Stocks On Move: The St. Joe Company (NYSE: JOE)

The St. Joe Company (NYSE: JOE) (the “Company”) newly declared net income for the 3rd-quarter of 2k19 of $5.70M, or $0.100 for each share, contrast with net income of $5.50M, or $0.090 for each share, for the 3rd-quarter of 2k18. Net income for the 3rd-quarter of 2k19 reflects an income tax cost of $3.00M in contrast to a net income tax benefit of $3.50M for the 3rd-quarter of 2k18. Operating income for the 3rd-quarter of 2k19 improved by about $5.50M in contrast to the 3rd-quarter of 2k18.

Total revenue for the 3rd-quarter of 2k19 was $32.80M in a contrast to $23.70M in the 3rd-quarter of 2k18 because of inclines in real estate revenue, hospitality revenue, and leasing revenue, partially offset by a decline 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 presently 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 incline St. Joe’s bottom-line performance.”

The following information compares the 3rd-quarter of 2k19 to the 3rd-quarter of 2k18.

Real Estate Revenue

Real estate revenue increased to $13.50M in 2k19 from $6.20M in 2k18. The incline was driven mainly by increased residential homesite sales. The Company sold 94.00 homesites in the 3rd-quarter of 2k19 as a contrast to 14.0 homesites in the 3rd-quarter of 2k18 bringing the 2k19 nine-month volume total to 276.0 homesites as a contrast to 157.00 for a similar duration in 2k18.

As of September 30, 2k19, the Company had 995.00 residential homesites under contract, expected to result in revenue of about $83.00M over the next several years. As of September 30, 2k18, the Company had 638.00 residential homesites under contract, expected to result in revenue of about $65.20M.

Hospitality Revenue

Hospitality revenue increased by $1.90M in 2k19 as a contrast to 2k18 because of a boost in the number of The Clubs by JOE members and membership revenue, a boost in FOOW restaurant revenue, opening of the Camp WaterColor restaurant in March 2k19 and additional revenue from the new WaterColor Store that opened in January 2k19. This incline was partially offset by a reduction in marina revenue because of the damage sustained by Hurricane Michael. Gross margins increased to 27.10 percent in 2k19 as a contrast to 23.10 percent in 2k18.

As of September 30, 2k19, the Company had under construction a 255-room Embassy Suites hotel in the Pier Park area of Panama City Beach, Florida, in addition to a 75-room boutique inn and new The Clubs by JOE amenities at Camp Creek. In addition, the Company declared 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 about $0.40M in 2k19 in contrast to a similar duration in 2k18. This incline was partially offset by a $0.40M reduction in marina slip rental revenue caused by the closure and planned redevelopment of the Company’s marinas. As of September 30, 2k19, the Company’s rentable space consisted of about 822,000 square feet, which was 92.00 percent leased, as a contrast to about 808,000 square feet as of September 30, 2k18, which was 89.00 percent leased. In addition, the initial 120 apartment units in Pier Park Crossings were accomplished and are 99.00 percent occupied.

As of September 30, 2k19, the Company had under construction eight commercial leasing projects totaling about 137,000 square feet of rentable space in addition to a 124-room TownePlace Suites hotel that will be operated by a 3rd-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 reduced to $1.30M in 2k19 in contrast to $1.80M in 2k18 because of the residual effects of Hurricane Michael.

Other Operating and Corporate Costs

Other operating and corporate costs of $5.10M remained essentially flat in 2k19 as a contrast to 2k18. The Company continues to manage operating costs to maintain an efficient structure.

Liquidity

The Company had cash, cash equivalents and investments of $202.40M as of September 30, 2k19, a contrast to $240.30M as of December 31, 2k18, a decline of $37.90M. Throughout the nine months finished September 30, 2k19, the company used about $77.70M for capital expenditures and $18.80M to repurchase 1,141,529 shares of its common stock. As of September 30, 2k19, the Company had about 59.50M shares of its common stock outstanding.