Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v3.20.2
Discontinued Operations
9 Months Ended
Sep. 30, 2020
Discontinued Operations [Abstract]  
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