BBX Capital, Inc. Reports Financial Results For the Fourth Quarter and Full Year of 2023

Rhea-AI Summary

BBX Capital, Inc. (BBXIA) reported financial results for Q4 and year ended December 31, 2023. Q4 saw a decrease in revenues and a net loss compared to the previous year. The year ended with increased revenues but a net loss. The balance sheet showed cash and cash equivalents of $90.3 million, securities available for sale of $44.6 million, and total assets of $674.2 million.

Positive

• None.

Negative

• The financial results for Q4 and the year ended December 31, 2023, showed a decrease in revenues and a net loss compared to the previous year.
• The diluted loss per share for both Q4 and the year ended December 31, 2023, was significant compared to the previous year.
• Despite having cash and cash equivalents of $90.3 million, the company reported a net loss for the year ended December 31, 2023.

Insights

Financial Analyst

BBX Capital's financial results for Q4 2023 show a stark contrast to the previous year, with a significant shift from profitability to a loss. The reported net loss of $(12.9) million compared to a net income of $15.4 million in Q4 2022 indicates a substantial downturn. The diluted loss per share of $(0.88) is a key figure for shareholders, as it directly affects the value of their investments. This performance may trigger a review of the company's valuation, investment risk profile and future earnings potential. The year-over-year revenue increase to $401.3 million suggests that while the company is growing its top line, it struggles to translate this into bottom-line profitability, possibly due to increased costs or inefficiencies.

On the balance sheet, a healthy cash position and securities available for sale provide liquidity, which could cushion operational setbacks and support strategic initiatives. However, the prepayment of the note receivable from Bluegreen Vacations in January 2024, after the reporting period, will affect liquidity and should be monitored for its impact on cash flows. The increase in total assets and a stable shareholders' equity position are positive signs but must be weighed against the loss-making performance.

Investors should consider these figures in light of the company's sectors of operation, such as real estate and consumer goods, which may face industry-specific challenges. The fully diluted book value per share of $21.59 provides a snapshot of the company's net worth from a shareholder's perspective, but the recent losses may affect investor confidence and the stock's market performance.

Market Research Analyst

The financial downturn reported by BBX Capital could be indicative of broader market trends or sector-specific headwinds. The company's segments, including BBX Capital Real Estate, BBX Sweet Holdings and Renin, operate in markets that may be susceptible to economic fluctuations, consumer spending patterns and interest rate changes. The decline in net income year-over-year suggests that the company may not be adequately hedged against these factors or may be experiencing operational inefficiencies.

An in-depth analysis of the company's business operations and investments, as detailed in their Annual Report, is essential to understand the root causes of the reported losses. Stakeholders should assess the company's strategic response to these challenges, such as cost management, product diversification and market expansion strategies. The impact of these financial results on BBX Capital's stock will depend on investor sentiment, which in turn is influenced by the company's ability to articulate and implement a clear path to profitability.

Given the competitive landscape of the industries BBX Capital operates in, it is important for the company to benchmark its performance against peers and industry averages. This will provide a clearer picture of whether BBX Capital's financial results are an outlier or in line with sector performance. Such comparative analysis can inform investment decisions and strategic planning.

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)-- 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, 2023.

Selected highlights of BBX Capital’s consolidated financial results include:

Fourth Quarter 2023 Compared to Fourth Quarter 2022

	•	Total consolidated revenues of $96.1 million vs. $107.6 million
	•	Loss before income taxes of $(15.1) million vs income before income taxes of $22.5 million
	•	Net loss attributable to shareholders of $(12.9) million vs. net income attributable to shareholders of $15.4 million
	•	Diluted loss per share of $(0.88) vs. diluted earnings per share of $0.99

Year Ended December 31, 2023 Compared to the Year Ended December 31, 2022

	•	Total consolidated revenues of $401.3 million vs. $342.0 million
	•	Loss before income taxes of $(21.7) million vs. income before income taxes of $42.8 million
	•	Net loss attributable to shareholders of $(20.8) million vs. income attributable to shareholders of $28.0 million
	•	Diluted loss per share of $ (1.44) vs diluted earnings per share of $ 1.81

Balance Sheet as of December 31, 2023

	•	Cash and cash equivalents of $90.3 million (including $4.5 million held in variable interest entities)
	•	Securities available for sale of $44.6 million (primarily U.S. Treasury and federal agency securities with maturities of less than one year)
	•	Note receivable from Bluegreen Vacations Holding Corporation (NYSE: BVH) of $35.0 million (1)
	•	Total consolidated assets of $674.2 million
	•	Total shareholders' equity of $311.5 million
	•	Fully diluted book value per share of $21.59 (2)

	(1)	The outstanding balance of the note receivable was prepaid in full in January 2024.
	(2)	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, 2023.

For more complete and detailed information regarding BBX Capital and its financial results, business, operations, investments, and risks, including the results of BBX Capital Real Estate, BBX Sweet Holdings, and Renin, please see BBX Capital’s Annual Report on Form 10-K for the year ended December 31, 2023, which is available on the SEC's website, https://www.sec.gov, and on BBX Capital’s website, www.BBXCapital.com.

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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240315747914/en/

BBX Capital, Inc. Contact Info:

Investor Relations:

Leslie Martinez, Investor Relations

954-940-5300, Email: LMartinez@BBXCapital.com

Media Relations:

Kip Hunter, Kip Hunter Marketing

954-303-5551, Email: kip@kiphuntermarketing.com

Source: BBX Capital, Inc.

FAQ

What were BBX Capital's total consolidated revenues for Q4 2023 compared to Q4 2022?

BBX Capital reported total consolidated revenues of $96.1 million for Q4 2023 compared to $107.6 million in Q4 2022.

What was BBX Capital's net loss attributable to shareholders for the year ended December 31, 2023?

BBX Capital reported a net loss attributable to shareholders of $(20.8) million for the year ended December 31, 2023.

What was BBX Capital's cash and cash equivalents as of December 31, 2023?

BBX Capital had cash and cash equivalents of $90.3 million as of December 31, 2023.

Where can I find more detailed information about BBX Capital's financial results and operations?

For more detailed information, you can refer to BBX Capital's Annual Report on Form 10-K for the year ended December 31, 2023, available on the SEC's website and BBX Capital's website.