The St. Joe Company (NYSE:JOE) (the “Company”) today announced
Net Income for the third quarter of 2016 of $2.7 million, or $0.04
per share, compared with Net Income of $2.8 million, or $0.03 per
share, for the third quarter of 2015. For the nine months ended
September 30, 2016, the Company reported Net Income of $13.2
million, or $0.18 per share compared to Net Income of $0.8 million,
or $0.01 per share for the same period last year.
The Company’s operating and corporate expenses declined by $4.7
million, or 47%, in the third quarter of 2016 as compared to the
same quarter last year. For the nine months ended September 30,
2016, the operating and corporate expenses declined by $7.0
million, or 28%, as compared to the nine months ended September 30,
2015. The decline was primarily due to a decrease in employee
related costs and professional fees.
Third Quarter highlights include:
- While Net Income for the third quarter
of 2016 was similar to the third quarter of 2015, operating income
for the third quarter of 2016 increased by $4.0 million primarily
due to reduced operating and corporate expenses as compared to the
third quarter of 2015. In comparison, Net Income for the third
quarter of 2015 included a one-time gain of $5.3 million on the
sale of investments.
- Total revenue for the quarter was $27.2
million as compared to $27.8 million in the third quarter of 2015
due to a decrease in real estate revenue and timber revenue
partially offset by an increase in resorts and leisure revenue and
leasing revenue. The Company’s third quarter 2016 revenue was
generated from $4.2 million of real estate revenue, $19.0 million
from resorts and leisure operations, $2.7 million from leasing
operations and $1.3 million from timber revenue.
- Real estate revenue decreased to $4.2
million in the third quarter of 2016 as compared to $4.9 million in
the third quarter of 2015. Real estate revenue in the third quarter
of 2016 was comprised of $3.1 million in residential real estate
revenue, $0.6 million in commercial real estate revenue and $0.5
million in other revenue. The third quarter of 2015 included $4.9
million in residential real estate revenue. Real estate revenue
fluctuates from quarter to quarter partially based on timing of
builder contractual closing obligations.
- Resorts and leisure revenue increased
approximately $0.5 million in the third quarter of 2016 to $19.0
million as compared to the third quarter of 2015. The increase
during the third 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 as well as an
increase in membership revenue from the St. Joe Club & Resorts
private membership club.
- Leasing revenue increased $0.2 million
during the third quarter of 2016, as compared to the third quarter
of 2015. As of September 30, 2016, the Company had approximately
517,000 square feet of retail, industrial and commercial space
leased.
- As of September 30, 2016, the Company
had cash, cash equivalents and investments of $402.0 million, as
compared to $399.8 million as of June 30, 2016, an increase of $2.2
million.
Jorge Gonzalez, the Company’s President and
Chief Executive Officer, said “One of our areas of focus is to grow
recurring revenue while maintaining a low fixed expense structure.”
Mr. Gonzalez added, “Accordingly, we are planning to grow our
leasable spaces and we are focused on attracting new businesses
into the area and into our commerce parks that can diversify the
economy.”
FINANCIAL DATA Consolidated Results ($ in
millions except share and per share amounts)
Quarter
Ended
September
30,
Nine Months
Ended
September
30,
2016
2015
2016
2015
Revenue
Real estate revenue $4.2 $4.9 $18.0
$24.3 Resorts and leisure revenue 19.0 18.5
47.6 45.7 Leasing revenue 2.7 2.5 7.4
6.8 Timber revenue
1.3
1.9
4.0
6.0
Total revenue
27.2
27.8
77.0
82.8
Expenses Cost of
real estate revenue 2.0 2.5 6.7 12.3 Cost of resorts and
leisure revenue 15.4 14.7 40.4 38.2 Cost of leasing revenue
0.7 0.7 2.2 2.0 Cost of timber revenue 0.2 0.2 0.6
0.6 Other operating and corporate expenses 5.2 9.9 17.7 24.7
Depreciation, depletion and amortization
2.1
2.2
6.5
7.3
Total expenses
25.6
30.2
74.1
85.1
Operating income (loss)
1.6
(2.4)
2.9
(2.3)
Other income
2.0
6.4
15.1
5.1
Income from operations before equity in
income from
unconsolidated affiliates and income
taxes
3.6
4.0
18.0
2.8
Income tax expense
(0.9)
(1.2)
(5.2)
(2.0)
Net income
2.7
2.8
12.8
0.8
Net loss attributable to non-controlling interest
--
--
0.4
--
Net income attributable to the Company
$2.7
$2.8
$13.2
$0.8
Net income per share attributable to the Company
$0.04
$0.03
$0.18
$0.01
Weighted average shares outstanding 74,342,826
92,026,894 74,496,058 92,088,253
Revenues
($ in millions)
Quarter Ended
September 30,
Nine Months Ended
September 30,
2016
2015
2016
2015
Revenue:
Real estate revenue
Residential $3.1 $4.9 $15.9
$14.3 Commercial 0.6 -- 0.6 4.7
Other real estate revenue
0.5
--
1.5
5.3
Total real estate revenue 4.2 4.9 18.0
24.3 Resorts and leisure revenue 19.0 18.5
47.6 45.7 Leasing revenue 2.7 2.5 7.4
6.8 Timber revenue
1.3
1.9
4.0
6.0
Total revenue
$27.2
$27.8
$77.0
$82.8
Summary Balance Sheet ($ in millions)
September 30,
2016
December 31,
2015
Assets Investment in real
estate, net $313.0 $313.6 Cash and cash equivalents
165.3 212.8 Investments 236.7 191.2
Restricted investments 5.6 7.1 Notes receivable, net
2.0 2.6 Property and equipment, net 9.2
10.1 Claim settlement receivable 12.7 -- Other assets
33.3 36.5 Investments held by special purpose
entities
208.6
208.8
Total assets
$986.4
$982.7
Liabilities and Equity
Debt $54.2 $54.5 Other
liabilities 43.4 41.9 Deferred tax liabilities
39.4 36.8 Senior Notes held by special purpose entity
176.2
176.1
Total liabilities
313.2
309.3
Total equity
673.2
673.4
Total liabilities and equity
$986.4
$982.7
Debt Schedule ($ in millions)
September 30,
2016
December 31,
2015
Pier Park North joint venture $47.5 $47.5 Community
Development District debt
6.7
7.0
Total debt
$54.2
$54.5
Other Operating and Corporate Expenses ($ in
millions)
Quarter
Ended
September
30,
Nine Months
Ended
September
30,
2016
2015
2016
2015
Employee costs $1.8 $4.5 $5.3 $10.0
401(k) contribution / pension costs -- -- 1.4
1.1 Non-cash stock compensation costs -- --
0.1 0.2 Property taxes and insurance 1.4
1.4 4.2 4.4 Professional fees 1.2
2.8 3.8 5.6 Marketing and owner association
costs 0.3 0.3 1.0 1.0 Occupancy,
repairs and maintenance 0.2 0.2 0.5 0.7
Other
0.3
0.7
1.4
1.7
Total other operating and corporate expense
$5.2
$9.9
17.7
$24.7
Additional Information and Where to
Find It
Additional information with respect to the Company’s results for
the third 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 focus on growing
recurring revenue as well as its plans for growing leasable spaces
and attracting new businesses into the area and into its commerce
parks. 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
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 and the ability of our investment
advisor to identify and acquire suitable investments for our
investment portfolio that meet our risk and return criteria; (5)
our ability to capitalize on strategic opportunities presented by a
growing retirement demographic; (6) 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; (7) volatility in the consistency and pace of our
residential real estate sales; (8) any downturns in real estate
markets in Florida or across the nation; (9) our dependence on the
real estate industry and the cyclical nature of our real estate
operations; (10) 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; (11)
changes in laws, regulations or the regulatory environment
affecting the development of real estate; (12) our ability to
effectively deploy and invest our assets, including our
available-for-sale securities; (13) 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 (14) 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 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.
© 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/20161103006744/en/
The St. Joe CompanyInvestor Relations Contact:Marek Bakun,
1-866-417-7132Chief Financial OfficerMarek.Bakun@Joe.Com
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