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Sep 30, 2020

St. Joe Q3 2020 Earnings Report

St. Joe's Q3 2020 results were announced, showing revenue growth across all segments and the initiation of a quarterly dividend program.

Key Takeaways

St. Joe Company reported a 28% increase in total revenue to $42.0 million for Q3 2020, compared to $32.8 million in Q3 2019. This growth was driven by increases in real estate, leasing, and hospitality revenues. The company's operating income increased by 49%, and net income rose by 37% to $7.8 million, or $0.13 per share.

Total revenue increased by 28% to $42.0 million compared to Q3 2019.

Real estate revenue increased by 37%, hospitality revenue increased by 21%, and leasing revenue increased by 22%.

Operating income increased by 49% compared to the same period in 2019.

The Board of Directors authorized a new quarterly cash dividend program, declaring a dividend of $0.07 per share.

Total Revenue
$42M
Previous year: $32.8M
+28.0%
EPS
$0.13
Previous year: $0.1
+30.0%
Residential Homesites Sold
162
Previous year: 94
+72.3%
Gross Profit
$19.4M
Cash and Equivalents
$102M
Free Cash Flow
$9.05M
Total Assets
$1B

St. Joe

St. Joe

St. Joe Revenue by Segment

Forward Guidance

The company anticipates continued progress in operations, revenue growth, and bottom-line expectations from new projects and phases. They expect revenues from sales of residential homesites, continued cost discipline, and growth of the dividend with earnings.

Positive Outlook

  • Expected revenues from sales of residential homesites
  • Continued cost discipline to maintain an efficient cost structure
  • Capital allocation initiatives, including the timing and amount of dividends
  • Timing of new projects in 2020
  • Continued progress in operations, including revenue growth and bottom line expectations from new projects or phases

Challenges Ahead

  • Potential impacts of the ongoing COVID-19 pandemic
  • Changes in strategic objectives or the ability to successfully implement such strategic objectives
  • Ability to successfully execute newer business ventures, including expansion of portfolio of income producing commercial and multi-family properties, assisted living communities and hotels some or all of which may be negatively impacted by the COVID-19 pandemic
  • Potential negative impact of longer-term property development strategy, including losses and negative cash flows for an extended period of time if self-development of granted entitlements continues
  • Significant decreases in the market value of investments in securities or any other investments

Revenue & Expenses

Visualization of income flow from segment revenue to net income