Executive Summary

Q2 2024 revenue fell 29.6% year over year to $75.2M, with a net loss attributable to shareholders of $(10.0)M and diluted EPS of ($0.74); pressure was driven by sharply lower construction revenues and no developed lot sales at Beacon Lake versus the prior year, partly offset by higher equity earnings from The Main Las Olas JV .
Liquidity remains robust: cash and cash equivalents $116.0M, total shareholders’ equity $286.2M, and fully diluted book value per share $19.96; the company repurchased 500,000 Class A shares at $8.75, leaving $9.6M authorization capacity .
Segment dynamics were mixed: IT’SUGAR’s operating loss widened on weaker comps and elevated occupancy/payroll tied to 2023 store investments, while Renin improved gross margin amid cost actions and lower shipping costs but faced softer demand; real estate results declined on fewer Beacon Lake monetizations and lower construction activity .
No formal guidance or Q2 earnings call transcript was available; consensus estimates via S&P Global were unavailable. Near‑term stock catalysts center on real estate monetizations (e.g., Main Las Olas distributions) and progress at BBX Logistics projects (Delray/Lakeland/Davie) against a cautious macro backdrop .

What Went Well and What Went Wrong

What Went Well
- Renin achieved higher gross margin and gross margin percentage due to price increases, reduced shipping costs, and cost‑reduction initiatives; interest expense declined after amending its TD Bank facility .
- BBX Real Estate recognized $1.6M equity earnings and received $2.1M distributions from The Main Las Olas sale of its residential tower, supporting JV earnings despite otherwise softer activity .
- Liquidity and capital flexibility remained strong: $116.0M cash, $10.8M securities available for sale, and buyback execution (500k shares at $8.75) with $9.6M capacity remaining .
What Went Wrong
- Real Estate revenues fell materially on lower construction revenues and no developed lot sales at Beacon Lake (15 sold in Q2’23), driving segment operating loss versus prior‑year profit .
- IT’SUGAR’s operating loss widened due to lower comparable store sales and higher occupancy/payroll tied to new/expanded locations opened in 2023, pressuring consolidated results .
- Altman Builders faced subcontractor performance failures, causing unforeseen costs and a significant decline in expected general contractor profits; BBXRE expects a multi‑year decline in operating results given pipeline monetization timing and reduced fee income .

Financial Results

Metric	Q4 2023	Q1 2024	Q2 2024
Revenue ($USD Millions)	$96.1	$81.0	$75.222
(Loss) Before Income Taxes ($USD Millions)	$(15.1)	$(15.4)	$(12.167)
Net (Loss) Attributable to Shareholders ($USD Millions)	$(12.9)	$(13.0)	$(9.979)
Diluted EPS ($USD)	$(0.88)	$(0.94)	$(0.74)
Net Loss Margin (%)	(13.4%) (computed from $12.9 loss/$96.1 rev)	(16.0%) (computed from $13.0 loss/$81.0 rev)	(13.3%) (computed from $9.979 loss/$75.222 rev)

Metric	Q2 2023	Q2 2024
Revenue ($USD Millions)	$106.844	$75.222
(Loss) Before Income Taxes ($USD Millions)	$(8.687)	$(12.167)
Net (Loss) Attributable to Shareholders ($USD Millions)	$(8.001)	$(9.979)
Diluted EPS ($USD)	$(0.56)	$(0.74)

Segment revenue breakdown

Segment Revenue ($USD Millions)	Q2 2023	Q2 2024
BBX Capital Real Estate	$45.816	$19.033
BBX Sweet Holdings	$35.013	$31.892
Renin	$24.344	$22.435
Other	$2.313	$1.913
Reconciling Items & Eliminations	$(0.642)	$(0.051)
Total	$106.844	$75.222

Key balance sheet KPIs

KPI	Q4 2023 (12/31/23)	Q1 2024 (3/31/24)	Q2 2024 (6/30/24)
Cash and Cash Equivalents ($M)	$90.3	$108.2	$116.049
Securities Available for Sale ($M)	$44.6	$30.6	$10.808
Total Assets ($M)	$674.2	$657.9	$645.650
Total Shareholders’ Equity ($M)	$311.5	$299.3	$286.185
Fully Diluted Book Value/Share ($)	$21.59	$20.20	$19.96

Explanations: BBXRE revenue decline reflects fewer Beacon Lake monetizations and lower construction volumes; IT’SUGAR losses widened on weaker comps and cost structure; Renin’s margin benefited from pricing and lower shipping costs but sales softened .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Q3 onward	None provided	None provided	Maintained: no formal guidance
Margins (EBIT/EBITDA/Net)	FY/Q3 onward	None provided	None provided	Maintained: no formal guidance
OpEx	FY/Q3 onward	None provided	None provided	Maintained: no formal guidance
OI&E / Tax rate	FY/Q3 onward	None provided	None provided	Maintained: no formal guidance
Segment-specific	FY/Q3 onward	None provided	None provided	Maintained: no formal guidance
Dividends	FY/Q3 onward	None provided	None provided	Maintained: no formal guidance

Additional capital actions: share repurchase of 500k shares at $8.75; remaining authorization $9.6M .

Earnings Call Themes & Trends

No Q2 2024 earnings call transcript was available via company documents or IR site; themes below reflect management’s MD&A and filings.

Topic	Previous Mentions (Q4 2023, Q1 2024)	Current Period (Q2 2024)	Trend
Interest rates and inflation	Persistent inflation and higher rates pressuring costs, financing availability, and margins (2023/early 2024 context)	Continued adverse impact on development returns, availability/cost of capital, insurance costs; macro uncertainty persists	Adverse, ongoing
Supply chain and labor	IT’SUGAR and Renin faced supply chain delays and labor cost increases in 2023	Cost reductions at Renin improved gross margin; IT’SUGAR still faces higher occupancy/payroll	Mixed: improving at Renin, pressured at IT’SUGAR
Real estate monetization & pipeline	Monetizations accelerated in 2021–2022; pipeline paced by financing and market conditions	Expect multi‑year operating result decline; JV equity earnings from The Main Las Olas; active projects (Altis, logistics) progressing	Monetization timing uncertain; pipeline selective
Regulatory/legal/credit	Renin amended TD Bank facility; covenant risks highlighted	In compliance at 6/30/24; risks remain if demand weakens	Risk managed, still present
Consumer demand	Softening demand affecting IT’SUGAR pricing power; Renin demand weaker post‑pandemic home improvement cycle	Lower comps at IT’SUGAR; Renin demand softer despite better margin	Cautious

Management Commentary

“BBXRE continues to expect a significant decline in its operating results in 2024 and over the next several years… [due to] accelerated monetization in 2021–2022, fewer projects meeting criteria, and higher costs” .
“We have maintained significant liquidity. As of June 30, 2024, consolidated cash and cash equivalents were $116.0 million and securities available for sale were $10.8 million” .
On Renin: “Amended and restated TD Bank credit facility… subject to covenants including excess availability; Renin was in compliance at June 30, 2024” .
On macro risks: “Inflationary and economic trends… may continue to adversely impact results… higher interest rates… decreased consumer demand… increased operating expenses” .

Q&A Highlights

No earnings call transcript available; thus, no Q&A to summarize. Company filings instead emphasize macro headwinds, liquidity posture, covenant compliance, and project execution risks .

Estimates Context

Wall Street consensus for Q2 2024 EPS and revenue via S&P Global was unavailable for BBXIA (no estimates returned; likely limited coverage). As a result, no vs‑consensus comparison can be made [Attempted via GetEstimates; unavailable].
Where estimates are unavailable, investors should benchmark results against internal expectations and prior‑period trajectories highlighted in the tables above .

Key Takeaways for Investors

Revenue contracted significantly YoY due to lower construction activity and monetizations at BBXRE; expect continued variability in real estate earnings until stabilization/sales of projects resume; monitor Altis and logistics developments for timing/value realization .
IT’SUGAR’s weak comps and higher occupancy/payroll weigh on profitability; watch for demand normalization and cost discipline to narrow losses .
Renin is executing margin recovery (pricing, shipping costs, cost actions) but faces softer demand; covenant compliance is stable post‑amendment—track quarterly availability and gross margin trajectory .
Liquidity and equity base provide flexibility (cash $116.0M; equity $286.2M); buyback capacity ($9.6M) offers potential capital return optionality .
Equity earnings from The Main Las Olas and other JV distributions can partially offset operating headwinds; pipeline progress across logistics (Delray/Lakeland/Davie) could become medium‑term catalysts .
With no formal guidance or consensus coverage, shares may trade on execution signals: JV monetizations, Renin margin/demand trends, IT’SUGAR comps, and any capital allocation updates .
Macro sensitivity remains high (rates, insurance, supply chain, consumer demand); risk‑reward hinges on disciplined project selection and cost control across segments .

Sources: Q2 2024 press release and 8‑K , Q2 2024 10‑Q and MD&A , Q1 2024 press release , Q4 2023 press release , IR site press release index .

BBX Capital, Inc. (BBXIA)·Q2 2024 Earnings Summary