The St. Joe Company Reports Third Quarter 2016 Results
WATERSOUND, Fla.--(BUSINESS WIRE)--
The Company's operating and corporate expenses declined by
Third Quarter highlights include:
-
While
Net Income for the third quarter of 2016 was similar to the third quarter of 2015, operating income for the third quarter of 2016 increased by$4.0 million primarily due to reduced operating and corporate expenses as compared to the third quarter of 2015. In comparison, Net Income for the third quarter of 2015 included a one-time gain of$5.3 million on the sale of investments. -
Total revenue for the quarter was
$27.2 million as compared to$27.8 million in the third quarter of 2015 due to a decrease in real estate revenue and timber revenue partially offset by an increase in resorts and leisure revenue and leasing revenue. The Company's third quarter 2016 revenue was generated from$4.2 million of real estate revenue,$19.0 million from resorts and leisure operations,$2.7 million from leasing operations and$1.3 million from timber revenue. -
Real estate revenue decreased to
$4.2 million in the third quarter of 2016 as compared to$4.9 million in the third quarter of 2015. Real estate revenue in the third quarter of 2016 was comprised of$3.1 million in residential real estate revenue,$0.6 million in commercial real estate revenue and$0.5 million in other revenue. The third quarter of 2015 included$4.9 million in residential real estate revenue. Real estate revenue fluctuates from quarter to quarter partially based on timing of builder contractual closing obligations. -
Resorts and leisure revenue increased approximately
$0.5 million in the third quarter of 2016 to$19.0 million as compared to the third quarter of 2015. The increase during the third quarter of 2016 as compared to the same period in 2015 was primarily related to increased average room rates at both theWaterColor Inn and in the vacation rental program as well as an increase in membership revenue from theSt. Joe Club & Resorts private membership club. -
Leasing revenue increased
$0.2 million during the third quarter of 2016, as compared to the third quarter of 2015. As ofSeptember 30, 2016 , the Company had approximately 517,000 square feet of retail, industrial and commercial space leased. -
As of
September 30, 2016 , the Company had cash, cash equivalents and investments of$402.0 million , as compared to$399.8 million as ofJune 30, 2016 , an increase of$2.2 million .
FINANCIAL DATA | |||||||||
Consolidated Results | |||||||||
($ in millions except share and per share amounts) | |||||||||
Quarter Ended
|
Nine Months Ended
|
||||||||
2016 |
2015 |
2016 |
2015 |
||||||
Revenue | |||||||||
Real estate revenue |
|
|
|
|
|||||
Resorts and leisure revenue | 19.0 | 18.5 | 47.6 | 45.7 | |||||
Leasing revenue | 2.7 | 2.5 | 7.4 | 6.8 | |||||
Timber revenue |
1.3 |
1.9 |
4.0 |
6.0 |
|||||
Total revenue |
27.2 |
27.8 |
77.0 |
82.8 |
|||||
Expenses | |||||||||
Cost of real estate revenue | 2.0 | 2.5 | 6.7 | 12.3 | |||||
Cost of resorts and leisure revenue | 15.4 | 14.7 | 40.4 | 38.2 | |||||
Cost of leasing revenue | 0.7 | 0.7 | 2.2 | 2.0 | |||||
Cost of timber revenue | 0.2 | 0.2 | 0.6 | 0.6 | |||||
Other operating and corporate expenses | 5.2 | 9.9 | 17.7 | 24.7 | |||||
Depreciation, depletion and amortization |
2.1 |
2.2 |
6.5 |
7.3 |
|||||
Total expenses |
25.6 |
30.2 |
74.1 |
85.1 |
|||||
Operating income (loss) |
1.6 |
(2.4) |
2.9 |
(2.3) |
|||||
Other income |
2.0 |
6.4 |
15.1 |
5.1 |
|||||
Income from operations before equity in income from unconsolidated affiliates and income taxes |
3.6 |
4.0 |
18.0 |
2.8 |
|||||
Income tax expense |
(0.9) |
(1.2) |
(5.2) |
(2.0) |
|||||
Net income |
2.7 |
2.8 |
12.8 |
0.8 |
|||||
Net loss attributable to non-controlling interest |
-- |
-- |
0.4 |
-- |
|||||
Net income attributable to the Company |
|
|
|
|
|||||
Net income per share attributable to the Company |
|
|
|
|
|||||
Weighted average shares outstanding | 74,342,826 | 92,026,894 | 74,496,058 | 92,088,253 | |||||
Revenues ($ in millions) |
|||||||||
Quarter Ended
|
Nine Months Ended
|
||||||||
2016 |
2015 |
2016 |
2015 |
||||||
Revenue: | |||||||||
Real estate revenue | |||||||||
Residential |
|
|
|
|
|||||
Commercial | 0.6 | -- | 0.6 | 4.7 | |||||
Other real estate revenue |
0.5 |
-- |
1.5 |
5.3 |
|||||
Total real estate revenue | 4.2 | 4.9 | 18.0 | 24.3 | |||||
Resorts and leisure revenue | 19.0 | 18.5 | 47.6 | 45.7 | |||||
Leasing revenue | 2.7 | 2.5 | 7.4 | 6.8 | |||||
Timber revenue |
1.3 |
1.9 |
4.0 |
6.0 |
|||||
Total revenue |
|
|
|
|
|||||
Summary Balance Sheet | |||||
($ in millions) | |||||
|
|
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Assets | |||||
Investment in real estate, net |
|
|
|||
Cash and cash equivalents | 165.3 | 212.8 | |||
Investments | 236.7 | 191.2 | |||
Restricted investments | 5.6 | 7.1 | |||
Notes receivable, net | 2.0 | 2.6 | |||
Property and equipment, net | 9.2 | 10.1 | |||
Claim settlement receivable | 12.7 | -- | |||
Other assets | 33.3 | 36.5 | |||
Investments held by special purpose entities |
208.6 |
208.8 |
|||
Total assets |
|
|
|||
Liabilities and Equity | |||||
Debt |
|
|
|||
Other liabilities | 43.4 | 41.9 | |||
Deferred tax liabilities | 39.4 | 36.8 | |||
Senior Notes held by special purpose entity |
176.2 |
176.1 |
|||
Total liabilities |
313.2 |
309.3 |
|||
Total equity |
673.2 |
673.4 |
|||
Total liabilities and equity |
|
|
|||
Debt Schedule | |||||
($ in millions) | |||||
|
|
||||
|
|
|
|||
|
6.7 |
7.0 |
|||
Total debt |
|
|
|||
Other Operating and Corporate Expenses | |||||||||
($ in millions) | |||||||||
Quarter Ended
|
Nine Months Ended
|
||||||||
2016 |
2015 |
2016 |
2015 |
||||||
Employee costs |
|
|
|
|
|||||
401(k) contribution / pension costs | -- | -- | 1.4 | 1.1 | |||||
Non-cash stock compensation costs | -- | -- | 0.1 | 0.2 | |||||
Property taxes and insurance | 1.4 | 1.4 | 4.2 | 4.4 | |||||
Professional fees | 1.2 | 2.8 | 3.8 | 5.6 | |||||
Marketing and owner association costs | 0.3 | 0.3 | 1.0 | 1.0 | |||||
Occupancy, repairs and maintenance | 0.2 | 0.2 | 0.5 | 0.7 | |||||
Other |
0.3 |
0.7 |
1.4 |
1.7 |
|||||
Total other operating and corporate expense |
|
|
17.7 |
|
Additional Information and Where to Find It
Additional information with respect to the Company's results for the
third quarter of 2016 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 the Company's focus on growing recurring revenue as
well as its plans for growing leasable spaces and attracting new
businesses into the area and into its commerce parks. 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 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 and the ability of our investment advisor to identify
and acquire suitable investments for our investment portfolio that meet
our risk and return criteria; (5) our ability to capitalize on strategic
opportunities presented by a growing retirement demographic; (6) 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; (7) volatility in the consistency and pace
of our residential real estate sales; (8) any downturns in real estate
markets in
About
© 2016,
View source version on businesswire.com: http://www.businesswire.com/news/home/20161103006744/en/
Investor Relations Contact:
Chief Financial Officer
Marek.Bakun@Joe.Com
Source:
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