April 27, 2022 at 4:10 PM EDT
PDF Version
Revenue for the first quarter of 2022 increased by 57% to $64.9 million, as compared to $41.3 million for the first quarter of 2021. Revenue growth includes a 75% increase in real estate revenue, a 57% increase in leasing revenue and a 24% increase in hospitality revenue. Operating income increased by 267% to $20.2 million for the three months ended March 31, 2022, as compared to $5.5 million for the three months ended March 31, 2021. Net income for the first quarter of 2022 increased by 319% to $13.4 million, or $0.23 per share, compared to net income of $3.2 million, or $0.05 per share, for the same period in 2021.
Net Cash Provided by Operating Activities for the three months ended March 31, 2022, increased by 102% to $19.8 million, compared to $9.8 million for the same period in 2021. Cash Generated for Distribution or Investment (“CGFDI”), a non-GAAP measure that is detailed in the Financial Data included below, for the three months ended March 31, 2022, increased by 115% to $43.4 million, compared to $20.2 million for the same period in 2021.
On April 27, 2022, the Board of Directors declared a cash dividend of $0.10 per share on the Company’s common stock, payable on June 9, 2022, to shareholders of record as of the close of business on May 11, 2022.
Jorge Gonzalez, the Company’s President and Chief Executive Officer, said, “We have continued to build upon the success of 2021 by increasing revenue by 57% and net income by 319% in the first quarter of 2022, as compared to the first quarter of 2021. We also increased our dividend payout in the first quarter of 2022 by 25% while lowering our corporate and other operating expenses by 21%. All three of our reportable segments experienced significant revenue growth in the quarter. As of March 31, 2022, we had a record backlog with 2,294 homesites under contract as well as 527 Latitude Margaritaville Watersound homes under contract, which together are expected to result in sales value in excess of $400 million at closing. We have three additional hotels planned to open in 2022 which will add 415 rooms to our hotel portfolio. Further, an additional 65,000 square feet of rentable space, currently under construction and expected to be completed this year, will move the total rentable portfolio above 1 million square feet. And finally, the multi-family and senior living portfolio of completed units is approaching 1,000 units with four additional projects in construction. With so many of our projects in construction, we are excited to continue to build upon our profit growth with each new opening.”
Mr. Gonzalez continued, “While we had a strong first quarter of 2022 with demand growing across our segments, we continue to feel the impact from supply chain disruptions, which extended deliveries by a few months in residential communities like Latitude Margaritaville Watersound. It is important to point out that these delayed deliveries are a matter of timing, and they are not lost. Residential backlog continues to grow with a record number of homesites and homes. Demand continues to exceed supply. Our homebuilder partners seek more homesites and additional communities. The majority of the luxury homesites at Watersound Camp Creek went under contract within 48 hours after being released for sale on our web site: www.joe.com/community/watersound-camp-creek. Multi-family rentals continue to be occupied by tenants almost immediately upon opening. We are also expanding our rental offerings with new village townhomes.”
Mr. Gonzalez concluded, “We continue to see more buyers move into our residential and multi-family communities from a broader range of states across the country. We believe the domestic migration tailwinds will continue to support demand in our area well into the future. As stated in my recent letter to our shareholders, we believe our area is experiencing a tipping point of growth. Combined with the scale of our land holdings, entitlements, resources, management and execution capabilities, we believe we are positioned like few other diversified real estate companies for multi-generational value creation.”
Real Estate
Real estate revenue increased by 75% to $36.8 million in the first quarter of 2022, as compared to $21.0 million in the first quarter of 2021. The Company sold 181 homesites at an average price of approximately $150,000, with gross margin of 57%, in the first quarter of 2022, as compared to 203 homesites at an average price of approximately $73,000, with gross margin of 51%, in the first quarter of 2021. The difference in the average sales price, number of homesite closings and gross margin was due to the mix of sales in different communities.
As of March 31, 2022, the Company had 2,294 residential homesites under contract, which are expected to result in revenue of approximately $175.6 million over the next several years, as compared to 1,268 residential homesites under contract for $114.0 million as of March 31, 2021.
Latitude Margaritaville Watersound unconsolidated joint venture development, planned for 3,500 residential homes, had 157 net sale contracts executed in the first quarter of 2022. Since sale inception in 2021, there have been 592 net sale contracts in the community. For the first quarter of 2022, there were 18 completed home sale transactions bringing the total in the community to 65 homes. In addition, in the first quarter of 2022, there were 122 home starts, bringing the total community home starts to 354. The 527 homes under contract as of March 31, 2022, are expected to result in a sales value of approximately $243.8 million at closing.
Hospitality
Hospitality revenue increased by 24% to $16.3 million in the first quarter of 2022, as compared to $13.1 million in the first quarter of 2021. Hospitality revenue continues to benefit from the growth of the Watersound Club membership program and increased visitor activity. As of March 31, 2022, the Company had 2,271 members as compared to 1,722 members as of March 31, 2021. As of March 31, 2022, the Company owned (individually by the Company or through an unconsolidated joint venture) and/or managed six hotels with 524 operational hotel rooms, as compared to 250 hotel rooms as of March 31, 2021. In addition, there are five new hotels under construction planned for 646 hotel rooms, of which 415 rooms are expected to become operational in 2022. The Company plans to manage these new hotels.
Homewood Suites by Hilton hotel at the Panama City Beach Sports Complex opened to guests in March 2022. Camp Creek Inn, with expansive adjacent club amenities and The Lodge 30A are scheduled to open later this year. Embassy Suites by Hilton in the Pier Park area of Panama City Beach, Hotel Indigo in Panama City’s waterfront district and the Home2 Suites by Hilton hotel in Santa Rosa Beach will follow. In addition, Watercolor Inn is expanding with seven new suites and new amenities. When complete, operational hotel rooms and suites are expected to increase to 1,177.
The Point South Marina Bay Point, with 127 wet slips, and Point South Marina Port St. Joe, with 252 dry slips and 48 wet slips, plan to begin operations this spring. The Company is planning to build and/or operate additional marinas.
Leasing
Leasing revenue from commercial, retail, multi-family, senior living, self-storage and other properties increased by approximately 57% to $8.8 million in the first quarter of 2022, compared to the same period in 2021. As of March 31, 2022, the Company, through consolidated and unconsolidated joint ventures, had 984 completed multi-family and senior living units with an additional 668 units under construction.
Rentable space as of March 31, 2022, consisted of approximately 981,000 square feet, of which approximately 883,000, or 90%, was leased, compared to approximately 907,000 square feet as of March 31, 2021, of which approximately 780,000, or 86%, was leased. The Company has an additional 65,000 square feet of rentable space under construction which is expected to be completed in 2022.
The Company, wholly or through joint ventures, owns or operates businesses on real estate that would otherwise be leased to others. In February 2022, the Company entered into a joint venture agreement, which will be unconsolidated and operated by our joint venture partner, to sell and service golf carts and low speed electric vehicles at the new Watersound West Bay Center adjacent to the Latitude Margaritaville Watersound residential community in Panama City Beach, Florida and a sales showroom at the Watersound Town Center near the Watersound Origins residential community.
Corporate and Other Operating Expenses
The Company’s corporate and other operating expenses for the first quarter of 2022 decreased by 21% to $5.6 million as compared to $7.1 million for the first quarter of 2021.
Liquidity
In the first quarter of 2022, the Company funded $79.0 million in capital expenditures. In addition, the Company paid $5.9 million in cash dividends. As of March 31, 2022, the Company had $151.8 million in cash, cash equivalents and other liquid investments as compared to $147.9 million as of March 31, 2021.
Additional Information and Where to Find It
Additional information with respect to the Company’s results for the first quarter of 2022 will be available in a Form 10-Q that will be filed with the Securities and Exchange Commission (“SEC”) and can be found at www.joe.com and at the SEC’s website www.sec.gov.
PDF Version
- Revenue increased by 57% to $64.9 million compared to $41.3 million in 2021
- Net Income increased by 319% to $13.4 million compared to $3.2 million in 2021
- Net Cash Provided by Operating Activities increased by 102% to $19.8 million compared to $9.8 million in 2021
Revenue for the first quarter of 2022 increased by 57% to $64.9 million, as compared to $41.3 million for the first quarter of 2021. Revenue growth includes a 75% increase in real estate revenue, a 57% increase in leasing revenue and a 24% increase in hospitality revenue. Operating income increased by 267% to $20.2 million for the three months ended March 31, 2022, as compared to $5.5 million for the three months ended March 31, 2021. Net income for the first quarter of 2022 increased by 319% to $13.4 million, or $0.23 per share, compared to net income of $3.2 million, or $0.05 per share, for the same period in 2021.
Net Cash Provided by Operating Activities for the three months ended March 31, 2022, increased by 102% to $19.8 million, compared to $9.8 million for the same period in 2021. Cash Generated for Distribution or Investment (“CGFDI”), a non-GAAP measure that is detailed in the Financial Data included below, for the three months ended March 31, 2022, increased by 115% to $43.4 million, compared to $20.2 million for the same period in 2021.
On April 27, 2022, the Board of Directors declared a cash dividend of $0.10 per share on the Company’s common stock, payable on June 9, 2022, to shareholders of record as of the close of business on May 11, 2022.
Jorge Gonzalez, the Company’s President and Chief Executive Officer, said, “We have continued to build upon the success of 2021 by increasing revenue by 57% and net income by 319% in the first quarter of 2022, as compared to the first quarter of 2021. We also increased our dividend payout in the first quarter of 2022 by 25% while lowering our corporate and other operating expenses by 21%. All three of our reportable segments experienced significant revenue growth in the quarter. As of March 31, 2022, we had a record backlog with 2,294 homesites under contract as well as 527 Latitude Margaritaville Watersound homes under contract, which together are expected to result in sales value in excess of $400 million at closing. We have three additional hotels planned to open in 2022 which will add 415 rooms to our hotel portfolio. Further, an additional 65,000 square feet of rentable space, currently under construction and expected to be completed this year, will move the total rentable portfolio above 1 million square feet. And finally, the multi-family and senior living portfolio of completed units is approaching 1,000 units with four additional projects in construction. With so many of our projects in construction, we are excited to continue to build upon our profit growth with each new opening.”
Mr. Gonzalez continued, “While we had a strong first quarter of 2022 with demand growing across our segments, we continue to feel the impact from supply chain disruptions, which extended deliveries by a few months in residential communities like Latitude Margaritaville Watersound. It is important to point out that these delayed deliveries are a matter of timing, and they are not lost. Residential backlog continues to grow with a record number of homesites and homes. Demand continues to exceed supply. Our homebuilder partners seek more homesites and additional communities. The majority of the luxury homesites at Watersound Camp Creek went under contract within 48 hours after being released for sale on our web site: www.joe.com/community/watersound-camp-creek. Multi-family rentals continue to be occupied by tenants almost immediately upon opening. We are also expanding our rental offerings with new village townhomes.”
Mr. Gonzalez concluded, “We continue to see more buyers move into our residential and multi-family communities from a broader range of states across the country. We believe the domestic migration tailwinds will continue to support demand in our area well into the future. As stated in my recent letter to our shareholders, we believe our area is experiencing a tipping point of growth. Combined with the scale of our land holdings, entitlements, resources, management and execution capabilities, we believe we are positioned like few other diversified real estate companies for multi-generational value creation.”
Real Estate
Real estate revenue increased by 75% to $36.8 million in the first quarter of 2022, as compared to $21.0 million in the first quarter of 2021. The Company sold 181 homesites at an average price of approximately $150,000, with gross margin of 57%, in the first quarter of 2022, as compared to 203 homesites at an average price of approximately $73,000, with gross margin of 51%, in the first quarter of 2021. The difference in the average sales price, number of homesite closings and gross margin was due to the mix of sales in different communities.
As of March 31, 2022, the Company had 2,294 residential homesites under contract, which are expected to result in revenue of approximately $175.6 million over the next several years, as compared to 1,268 residential homesites under contract for $114.0 million as of March 31, 2021.
Latitude Margaritaville Watersound unconsolidated joint venture development, planned for 3,500 residential homes, had 157 net sale contracts executed in the first quarter of 2022. Since sale inception in 2021, there have been 592 net sale contracts in the community. For the first quarter of 2022, there were 18 completed home sale transactions bringing the total in the community to 65 homes. In addition, in the first quarter of 2022, there were 122 home starts, bringing the total community home starts to 354. The 527 homes under contract as of March 31, 2022, are expected to result in a sales value of approximately $243.8 million at closing.
Hospitality
Hospitality revenue increased by 24% to $16.3 million in the first quarter of 2022, as compared to $13.1 million in the first quarter of 2021. Hospitality revenue continues to benefit from the growth of the Watersound Club membership program and increased visitor activity. As of March 31, 2022, the Company had 2,271 members as compared to 1,722 members as of March 31, 2021. As of March 31, 2022, the Company owned (individually by the Company or through an unconsolidated joint venture) and/or managed six hotels with 524 operational hotel rooms, as compared to 250 hotel rooms as of March 31, 2021. In addition, there are five new hotels under construction planned for 646 hotel rooms, of which 415 rooms are expected to become operational in 2022. The Company plans to manage these new hotels.
Homewood Suites by Hilton hotel at the Panama City Beach Sports Complex opened to guests in March 2022. Camp Creek Inn, with expansive adjacent club amenities and The Lodge 30A are scheduled to open later this year. Embassy Suites by Hilton in the Pier Park area of Panama City Beach, Hotel Indigo in Panama City’s waterfront district and the Home2 Suites by Hilton hotel in Santa Rosa Beach will follow. In addition, Watercolor Inn is expanding with seven new suites and new amenities. When complete, operational hotel rooms and suites are expected to increase to 1,177.
The Point South Marina Bay Point, with 127 wet slips, and Point South Marina Port St. Joe, with 252 dry slips and 48 wet slips, plan to begin operations this spring. The Company is planning to build and/or operate additional marinas.
Leasing
Leasing revenue from commercial, retail, multi-family, senior living, self-storage and other properties increased by approximately 57% to $8.8 million in the first quarter of 2022, compared to the same period in 2021. As of March 31, 2022, the Company, through consolidated and unconsolidated joint ventures, had 984 completed multi-family and senior living units with an additional 668 units under construction.
Rentable space as of March 31, 2022, consisted of approximately 981,000 square feet, of which approximately 883,000, or 90%, was leased, compared to approximately 907,000 square feet as of March 31, 2021, of which approximately 780,000, or 86%, was leased. The Company has an additional 65,000 square feet of rentable space under construction which is expected to be completed in 2022.
The Company, wholly or through joint ventures, owns or operates businesses on real estate that would otherwise be leased to others. In February 2022, the Company entered into a joint venture agreement, which will be unconsolidated and operated by our joint venture partner, to sell and service golf carts and low speed electric vehicles at the new Watersound West Bay Center adjacent to the Latitude Margaritaville Watersound residential community in Panama City Beach, Florida and a sales showroom at the Watersound Town Center near the Watersound Origins residential community.
Corporate and Other Operating Expenses
The Company’s corporate and other operating expenses for the first quarter of 2022 decreased by 21% to $5.6 million as compared to $7.1 million for the first quarter of 2021.
Liquidity
In the first quarter of 2022, the Company funded $79.0 million in capital expenditures. In addition, the Company paid $5.9 million in cash dividends. As of March 31, 2022, the Company had $151.8 million in cash, cash equivalents and other liquid investments as compared to $147.9 million as of March 31, 2021.
Additional Information and Where to Find It
Additional information with respect to the Company’s results for the first quarter of 2022 will be available in a Form 10-Q that will be filed with the Securities and Exchange Commission (“SEC”) and can be found at www.joe.com and at the SEC’s website www.sec.gov.
