The St. Joe Company Reports Third Quarter and First Nine Months of 2023 Results and Declares a Quarterly Dividend of $0.12
Highlights for the third quarter of 2023 compared to the third quarter of 2022:
-
Quarterly net income attributable to the Company increased by 57% to
$19.4 million from$12.4 million . -
Quarterly revenue increased by 76% to
$101.4 million from$57.6 million . -
Real estate revenue increased by 131% to
$39.9 million from$17.3 million . -
Hospitality revenue increased by 63% to a quarterly record of
$47.4 million from$29.0 million . -
Leasing revenue increased by 30% to
$13.1 million from$10.1 million . As ofSeptember 30, 2023 , the 1,082,000 net rentable square feet were 96% leased. - Homesite closings volume increased 226% to 254 homesites from 78 homesites.
- Latitude Margaritaville Watersound unconsolidated joint venture completed home sales increased by 62% to 189 homes as compared to 117 homes.
In addition to our homesite sales, the Latitude Margaritaville Watersound unconsolidated joint venture had 156 new contracts and 189 completed home sales in the quarter, bringing 2023 year to date to 457 new contracts and 502 completed home sales. Since the start of sales in the community in 2021, there have been 1,497 home sale contracts and 865 completed home sales at Latitude with buyers from all 50 states.”
Consolidated Third Quarter and First Nine Months of 2023 Results
Total consolidated revenue for the third quarter of 2023 increased by 76% 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 for the third quarter of 2023 increased by 57% to
Earnings before interest, taxes, depreciation and amortization (“EBITDA”), a non-GAAP financial measure, for the three months ended
On
Real Estate
For the three months ended
For the nine months ended
As of
The Latitude Margaritaville Watersound unconsolidated joint venture, planned for 3,500 residential homes, had 156 net sales contracts executed in the third quarter of 2023. Since the start of sales in 2021, there have been 1,497 home contracts. For the third quarter of 2023, there were 189 completed home sales, bringing the community to 865 occupied homes. The 632 homes under contract as of
Hospitality
Hospitality revenue increased by 63% to a quarterly record of
Five hotels, totaling 646 rooms, opened for business in 2023. The Lodge 30A hotel opened to guests in
Leasing
Leasing revenue from commercial, retail, multi-family, senior living, self-storage, marinas and other properties increased by 30% to
Rentable space as of
Corporate and Other Operating Expenses
The Company’s corporate and other operating expenses for the nine months ended
Investments, Liquidity and Debt
In the third quarter of 2023, the Company funded
As of
Additional Information and Where to Find It
Additional information with respect to the Company’s results for the third quarter 2023 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 earnings before interest, taxes, depreciation and amortization (EBITDA), a non-GAAP financial measure, for the third quarter of 2023 and 2022, respectively.
FINANCIAL DATA |
||||||||||||
Consolidated Results (Unaudited) |
||||||||||||
($ in millions except share and per share amounts) |
||||||||||||
|
Quarter Ended
|
Nine Months Ended
|
||||||||||
|
2023 |
2022 |
2023 |
2022 |
||||||||
Revenue |
|
|
|
|
||||||||
Real estate revenue |
$ |
39.9 |
|
$ |
17.3 |
|
$ |
144.3 |
|
$ |
82.1 |
|
Hospitality revenue |
|
47.4 |
|
|
29.0 |
|
|
117.0 |
|
|
74.9 |
|
Leasing revenue |
|
13.1 |
|
|
10.1 |
|
|
37.2 |
|
|
28.2 |
|
Timber revenue |
|
1.0 |
|
|
1.2 |
|
|
4.0 |
|
|
5.5 |
|
Total revenue |
|
101.4 |
|
|
57.6 |
|
|
302.5 |
|
|
190.7 |
|
Expenses |
|
|
|
|
||||||||
Cost of real estate revenue |
|
21.1 |
|
|
7.2 |
|
|
72.5 |
|
|
35.3 |
|
Cost of hospitality revenue |
|
36.1 |
|
|
22.0 |
|
|
92.4 |
|
|
58.2 |
|
Cost of leasing revenue |
|
6.8 |
|
|
4.9 |
|
|
18.7 |
|
|
12.6 |
|
Cost of timber revenue |
|
0.2 |
|
|
0.2 |
|
|
0.6 |
|
|
0.6 |
|
Corporate and other operating expenses |
|
6.2 |
|
|
5.3 |
|
|
17.4 |
|
|
16.5 |
|
Depreciation, depletion and amortization |
|
10.7 |
|
|
5.8 |
|
|
27.5 |
|
|
16.3 |
|
Total expenses |
|
81.1 |
|
|
45.4 |
|
|
229.1 |
|
|
139.5 |
|
Operating income |
|
20.3 |
|
|
12.2 |
|
|
73.4 |
|
|
51.2 |
|
Investment income, net |
|
3.6 |
|
|
2.7 |
|
|
9.8 |
|
|
7.5 |
|
Interest expense |
|
(8.4 |
) |
|
(4.7 |
) |
|
(21.8 |
) |
|
(13.0 |
) |
Equity in income from unconsolidated joint ventures |
|
8.7 |
|
|
2.5 |
|
|
18.4 |
|
|
3.4 |
|
Other income, net |
|
1.3 |
|
|
3.5 |
|
|
3.9 |
|
|
8.1 |
|
Income before income taxes |
|
25.5 |
|
|
16.2 |
|
|
83.7 |
|
|
57.2 |
|
Income tax expense |
|
(6.8 |
) |
|
(4.1 |
) |
|
(21.7 |
) |
|
(14.6 |
) |
Net income |
|
18.7 |
|
|
12.1 |
|
|
62.0 |
|
|
42.6 |
|
Net loss attributable to non-controlling interest |
|
0.7 |
|
|
0.3 |
|
|
2.5 |
|
|
0.2 |
|
Net income attributable to the Company |
$ |
19.4 |
|
$ |
12.4 |
|
$ |
64.5 |
|
$ |
42.8 |
|
Basic net income per share attributable to the Company |
$ |
0.33 |
|
$ |
0.21 |
|
$ |
1.11 |
|
$ |
0.73 |
|
Basic weighted average shares outstanding |
|
58,314,117 |
|
|
58,814,972 |
|
|
58,312,461 |
|
|
58,859,723 |
|
Summary Balance Sheet (Unaudited) |
||||
($ in millions) |
||||
|
|
|
||
Assets |
|
|
||
Investment in real estate, net |
$ |
1,011.4 |
$ |
996.3 |
Investment in unconsolidated joint ventures |
|
68.4 |
|
50.0 |
Cash and cash equivalents |
|
92.0 |
|
37.7 |
Investments – debt securities |
|
10.0 |
|
40.6 |
Other assets |
|
87.0 |
|
61.7 |
Property and equipment, net |
|
69.1 |
|
39.6 |
Investments held by special purpose entities |
|
204.2 |
|
204.9 |
Total assets |
$ |
1,542.1 |
$ |
1,430.8 |
|
|
|
||
Liabilities and Equity |
|
|
||
Debt, net |
$ |
453.1 |
$ |
385.9 |
Accounts payable and other liabilities |
|
91.2 |
|
94.3 |
Deferred revenue |
|
55.5 |
|
38.9 |
Deferred tax liabilities, net |
|
70.6 |
|
82.7 |
Senior Notes held by special purpose entity |
|
178.1 |
|
177.9 |
Total liabilities |
|
848.5 |
|
779.7 |
Total equity |
|
693.6 |
|
651.1 |
Total liabilities and equity |
$ |
1,542.1 |
$ |
1,430.8 |
Corporate and Other Operating Expenses (Unaudited) |
||||||||
($ in millions) |
||||||||
|
Quarter Ended
|
Nine Months Ended
|
||||||
|
2023 |
2022 |
2023 |
2022 |
||||
Employee costs |
$ |
2.5 |
$ |
2.3 |
$ |
7.8 |
$ |
7.1 |
Property taxes and insurance |
|
1.8 |
|
1.6 |
|
4.6 |
|
4.2 |
Professional fees |
|
1.1 |
|
0.8 |
|
2.8 |
|
2.7 |
Marketing and owner association costs |
|
0.3 |
|
0.2 |
|
0.7 |
|
0.7 |
Occupancy, repairs and maintenance |
|
0.1 |
|
0.1 |
|
0.3 |
|
0.6 |
Other miscellaneous |
|
0.4 |
|
0.3 |
|
1.2 |
|
1.2 |
Total corporate and other operating expenses |
$ |
6.2 |
$ |
5.3 |
$ |
17.4 |
$ |
16.5 |
Reconciliation of Non-GAAP Financial Measures (Unaudited)
($ in millions)
Earnings before interest, taxes, depreciation and amortization (“EBITDA”) is a non-GAAP financial measure, which management believes assists investors by providing insight into operating performance of the Company across periods on a consistent basis and, when viewed in combination with the Company results prepared in accordance with GAAP, provides a more complete understanding of factors and trends affecting the Company. However, EBITDA has limitations as an analytical tool and should not be considered in isolation or as a substitute for analysis of results reported under GAAP. EBITDA is calculated by adjusting “Interest expense”, “Investment income, net”, “Income tax expense”, “Depreciation, depletion and amortization” to “Net income attributable to the Company”.
|
Quarter Ended |
Nine Months Ended |
||||||||||
|
|
|
||||||||||
|
2023 |
2022 |
2023 |
2022 |
||||||||
Net income attributable to the Company |
$ |
19.4 |
|
$ |
12.4 |
|
$ |
64.5 |
|
$ |
42.8 |
|
Plus: Interest expense |
|
8.4 |
|
|
4.7 |
|
|
21.8 |
|
|
13.0 |
|
Less: Investment income, net |
|
(3.6 |
) |
|
(2.7 |
) |
|
(9.8 |
) |
|
(7.5 |
) |
Plus: Income tax expense |
|
6.8 |
|
|
4.1 |
|
|
21.7 |
|
|
14.6 |
|
Plus: Depreciation, depletion and amortization |
|
10.7 |
|
|
5.8 |
|
|
27.5 |
|
|
16.3 |
|
EBITDA |
$ |
41.7 |
|
$ |
24.3 |
|
$ |
125.7 |
|
$ |
79.2 |
|
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 such as increases in hotel rooms; 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 2023 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; financial institution disruptions; geopolitical conflicts (such as the conflict between
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
© 2023,
View source version on businesswire.com: https://www.businesswire.com/news/home/20231025454119/en/
St. Joe Investor Relations Contact:
Chief Financial Officer
1-866-417-7132
marek.bakun@joe.Com
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