The St. Joe Company Reports First Quarter 2017 Results
WATERSOUND, Fla.--(BUSINESS WIRE)--
First quarter update includes:
-
Total revenue for the quarter was
$13.2 million as compared to$20.3 million in the first quarter of 2016 primarily due to a reduction in real estate revenue. The Company's real estate revenue tends to vary from period to period depending on a variety of factors including the communities where homesites are available to be sold, as prices vary significantly by community. In addition, the Company's recent focus has been on homebuilders who generally purchase more homesites in a single transaction but tend to buy on a more sporadic basis. The first quarter decrease in real estate revenue was due to the timing of builder contractual obligations and the timing of development of finished lots in the primary residential communities. The Company is investing in the development of residential lots in its WaterSound Origins,Breakfast Point and SouthWood communities. The Company anticipates that a majority of the lots currently under development will be available for sale later in 2017. In addition, the first quarter of 2016 included a$3.4 million unimproved land sale with a gross profit of$3.3 million due to a low historic basis. -
The Company's leasing segment includes approximately 604,000 of net
rentable square feet which was 86% leased as of
March 31, 2017 , compared to approximately 589,000 of net rentable square feet which was 84% leased as ofMarch 31, 2016 . Subsequent to the first quarter of 2017, the Company completed the purchase of two office buildings inPanama City Beach, Florida totaling over 67,000 rentable square feet. This transaction is reflective of the Company's strategy to increase the size and scope of its leasing portfolio while choosing to sell commercial property selectively. -
Investment income for the three months ended
March 31, 2017 totaled$10.4 million as compared to$2.7 million for the three months endedMarch 31, 2016 . The increase of$7.7 million in the first quarter of 2017 was due to increased interest income and dividend income as a result of changes in the Company's investment portfolio and a sale of investments at a realized gain of$3.1 million . Other income for the first quarter of 2017 totaled$4.0 million as compared to$13.0 million in the first quarter of 2016. Other income for the first quarter of 2017 included$3.5 million from an insurance settlement. By comparison, the first quarter of 2016 included$12.5 million from settlement of claims related to the Deepwater Horizon oil spill. -
As of
March 31, 2017 , the Company had cash, cash equivalents and investments of$392.6 million , as compared to$416.8 million as ofDecember 31, 2016 , a decrease of$24.2 million . The decrease was related to the$34.2 million of cash used for stock repurchases, offset by net receipts from the Company's operations and other activities.
FINANCIAL DATA
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Consolidated Results |
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($ in millions except share and per share amounts) |
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Quarter Ended
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2017 |
2016 |
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Revenue | ||||
Real estate revenue |
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|
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Resorts and leisure revenue | 8.1 | 8.7 | ||
Leasing revenue | 2.4 | 2.4 | ||
Timber revenue |
1.2 |
2.1 |
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Total revenue |
13.2 |
20.3 |
||
Expenses | ||||
Cost of real estate revenue | 0.3 | 1.8 | ||
Cost of resorts and leisure revenue | 8.8 | 9.3 | ||
Cost of leasing revenue | 0.7 | 0.8 | ||
Cost of timber revenue | 0.2 | 0.2 | ||
Other operating and corporate expenses | 6.2 | 6.8 | ||
Depreciation, depletion and amortization | 1.9 | 2.3 | ||
Total expenses |
18.1 |
21.2 |
||
Operating loss |
(4.9) |
(0.9) |
||
Investment income, net | 10.4 | 2.7 | ||
Interest expense | (3.0) | (3.0) | ||
Other, net |
4.0 |
13.0 |
||
Income before income taxes |
6.5 |
11.8 |
||
Income tax expense |
(2.3) |
(3.2) |
||
Net income |
4.2 |
8.6 |
||
Net loss attributable to non-controlling interest |
0.2 |
0.1 |
||
Net income attributable to the Company |
4.4 |
8.7 |
||
Net income per share |
|
|
||
Weighted average shares outstanding | 73,970,407 | 74,809,010 | ||
Revenue Detail ($ in millions) |
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Quarter Ended
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2017 |
2016 |
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Revenue: | ||||
Real estate revenue | ||||
Residential |
|
|
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Other real estate revenue |
0.2 |
0.1 |
||
Total real estate revenue | 1.5 | 7.1 | ||
Resorts and leisure revenue | 8.1 | 8.7 | ||
Leasing revenue | 2.4 | 2.4 | ||
Timber revenue |
1.2 |
2.1 |
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Total revenue |
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Summary Balance Sheet | ||||
($ in millions) | ||||
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Assets | ||||
Investment in real estate, net |
|
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Cash and cash equivalents | 217.0 | 241.1 | ||
Investments | 175.6 | 175.7 | ||
Restricted investments | 4.4 | 5.6 | ||
Income tax receivable | 26.7 | 27.1 | ||
Claim settlement receivable | 7.9 | 7.8 | ||
Other assets | 36.5 | 38.4 | ||
Property and equipment, net | 9.0 | 9.0 | ||
Investments held by special purpose entities |
208.2 |
208.6 |
||
Total assets |
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Liabilities and Equity | ||||
Debt |
|
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Other liabilities | 47.7 | 41.0 | ||
Deferred tax liabilities | 70.3 | 68.8 | ||
Senior Notes held by special purpose entity |
176.4 |
176.3 |
||
Total liabilities |
349.9 |
341.1 |
||
Total equity |
657.5 |
686.8 |
||
Total liabilities and equity |
|
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Debt Schedule | ||||
($ in millions) | ||||
|
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|||
|
|
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|
7.7 | 7.5 | ||
Construction loan |
0.5 |
-- |
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Total debt |
|
|
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Other Operating and Corporate Expenses | ||||
($ in millions) | ||||
Quarter Ended
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2017 |
2016 |
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Employee costs |
|
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401(k) contribution | 1.2 | 1.4 | ||
Property taxes and insurance | 1.4 | 1.5 | ||
Professional fees | 1.0 | 1.4 | ||
Marketing and owner association costs | 0.4 | 0.3 | ||
Occupancy, repairs and maintenance | 0.1 | 0.2 | ||
Other |
0.3 |
0.3 |
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Total other operating and corporate expenses |
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Additional Information and Where to Find It
Additional information with respect to the Company's results for the
first quarter of 2017 will be available in a Form 10-Q that will be
filed with the
Important Notice Regarding Forward-Looking Statements
This press release includes forward-looking statements, including
statements regarding our expectations with respect to the timing of
residential lot sales, our strategy to increase our leasing portfolio
while selectively selling commercial property and our beliefs regarding
the ability of our prospects, strategy and other actions to create long
term shareholder value. 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 loss and negative cash flows for an extended period of time if
we continue with the self-development of our 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) volatility in the consistency and
pace of our residential real estate revenue; (7) economic or other
conditions that affect the future prospects for the Southeastern region
of
About
© 2017,
View source version on businesswire.com: http://www.businesswire.com/news/home/20170504006679/en/
St. Joe
Investor Relations Contact:
Chief
Financial Officer
Marek.Bakun@Joe.Com
Source:
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