BBX Capital, Inc. reported significant financial challenges in its latest 10-Q filing for the three and nine months ended September 30, 2024. Total revenues for the third quarter decreased to $78.4 million, down from $103.3 million in the same period of 2023. For the nine months, revenues fell to $234.6 million from $305.1 million year-over-year. The decline in revenue was attributed to lower real estate development management fees, decreased equity earnings from joint ventures, and a drop in sales from its IT’SUGAR subsidiary, which faced declining consumer demand and increased operational costs.

The company reported a net loss of $10.7 million for the third quarter, compared to a loss of $6.5 million in the prior year. For the nine months, the net loss was $33.2 million, significantly higher than the $6.4 million loss reported in the same period of 2023. The diluted loss per share for the third quarter was $(0.74), compared to $(0.55) in 2023.

BBX Capital's total costs and expenses for the third quarter were $89.7 million, down from $112.9 million in 2023, while for the nine months, expenses decreased to $277.3 million from $335.5 million. Despite the reduction in costs, the company still faced substantial losses, particularly in its Altman segment, which reported a loss before income taxes of $(3.0) million for the third quarter, a stark contrast to an income of $3.1 million in the same period last year.

Strategically, BBX Capital restructured its real estate division under the Altman name and made significant investments in joint ventures, increasing its investments in unconsolidated real estate joint ventures to $62.1 million as of September 30, 2024, up from $44.1 million at the end of 2023. The company also faced challenges from rising interest rates, inflation, and supply chain disruptions, which have adversely affected its operations and profitability.

In terms of liquidity, BBX Capital reported cash and cash equivalents of $93.4 million as of September 30, 2024, an increase from $90.3 million at the end of 2023. The company also noted a significant increase in restricted cash, which rose to $30.0 million from $21.3 million. However, the accumulated deficit expanded to $(34.7) million from $(1.8) million at the end of the previous fiscal year.

Overall, BBX Capital's performance reflects a challenging economic environment, with strategic adjustments aimed at navigating these difficulties while managing increased operational costs and declining revenues across its segments.