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The St. Joe Company Reports First Quarter 2016 Results

WATERSOUND, Fla.--(BUSINESS WIRE)-- The St. Joe Company (NYSE: JOE) (the "Company") today announced Net Income for the first quarter of 2016 of $8.7 million, or $0.12 per share, compared with Net Loss of $(1.7) million, or $(0.02) per share, for the first quarter of 2015. As detailed below, results for the first quarter of 2016 include $12.5 million of pre-tax income from a settlement of claims related to the Deepwater Horizon oil spill.

First Quarter update includes:

Jorge Gonzalez, the Company's President and Chief Executive Officer, said, "It was a good beginning to the new year. We believe we are starting to see the benefits of actions taken in late 2015. We believe that our low fixed expense structure, focus on asset enhancement, 'open for business' mentality, and our clarity and transparency are beginning to translate into positive financial results as part of our plan to unlock the intrinsic value of our assets."

FINANCIAL DATA

Consolidated Results

($ in millions except share and per share amounts)

 
   

Quarter Ended

March 31,

   

2016

 

2015

Revenues        
Real estate sales   $7.1   $5.4
Resorts and leisure revenues   8.7   7.8
Leasing revenues   2.4   2.1
Timber sales  

2.1

 

1.8

Total revenues  

20.3

 

17.1

Expenses        
Cost of real estate sales   1.8   3.1
Cost of resorts and leisure revenues   9.3   8.8
Cost of leasing revenues   0.8   0.7
Cost of timber sales   0.2   0.2
Other operating and corporate expenses   6.8   7.1
Depreciation, depletion and amortization   2.3   2.9
Total expenses  

21.2

 

22.8

Operating loss  

(0.9)

 

(5.7)

Other income  

12.7

 

2.9

Income (loss) before income taxes  

11.8

 

(2.8)

Income tax (expense) benefit  

(3.2)

 

1.1

Net income (loss)  

8.6

 

(1.7)

Net loss( income) attributable to non-controlling interest  

0.1

 

(0.0)

Net income (loss) attributable to the Company  

8.7

 

(1.7)

Net income (loss) per share  

$0.12

 

$(0.02)

Weighted average shares outstanding   74,809,010   92,302,636

Revenues by Segment

($ in millions)

 
   

Quarter Ended

March 31,

   

2016

 

2015

Revenues:        
Real estate sales        
Residential   $7.0   $5.4
Commercial   --   --
Other rural land sales  

0.1

 

--

Total real estate sales   7.1   5.4
Resorts and leisure revenues   8.7   7.8
Leasing revenues   2.4   2.1
Timber sales  

2.1

 

1.8

Total revenues  

$20.3

 

$17.1

Summary Balance Sheet

($ in millions)

   
   

March 31, 2016

 

December 31, 2015

Assets        
Investment in real estate, net   $311.7   $313.6
Cash and cash equivalents   201.3   212.8
Investments   193.6   191.2
Restricted investments   5.7   7.1
Notes receivable, net   2.5   2.6
Property and equipment, net   9.7   10.1
Claim settlement receivable   12.6   --
Other assets   33.5   36.5
Investments held by special purpose entities  

208.4

 

208.8

Total assets  

$979.0

 

$982.7

         
Liabilities and Equity        
Debt   $54.6   $54.5
Other liabilities   43.3   41.9
Deferred tax liabilities   37.9   36.8
Senior Notes held by special purpose entity  

176.1

 

176.1

Total liabilities  

311.9

 

309.3

Total equity  

667.1

 

673.4

Total liabilities and equity  

$979.0

 

$982.7

Debt Schedule

($ in millions)

   
   

March 31, 2016

 

December 31, 2015

Pier Park North joint venture   $47.5   $47.5
Community Development District debt  

7.1

 

7.0

Total debt  

$54.6

 

$54.5

Other Operating and Corporate Expenses

($ in millions)

 
   

Quarter Ended

March 31,

   

2016

 

2015

Employee costs   $1.7   $2.6
401(k) contribution   1.4   0.9
Property taxes and insurance   1.5   1.5
Professional fees   1.4   1.2
Marketing and owner association costs   0.3   0.3
Occupancy, repairs and maintenance   0.2   0.2
Other  

0.3

 

0.4

Total other operating and corporate expenses  

$6.8

 

$7.1

Additional Information and Where to Find It

Additional information with respect to the Company's results for the first 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 belief that the actions taken in late 2015 are beginning to impact the financial results of the Company. 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 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 Bay-Walton Sector holdings; (6) changes in our customer base and the mix of homesites available for sale in our residential real estate; (7) any downturns in real estate markets in Florida or across the nation; (8) our dependence on the real estate industry and the cyclical nature of our real estate operations; (9) 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; (10) changes in laws, regulations or the regulatory environment affecting the development of real estate; (11) our ability to effectively deploy and invest our assets, including our available-for-sale securities; (12) 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 (13) 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 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.

The St. Joe Company
Investor Relations:
Marek Bakun, 1-866-417-7132
Chief Financial Officer
Marek.Bakun@Joe.Com

Source: The St. Joe Company

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