Quarterly report pursuant to Section 13 or 15(d)

Note 17 - Segment Reporting

v3.23.2
Note 17 - Segment Reporting
 6 Months Ended
Jun. 30, 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 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 June 30, 2023 (in thousands):

 

Revenues:

  

BBX Capital Real Estate

    

BBX Sweet Holdings

    

Renin

    

Other

    

Reconciling Items and Eliminations

    

Segment Total

  

Trade sales

   $ —       35,013       24,344       1,860       (14 )     61,203  

Sales of real estate inventory

     4,445       —       —       —       —       4,445  

Revenue from construction contracts

     36,574       —       —       —       —       36,574  

Real estate development and property management fees

     2,636       —       —       —       —       2,636  

Interest income

     2,111       —       —       —       (437 )     1,674  

Other revenue

     50       —       —       453       (191 )     312  

Total revenues

     45,816       35,013       24,344       2,313       (642 )     106,844  

Costs and expenses:

                                                

Cost of trade sales

     —       21,902       22,415       624       (14 )     44,927  

Cost of real estate inventory sold

     959       —       —       —       —       959  

Cost of revenue from construction contracts

     38,129       —       —       —       —       38,129  

Interest expense

     35       375       1,152       1       (863 )     700  

Recoveries from loan losses, net

     (2,507 )     —       —       —       —       (2,507 )

Selling, general and administrative expenses

     6,326       15,217       3,991       1,680       7,092       34,306  

Total costs and expenses

     42,942       37,494       27,558       2,305       6,215       116,514  

Operating income (losses)

     2,874       (2,481 )     (3,214 )     8       (6,857 )     (9,670 )

Equity in net earnings of unconsolidated real estate joint ventures

     728       —       —       —       —       728  

Gain on the consolidation of investment in real estate joint ventures

     27       —       —       —       —       27  

Other income (loss)

     649       24       (5 )     6       42       716  

Foreign exchange loss

     —       (18 )     (470 )     —       —       (488 )

Income (loss) before income taxes

   $ 4,278       (2,475 )     (3,689 )     14       (6,815 )     (8,687 )

Total assets

   $ 348,321       170,907       93,091       6,775       54,632       673,726  

Expenditures for property and equipment

   $ 9       3,098       457       80       2       3,646  

Depreciation and amortization

   $ (610 )     2,282       878       42       1,037       3,629  

Debt accretion and amortization

   $ 33       (17 )     (51 )     —       —       (35 )

Cash and cash equivalents

   $ 56,444       3,336       648       2,366       18,675       81,469  

Real estate equity method investments

   $ 61,189       —       —       —       —       61,189  

Goodwill

   $ 33,877       14,274       4,140       —       —       52,291  

Notes payable and other borrowings

   $ 2,343       18,920       44,025       1       (27,450 )     37,839  

 

The table below sets forth the Company’s segment information as of and for the three months ended June 30, 2022 (in thousands):

 

   

BBX Capital Real Estate

    

BBX Sweet Holdings

    

Renin

    

Other

    

Reconciling Items and Eliminations

    

Segment Total

  

Revenues:

                                                

Trade sales

   $ —       35,602       35,093       1,895       (5 )     72,585  

Sales of real estate inventory

     8,737       —       —       —       —       8,737  

Interest income

     629       —       —       —       592       1,221  

Other revenue

     506       —       —       848       (204 )     1,150  

Total revenues

     9,872       35,602       35,093       2,743       383       83,693  

Costs and expenses:

                                                

Cost of trade sales

     —       20,622       34,305       676       (5 )     55,598  

Cost of real estate inventory sold

     3,878       —       —       —       —       3,878  

Interest expense

     —       222       776       —       (489 )     509  

Recoveries from loan losses, net

     (3,289 )     —       —       —       —       (3,289 )

Selling, general and administrative expenses

     3,362       14,982       4,273       1,658       5,786       30,061  

Total costs and expenses

     3,951       35,826       39,354       2,334       5,292       86,757  

Operating income (losses)

     5,921       (224 )     (4,261 )     409       (4,909 )     (3,064 )

Equity in net earnings of unconsolidated real estate joint ventures

     19,154       —       —       —       —       19,154  

Other income

     5       6       —       —       92       103  

Foreign exchange gain

     —       —       357       —       —       357  

Income (loss) before income taxes

   $ 25,080       (218 )     (3,904 )     409       (4,817 )     16,550  

Total assets

   $ 203,868       151,272       106,634       6,601       74,822       543,197  

Expenditures for property and equipment

   $ —       2,588       254       22       1,202       4,066  

Depreciation and amortization

   $ —       1,612       832       35       73       2,552  

Debt accretion and amortization

   $ 136       5       21       —       —       162  

Cash and cash equivalents

   $ 98,665       4,708       162       1,918       12,683       118,136  

Real estate equity method investments

   $ 51,740       —       —       —       —       51,740  

Goodwill

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

Notes payable and other borrowings

   $ 3,898       15,050       51,148       18       (26,550 )     43,564  

 

The table below sets forth the Company’s segment information as of and for the six months ended June 30, 2023 (in thousands):

 

Revenues:

  

BBX Capital Real Estate

    

BBX Sweet Holdings

    

Renin

    

Other

    

Reconciling Items and Eliminations

    

Segment Total

  

Trade sales

   $ —       67,738       52,320       4,876       (17 )     124,917  

Sales of real estate inventory

     6,217       —       —       —       —       6,217  

Revenue from construction contracts

     61,611       —       —       —       —       61,611  

Real estate development and property management fees

     4,247       —       —       —       —       4,247  

Interest income

     4,085       —       —       —       106       4,191  

Other revenue

     101       —       —       889       (331 )     659  

Total revenues

     76,261       67,738       52,320       5,765       (242 )     201,842  

Costs and expenses:

                                                

Cost of trade sales

     —       42,448       48,422       1,481       (17 )     92,334  

Cost of real estate inventory sold

     1,537       —       —       —       —       1,537  

Cost of revenue from construction contracts

     62,318       —       —       —       —       62,318  

Interest expense

     46       707       2,273       2       (1,593 )     1,435  

Recoveries from loan losses, net

     (3,107 )     —       —       —       —       (3,107 )

Selling, general and administrative expenses

     12,566       29,758       7,839       3,838       14,083       68,084  

Total costs and expenses

     73,360       72,913       58,534       5,321       12,473       222,601  

Operating income (losses)

     2,901       (5,175 )     (6,214 )     444       (12,715 )     (20,759 )

Equity in net earnings of unconsolidated real estate joint ventures

     1,832       —       —       —       —       1,832  

Gain on the consolidation of The Altman Companies

     6,195       —       —       —       —       6,195  

Gain on the consolidation of investment in real estate joint ventures

     10,882       —       —       —       —       10,882  

Other (expense) income

     344       224       (4 )     2,262       61       2,887  

Foreign exchange loss

     —       (32 )     (502 )     —       —       (534 )

Income (loss) before income taxes

   $ 22,154       (4,983 )     (6,720 )     2,706       (12,654 )     503  

Expenditures for property and equipment

   $ 9       8,167       741       128       15       9,060  

Depreciation and amortization

   $ (806 )     4,084       1,745       81       1,145       6,249  

Debt accretion and amortization

   $ 53       (11 )     (9 )     —       —       33  

 

The table below sets forth the Company’s segment information as of and for the six months ended June 30, 2022 (in thousands):

 

Revenues:

  

BBX Capital Real Estate

    

BBX Sweet Holdings

    

Renin

    

Other

    

Reconciling Items and Eliminations

    

Segment Total

  

Trade sales

   $ —       64,959       68,581       4,800       (6 )     138,334  

Sales of real estate inventory

     15,207       —       —       —       —       15,207  

Interest income

     1,174       —       —       —       1,196       2,370  

Net gains on sales of real estate assets

     1,329       —       —       —       —       1,329  

Other revenue

     1,022       —       —       1,293       (386 )     1,929  

Total revenues

     18,732       64,959       68,581       6,093       804       159,169  

Costs and expenses:

                                                

Cost of trade sales

     —       38,995       66,079       1,535       (5 )     106,604  

Cost of real estate inventory sold

     6,113       —       —       —       —       6,113  

Interest expense

     —       469       1,342       1       (767 )     1,045  

Recoveries from loan losses, net

     (3,937 )     —       —       —       —       (3,937 )

Impairment losses

     —       64       —       —       —       64  

Selling, general and administrative expenses

     5,760       27,657       8,933       3,657       11,418       57,425  

Total costs and expenses

     7,936       67,185       76,354       5,193       10,646       167,314  

Operating income (losses)

     10,796       (2,226 )     (7,773 )     900       (9,842 )     (8,145 )

Equity in net earnings of unconsolidated real estate joint ventures

     20,686       —       —       —       —       20,686  

Other (expense) income

     (8 )     878       —       2       215       1,087  

Foreign exchange gain

     —       —       168       —       —       168  

Income (loss) before income taxes

   $ 31,474       (1,348 )     (7,605 )     902       (9,627 )     13,796  

Expenditures for property and equipment

   $ —       3,945       524       48       1,433       5,950  

Depreciation and amortization

   $ —       3,105       1,651       68       130       4,954  

Debt accretion and amortization

   $ 145       49       53       —       —       247