Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries BBX Capital, Inc. Reports Financial Results For the Fourth Quarter and Full Year of 2022 By: BBX Capital, Inc. via Business Wire March 15, 2023 at 16:05 PM EDT BBX Capital, Inc. (OTCQX: BBXIA) (PINK: BBXIB) (“BBX Capital” or the “Company”) reported today its financial results for the fourth quarter and year ended December 31, 2022. Selected highlights of BBX Capital’s consolidated financial results include: Fourth Quarter 2022 Compared to Fourth Quarter 2021 Total consolidated revenues of $107.6 million vs. $98.2 million Income before income taxes of $22.5 million vs $8.3 million Net income attributable to shareholders of $15.4 million vs. $5.3 million Diluted earnings per share of $0.99 vs. $0.32 Year Ended December 31, 2022 Compared to the Year Ended December 31, 2021 Total consolidated revenues of $342.0 million vs. $313.6 million Income before income taxes of $42.8 million vs. $64.2 million Net income attributable to shareholders of $28.0 million vs. $46.9 million Diluted earnings per share of $ 1.81 vs $ 2.63 Balance Sheet as of December 31, 2022 Cash and cash equivalents of $127.6 million Note receivable from Bluegreen Vacations Holding Corporation (NYSE: BVH) of $50.0 million Total consolidated assets of $562.8 million Total shareholders' equity of $334.3 million Fully diluted book value per share of $22.48 (1) (1) Fully diluted book value per share is shareholders’ equity divided by the number of BBX Capital’s Class A and Class B common shares and unvested restricted stock awards outstanding on December 31, 2022. “Overall, we are pleased with BBX Capital's results for the year ended December 31, 2022. BBX Capital Real Estate generated its highest reported income before taxes since its creation in 2012 as a result of the execution of various sales transactions during 2022, including the sale of land in St. Lucie County, Florida for a gain of $23.0 million, the sale of three multifamily apartment communities sponsored by the Altman Companies, the sale of its interest in its Bayview joint venture, and the completion of home sales at its Marbella community in Miramar, Florida. Further, as part of its goal of establishing itself as a premier ‘retailtainment’ experience, IT’SUGAR opened various new store locations in 2022, including its first international location in Canada and large format ‘pop-up’ locations near Times Square in New York and on Michigan Avenue in Chicago, and plans to continue to open new locations in 2023, including ‘candy department stores’ in Miami, Florida and San Francisco, California. Further, while Renin has continued to face significant challenges in 2022, it commenced initiatives in late 2022 to transfer a substantial portion of its operations from its facility located in Montreal, Canada to its other manufacturing and distribution facilities and exit its primary third-party logistics and warehousing facility as part of its efforts to reduce costs and improve its margins,” commented Jarett S. Levan, Chief Executive Officer and President of BBX Capital, Inc. Mr. Levan added, "There is no question that inflationary pressures, rising interest rates, supply chain disruptions, and global economic uncertainty continue to present challenges for all of our portfolio companies, and we expect that these ongoing challenges will continue to impact our businesses during 2023. We also expect BBX Capital Real Estate to be dramatically impacted in 2023 by an anticipated decrease in sales transactions and new development starts. We remain focused on positioning our businesses to navigate the challenges of the current uncertain environment but are also focused on identifying ways to utilize our capital and capitalize on potential opportunities for future growth. As we have said previously, we remain committed to our objective of achieving long-term growth and building shareholder value.” Additional Information For more complete and detailed information regarding BBX Capital and its financial results, business, operations, investments, and risks, please see BBX Capital’s Annual Report on Form 10-K for the year ended December 31, 2022, which will be available on the SEC's website, https://www.sec.gov, and on BBX Capital’s website, www.BBXCapital.com on March 15, 2023. Financial Results The following selected information relates to the financial results of the Company’s principal holdings: BBX Capital Real Estate, BBX Sweet Holdings, and Renin. BBX Capital Real Estate - Selected Financial Data Selected highlights of BBX Capital Real Estate’s (“BBXRE”) financial results include: Fourth Quarter 2022 Compared to Fourth Quarter 2021: Revenues of $35.8 million vs. $18.8 million Net gains on sales of real estate assets of $23.0 million vs. $0.2 million Net profits from sales of real estate inventory to homebuilders of $6.2 million vs. $11.4 million Recoveries from loan losses of $0.6 million vs. $0.7 million Equity in net earnings of unconsolidated real estate joint ventures of $2.7 million vs. $2.2 million Income before income taxes of $29.5 million vs. $13.6 million Year Ended December 31, 2022 Compared to the Year Ended December 31, 2021: Revenues of $57.5 million vs. $69.7 million Net gains on sales of real estate assets of $24.3 million vs. $0.6 million Net profits from sales of real estate inventory to homebuilders of $16.3 million vs. $35.8 million Recoveries from loan losses of $4.8 million vs. $7.8 million Equity in net earnings of unconsolidated real estate joint ventures of $38.4 million vs. $18.2 million Income before income taxes of $75.2 million vs. $58.3 million BBXRE’s operating results for the quarter ended December 31, 2022 as compared to the same 2021 period primarily reflect an increase in net gains on sales of real estate assets related to BBXRE's sale of 119 acres of vacant land in St. Lucie County, Florida in December 2022, which resulted in the recognition of a net gain on sale of $23.0 million in the fourth quarter of 2022. This increase was partially offset by (i) a decrease in net profits from the sale of lots to homebuilders at the Beacon Lake Community development due to the accelerated sale of lots in the development in fiscal 2021 and (ii) an increase in selling, general, and administrative expenses, which reflected, among other things, the establishment of BBXRE’s logistics real estate division, incentive compensation related to sales activity in 2022, and the recognition of severance expense. BBX Sweet Holdings - Selected Financial Data Selected highlights of BBX Sweet Holdings’ financial results include: Fourth Quarter 2022 Compared to Fourth Quarter 2021: Trade sales of $37.7 million vs. $36.2 million Gross margin of $15.3 million vs. $13.8 million Gross margin percentage of 40.7% vs. 38.1% Depreciation and amortization of $1.9 million vs. $1.3 million Income before income taxes of $1.5 million vs. a loss before income taxes of $(0.2) million Year Ended December 31, 2022 Compared to the Year Ended December 31, 2021: Trade sales of $139.7 million vs. $84.2 million Gross margin of $56.4 million vs. $31.7 million Gross margin percentage of 40.4% vs. 37.7% Depreciation and amortization of $6.6 million vs. $3.2 million Income before income taxes of $0.2 million vs. $15.8 million BBX Sweet Holdings’ operating results for the quarter ended December 31, 2022 as compared to the same 2021 period primarily reflect higher income related to IT’SUGAR's sales, which includes the impact of sales at new retail locations opened by IT’SUGAR in fiscal 2022 and increased comparable store sales during 2022 compared to 2021. Renin - Selected Financial Data Selected highlights of Renin’s financial results include: Fourth Quarter 2022 Compared to Fourth Quarter 2021: Trade sales of $30.8 million vs. $39.8 million Gross margin of $0.8 million vs. $2.9 million Gross margin percentage of 2.7% vs. 7.2% Loss before income taxes of $(4.5) million vs. $(1.9) million Year Ended December 31, 2022 Compared to the Year Ended December 31, 2021: Trade sales of $132.0 million vs. $146.3 million Gross margin of $4.3 million vs. $15.9 million Gross margin percentage of 3.3% vs. 10.9% Loss before income taxes of ($15.4) million vs. ($1.0) million Renin’s operating results for the quarter ended December 31, 2022 as compared to the same 2021 period primarily reflect (i) lower sales, which includes the impact of an overall decline in customer demand and one of Renin’s major customers discontinuing its purchase of certain products from Renin in late 2021, (ii) a decline in Renin’s gross margin percentage primarily related to higher raw material costs and lower absorption of manufacturing overhead costs, and (iii) higher interest expense. About BBX Capital, Inc.: BBX Capital, Inc. (OTCQX: BBXIA) (PINK: BBXIB) is a Florida-based diversified holding company whose principal holdings include BBX Capital Real Estate, BBX Sweet Holdings, and Renin. For additional information, please visit www.BBXCapital.com. Forward-Looking Statements: This press release contains forward-looking statements based largely on current expectations of BBX Capital and its subsidiaries that involve a number of risks and uncertainties. All opinions, forecasts, projections, future plans, or other statements, other than statements of historical fact, are forward-looking statements and can be identified by the use of words or phrases such as “plans,” “believes,” “will,” “expects,” “anticipates,” “intends,” “estimates,” “our view,” “we see,” “would,” and words and phrases of similar import. The forward-looking statements in this press release are also forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and involve substantial risks and uncertainties. We can give no assurance that such expectations will prove to be correct. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. Forward-looking statements are based largely on our expectations and are subject to a number of risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control. When considering forward-looking statements, the reader should keep in mind the risks, uncertainties, and other cautionary statements made in this release and in the Company’s reports filed with the Securities and Exchange Commission (“SEC”). The reader should not place undue reliance on any forward-looking statement, which speaks only as of the date made. This press release also contains information regarding the past performance of the Company and its respective investments and operations. The reader should note that prior or current performance is not a guarantee or indication of future performance. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, and all such information should only be viewed as historical data. Future results could differ materially as a result of a variety of risks and uncertainties. Some factors which may affect the accuracy of the forward-looking statements apply generally to the industries in which the Company operates, including the residential and commercial real estate industry in which BBXRE develops, operates, manages, and invests in real estate, the home improvement industry in which Renin operates, and the sugar and confectionery industry in which BBX Sweet Holdings operates. Risks and uncertainties include risks relating to public health issues and general economic uncertainties, including, supply chain issues, labor shortages, current inflationary trends, and rising interest rates. The current economic environment has had a negative impact on our margins, including increased energy and raw material costs and increasing wages in the labor markets in which we compete. We expect that inflation will continue to pressure our margins in future periods, especially to the extent that we are not able to increase prices to customers. Many factors including (i) consumer demand, (ii) disruptions in global supply chains, (iii) employee absenteeism and a general labor shortage as well as increases in the cost of hiring and maintaining employees, (iv) disruptions in credit and capital markets, (v) customer retention, including our ability to maintain our relationships with large customers, (vi) U.S. Federal Reserve monetary policy decisions in response to inflationary trends, (vii) changes in U.S. federal income or other tax laws and interpretation of tax laws and (viii) heightened cybersecurity risks all impact the Company's operations, results and financial condition. The duration and severity of economic and market conditions are uncertain and may impact future periods. At this time we are also not able to predict whether the current economic conditions will result in prolonged changes in our customers’ behavior, which may include prolonged decreases in discretionary spending and reductions in demand for retail store and confectionery products, home improvement products or real estate, each of which would have a material adverse impact on our business, operating results and financial condition. In addition, current inflationary trends may adversely impact our results of operations. BBXRE has experienced a significant increase in commodity and labor prices, which has resulted in higher development and construction costs, and increasing interest rates may adversely impact demand for real estate and its developments, as well as its and its customers financing costs and sales prices resulting from increased capitalization rates. IT’SUGAR has experienced an increase in the cost of inventory and freight, and Renin has experienced significant supply chain challenges and a significant increase in costs related to shipping and raw materials. The significant increase in Renin’s costs has caused Renin to be out of compliance with the terms of financial covenants under its credit facility, and it is anticipated that additional loan paydowns or the full repayment of its loan facility may be required. These inflationary trends could have a material adverse effect on the Company’s results of operations and financial condition if the Company is not able to increase prices to its customers to offset the increase in its costs. A number of factors may adversely affect the labor force available to us or increase our labor costs, including labor shortages and increased employee turnover, federal unemployment subsidies, and other government regulations. A sustained labor shortage or increased turnover rates could lead to increased costs, such as increased overtime pay to meet demand and increased wage rates to attract and retain employees, or negatively affect our operations or adversely impact our business and results. Further, any mitigation measures we take in response to a decrease in labor availability or an increase in labor costs may be unsuccessful and could have negative effects. Additionally, rising interest rates could also have an adverse impact on homebuyers and home sales, the availability of financing, the affordability of residential mortgages, the profitability of development projects as a majority of development costs are financed with third party debt and the value of multifamily apartment communities as rising interest rates increase capitalization rates applied to sales transactions. Reference is also made to the other risks and uncertainties described in BBX Capital’s Annual Report on Form 10-K for the year ended December 31, 2022, which will be filed on March 15, 2023, and then will be available on the SEC's website, https://www.sec.gov, and on BBX Capital’s website, www.BBXCapital.com. The Company cautions that the foregoing factors are not exclusive, and that the reader should not place undue reliance on any forward-looking statement, which speaks only as of the date made. The following supplemental table presents BBX Capital’s Consolidating Statement of Operations (unaudited) for the three months ended December 31, 2022 (in thousands): Revenues: BBX Capital Real Estate BBX Sweet Holdings Renin Other Reconciling Items and Eliminations Segment Total Trade sales $ — 37,706 30,835 2,160 (7 ) 70,694 Sales of real estate inventory 10,981 — — — — 10,981 Interest income 1,452 — — — 573 2,025 Net gains on sales of real estate assets 22,960 — — — — 22,960 Other revenue 392 — — 692 (102 ) 982 Total revenues 35,785 37,706 30,835 2,852 464 107,642 Costs and expenses: Cost of trade sales — 22,373 30,005 690 (8 ) 53,060 Cost of real estate inventory sold 4,794 — — — — 4,794 Interest expense — 318 1,183 — (762 ) 739 Recoveries from loan losses, net (620 ) — — — — (620 ) Impairment losses — 174 — — — 174 Selling, general and administrative expenses 4,816 13,516 3,978 2,020 5,387 29,717 Total costs and expenses 8,990 36,381 35,166 2,710 4,617 87,864 Operating income (losses) 26,795 1,325 (4,331 ) 142 (4,153 ) 19,778 Equity in net earnings of unconsolidated real estate joint ventures 2,702 — — — — 2,702 Other income (expense) 1 200 (58 ) 2 42 187 Foreign exchange loss — (68 ) (123 ) — — (191 ) Income (loss) before income taxes $ 29,498 1,457 (4,512 ) 144 (4,111 ) 22,476 The following supplemental table presents BBX Capital’s Consolidating Statement of Operations (unaudited) for the three months ended December 31, 2021 (in thousands): BBX Capital Real Estate BBX Sweet Holdings Renin Other Reconciling Items and Eliminations Segment Total Revenues: Trade sales $ — 36,225 39,776 2,186 (8 ) 78,179 Sales of real estate inventory 17,705 — — — — 17,705 Interest income 583 — — — 1,007 1,590 Net gains on sales of real estate assets 205 — — — — 205 Other revenue 352 — — 368 (186 ) 534 Total revenues 18,845 36,225 39,776 2,554 813 98,213 Costs and expenses: Cost of trade sales — 22,431 36,916 733 (8 ) 60,072 Cost of real estate inventory sold 6,265 — — — — 6,265 Interest expense — 178 543 1 (241 ) 481 Recoveries from loan losses, net (736 ) — — — — (736 ) Impairment losses — 38 — — — 38 Selling, general and administrative expenses 1,878 13,800 4,204 1,701 4,524 26,107 Total costs and expenses 7,407 36,447 41,663 2,435 4,275 92,227 Operating income (losses) 11,438 (222 ) (1,887 ) 119 (3,462 ) 5,986 Equity in net earnings of unconsolidated real estate joint ventures 2,162 — — — — 2,162 Other income — 53 — 1 35 89 Foreign exchange gain — — 24 — — 24 Income (loss) before income taxes $ 13,600 (169 ) (1,863 ) 120 (3,427 ) 8,261 The following supplemental table presents BBX Capital’s Consolidating Statement of Operations for the year ended December 31, 2022 (in thousands): BBX Capital Real Estate BBX Sweet Holdings Renin Other Reconciling Items and Eliminations Segment Total Revenues: Trade sales $ — 139,718 131,951 8,470 (14 ) 280,125 Sales of real estate inventory 27,794 — — — — 27,794 Interest income 3,617 — — — 2,376 5,993 Net gains on sales of real estate assets 24,289 — — — — 24,289 Other revenue 1,835 — — 2,572 (563 ) 3,844 Total revenues 57,535 139,718 131,951 11,042 1,799 342,045 Costs and expenses: Cost of trade sales — 83,307 127,623 2,805 (14 ) 213,721 Cost of real estate inventory sold 11,463 — — — — 11,463 Interest expense — 1,015 3,588 2 (2,206 ) 2,399 Recoveries from loan losses, net (4,835 ) — — — — (4,835 ) Impairment losses 311 238 — — — 549 Selling, general and administrative expenses 13,772 55,617 17,077 7,224 22,525 116,215 Total costs and expenses 20,711 140,177 148,288 10,031 20,305 339,512 Operating income (losses) 36,824 (459 ) (16,337 ) 1,011 (18,506 ) 2,533 Equity in net earnings of unconsolidated real estate joint ventures 38,414 — — — — 38,414 Other (expense) income (7 ) 718 (57 ) 4 306 964 Foreign exchange (loss) gain — (70 ) 950 — — 880 Income (loss) before income taxes $ 75,231 189 (15,444 ) 1,015 (18,200 ) 42,791 The following supplemental table presents BBX Capital’s Consolidating Statement of Operations for the year ended December 31, 2021 (in thousands): BBX Capital Real Estate BBX Sweet Holdings Renin Other Reconciling Items and Eliminations Segment Total Revenues: Trade sales $ — 84,215 146,255 7,616 (8 ) 238,078 Sales of real estate inventory 65,479 — — — — 65,479 Interest income 2,048 36 — — 4,329 6,413 Net gains on sales of real estate assets 643 — — — — 643 Other revenue 1,504 — — 2,045 (565 ) 2,984 Total revenues 69,674 84,251 146,255 9,661 3,756 313,597 Costs and expenses: Cost of trade sales — 52,497 130,366 2,291 (8 ) 185,146 Cost of real estate inventory sold 29,690 — — — — 29,690 Interest expense — 429 1,830 2 (822 ) 1,439 Recoveries from loan losses, net (7,774 ) — — — — (7,774 ) Impairment losses — 38 — — — 38 Selling, general and administrative expenses 7,587 31,524 15,857 5,978 15,068 76,014 Total costs and expenses 29,503 84,488 148,053 8,271 14,238 284,553 Operating income (losses) 40,171 (237 ) (1,798 ) 1,390 (10,482 ) 29,044 Equity in net earnings of unconsolidated real estate joint ventures 18,154 — — — — 18,154 Other (expense) income (14 ) 131 — — 224 341 Gain on the consolidation of IT'SUGAR, LLC — 15,890 — — — 15,890 Foreign exchange gain — — 812 — — 812 Income (loss) before income taxes $ 58,311 15,784 (986 ) 1,390 (10,258 ) 64,241 View source version on businesswire.com: https://www.businesswire.com/news/home/20230315005194/en/Contacts BBX Capital, Inc. Contact Info: Investor Relations Contact: Leo Hinkley, Managing Director, Investor Relations Officer 954-940-5300, Email: LHinkley@BBXCapital.com Media Relations Contact: Kip Hunter, Kip Hunter Marketing 954-303-5551, Email: kip@kiphuntermarketing.com Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. By accessing this page, you agree to the following Privacy Policy and Terms and Conditions.
BBX Capital, Inc. Reports Financial Results For the Fourth Quarter and Full Year of 2022 By: BBX Capital, Inc. via Business Wire March 15, 2023 at 16:05 PM EDT BBX Capital, Inc. (OTCQX: BBXIA) (PINK: BBXIB) (“BBX Capital” or the “Company”) reported today its financial results for the fourth quarter and year ended December 31, 2022. Selected highlights of BBX Capital’s consolidated financial results include: Fourth Quarter 2022 Compared to Fourth Quarter 2021 Total consolidated revenues of $107.6 million vs. $98.2 million Income before income taxes of $22.5 million vs $8.3 million Net income attributable to shareholders of $15.4 million vs. $5.3 million Diluted earnings per share of $0.99 vs. $0.32 Year Ended December 31, 2022 Compared to the Year Ended December 31, 2021 Total consolidated revenues of $342.0 million vs. $313.6 million Income before income taxes of $42.8 million vs. $64.2 million Net income attributable to shareholders of $28.0 million vs. $46.9 million Diluted earnings per share of $ 1.81 vs $ 2.63 Balance Sheet as of December 31, 2022 Cash and cash equivalents of $127.6 million Note receivable from Bluegreen Vacations Holding Corporation (NYSE: BVH) of $50.0 million Total consolidated assets of $562.8 million Total shareholders' equity of $334.3 million Fully diluted book value per share of $22.48 (1) (1) Fully diluted book value per share is shareholders’ equity divided by the number of BBX Capital’s Class A and Class B common shares and unvested restricted stock awards outstanding on December 31, 2022. “Overall, we are pleased with BBX Capital's results for the year ended December 31, 2022. BBX Capital Real Estate generated its highest reported income before taxes since its creation in 2012 as a result of the execution of various sales transactions during 2022, including the sale of land in St. Lucie County, Florida for a gain of $23.0 million, the sale of three multifamily apartment communities sponsored by the Altman Companies, the sale of its interest in its Bayview joint venture, and the completion of home sales at its Marbella community in Miramar, Florida. Further, as part of its goal of establishing itself as a premier ‘retailtainment’ experience, IT’SUGAR opened various new store locations in 2022, including its first international location in Canada and large format ‘pop-up’ locations near Times Square in New York and on Michigan Avenue in Chicago, and plans to continue to open new locations in 2023, including ‘candy department stores’ in Miami, Florida and San Francisco, California. Further, while Renin has continued to face significant challenges in 2022, it commenced initiatives in late 2022 to transfer a substantial portion of its operations from its facility located in Montreal, Canada to its other manufacturing and distribution facilities and exit its primary third-party logistics and warehousing facility as part of its efforts to reduce costs and improve its margins,” commented Jarett S. Levan, Chief Executive Officer and President of BBX Capital, Inc. Mr. Levan added, "There is no question that inflationary pressures, rising interest rates, supply chain disruptions, and global economic uncertainty continue to present challenges for all of our portfolio companies, and we expect that these ongoing challenges will continue to impact our businesses during 2023. We also expect BBX Capital Real Estate to be dramatically impacted in 2023 by an anticipated decrease in sales transactions and new development starts. We remain focused on positioning our businesses to navigate the challenges of the current uncertain environment but are also focused on identifying ways to utilize our capital and capitalize on potential opportunities for future growth. As we have said previously, we remain committed to our objective of achieving long-term growth and building shareholder value.” Additional Information For more complete and detailed information regarding BBX Capital and its financial results, business, operations, investments, and risks, please see BBX Capital’s Annual Report on Form 10-K for the year ended December 31, 2022, which will be available on the SEC's website, https://www.sec.gov, and on BBX Capital’s website, www.BBXCapital.com on March 15, 2023. Financial Results The following selected information relates to the financial results of the Company’s principal holdings: BBX Capital Real Estate, BBX Sweet Holdings, and Renin. BBX Capital Real Estate - Selected Financial Data Selected highlights of BBX Capital Real Estate’s (“BBXRE”) financial results include: Fourth Quarter 2022 Compared to Fourth Quarter 2021: Revenues of $35.8 million vs. $18.8 million Net gains on sales of real estate assets of $23.0 million vs. $0.2 million Net profits from sales of real estate inventory to homebuilders of $6.2 million vs. $11.4 million Recoveries from loan losses of $0.6 million vs. $0.7 million Equity in net earnings of unconsolidated real estate joint ventures of $2.7 million vs. $2.2 million Income before income taxes of $29.5 million vs. $13.6 million Year Ended December 31, 2022 Compared to the Year Ended December 31, 2021: Revenues of $57.5 million vs. $69.7 million Net gains on sales of real estate assets of $24.3 million vs. $0.6 million Net profits from sales of real estate inventory to homebuilders of $16.3 million vs. $35.8 million Recoveries from loan losses of $4.8 million vs. $7.8 million Equity in net earnings of unconsolidated real estate joint ventures of $38.4 million vs. $18.2 million Income before income taxes of $75.2 million vs. $58.3 million BBXRE’s operating results for the quarter ended December 31, 2022 as compared to the same 2021 period primarily reflect an increase in net gains on sales of real estate assets related to BBXRE's sale of 119 acres of vacant land in St. Lucie County, Florida in December 2022, which resulted in the recognition of a net gain on sale of $23.0 million in the fourth quarter of 2022. This increase was partially offset by (i) a decrease in net profits from the sale of lots to homebuilders at the Beacon Lake Community development due to the accelerated sale of lots in the development in fiscal 2021 and (ii) an increase in selling, general, and administrative expenses, which reflected, among other things, the establishment of BBXRE’s logistics real estate division, incentive compensation related to sales activity in 2022, and the recognition of severance expense. BBX Sweet Holdings - Selected Financial Data Selected highlights of BBX Sweet Holdings’ financial results include: Fourth Quarter 2022 Compared to Fourth Quarter 2021: Trade sales of $37.7 million vs. $36.2 million Gross margin of $15.3 million vs. $13.8 million Gross margin percentage of 40.7% vs. 38.1% Depreciation and amortization of $1.9 million vs. $1.3 million Income before income taxes of $1.5 million vs. a loss before income taxes of $(0.2) million Year Ended December 31, 2022 Compared to the Year Ended December 31, 2021: Trade sales of $139.7 million vs. $84.2 million Gross margin of $56.4 million vs. $31.7 million Gross margin percentage of 40.4% vs. 37.7% Depreciation and amortization of $6.6 million vs. $3.2 million Income before income taxes of $0.2 million vs. $15.8 million BBX Sweet Holdings’ operating results for the quarter ended December 31, 2022 as compared to the same 2021 period primarily reflect higher income related to IT’SUGAR's sales, which includes the impact of sales at new retail locations opened by IT’SUGAR in fiscal 2022 and increased comparable store sales during 2022 compared to 2021. Renin - Selected Financial Data Selected highlights of Renin’s financial results include: Fourth Quarter 2022 Compared to Fourth Quarter 2021: Trade sales of $30.8 million vs. $39.8 million Gross margin of $0.8 million vs. $2.9 million Gross margin percentage of 2.7% vs. 7.2% Loss before income taxes of $(4.5) million vs. $(1.9) million Year Ended December 31, 2022 Compared to the Year Ended December 31, 2021: Trade sales of $132.0 million vs. $146.3 million Gross margin of $4.3 million vs. $15.9 million Gross margin percentage of 3.3% vs. 10.9% Loss before income taxes of ($15.4) million vs. ($1.0) million Renin’s operating results for the quarter ended December 31, 2022 as compared to the same 2021 period primarily reflect (i) lower sales, which includes the impact of an overall decline in customer demand and one of Renin’s major customers discontinuing its purchase of certain products from Renin in late 2021, (ii) a decline in Renin’s gross margin percentage primarily related to higher raw material costs and lower absorption of manufacturing overhead costs, and (iii) higher interest expense. About BBX Capital, Inc.: BBX Capital, Inc. (OTCQX: BBXIA) (PINK: BBXIB) is a Florida-based diversified holding company whose principal holdings include BBX Capital Real Estate, BBX Sweet Holdings, and Renin. For additional information, please visit www.BBXCapital.com. Forward-Looking Statements: This press release contains forward-looking statements based largely on current expectations of BBX Capital and its subsidiaries that involve a number of risks and uncertainties. All opinions, forecasts, projections, future plans, or other statements, other than statements of historical fact, are forward-looking statements and can be identified by the use of words or phrases such as “plans,” “believes,” “will,” “expects,” “anticipates,” “intends,” “estimates,” “our view,” “we see,” “would,” and words and phrases of similar import. The forward-looking statements in this press release are also forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and involve substantial risks and uncertainties. We can give no assurance that such expectations will prove to be correct. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. Forward-looking statements are based largely on our expectations and are subject to a number of risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control. When considering forward-looking statements, the reader should keep in mind the risks, uncertainties, and other cautionary statements made in this release and in the Company’s reports filed with the Securities and Exchange Commission (“SEC”). The reader should not place undue reliance on any forward-looking statement, which speaks only as of the date made. This press release also contains information regarding the past performance of the Company and its respective investments and operations. The reader should note that prior or current performance is not a guarantee or indication of future performance. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, and all such information should only be viewed as historical data. Future results could differ materially as a result of a variety of risks and uncertainties. Some factors which may affect the accuracy of the forward-looking statements apply generally to the industries in which the Company operates, including the residential and commercial real estate industry in which BBXRE develops, operates, manages, and invests in real estate, the home improvement industry in which Renin operates, and the sugar and confectionery industry in which BBX Sweet Holdings operates. Risks and uncertainties include risks relating to public health issues and general economic uncertainties, including, supply chain issues, labor shortages, current inflationary trends, and rising interest rates. The current economic environment has had a negative impact on our margins, including increased energy and raw material costs and increasing wages in the labor markets in which we compete. We expect that inflation will continue to pressure our margins in future periods, especially to the extent that we are not able to increase prices to customers. Many factors including (i) consumer demand, (ii) disruptions in global supply chains, (iii) employee absenteeism and a general labor shortage as well as increases in the cost of hiring and maintaining employees, (iv) disruptions in credit and capital markets, (v) customer retention, including our ability to maintain our relationships with large customers, (vi) U.S. Federal Reserve monetary policy decisions in response to inflationary trends, (vii) changes in U.S. federal income or other tax laws and interpretation of tax laws and (viii) heightened cybersecurity risks all impact the Company's operations, results and financial condition. The duration and severity of economic and market conditions are uncertain and may impact future periods. At this time we are also not able to predict whether the current economic conditions will result in prolonged changes in our customers’ behavior, which may include prolonged decreases in discretionary spending and reductions in demand for retail store and confectionery products, home improvement products or real estate, each of which would have a material adverse impact on our business, operating results and financial condition. In addition, current inflationary trends may adversely impact our results of operations. BBXRE has experienced a significant increase in commodity and labor prices, which has resulted in higher development and construction costs, and increasing interest rates may adversely impact demand for real estate and its developments, as well as its and its customers financing costs and sales prices resulting from increased capitalization rates. IT’SUGAR has experienced an increase in the cost of inventory and freight, and Renin has experienced significant supply chain challenges and a significant increase in costs related to shipping and raw materials. The significant increase in Renin’s costs has caused Renin to be out of compliance with the terms of financial covenants under its credit facility, and it is anticipated that additional loan paydowns or the full repayment of its loan facility may be required. These inflationary trends could have a material adverse effect on the Company’s results of operations and financial condition if the Company is not able to increase prices to its customers to offset the increase in its costs. A number of factors may adversely affect the labor force available to us or increase our labor costs, including labor shortages and increased employee turnover, federal unemployment subsidies, and other government regulations. A sustained labor shortage or increased turnover rates could lead to increased costs, such as increased overtime pay to meet demand and increased wage rates to attract and retain employees, or negatively affect our operations or adversely impact our business and results. Further, any mitigation measures we take in response to a decrease in labor availability or an increase in labor costs may be unsuccessful and could have negative effects. Additionally, rising interest rates could also have an adverse impact on homebuyers and home sales, the availability of financing, the affordability of residential mortgages, the profitability of development projects as a majority of development costs are financed with third party debt and the value of multifamily apartment communities as rising interest rates increase capitalization rates applied to sales transactions. Reference is also made to the other risks and uncertainties described in BBX Capital’s Annual Report on Form 10-K for the year ended December 31, 2022, which will be filed on March 15, 2023, and then will be available on the SEC's website, https://www.sec.gov, and on BBX Capital’s website, www.BBXCapital.com. The Company cautions that the foregoing factors are not exclusive, and that the reader should not place undue reliance on any forward-looking statement, which speaks only as of the date made. The following supplemental table presents BBX Capital’s Consolidating Statement of Operations (unaudited) for the three months ended December 31, 2022 (in thousands): Revenues: BBX Capital Real Estate BBX Sweet Holdings Renin Other Reconciling Items and Eliminations Segment Total Trade sales $ — 37,706 30,835 2,160 (7 ) 70,694 Sales of real estate inventory 10,981 — — — — 10,981 Interest income 1,452 — — — 573 2,025 Net gains on sales of real estate assets 22,960 — — — — 22,960 Other revenue 392 — — 692 (102 ) 982 Total revenues 35,785 37,706 30,835 2,852 464 107,642 Costs and expenses: Cost of trade sales — 22,373 30,005 690 (8 ) 53,060 Cost of real estate inventory sold 4,794 — — — — 4,794 Interest expense — 318 1,183 — (762 ) 739 Recoveries from loan losses, net (620 ) — — — — (620 ) Impairment losses — 174 — — — 174 Selling, general and administrative expenses 4,816 13,516 3,978 2,020 5,387 29,717 Total costs and expenses 8,990 36,381 35,166 2,710 4,617 87,864 Operating income (losses) 26,795 1,325 (4,331 ) 142 (4,153 ) 19,778 Equity in net earnings of unconsolidated real estate joint ventures 2,702 — — — — 2,702 Other income (expense) 1 200 (58 ) 2 42 187 Foreign exchange loss — (68 ) (123 ) — — (191 ) Income (loss) before income taxes $ 29,498 1,457 (4,512 ) 144 (4,111 ) 22,476 The following supplemental table presents BBX Capital’s Consolidating Statement of Operations (unaudited) for the three months ended December 31, 2021 (in thousands): BBX Capital Real Estate BBX Sweet Holdings Renin Other Reconciling Items and Eliminations Segment Total Revenues: Trade sales $ — 36,225 39,776 2,186 (8 ) 78,179 Sales of real estate inventory 17,705 — — — — 17,705 Interest income 583 — — — 1,007 1,590 Net gains on sales of real estate assets 205 — — — — 205 Other revenue 352 — — 368 (186 ) 534 Total revenues 18,845 36,225 39,776 2,554 813 98,213 Costs and expenses: Cost of trade sales — 22,431 36,916 733 (8 ) 60,072 Cost of real estate inventory sold 6,265 — — — — 6,265 Interest expense — 178 543 1 (241 ) 481 Recoveries from loan losses, net (736 ) — — — — (736 ) Impairment losses — 38 — — — 38 Selling, general and administrative expenses 1,878 13,800 4,204 1,701 4,524 26,107 Total costs and expenses 7,407 36,447 41,663 2,435 4,275 92,227 Operating income (losses) 11,438 (222 ) (1,887 ) 119 (3,462 ) 5,986 Equity in net earnings of unconsolidated real estate joint ventures 2,162 — — — — 2,162 Other income — 53 — 1 35 89 Foreign exchange gain — — 24 — — 24 Income (loss) before income taxes $ 13,600 (169 ) (1,863 ) 120 (3,427 ) 8,261 The following supplemental table presents BBX Capital’s Consolidating Statement of Operations for the year ended December 31, 2022 (in thousands): BBX Capital Real Estate BBX Sweet Holdings Renin Other Reconciling Items and Eliminations Segment Total Revenues: Trade sales $ — 139,718 131,951 8,470 (14 ) 280,125 Sales of real estate inventory 27,794 — — — — 27,794 Interest income 3,617 — — — 2,376 5,993 Net gains on sales of real estate assets 24,289 — — — — 24,289 Other revenue 1,835 — — 2,572 (563 ) 3,844 Total revenues 57,535 139,718 131,951 11,042 1,799 342,045 Costs and expenses: Cost of trade sales — 83,307 127,623 2,805 (14 ) 213,721 Cost of real estate inventory sold 11,463 — — — — 11,463 Interest expense — 1,015 3,588 2 (2,206 ) 2,399 Recoveries from loan losses, net (4,835 ) — — — — (4,835 ) Impairment losses 311 238 — — — 549 Selling, general and administrative expenses 13,772 55,617 17,077 7,224 22,525 116,215 Total costs and expenses 20,711 140,177 148,288 10,031 20,305 339,512 Operating income (losses) 36,824 (459 ) (16,337 ) 1,011 (18,506 ) 2,533 Equity in net earnings of unconsolidated real estate joint ventures 38,414 — — — — 38,414 Other (expense) income (7 ) 718 (57 ) 4 306 964 Foreign exchange (loss) gain — (70 ) 950 — — 880 Income (loss) before income taxes $ 75,231 189 (15,444 ) 1,015 (18,200 ) 42,791 The following supplemental table presents BBX Capital’s Consolidating Statement of Operations for the year ended December 31, 2021 (in thousands): BBX Capital Real Estate BBX Sweet Holdings Renin Other Reconciling Items and Eliminations Segment Total Revenues: Trade sales $ — 84,215 146,255 7,616 (8 ) 238,078 Sales of real estate inventory 65,479 — — — — 65,479 Interest income 2,048 36 — — 4,329 6,413 Net gains on sales of real estate assets 643 — — — — 643 Other revenue 1,504 — — 2,045 (565 ) 2,984 Total revenues 69,674 84,251 146,255 9,661 3,756 313,597 Costs and expenses: Cost of trade sales — 52,497 130,366 2,291 (8 ) 185,146 Cost of real estate inventory sold 29,690 — — — — 29,690 Interest expense — 429 1,830 2 (822 ) 1,439 Recoveries from loan losses, net (7,774 ) — — — — (7,774 ) Impairment losses — 38 — — — 38 Selling, general and administrative expenses 7,587 31,524 15,857 5,978 15,068 76,014 Total costs and expenses 29,503 84,488 148,053 8,271 14,238 284,553 Operating income (losses) 40,171 (237 ) (1,798 ) 1,390 (10,482 ) 29,044 Equity in net earnings of unconsolidated real estate joint ventures 18,154 — — — — 18,154 Other (expense) income (14 ) 131 — — 224 341 Gain on the consolidation of IT'SUGAR, LLC — 15,890 — — — 15,890 Foreign exchange gain — — 812 — — 812 Income (loss) before income taxes $ 58,311 15,784 (986 ) 1,390 (10,258 ) 64,241 View source version on businesswire.com: https://www.businesswire.com/news/home/20230315005194/en/Contacts BBX Capital, Inc. Contact Info: Investor Relations Contact: Leo Hinkley, Managing Director, Investor Relations Officer 954-940-5300, Email: LHinkley@BBXCapital.com Media Relations Contact: Kip Hunter, Kip Hunter Marketing 954-303-5551, Email: kip@kiphuntermarketing.com
BBX Capital, Inc. (OTCQX: BBXIA) (PINK: BBXIB) (“BBX Capital” or the “Company”) reported today its financial results for the fourth quarter and year ended December 31, 2022. Selected highlights of BBX Capital’s consolidated financial results include: Fourth Quarter 2022 Compared to Fourth Quarter 2021 Total consolidated revenues of $107.6 million vs. $98.2 million Income before income taxes of $22.5 million vs $8.3 million Net income attributable to shareholders of $15.4 million vs. $5.3 million Diluted earnings per share of $0.99 vs. $0.32 Year Ended December 31, 2022 Compared to the Year Ended December 31, 2021 Total consolidated revenues of $342.0 million vs. $313.6 million Income before income taxes of $42.8 million vs. $64.2 million Net income attributable to shareholders of $28.0 million vs. $46.9 million Diluted earnings per share of $ 1.81 vs $ 2.63 Balance Sheet as of December 31, 2022 Cash and cash equivalents of $127.6 million Note receivable from Bluegreen Vacations Holding Corporation (NYSE: BVH) of $50.0 million Total consolidated assets of $562.8 million Total shareholders' equity of $334.3 million Fully diluted book value per share of $22.48 (1) (1) Fully diluted book value per share is shareholders’ equity divided by the number of BBX Capital’s Class A and Class B common shares and unvested restricted stock awards outstanding on December 31, 2022. “Overall, we are pleased with BBX Capital's results for the year ended December 31, 2022. BBX Capital Real Estate generated its highest reported income before taxes since its creation in 2012 as a result of the execution of various sales transactions during 2022, including the sale of land in St. Lucie County, Florida for a gain of $23.0 million, the sale of three multifamily apartment communities sponsored by the Altman Companies, the sale of its interest in its Bayview joint venture, and the completion of home sales at its Marbella community in Miramar, Florida. Further, as part of its goal of establishing itself as a premier ‘retailtainment’ experience, IT’SUGAR opened various new store locations in 2022, including its first international location in Canada and large format ‘pop-up’ locations near Times Square in New York and on Michigan Avenue in Chicago, and plans to continue to open new locations in 2023, including ‘candy department stores’ in Miami, Florida and San Francisco, California. Further, while Renin has continued to face significant challenges in 2022, it commenced initiatives in late 2022 to transfer a substantial portion of its operations from its facility located in Montreal, Canada to its other manufacturing and distribution facilities and exit its primary third-party logistics and warehousing facility as part of its efforts to reduce costs and improve its margins,” commented Jarett S. Levan, Chief Executive Officer and President of BBX Capital, Inc. Mr. Levan added, "There is no question that inflationary pressures, rising interest rates, supply chain disruptions, and global economic uncertainty continue to present challenges for all of our portfolio companies, and we expect that these ongoing challenges will continue to impact our businesses during 2023. We also expect BBX Capital Real Estate to be dramatically impacted in 2023 by an anticipated decrease in sales transactions and new development starts. We remain focused on positioning our businesses to navigate the challenges of the current uncertain environment but are also focused on identifying ways to utilize our capital and capitalize on potential opportunities for future growth. As we have said previously, we remain committed to our objective of achieving long-term growth and building shareholder value.” Additional Information For more complete and detailed information regarding BBX Capital and its financial results, business, operations, investments, and risks, please see BBX Capital’s Annual Report on Form 10-K for the year ended December 31, 2022, which will be available on the SEC's website, https://www.sec.gov, and on BBX Capital’s website, www.BBXCapital.com on March 15, 2023. Financial Results The following selected information relates to the financial results of the Company’s principal holdings: BBX Capital Real Estate, BBX Sweet Holdings, and Renin. BBX Capital Real Estate - Selected Financial Data Selected highlights of BBX Capital Real Estate’s (“BBXRE”) financial results include: Fourth Quarter 2022 Compared to Fourth Quarter 2021: Revenues of $35.8 million vs. $18.8 million Net gains on sales of real estate assets of $23.0 million vs. $0.2 million Net profits from sales of real estate inventory to homebuilders of $6.2 million vs. $11.4 million Recoveries from loan losses of $0.6 million vs. $0.7 million Equity in net earnings of unconsolidated real estate joint ventures of $2.7 million vs. $2.2 million Income before income taxes of $29.5 million vs. $13.6 million Year Ended December 31, 2022 Compared to the Year Ended December 31, 2021: Revenues of $57.5 million vs. $69.7 million Net gains on sales of real estate assets of $24.3 million vs. $0.6 million Net profits from sales of real estate inventory to homebuilders of $16.3 million vs. $35.8 million Recoveries from loan losses of $4.8 million vs. $7.8 million Equity in net earnings of unconsolidated real estate joint ventures of $38.4 million vs. $18.2 million Income before income taxes of $75.2 million vs. $58.3 million BBXRE’s operating results for the quarter ended December 31, 2022 as compared to the same 2021 period primarily reflect an increase in net gains on sales of real estate assets related to BBXRE's sale of 119 acres of vacant land in St. Lucie County, Florida in December 2022, which resulted in the recognition of a net gain on sale of $23.0 million in the fourth quarter of 2022. This increase was partially offset by (i) a decrease in net profits from the sale of lots to homebuilders at the Beacon Lake Community development due to the accelerated sale of lots in the development in fiscal 2021 and (ii) an increase in selling, general, and administrative expenses, which reflected, among other things, the establishment of BBXRE’s logistics real estate division, incentive compensation related to sales activity in 2022, and the recognition of severance expense. BBX Sweet Holdings - Selected Financial Data Selected highlights of BBX Sweet Holdings’ financial results include: Fourth Quarter 2022 Compared to Fourth Quarter 2021: Trade sales of $37.7 million vs. $36.2 million Gross margin of $15.3 million vs. $13.8 million Gross margin percentage of 40.7% vs. 38.1% Depreciation and amortization of $1.9 million vs. $1.3 million Income before income taxes of $1.5 million vs. a loss before income taxes of $(0.2) million Year Ended December 31, 2022 Compared to the Year Ended December 31, 2021: Trade sales of $139.7 million vs. $84.2 million Gross margin of $56.4 million vs. $31.7 million Gross margin percentage of 40.4% vs. 37.7% Depreciation and amortization of $6.6 million vs. $3.2 million Income before income taxes of $0.2 million vs. $15.8 million BBX Sweet Holdings’ operating results for the quarter ended December 31, 2022 as compared to the same 2021 period primarily reflect higher income related to IT’SUGAR's sales, which includes the impact of sales at new retail locations opened by IT’SUGAR in fiscal 2022 and increased comparable store sales during 2022 compared to 2021. Renin - Selected Financial Data Selected highlights of Renin’s financial results include: Fourth Quarter 2022 Compared to Fourth Quarter 2021: Trade sales of $30.8 million vs. $39.8 million Gross margin of $0.8 million vs. $2.9 million Gross margin percentage of 2.7% vs. 7.2% Loss before income taxes of $(4.5) million vs. $(1.9) million Year Ended December 31, 2022 Compared to the Year Ended December 31, 2021: Trade sales of $132.0 million vs. $146.3 million Gross margin of $4.3 million vs. $15.9 million Gross margin percentage of 3.3% vs. 10.9% Loss before income taxes of ($15.4) million vs. ($1.0) million Renin’s operating results for the quarter ended December 31, 2022 as compared to the same 2021 period primarily reflect (i) lower sales, which includes the impact of an overall decline in customer demand and one of Renin’s major customers discontinuing its purchase of certain products from Renin in late 2021, (ii) a decline in Renin’s gross margin percentage primarily related to higher raw material costs and lower absorption of manufacturing overhead costs, and (iii) higher interest expense. About BBX Capital, Inc.: BBX Capital, Inc. (OTCQX: BBXIA) (PINK: BBXIB) is a Florida-based diversified holding company whose principal holdings include BBX Capital Real Estate, BBX Sweet Holdings, and Renin. For additional information, please visit www.BBXCapital.com. Forward-Looking Statements: This press release contains forward-looking statements based largely on current expectations of BBX Capital and its subsidiaries that involve a number of risks and uncertainties. All opinions, forecasts, projections, future plans, or other statements, other than statements of historical fact, are forward-looking statements and can be identified by the use of words or phrases such as “plans,” “believes,” “will,” “expects,” “anticipates,” “intends,” “estimates,” “our view,” “we see,” “would,” and words and phrases of similar import. The forward-looking statements in this press release are also forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and involve substantial risks and uncertainties. We can give no assurance that such expectations will prove to be correct. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. Forward-looking statements are based largely on our expectations and are subject to a number of risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control. When considering forward-looking statements, the reader should keep in mind the risks, uncertainties, and other cautionary statements made in this release and in the Company’s reports filed with the Securities and Exchange Commission (“SEC”). The reader should not place undue reliance on any forward-looking statement, which speaks only as of the date made. This press release also contains information regarding the past performance of the Company and its respective investments and operations. The reader should note that prior or current performance is not a guarantee or indication of future performance. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, and all such information should only be viewed as historical data. Future results could differ materially as a result of a variety of risks and uncertainties. Some factors which may affect the accuracy of the forward-looking statements apply generally to the industries in which the Company operates, including the residential and commercial real estate industry in which BBXRE develops, operates, manages, and invests in real estate, the home improvement industry in which Renin operates, and the sugar and confectionery industry in which BBX Sweet Holdings operates. Risks and uncertainties include risks relating to public health issues and general economic uncertainties, including, supply chain issues, labor shortages, current inflationary trends, and rising interest rates. The current economic environment has had a negative impact on our margins, including increased energy and raw material costs and increasing wages in the labor markets in which we compete. We expect that inflation will continue to pressure our margins in future periods, especially to the extent that we are not able to increase prices to customers. Many factors including (i) consumer demand, (ii) disruptions in global supply chains, (iii) employee absenteeism and a general labor shortage as well as increases in the cost of hiring and maintaining employees, (iv) disruptions in credit and capital markets, (v) customer retention, including our ability to maintain our relationships with large customers, (vi) U.S. Federal Reserve monetary policy decisions in response to inflationary trends, (vii) changes in U.S. federal income or other tax laws and interpretation of tax laws and (viii) heightened cybersecurity risks all impact the Company's operations, results and financial condition. The duration and severity of economic and market conditions are uncertain and may impact future periods. At this time we are also not able to predict whether the current economic conditions will result in prolonged changes in our customers’ behavior, which may include prolonged decreases in discretionary spending and reductions in demand for retail store and confectionery products, home improvement products or real estate, each of which would have a material adverse impact on our business, operating results and financial condition. In addition, current inflationary trends may adversely impact our results of operations. BBXRE has experienced a significant increase in commodity and labor prices, which has resulted in higher development and construction costs, and increasing interest rates may adversely impact demand for real estate and its developments, as well as its and its customers financing costs and sales prices resulting from increased capitalization rates. IT’SUGAR has experienced an increase in the cost of inventory and freight, and Renin has experienced significant supply chain challenges and a significant increase in costs related to shipping and raw materials. The significant increase in Renin’s costs has caused Renin to be out of compliance with the terms of financial covenants under its credit facility, and it is anticipated that additional loan paydowns or the full repayment of its loan facility may be required. These inflationary trends could have a material adverse effect on the Company’s results of operations and financial condition if the Company is not able to increase prices to its customers to offset the increase in its costs. A number of factors may adversely affect the labor force available to us or increase our labor costs, including labor shortages and increased employee turnover, federal unemployment subsidies, and other government regulations. A sustained labor shortage or increased turnover rates could lead to increased costs, such as increased overtime pay to meet demand and increased wage rates to attract and retain employees, or negatively affect our operations or adversely impact our business and results. Further, any mitigation measures we take in response to a decrease in labor availability or an increase in labor costs may be unsuccessful and could have negative effects. Additionally, rising interest rates could also have an adverse impact on homebuyers and home sales, the availability of financing, the affordability of residential mortgages, the profitability of development projects as a majority of development costs are financed with third party debt and the value of multifamily apartment communities as rising interest rates increase capitalization rates applied to sales transactions. Reference is also made to the other risks and uncertainties described in BBX Capital’s Annual Report on Form 10-K for the year ended December 31, 2022, which will be filed on March 15, 2023, and then will be available on the SEC's website, https://www.sec.gov, and on BBX Capital’s website, www.BBXCapital.com. The Company cautions that the foregoing factors are not exclusive, and that the reader should not place undue reliance on any forward-looking statement, which speaks only as of the date made. The following supplemental table presents BBX Capital’s Consolidating Statement of Operations (unaudited) for the three months ended December 31, 2022 (in thousands): Revenues: BBX Capital Real Estate BBX Sweet Holdings Renin Other Reconciling Items and Eliminations Segment Total Trade sales $ — 37,706 30,835 2,160 (7 ) 70,694 Sales of real estate inventory 10,981 — — — — 10,981 Interest income 1,452 — — — 573 2,025 Net gains on sales of real estate assets 22,960 — — — — 22,960 Other revenue 392 — — 692 (102 ) 982 Total revenues 35,785 37,706 30,835 2,852 464 107,642 Costs and expenses: Cost of trade sales — 22,373 30,005 690 (8 ) 53,060 Cost of real estate inventory sold 4,794 — — — — 4,794 Interest expense — 318 1,183 — (762 ) 739 Recoveries from loan losses, net (620 ) — — — — (620 ) Impairment losses — 174 — — — 174 Selling, general and administrative expenses 4,816 13,516 3,978 2,020 5,387 29,717 Total costs and expenses 8,990 36,381 35,166 2,710 4,617 87,864 Operating income (losses) 26,795 1,325 (4,331 ) 142 (4,153 ) 19,778 Equity in net earnings of unconsolidated real estate joint ventures 2,702 — — — — 2,702 Other income (expense) 1 200 (58 ) 2 42 187 Foreign exchange loss — (68 ) (123 ) — — (191 ) Income (loss) before income taxes $ 29,498 1,457 (4,512 ) 144 (4,111 ) 22,476 The following supplemental table presents BBX Capital’s Consolidating Statement of Operations (unaudited) for the three months ended December 31, 2021 (in thousands): BBX Capital Real Estate BBX Sweet Holdings Renin Other Reconciling Items and Eliminations Segment Total Revenues: Trade sales $ — 36,225 39,776 2,186 (8 ) 78,179 Sales of real estate inventory 17,705 — — — — 17,705 Interest income 583 — — — 1,007 1,590 Net gains on sales of real estate assets 205 — — — — 205 Other revenue 352 — — 368 (186 ) 534 Total revenues 18,845 36,225 39,776 2,554 813 98,213 Costs and expenses: Cost of trade sales — 22,431 36,916 733 (8 ) 60,072 Cost of real estate inventory sold 6,265 — — — — 6,265 Interest expense — 178 543 1 (241 ) 481 Recoveries from loan losses, net (736 ) — — — — (736 ) Impairment losses — 38 — — — 38 Selling, general and administrative expenses 1,878 13,800 4,204 1,701 4,524 26,107 Total costs and expenses 7,407 36,447 41,663 2,435 4,275 92,227 Operating income (losses) 11,438 (222 ) (1,887 ) 119 (3,462 ) 5,986 Equity in net earnings of unconsolidated real estate joint ventures 2,162 — — — — 2,162 Other income — 53 — 1 35 89 Foreign exchange gain — — 24 — — 24 Income (loss) before income taxes $ 13,600 (169 ) (1,863 ) 120 (3,427 ) 8,261 The following supplemental table presents BBX Capital’s Consolidating Statement of Operations for the year ended December 31, 2022 (in thousands): BBX Capital Real Estate BBX Sweet Holdings Renin Other Reconciling Items and Eliminations Segment Total Revenues: Trade sales $ — 139,718 131,951 8,470 (14 ) 280,125 Sales of real estate inventory 27,794 — — — — 27,794 Interest income 3,617 — — — 2,376 5,993 Net gains on sales of real estate assets 24,289 — — — — 24,289 Other revenue 1,835 — — 2,572 (563 ) 3,844 Total revenues 57,535 139,718 131,951 11,042 1,799 342,045 Costs and expenses: Cost of trade sales — 83,307 127,623 2,805 (14 ) 213,721 Cost of real estate inventory sold 11,463 — — — — 11,463 Interest expense — 1,015 3,588 2 (2,206 ) 2,399 Recoveries from loan losses, net (4,835 ) — — — — (4,835 ) Impairment losses 311 238 — — — 549 Selling, general and administrative expenses 13,772 55,617 17,077 7,224 22,525 116,215 Total costs and expenses 20,711 140,177 148,288 10,031 20,305 339,512 Operating income (losses) 36,824 (459 ) (16,337 ) 1,011 (18,506 ) 2,533 Equity in net earnings of unconsolidated real estate joint ventures 38,414 — — — — 38,414 Other (expense) income (7 ) 718 (57 ) 4 306 964 Foreign exchange (loss) gain — (70 ) 950 — — 880 Income (loss) before income taxes $ 75,231 189 (15,444 ) 1,015 (18,200 ) 42,791 The following supplemental table presents BBX Capital’s Consolidating Statement of Operations for the year ended December 31, 2021 (in thousands): BBX Capital Real Estate BBX Sweet Holdings Renin Other Reconciling Items and Eliminations Segment Total Revenues: Trade sales $ — 84,215 146,255 7,616 (8 ) 238,078 Sales of real estate inventory 65,479 — — — — 65,479 Interest income 2,048 36 — — 4,329 6,413 Net gains on sales of real estate assets 643 — — — — 643 Other revenue 1,504 — — 2,045 (565 ) 2,984 Total revenues 69,674 84,251 146,255 9,661 3,756 313,597 Costs and expenses: Cost of trade sales — 52,497 130,366 2,291 (8 ) 185,146 Cost of real estate inventory sold 29,690 — — — — 29,690 Interest expense — 429 1,830 2 (822 ) 1,439 Recoveries from loan losses, net (7,774 ) — — — — (7,774 ) Impairment losses — 38 — — — 38 Selling, general and administrative expenses 7,587 31,524 15,857 5,978 15,068 76,014 Total costs and expenses 29,503 84,488 148,053 8,271 14,238 284,553 Operating income (losses) 40,171 (237 ) (1,798 ) 1,390 (10,482 ) 29,044 Equity in net earnings of unconsolidated real estate joint ventures 18,154 — — — — 18,154 Other (expense) income (14 ) 131 — — 224 341 Gain on the consolidation of IT'SUGAR, LLC — 15,890 — — — 15,890 Foreign exchange gain — — 812 — — 812 Income (loss) before income taxes $ 58,311 15,784 (986 ) 1,390 (10,258 ) 64,241 View source version on businesswire.com: https://www.businesswire.com/news/home/20230315005194/en/
BBX Capital, Inc. Contact Info: Investor Relations Contact: Leo Hinkley, Managing Director, Investor Relations Officer 954-940-5300, Email: LHinkley@BBXCapital.com Media Relations Contact: Kip Hunter, Kip Hunter Marketing 954-303-5551, Email: kip@kiphuntermarketing.com