Segment Information

9 Months Ended

Sep. 30, 2023

Segment Information

Segment Information

17. Segment Information

The Company conducts primarily all of its business in the following three reportable segments: (1) residential, (2) hospitality and (3) commercial. The Company’s reportable segments are strategic business units that offer different products and services. They are each managed separately and decisions about allocations of resources are determined by management based on these strategic business units. The Company uses income before income taxes and non-controlling interest and other qualitative measures for purposes of making decisions about allocating resources to each segment and assessing each segment’s performance, which the Company believes represents current performance measures.

The accounting policies of the segments are set forth in Note 2 to the Company’s consolidated financial statements contained in Item 15 of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022. Total revenue represents sales to unaffiliated customers, as reported in the Company’s condensed consolidated statements of income. All significant intercompany transactions have been eliminated in consolidation. The caption entitled “Other” consists of mitigation credit, title and insurance business revenue and cost of revenue; corporate operating expenses; corporate depreciation and amortization and corporate other income and expense items.

Information by business segment is as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2023		2022		2023		2022
Operating revenue:
Residential	$	35,509	$	15,050	$	126,946	$	70,774
Hospitality		47,999		29,047		118,466		74,654
Commercial		16,377		12,618		53,684		43,340
Other		1,505		861		3,451		1,929
Consolidated operating revenue	$	101,390	$	57,576	$	302,547	$	190,697
Income (loss) before income taxes:
Residential (a)	$	24,231	$	10,654	$	79,333	$	38,577
Hospitality		1,174		4,404		1,296		9,187
Commercial (b) (c)		653		2,291		7,128		12,444
Other (d)		(593)		(1,125)		(4,030)		(2,961)
Consolidated income before income taxes	$	25,465	$	16,224	$	83,727	$	57,247

(a) The three months ended September 30, 2023 and 2022, includes $8.8 million and $2.2 million, respectively, of equity in income from unconsolidated joint ventures related to the Latitude Margaritaville Watersound JV. The nine months ended September 30, 2023 and 2022, includes $18.6 million and $2.5 million, respectively, of equity in income from unconsolidated joint ventures related to the Latitude Margaritaville Watersound JV. See Note 4. Joint Ventures for additional information.

(b) The three and nine months ended September 30, 2022, include a gain of $1.4 million on land and impact fees contributed to the unconsolidated Pier Park RI JV. See Note 4. Joint Ventures and Note 16. Other Income, Net for additional information.

(c) The nine months ended September 30, 2022, include a gain of $0.4 million on land contributed to the unconsolidated Electric Cart Watersound JV. See Note 4. Joint Ventures and Note 16. Other Income, Net for additional information.

(d) The three and nine months ended September 30, 2022, include a gain on insurance recovery of $0.9 million and $4.2 million, respectively, related to Hurricane Michael. See Note 16. Other Income, Net for additional information.

	September 30,		December 31,
	2023		2022
Total assets:
Residential	$	234,802	$	225,854
Hospitality		478,357		425,529
Commercial		510,131		470,629
Other		318,816		308,827
Total assets	$	1,542,106	$	1,430,839