The St. Joe Company (NYSE:JOE) (the “Company”) today announced
Net Income for the first quarter of 2018 of $0.7 million, or $0.01
per share, compared with Net Income of $4.4 million, or $0.06 per
share, for the first quarter of 2017. The first quarter of 2017
includes a $3.5 million benefit from an insurance settlement and
$3.1 million in net realized gains from the sale of investments.
Excluding Other Income items, the first quarter of 2018 Operating
Loss improved by approximately $4.1 million as compared to the
first quarter of 2017.
First quarter update includes:
- Total revenue for 2018 was $19.9
million as compared to $13.5 million in 2017 due to increases in
real estate, leasing and timber revenue, partially offset by a
decrease in resorts and leisure revenue.
- Real estate revenue increased to $7.7
million in 2018 as compared to $1.5 million in 2017. This increase
was primarily related to the higher volume of lot sales in the
Watersound Origins, SouthWood and Breakfast Point communities.
There were 106 homesites sold in the first quarter of 2018 compared
to 2 homesites sold in the first quarter of 2017.
- Resorts and leisure revenue decreased
in 2018 as compared to 2017 by $0.6 million due to the sale of the
short-term vacation rental management business during December
2017, partially offset by an increase in clubs business. The clubs
component of this segment’s revenue continues to climb due to
increased membership revenue from The Clubs by Joe, the Company’s
private membership club.
- Other operating and corporate expenses
declined by $0.3 million in 2018 as compared to 2017. The Company
continues to focus on a cost discipline to maintain an efficient
cost structure.
As of March 31, 2018, the Company owned approximately 813,000
square feet of rentable commercial space compared to approximately
604,000 as of March 31, 2017. The Company’s overall lease occupancy
percentage increased to 89% as of March 31, 2018, as compared to
86% as of March 31, 2017.
The Company had cash, cash equivalents and investments of $293.9
million as of March 31, 2018, compared to $303.4 million as of
December 31, 2017, a decrease of $9.5 million. The decrease was
related to $13.7 million used for stock repurchases, offset by net
receipts from the Company’s operations and other activities.
The Company adopted ASU 2014-09 (Revenue from Contracts with
Customers), as amended, recognizing lot residuals, marketing and
other fees as revenue at the time of sale of homesites. For the
three months ended March 31, 2018, real estate revenue includes
approximately $0.7 million of estimated lot residuals, marketing
and other fees related to homesites sold in the quarter. Prior to
2018, these lot residuals, marketing and other fees were recognized
in revenue when consideration was received in periods subsequent to
the sale of the homesite. For the three months ended March 31,
2017, real estate revenue includes approximately $0.3 million
related to lot residuals, marketing and other fees.
Financial data schedules in the back of this press release
provide greater detail on business segment performance, summarizing
the consolidated results, summary balance sheets, debt schedule and
other operating and corporate expenses for the first quarter of
2018 and 2017, respectively.
Jorge Gonzalez, the Company’s President and Chief Executive
Officer, said, “We continue to make progress in our operations,
with an increase of $4.1 million as compared to the first quarter
of 2017.” Mr. Gonzalez added, “As I mention in my annual letter to
shareholders, I believe that the necessary ingredients for
prosperity exist in Northwest Florida and extend a personal
invitation for you to judge the opportunities for yourself by
visiting. In fact, a perfect time to visit is during our upcoming
annual meeting scheduled for May 23rd where we will be prepared to
discuss our assets and engage with our shareholders.”
FINANCIAL DATA Consolidated Results
(Unaudited) ($ in millions except share and per share
amounts) Quarter Ended March 31,
2018 2017 Revenue Real
estate revenue $ 7.7 $ 1.5 Resorts and leisure revenue 7.5 8.1
Leasing revenue 3.0 2.6 Timber revenue
1.7
1.3 Total revenue
19.9 13.5 Expenses
Cost of real estate revenue 4.2 0.3 Cost of resorts and leisure
revenue 7.0 8.8 Cost of leasing revenue 0.8 0.7 Cost of timber
revenue 0.2 0.2 Other operating and corporate expenses 5.9 6.2
Depreciation, depletion and amortization
2.3
1.9 Total expenses
20.4 18.1 Operating
loss (0.5 ) (4.6 ) Investment income, net 3.6 10.4 Interest expense
(3.0 ) (3.0 ) Other income, net
0.3
3.7 Income before income taxes 0.4 6.5
Income tax benefit (expense)
0.2
(2.3 ) Net income 0.6 4.2 Net loss
attributable to non-controlling interest
0.1
0.2 Net income attributable to
the Company
$ 0.7 $
4.4 Net income per share attributable to the
Company
$ 0.01 $
0.06 Weighted average shares outstanding
65,476,054 73,970,407
Summary Balance Sheet
(Unaudited) ($ in millions) March 31,
2018 December 31, 2017 Assets
Investment in real estate, net $ 332.6 $ 332.6 Cash and cash
equivalents 202.6 192.1 Investments – debt securities 46.4 76.3
Investments – equity securities 44.9 35.0 Restricted investments
3.4 4.5 Income tax receivable 8.4 8.4 Claim settlement receivable
5.3 5.3 Other assets 42.7 47.1 Property and equipment, net 11.7
11.8 Investments held by special purpose entities
207.6 207.9 Total assets
$ 905.6 $ 921.0
Liabilities and Equity Debt $ 55.5 $ 55.6 Other
liabilities 43.8 47.3 Deferred tax liabilities, net 48.5 49.0
Senior Notes held by special purpose entity
176.6 176.5 Total liabilities
324.4 328.4 Total equity
581.2 592.6 Total
liabilities and equity
$ 905.6
$ 921.0 Debt
Schedule (Unaudited) ($ in millions)
March 31, 2018 December 31,
2017 Pier Park North joint venture refinanced loan $
46.6 $ 46.8 Community Development District debt 7.3 7.2 Pier Park
outparcel construction loan
1.6
1.6 Total debt
$ 55.5
$ 55.6 Other
Operating and Corporate Expenses (Unaudited) ($ in
millions) Quarter Ended March 31,
2018 2017 Employee costs $
1.8 $ 1.8 401(k) contribution 1.1 1.2 Property taxes and insurance
1.3 1.4 Professional fees 0.8 1.0 Marketing and owner association
costs 0.4 0.4 Occupancy, repairs and maintenance 0.1 0.1 Other
0.4 0.3 Total other
operating and corporate expense
$ 5.9
$ 6.2
Additional Information and Where to
Find It
Additional information with respect to the Company’s results for
the first quarter 2018 will be available in a Form 10-Q that will
be filed with the Securities and Exchange Commission, which can be
found at the SEC’s website www.sec.gov.
Annual Meeting of
Shareholders
As noted earlier in this press release, the Company’s Annual
Meeting of Shareholders will be held on May 23, 2018, at 9:00 a.m.,
Central Daylight Time, at the WaterColor Inn, 34 Goldenrod Circle,
Santa Rosa Beach, Florida 32459. The event will also be webcast and
can be accessed at http://ir.joe.com/.
Important Notice Regarding
Forward-Looking Statements
Certain statements contained in this press release, as well as
other information provided from time to time by the Company or its
employees, may contain forward-looking statements that involve
risks and uncertainties that could cause actual results to differ
materially from those in the forward-looking statements. You can
identify forward-looking statements by the fact that they do not
relate strictly to historical or current facts. These statements
may include words such as “guidance,” “anticipate,” “estimate,”
“expect,” “forecast,” “project,” “plan,” “intend,” “believe,”
“confident,” “may,” “should,” “can have,” “likely,” “future” and
other words and terms of similar meaning in connection with any
discussion of the timing or nature of future operating or financial
performance or other events. Examples of forward-looking statements
in this press release include statements regarding continued
increases in membership revenue from The Clubs by Joe; our
continued cost discipline to maintain an efficient cost structure;
our continued progress in our operations; and our belief in the
ingredients for prosperity in Northwest Florida. Any such
forward-looking statements are not guarantees of performance or
results, and involve risks, uncertainties (some of which are beyond
the Company’s control) and assumptions.
The Company wishes to caution readers that, although we believe
any forward-looking statements are based on reasonable assumptions,
certain important factors may have affected and could in the future
affect the Company’s actual financial results and could cause the
Company’s actual financial 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) any changes in
our strategic objectives or our ability to successfully implement
such strategic objectives; (2) any potential negative impact of our
longer-term property development strategy, including losses and
negative cash flows for an extended period of time if we continue
with the self-development of recently granted entitlements; (3)
significant decreases in the market value of our investments in
securities or any other investments; (4) our ability to capitalize
on strategic opportunities presented by a growing retirement
demographic; (5) our ability to accurately predict market demand
for the range of potential residential and commercial uses of our
real estate; (6) volatility in the consistency and pace of our
residential real estate sales; (7) any downturns in real estate
markets in Florida or across the nation; (8) our dependence on the
real estate industry and the cyclical nature of our real estate
operations; (9) our 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 our land, including the
permits required for mixed-use and active adult communities; (10)
changes in laws, regulations or the regulatory environment
affecting the development of real estate; (11) our ability to
effectively deploy and invest our assets, including our
available-for-sale securities; (12) our ability to effectively
manage our real estate assets, as well as the ability of our joint
venture partners to effectively manage the day-to-day activities of
our joint venture projects; and (13) increases in operating costs,
including costs related to real estate taxes, owner association
fees, construction materials, labor and insurance, and our ability
to manage our cost structure; 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 for the year ended December 31, 2017, which can
be found at the SEC’s website www.sec.gov. The discussion of these
risks is specifically incorporated by reference into this press
release.
Any forward-looking statement made by us in this press release
speaks only as of the date on which it is made. We undertake no
obligation to update any forward-looking statement, whether as a
result of new information, future developments or otherwise, except
as may be required by law.
About The St. Joe
Company
The St. Joe Company together with its consolidated subsidiaries
is a real estate development, asset management and operating
company with real estate assets and operations currently
concentrated primarily between Tallahassee and Destin, Florida.
More information about the Company can be found on its website at
www.joe.com.
© 2018, The St. Joe Company. “St. Joe®”, “JOE®”, the “Taking
Flight” Design®, and “St. Joe (and Taking Flight Design)®” are
registered service marks of The St. Joe Company.
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version on businesswire.com: https://www.businesswire.com/news/home/20180425005744/en/
The St. Joe CompanyMarek Bakun, 1-866-417-7132Chief Financial
OfficerMarek.Bakun@Joe.Com
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