The St. Joe Company (NYSE:JOE) (the “Company”) today announced
Net Income for the fourth quarter of 2016 of $2.7 million, or $0.04
per share, compared with Net Loss of $(2.5) million, or $(0.03) per
share, for the fourth quarter of 2015. For the full year ended
December 31, 2016, the Company reported Net Income of $15.9
million, or $0.21 per share compared to Net Loss of $(1.7) million,
or $(0.02) per share for the full year 2015.
Total revenue for the quarter was $18.7 million as compared to
$21.1 million in the fourth quarter of 2015 due to a reduction in
real estate revenue partially offset by an increase in resorts and
leisure revenue, leasing revenue and timber revenue. For the full
year 2016, total revenue was $95.7 million compared to $103.9
million for the full year 2015 due to reduced real estate revenue
and timber revenue partially offset by an increase in resorts and
leisure revenue and leasing revenue.
Fourth Quarter 2016 highlights include:
- While revenue for the fourth quarter of
2016 was $2.4 million lower than the fourth quarter of 2015, Net
Income increased by $5.2 million due to lower operating and
corporate expenses and an increase in investment income.
- Real estate revenue decreased to $5.4
million in the fourth quarter of 2016 as compared to $9.4 million
in the fourth quarter of 2015. This decrease was primarily related
to timing of development of finished lots in the communities of
Watersound Origins and Breakfast Point as well as lower volume of
non-strategic commercial land sales.
- Resorts and leisure revenue increased
approximately $0.9 million, or 10%, in the fourth quarter of 2016
as compared to the fourth quarter of 2015. The increase was broad
based including an increase in average room rates in both the
WaterColor Inn and in the vacation rental program as well as an
increase in total membership, growth in rounds played at the golf
courses, strong showing in the food and beverage component and
increased membership revenue from the St. Joe Club & Resorts
private membership club.
- Timber sales increased to $1.2 million
during the fourth quarter of 2016 as compared to $0.7 million in
the fourth quarter of 2015 due to an increase in tons sold.
- Leasing revenue increased approximately
$0.2 million, or 11%, in the fourth quarter of 2016 as compared to
fourth quarter of 2015. As of December 31, 2016, the Company owned
approximately 604,000 square feet of rentable commercial space
which is 87% leased. Of this amount, the Pier Park North retail
center has approximately 320,000 square feet constructed and is 93%
leased.
- As of December 31, 2016, the Company
had cash, cash equivalents and investments of $416.8 million, as
compared to $404.0 million as of December 31, 2015, an increase of
$12.8 million.
Jorge Gonzalez, the Company’s President and Chief Executive
Officer, said, “Our ‘open for business’ strategy and focus on
maximizing the value of our assets while maintaining a low fixed
expense structure is gaining traction. The recent announcement of
GKN Aerospace locating a new world-class manufacturing facility in
VentureCrossings® Enterprise Centre in Bay County is an example of
both an investment in generating recurring income and in creating
quality aerospace manufacturing jobs with a high economic
multiplier effect that we believe will enhance long term value of
the area and the Company.” Mr. Gonzalez added, “With a strong
balance sheet, our plan for 2017 is to increase capital
expenditures particularly on projects that we believe will provide
recurring revenue and asset value while being selective about
one-off sales of our land holdings.”
FINANCIAL DATA Consolidated Results
($ in millions except share and per
share amounts)
Quarter
Ended
December
31,
Year
Ended
December
31,
2016
2015
2016
2015
Revenue
Real estate revenue $5.4 $9.4 $23.4
$33.7 Resorts and leisure revenue 9.7 8.8 57.3
54.5 Leasing revenue 2.4 2.2 9.8
9.0 Timber revenue
1.2
0.7
5.2
6.7
Total revenue
$18.7
$21.1
$95.7
$103.9
Expenses
Cost of real estate revenue 1.3 4.2 8.0
16.4 Cost of resorts and leisure revenue 9.8 8.8
50.2 47.1 Cost of leasing revenue 0.9
0.8 3.1 2.8 Cost of timber revenue 0.2
0.2 0.8 0.8 Other operating and corporate expenses
5.3 8.7 23.1 33.4 Depreciation,
depletion and amortization
2.1
2.2
8.6
9.5
Total expenses
19.6
24.9
93.8
110.0
Operating (loss) income
(0.9)
(3.8)
1.9
(6.1)
Other income (loss)
5.5
(0.1)
20.7
5.0
Income (loss) from operations before equity in income
from unconsolidated affiliates and income taxes 4.6
(3.9) 22.6 (1.1) Income tax expense (benefit)
2.0
(1.2)
7.1
0.8
Net income (loss) 2.6 (2.7) 15.5 (1.9)
Net loss attributable to non-controlling interest
0.1
0.2
0.4
0.2
Net income (loss) attributable to the Company
$2.7
$(2.5)
$15.9
$(1.7)
Net income (loss) per share attributable to the Company
$0.04
$(0.03)
$0.21
$(0.02)
Weighted average shares outstanding 74,342,826
75,329,557 74,457,541 87,827,869
Revenue
Detail ($ in millions)
Quarter
Ended
December
31,
Year
Ended
December
31,
2016
2015
2016
2015
Revenue:
Real estate revenue
Residential $3.6 $6.9 $19.5
$21.1 Commercial 1.5 2.5 2.1 7.2
Other real estate revenue
0.3
--
1.8
5.4
Total real estate revenue 5.4 9.4 23.4
33.7 Resorts and leisure revenue 9.7 8.8 57.3 54.5 Leasing
revenue 2.4 2.2 9.8 9.0 Timber revenue
1.2
0.7
5.2
6.7
Total revenue
$18.7
$21.1
$95.7
$103.9
Summary Balance Sheet
($ in millions)
December 31,
2016
December 31,
2015
Assets Investment in real
estate, net $314.6 $313.6 Cash and cash equivalents
241.1 212.8 Investments 175.7 191.2
Restricted investments 5.6 7.1 Income tax receivable
27.1 2.3 Claim settlement receivable 7.8
-- Other assets 38.4 36.8 Property and
equipment, net 9.0 10.1 Investments held by special
purpose entities
208.6
208.8
Total assets
$1,027.9
$982.7
Liabilities and Equity
Debt $55.0 $54.5 Other
liabilities 41.0 41.9 Deferred tax liabilities
68.8 36.8 Senior Notes held by special purpose entity
176.3
176.1
Total liabilities
341.1
309.3
Total equity
686.8
673.4
Total liabilities and equity
$1,027.9
$982.7
Debt Schedule ($ in millions)
December 31,
2016
December 31,
2015
Pier Park North JV
$47.5 $47.5 Community Development District debt
7.5
7.0
Total debt
$55.0
$54.5
Other Operating and Corporate
Expenses
($ in millions)
Quarter
Ended
December
31,
Year
Ended
December
31,
2016
2015
2016
2015
Employee costs $1.8 $3.8 $7.1 $13.8
401(k) contribution / pension costs -- 0.1 1.4
1.3 Non-cash stock compensation costs -- --
0.1 0.2 Property taxes and insurance 1.3
1.4 5.6 5.7 Professional fees 1.2
1.8 5.0 7.4 Marketing and owner association
costs 0.5 0.4 1.5 1.4 Occupancy,
repairs and maintenance 0.2 0.6 0.7 1.3
Other
0.3
0.6
1.7
2.3
Total other operating and corporate expenses
$5.3
$8.7
$23.1
$33.4
Important Notice Regarding
Forward-Looking Statements
This press release includes forward-looking statements,
including statements regarding the Company’s planned 2017 increase
in capital expenditures and its belief that the increase will
provide recurring revenue and asset value; selective one-off sales
of land holdings; the Company’s belief that the GKN Aerospace
facility will enhance long term value of the Bay County area and
the Company; and the Company’s expectations regarding its business
strategy, future operations and pursuit of value creation for its
shareholders. The Company wishes to caution readers that certain
important factors may have affected and could in the future affect
the Company’s actual results and could cause the Company’s actual
results for subsequent periods to differ materially from those
expressed in any forward-looking statement made by or on behalf of
the Company, including (1) changes in the Company’s strategic
objectives and its ability to implement such strategic objectives;
(2) economic or other conditions that affect the future prospects
for the Southeastern region of the United States and the demand for
the Company’s products, including a slowing of the population
growth in Florida, inflation, or unemployment rates or declines in
consumer confidence or the demand for, or the prices of, housing;
(3) any potential negative impact of the Company’s longer-term
property development strategy, including losses and negative cash
flows for an extended period of time if the Company continues with
the self-development of its entitlements; (4) the impact of natural
or man-made disasters or weather conditions, including hurricanes
and other severe weather conditions, on the Company’s business; (5)
the Company’s ability to capitalize on its leasing operations in
the Pier Park North joint venture; (6) the Company’s ability to
capitalize on opportunities relating to its development of mixed
use, active adult, and other communities, including its ability to
successfully and timely obtain land-use entitlements and
construction financing, maintain compliance with state law
requirements and address issues that arise in connection with the
use and development of its land, including the permits required for
the mixed use, active adult, and other communities; (7) the impact
of market volatility on the value of the Company’s investments,
including potential unrealized losses or the realization of losses
on its investments; (8) the Company’s ability to enter into a lease
with GKN Aerospace on favorable terms or at all; and (9) the
Company’s ability to effectively deploy and invest its assets,
including available-for-sale securities; as well as, the cautionary
statements and risk factor disclosures contained in the Company’s
Securities and Exchange Commission filings including the Company’s
Annual Report on Form 10-K filed with the Commission on March 2,
2016 as updated by subsequent Quarterly Reports on Form 10-Qs and
other current report filings.
About The St. Joe
Company
The St. Joe Company together with its consolidated subsidiaries
is a real estate development, asset management and operating
company concentrated primarily between Tallahassee and Destin,
Florida. More information about the Company can be found on its
website at www.joe.com.
© 2017, The St. Joe Company. “St. Joe®”, “JOE®”, the “Taking
Flight” Design®, “St. Joe (and Taking Flight Design)®”, and
“VentureCrossings®” are registered service marks of The St.
Joe Company.
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version on businesswire.com: http://www.businesswire.com/news/home/20170302006356/en/
St. JoeInvestor Relations Contact:Marek Bakun,
1-866-417-7132Chief Financial OfficerMarek.Bakun@Joe.Com
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