The St. Joe pany(JOE) - 2024 Q2 - Quarterly Report

Revenue Performance - Total revenue for the six months ended June 30, 2024, was $201.157 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 $91.438 million, while hospitality revenue was $70.466 million, and commercial revenue was $37.308 million [566]. - The company recognized $161.873 million of revenue at a point in time and $15.116 million over time during the six months ended June 30, 2024 [566]. - Hospitality revenue increased by $32.0 million, or 46.0%, to $101.6 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 $63.249 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 $32.825 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 $111.606 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 $62.546 million, compared to $91.438 million for the same period in 2023, a decrease of 31.6% [588]. - Residential real estate revenue decreased by $28.9 million, or 31.6%, to $62.5 million for the six months ended June 30, 2024, compared to $91.4 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 $45.9 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 $158.5 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 $105,000 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 $9.2 million as of December 31, 2023 [564]. - As of June 30, 2024, the company had $192.9 million in variable-rate debt, with $41.1 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 $22.9 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 $27.9 million and $40.0 million as of June 30, 2024, and December 31, 2023, respectively [590]. Expenses - The company incurred expenses of $0.6 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 $28.2 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].