The St. Joe pany(JOE) - 2024 Q1 - Quarterly Report

Financial Performance - Revenue increased by 20.3% to $87.8 million from $73.0 million in Q1 2024 compared to Q1 2023[218] - Operating income rose by 41.6% to $16.0 million from $11.3 million year-over-year[218] - Net income attributable to the Company increased by 33.7% to $13.9 million from $10.4 million[219] - Total revenue for the three months ended March 31, 2024, increased to $87.8 million, up 20.5% from $73.0 million in the same period in 2023[264] - Net income for Q1 2024 was $13.1 million, up from $9.5 million in Q1 2023, reflecting a 38.9% increase[352] Hospitality Segment - Hospitality revenue surged by $14.8 million, or 60.4%, to $39.3 million, driven by new club members and the opening of new amenities[273] - Revenue from hospitality segment surged to $40.0 million in Q1 2024, a significant increase of 60.8% from $24.9 million in Q1 2023[298] - Hospitality revenue from clubs increased by $8.9 million, or 88.1%, in Q1 2024 compared to Q1 2023, driven by a rise in membership[299] - The gross profit margin for hospitality improved to 22.9% from 6.5% year-over-year, reflecting operational efficiencies from new assets[273] - Total expenses for the hospitality segment rose to $37.9 million in Q1 2024, compared to $27.1 million in Q1 2023, an increase of 39.0%[298] Residential Segment - The hospitality segment's operating revenue increased to 45.6% in Q1 2024 from 34.1% in Q1 2023, while the residential segment decreased to 35.1% from 38.4%[223] - Residential real estate revenue rose by $2.8 million, or 10.0%, to $30.8 million, with gross profit increasing to $15.8 million, reflecting a gross margin of 51.3%[266] - Total revenue for the residential segment increased to $30.8 million in Q1 2024, up from $28.0 million in Q1 2023, representing a growth of 10.0%[289] - The number of homes sold in the Latitude Margaritaville Watersound JV increased to 177 in Q1 2024 from 149 in Q1 2023, reflecting a growth of 18.8%[283] - Gross margin for residential homesites improved to 50.0% in Q1 2024, up from 41.0% in Q1 2023[292] Development and Projects - The company plans to enhance the value of its real estate assets through the development of residential, commercial, and hospitality projects[215] - The company is constructing the Residence Inn Panama City Beach Pier Park, which opened in April 2024, as part of its commercial segment[239] - The company is developing an 87-acre medical campus in partnership with Florida State University and Tallahassee Memorial Hospital[246] - The company has various hospitality projects in planning stages, indicating potential future growth in the sector[242] - The residential homesite pipeline includes a total of 21,503 homesites across various communities[229] Financial Position and Cash Flow - As of March 31, 2024, cash, cash equivalents, and restricted cash totaled $94.2 million, up from $64.2 million at the end of Q1 2023, an increase of 46.7%[349] - Net cash provided by operating activities increased to $27.6 million in Q1 2024 from $19.2 million in Q1 2023, representing a 43.8% increase[350] - Net cash used in investing activities decreased to $14.7 million in Q1 2024 from $27.2 million in Q1 2023, a reduction of 46.1%[353] - Capital expenditures for operating property and equipment were $14.3 million in Q1 2024, down from $44.0 million in Q1 2023, a decrease of 67.5%[354] Debt and Interest Rates - As of March 31, 2024, the company had various loans outstanding totaling $457.4 million, with a weighted average effective interest rate of 5.3%[319] - Variable-rate debt outstanding as of March 31, 2024, totaled $195.7 million, with a weighted average interest rate of 7.6%[365] - A hypothetical 100 basis point increase in interest rates would result in an increase to annual interest expense of $1.5 million based on the outstanding balance of variable-rate loans[365] - The company has entered into interest rate swap agreements to manage interest rate risk on some of its variable-rate debt[364] Operational Metrics - The hotel portfolio consists of 1,177 operational rooms and an additional 121 rooms under development, totaling 1,298 rooms[240] - The company had 1,053 operational hotel rooms as of March 31, 2024, an increase of 561 rooms from 492 operational hotel rooms as of March 31, 2023[302] - Multi-family units total 1,128, with an occupancy rate of 83% as of March 31, 2024, compared to 79% in December 2023[248] - Senior living communities have 255 units, with only 45% leased as of March 31, 2024, down from 99% in December 2023[248] - The Watersound Town Center has 137,921 square feet completed, with an occupancy rate of 89% as of March 31, 2024[258]