The St. Joe pany(JOE) - 2021 Q1 - Quarterly Report

Revenue Performance - Total revenue for the three months ended March 31, 2021, was $41.3 million, a significant increase from $18.6 million in the same period in 2020, representing a growth of 122.0%[234]. - Real estate revenue increased to $21.0 million in Q1 2021 from $5.8 million in Q1 2020, marking a growth of 262.1%[234]. - Hospitality revenue rose to $13.1 million in Q1 2021, compared to $6.6 million in Q1 2020, reflecting an increase of 98.5%[234]. - Residential real estate revenue surged to $20.5 million in Q1 2021, up from $2.9 million in Q1 2020, a growth of 607.7%[236]. - Revenue from homesite sales increased by $15.3 million during Q1 2021 compared to Q1 2020, with average revenue per homesite sold at approximately $73,000, down from $113,000[252]. - Revenue from clubs increased by $2.5 million, or 65.8%, during Q1 2021, with membership growing to 1,722 members from 1,284 members year-over-year[258]. - Revenue from hotel operations and related services increased by $2.8 million, or 112.0%, in Q1 2021, with a gross margin of 1.9% compared to a negative margin of 68.0% in Q1 2020[259]. - Total leasing revenue increased by $1.3 million, or 30.2%, during Q1 2021, with a total leasing gross margin of 51.8%, down from 86.0% in the same period last year[264][265]. Segment Contributions - For the three months ended March 31, 2021, the residential segment contributed 50.0% to consolidated operating revenue, up from 16.4% in the same period of 2020[199]. - The hospitality segment accounted for 31.5% of consolidated operating revenue in Q1 2021, a decrease from 35.3% in Q1 2020[199]. - The hospitality segment includes operations of the WaterColor Inn and WaterSound Inn, which generate revenue from service and rental fees[214]. Development and Construction - As of March 31, 2021, the company had 1,268 residential homesites under contract, expected to generate approximately $114.0 million in revenue, compared to 979 homesites and $91.0 million in revenue expected as of March 31, 2020[208]. - The Latitude Margaritaville Watersound community is projected to include approximately 3,500 residential homes, with construction of the sales center and 13 model homes completed in April 2021[203]. - The residential homesite pipeline includes a total of 19,499 homesites across various stages of development, permitting, and planning[205]. - The company is constructing multiple new hospitality properties, including an Embassy Suites hotel and a Hilton Garden Inn, with construction expected to begin in Q2 2021 for a new waterfront Hotel Indigo[215]. - The commercial segment is constructing 703 apartment units, in addition to 414 recently completed units and 107 senior living units[224]. - The company operates two marinas and is planning new marinas along the Intracoastal Waterway, with partial reconstruction expected to open by the end of 2021[219]. - The company has several commercial projects in planning, including a 50,000 square foot Publix supermarket and a 71,000 square foot self-storage facility[227]. Financial Position - Cash and cash equivalents decreased to $52.3 million as of March 31, 2021, down from $106.8 million as of December 31, 2020[273]. - Outstanding loans as of March 31, 2021, totaled $172.3 million, an increase from $161.4 million as of December 31, 2020[276]. - The company incurred $167.4 million in construction and development-related contractual obligations as of March 31, 2021[275]. - The company had net rentable square feet of approximately 907,000 as of March 31, 2021, with 780,000 square feet under lease[265]. - The company recorded a retained interest of $13.1 million related to notes from a timberland sale, representing future cash flows[298]. Operational Metrics - Total operational rooms amount to 195, with an additional 689 rooms under development, bringing the total to 939 rooms[217]. - The number of members at Watersound Club rose to 1,722 as of March 31, 2021, an increase of 438 members from 1,284 members in the same period in 2020[240]. - Total apartment units completed as of March 31, 2021, were 1,224, with an overall occupancy rate of 81%, up from 60% for the completed units as of December 31, 2020[271]. Cash Flow and Investments - Net cash provided by operating activities for the three months ended March 31, 2021, was $9.8 million, compared to $3.1 million for the same period in 2020[302]. - Net cash used in investing activities during the three months ended March 31, 2021, was $68.6 million, which included capital expenditures of $25.1 million[303][304]. - Net cash provided by financing activities for the three months ended March 31, 2021, was $4.6 million, including borrowings on debt of $11.3 million[305]. Strategic Focus and Future Outlook - The company plans to focus on its core business of real estate development and asset management to increase recurring revenue and long-term shareholder value[194]. - The company expects to optimize the value of its real estate by developing residential, hospitality, and commercial projects to meet market demands and generate recurring revenues[308]. - The company aims to expand its hospitality assets and services to enhance their value and contribution to overall performance[308]. - The company is exploring opportunities for joint ventures (JVs) with third parties to efficiently utilize land assets while reducing capital requirements[308]. - The company is focused on strategic infrastructure and economic development initiatives to attract quality job creators and diversify the Northwest Florida economy[308]. - The company is committed to a cost and investment discipline to ensure low fixed expenses and improve bottom line performance[308]. Risks and Challenges - The ongoing COVID-19 pandemic poses a risk of disruptions that could affect operations and market demand[312]. - There are concerns regarding the ability to obtain land use entitlements and construction financing in a timely manner[312]. - Economic conditions such as inflation, unemployment rates, and consumer confidence may impact future prospects in the Southeastern U.S. and demand for housing[312]. - The company is dependent on the real estate industry, which is cyclical, affecting revenue consistency and pace in residential real estate[312]. - There is a potential risk of negative cash flows and losses due to the long-term property development strategy if self-development of entitlements continues[312].