The St. Joe Company Reports Second Quarter 2019 Results
WATERSOUND, Fla.--(BUSINESS WIRE)--Jul. 31, 2019--
The
The following information compares the second quarter of 2019 to the second quarter of 2018.
Real Estate Revenue
Real estate revenue for the second quarter of 2018, including the
As of
Hospitality Revenue
Hospitality revenue increased in 2019 as compared to 2018 by
Leasing Revenue
As of
Leasing revenue increased by approximately
Timber Revenue
Timber revenue decreased to
Other Operating and Corporate Expenses
Other operating and corporate expenses of
Liquidity
The Company had cash, cash equivalents and investments of
Most importantly, Mr. Gonzalez added, “In the second quarter, we also announced the execution of the definitive joint venture agreement with Minto Communities for the Latitude Margaritaville Watersound active adult community. The first phase is planned for 3,500 homes and with ground breaking projected by the end of 2019, our residential pipeline is anticipated to continue to increase. As of
Financial data schedules included in this press release provide greater detail on business performance, summarizing the consolidated results, summary balance sheets, debt schedule and other operating and corporate expenses for the second quarter of 2019 and 2018, respectively.
FINANCIAL DATA |
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Consolidated Results (Unaudited) |
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($ in millions except share and per share amounts) |
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|
Quarter Ended
|
Six Months Ended
|
||
|
2019 |
2018 |
2019 |
2018 |
Revenue |
|
|
|
|
Real estate revenue |
$15.5 |
$32.1 |
$20.1 |
$39.9 |
Hospitality revenue |
15.6 |
12.9 |
23.0 |
19.9 |
Leasing revenue |
3.7 |
3.5 |
7.2 |
6.9 |
Timber revenue |
0.7 |
1.9 |
1.3 |
3.6 |
Total revenue |
35.5 |
50.4 |
51.6 |
70.3 |
Expenses |
|
|
|
|
Cost of real estate revenue |
6.8 |
3.0 |
8.7 |
7.1 |
Cost of hospitality revenue |
9.0 |
9.4 |
16.2 |
16.2 |
Cost of leasing revenue |
1.1 |
1.2 |
2.1 |
2.3 |
Cost of timber revenue |
0.2 |
0.2 |
0.3 |
0.4 |
Other operating and corporate expenses |
5.1 |
5.0 |
11.1 |
11.0 |
Depreciation, depletion and amortization |
2.4 |
2.3 |
4.5 |
4.5 |
Total expenses |
24.6 |
21.1 |
42.9 |
41.5 |
Operating income |
10.9 |
29.3 |
8.7 |
28.8 |
Investment income, net |
2.5 |
6.0 |
8.6 |
9.6 |
Interest expense |
(3.0) |
(2.9) |
(6.0) |
(5.9) |
Other income, net |
3.3 |
0.2 |
5.0 |
0.5 |
Income before income taxes |
13.7 |
32.6 |
16.3 |
33.0 |
Income tax expense |
(3.4) |
(6.5) |
(4.1) |
(6.3) |
Net income |
10.3 |
26.1 |
12.2 |
26.7 |
Net loss attributable to non-controlling interest |
0.1 |
0.1 |
0.2 |
0.3 |
Net income attributable to the Company |
$10.4 |
$26.2 |
$12.4 |
$27.0 |
Net income per share attributable to the Company |
$0.17 |
$0.41 |
$0.21 |
$0.42 |
Weighted average shares outstanding |
60,200,534 |
63,760,022 |
60,260,488 |
64,613,298 |
Summary Balance Sheet (Unaudited) | ||
($ in millions) |
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|
June 30, 2019 |
December 31, 2018 |
Assets |
|
|
Investment in real estate, net |
$384.0 |
$351.0 |
Cash and cash equivalents |
195.6 |
195.2 |
Investments – debt securities |
2.8 |
9.0 |
Investments – equity securities |
36.3 |
36.1 |
Other assets |
61.5 |
60.3 |
Property and equipment, net |
18.9 |
12.0 |
Investments held by special purpose entities |
207.1 |
207.4 |
Total assets |
$906.2 |
$871.0 |
|
|
|
Liabilities and Equity |
|
|
Debt, net |
$80.2 |
$69.4 |
Other liabilities |
58.8 |
47.4 |
Deferred tax liabilities, net |
48.2 |
44.3 |
Senior Notes held by special purpose entity |
176.9 |
176.8 |
Total liabilities |
364.1 |
337.9 |
Total equity |
542.1 |
533.1 |
Total liabilities and equity |
$906.2 |
$871.0 |
Debt Schedule (Unaudited) |
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($ in millions – Net of issuance costs) |
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|
June 30, 2019 |
December 31, 2018 |
Pier Park North joint venture |
$45.6 |
$46.0 |
Pier Park Crossings joint venture |
23.5 |
14.3 |
Community Development District |
7.0 |
6.3 |
Pier Park outparcel |
1.5 |
1.6 |
WaterColor Crossings |
1.4 |
1.2 |
Beach Homes |
1.2 |
-- |
Total debt, net |
$80.2 |
$69.4 |
Other Operating and Corporate Expenses (Unaudited) |
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($ in millions) |
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|
Quarter Ended
|
Six Months Ended
|
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|
2019 |
2018 |
2019 |
2018 |
Employee costs |
$2.0 |
$1.7 |
$3.8 |
$3.5 |
401(k) contribution |
-- |
-- |
1.1 |
1.1 |
Property taxes and insurance |
1.2 |
1.2 |
2.4 |
2.5 |
Professional fees |
1.0 |
0.8 |
2.0 |
1.7 |
Marketing and owner association costs |
0.4 |
0.3 |
0.7 |
0.6 |
Occupancy, repairs and maintenance |
0.2 |
0.4 |
0.5 |
0.5 |
Other |
0.3 |
0.6 |
0.6 |
1.1 |
Total other operating and corporate expense |
$5.1 |
$5.0 |
$11.1 |
$11.0 |
Additional Information and Where to Find It
Additional information with respect to the Company’s results for the second quarter 2019 will be available in a Form 10-Q 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 expected revenues from sales of residential homesites; expectations on the reopening of the
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 The
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© 2019, The
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Source: The
St. Joe Investor Relations Contact:
Marek Bakun
Chief Financial Officer
1-866-417-7132
Marek.Bakun@Joe.Com