Financial Performance - Quarterly net income attributable to the company increased by 25.9% to $17.5 million during the three months ended March 31, 2025, from $13.9 million in the same period in 2024[214]. - Quarterly revenue increased by 7.3% to $94.2 million during the three months ended March 31, 2025, from $87.8 million in the same period in 2024[214]. - Net income for the three months ended March 31, 2025, was $16.7 million, compared to $13.1 million in the same period in 2024, reflecting a 27.5% increase[262]. - Net cash provided by operating activities was $29.0 million for the three months ended March 31, 2025, compared to $27.6 million in the same period of 2024[341]. - Net cash provided by operating activities was $29.0 million for the three months ended March 31, 2025, compared to $27.6 million for the same period in 2024, reflecting an increase of 5.1%[342]. Revenue Breakdown - Real estate revenue increased by 12.0% to $38.3 million during the three months ended March 31, 2025, from $34.2 million in the same period in 2024[221]. - Hospitality revenue increased by $0.3 million, or 0.8%, to $39.6 million, driven by growth in membership dues and ancillary spending[270]. - Leasing revenue increased by 14.0% to a quarterly record of $16.3 million during the three months ended March 31, 2025, from $14.3 million in the same period in 2024[221]. - Total revenue for the three months ended March 31, 2025, increased to $94.2 million, up 7.3% from $87.8 million in the same period in 2024[262]. - Total revenue for the residential segment reached $33.0 million in Q1 2025, compared to $30.8 million in Q1 2024, marking an increase of 7.1%[284]. Real Estate and Development - Homesite closings volume increased by 15.3% to 249 homesites during the three months ended March 31, 2025, from 216 homesites in the same period in 2024[221]. - As of March 31, 2025, the company had 952 residential homesites under contract, expected to result in revenue of approximately $94.4 million at closing[230]. - The unconsolidated Latitude Margaritaville Watersound JV had completed 1,855 home sale transactions, with 264 homes under contract, expected to result in a sales value of approximately $158.0 million[225]. - The Watersound Town Center is currently under development with a total planned square footage of 400,000, of which 155,962 square feet is completed[254]. - The company is developing the Watersound West Bay Center, which will have a total of 500,000 square feet, with 3,366 square feet completed[254]. Leasing and Occupancy - The total net rentable square feet of leasing properties is 1,179,957, with a leasing percentage of 94% as of March 31, 2025[249]. - The commercial segment manages approximately 1,180,000 square feet of leasable space, achieving a leasing percentage of 94% as of March 31, 2025[247]. - As of March 31, 2025, the multi-family units have a total of 1,128 planned units, with 983 units leased, resulting in an occupancy rate of 87%[245]. - Total leasing revenue increased by $1.6 million, or 11.9%, to $15.1 million for the three months ended March 31, 2025, compared to $13.5 million in the same period of 2024[301]. - The gross margin for total leasing improved to 55.6% in Q1 2025 from 51.9% in Q1 2024[301]. Capital Expenditures and Investments - The company funded $32.7 million in capital expenditures, paid $8.2 million in cash dividends, and repurchased $5.7 million of its common stock in the first quarter of 2025[221]. - The company invested a total of $32.7 million in capital expenditures during the three months ended March 31, 2025, including $4.5 million for the commercial segment[310]. - The company had capital expenditures for operating property and equipment of $5.6 million during the three months ended March 31, 2025, down from $14.3 million in the same period of 2024[343]. Debt and Interest Rates - The weighted average effective interest rate of total outstanding debt was 4.8% as of March 31, 2025, with 73.8% of the debt having fixed or swapped interest rates[311]. - As of March 31, 2025, the company had variable-rate debt totaling $155.7 million, with a weighted average interest rate of 6.5%[352]. - A hypothetical 100 basis point increase in interest rates would result in an increase of $1.2 million in annual interest expense based on the outstanding balance of variable-rate loans[352]. - Interest expense decreased by $0.7 million, or 8.2%, to $7.8 million, primarily due to repayment of project financing and lower interest rates[275]. Joint Ventures and Equity - Equity in income from unconsolidated joint ventures increased to $10.2 million, up from $7.4 million in the same period in 2024[277]. - Equity in income from unconsolidated joint ventures rose by $4.4 million in Q1 2025, attributed to higher average margins and increased home sale transactions[289]. - Equity in loss from unconsolidated joint ventures was $2.5 million for the three months ended March 31, 2025, compared to $0.9 million for the same period in 2024[306]. Cash Flow and Financing Activities - Cash, cash equivalents, and restricted cash at the end of the period were $101.6 million as of March 31, 2025, up from $94.2 million at the end of 2024[341]. - Net cash used in investing activities was $6.6 million for the three months ended March 31, 2025, a significant decrease from $14.7 million in the same period of 2024, indicating a reduction of 55.2%[343]. - Net cash used in financing activities increased to $17.1 million for the three months ended March 31, 2025, compared to $9.5 million in the same period of 2024, reflecting an increase of 80.0%[344]. - Principal payments for debt amounted to $30.4 million during the three months ended March 31, 2025, compared to $2.3 million in the same period of 2024, indicating a substantial increase in debt repayment[344].

The St. Joe Company Reports First Quarter 2025 Results [Financial & Operational Highlights](index=1&type=section&id=Financial%20%26%20Operational%20Highlights) The company reported record Q1 revenue of $94.2 million and a 26% net income increase, driven by strong growth in recurring revenue streams Q1 2025 vs. Q1 2024 Key Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $94.2 million | $87.8 million | +7% | | **Net Income** | $17.5 million | $13.9 million | +26% | | **Real Estate Revenue** | $38.3 million | $34.2 million | +12% | | **Leasing Revenue** | $16.3 million | $14.3 million | +14% | | **Homesite Closings** | 249 | 216 | +15% | - In Q1 2025, the company executed a multi-faceted capital allocation strategy, including **$32.7 million in capital expenditures**, **$8.2 million in cash dividends**, **$5.7 million in stock repurchases**, and a **$2.5 million net debt repayment**[2](index=2&type=chunk)[4](index=4&type=chunk) - Cash and cash equivalents increased from **$88.8 million** at the end of 2024 to **$94.5 million** as of March 31, 2025[2](index=2&type=chunk) [CEO Statement & Strategic Outlook](index=1&type=section&id=CEO%20Statement%20%26%20Strategic%20Outlook) The CEO highlighted strong organic growth, record revenue, and key strategic developments signaling a bright future for the region and the company - The company is leveraging existing assets to build supplemental asset-light businesses, such as the newly announced **Watersound Real Estate brokerage**[4](index=4&type=chunk) - Florida State University plans a transformative **$414 million investment** to build a new teaching and research hospital on the company's medical campus[4](index=4&type=chunk) - The Northwest Florida Beaches International Airport announced its first-ever **direct flight to New York City**, indicating continued growth in air travel to the region[4](index=4&type=chunk) [Consolidated Financial Performance](index=2&type=section&id=Consolidated%20Financial%20Performance) Consolidated revenue grew 7% to $94.2 million, net income increased 26% to $17.5 million, and EBITDA rose 14% to $39.8 million in Q1 2025 Q1 2025 Consolidated Financial Results | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $94.2 million | $87.8 million | +7% | | **Net Income** | $17.5 million | $13.9 million | +26% | | **EPS (Basic)** | $0.30 | $0.24 | +25% | | **EBITDA** | $39.8 million | $34.9 million | +14% | - Unconsolidated joint ventures had revenues of **$123.2 million** and contributed **$10.2 million** in equity income to the Company in Q1 2025, up from $7.4 million in Q1 2024[6](index=6&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.14 per share**, payable on June 26, 2025[10](index=10&type=chunk) Segment Performance [Real Estate](index=3&type=section&id=Real%20Estate) The real estate segment's revenue increased 12% to $38.3 million, driven by a 15% rise in homesite sales to 249 units Real Estate Operating Metrics (Q1 2025) | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | **Real Estate Revenue** | $38.3 million | $34.2 million | +12% | | **Homesite Sales Volume** | 249 | 216 | +15% | | **Homesites Under Contract** | 952 | 1,335 | -29% | | **Value of Homesites Under Contract** | $94.4 million | $119.8 million | -21% | - The Latitude Margaritaville Watersound JV had **192 completed home sales** in Q1 2025 and has 264 homes under contract with an average sales price of approximately **$598,000**[13](index=13&type=chunk) - The company's residential pipeline includes over **21,300 homesites** in various stages of planning and development[12](index=12&type=chunk) [Hospitality](index=3&type=section&id=Hospitality) Hospitality revenue grew 1% to $39.6 million, supported by club membership growth, while the company expanded its portfolio to 1,298 hotel rooms Hospitality Operating Metrics (as of March 31) | Metric | 2025 | 2024 | Change | | :--- | :--- | :--- | :--- | | **Q1 Hospitality Revenue** | $39.6 million | $39.3 million | +1% | | **Club Members** | 3,498 | 3,433 | +65 members | | **Operational Hotel Rooms** | 1,298 | 1,177 | +121 rooms | | **Owned Hotels** | 12 | 11 | +1 hotel | [Leasing](index=4&type=section&id=Leasing) The leasing segment achieved a record quarter with revenue increasing 14% to $16.3 million, maintaining a 94% occupancy rate across its portfolio - Leasing revenue grew **14%** to a single quarter company record of **$16.3 million** in Q1 2025[17](index=17&type=chunk) Leasing Portfolio (as of March 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **Total Rentable Space** | ~1,180,000 sq. ft. | ~1,082,000 sq. ft. | | **Leased Space** | ~1,114,000 sq. ft. | ~1,046,000 sq. ft. | | **Occupancy Rate** | 94% | 97% | | **Space Under Construction** | 31,500 sq. ft. | N/A | - The company has **1,383 leasable multi-family and senior living units** as of March 31, 2025[17](index=17&type=chunk) [Corporate Expenses, Capital, and Debt](index=4&type=section&id=Corporate%20Expenses%2C%20Capital%2C%20and%20Debt) The company demonstrated effective cost control, improved its debt profile, and increased its cash position to $94.5 million while investing in growth - Corporate and other operating expenses decreased by $0.5 million to **$6.6 million** in Q1 2025, representing **7% of revenue** compared to 8% in Q1 2024[19](index=19&type=chunk) Debt Profile (as of March 31) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | **Weighted Avg. Interest Rate** | 4.8% | 5.3% | | **Average Remaining Life** | 18.8 years | 17.0 years | | **Fixed/Swapped Rate Debt** | 74% | N/A | - As of March 31, 2025, the company had **$94.5 million in cash and cash equivalents** and **$255.4 million invested in development property**[20](index=20&type=chunk) [Financial Data Schedules](index=5&type=section&id=FINANCIAL%20DATA%20SCHEDULES) This section provides detailed, unaudited financial statements and a reconciliation of the non-GAAP measure EBITDA to net income for Q1 2025 [Consolidated Results (Unaudited)](index=5&type=section&id=Consolidated%20Results%20(Unaudited)) The unaudited income statement shows a 7% revenue increase to $94.2 million and a 26% net income increase to $17.5 million for Q1 2025 Consolidated Results (Unaudited) ($ in millions) | | Quarter Ended March 31, | | | :--- | :--- | :--- | | | **2025** | **2024** | | **Total revenue** | $94.2 | $87.8 | | **Operating income** | $16.9 | $16.0 | | **Income before income taxes** | $22.5 | $17.8 | | **Net income attributable to the Company** | $17.5 | $13.9 | | **Basic net income per share** | $0.30 | $0.24 | [Summary Balance Sheet (Unaudited)](index=6&type=section&id=Summary%20Balance%20Sheet%20(Unaudited)) The balance sheet shows total assets of $1,547.4 million and total equity of $739.1 million as of March 31, 2025 Summary Balance Sheet (Unaudited) ($ in millions) | | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $94.5 | $88.8 | | **Total assets** | **$1,547.4** | **$1,538.6** | | **Liabilities and Equity** | | | | Debt, net | $434.8 | $437.8 | | **Total liabilities** | **$808.3** | **$801.9** | | **Total equity** | **$739.1** | **$736.7** | | **Total liabilities and equity** | **$1,547.4** | **$1,538.6** | [Reconciliation of Non-GAAP Financial Measures (Unaudited)](index=6&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures%20(Unaudited)) This schedule reconciles the non-GAAP measure EBITDA of $39.8 million to the GAAP measure of Net Income for Q1 2025 EBITDA Reconciliation (Unaudited) ($ in millions) | | Quarter Ended March 31, | | | :--- | :--- | :--- | | | **2025** | **2024** | | **Net income attributable to the Company** | **$17.5** | **$13.9** | | Plus: Interest expense | $7.8 | $8.5 | | Less: Investment income, net | ($3.4) | ($3.4) | | Plus: Income tax expense | $5.8 | $4.7 | | Plus: Depreciation, depletion and amortization | $12.1 | $11.2 | | **EBITDA** | **$39.8** | **$34.9** | [Important Notice Regarding Forward-Looking Statements](index=7&type=section&id=Important%20Notice%20Regarding%20Forward-Looking%20Statements) This section cautions that the report contains forward-looking statements subject to significant risks and uncertainties detailed in SEC filings - The report contains forward-looking statements concerning growth, capital allocation, and new projects, which are subject to risks and uncertainties[33](index=33&type=chunk) - Key risk factors include economic conditions, competition, interest rate fluctuations, supply chain disruptions, regulatory changes, and dependence on regional population growth[34](index=34&type=chunk)[36](index=36&type=chunk) [About The St. Joe Company](index=8&type=section&id=About%20The%20St.%20Joe%20Company) The St. Joe Company is a diversified real estate development, asset management, and operating company focused on its assets in Northwest Florida - The St. Joe Company is a real estate development, asset management, and operating company with assets and operations concentrated in Northwest Florida[38](index=38&type=chunk)

Group 1 - The core idea presented is that the price paid for an asset does not necessarily reflect its intrinsic value, as illustrated by the example of St. Joe (NYSE: JOE) [1] - The analysis emphasizes the importance of fundamental aspects of companies, including sector performance, competitive advantages, and management quality [1] Group 2 - The article does not provide any specific financial data or performance metrics related to St. Joe or the real estate sector [2][3]

Group 1 - Building Benjamins is a free stock picking and market commentary investment newsletter published by Tradition Investment Management, LLC [1] - Benjamin Halliburton, the founder, has a notable background in investment, having founded Tradition Capital Management in 2000 and received multiple accolades for his performance [1] - Halliburton has extensive experience in the investment field, starting his career at Merrill Lynch in 1986 and earning an MBA with a focus on finance from Duke's Fuqua School of Business in 1990 [1] Group 2 - Halliburton was recognized as the top-performing portfolio manager at Brundage, Story and Rose, where his "Disciplined Growth Strategy" outperformed the S&P 500 during the 1990s bull market [1] - He was the youngest partner at his firm and received high praise from senior managing partners for his investment skills [1]

Core Insights - The article discusses the author's past experience with St. Joe Company (NYSE: JOE), highlighting both profitable and unprofitable periods in the investment journey [1]. Company Overview - St. Joe Company has been a subject of interest for individual investors, particularly those focused on value investing strategies [1]. Investment Strategies - The author reflects on various investment strategies, including taking profits, reinvesting dividends, and the impact of market fluctuations on investment returns [1]. Personal Background - The author has a background in financial management education and has contributed to financial discussions through various platforms, indicating a level of expertise in financial analysis [1].

Business Segments - St. Joe operates in three reportable segments: residential, hospitality, and commercial[17]. - St. Joe's unconsolidated joint venture, Latitude Margaritaville Watersound JV, has met the conditions of a significant subsidiary as of December 31, 2024[20]. Workforce and Diversity - As of February 24, 2025, St. Joe employed 863 full-time and 194 part-time and seasonal employees[25]. - Approximately 32% of St. Joe's workforce identifies as racially diverse, and 47% of the workforce, including 50% of the executive management team, is female[32]. - The company has a history of investing in its workforce by offering competitive salaries and benefits[27]. Financials and Debt Management - The company has variable-rate debt totaling $184.6 million, with a weighted average interest rate of 6.5% as of December 31, 2024[299]. - A hypothetical 100 basis point increase in interest rates would increase annual interest expense by $1.4 million based on the outstanding balance of variable-rate loans[299]. - The company utilizes interest rate swap agreements to manage interest rate risk associated with variable-rate debt[299]. Revenue Trends - St. Joe's hospitality revenues are typically higher in the second and third quarters, influenced by holidays and school breaks[22]. - St. Joe's operations may be affected by seasonal fluctuations, impacting revenues and earnings significantly from period to period[21].

[Performance Highlights](index=1&type=section&id=Performance%20Highlights) The St. Joe Company reported strong Q4 2024 growth with revenue up 20% and net income up 43%, driven by segment performance and record homesite closings, alongside capital returns Q4 2024 vs. Q4 2023 Performance Highlights | Metric | Q4 2024 | Q4 2023 | Change | | :--- | :--- | :--- | :--- | | **Net Income** | $18.9 million | $13.2 million | +43% | | **Total Revenue** | $104.3 million | $86.7 million | +20% | | **Real Estate Revenue** | $46.5 million | $37.7 million | +23% | | **Hospitality Revenue** | $42.2 million | $35.4 million | +19% | | **Leasing Revenue** | $15.6 million | $13.6 million | +15% | | **Homesite Closings** | 331 | 182 | +82% | Full Year 2024 vs. Full Year 2023 Revenue | Metric | Full Year 2024 | Full Year 2023 | Change | | :--- | :--- | :--- | :--- | | **Total Revenue** | $402.7 million | $389.2 million | +3% | | **Hospitality Revenue** | $199.2 million | $152.4 million | +31% (Record) | | **Leasing Revenue** | $60.3 million | $50.8 million | +19% (Record) | - The CEO highlighted **record homesite closings** in December (318) and Q4 (331), contributing to a **strong finish to 2024**[2](index=2&type=chunk)[3](index=3&type=chunk) - The Board of Directors declared a **quarterly dividend of $0.14 per share** and **increased the stock repurchase authority to $100.0 million**[1](index=1&type=chunk)[11](index=11&type=chunk) [CEO Commentary and Strategy](index=2&type=section&id=CEO%20Commentary%20and%20Strategy) The CEO highlighted the company's strategy of developing operating properties to enhance land value, with significant contributions from joint ventures, driven by strong regional demand - The company's **core strategy** is to develop operating properties that **grow recurring revenue** while simultaneously **increasing the value of its surrounding lands**[4](index=4&type=chunk) - **Unconsolidated joint ventures** are a **key part of the business strategy**, contributing **$23.6 million in pre-tax income** for 2024 from **$378.2 million in their own revenue**[4](index=4&type=chunk)[7](index=7&type=chunk) - **Strong demand** across all business segments is attributed to the **continued influx of visitors and new residents to Northwest Florida**[4](index=4&type=chunk) [Segment Performance](index=3&type=section&id=Segment%20Performance) The company's operating segments showed varied performance, with Real Estate revenue up in Q4 but down for the full year, while Hospitality and Leasing segments achieved robust growth and record revenues [Real Estate](index=3&type=section&id=Real%20Estate) Real estate revenue increased 23% in Q4 2024 driven by record homesite sales, despite a full-year decline, with a strong future pipeline and continued performance from a key joint venture Real Estate Performance | Metric | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | $46.5M | $37.7M | $143.2M | $186.0M | | **Homesite Sales** | 331 | 182 | 912 | 1,063 | - As of Dec 31, 2024, the company had **1,074 residential homesites under contract**, expected to generate **approximately $102.0 million in revenue**[14](index=14&type=chunk) - The Latitude Margaritaville Watersound JV had **367 homes under contract** with an expected sales value of **approximately $226.9 million**[16](index=16&type=chunk) [Hospitality](index=4&type=section&id=Hospitality) Hospitality revenue grew significantly in Q4 and full year 2024, reaching a record $199.2 million, driven by increased club memberships and an expanded hotel portfolio Hospitality Revenue Growth | Period | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | **Q4 Revenue** | $42.2M | $35.4M | +19% | | **Full Year Revenue** | $199.2M | $152.4M | +31% | - Growth drivers include an **increase in Watersound Club members to 3,476** (from 3,317 in 2023) and the **operation of 1,298 hotel rooms**[18](index=18&type=chunk) [Leasing](index=4&type=section&id=Leasing) Leasing revenue increased 15% in Q4 and 19% for the full year, reaching a record $60.3 million with high occupancy rates, and the company plans to significantly expand its commercial leasable space Leasing Revenue Growth | Period | 2024 | 2023 | Change | | :--- | :--- | :--- | :--- | | **Q4 Revenue** | $15.6M | $13.6M | +15% | | **Full Year Revenue** | $60.3M | $50.8M | +19% | - As of Dec 31, 2024, the portfolio consisted of **approximately 1,182,000 leasable square feet**, of which **95% was leased**[20](index=20&type=chunk) - The company has plans to **more than double its total current leasable commercial space** through development at key centers[20](index=20&type=chunk) [Financial Condition and Corporate Matters](index=4&type=section&id=Financial%20Condition%20and%20Corporate%20Matters) The company maintained a solid financial position in 2024 with $88.8 million in cash and growing assets, investing in capital expenditures while returning capital to shareholders and managing debt conservatively Full Year 2024 Capital Allocation & Investments | Activity | Amount | | :--- | :--- | | **Capital Expenditures** | $129.4 million | | **Cash Dividends Paid** | $30.3 million | | **Common Stock Repurchased** | $3.4 million | | **Net Debt Repayment** | $17.1 million | - As of December 31, 2024, the company had **$88.8 million in cash, cash equivalents, and other liquid investments**[23](index=23&type=chunk) - The **weighted average effective interest rate of outstanding debt was 4.9%**, with **68% of debt at a fixed or swapped rate**, and **Total debt was approximately 28% of total assets**[24](index=24&type=chunk) - Corporate and other operating expenses remained **stable at 6% of total revenue** for the full year 2024[21](index=21&type=chunk) [Financial Data Schedules](index=5&type=section&id=FINANCIAL%20DATA%20SCHEDULES) This section presents detailed unaudited financial statements, including consolidated results showing strong Q4 growth, a balance sheet reflecting total assets of $1.54 billion, and an EBITDA reconciliation [Consolidated Results](index=6&type=section&id=Consolidated%20Results) Q4 2024 consolidated results show total revenue of $104.3 million and net income of $18.9 million, while full-year 2024 revenue was $402.7 million with a slight net income decrease Consolidated Results ($ in millions except per share amounts) | | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | **Total revenue** | $104.3 | $86.7 | $402.7 | $389.2 | | **Operating income** | $25.7 | $17.3 | $95.6 | $90.7 | | **Net income attributable to the Company** | $18.9 | $13.2 | $74.2 | $77.7 | | **Basic net income per share** | $0.32 | $0.23 | $1.27 | $1.33 | [Summary Balance Sheet](index=7&type=section&id=Summary%20Balance%20Sheet) As of December 31, 2024, the company's total assets increased to $1,538.6 million, while total liabilities decreased and total equity grew, reflecting a stronger financial position Summary Balance Sheet ($ in millions) | | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total assets** | $1,538.6 | $1,523.5 | | **Total liabilities** | $801.9 | $825.0 | | **Total equity** | $736.7 | $698.5 | [Reconciliation of Non-GAAP Financial Measures (EBITDA)](index=7&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures%20%28EBITDA%29) EBITDA, a non-GAAP measure, increased by 25% to $42.5 million in Q4 2024 and 4% for the full year, providing additional insight into operating performance EBITDA Reconciliation ($ in millions) | | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net income attributable to the Company** | $18.9 | $13.2 | $74.2 | $77.7 | | **Adjustments (Interest, Taxes, D&A, etc.)** | $23.6 | $20.8 | $92.5 | $82.0 | | **EBITDA** | $42.5 | $34.0 | $166.7 | $159.7 |

Core Points - Ronald Dissinger has been appointed as the Interim Chief Financial Officer of Jones Soda Co. following the resignation of Joe Culp, effective November 4, 2024 [1] - The Board of Directors is currently searching for a permanent Chief Financial Officer [1][2] - Paul Norman, the Chairman of the Board and Interim Chief Executive Officer, expressed confidence in Dissinger's financial leadership skills during this transitional period [2] Company Overview - Jones Soda Co. is recognized as a leading developer of sodas and cannabis-infused beverages, known for their premium taste and unique flavors [3] - The company was launched in 1996 and markets a diverse portfolio of products under the Jones® Soda brand and the Mary Jones brand for cannabis beverages and edibles [3]

Background and Experience - The individual has over 20 years of experience as a CPA and was a Senior Manager at a Big Four accounting firm [1] - After leaving public accounting in 2010, the individual served as CFO for two privately held companies with sales between $50m and $100m in the aerospace and defense and beauty industries [1] Investment Philosophy - The individual identifies as a value investor but is open to other investment disciplines if they make sense [1] - The investment approach is influenced by the Buffett/Munger style of buying wonderful businesses at fair prices [1] - The individual emphasizes the importance of heavy research before and during the investment period, including quarterly financial checkups, conference calls, and staying updated with news [1] - The goal is to hold investments long-term and reinvest dividends, with minimal buying or selling activity [1] Analytical Approach - The individual is comfortable with financial metrics but requires more than just numbers to make an investment decision [1] - The approach involves looking at all sides of a situation and considering both positives and risks in any investment [1] - The individual aims to engage the audience to fully analyze investment positions [1]

Revenue Performance - Hospitality revenue increased by 16.9% in Q3 2024 to $55.4 million from $47.4 million, and increased 34.2% for the first nine months of 2024 to $157.0 million from $117.0 million[186]. - Leasing revenue increased by 19.1% in Q3 2024 to $15.6 million from $13.1 million, and increased 20.2% for the first nine months of 2024 to $44.7 million from $37.2 million[186]. - Real estate revenue decreased by 31.5% in Q3 2024 to $28.0 million from $40.9 million, and decreased by 34.8% for the first nine months of 2024 to $96.7 million from $148.3 million[186]. - Total revenue for Q3 2024 decreased by 2.4% to $99.0 million from $101.4 million, while operating income increased by 4.4% to $21.2 million from $20.3 million[187]. - Total revenue for the nine months ended September 30, 2024, reached $157.0 million, up 34.2% from $117.0 million in the same period in 2023[276]. Net Income and Expenses - Net income attributable to the Company decreased by 13.4% to $16.8 million from $19.4 million in Q3 2024, primarily due to timing of homesite closings and product mix[187]. - Total expenses for the three months ended September 30, 2024, were $77.8 million, down from $81.1 million in the same period of 2023, a decrease of 4.1%[225]. - Net income for the three months ended September 30, 2024, was $16.6 million, down from $18.7 million in the same period of 2023, a decrease of 11.2%[225]. - Corporate and other operating expenses decreased by $0.2 million to $6.0 million for the three months ended September 30, 2024, compared to $6.2 million in the same period of 2023[241]. Residential and Hospitality Segments - The residential segment generated 19.2% of operating revenue in Q3 2024, down from 35.0% in Q3 2023, while the hospitality segment increased to 57.0% from 47.3%[190]. - The company has significant additional entitlements for future hotel projects on its land holdings[207]. - The hospitality segment generates revenue from various sources including membership sales, lodging, and food and beverage operations, with revenue recognized at the point services are provided[201]. Leasing and Real Estate - Multi-family units total 1,128, with an overall leasing percentage of 87% as of September 30, 2024[211]. - Senior living communities total 255 units, with a leasing percentage of 53% as of September 30, 2024[211]. - The leasing portfolio consists of approximately 1,179,000 square feet of leasable space for mixed-use, retail, and medical uses[212]. - Total leasing revenue for the nine months ended September 30, 2024, increased by $6.2 million, or 17.5%, to $41.6 million compared to the same period in 2023[292]. Cash Flow and Capital Expenditures - Net cash provided by operating activities was $78.2 million for the nine months ended September 30, 2024, compared to $92.3 million for the same period in 2023[326]. - Net cash used in investing activities was $42.4 million for the nine months ended September 30, 2024, significantly lower than $81.5 million for the same period in 2023[327]. - Total capital expenditures for the nine months ended September 30, 2024, amounted to $98.7 million, with $51.1 million allocated to the residential segment, $23.4 million to the hospitality segment, and $23.2 million to the commercial segment[301]. Debt and Interest Expense - As of September 30, 2024, total outstanding loans amounted to $448.5 million, down from $459.2 million as of December 31, 2023, with a weighted average effective interest rate of 5.1%[302]. - Interest expense increased by $3.7 million, or 17.0%, to $25.5 million during the nine months ended September 30, 2024, compared to $21.8 million in the same period in 2023[244]. - The weighted average interest rate on the variable rate loans, excluding the swapped portion, was 7.1% based on SOFR[336]. Membership and Club Performance - The company had 3,532 members in the Watersound Club as of September 30, 2024, an increase of 444 members from 3,088 members as of September 30, 2023[276]. - Revenue from clubs increased by $22.6 million, or 59.2%, during the nine months ended September 30, 2024, compared to the same period in 2023[276]. Joint Ventures and Equity - Equity in income from unconsolidated joint ventures was $6.8 million for the three months ended September 30, 2024, compared to $8.7 million in the same period in 2023, while it increased to $19.5 million for the nine months ended September 30, 2024, from $18.4 million in the same period in 2023[248]. - Equity in loss from unconsolidated joint ventures was $1.6 million for the three months ended September 30, 2024, compared to $0.1 million for the same period in 2023[289].