The St. Joe pany(JOE) - 2019 Q2 - Quarterly Report

Revenue Performance - Residential real estate segment contributed 38.9% to operating revenue for the three months ended June 30, 2019, down from 57.0% in the same period of 2018[162]. - Hospitality segment revenue increased to 43.9% for the three months ended June 30, 2019, compared to 26.3% in the prior year[162]. - Total revenue for the six months ended June 30, 2019, was $35.5 million, a decrease of 29.6% from $50.4 million in the same period of 2018[212]. - Hospitality revenue increased to $15.6 million for the six months ended June 30, 2019, up 20.9% from $12.9 million in 2018[212]. - Real estate revenue for the three months ended June 30, 2019, was $15.5 million, down 51.8% from $32.1 million in the same period of 2018[213]. - Total residential real estate revenue for the six months ended June 30, 2019, decreased by $18.5 million, or 51.8%, to $17.2 million compared to $35.7 million in the same period in 2018[215]. - Total revenue for the commercial leasing and sales segment was $3.5 million for the three months ended June 30, 2019, compared to $3.3 million for the same period in 2018, reflecting a 6.1% increase[260]. - Total revenue for the six months ended June 30, 2019, was $23.1 million, an increase of 11.6% compared to $20.7 million for the same period in 2018[254]. Residential Real Estate - Total residential homesites under contract as of June 30, 2019, were 914, expected to generate approximately $89.5 million in revenue upon closing[180]. - The Bay-Walton Sector Plan includes entitlements for over 170,000 residential homesites and over 22 million square feet of commercial space on approximately 110,500 acres[179]. - The Watersound Origins community has 562 homesites fully developed, with 412 sold as of June 30, 2019[166]. - The Breakfast Point community has 369 homesites fully developed, with 330 sold as of June 30, 2019[167]. - The number of homesites sold increased to 151 during the three months ended June 30, 2019, compared to 37 homesites sold in the same period in 2018[214]. - Revenue from homesite sales increased by $4.2 million, or 36.5%, during the six months ended June 30, 2019, compared to the same period in 2018[244]. - Average revenue per homesite sold was approximately $75,000 for the six months ended June 30, 2019, compared to $74,000 in the same period of 2018[244]. - Total residential real estate gross profit decreased by $19.2 million to $7.1 million, with a gross margin of 51.4%, compared to $26.3 million and a gross margin of 91.6% in the same period in 2018[214]. Hospitality Performance - Hospitality revenue increased by $2.7 million, or 20.9%, during the three months ended June 30, 2019, due to the reopening of the FOOW restaurant and the opening of the WaterColor Store[224]. - Hospitality gross margin improved to 42.3% during the three months ended June 30, 2019, compared to 27.1% in the same period in 2018[224]. - Revenue from resorts, lodging, and other management services increased by $1.6 million, or 22.2%, during the three months ended June 30, 2019, compared to the same period in 2018[248]. - Revenue from clubs increased by $1.6 million, or 30.8%, during the three months ended June 30, 2019, with a gross margin increase to 44.1% from 23.1% in the same period in 2018[249]. - The hospitality segment gross margin was 42.3% during the three months ended June 30, 2019, compared to 26.3% during the same period in 2018[252]. Financial Performance - Operating income for the six months ended June 30, 2019, was $10.9 million, a decline of 62.8% compared to $29.3 million in 2018[212]. - Net income for the six months ended June 30, 2019, was $10.3 million, down 60.6% from $26.1 million in the same period of 2018[212]. - Investment income, net decreased by $3.5 million to $2.5 million for the three months ended June 30, 2019, compared to $6.0 million for the same period in 2018[232]. - Total investment income, net for the six months ended June 30, 2019 was $8.6 million, down from $9.6 million in the same period of 2018, reflecting unrealized losses of $1.9 million related to preferred stock[232]. - Income tax expense for the three months ended June 30, 2019 was $3.4 million, with an effective tax rate of 24.9%, compared to $6.5 million and 20.0% in the same period of 2018[237]. Cash Flow and Capital Expenditures - Net cash provided by operating activities was $12.3 million for the six months ended June 30, 2019, down from $37.7 million in the same period of 2018[286]. - Net cash used in investing activities was $(14.7) million for the six months ended June 30, 2019, compared to $56.0 million provided in the same period of 2018[288]. - Capital expenditures for operating property and equipment were $34.0 million for the six months ended June 30, 2019, compared to $10.9 million in 2018[289]. - The company repurchased 471,500 shares of common stock for $7.1 million during the six months ended June 30, 2019, significantly lower than the $72.5 million spent on 4,065,160 shares in the same period of 2018[285]. Future Outlook - The company plans to explore the sale of certain hospitality properties and the development of new hospitality properties[190]. - The company plans to explore the sale of real estate assets opportunistically to enhance resource deployment and increase recurring revenue[299]. - Future growth is expected to be driven by investments in real estate projects that provide recurring revenue, particularly in Northwest Florida[299]. - The company anticipates continuing to develop residential homesites for sale to builders and retail homesites for consumers[301]. - The company plans to maintain a high degree of liquidity while seeking investment opportunities to enhance shareholder value[302].