Investment in Unconsolidated Joint Venture

9 Months Ended

Sep. 30, 2013

Investment in Unconsolidated Joint Venture

Investment in Unconsolidated Joint Venture

6.  Investment in Unconsolidated Joint Venture

As of September 30, 2013 and December 31, 2012, the Company’s interest in its unconsolidated joint venture, Builders Digital Experience, LLC (“BDX”), amounted to $5.4 million and $4.9 million, respectively, which was recorded in “Investment in unconsolidated joint venture” within the unaudited Condensed Consolidated Balance Sheets.

The Company’s proportionate share of earnings resulting from its investment in unconsolidated joint venture was $0.6 million and $0.3 million for the three months ended September 30, 2013 and 2012, respectively, and $1.7 million and $0.7 million for the nine months ended September 30, 2013 and 2012, respectively, and was included in “Earnings of unconsolidated joint venture” within the unaudited Condensed Consolidated Statements of Operations.  The Company records its proportionate share of earnings one month in arrears.

Summarized income statement information for BDX follows (in thousands):

	Three Months Ended August 31,				Nine Months EndedAugust 31,
	2013		2012		2013		2012
Revenue	$	5,317	$	4,710	$	14,902	$	13,684
Costs and expenses:
Cost of revenue	889		807		2,467		2,382
Operating expenses	3,218		3,298		9,000		9,793
	4,107		4,105		11,467		12,175
Income before income taxes	1,210		605		3,435		1,509
Income tax expense	40		26		135		89
Net income	$	1,170	$	579	$	3,300	$	1,420

The Company received cash distributions of $1.2 million and $1.0 million from BDX during the nine months ended September 30, 2013 and 2012, respectively.