| Discontinued Operations |
14. Discontinued Operations
As described in Note 1, on September 30, 2020, BVH (formerly BBX Capital Corporation) completed the spin off its subsidiary, BBX Capital, Inc. (formerly known as BBX Capital Florida LLC), and changed its name to Bluegreen Vacations Holding Corporation in order to separate its business, activities, and investments into two separate, publicly-traded companies. BVH continues to hold its investment in Bluegreen, and BBX Capital, Inc. holds all of the other businesses and investments previously owned by BVH, including BBX Capital Real Estate, BBX Sweet Holdings, and Renin.
BBX Capital, Inc. and its subsidiaries’ operations are presented as discontinued operations in the Company’s financial statements.
The carrying amount of major classes of assets and liabilities included as part of discontinued operations is as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
|
|
2020 |
|
2019 |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
— |
|
|
20,758 |
Restricted cash |
|
|
— |
|
|
370 |
Trade inventory |
|
|
— |
|
|
22,843 |
Real estate |
|
|
— |
|
|
65,818 |
Investments in and advances to unconsolidated real estate joint ventures |
|
|
— |
|
|
57,330 |
Property and equipment, net |
|
|
— |
|
|
29,836 |
Goodwill |
|
|
— |
|
|
37,248 |
Intangible assets, net |
|
|
— |
|
|
6,671 |
Operating lease assets |
|
|
— |
|
|
87,854 |
Deferred income taxes |
|
|
— |
|
|
2,297 |
Other assets |
|
|
— |
|
|
29,656 |
Discontinued operations total assets |
|
$ |
— |
|
|
360,681 |
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
— |
|
|
9,294 |
Other liabilities |
|
|
— |
|
|
21,043 |
Notes payable and other borrowings |
|
|
— |
|
|
42,571 |
Operating lease liability |
|
|
— |
|
|
100,473 |
Discontinued operations total liabilities |
|
$ |
— |
|
|
173,381 |
The major components of loss from discontinued operations are as follows (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months |
|
For the Nine Months |
|
|
Ended September 30, |
|
Ended September 30, |
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
Trade sales |
|
$ |
35,692 |
|
|
47,660 |
|
$ |
99,628 |
|
|
138,705 |
Sales of real estate inventory |
|
|
4,970 |
|
|
371 |
|
|
14,248 |
|
|
5,030 |
Interest income |
|
|
366 |
|
|
212 |
|
|
586 |
|
|
762 |
Net gains on sales of real estate assets |
|
|
164 |
|
|
399 |
|
|
130 |
|
|
11,395 |
Other revenue |
|
|
933 |
|
|
1,137 |
|
|
2,398 |
|
|
3,033 |
Total revenues |
|
|
42,125 |
|
|
49,779 |
|
|
116,990 |
|
|
158,925 |
Costs and Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Cost of trade sales |
|
|
27,981 |
|
|
31,860 |
|
|
80,154 |
|
|
94,978 |
Cost of real estate inventory sold |
|
|
3,367 |
|
|
— |
|
|
9,473 |
|
|
2,643 |
Interest expense |
|
|
— |
|
|
118 |
|
|
— |
|
|
409 |
Recoveries from loan losses, net |
|
|
(807) |
|
|
(1,821) |
|
|
(5,844) |
|
|
(4,206) |
Impairment losses |
|
|
— |
|
|
4,030 |
|
|
31,588 |
|
|
6,786 |
Selling, general and administrative expenses |
|
|
13,394 |
|
|
19,590 |
|
|
40,342 |
|
|
57,492 |
Total costs and expenses |
|
|
43,935 |
|
|
53,777 |
|
|
155,713 |
|
|
158,102 |
Equity in net (losses) earnings of unconsolidated real estate joint ventures |
|
|
(646) |
|
|
28,534 |
|
|
50 |
|
|
37,276 |
Foreign exchanges (loss) gain |
|
|
(59) |
|
|
(1) |
|
|
214 |
|
|
(24) |
Loss on the deconsolidation of IT'SUGAR, LLC |
|
|
(3,326) |
|
|
— |
|
|
(3,326) |
|
|
— |
Other income |
|
|
82 |
|
|
68 |
|
|
192 |
|
|
710 |
(Loss) income from discontinued operations before income taxes |
|
$ |
(5,759) |
|
|
24,603 |
|
$ |
(41,593) |
|
|
38,785 |
The following are the major components of the statement of cash flows from discontinued operations (in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Nine Months Ended |
|
|
September 30, |
|
|
2020 |
|
2019 |
Operating activities: |
|
|
|
|
|
|
Net (loss) income |
|
$ |
(32,526) |
|
|
28,374 |
Adjustment to reconcile net (loss) income to net cash |
|
|
|
|
|
|
(used in) provided by operating activities: |
|
|
|
|
|
|
Recoveries from loan losses, net |
|
|
(5,844) |
|
|
(4,206) |
Depreciation, amortization and accretion, net |
|
|
5,468 |
|
|
6,519 |
Net gains on sales of real estate and property and equipment |
|
|
(130) |
|
|
(11,105) |
Equity earnings of unconsolidated real estate joint ventures |
|
|
(49) |
|
|
(37,276) |
Return on investment in unconsolidated real estate joint ventures |
|
|
3,933 |
|
|
38,020 |
Loss from the deconsolidation of IT'SUGAR, LLC |
|
|
3,326 |
|
|
- |
(Increase) decrease in deferred income tax asset |
|
|
(9,066) |
|
|
6,277 |
Impairment losses |
|
|
31,588 |
|
|
6,786 |
Increase in trade inventory |
|
|
(279) |
|
|
(5,016) |
(Increase) decrease in trade receivables |
|
|
(2,336) |
|
|
5,042 |
Decrease (increase) in real estate inventory |
|
|
925 |
|
|
(2,865) |
Net change in operating lease assets and liabilities |
|
|
(964) |
|
|
683 |
(Increase) decrease in other assets |
|
|
(1,388) |
|
|
3,744 |
(Decrease) increase in other liabilities |
|
|
6,512 |
|
|
(483) |
Net cash (used in) provided by operating activities |
|
$ |
(830) |
|
|
34,494 |
Investing activities: |
|
|
|
|
|
|
Return of investment in unconsolidated real estate joint ventures |
|
|
4,631 |
|
|
30,331 |
Investments in unconsolidated real estate joint ventures |
|
|
(14,009) |
|
|
(20,076) |
Proceeds from repayment of loans receivable |
|
|
5,960 |
|
|
4,935 |
Proceeds from sales of real estate |
|
|
2,151 |
|
|
32,136 |
Proceeds from sales of property and equipment |
|
|
— |
|
|
— |
Additions to real estate |
|
|
(70) |
|
|
(438) |
Purchases of property and equipment |
|
|
(4,032) |
|
|
(7,765) |
Decrease in cash from other investing activities |
|
|
(1,065) |
|
|
(73) |
Net cash (used in) provided by investing activities |
|
$ |
(6,434) |
|
|
39,050 |
|
|
|
|
|
|
|
|