The St. Joe Company (NYSE:JOE) (the "Company") today announced Net Income for the first quarter of 2018 of $0.7 million, or $0.01 per share, compared with Net Income of $4.4 million, or $0.06 per share, for the first quarter of 2017. The first quarter of 2017 includes a $3.5 million benefit from an insurance settlement and $3.1 million in net realized gains from the sale of investments. Excluding Other Income items, the first quarter of 2018 Operating Loss improved by approximately $4.1 million as compared to the first quarter of 2017.
First quarter update includes:
The Company had cash, cash equivalents and investments of $293.9 million as of March 31, 2018, compared to $303.4 million as of December 31, 2017, a decrease of $9.5 million. The decrease was related to $13.7 million used for stock repurchases, offset by net receipts from the Company's operations and other activities.
The Company adopted ASU 2014-09 (Revenue from Contracts with Customers), as amended, recognizing lot residuals, marketing and other fees as revenue at the time of sale of homesites. For the three months ended March 31, 2018, real estate revenue includes approximately $0.7 million of estimated lot residuals, marketing and other fees related to homesites sold in the quarter. Prior to 2018, these lot residuals, marketing and other fees were recognized in revenue when consideration was received in periods subsequent to the sale of the homesite. For the three months ended March 31, 2017, real estate revenue includes approximately $0.3 million related to lot residuals, marketing and other fees.
Financial data schedules in the back of this press release provide greater detail on business segment performance, summarizing the consolidated results, summary balance sheets, debt schedule and other operating and corporate expenses for the first quarter of 2018 and 2017, respectively.
Jorge Gonzalez, the Company's President and Chief Executive Officer, said, "We continue to make progress in our operations, with an increase of $4.1 million as compared to the first quarter of 2017." Mr. Gonzalez added, "As I mention in my annual letter to shareholders, I believe that the necessary ingredients for prosperity exist in Northwest Florida and extend a personal invitation for you to judge the opportunities for yourself by visiting. In fact, a perfect time to visit is during our upcoming annual meeting scheduled for May 23rd where we will be prepared to discuss our assets and engage with our shareholders."
First quarter update includes:
- Total revenue for 2018 was $19.9 million as compared to $13.5 million in 2017 due to increases in real estate, leasing and timber revenue, partially offset by a decrease in resorts and leisure revenue.
- Real estate revenue increased to $7.7 million in 2018 as compared to $1.5 million in 2017. This increase was primarily related to the higher volume of lot sales in the Watersound Origins, SouthWood and Breakfast Point communities. There were 106 homesites sold in the first quarter of 2018 compared to 2 homesites sold in the first quarter of 2017.
- Resorts and leisure revenue decreased in 2018 as compared to 2017 by $0.6 million due to the sale of the short-term vacation rental management business during December 2017, partially offset by an increase in clubs business. The clubs component of this segment's revenue continues to climb due to increased membership revenue from The Clubs by Joe, the Company's private membership club.
- Other operating and corporate expenses declined by $0.3 million in 2018 as compared to 2017. The Company continues to focus on a cost discipline to maintain an efficient cost structure.
The Company had cash, cash equivalents and investments of $293.9 million as of March 31, 2018, compared to $303.4 million as of December 31, 2017, a decrease of $9.5 million. The decrease was related to $13.7 million used for stock repurchases, offset by net receipts from the Company's operations and other activities.
The Company adopted ASU 2014-09 (Revenue from Contracts with Customers), as amended, recognizing lot residuals, marketing and other fees as revenue at the time of sale of homesites. For the three months ended March 31, 2018, real estate revenue includes approximately $0.7 million of estimated lot residuals, marketing and other fees related to homesites sold in the quarter. Prior to 2018, these lot residuals, marketing and other fees were recognized in revenue when consideration was received in periods subsequent to the sale of the homesite. For the three months ended March 31, 2017, real estate revenue includes approximately $0.3 million related to lot residuals, marketing and other fees.
Financial data schedules in the back of this press release provide greater detail on business segment performance, summarizing the consolidated results, summary balance sheets, debt schedule and other operating and corporate expenses for the first quarter of 2018 and 2017, respectively.
Jorge Gonzalez, the Company's President and Chief Executive Officer, said, "We continue to make progress in our operations, with an increase of $4.1 million as compared to the first quarter of 2017." Mr. Gonzalez added, "As I mention in my annual letter to shareholders, I believe that the necessary ingredients for prosperity exist in Northwest Florida and extend a personal invitation for you to judge the opportunities for yourself by visiting. In fact, a perfect time to visit is during our upcoming annual meeting scheduled for May 23rd where we will be prepared to discuss our assets and engage with our shareholders."
