The St. Joe Company (NYSE: JOE) (the “Company”) today announced
Net Income for the first quarter of 2016 of $8.7 million, or $0.12
per share, compared with Net Loss of $(1.7) million, or $(0.02) per
share, for the first quarter of 2015. As detailed below, results
for the first quarter of 2016 include $12.5 million of pre-tax
income from a settlement of claims related to the Deepwater
Horizon oil spill.
First Quarter update includes:
- Total revenue for the quarter was $20.3
million as compared to $17.1 million in the first quarter of 2015
due to increases in real estate sales, resorts and leisure
revenues, leasing revenues and timber sales. The Company’s first
quarter 2016 revenue was generated from $7.1 million of real estate
sales, $8.7 million from resorts and leisure operations, $2.4
million from leasing operations and $2.1 million from timber
sales.
- Real estate sales increased to $7.1
million in the first quarter of 2016 as compared to $5.4 million in
the first quarter of 2015. First quarter of 2016 included a sale of
approximately 111 acres of non-strategic residential land in St.
Johns County, Florida for $3.4 million.
- Resorts and leisure revenue increased
approximately $0.9 million, or 12%, in the first quarter of 2016 as
compared to the first quarter of 2015. The increase during the
first quarter of 2016 as compared to the same period in 2015 was
primarily related to increased average room rates at both the
WaterColor Inn and in the vacation rental program and the timing of
Spring Break and the Easter holiday.
- Leasing revenue increased to $2.4
million in the first quarter of 2016 as compared to $2.1 million in
the first quarter of 2015. The increase in revenue was primarily
attributable to an increase in rent revenue related to the
Company’s Pier Park North joint venture.
- Timber sales increased to $2.1 million
in the first quarter of 2016 as compared to $1.8 million in the
first quarter of 2015. Total tons sold increased by approximately
10% to 106,000 tons in the first quarter of 2016 as compared to
96,000 tons sold in the first quarter of 2015.
- As of March 31, 2016, the Company had
cash, cash equivalents and investments of $394.9 million, as
compared to $404.0 million as of December 31, 2015, a decrease of
$9.1 million. The decrease was related to the $14.8 million of cash
used for stock repurchases offset by net receipts from the
Company’s operations and other activities.
- The Company settled claims related to
the Deepwater Horizon oil spill which occurred in 2010 and recorded
a total initial present value of $12.5 million, net of $0.7 million
discount, of pre-tax income in Other Income in the first quarter of
2016. The Company agreed to release its claims in exchange for a
total of $13.2 million scheduled to be paid as follows: the amount
of $5.0 million is to be paid in October of 2016 followed by
payments of $2.7 million due in October of 2017, 2018 and
2019.
Jorge Gonzalez, the Company’s President and Chief Executive
Officer, said, “It was a good beginning to the new year. We believe
we are starting to see the benefits of actions taken in late 2015.
We believe that our low fixed expense structure, focus on asset
enhancement, 'open for business' mentality, and our clarity and
transparency are beginning to translate into positive financial
results as part of our plan to unlock the intrinsic value of our
assets.”
FINANCIAL DATA
Consolidated Results
($ in millions except share and per
share amounts)
Quarter
Ended
March
31,
2016
2015
Revenues Real estate sales $7.1
$5.4 Resorts and leisure revenues 8.7 7.8
Leasing revenues 2.4 2.1 Timber sales
2.1
1.8
Total revenues
20.3
17.1
Expenses Cost of real estate sales
1.8 3.1 Cost of resorts and leisure revenues
9.3 8.8 Cost of leasing revenues 0.8 0.7 Cost
of timber sales 0.2 0.2 Other operating and corporate
expenses 6.8 7.1 Depreciation, depletion and
amortization 2.3 2.9 Total expenses
21.2
22.8
Operating loss
(0.9)
(5.7)
Other income
12.7
2.9
Income (loss) before income taxes
11.8
(2.8)
Income tax (expense) benefit
(3.2)
1.1
Net income (loss)
8.6
(1.7)
Net loss( income) attributable to non-controlling interest
0.1
(0.0)
Net income (loss) attributable to the Company
8.7
(1.7)
Net income (loss) per share
$0.12
$(0.02)
Weighted average shares outstanding 74,809,010
92,302,636
Revenues by Segment
($ in millions)
Quarter
Ended
March
31,
2016
2015
Revenues: Real estate sales
Residential $7.0 $5.4 Commercial
-- -- Other rural land sales
0.1
--
Total real estate sales 7.1 5.4 Resorts and leisure
revenues 8.7 7.8 Leasing revenues 2.4
2.1 Timber sales
2.1
1.8
Total revenues
$20.3
$17.1
Summary Balance Sheet
($ in millions)
March 31,
2016
December 31,
2015
Assets Investment in real
estate, net $311.7 $313.6 Cash and cash equivalents
201.3 212.8 Investments 193.6 191.2
Restricted investments 5.7 7.1 Notes receivable, net
2.5 2.6 Property and equipment, net 9.7
10.1 Claim settlement receivable 12.6 -- Other assets
33.5 36.5 Investments held by special purpose
entities
208.4
208.8
Total assets
$979.0
$982.7
Liabilities and Equity
Debt $54.6 $54.5 Other
liabilities 43.3 41.9 Deferred tax liabilities
37.9 36.8 Senior Notes held by special purpose entity
176.1
176.1
Total liabilities
311.9
309.3
Total equity
667.1
673.4
Total liabilities and equity
$979.0
$982.7
Debt Schedule
($ in millions)
March 31,
2016
December 31,
2015
Pier Park North joint venture $47.5 $47.5 Community
Development District debt
7.1
7.0
Total debt
$54.6
$54.5
Other Operating and Corporate
Expenses
($ in millions)
Quarter
Ended
March
31,
2016
2015
Employee costs $1.7 $2.6 401(k) contribution
1.4 0.9 Property taxes and insurance 1.5 1.5
Professional fees 1.4 1.2 Marketing and owner
association costs 0.3 0.3 Occupancy, repairs and
maintenance 0.2 0.2 Other
0.3
0.4
Total other operating and corporate expenses
$6.8
$7.1
Additional Information and Where to
Find It
Additional information with respect to the Company’s results for
the first quarter of 2016 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 belief that the
actions taken in late 2015 are beginning to impact the financial
results of the Company. 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) any changes in our strategic
objectives and 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,
including our Bay-Walton Sector holdings; (6) changes in our
customer base and the mix of homesites available for sale in our
residential real estate; (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 partner to effectively manage the day-to-day activities of
the Pier Park North joint venture; 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 filed with the Commission on
March 2, 2016 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 development, asset management and operating
company concentrated primarily between Tallahassee and Destin,
Florida. More information about the Company can be found on its
website at www.joe.com.
© 2016, 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/20160505006604/en/
The St. Joe CompanyInvestor Relations:Marek Bakun,
1-866-417-7132Chief Financial OfficerMarek.Bakun@Joe.Com
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