The St. Joe Company Reports Fourth Quarter and Full Year 2017 Results
WATERSOUND, Fla.--(BUSINESS WIRE)--
For the full year ended
Fourth Quarter 2017 update includes:
-
Total revenue for 2017 was
$21.5 million as compared to$18.7 million in 2016 due to increases in real estate, leasing and timber, partially offset by a decrease in resorts and leisure. -
Real estate revenue increased to
$8.3 million in 2017 as compared to$5.4 million in 2016. This increase was primarily related to the higher volume of lot sales in the Watersound Origins andBreakfast Point communities. -
Resorts and leisure revenue decreased in 2017 as compared to 2016.
This decrease is due primarily to reduced vacation rental inventory
based on management's decision to focus on higher yielding homes prior
to the sale of the short term vacation rental management business in
December 2017 . The clubs component of this segment's revenue continues to climb due to increased membership revenue from The Clubs by Joe, the Company's private membership club.
As of
Other operating and corporate expenses declined in 2017 as compared to 2016. For the full year 2017, the operating and corporate expenses represented 20.6% of revenue compared to 24.0% in 2016. The Company continues to focus on a cost discipline to support bottom line performance.
As of
Financial data schedules in the back of this press release provide greater detail on business segment performance, summarizing the consolidated results, summary balance sheets, debt schedule and other operating and corporate expenses for both the fourth quarter and full year 2017 and 2016 periods.
FINANCIAL DATA | |||||||||||||||||||||
Consolidated Results | |||||||||||||||||||||
($ in millions except share and per share amounts) | |||||||||||||||||||||
Quarter Ended |
Year Ended |
||||||||||||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||||||||||
Revenue | |||||||||||||||||||||
Real estate revenue | $ | 8.3 | $ | 5.4 | $ | 27.7 | $ | 23.4 | |||||||||||||
Resorts and leisure revenue | 9.2 | 9.7 | 54.8 | 57.3 | |||||||||||||||||
Leasing revenue | 2.7 | 2.4 | 10.7 | 9.8 | |||||||||||||||||
Timber revenue |
1.3 |
1.2 |
5.6 |
5.2 |
|||||||||||||||||
Total revenue | $ | 21.5 | $ | 18.7 | $ | 98.8 | $ | 95.7 | |||||||||||||
Expenses | |||||||||||||||||||||
Cost of real estate revenue | 5.0 | 1.3 | 15.4 | 8.0 | |||||||||||||||||
Cost of resorts and leisure revenue | 9.6 | 9.8 | 47.8 | 50.2 | |||||||||||||||||
Cost of leasing revenue | 0.9 | 0.9 | 3.2 | 3.1 | |||||||||||||||||
Cost of timber revenue | 0.2 | 0.2 | 0.8 | 0.8 | |||||||||||||||||
Other operating and corporate expenses | 5.1 | 5.3 | 20.4 | 23.1 | |||||||||||||||||
Depreciation, depletion and amortization |
2.6 |
2.1 |
8.9 |
8.6 |
|||||||||||||||||
Total expenses |
23.4 |
19.6 |
96.5 |
93.8 |
|||||||||||||||||
Operating (loss) income |
(1.9 |
) |
(0.9 |
) |
2.3 |
1.9 |
|||||||||||||||
Investment income, net | 4.3 | 7.4 | 35.4 | 17.8 | |||||||||||||||||
Interest expense | (3.0 | ) | (3.0 | ) | (12.2 | ) | (12.3 | ) | |||||||||||||
Other income, net |
10.2 |
1.1 |
15.8 |
15.2 |
|||||||||||||||||
Income before income taxes | 9.6 | 4.6 | 41.3 | 22.6 | |||||||||||||||||
Income tax benefit (expense) |
28.7 |
(2.0 |
) |
17.9 |
(7.1 |
) |
|||||||||||||||
Net income |
38.3 |
2.6 |
59.2 |
15.5 |
|||||||||||||||||
Net loss attributable to non-controlling interest | 0.2 | 0.1 | 0.3 | 0.4 | |||||||||||||||||
Net income attributable to the Company | $ |
38.5 |
$ |
2.7 |
$ |
59.5 |
$ |
15.9 |
|||||||||||||
Net income per share attributable to the Company | $ | 0.58 | $ | 0.04 | $ | 0.84 | $ | 0.21 | |||||||||||||
Weighted average shares outstanding | 66,128,895 | 74,342,826 | 70,548,411 | 74,457,541 | |||||||||||||||||
Summary Balance Sheet | |||||||||
($ in millions) | |||||||||
|
|
||||||||
Assets | |||||||||
Investment in real estate, net | $ | 332.6 | $ | 314.6 | |||||
Cash and cash equivalents | 192.1 | 241.1 | |||||||
Investments | 111.3 | 175.7 | |||||||
Restricted investments | 4.5 | 5.6 | |||||||
Income tax receivable | 8.4 | 27.1 | |||||||
Claim settlement receivable | 5.3 | 7.8 | |||||||
Other assets | 47.1 | 38.4 | |||||||
Property and equipment, net | 11.8 | 9.0 | |||||||
Investments held by special purpose entities |
207.9 |
208.6 |
|||||||
Total assets |
$ |
921.0 |
$ | 1,027.9 | |||||
Liabilities and Equity | |||||||||
Debt | $ | 55.6 | $ | 55.0 | |||||
Other liabilities | 47.3 | 41.0 | |||||||
Deferred tax liabilities, net | 49.0 | 68.8 | |||||||
Senior Notes held by special purpose entity |
176.5 |
176.3 |
|||||||
Total liabilities | 328.4 | 341.1 | |||||||
Total equity |
592.6 |
686.8 |
|||||||
Total liabilities and equity | $ | 921.0 | $ | 1,027.9 | |||||
Debt Schedule | |||||||||
($ in millions) | |||||||||
|
|
||||||||
|
$ | 46.8 | $ | 47.5 | |||||
|
7.2 | 7.5 | |||||||
Construction loan |
1.6 |
-- |
|||||||
Total debt | $ | 55.6 | $ | 55.0 | |||||
Other Operating and Corporate Expenses | |||||||||||||||||
($ in millions) | |||||||||||||||||
Quarter Ended |
Year Ended |
||||||||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||||||
Employee costs | $ | 1.7 | $ | 1.8 | $ | 6.9 | $ | 7.1 | |||||||||
401(k) contribution | -- | -- | 1.2 | 1.4 | |||||||||||||
Non-cash stock compensation costs | -- | -- | 0.1 | 0.1 | |||||||||||||
Property taxes and insurance | 1.1 | 1.3 | 5.2 | 5.6 | |||||||||||||
Professional fees | 0.7 | 1.2 | 2.9 | 5.0 | |||||||||||||
Marketing and owner association costs | 0.5 | 0.5 | 1.5 | 1.5 | |||||||||||||
Occupancy, repairs and maintenance | 0.2 | 0.2 | 0.6 | 0.7 | |||||||||||||
Other |
0.9 |
0.3 |
2.0 |
1.7 |
|||||||||||||
Total other operating and corporate expense | $ |
5.1 |
$ | 5.3 | $ | 20.4 | $ | 23.1 | |||||||||
Additional Information and Where to Find It
Additional information with respect to the Company's results for the
fourth quarter and full year 2017 will be available in a Form 10-K that
will be filed with the
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 the implementation of our business strategy; our positive momentum headed into 2018; increases in membership revenue from The Clubs by Joe; our continued cost discipline to support bottom line performance; our exploration of opportunities in a changing lodging business in our local market; our joint venture for a new hotel development; our anticipated capital expenditure increases in 2018 in order to grow recurring revenue from commercial leases, residential apartments and hotels; and our continued maintenance of low overhead expenses. 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, including our VentureCrossings holdings; (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: http://www.businesswire.com/news/home/20180301006332/en/
Investor Relations Contact:
Chief Financial Officer
Marek.Bakun@Joe.Com
Source:
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