Executive Summary

Q1 results were weak: revenue fell to $81.0M and diluted EPS to ($0.94), reversing from a profit a year ago, driven by Altman Builders’ construction losses, lower construction revenue, and continued soft demand at IT’SUGAR; Renin improved but remains pressured .
Liquidity is solid with $108.2M cash and $30.6M securities AFS at quarter-end, enhanced by the $35.0M BVH note repayment in January; management also repurchased 500k Class A shares in May at $8.75, signaling capital return priority .
BBX Capital Real Estate expects a significant multi‑year decline vs recent years given higher rates, elevated costs, fewer qualifying projects, and construction execution issues at Altman; narrative is more cautious vs prior years .
No quantitative guidance or earnings call; Wall Street consensus from S&P Global was unavailable at the time of writing, so estimate comparisons are not provided (S&P Global data unavailable) .

What Went Well and What Went Wrong

What Went Well
- Renin’s operating trend improved YoY as pricing actions, lower shipping costs, and cost initiatives lifted gross margin and reduced interest expense, partially offsetting lower demand .
- Liquidity and flexibility: $108.2M cash and $30.6M AFS securities at 3/31/24, plus $35.0M cash inflow from BVH note repayment in January 2024 .
- Capital allocation: repurchased 500,000 Class A shares in May 2024 for ~$4.4M ($8.75/sh) under the buyback program .
What Went Wrong
- Q1 loss driven by BBXRE/Altman Builders’ contract losses tied to subcontractor performance failures and unforeseen completion costs; non‑recurrence of 2023 remeasurement gains also hurt comps .
- IT’SUGAR comps fell ~12% with higher occupancy and payroll, compressing margins despite new/expanded stores; Las Olas sales declined 32.4% YoY (partially offset by a $0.5M product-line divestiture gain) .
- Renin still faces demand softness and covenant risks despite a March facility amendment; compliance depends on meeting operating and availability thresholds in 2024–2025 .

Financial Results

Consolidated P&L vs prior two quarters (USD, thousands; periods oldest → newest)

Metric	Q3 2023	Q4 2023	Q1 2024
Revenues ($USD Thousands)	103,339	96,100	80,967
Diluted EPS ($)	(0.55)	(0.88)	(0.94)
Operating Income (Loss) ($USD Thousands)	(9,585)	N/A	(16,816)

Segment revenue and pre‑tax (Q1 2024 vs Q1 2023; USD, thousands)

Segment	Q1 2023 Revenues	Q1 2024 Revenues	Q1 2023 (Loss) Income Before Taxes	Q1 2024 (Loss) Income Before Taxes
BBX Capital Real Estate	30,445	21,965	17,876	(4,404)
BBX Sweet Holdings	32,725	30,244	(2,508)	(4,901)
Renin	27,976	25,564	(3,031)	356
Other	3,452	3,159	2,692	395
Reconciling & Eliminations	400	35	(5,839)	(6,805)
Total	94,998	80,967	9,190	(15,359)

Selected KPIs

KPI	Q1 2024
IT’SUGAR comparable store sales YoY	~−12.0%
IT’SUGAR store footprint	100+ locations across U.S. and Canada
Las Olas Confections & Snacks revenue YoY	−32.4%
Las Olas gain on sale of product line	~$0.5M
Renin revenue concentration	$16.9M to 3 major customers (4.9%, 6.6%, 9.2% of total revenues)
Consolidated cash & equivalents (3/31/24)	$108.2M
Securities AFS (3/31/24)	$30.6M

Balance sheet snapshot (3/31/24)

Total assets $657.9M; shareholders’ equity $299.3M; fully diluted book value per share $20.20 .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Consolidated quantitative guidance	FY 2024	None provided	None provided	Maintained (no quant. guidance)
BBXRE outlook	2024 and “next several years”	Prior years benefitted from robust cycle	Expects significant decline vs recent years due to higher rates, costs, fewer qualifying projects, construction execution issues, lower fee income; sales timing/profitability uncertain	Lower qualitative outlook
Renin liquidity/covenants	2024–2025	Multiple waivers/amendments historically	Amended & restated TD Bank facility in March; currently compliant but risks remain if demand/availability weaken	Risk maintained, structure reset
IT’SUGAR strategy	2024	Store expansion with “retailtainment”	Slower demand; focus on higher‑margin mix, landlord-funded buildouts, relocations/closures; pricing constrained by elasticity	Tactical shift to margin resilience
Capital allocation	2Q24	$13.9M buyback capacity at 3/31/24	Repurchased 500k Class A shares at $8.75 in May	Executed buyback

Earnings Call Themes & Trends

No Q1 2024 earnings call transcript was available; themes inferred from MD&A and press materials.

Topic	Previous Mentions (Q3 2023 and Q4 2023)	Current Period (Q1 2024)	Trend
Rates/financing availability	Management flagged inflation/rates and slowing investor demand; Renin covenant stress	Higher rates and cautious lenders are curbing BBXRE pipeline and profitability; Renin amended facility, remains risk‑sensitive	Deteriorated vs prior years; still challenging
Supply chain/cost inflation	Renin margins improved from price hikes and lower freight; still costly	Renin: better margins from pricing and shipping costs; IT’SUGAR: costs down but pricing constrained; insurance costs elevated	Gradual improvement at Renin; mixed elsewhere
Product/demand	IT’SUGAR demand decelerated; Renin retail channel weak	IT’SUGAR comps −12%; Renin demand remains soft	Demand softness persists
Real estate execution	BBXRE monetization to slow; project starts curtailed	Altman Builders sub failures led to contract losses; pipeline subdued; timing/profits uncertain	Execution risk increased
Capital allocation	—	Buyback executed in May; $108.2M cash	Supportive to equity if sustained

Management Commentary

“While our current operating results reflect a general slowdown in activity, we can continue to report that, in spite of these headwinds, our portfolio companies remain focused on opportunistically generating growth and adapting their strategies as may be appropriate in the current environment… We remain committed to our objective of achieving long-term growth and building shareholder value.” — Jarett S. Levan, CEO & President (Q3 2023 press release) .
Q1 2024 MD&A emphasizes (i) Altman Builders’ losses tied to subcontractor performance failures, (ii) non‑recurrence of $17.1M of 2023 non‑cash gains, (iii) IT’SUGAR weakness and Las Olas margin pressure, partially offset by Renin’s improved margins .

Q&A Highlights

No Q1 2024 earnings call or transcript located for BBXIA; no Q&A disclosures available [Search returned none].

Estimates Context

S&P Global/Capital IQ consensus for Q1 2024 EPS and revenue was unavailable at the time of analysis due to data access limits; therefore, estimate comparisons and beat/miss assessments are not provided (S&P Global data unavailable).

Key Takeaways for Investors

Q1 print was decisively negative on earnings quality, with operating losses widening to $(16.8)M and EPS at ($0.94), driven by Altman Builders’ contract issues and softer demand at Sweet Holdings; trend vs Q4 and prior year is weaker .
BBXRE outlook is the core swing factor: sustained higher rates, rising insurance, and constrained financing reduce expected monetization and elevate execution risk; this tempers medium‑term value realization from the development pipeline .
Renin shows early signs of operating stabilization from pricing and lower freight; watch 2024 covenant compliance and availability thresholds under the amended TD Bank facility as key guardrails .
IT’SUGAR needs demand stabilization; management is prioritizing mix, landlord-funded buildouts, and footprint reshaping to protect margins under tighter pricing elasticity .
Liquidity and corporate actions (BVH note repayment, buyback) provide optionality and potential downside support; sustained repurchases near book (~$20.20 FD BVPS) could be accretive if cash flows hold .
Near-term trading likely remains headline‑driven by (i) project execution updates at Altman, (ii) Renin facility compliance, and (iii) IT’SUGAR comps; absence of explicit guidance and lack of call reduce transparency premium .
For positioning, emphasize catalysts that could re‑rate the equity: project deliveries/sales at acceptable cap rates, demonstrable Renin covenant headroom, and sequential improvement in IT’SUGAR comps; conversely, further construction losses or financing slippage would be negative .

BBX Capital, Inc. (BBXIA)·Q1 2024 Earnings Summary