The St. Joe Company Reports Third Quarter 2021 Results
- Net Income up 94% for the third quarter of 2021 versus the third quarter of 2020
-
Net Cash from Operations up 79% for the third quarter of 2021 versus the third quarter of 2020
- Record residential backlog totaling 1,661 homesites and 299 Latitude Margaritaville Watersound homes
Net Cash Provided by Operating Activities for the three months ended
In the third quarter of 2021, the Company invested
On
Real Estate Revenue
Real estate revenue increased by approximately 27% to
As of
The Latitude Margaritaville Watersound unconsolidated joint venture project, planned for 3,500 residential homes, contracted the initial releases of homes. As of
Hospitality Revenue
Hospitality revenue increased by approximately 31% to
In the third quarter of 2021, the Company opened a 143-room
Leasing Revenue
Leasing revenue from commercial, retail, multi-family and other properties accelerated in the third quarter of 2021 as projects were completed and transitioned from construction to the leasing stage. Leasing revenue increased by approximately 44% to
The Company’s leasable space as of
Other Operating and Corporate Expenses
Other operating and corporate expenses for the three months ended
Financial data schedules in this press release include consolidated results, summary balance sheets, other operating and corporate expenses and the reconciliation of Cash Generated for Distribution or Investment (CGFDI), a non-GAAP financial measure, for the third quarter of 2021 and 2020, 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
|
Nine Months Ended
|
||
|
2021 |
2020 |
2021 |
2020 |
Revenue |
|
|
|
|
Real estate revenue |
|
|
|
|
Hospitality revenue |
22.3 |
17.0 |
58.0 |
35.2 |
Leasing revenue |
7.1 |
4.9 |
19.1 |
14.2 |
Timber revenue |
1.0 |
1.6 |
4.8 |
5.5 |
Total revenue |
53.9 |
42.0 |
167.5 |
96.7 |
Expenses |
|
|
|
|
Cost of real estate revenue |
8.5 |
9.4 |
33.1 |
18.4 |
Cost of hospitality revenue |
16.5 |
11.0 |
43.5 |
26.5 |
Cost of leasing revenue |
3.1 |
2.0 |
8.3 |
4.0 |
Cost of timber revenue |
0.1 |
0.2 |
0.5 |
0.6 |
Other operating and corporate expenses |
5.0 |
5.1 |
17.1 |
17.0 |
Depreciation, depletion and amortization |
4.6 |
3.3 |
12.6 |
9.4 |
Total expenses |
37.8 |
31.0 |
115.1 |
75.9 |
Operating income |
16.1 |
11.0 |
52.4 |
20.8 |
Investment income, net |
2.3 |
2.4 |
4.8 |
2.8 |
Interest expense |
(4.1) |
(3.4) |
(11.6) |
(10.1) |
Other income, net |
7.4 |
0.3 |
12.9 |
20.3 |
Income before equity in loss from unconsolidated affiliates and income taxes |
21.7 |
10.3 |
58.5 |
33.8 |
Equity in loss from unconsolidated affiliates |
(0.5) |
(0.1) |
(1.6) |
(0.3) |
Income tax expense |
(6.4) |
(2.4) |
(15.2) |
(7.8) |
Net income |
14.8 |
7.8 |
41.7 |
25.7 |
Net loss (income) attributable to non-controlling interest |
0.4 |
-- |
0.9 |
(0.3) |
Net income attributable to the Company |
|
|
|
|
Net income per share attributable to the Company |
|
|
|
|
Weighted average shares outstanding |
58,882,549 |
58,882,549 |
58,882,549 |
59,052,613 |
Summary Balance Sheet (Unaudited) |
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($ in millions) |
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|
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|
|
|
Assets |
|
|
Investment in real estate, net |
|
|
Investment in unconsolidated joint ventures |
50.8 |
38.0 |
Cash and cash equivalents |
27.2 |
106.8 |
Investments – debt securities |
103.0 |
48.1 |
Other assets |
69.9 |
65.8 |
Property and equipment, net |
32.3 |
20.8 |
Investments held by special purpose entities |
205.5 |
206.1 |
Total assets |
|
|
|
|
|
Liabilities and Equity |
|
|
Debt, net |
|
|
Other liabilities |
91.8 |
72.0 |
Deferred tax liabilities, net |
72.6 |
60.9 |
Senior Notes held by special purpose entity |
177.5 |
177.3 |
Total liabilities |
538.0 |
469.1 |
Total equity |
598.6 |
568.2 |
Total liabilities and equity |
|
|
Other Operating and Corporate Expenses (Unaudited) |
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($ in millions) |
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|
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|
Quarter Ended
|
Nine Months Ended
|
||
|
2021 |
2020 |
2021 |
2020 |
Employee costs |
|
|
|
|
401(k) contribution |
-- |
-- |
1.2 |
1.2 |
Property taxes and insurance |
1.4 |
1.3 |
4.1 |
3.8 |
Professional fees |
0.7 |
1.0 |
2.3 |
3.2 |
Marketing and owner association costs |
0.3 |
0.4 |
1.3 |
0.9 |
Occupancy, repairs and maintenance |
0.3 |
0.2 |
0.5 |
0.6 |
Other |
0.3 |
0.2 |
1.1 |
1.0 |
Total other operating and corporate expense |
|
|
|
|
Reconciliation of Non-GAAP Financial Measures (Unaudited)
($ in millions except per share amount)
“Cash Generated for Distribution or Investment” (CGFDI) and CGFDI Per Share are non-GAAP measures, which management believes assists investors by providing insight into the cash generated by the Company that management has available for distribution to shareholders or for reinvestment into the business. CGFDI is calculated by adding “Net Cash Provided by Operating Activities”, “Expenditures for and Acquisition of Real Estate to Be Sold”, and “Capital Distribution from Unconsolidated Affiliates” and subtracting “Capital Distribution to Non-Controlling Interests”, “Principal Payments for Debt”, “Principal Payments Under Finance Lease Obligation”, and “Maintenance Capital Expenditures”. Maintenance Capital Expenditures are intended to show capital expenditures made to maintain the value and/or revenue generating capacity of existing operating assets. CGFDI should not be considered an alternative to “Net Cash Provided by Operating Activities” determined in accordance with GAAP as an indicator of the Company’s cash flows and liquidity position. CDFGI Per Share is calculated by dividing CGFDI by “Weighted Average Shares Outstanding.”
|
Quarter Ended |
Nine Months Ended |
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|
|
|
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|
2021 |
2020 |
2021 |
2020 |
Net Cash Provided by Operating Activities |
|
|
|
|
Plus: Expenditures for and Acquisition of Real Estate to Be Sold |
13.6 |
6.9 |
28.3 |
24.3 |
Plus: Capital Distribution from Unconsolidated Affiliates |
0.2 |
-- |
0.2 |
-- |
Less: Capital Distribution to Non-Controlling Interests |
(0.3) |
(0.4) |
(1.0) |
(0.4) |
Less: Principal Payments for Debt |
(0.2) |
(0.4) |
(1.5) |
(1.5) |
Less: Principal Payments Under Finance Lease Obligation |
-- |
-- |
(0.1) |
-- |
Less: Maintenance Capital Expenditures |
(0.4) |
(0.7) |
(1.7) |
(3.3) |
CGFDI |
|
|
|
|
Weighted Average Shares Outstanding |
58,882,549 |
58,882,549 |
58,882,549 |
59,052,613 |
CGFDI Per Share |
|
|
|
|
Additional Information and Where to Find It
Additional information with respect to the Company’s results for the third quarter 2021 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 our growth prospects; expansion of operational assets; our continued cost discipline to maintain an efficient cost structure; our capital allocation initiatives, including the timing and amount of dividends; plans regarding our joint venture developments; and timing of current developments and new projects in 2021 and beyond. 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) the potential impacts of the ongoing COVID-19 pandemic; (2) any changes in our strategic objectives or our ability to successfully implement such strategic objectives; (3) our ability to successfully execute our newer business ventures, including expansion of our portfolio of income producing commercial and multi-family properties, senior living communities and hotels, some or all of which may be negatively impacted by the COVID-19 pandemic; (4) 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 granted entitlements; (5) significant decreases in the market value of our investments in securities or any other investments; (6) our dependence on strong migration and population expansion in our regions of development, particularly
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
© 2021,
View source version on businesswire.com: https://www.businesswire.com/news/home/20211027006056/en/
St. Joe Investor Relations Contact:
Chief Financial Officer
1-866-417-7132
Marek.Bakun@Joe.Com
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