The St. Joe Company Reports Third Quarter 2014 Results

[Kurt]

The St. Joe Company (NYSE: JOE) today announced a Net Loss for the third quarter of 2014 of $(0.1) million, or $(0.00) per share, compared with Net Income of $4.2 million, or $0.05 per share, for the third quarter of 2013. For the nine months ended September 30, 2014, the Company reported Net Income of $417.6 million, or $4.52 per share, compared to Net Income of $4.4 million, or $0.05 per share, for the same period last year. Third quarter 2014 update includes:

• Total revenue for the third quarter of 2014 was $24.0 million.
• Residential real estate revenue decreased from $10.7 million in the third quarter of 2013 to $3.7 million for the third quarter of 2014 due to a decrease in finished lot availability and the timing of a sixty-two homesite sale to a homebuilder during the third quarter of 2013. During the third quarter of 2014, there were no significant commercial real estate sales as compared to $2.1 million in the third quarter of 2013.
• Resorts, leisure and leasing revenue increased $2.7 million, or 17%, during the third quarter of 2014 to $19.0 million as compared to $16.3 million in the third quarter of 2013. The increase includes $1.7 million of incremental resorts and leisure revenues primarily due to an increase in room nights rented and $1.0 million of incremental leasing revenue from leases in the Pier Park North joint venture as retail stores become occupied by tenants.
• Timber sales decreased to $1.1 million during the third quarter of 2014 as compared to $7.7 million in the third quarter of 2013 due to the AgReserves sale which closed in March 2014. Tons delivered were less than 80,000 during the third quarter as compared to 373,000 during the third quarter of 2013.

• As of September 30, 2014, the Company had cash, cash equivalents and investments of $657.6 million as compared to $168.9 million as of December 31, 2013.

Jeffrey C. Keil, the Company's President and Interim Chief Executive Officer, said "We are pleased with the progress in the Company's sector plan entitlement process. Our team has been working closely with the local community through the entire process." Mr. Keil added, "We look forward to continuing to work with the local community and the state agencies to pursue the plan's approval."

 

[coondog]

The St. Joe Company (NYSE: JOE) today announced a Net Loss for the third quarter of 2014 of $(0.1) million, or $(0.00) per share, compared with Net Income of $4.2 million, or $0.05 per share, for the third quarter of 2013. For the nine months ended September 30, 2014, the Company reported Net Income of $417.6 million, or $4.52 per share, compared to Net Income of $4.4 million, or $0.05 per share, for the same period last year. Third quarter 2014 update includes:

• Total revenue for the third quarter of 2014 was $24.0 million.
• Residential real estate revenue decreased from $10.7 million in the third quarter of 2013 to $3.7 million for the third quarter of 2014 due to a decrease in finished lot availability and the timing of a sixty-two homesite sale to a homebuilder during the third quarter of 2013. During the third quarter of 2014, there were no significant commercial real estate sales as compared to $2.1 million in the third quarter of 2013.
• Resorts, leisure and leasing revenue increased $2.7 million, or 17%, during the third quarter of 2014 to $19.0 million as compared to $16.3 million in the third quarter of 2013. The increase includes $1.7 million of incremental resorts and leisure revenues primarily due to an increase in room nights rented and $1.0 million of incremental leasing revenue from leases in the Pier Park North joint venture as retail stores become occupied by tenants.
• Timber sales decreased to $1.1 million during the third quarter of 2014 as compared to $7.7 million in the third quarter of 2013 due to the AgReserves sale which closed in March 2014. Tons delivered were less than 80,000 during the third quarter as compared to 373,000 during the third quarter of 2013.

• As of September 30, 2014, the Company had cash, cash equivalents and investments of $657.6 million as compared to $168.9 million as of December 31, 2013.

Jeffrey C. Keil, the Company's President and Interim Chief Executive Officer, said "We are pleased with the progress in the Company's sector plan entitlement process. Our team has been working closely with the local community through the entire process." Mr. Keil added, "We look forward to continuing to work with the local community and the state agencies to pursue the plan's approval."

JOE continues to be unable to generate positive cash flow on an operating basis, with 3rd quarter revenues declining by nearly 35% on a year over year basis. This remains consistent with a number of years of poor operating performances, with the only positive momentum generated by the continued liquidation of its real estate assets. Their business plans seem to change around every 18 months or so, and the new hope appears to be to develop out Watersound North in order to replicate the success of The Villages development north of Orlando. Unfortunately, this vision seems to assume a "build it and they will come" view, which discounts the significant differences between weather patterns in the panhandle, versus those in Orlando during the winter months.

 

[bentley williams]

JOE continues to be unable to generate positive cash flow on an operating basis, with 3rd quarter revenues declining by nearly 35% on a year over year basis. This remains consistent with a number of years of poor operating performances, with the only positive momentum generated by the continued liquidation of its real estate assets. Their business plans seem to change around every 18 months or so, and the new hope appears to be to develop out Watersound North in order to replicate the success of The Villages development north of Orlando. Unfortunately, this vision seems to assume a "build it and they will come" view, which discounts the significant differences between weather patterns in the panhandle, versus those in Orlando during the winter months.

It hasn't been called Watersound north on a long time. It was changed to simply Watersound and is now Watersound Origins. It is no way comparable to the Villages which has over 5,000 homes. Head east to Bay County and check out the plans at Breakfast Point and report back.

You can't slow people from moving to Florida. South Walton is a whole other animal. An island with limited land that is becoming more and more exclusive.

Anyone notice St. getting into more commercial real estate and vacation rental management?

 

[steel1man]

That's why I'm Bullish and searching
You can't slow people from moving to Florida. South Walton is a whole other animal. An island with limited land that is becoming more and more exclusive.

 

[coondog]

It hasn't been called Watersound north on a long time. It was changed to simply Watersound and is now Watersound Origins. It is no way comparable to the Villages which has over 5,000 homes. Head east to Bay County and check out the plans at Breakfast Point and report back.

You can't slow people from moving to Florida. South Walton is a whole other animal. An island with limited land that is becoming more and more exclusive.

Anyone notice St. getting into more commercial real estate and vacation rental management?

And four yeas ago, they were all about developing the land around the new airport. Then it went to developing the Port of St. Joe. Their history speaks for itself. Earnings were sold bad, they didnt even announce and analyst call for the quarter. Stock is down 5% at the open, and the gang that cannot shoot straight continues along their path. When was the last time they actually earned a proft on OPERATING earnings, versus asset liquidations? Stock is down over 20% since the first quarter liquidaton sale. Street places little value on managements ability to execute based on their track record. And, management has specifically referenced Villages in their efforts to develop Watersound North. They think they can draw people in on the same concept, yet ignore the tremendously different weather patterns, and managements lack of abiliy to achive historical business plan objectives.