Quarterly report pursuant to Section 13 or 15(d)

Segment Reporting

v3.8.0.1
Segment Reporting
3 Months Ended
Mar. 31, 2018
Segment Reporting [Abstract]  
Segment Reporting

16.    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 management of the Company. 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 managements view, likely not be impacted.



In the table for the three months ended March 31, 2018 and 2017, amounts set forth in the column entitled “Corporate Expenses & Other” include interest expense associated with Woodbridge’s trust preferred securities (“TruPs”), corporate overhead, the operations of the Company’s MOD Super-Fast Pizza franchise restaurants, and a controlling financial interest in a restaurant acquired in connection with a loan receivable default.  The Company opened two MOD Super-Fast Pizza franchise restaurants during the fourth quarter of 2017 and one location during the three months ended March 31, 2018. As of March 31, 2018, management determined that the restaurant operations did not warrant separate presentation as a reportable segment.



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



Set forth below is summary information regarding the Companys reportable segments:



Bluegreen



Bluegreen markets, sells and manages real estate-based VOIs in resorts generally located in popular, high-volume, “drive-to” vacation destinations, which were developed or acquired by Bluegreen or are owned by others in which case Bluegreen earns fees for providing these services. Bluegreen earns fees by providing VOI title services, club and homeowners’ association management services, mortgage servicing, reservation services, services related to the Traveler-Plus program, food and beverage and other retail operations, and construction design and development services. In addition, Bluegreen provides financing to qualified individual purchasers of VOIs, which provides significant interest income.



BBX Capital Real Estate



BBX Capital Real Estate activities include the acquisition, ownership and management of real estate, real estate development projects, and investments in real estate joint ventures. BBX Capital Real Estate also manages the legacy assets acquired in connection with the sale of BankAtlantic to BB&T Corporation in July 2012. The legacy assets include portfolios of loans receivable, real estate properties and previously charged-off BankAtlantic loans.



Renin 



Renin manufactures interior closet doors, wall décor, hardware and fabricated glass products and operates through its headquarters in Canada and two manufacturing, assembly and distribution facilities in Canada and the United States. During the three months ended March 31, 2018 and 2017, total revenues for the Renin reportable segment include $8.5 million and $8.2 million, respectively, of trade sales to two major customers and their affiliates. Renin’s revenues generated outside the United States totaled $4.6 million and $6.3 million, respectively, for the three months ended March 31, 2018 and 2017. Renin’s properties and equipment located outside the United States totaled $2.2 million and $2.0 million, respectively, as of March 31, 2018 and 2017.  



BBX Sweet Holdings



BBX Sweet Holdings consists of IT’SUGAR, Hoffman’s Chocolates, and manufacturing facilities in the chocolate and confection industries serving wholesalers such as boutique retailers, big box chains, department stores, national resort properties, corporate customers, and private label brands. IT’SUGAR is a specialty candy retailer currently with 96 locations in 25 states and Washington, D.C. and Hoffman’s Chocolates is a manufacturer of gourmet chocolates with retail locations in South Florida. BBX Sweet Holdings acquired IT’SUGAR in June 2017, and its results are not included in financial information for the three months ended March 31, 2017.



The table below sets forth the Company’s segment information as of and for the three months ended March 31, 2018 (in thousands):







 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Reportable Segments

 

 

 

 

 

 



 

 

 

BBX Capital

 

 

 

 

 

Corporate

 

 

 

 



 

 

 

Real

 

 

 

BBX Sweet

 

Expenses &

 

 

 

Segment



 

Bluegreen

 

Estate

 

Renin

 

Holdings

 

Other

 

Eliminations

 

Total

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales of VOIs

$

56,141 

 

 -

 

 -

 

 -

 

 -

 

 -

 

56,141 

   Fee-based sales commissions

 

45,854 

 

 -

 

 -

 

 -

 

 -

 

 -

 

45,854 

Other fee-based services

 

28,024 

 

 -

 

 -

 

 -

 

 -

 

 -

 

28,024 

Cost reimbursements

 

16,200 

 

 -

 

 -

 

 -

 

 -

 

 -

 

16,200 

Trade sales

 

 -

 

 

 

14,985 

 

21,865 

 

1,530 

 

(2)

 

38,378 

Sales of real estate inventory

 

 -

 

6,409 

 

 -

 

 -

 

 -

 

 -

 

6,409 

Interest income

 

21,122 

 

1,534 

 

 -

 

16 

 

445 

 

(1,200)

 

21,917 

Net gains on sales of assets

 

 -

 

4,069 

 

 

 -

 

 -

 

 -

 

4,070 

Other revenue

 

181 

 

739 

 

 -

 

19 

 

279 

 

(169)

 

1,049 

Total revenues

 

167,522 

 

12,751 

 

14,986 

 

21,900 

 

2,254 

 

(1,371)

 

218,042 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of VOIs sold

 

1,812 

 

 -

 

 -

 

 -

 

 -

 

 -

 

1,812 

Cost of other fee-based services

 

17,411 

 

 -

 

 -

 

 -

 

 -

 

 -

 

17,411 

Cost reimbursements

 

16,200 

 

 -

 

 -

 

 -

 

 -

 

 -

 

16,200 

Cost of trade sales

 

 -

 

 -

 

12,150 

 

14,681 

 

607 

 

(2)

 

27,436 

Cost of real estate inventory sold

 

 -

 

4,247 

 

 -

 

 -

 

 -

 

 -

 

4,247 

Interest expense

 

7,767 

 

 -

 

158 

 

89 

 

2,377 

 

(1,200)

 

9,191 

Recoveries from loan losses, net

 

 -

 

(4,813)

 

 -

 

 -

 

 -

 

 -

 

(4,813)

Asset impairments, net

 

 -

 

45 

 

 -

 

187 

 

 -

 

 -

 

232 

Selling, general and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative expenses

 

93,549 

 

2,485 

 

2,760 

 

11,636 

 

15,095 

 

(169)

 

125,356 

Total costs and expenses

 

136,739 

 

1,964 

 

15,068 

 

26,593 

 

18,079 

 

(1,371)

 

197,072 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in net earnings of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

unconsolidated real

 

 

 

 

 

 

 

 

 

 

 

 

 

 

estate joint ventures

 

 -

 

1,280 

 

 -

 

 -

 

 -

 

 -

 

1,280 

Foreign exchange gain

 

 -

 

 -

 

52 

 

 -

 

 -

 

 -

 

52 

Income (loss) before income taxes

$

30,783 

 

12,067 

 

(30)

 

(4,693)

 

(15,825)

 

 -

 

22,302 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

1,217,976 

 

137,970 

 

35,330 

 

89,096 

 

183,568 

 

(81,671)

 

1,582,269 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenditures for property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and equipment

$

5,462 

 

23 

 

107 

 

1,212 

 

1,271 

 

 -

 

8,075 

Depreciation and amortization

$

2,927 

 

91 

 

289 

 

1,394 

 

227 

 

 -

 

4,928 

Debt accretion and amortization

$

1,018 

 

 -

 

 -

 

52 

 

19 

 

 -

 

1,089 

Cash and cash equivalents

$

167,845 

 

6,421 

 

 -

 

7,332 

 

168,347 

 

 -

 

349,945 

Equity method investments

$

 -

 

48,841 

 

 -

 

 -

 

 -

 

 -

 

48,841 

Goodwill

$

 -

 

 -

 

 -

 

39,482 

 

 -

 

 -

 

39,482 

Receivable-backed notes payable

$

413,334 

 

 -

 

 -

 

 -

 

 -

 

 -

 

413,334 

Notes payable and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 borrowings

$

83,764 

 

20,858 

 

13,689 

 

7,013 

 

80,000 

 

(80,000)

 

125,324 

Junior subordinated debentures

$

70,677 

 

 -

 

 -

 

 -

 

65,048 

 

 -

 

135,725 





The table below sets forth the Company’s segment information as of and for the three months ended March 31, 2017 (in thousands):







 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

Reportable Segments

 

 

 

 

 

 



 

 

 

BBX Capital

 

 

 

 

 

Corporate

 

 

 

 



 

 

 

Real

 

 

 

BBX Sweet

 

Expenses &

 

 

 

Segment



 

Bluegreen

 

Estate

 

Renin

 

Holdings

 

Other

 

Eliminations

 

Total

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales of VOIs

$

54,236 

 

 -

 

 -

 

 -

 

 -

 

 -

 

54,236 

   Fee-based sales commissions

 

45,154 

 

 -

 

 -

 

 -

 

 -

 

 -

 

45,154 

Other fee-based services

 

26,121 

 

 -

 

 -

 

 -

 

 -

 

 -

 

26,121 

Cost reimbursements

 

14,670 

 

 -

 

 -

 

 -

 

 -

 

 -

 

14,670 

Trade sales

 

 -

 

 -

 

17,217 

 

6,122 

 

 -

 

 -

 

23,339 

Interest income

 

22,386 

 

582 

 

 -

 

 -

 

187 

 

(2,000)

 

21,155 

Net losses on sales of assets

 

 -

 

(198)

 

 -

 

 -

 

 -

 

 -

 

(198)

Other revenue

 

(245)

 

1,091 

 

 -

 

 

243 

 

(140)

 

957 

Total revenues

 

162,322 

 

1,475 

 

17,217 

 

6,130 

 

430 

 

(2,140)

 

185,434 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Costs and Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of VOIs sold

 

3,159 

 

 -

 

 -

 

 -

 

 -

 

 -

 

3,159 

Cost of other fee-based services

 

16,107 

 

 -

 

 -

 

 -

 

 -

 

 -

 

16,107 

Cost reimbursements

 

14,670 

 

 -

 

 -

 

 -

 

 -

 

 -

 

14,670 

Cost of trade sales

 

 -

 

 -

 

13,856 

 

5,740 

 

 -

 

 -

 

19,596 

Interest expense

 

7,644 

 

 -

 

79 

 

85 

 

3,016 

 

(2,000)

 

8,824 

Recoveries from loan losses, net

 

 -

 

(3,094)

 

 -

 

 -

 

 -

 

 -

 

(3,094)

Asset recoveries, net

 

 -

 

(13)

 

 -

 

 -

 

 -

 

 -

 

(13)

Net gains on cancellation of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

junior subordinated debentures

 

 -

 

 -

 

 -

 

 -

 

(6,929)

 

 -

 

(6,929)

Reimbursement of litigation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

costs and penalty

 

 -

 

 -

 

 -

 

 -

 

(9,606)

 

 -

 

(9,606)

Selling, general and

 

 

 

 

 

 

 

 

 

 

 

 

 

 

administrative expenses

 

89,835 

 

2,531 

 

2,781 

 

3,388 

 

14,911 

 

(140)

 

113,306 

Total costs and expenses

 

131,415 

 

(576)

 

16,716 

 

9,213 

 

1,392 

 

(2,140)

 

156,020 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity in net earnings of

 

 

 

 

 

 

 

 

 

 

 

 

 

 

unconsolidated real

 

 

 

 

 

 

 

 

 

 

 

 

 

 

estate joint ventures

 

 -

 

3,236 

 

 -

 

 -

 

 -

 

 -

 

3,236 

Foreign exchange gain

 

 -

 

 -

 

191 

 

 -

 

 -

 

 -

 

191 

Income (loss) before income taxes

$

30,907 

 

5,287 

 

692 

 

(3,083)

 

(962)

 

 -

 

32,841 



 

 

 

 

 

 

 

 

 

 

 

 

 

 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

$

1,118,296 

 

191,538 

 

29,913 

 

31,355 

 

126,982 

 

(82,260)

 

1,415,824 



 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenditures for property

 

 

 

 

 

 

 

 

 

 

 

 

 

 

and equipment

$

3,028 

 

115 

 

587 

 

71 

 

98 

 

 -

 

3,899 

Depreciation and amortization

$

2,356 

 

147 

 

147 

 

461 

 

195 

 

 -

 

3,306 

Debt accretion and amortization

$

1,066 

 

 -

 

 -

 

62 

 

 -

 

 -

 

1,128 

Cash and cash equivalents

$

117,920 

 

24,708 

 

(158)

 

5,372 

 

114,550 

 

 -

 

262,392 

Equity method investments

$

 -

 

48,843 

 

 -

 

 -

 

 -

 

 -

 

48,843 

Goodwill

$

 -

 

 -

 

 -

 

6,731 

 

 -

 

 -

 

6,731 

Receivable-backed notes payable

$

393,030 

 

 -

 

 -

 

 -

 

 -

 

 -

 

393,030 

Notes payable and other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

borrowings

$

94,471 

 

20,742 

 

7,751 

 

4,980 

 

80,000 

 

(80,000)

 

127,944 

Junior subordinated debentures

$

69,422 

 

 -

 

 -

 

 -

 

64,976 

 

 -

 

134,398