The St. Joe Company (NYSE: JOE) (the “Company”) today announced
Net Income for the third quarter of 2015 of $2.8 million, or $0.03
per share, compared with Net Loss of $(0.1) million, or $(0.00) per
share, for the third quarter of 2014. For the nine months ended
September 30, 2015, the Company reported Net Income of $0.8
million, or $0.01 per share compared to Net Income of $417.6
million, or $4.52 per share for the same period last year. The 2014
earnings included the Company’s AgReserves and RiverTown
transactions.
During the nine months ended September 30, 2015, the Company
repurchased a total of 16,982,739 shares of its common stock
outstanding. This amount included 16,348,143 shares of its common
stock acquired pursuant to a tender offer at a purchase price of
$18.00 per share, for a total purchase price of $294.3 million. The
tender offer was announced on August 21, 2015 and expired on
September 22, 2015. In addition, prior to the commencement of the
tender offer, the Company purchased 634,596 shares of its common
stock under its Stock Repurchase Program at a weighted average
purchase price of $16.03 in open market transactions. As of
September 30, 2015, the Company had approximately 75.3 million
shares outstanding.
The Company’s Board of Directors recently approved an additional
amount of $200 million for the repurchase of its outstanding common
stock under the Company’s Stock Repurchase Program. As a result,
the Company currently has a total of $205.7 million available for
share repurchases. The Company may repurchase its stock in open
market purchases pursuant to Rule 10b-18, in privately negotiated
transactions or otherwise. The timing and amount of any additional
shares to be repurchased will depend upon a variety of factors,
including market and business conditions, applicable legal
requirements and other factors. Repurchases may be commenced or
suspended at any time or from time to time without prior notice.
The Stock Repurchase Program will continue until otherwise modified
or terminated by the Company’s Board of Directors at any time in
its sole discretion.
Third Quarter 2015 update includes:
- Total revenue for the quarter was $27.8
million as compared to $24.0 million in the third quarter of 2014.
The Company experienced increases in real estate sales, resorts and
leisure revenues, leasing revenues and timber sales.
- Real estate sales increased to $4.9
million in the third quarter of 2015 as compared to $3.9 million in
the third quarter of 2014.
- Resorts and leisure revenue increased
approximately $1.6 million, or 10%, during the three months ended
September 30, 2015, as compared to the third quarter of 2014. The
increase was primarily due to higher membership revenue, additional
nights rented, higher average rates in vacation rental programs and
ancillary receipts.
- Leasing operations increased $0.4
million during the third quarter of 2015, as compared to the third
quarter of 2014. The increase was primarily related to the increase
in lease revenue at Pier Park North.
- Timber sales increased to $1.9 million
during the third quarter of 2015 as compared to $1.1 million in the
third quarter of 2014 due to tons sold. Tons sold were
approximately 109,000 during the third quarter of 2015 as compared
to approximately 76,000 tons during the third quarter of 2014.
Gross margins increased during the third quarter of 2015 to 89%, as
compared to 82% during the third quarter of 2014.
- Investment income and realized gains
from the Company’s available-for-sale securities for the third
quarter of 2015 was $7.0 million as compared to $1.0 million during
the third quarter of 2014. Approximately $5.3 million in gains
related to a sale of corporate debt securities.
- As of September 30, 2015, the Company
had cash, cash equivalents and investments of $409.9 million, as
compared to $671.4 million as of December 31, 2014. The decrease
was related to the $304.9 million of cash used for the stock
repurchases.
Jeffrey C. Keil, the Company’s President and Interim Chief
Executive Officer said, “We are pleased with the result of the
repurchase programs and the Board’s decision to increase the
authority by $200 million.” Mr. Keil added, “We are committed to
maintaining a healthy balance sheet as we continue to pursue value
creation for our shareholders.”
FINANCIAL DATA
Consolidated Results
($ in millions except share and per
share amounts)
Quarter Ended
Nine Months Ended
September
30,
September
30,
2015
2014
2015
2014
Revenues
Real estate sales $4.9 $3.9 $24.3
$630.6 Resorts and leisure revenues 18.5 16.9
45.7 40.4 Leasing revenues 2.5 2.1 6.8
4.9 Timber sales
1.9
1.1
6.0
10.3
Total revenues
27.8
24.0
82.8
686.2
Expenses
Cost of real estate sales 2.5 2.1 12.3
84.6 Cost of resorts and leisure revenues 14.7 13.7
38.2 34.4 Cost of leasing revenues 0.7
0.6 2.0 1.5 Cost of timber sales 0.2
0.2 0.6 4.3 Other operating and corporate expenses
9.9 6.5 24.7 22.3 Administrative costs
associated with special purpose entities -- --
-- 3.7 Depreciation, depletion and amortization
2.2
2.2
7.3
6.2
Total expenses
30.2
25.3
85.1
157.0
Operating (loss) income
(2.4)
(1.3)
(2.3)
529.2
Other income
6.4
0.8
5.1
3.5
Income (loss) from operations before
equity in income fromunconsolidated affiliates and income taxes
4.0
(0.5)
2.8
532.7
Income tax expense (benefit)
1.2
(0.3)
2.0
115.2
Net income (loss)
2.8
(0.2)
0.8
417.5
Net loss attributable to non-controlling interest
--
0.1
--
0.1
Net income (loss) attributable to the Company
$2.8
$(0.1)
$0.8
$417.6
Net income (loss) per share attributable to the Company
$0.03
$(0.00)
$0.01
$4.52
Weighted average shares outstanding 92,026,894
92,295,213 92,088,253 92,297,467
Revenues by Segment
($ in millions)
Quarter Ended
Nine Months Ended
September 30,
September 30,
2015
2014
2015
2014
Revenues:
Real estate sales
Residential $4.9 $3.7 $14.3
$13.6 RiverTown Sale -- -- -- 43.6
Commercial -- -- 4.7 3.3 AgReserves
Sale and other rural land sales
--
0.2
5.3
570.1
Total real estate sales 4.9 3.9 24.3
630.6 Resorts and leisure revenues 18.5 16.9
45.7 40.4 Leasing revenues 2.5 2.1 6.8
4.9 Timber sales
1.9
1.1
6.0
10.3
Total revenues
$27.8
$24.0
$82.8
$686.2
Summary Balance Sheet
($ in millions)
September 30,
2015
December 31,
2014
Assets Investment in real
estate, net $315.5 $321.8 Cash and cash equivalents
157.9 34.5 Investments 252.0 636.9
Restricted investments 7.2 7.9 Notes receivable, net
2.9 24.3 Pledged cash and treasury securities
25.3 25.7 Property and equipment, net 10.3
10.2 Other assets 32.7 32.0 Investments held by
special purpose entities
208.7
209.8
Total assets
$1,012.5
$1,303.1
Liabilities and Equity
Debt $69.7 $63.8 Accounts
payable, accrued liabilities and deferred credits 50.7
47.5 Deferred tax liabilities 37.5 34.8 Senior
Notes held by special purpose entity
177.4
177.3
Total liabilities
335.3
323.4
Total equity
677.2
979.7
Total liabilities and equity
$1,012.5
$1,303.1
Debt Schedule
($ in millions)
September 30,
2015
December 31,
2014
In substance defeased debt $25.3 $25.7 Community
Development District debt 6.8 6.5 Pier Park North
joint venture – construction loan
37.6
31.6
Total debt
$69.7
$63.8
Other Operating and Corporate
Expenses
($ in millions)
Quarter
Ended
Nine Months
Ended
September
30,
September
30,
2015
2014
2015
2014
Employee costs $4.5 $1.8 $10.0 $6.9
AgReserves Sale severance -- -- -- 1.2
401(k) contribution / pension costs -- 0.9 1.1
2.2 Non-cash stock compensation costs -- 0.1
0.2 0.2 Property taxes and insurance 1.4
1.6 4.4 4.8 Professional fees 2.8
1.2 5.6 3.8 Marketing and owner association
costs 0.3 0.3 1.0 1.1 Occupancy,
repairs and maintenance 0.2 0.2 0.7 0.7
Other
0.7
0.4
1.7
1.4
Total other operating and corporate expense
$9.9
$6.5
$24.7
$22.3
Additional Information and Where to
Find It
Additional information with respect to the Company’s results for
the third quarter of 2015 will be available in a Form 10-Q that
will be filed with the Securities and Exchange Commission.
Important Notice Regarding
Forward-Looking Statements
This press release includes forward-looking statements,
including statements regarding the Company’s expectations regarding
its financial position and its pursuit of value creation for its
shareholders, as well as its plans with respect to share
repurchases. The Company wishes to caution readers that certain
important factors may have affected and could in the future affect
the Company’s actual results and could cause the Company’s actual
results for subsequent periods to differ materially from those
expressed in any forward-looking statement made by or on behalf of
the Company, including (1) changes in the Company’s strategic
objectives and its ability to implement such strategic objectives;
(2) economic or other conditions that affect the future prospects
for the Southeastern region of the United States and the demand for
the Company’s products, including a slowing of the population
growth in Florida, inflation, or unemployment rates or declines in
consumer confidence or the demand for, or the prices of, housing;
(3) any potential negative impact of the Company’s longer-term
property development strategy, including losses and negative cash
flows for an extended period of time if the Company continues with
the self-development of recently granted entitlements; (4) the
impact of natural or man-made disasters or weather conditions,
including hurricanes and other severe weather conditions, on the
Company’s business; (5) the Company’s ability to capitalize on its
leasing operations in the Pier Park North joint venture; (6) the
Company’s ability to capitalize on opportunities relating to its
mixed use and active adult communities, including its ability to
successfully and timely obtain land-use entitlements and
construction financing, maintain compliance with state law
requirements and address issues that arise in connection with the
use and development of its land, including the permits required for
the mixed use and active adult communities; (7) the impact of
market volatility on the value of the Company’s investments,
including potential unrealized losses or the realization of losses
on its investments; (8) the Company’s use of its share repurchase
authorization and its ability to carry out the Stock Repurchase
Program in accordance with applicable securities laws; (9) the
Company’s ability to realize the anticipated benefits of its Stock
Repurchase Program; and (10) the Company’s ability to effectively
deploy and invest its assets, including available-for-sale
securities; as well as, the cautionary statements and risk factor
disclosures contained in the Company’s Securities and Exchange
Commission filings including the Company’s Annual Report on Form
10-K filed with the Commission on February 26, 2015 as updated by
subsequent Quarterly Reports on Form 10-Qs and other current report
filings.
About The St. Joe
Company
The St. Joe Company together with its consolidated subsidiaries
is a real estate company concentrated primarily between Tallahassee
and Destin, Florida. More information about the Company can be
found on its website at www.joe.com.
© 2015, The St. Joe Company. “St. Joe®”, “JOE®”, the “Taking
Flight” Design®, “St. Joe (and Taking Flight Design)®” are
registered service marks of The St. Joe Company.
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version on businesswire.com: http://www.businesswire.com/news/home/20151105006825/en/
St. Joe Investor RelationsMarek Bakun, 1-866-417-7132Chief
Financial OfficerMarek.Bakun@Joe.Com
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