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The St. Joe pany(JOE) - 2024 Q2 - Quarterly Report
JOEThe St. Joe pany(JOE)2024-07-24 20:21

Revenue Performance - Total revenue for the six months ended June 30, 2024, was 201.157million,comparedto201.157 million, compared to 201.157 million for the same period in 2023, indicating no growth year-over-year [566]. - Residential revenue for the six months ended June 30, 2024, was 91.438million,whilehospitalityrevenuewas91.438 million, while hospitality revenue was 70.466 million, and commercial revenue was 37.308million[566].−Thecompanyrecognized37.308 million [566]. - The company recognized 161.873 million of revenue at a point in time and 15.116millionovertimeduringthesixmonthsendedJune30,2024[566].−Hospitalityrevenueincreasedby15.116 million over time during the six months ended June 30, 2024 [566]. - Hospitality revenue increased by 32.0 million, or 46.0%, to 101.6millionforthesixmonthsendedJune30,2024,comparedto101.6 million for the six months ended June 30, 2024, compared to 69.6 million in the same period in 2023 [619]. - The company’s hospitality segment generated 63.249millioninrevenueforthethreemonthsendedJune30,2024,comparedto63.249 million in revenue for the three months ended June 30, 2024, compared to 45.611 million for the same period in 2023, showing a growth of 38.6% [588]. Membership and Club Performance - The company had a total of 49,406 club memberships at the end of June 30, 2024, up from 32,315 at the end of June 30, 2023, representing a 53.1% increase [570]. - The number of Watersound Club members rose to 3,571 as of June 30, 2024, an increase of 718 members from 2,853 members as of June 30, 2023 [619]. Income and Profitability - The company reported an income before income taxes of 32.825millionforthethreemonthsendedJune30,2024,comparedto32.825 million for the three months ended June 30, 2024, compared to 45.339 million for the same period in 2023, reflecting a decrease of 27.6% [588]. - The company’s total operating revenue for the three months ended June 30, 2024, was 111.606million,downfrom111.606 million, down from 128.167 million for the same period in 2023, a decline of 12.9% [588]. - The company’s income from the residential segment for the six months ended June 30, 2024, was 62.546million,comparedto62.546 million, compared to 91.438 million for the same period in 2023, a decrease of 31.6% [588]. - Residential real estate revenue decreased by 28.9million,or31.628.9 million, or 31.6%, to 62.5 million for the six months ended June 30, 2024, compared to 91.4millioninthesameperiodof2023[616].−Thegrossprofitforresidentialrealestateinthefirsthalfof2024was91.4 million in the same period of 2023 [616]. - The gross profit for residential real estate in the first half of 2024 was 31.7 million, with a gross margin of 50.7%, compared to 45.9millionandagrossmarginof50.245.9 million and a gross margin of 50.2% in the same period of 2023 [616]. - Hospitality gross margin improved to 32.9% for the six months ended June 30, 2024, up from 19.3% during the same period in 2023 [619]. Real Estate and Development - As of June 30, 2024, the company had 1,303 residential homesites under contract, expected to generate approximately 114.0 million in revenue, down from 1,825 homesites and 158.5millioninrevenueasofJune30,2023[603].−Theaveragebaserevenueperhomesitesoldincreasedtoapproximately158.5 million in revenue as of June 30, 2023 [603]. - The average base revenue per homesite sold increased to approximately 128,000 in the first half of 2024 from 105,000inthesameperiodof2023[616].−Thecompanysold402homesitesduringthefirsthalfof2024,comparedto627homesitesinthesameperiodof2023[616].−ThecommercialsegmentisdevelopingtheWatersoundTownCenterandWatersoundWestBayCenter,whicharecomplementarytoresidentialcommunities[608].−Thecompanyplanstodevelopan87−acremedicalcampusinPanamaCityBeach,Florida,incollaborationwithFloridaStateUniversityandTallahasseeMemorialHospital[608].−Thetotalmulti−familyunitscompletedasofJune30,2024,were1,128,withaleasingpercentageof86105,000 in the same period of 2023 [616]. - The company sold 402 homesites during the first half of 2024, compared to 627 homesites in the same period of 2023 [616]. - The commercial segment is developing the Watersound Town Center and Watersound West Bay Center, which are complementary to residential communities [608]. - The company plans to develop an 87-acre medical campus in Panama City Beach, Florida, in collaboration with Florida State University and Tallahassee Memorial Hospital [608]. - The total multi-family units completed as of June 30, 2024, were 1,128, with a leasing percentage of 86% [609]. Financial Position and Debt - The company’s total liabilities included income tax payable of 2.1 million as of June 30, 2024, down from 9.2millionasofDecember31,2023[564].−AsofJune30,2024,thecompanyhad9.2 million as of December 31, 2023 [564]. - As of June 30, 2024, the company had 192.9 million in variable-rate debt, with 41.1millionswappedtoafixedinterestrate[365].−Theweightedaverageinterestrateonvariablerateloans,excludingtheswappedportion,was7.641.1 million swapped to a fixed interest rate [365]. - The weighted average interest rate on variable rate loans, excluding the swapped portion, was 7.6% as of June 30, 2024 [365]. - A hypothetical 100 basis point increase in the applicable rate would result in an increase to annual interest expense of 1.5 million [365]. - The company entered into a 22.9millionloanin2019,with22.9 million loan in 2019, with 22.0 million outstanding as of June 30, 2024, bearing interest at a rate of 2.7% [620]. - The loan matures in May 2057 and includes a prepayment premium of 1% - 8% for any principal prepaid through May 2032 [620]. - Surety bonds and financial guarantees amounted to 27.9millionand27.9 million and 40.0 million as of June 30, 2024, and December 31, 2023, respectively [590]. Expenses - The company incurred expenses of 0.6millionand0.6 million and 0.4 million related to leasing management services in the second quarter of 2024 and 2023, respectively [593]. - Capital expenditures for operating property and equipment were 28.2millionforthesixmonthsendedJune30,2024,downfrom28.2 million for the six months ended June 30, 2024, down from 82.3 million in the same period in 2023 [623]. Investment Risks - The company is subject to credit risk associated with investments classified as available-for-sale securities, which may fluctuate due to market conditions [364].