The St. Joe pany(JOE) - 2024 Q4 - Annual Results

Performance Highlights 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][3] - The Board of Directors declared a quarterly dividend of $0.14 per share and increased the stock repurchase authority to $100.0 million[1][11] CEO Commentary and Strategy 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] - 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][7] - Strong demand across all business segments is attributed to the continued influx of visitors and new residents to Northwest Florida[4] Segment Performance 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 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] - The Latitude Margaritaville Watersound JV had 367 homes under contract with an expected sales value of approximately $226.9 million[16] 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] 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] - The company has plans to more than double its total current leasable commercial space through development at key centers[20] Financial Condition and Corporate Matters 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] - 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] - Corporate and other operating expenses remained stable at 6% of total revenue for the full year 2024[21] Financial Data Schedules 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 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 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) 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 |