Quarterly report pursuant to Section 13 or 15(d)

Note 10 - Revenue Recognition

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Note 10 - Revenue Recognition
9 Months Ended
Sep. 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 Nine Months Ended

 
   

September 30,

   

September 30,

 
   

2023

   

2022

   

2023

   

2022

 

Trade sales - wholesale

  $ 27,952       36,617       87,091       113,082  

Trade sales - retail

    33,510       34,480       99,288       96,349  

Construction contract revenue

    29,067             90,678        

Real estate development management fees

    4,040             6,578        

Real estate property management fees

    962             2,671        

Sales of real estate inventory

    2,712       1,606       8,929       16,813  

Revenue from customers

    98,243       72,703       295,235       226,244  

Interest income

    2,545       1,576       6,736       3,968  

Net gain on sales of real estate assets

    2,271             2,210       1,329  

Other revenue

    280       955       939       2,862  

Total revenues

  $ 103,339       75,234       305,120       234,403  

 

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

 

   

As of

 
    September 30,     December 31,  

Contract Assets

 

2023

   

2022

 

Contingent purchase price receivable

  $ 11,128       16,918  

Cost and estimated earnings in excess of billings on uncompleted contracts

    891        

Retainage receivable

    14,161        

Uninstalled materials and deposits to purchase materials

    6,539        

Total contract assets

  $ 32,719       16,918  

Contract Liabilities

               

Billings in excess of costs and estimated earnings on uncompleted contracts

  $ 13,715        

Retainage payable

    15,761        

Contingent purchase price due to homebuilders

    625       625  

Other

    356       236  

Total contract liabilities

  $ 30,457       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 nine months ended September 30, 2023, Renin’s total revenues included $18.0 million and $59.1 million, respectively, of trade sales to three major customers and their affiliates and $11.3 million and $32.0 million, respectively, of revenues generated outside the United States. Revenues from each of the three major customers were $4.2 million, $5.4 million, and $8.4 million for the three months ended September 30, 2023, which represented 4.1%, 5.2%, and 8.1% of the Company’s total revenues for the three months ended September 30, 2023. Revenues from each of the three major customers were $13.2 million, $21.4 million, and $24.5 million for the nine months ended September 30, 2023, which represented 4.3%, 7.0%, and 8.0% of the Company’s total revenues for the nine months ended September 30, 2023.

 

During the three and nine months ended September 30, 2022, Renin’s total revenues included $26.9 million and $80.4 million, respectively, of trade sales to three major customers and their affiliates and $11.6 million and $38.1 million, respectively, of revenues generated outside the United States. Revenues from each of the three major customers were $5.0 million, $12.2 million, and $9.7 million for the three months ended September 30, 2022, which represented 6.6%, 16.3%, and 12.8% of the Company’s total revenues for the three months ended September 30, 2022. Revenues from each of the three major customers were $15.1 million, $36.4 million, and $28.9 million for the nine months ended September 30, 2022, which represented 6.4%, 15.5% and 12.3% of the Company's total revenues for the nine months ended September 30, 2022.

 

During the three and nine months ended September 30, 2023, six real estate development projects accounted for approximately 32.0% and 31.9%, respectively, of the Company's total revenues.