Other The St. Joe Company Reports First Quarter 2017 Results

[Kurt]

The St. Joe Company (NYSE:JOE) (the "Company") today announced Net Income for the first quarter of 2017 of $4.4 million, or $0.06 per share, compared with Net Income of $8.7 million, or $0.12 per share, for the first quarter of 2016.

First quarter update includes:

• Total revenue for the quarter was $13.2 million as compared to $20.3 million in the first quarter of 2016 primarily due to a reduction in real estate revenue. The Company's real estate revenue tends to vary from period to period depending on a variety of factors including the communities where homesites are available to be sold, as prices vary significantly by community. In addition, the Company's recent focus has been on homebuilders who generally purchase more homesites in a single transaction but tend to buy on a more sporadic basis. The first quarter decrease in real estate revenue was due to the timing of builder contractual obligations and the timing of development of finished lots in the primary residential communities. The Company is investing in the development of residential lots in its WaterSound Origins, Breakfast Point and SouthWood communities. The Company anticipates that a majority of the lots currently under development will be available for sale later in 2017. In addition, the first quarter of 2016 included a $3.4 million unimproved land sale with a gross profit of $3.3 million due to a low historic basis.

• The Company's leasing segment includes approximately 604,000 of net rentable square feet which was 86% leased as of March 31, 2017, compared to approximately 589,000 of net rentable square feet which was 84% leased as of March 31, 2016. Subsequent to the first quarter of 2017, the Company completed the purchase of two office buildings in Panama City Beach, Florida totaling over 67,000 rentable square feet. This transaction is reflective of the Company's strategy to increase the size and scope of its leasing portfolio while choosing to sell commercial property selectively.

• Investment income for the three months ended March 31, 2017 totaled $10.4 million as compared to $2.7 million for the three months ended March 31, 2016. The increase of $7.7 million in the first quarter of 2017 was due to increased interest income and dividend income as a result of changes in the Company's investment portfolio and a sale of investments at a realized gain of $3.1 million. Other income for the first quarter of 2017 totaled $4.0 million as compared to $13.0 million in the first quarter of 2016. Other income for the first quarter of 2017 included $3.5 million from an insurance settlement. By comparison, the first quarter of 2016 included $12.5 million from settlement of claims related to the Deepwater Horizon oil spill.

• As of March 31, 2017, the Company had cash, cash equivalents and investments of $392.6 million, as compared to $416.8 million as of December 31, 2016, a decrease of $24.2 million. The decrease was related to the $34.2 million of cash used for stock repurchases, offset by net receipts from the Company's operations and other activities.

Jorge Gonzalez, the Company's President and Chief Executive Officer, said "We remain focused on our previously discussed strategy of increasing the size and scope of our leasing portfolio with the acquisition of the two Beckrich office buildings adding over 67,000 square feet of leasable space to our existing portfolio." Mr. Gonzalez added, "We believe that the recent announcements of GKN Aerospace choosing to locate in VentureCrossings and our joint venture with HomeCorp for 240 apartment units, as well as the other investments we are making in our club and resort operations are all consistent with our plan to create long term value for our shareholders."

 

[coondog]

Massive drop in Revenues period over period, with a 4.9mm loss from operations, versus a .9mm loss a year ago, despite their continual squeeze on labor costs. The gang that can't shoot straight continues to miss the target.