The St. Joe Company (JOE) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $111.6M, down 12.9% year-over-year, with hospitality revenue up 38.1% to a record and gross margin rising to 39.2% from 26.2% year-over-year.

• Net income for Q2 2024 was $24.5M (down 27.5%–29% year-over-year); EPS was $0.42 (down from $0.60); six-month net income was $37.6M–$38.4M (down 13.1%–15%).

• Dividend for Q3 2024 increased 16.7%–17% to $0.14 per share, doubling since Q4 2020.

• Over 22,500 homesites are in planning or development across 20 communities.

Financial highlights

• Hospitality revenue up 38% year-over-year in Q2 2024; leasing revenue up 19%; real estate revenue down 51%.

• Q2 2024 EBITDA was $49.2M (down 18%); first half EBITDA was $84.2M (flat year-over-year).

• 186 homesites sold in Q2 2024 (average price $140,000), down from 300 in Q2 2023 (average price $153,000).

• Cash and cash equivalents at June 30, 2024: $86.7M; total debt: $447.4M–$452.6M with a weighted average interest rate of 5.3%.

• Debt-to-equity ratio at June 30, 2024: 0.62.

Outlook and guidance

• Management expects continued strong demand across all segments, supported by net migration and limited housing supply, despite macroeconomic headwinds.

• Focus on recurring revenue streams and long-term shareholder value; pipeline includes significant expansion in hospitality and commercial leasing.

• Capital commitments will be funded with cash from completed projects, existing cash, partner capital, and financing.