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Revenue
 9 Months Ended
Sep. 30, 2024
Revenue  
Revenue

2. Revenue

Total revenue recognized under ASC 606 was approximately $205.7 million and $280.9 million for the nine months ended September 30, 2024 and 2023, respectively, while specialty rental income was approximately $96.9 million and $156.5 million subject to the guidance of ASC 842 for the nine months ended September 30, 2024 and 2023 respectively. Total revenue recognized under contracts recognized under ASC 606 was approximately $65.8 million and $93.5 million for the three months ended September 30, 2024 and 2023, respectively, while specialty rental income was approximately $29.4

million and $52.4 million subject to the guidance of ASC 842 for the three months ended September 30, 2024 and 2023, respectively.

The following table disaggregates our services income by our two reportable segments as well as the All Other category: Hospitality and Facility Services – South (“HFS – South”), Government, and All Other for the dates indicated below:

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​

​

​

​

​

​

​

​

​

​

​

​

​

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For the Three Months Ended

​

For the Nine Months Ended

​

​

September 30, 

​

September 30, 

​

​

2024

​

2023

​

2024

​

2023

HFS – South

​

$

36,456

​

$

36,004

​

$

108,775

​

$

107,938

​

​

​

​

​

​

​

​

​

​

​

​

​

Government

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$

25,665

​

$

54,662

​

$

88,473

​

$

164,245

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​

​

​

​

​

​

​

​

​

​

​

​

All Other

​

$

3,675

​

$

2,872

​

$

8,437

​

$

8,714

​

​

​

​

​

​

​

​

​

​

​

​

​

Total services revenues

​

$

65,796

​

$

93,538

​

$

205,685

​

$

280,897

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Allowance for Credit Losses

The Company maintains allowances for credit losses. These allowances reflect our estimate of the amount of our receivables that we will be unable to collect based on historical write-off experience and, as applicable, current conditions and reasonable and supportable forecasts that affect collectability. Our estimate could require a change based on changing circumstances, including changes in the economy or in the circumstances of individual customers.

Contract Assets and Liabilities

We do not have any contract assets.

Contract liabilities primarily consist of deferred revenue that represent payments for room nights that the customer may use in the future as well as advanced payments for community builds, and mobilization of asset activities related to community expansions that are being recognized over the related contract period. Activity in the deferred revenue accounts as of the dates indicated below was as follows:

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​

​

​

​

​

​

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For Nine Months Ended

​

​

September 30, 

​

    

2024

​

2023

Balances at Beginning of the Period

​

$

5,469

​

$

125,519

Additions to deferred revenue

​

 

400

​

 

—

Revenue recognized

​

 

(4,933)

​

 

(106,112)

Balances at End of the Period

​

$

936

​

$

19,407

​

As a result of the termination of the South Texas Family Residential Center Contract effective August 9, 2024 in the Company’s Government Segment, the Company recognized the $4.9 million of deferred revenue remaining at December 31, 2023 during the nine months ended September 30, 2024 as is reflected in the above table, with $2.7 million of the

amount recognized upon termination of the contract during the three months ended September 30, 2024 when no further service obligation existed.  

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As of September 30, 2024, the following table discloses the estimated revenues under ASC 606 related to performance obligations that are unsatisfied (or partially unsatisfied) and when we expect to recognize the revenue, and only represents revenue expected to be recognized from contracts where the price and quantity of the product or service are fixed:

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​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

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For the Years Ended December 31,

​

    

2024

    

2025

​

2026

​

2027

    

Total

Revenue expected to be recognized as of September 30, 2024

​

$

15,037

​

$

9,213

​

$

3,625

​

$

1,192

​

$

29,067

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The Company applied some of the practical expedients in ASC 606, including the “right to invoice” practical expedient, and does not disclose consideration for remaining performance obligations for contracts without minimum revenue commitments or for variable consideration related to unsatisfied (or partially unsatisfied) performance obligations. Due to the application of these practical expedients as well as excluding rental income revenue subject to the guidance included in ASC 842, the table above represents only a portion of the Company’s expected future consolidated revenues and it is not necessarily indicative of the expected trend in total revenues.