St. Joe Company Reports First Quarter 2015 Results

[Kurt]

The St. Joe Company (NYSE: JOE) (the "Company") today announced a Net Loss for the first quarter of 2015 of $(1.7) million, or $(0.02) per share, compared with Net Income of $403.0 million, or $4.37 per share, for the first quarter of 2014. During the first quarter of 2014, the Company sold approximately 380,000 acres of the Company's non-strategic timberlands and rural land to AgReserves, Inc (the "AgReserves Sale"). As a result of this sale, the Company recorded earnings of $511.1 million before income taxes in the first quarter of 2014.

Revenue for the first quarter of 2015 was $17.1 million as compared to $23.2 million, excluding the AgReserves Sale, in the first quarter of 2014. The decrease in revenue is primarily due to a $6.3 million decrease in timber revenue as a result of the AgReserves Sale. The Company's first quarter revenue was generated from $5.4 million of residential real estate sales, $7.8 million from resorts and leisure operations, $2.1 million from leasing operations and $1.8 million from timber sales.

During the first quarter of 2015, the Company's revenue from leasing operations increased 75% to $2.1 million, as compared to $1.2 million in the first quarter in 2014, primarily due to the Company's consolidated joint venture, Pier Park North. Stores at Pier Park North opened throughout 2014 as construction progressed. Pier Park North is currently over 80% leased.

Investment income from the Company's available-for-sale securities for the first quarter of 2015 was $2.9 million, as compared to $0.2 million in the first quarter of 2014.

As of March 31, 2015, the Company had cash, cash equivalents and investments of $675.1 million, as compared to $671.4 million as of December 31, 2014.

 

[coondog]

The St. Joe Company (NYSE: JOE) (the "Company") today announced a Net Loss for the first quarter of 2015 of $(1.7) million, or $(0.02) per share, compared with Net Income of $403.0 million, or $4.37 per share, for the first quarter of 2014. During the first quarter of 2014, the Company sold approximately 380,000 acres of the Company's non-strategic timberlands and rural land to AgReserves, Inc (the "AgReserves Sale"). As a result of this sale, the Company recorded earnings of $511.1 million before income taxes in the first quarter of 2014.

Revenue for the first quarter of 2015 was $17.1 million as compared to $23.2 million, excluding the AgReserves Sale, in the first quarter of 2014. The decrease in revenue is primarily due to a $6.3 million decrease in timber revenue as a result of the AgReserves Sale. The Company's first quarter revenue was generated from $5.4 million of residential real estate sales, $7.8 million from resorts and leisure operations, $2.1 million from leasing operations and $1.8 million from timber sales.

During the first quarter of 2015, the Company's revenue from leasing operations increased 75% to $2.1 million, as compared to $1.2 million in the first quarter in 2014, primarily due to the Company's consolidated joint venture, Pier Park North. Stores at Pier Park North opened throughout 2014 as construction progressed. Pier Park North is currently over 80% leased.

Investment income from the Company's available-for-sale securities for the first quarter of 2015 was $2.9 million, as compared to $0.2 million in the first quarter of 2014.

As of March 31, 2015, the Company had cash, cash equivalents and investments of $675.1 million, as compared to $671.4 million as of December 31, 2014.

Yet another quarterly operating loss for JOE. Best I can recall, they have had one or two operating profits over the past six or seven years, and since last summer alone, they have lost nearly $1 billion of shareholder value. Highlights:

• Their "resort" business lost $2.9mm for the quarter.

• Hotel and vacation rental business operated at Gross Profit Margin (Loss) of (20%).

• They sold 57 lots in the first quarter of 2015 with a gross profit of $2.3mm (44% margin). Yet, same period last year, they sold 39 lots with a gross profit of $2.8mm (51% margin).

• 49 of the 57 lots sold during the first quarter of 2015 generated a gross profit of $600,000, or roughly $12,000 per lot. On a net basis, they appear to be selling these lots at a loss despite the massive impairment charge they took several years ago, and the general market recovery.

 

[coondog]

Similar to wise buying decisions, exiting certain underperformers at the right time helps maximize portfolio returns. Selling off losers can be difficult, but if both the share price and estimates are falling, it could be time to get rid of the security before more losses hit your portfolio.
One such stock that you may want to consider dropping is The St. Joe Company(JOE - Analyst Report), which has witnessed a significant price decline in the past four weeks, and it has seen negative earnings estimate revisions for the current quarter and the current year. A Zacks Rank #4 (Sell) further confirms weakness in JOE.A key reason for this move has been the negative trend in earnings estimate revisions. For the full year, we have seen 1 estimate moving down in the past 30 days, compared with no upward revision. This trend has caused the consensus estimate to trend lower, going from a gain of 12 cents a share a month ago to its current level of a loss of 1 cent.Also, for the current quarter, The St. Joe Company has seen 1 downward estimate revision versus no revision in the opposite direction, dragging the consensus estimate down to 1 cent a share from 5 cents over the past 30 days.The stock also has seen some pretty dismal trading lately, as the share price has dropped 10.6% in the past month.So it may not be a good decision to keep this stock in your portfolio anymore, at least if you don’t have a long time horizon to wait.If you are still interested in the real estate sector, you may instead consider a better-ranked stock - Alexander & Baldwin, Inc. (ALEX - Snapshot Report). The stock currently holds a Zacks Rank #1 (Strong Buy) and may be better selection at this time.