The St. Joe Company Reports First Quarter 2018 Results
WATERSOUND, Fla.--(BUSINESS WIRE)--
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 andBreakfast 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 duringDecember 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
$0.3 million in 2018 as compared to 2017. The Company continues to focus on a cost discipline to maintain an efficient cost structure.
As of
The Company had cash, cash equivalents and investments of
The Company adopted ASU 2014-09 (Revenue from Contracts with Customers),
as amended, recognizing lot residuals, marketing and other fees as
revenue at the time of sale of homesites. For the three months ended
Financial data schedules in the back of this press release provide greater detail on business segment performance, summarizing the consolidated results, summary balance sheets, debt schedule and other operating and corporate expenses for the first quarter of 2018 and 2017, respectively.
FINANCIAL DATA | ||||||||
Consolidated Results (Unaudited) | ||||||||
($ in millions except share and per share amounts) | ||||||||
Quarter Ended | ||||||||
|
||||||||
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) | ||||||
|
|
|||||
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) | ||||||
|
|
|||||
|
$ | 46.6 | $ | 46.8 | ||
|
7.3 | 7.2 | ||||
|
1.6 | 1.6 | ||||
Total debt | $ | 55.5 | $ | 55.6 | ||
Other Operating and Corporate Expenses (Unaudited) | ||||||
($ in millions) | ||||||
Quarter Ended | ||||||
|
||||||
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
Annual Meeting of Shareholders
As noted earlier in this press release, the Company's Annual Meeting of
Shareholders will be held on
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
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
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
© 2018,
View source version on businesswire.com: https://www.businesswire.com/news/home/20180425005744/en/
Chief
Financial Officer
Marek.Bakun@Joe.Com
Source:
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