 33,598       16,918  

Contract Liabilities

               

Billings in excess of costs and estimated earnings on uncompleted contracts

  $ 23,345        

Retainage payable

    12,084        

Contingent purchase price due to homebuilders

    625       625  

Other

    285       236  

Total contract liabilities

  $ 36,339       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 represent 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 represent 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 and six months ended June 30, 2023, Renin’s total revenues included $19.2 million and $41.2 million, respectively, of trade sales to three major customers and their affiliates and $9.6 million and $20.7 million, respectively, of revenues generated outside the United States. Revenues from each of the three major customers were $4.9 million, $6.8 million, and $7.5 million for the three months ended June 30, 2023, which represented 4.5%, 6.4%, and 7.0% of the Company’s total revenues for the three months ended June 30, 2023. Revenues from each of the three major customers were $9.0 million, $16.0 million, and $16.2 million for the six months ended June 30, 2023, which represented 4.4%, 7.9%, and 8.0% of the Company’s total revenues for the six months ended June 30, 2023.

 

During the three and six months ended June 30, 2022, Renin’s total revenues included $26.8 million and $53.5 million, respectively, of trade sales to three major customers and their affiliates and $13.5 million and $26.6 million, respectively, of revenues generated outside the United States. Revenues from each of the three major customers were $4.7 million, $12.6 million, and $9.5 million for the three months ended June 30, 2022, which represented 5.6%, 15.0%, and 11.4% of the Company’s total revenues for the three months ended June 30, 2022. Revenues from each of the three major customers were $10.1 million, $24.1 million, and $19.3 million for the six months ended June 30, 2022, which represented 6.4%, 15.2% and 12.1% of the Company's total revenues for the six months ended June 30, 2022.

 

During the three and six months ended June 30, 2023, six real estate development projects accounted for approximately 35.8% and 31.8%, respectively, of the Company's total revenues.