The St. Joe pany(JOE) - 2019 Q1 - Quarterly Report

Revenue Breakdown - For the three months ended March 31, 2019, the consolidated operating revenue breakdown was: Residential real estate 21.0%, Hospitality 46.6%, Commercial leasing and sales 26.3%, and Forestry 5.4%[145]. - Total revenue for the three months ended March 31, 2019, was $16.0 million, a decrease of 19.6% from $19.9 million in the same period in 2018[190]. - Residential real estate revenue decreased by $3.6 million, or 51.4%, to $3.4 million, compared to $7.0 million in the same period in 2018[192]. - Hospitality revenue increased by $0.3 million, or 4.2%, to $7.4 million, driven by the opening of new facilities and increased membership revenue[197]. - Leasing revenue increased by $0.1 million, or 2.9%, to $3.5 million, primarily due to new leases at various properties[199]. - Revenue from resorts, lodging, and other management services increased by $0.4 million, or 11.8%, during the three months ended March 31, 2019[214]. - Total revenue from commercial leasing and sales segment increased to $4.2 million from $3.1 million year-over-year[219]. Real Estate Development - As of March 31, 2019, there were 773 residential homesites under contract, expected to generate approximately $74.5 million in revenue upon closing over the next several years[164]. - The Watersound Origins community has government approval for 1,074 single-family homesites, with 371 fully developed and 345 sold as of March 31, 2019[148]. - The Bay-Walton Sector Plan includes entitlements for over 170,000 residential homesites and over 22 million square feet of retail, commercial, and industrial space on approximately 110,500 acres[162]. - The Breakfast Point community has government approval for 369 single-family homesites, with all 302 fully developed homesites sold as of March 31, 2019[149]. - The company anticipates a growing demand for retirement and workforce housing in Northwest Florida, leveraging its strategic land holdings[163]. Operating Performance - The gross margin for residential real estate was 47.1% for Q1 2019, compared to 41.4% in Q1 2018[192]. - The gross margin for hospitality revenue decreased to 4.1% in Q1 2019 from 5.6% in Q1 2018, primarily due to lower occupancy rates[197]. - The gross margin for leasing revenue improved to 68.6% in Q1 2019 from 67.6% in Q1 2018[199]. - Hospitality segment gross margin decreased to 4.0% from 6.7% year-over-year, primarily due to lower occupancy at the WaterColor Inn and the impact of Hurricane Michael[218]. Cash Flow and Expenses - Net cash used in operating activities was $1.2 million for Q1 2019, a decrease from net cash provided of $2.2 million in Q1 2018[240]. - Net cash used in investing activities was $2.7 million in Q1 2019, significantly lower than $22.4 million provided in Q1 2018, which included $30.8 million from sales of investments[241]. - Net cash used in financing activities was $0.3 million in Q1 2019, compared to $13.8 million in Q1 2018, reflecting a significant reduction in stock repurchase costs[242]. - Total other operating and corporate expenses for the three months ended March 31, 2019, were $6.0 million, slightly up from $5.9 million in the same period of 2018[201]. Debt and Obligations - The company had $33.0 million in contractual obligations as of March 31, 2019[233]. - Outstanding on the PPN JV Loan was $46.2 million as of March 31, 2019, with an interest rate of 4.1% per annum[234]. - As of March 31, 2019, the outstanding balance on the PPC JV Loan was $21.7 million, with an interest rate of 4.0% per annum, maturing in June 2060[235]. - The total outstanding CDD debt related to land holdings was $19.9 million, including $16.6 million at SouthWood and $2.8 million at the Pier Park retail center as of March 31, 2019[236]. Market Conditions and Risks - A downturn in economic conditions in Northwest Florida could reduce discretionary income and decrease demand for hospitality segment operations[263]. - Increases in interest rates could negatively impact the real estate business and increase development project costs[263]. - Recent regulatory guidance may lead to the disappearance of LIBOR, impacting interest earned on investments and interest expense[262]. - A hypothetical 100 basis point increase in interest rates would decrease the market value of certain preferred stock investments by approximately $1.3 million as of March 31, 2019[259]. Shareholder Actions - During Q1 2019, the company repurchased 471,500 shares of common stock for a total of $7.1 million, compared to 764,825 shares for $13.7 million in Q1 2018[237]. - The company plans to explore the sale of real estate assets opportunistically to increase recurring revenue and long-term shareholder value[250].