Misc St. Joe Company Reports Third Quarter 2019 Results

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  1. Kurt Lischka

    Kurt Lischka Admin Staff Member

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    The St. Joe Company Reports Third Quarter 2019 Results | The St. Joe Company

    Oct. 30, 2019-- The St. Joe Company (NYSE: JOE) (the “Company”) today announced net income for the third quarter of 2019 of $5.7 million, or $0.10 per share, compared with net income of $5.5 million, or $0.09 per share, for the third quarter of 2018. Net income for the third quarter of 2019 reflects an income tax expense of $3.0 million compared to a net income tax benefit of $3.5 million for the third quarter of 2018. Operating income for the third quarter of 2019 improved by approximately $5.5 million as compared to the third quarter of 2018.

    Total revenue for the third quarter of 2019 was $32.8 million as compared to $23.7 million in the third quarter of 2018 due to increases in real estate revenue, hospitality revenue and leasing revenue, partially offset by a decrease in timber revenue.

    Jorge Gonzalez, the Company’s President and Chief Executive Officer, said: “We are nearing one thousand homesites under contract, many of which are currently under site development. Four new hotels, two apartment communities, an assisted living center, a new resort complex and many other projects are under construction. We expect to initiate many more residential, hospitality and commercial leasing projects to continue meeting regional demand. We also expect projects, upon completion, to increase St. Joe’s bottom-line performance.”

    The following information compares the third quarter of 2019 to the third quarter of 2018.

    Real Estate Revenue

    Real estate revenue increased to $13.5 million in 2019 from $6.2 million in 2018. The increase was driven primarily by increased residential homesite sales. The Company sold 94 homesites in the third quarter of 2019 as compared to 14 homesites in the third quarter of 2018 bringing the 2019 nine month volume total to 276 homesites as compared to 157 for the same period in 2018.


    As of September 30, 2019, the Company had 995 residential homesites under contract, expected to result in revenue of approximately $83.0 million over the next several years. As of September 30, 2018, the Company had 638 residential homesites under contract, expected to result in revenue of approximately $65.2 million.

    Hospitality Revenue

    Hospitality revenue increased by $1.9 million in 2019 as compared to 2018 due to an increase in the number of The Clubs by JOE members and membership revenue, an increase in FOOW restaurant revenue, opening of the Camp WaterColor restaurant in March 2019 and additional revenue from the new WaterColor Store that opened in January 2019. This increase was partially offset by a reduction in marina revenue due to the damage sustained by Hurricane Michael. Gross margins increased to 27.1% in 2019 as compared to 23.1% in 2018.

    As of September 30, 2019, the Company had under construction a 255-room Embassy Suites hotel in the Pier Park area of Panama City Beach, Florida, as well as a 75-room boutique inn and new The Clubs by JOE amenities at Camp Creek. In addition, the Company announced plans for a 143-room Hilton Garden Inn hotel to be located near the Northwest Florida Beaches International Airport. The Company intends to operate these new hotels.

    Leasing Revenue

    Leasing revenue increased by approximately $0.4 million in 2019 as compared to the same period in 2018. This increase was partially offset by a $0.4 million reduction in marina slip rental revenue caused by the closure and planned redevelopment of the Company’s marinas. As of September 30, 2019, the Company’s rentable space consisted of approximately 822,000 square feet, which was 92% leased, as compared to approximately 808,000 square feet as of September 30, 2018, which was 89% leased. In addition, the initial 120 apartment units in Pier Park Crossings were completed and are 99% occupied.

    As of September 30, 2019, the Company had under construction eight commercial leasing projects totaling approximately 137,000 square feet of rentable space in addition to a 124-room TownePlace Suites hotel that will be operated by a third party, 107 assisted living / memory care units, a 15,500 square foot Busy Bee branded fuel station and convenience store and two apartment communities consisting of a total of 457 units (120 units complete).

    Timber Revenue

    Timber revenue decreased to $1.3 million in 2019 as compared to $1.8 million in 2018 due to the residual effects of Hurricane Michael.


    Other Operating and Corporate Expenses

    Other operating and corporate expenses of $5.1 million remained essentially flat in 2019 as compared to 2018. The Company continues to manage operating costs to maintain an efficient structure.

    Liquidity

    The Company had cash, cash equivalents and investments of $202.4 million as of September 30, 2019, compared to $240.3 million as of December 31, 2018, a decrease of $37.9 million. During the nine months ended September 30, 2019, the company used approximately $77.7 million for capital expenditures and $18.8 million to repurchase 1,141,529 shares of its common stock. As of September 30, 2019, the Company had approximately 59.5 million shares of its common stock outstanding.
     

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