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SoWal Staff

Serving the Community!
Staff member
Apr 14, 2006
3,835
511
South Walon, FL
SoWal.com
The St. Joe Company (NYSE: JOE) (the "Company") today announced Net Income for the fourth quarter of 2017 of $38.5 million, or $0.58 per share, compared with Net Income of $2.7 million, or $0.04 per share, for the fourth quarter of 2016. The fourth quarter of 2017 includes the previously announced sale of the Company's short term vacation rental management business, which resulted in a net gain of $9.8 million recorded in Other income, net of expenses. In addition, the 2017 fourth quarter results include a one-time credit of $33.5 million to re-measure the Company's net deferred tax liability as a result of the Tax Cuts and Jobs Act enacted into law on December 22, 2017, which reduced the Company's federal statutory tax rate from 35% to 21% as of January 1, 2018.

For the full year ended December 31, 2017, the Company reported Net Income of $59.5 million, or $0.84 per share compared to Net Income of $15.9 million, or $0.21 per share for the full year 2016. The 2017 full year results include the sale of the short term vacation rental business, the tax credit and $26.8 million of net investment income from available for sale securities, while the 2016 full year results include $12.5 million in legal settlement income and $9.2 million of net investment income from available for sale securities.

Fourth Quarter 2017 update includes:

  • Total revenue for 2017 was $21.5 million as compared to $18.7 million in 2016 due to increases in real estate, leasing and timber, partially offset by a decrease in resorts and leisure.
  • Real estate revenue increased to $8.3 million in 2017 as compared to $5.4 million in 2016. This increase was primarily related to the higher volume of lot sales in the Watersound Origins and Breakfast Point communities.
  • Resorts and leisure revenue decreased in 2017 as compared to 2016. This decrease is due primarily to reduced vacation rental inventory based on management's decision to focus on higher yielding homes prior to the sale of the short term vacation rental management business in December 2017. 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.
As of December 31, 2017, the Company owned approximately 814,000 square feet of rentable commercial space, an increase of 35% from prior year period. The Company's overall lease occupancy percentage remained constant at 87% for each of December 31, 2017 and 2016.

Other operating and corporate expenses declined in 2017 as compared to 2016. For the full year 2017, the operating and corporate expenses represented 20.6% of revenue compared to 24.0% in 2016. The Company continues to focus on a cost discipline to support bottom line performance.

As of December 31, 2017, the Company had cash, cash equivalents and investments of $303.4 million, as compared to $416.8 million as of December 31, 2016, a decrease of $113.4 million. During the twelve months ended December 31, 2017, the Company used $147.4 million to repurchase a total of 8,450,294 shares of its common stock. As of December 31, 2017, the Company had approximately 65.9 million shares of its common stock outstanding.

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 both the fourth quarter and full year 2017 and 2016 periods.

Jorge Gonzalez, the Company's President and Chief Executive Officer, said, "We are pleased with our fourth quarter and full year 2017 results and expect positive momentum to continue into 2018. We are implementing our stated business strategy of increasing recurring revenue, focusing on developing scalable residential communities, expanding the scope of clubs and resorts assets, collaboratively working on strategic infrastructure initiatives and working on partnerships and joint ventures, all while maintaining efficient operations, liquidity and balance sheet strength. We built the 138,605 square foot building for our tenant, GKN Aerospace, which is already in the process of creating quality aerospace manufacturing jobs in our area. We completed the sale of the short term vacation rental management business in order to focus on new opportunities, such as our recent announcement of a joint venture for the development of a new hotel project in Panama City Beach to advantageously position ourselves to capitalize on a changing lodging marketplace." Mr. Gonzalez added, "As we look forward to 2018, we expect to start several new projects that have been in the planning stage and therefore we anticipate our capital expenditures to increase commensurately. The new projects are expected to be focused on our commercial leasing, residential development and clubs and resorts assets."
 

coondog

Beach Lover
Apr 27, 2009
153
29
Hard to believe, but yet another quarterly operating loss. For the year, they reported an operating income of $2.3mm; however, $7mm of that came from the resorts/leisure business, and they just sold their rental business, so what replaces those earnings?

2017, Dow, S & P and Nasdaq were up 25%, 19% and 28% respectively, while JOE stock was DOWN 5%.
 
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