The St. Joe Company Reports Fourth Quarter and Full Year 2021 Results and Increases Quarterly Dividend By 25% | The St. Joe Company
Revenue for the full year 2021 increased by 66% to $267.0 million compared to $160.5 million in 2020 Net Income for the full year 2021 increased by 65% to $74.5 million compared to $45.2 million in 2020 Net Cash Provided by Operating Activities for the full year 2021 increased by 200% to $111.8
February 23, 2022 at 4:10 PM EST
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- Revenue for the full year 2021 increased by 66% to $267.0 million compared to $160.5 million in 2020
- Net Income for the full year 2021 increased by 65% to $74.5 million compared to $45.2 million in 2020
- Net Cash Provided by Operating Activities for the full year 2021 increased by 200% to $111.8 million compared to $37.3 million in 2020
Revenue for the fourth quarter of 2021 increased by 56% to $99.5 million, as compared to $63.9 million for the fourth quarter of 2020. Revenue growth includes a 70% increase in leasing revenue, a 59% increase in real estate revenue and a 37% increase in hospitality revenue. Operating income increased by 60% to $42.0 million for the three months ended December 31, 2021, as compared to $26.3 million for the three months ended December 31, 2020. Net income for the fourth quarter of 2021 increased by 61% to $31.9 million, or $0.54 per share, compared to net income of $19.8 million, or $0.34 per share, for the same period in 2020.
Revenue for the full year ended December 31, 2021, increased by 66% to $267.0 million compared to $160.5 million in 2020. Net income for the full year 2021 increased by 65% to $74.5 million, or $1.27 per share, compared to net income of $45.2 million, or $0.77 per share, for the full year 2020.
Net Cash Provided by Operating Activities for the three months ended December 31, 2021, increased by 216% to $46.7 million, compared to $14.8 million for the same period in 2020. For the full year ended December 31, 2021, Net Cash Provided by Operating Activities increased by 200% to $111.8 million, as compared to $37.3 million for the same period in 2020. 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 December 31, 2021, increased by 118% to $65.2 million, compared to $29.9 million for the same period in 2020. For the full year ended December 31, 2021, CGFDI increased by 116% to $154.5 million, as compared to $71.5 million for the same period in 2020.
On February 23, 2022, the Board of Directors declared a cash dividend of $0.10 per share on the Company’s common stock, a 25% increase from the December 2021 dividend payment, payable on March 29, 2022, to shareholders of record as of the close of business on March 7, 2022. In addition, the Board of Directors authorized additional stock repurchase authority of $22.6 million under the Company’s existing Stock Repurchase Program, bringing the total repurchase authority to $100.0 million.
Jorge Gonzalez, the Company’s President and Chief Executive Officer, said, “In 2021, our revenue grew by 66% to $267.0 million, and our net income grew by 65% to $74.5 million while we continued to maintain low corporate expenses. As revenue and net income have grown over the last several years, our corporate expenses as a percentage of revenue have been decreasing. In 2021, our corporate expenses were approximately 9% of revenue, compared to 24% in 2016 when our revenue was approximately $96 million. We believe we can continue to grow and scale up while maintaining efficient operations, which is important since we believe that we have just started to scratch the surface of the potential of our land holdings. Despite a record year in 2021, we have over 20,000 homesites in our development pipeline with 2,000 homesites under contract as of December 31, 2021. We also continue to see more interest from homebuilders from outside of the market seeking to establish operations in our communities.”
Mr. Gonzalez continued, “With the increased flexibility in the workplace where employees can work from anywhere, more permanent residents are choosing to move to our area from broader parts of the country, including the West Coast, Midwest and Northeast. Northwest Florida is no longer just a vacation rental/second home region for the Southeastern United States. In 2021, we developed and sold more homesites and sold more club memberships than ever in our history, which is directly attributable to the growth our area is experiencing. This increased demand is across a wide range of price points, locations and lifestyles, so we seek to continue to develop and position our residential communities to capture this broad range of demand. We believe our scale of ownership of entitled land gives us a unique competitive advantage to meet this growth and demand from new residents moving to our area.”
Mr. Gonzalez concluded, “In addition to the outstanding performance in our residential segment, our hospitality and commercial segments are also experiencing growth and increased demand. As of December 31, 2021, we had completed or had under construction 1,436 multi-family and senior living units and had 1,177 operational and managed hotel rooms or rooms under construction, with even more in the planning, engineering or permitting stages. Many of our multi-family units are being occupied almost immediately after they are completed and our hotels are experiencing record occupancy and rates. As more permanent residents move to our area, demand from new businesses that desire to be in our commercial town centers, commerce parks and other similar properties, continues to increase. In 2021, we executed one of the highest numbers of new leases for any one year in our history. As of December 31, 2021, we had nearly one million square feet of rentable commercial space with additional projects in construction and planning to meet the growing demand.”
Real Estate
Real estate revenue increased by 59% to $73.0 million in the fourth quarter of 2021, as compared to $45.8 million in the fourth quarter of 2020. The Company sold 310 homesites at an average price of approximately $208,000, with gross margin of 63%, in the fourth quarter of 2021, as compared to 206 homesites at an average price of approximately $189,000, with gross margin of 67%, in the fourth quarter of 2020. The difference in the average sales price, number of homesite closings and gross margin was due to a mix of sales in different communities.
As of December 31, 2021, the Company had 2,000 residential homesites under contract with 13 different homebuilders, which are expected to result in revenue of approximately $80,000 per base homesite, excluding applicable true-ups, for a total of $158.9 million over the next several years, as compared to 1,269 residential homesites under contract for $115.0 million as of December 31, 2020.
In the Latitude Margaritaville Watersound unconsolidated joint venture development, planned for 3,500 residential homes, contracts were executed on the initial releases of homes. During 2021, there were 435 sale contracts executed and 47 home sale transactions were completed. The remaining 388 homes under contract as of December 31, 2021, are expected to result in a sales value of approximately $171.0 million at closing of the homes upon completion of construction. This sales momentum continued into 2022 with an additional 50 sale contracts executed through January 31, 2022.
Hospitality
Hospitality revenue increased by 37% to $17.3 million in the fourth quarter of 2021 as compared to $12.6 million in the fourth quarter of 2020. Hospitality revenue continues to benefit from the growth of the Watersound Club membership program and increased visitor activity. The Company added 97 new members in the fourth quarter of 2021 for a total of 692 new members for the full year 2021, as compared to 289 new members for the full year 2020. As of December 31, 2021, the Company owned (individually by the Company or through an unconsolidated joint venture) and/or managed five hotels with 393 operational hotel rooms, as compared to 250 hotel rooms as of December 31, 2020. In addition, there are six new hotels under construction planned for 777 hotel rooms, of which 546 rooms are expected to become operational in 2022. Homewood Suites by Hilton hotel at the Panama City Beach Sports Complex is scheduled to open this spring. Camp Creek Inn, with expansive adjacent club amenities, and The Lodge 30A are scheduled to open this summer. Embassy Suites by Hilton in the Pier Park area of Panama City Beach and Hotel Indigo in Panama City’s waterfront district will follow. In addition, the Watercolor Inn is expanding with seven new suites and new amenities. When complete, operational hotel rooms and suites will increase to 1,177. The Bay Point Marina, with 127 wet slips, and Port St. Joe Marina, with 252 dry slips and 48 wet slips, plan to begin leasing operations this spring. The Company intends to manage these new hotels, amenities and marinas.
Leasing
Leasing revenue from commercial, retail, multi-family, senior living, self-storage and other properties increased by approximately 70% to $8.0 million in the fourth quarter of 2021, compared to the same period in 2020. As of December 31, 2021, the Company, through consolidated and unconsolidated joint ventures, had 898 completed multi-family and senior living units with an additional 538 units under construction.
Rentable space as of December 31, 2021, consisted of approximately 985,000 square feet, of which approximately 857,000, or 87%, was leased, compared to approximately 908,000 square feet as of December 31, 2020, of which approximately 774,000, or 85%, was leased. The Company has an additional 65,000 square feet of rentable space under construction.
Corporate and Other Operating Expenses
The Company’s corporate and other operating expenses were roughly flat at $23.0 million or 9% of revenue for the full year 2021, versus 14% of revenue for the full year 2020.
Liquidity
In the fourth quarter of 2021, the Company invested $60.2 million in capital expenditures, which when combined with the $140.6 million invested in the first three quarters of 2021, totaled $200.8 million for the full year ended December 31, 2021. In addition, the Company paid $18.8 million in cash dividends in 2021. As of December 31, 2021, the Company had $159.6 million in cash, cash equivalents and other liquid investments as compared to $157.5 million as of December 31, 2020.
Additional Information and Where to Find It
Additional information with respect to the Company’s results for the full year 2021 will be available in a Form 10-K that will be filed with the Securities and Exchange Commission (“SEC”) and can be found at www.joe.com and at the SEC’s website www.sec.gov.