The St. Joe Company Reports Third Quarter and First Nine Months of 2022 Results and Declares a Quarterly Dividend Of $0.10
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Quarterly revenue increased by 7% to
$57.6 million , compared to$53.9 million in 2021 due to strong growth in leasing and hospitality revenue, which we believe is recurring. Leasing revenue increased by 42% and hospitality revenue increased by 30%. Real estate revenue decreased by 26% due to timing of homesite closings.
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Net income attributable to the Company for the quarter decreased by 18% to
$12.4 million compared to$15.2 million in the same period in 2021. In 2021, the Company received a one-time payment of$3.6 million related to Hurricane Michael.
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For the first nine months of 2022, revenue increased by 14% to
$190.7 million and net income attributable to the Company increased to$42.8 million , as compared to$42.6 million for the first nine months of 2021.
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During the nine months ended
September 30, 2022 , the Company repurchased 576,963 shares of its common stock for$20.0 million .
Total revenue for the third quarter of 2022 increased by 7% to
For the nine months ended
Over the past few years, the Company entered into eight joint ventures which are unconsolidated and accounted for using the equity method. For the three months ended
Net income attributable to the Company for the third quarter of 2022 decreased by 18% to
Net Cash Provided by Operating Activities for the three months ended
Cash Generated for Distribution or Investment (“CGFDI”), a non-GAAP measure that is detailed in the Financial Data included below, for the three months ended
In the third quarter of 2022, the Company funded
On
“As of
Real Estate
For the third quarter of 2022, the homesite sales volume decreased by 34% to 78 homesites, as compared to 119 homesites in the third quarter of 2021. Due to the mix of sales from different communities, the average sales price for the third quarter of 2022 was
For the nine months ended
As of
The Latitude Margaritaville Watersound unconsolidated joint venture, planned for 3,500 residential homes, had 153 net sale contracts executed in the third quarter of 2022. Since the start of sales in 2021, there have been 888 home contracts. For the third quarter of 2022, there were 117 completed home sales bringing the community to 247 occupied homes. The 641 homes under contract as of
Hospitality
Hospitality revenue increased by 30% to
Hospitality revenue continues to benefit from the growth of the
Homewood Suites by Hilton hotel at the
Leasing
Leasing revenue from commercial, office, retail, multi-family, senior living, self-storage and other properties increased by 42% to
Rentable space as of
Corporate and Other Operating Expenses
The Company’s corporate and other operating expenses for the three months ended
Additional Information and Where to Find It
Additional information with respect to the Company’s results for the third quarter of 2022 will be available in a Form 10-Q that will be filed with the
FINANCIAL DATA SCHEDULES
Financial data schedules in this press release include consolidated results, summary balance sheets, corporate and other operating expenses and the reconciliation of Cash Generated for Distribution or Investment (CGFDI), a non-GAAP financial measure, for the third quarter of 2022 and 2021, 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
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Nine Months Ended
|
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|
2022 |
2021 |
2022 |
2021 |
Revenue |
|
|
|
|
Real estate revenue |
|
|
|
|
Hospitality revenue |
29.0 |
22.3 |
74.9 |
58.0 |
Leasing revenue |
10.1 |
7.1 |
28.2 |
19.1 |
Timber revenue |
1.2 |
1.0 |
5.5 |
4.8 |
Total revenue |
57.6 |
53.9 |
190.7 |
167.5 |
Expenses |
|
|
|
|
Cost of real estate revenue |
7.2 |
8.5 |
35.3 |
33.1 |
Cost of hospitality revenue |
22.0 |
16.5 |
58.2 |
43.5 |
Cost of leasing revenue |
4.9 |
3.1 |
12.6 |
8.3 |
Cost of timber revenue |
0.2 |
0.1 |
0.6 |
0.5 |
Corporate and other operating expenses |
5.3 |
5.0 |
16.5 |
17.1 |
Depreciation, depletion and amortization |
5.8 |
4.6 |
16.3 |
12.6 |
Total expenses |
45.4 |
37.8 |
139.5 |
115.1 |
Operating income |
12.2 |
16.1 |
51.2 |
52.4 |
Investment income, net |
2.7 |
2.3 |
7.5 |
4.8 |
Interest expense |
(4.7) |
(4.1) |
(13.0) |
(11.6) |
Other income, net |
3.5 |
7.4 |
8.1 |
12.9 |
Income before equity in income (loss) from unconsolidated joint ventures and income taxes |
13.7 |
21.7 |
53.8 |
58.5 |
Equity in income (loss) from unconsolidated joint ventures |
2.5 |
(0.5) |
3.4 |
(1.6) |
Income tax expense |
(4.1) |
(6.4) |
(14.6) |
(15.2) |
Net income |
12.1 |
14.8 |
42.6 |
41.7 |
Net loss attributable to non-controlling interest |
0.3 |
0.4 |
0.2 |
0.9 |
Net income attributable to the Company |
|
|
|
|
Basic net income per share attributable to the Company |
|
|
|
|
Basic weighted average shares outstanding |
58,814,972 |
58,882,549 |
58,859,723 |
58,882,549 |
Summary Balance Sheet (Unaudited) | ||
($ in millions) |
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|
|
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Assets |
|
|
Investment in real estate, net |
|
|
Investment in unconsolidated joint ventures |
58.9 |
52.0 |
Cash and cash equivalents |
18.8 |
70.2 |
Investments – debt securities |
74.0 |
89.0 |
Other assets |
62.2 |
70.3 |
Property and equipment, net |
37.0 |
31.1 |
Investments held by special purpose entities |
204.8 |
205.5 |
Total assets |
|
|
|
|
|
Liabilities and Equity |
|
|
Debt, net |
|
|
Other liabilities |
83.3 |
68.0 |
Deferred revenue |
39.3 |
36.2 |
Deferred tax liabilities, net |
81.5 |
77.3 |
Senior Notes held by special purpose entity |
177.8 |
177.6 |
Total liabilities |
703.0 |
582.1 |
Total equity |
636.5 |
626.1 |
Total liabilities and equity |
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|
Corporate and Other Operating Expenses (Unaudited) |
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($ in millions) |
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|
Quarter Ended
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Nine Months Ended
|
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|
2022 |
2021 |
2022 |
2021 |
Employee costs |
|
|
|
|
Property taxes and insurance |
1.6 |
1.4 |
4.2 |
4.1 |
Professional fees |
0.8 |
0.7 |
2.7 |
2.3 |
Marketing and owner association costs |
0.2 |
0.3 |
0.7 |
1.3 |
Occupancy, repairs and maintenance |
0.1 |
0.3 |
0.6 |
0.5 |
Other miscellaneous |
0.3 |
0.3 |
1.2 |
1.1 |
Total corporate and other operating expenses |
|
|
|
|
Reconciliation of Non-GAAP Financial Measures (Unaudited)
($ in millions except per share amount)
“Cash Generated for Distribution or Investment” (CGFDI) is a non-GAAP measure, 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. This measure is calculated by adding “Net Cash Provided by Operating Activities”, “Expenditures for and Acquisition of Real Estate to Be Sold”, and “Capital Distributions from Unconsolidated Joint Ventures” and subtracting “Capital Distributions to Non-Controlling Interest”, “Principal Payments for Debt”, “Principal Payments for Finance Leases”, 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.
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Quarter Ended |
Nine Months Ended |
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2022 |
2021 |
2022 |
2021 |
Net Cash Provided by Operating Activities |
|
|
|
|
Plus: Expenditures for and Acquisition of Real Estate to Be Sold |
20.9 |
13.6 |
69.7 |
28.3 |
Plus: Capital Distributions from |
2.6 |
0.2 |
3.2 |
0.2 |
Less: Capital Distributions to Non-Controlling Interest |
(0.5) |
(0.3) |
(2.3) |
(1.0) |
Less: Principal Payments for Debt * |
(0.7) |
(0.2) |
(2.2) |
(1.5) |
Less: Principal Payments for Finance Leases |
-- |
-- |
(0.1) |
(0.1) |
Less: Maintenance Capital Expenditures |
(0.3) |
(0.4) |
(2.4) |
(1.7) |
CGFDI |
|
|
|
|
Basic Weighted Average Shares Outstanding |
58,814,972 |
58,882,549 |
58,859,723 |
58,882,549 |
CGFDI Per Basic Share |
|
|
|
|
*Principal Payments for Debt does not include |
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; plans to maintain an efficient cost structure; our capital allocation initiatives, including the payment of our quarterly dividend; plans regarding our joint venture developments; and the timing of current developments and new projects in 2022 and beyond. These statements involve risks and uncertainties, and actual results may differ materially from any future results expressed or implied by the forward-looking statements.
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: our ability to successfully implement our strategic objectives; new or increased competition across our business units; any decline in general economic conditions, particularly in our primary markets; interest rate fluctuations; supply chain disruptions; inflation; geopolitical conflicts and political uncertainty and the corresponding impact on the global economy; the continuing recovery from the COVID-19 pandemic; our ability to successfully execute or integrate new business endeavors and acquisitions; our ability to yield anticipated returns from our developments and projects; our ability to effectively manage our real estate assets, as well as the ability for us or our joint venture partners to effectively manage the day-to-day activities of our joint venture projects; the illiquidity of all real estate assets; financial risks, including risks relating to currency fluctuations, credit risks, and fluctuations in the market value of our investment portfolio; 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; our dependence on homebuilders; reductions in travel and other risks inherent to the hospitality industry; the financial condition of our commercial tenants; regulatory and insurance risks associated with our senior living facilities; public health emergencies; any reduction in the supply of mortgage loans or tightening of credit markets; 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, and we do not undertake to update these statements other than as required by law.
About
© 2022,
View source version on businesswire.com: https://www.businesswire.com/news/home/20221026005767/en/
St. Joe Investor Relations Contact:
Chief Financial Officer
1-866-417-7132
Marek.Bakun@Joe.Com
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