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The St. Joe Company Reports Second Quarter 2015 Results

Discussion in 'Real Estate' started by kurt, Aug 6, 2015.

  1. kurt

    kurt Admin Staff Member

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    The St. Joe Company (NYSE: JOE) (the "Company") today announced Net Loss for the second quarter of 2015 of ($0.2) million, or $0.00 per share, compared with Net Income of $14.6 million, or $0.16 per share, for the second quarter of 2014.

    The RiverTown sale accounted for $43.6 million of revenue and $26.0 million of Net Income in the second quarter of 2014. On June 30, 2015, the Company received the remaining portion of the $19.6 million purchase money note related to the RiverTown sale.

    For the six months ended June 30, 2015, the Company reported Net Loss of $(2.0) million, or $(0.02) per share compared to Net Income of $417.6 million, or $4.52 per share for the same period last year. The 2014 earnings include the Company's AgReserves and RiverTown transactions.

    As previously announced, the second quarter results include certain amounts related to the ongoing SEC investigation. The second quarter accrual of $7.4 million includes a reserve of $3.5 million established for potential settlement costs and $3.9 million related to legal expenses for which the Company has received a reservation of rights from the insurer.
    Second Quarter 2015 update includes:


    • Total revenue for the quarter was $37.8 million as compared to $24.6 million, excluding the $43.6 million RiverTown Sale, in the second quarter of 2014.
    • Excluding the RiverTown sale in 2014, real estate sales increased from $5.3 million in the second quarter of 2014 to $14.0 million in the second quarter of 2015. While residential real estate revenue decreased from $4.2 million in the second quarter of 2014 to $4.0 million in the second quarter of 2015, gross margins increased from 40.5% for the three months ended June 30, 2014 to 52.5% in for the three months ended June 30, 2015. The increase in gross margin is primarily related to sales mix and lot price increases. Commercial real estate sales increased from $1.0 million in the second quarter of 2014 to $4.7 million in the second quarter of 2015. The majority of the revenue in the quarter is related to a 6.5 acre non-strategic land parcel sale. In addition, the Company completed a $5.3 million rural land transaction.
    • Resorts and leisure revenue increased $2.8 million, or 17%, during the three months ended June 30, 2015, as compared to the second quarter of 2014. The increase was primarily due to additional homes in the Company's vacation rental business and increased membership revenues since the launch of St. Joe Club & Resorts in 2014.
    • Leasing operations increased $0.5 million, or 29%, during the second quarter of 2015, as compared to the second quarter of 2014. The increase is primarily related to the increase in lease revenue in the Pier Park North joint venture.
    • Timber sales increased to $2.3 million during the second quarter of 2015 as compared to $1.1 million in the second quarter of 2014 due to tons delivered. Tons delivered were approximately 125,000 during the second quarter of 2015 as compared to approximately 60,000 tons during the second quarter of 2014. Gross margins increased during the second quarter of 2015 to 87%, as compared to 82% during the second quarter of 2014.
    • Investment income from the Company's available-for-sale securities for the second quarter of 2015 was $2.8 million as compared to $1.6 million during the second quarter of 2014.
    • As of June 30, 2015, the Company had cash, cash equivalents and investments of $713.5 million, as compared to $671.4 million as of December 31, 2014.


    Jeffrey C. Keil, the Company's President and Interim Chief Executive Officer, said "We are pleased to have the Bay-Walton County Sector Plan adopted with overwhelming support." Mr. Keil added, "We are in position to offer a way of life that will appeal to people considering Florida for retirement. It's a really significant opportunity for St. Joe."
     

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