The St. Joe Company (JOE) reported fourth-quarter 2014 net loss of $11.1 million, or 12 cents per share of loss against net income of $0.5 million, or zero cents per share in the year-ago quarter. The Zacks Consensus Estimate for the quarter was pegged at a loss of 16 cents per share.
This loss emanated from $11.3 million of expense associated with the previously announced termination of the company’s pension plan. That includes a non-cash charge of $6.5 million and excise taxes of $4.8 million.
The company’s total revenue for the quarter came in at $15.7 million, down 53.7% from the year-ago quarter, reflecting a decline in both real estate and timber sales.
For full year 2014, the company reported net income of $406.5 million or $4.40 per share, compared with $5.0 million or 5 cents per share for full year 2013. Full-year revenues jumped to $701.9 million in 2014 from $131.2 million in 2013.
Quarter in Detail
Real Estate sales plunged to $4.4 million from $17.2 million reported in the prior-year quarter. The substantial decrease stemmed from a decline in Residential Real Estate revenues. Timber sales, too, declined to $1.2 million from $8.3 million in the comparable period last year.
Nevertheless, the company’s resorts, leisure and leasing segment performance offered some cushion to this downside. This segment’s revenues grew 20.2% year over year to $10.1 million.
Finally, the company exited 2014 with cash, cash equivalents and investments of $671.4 million, as compared with $168.9 million as of the prior-year end.
Our Viewpoint
The fourth-quarter loss at St. Joe is discouraging and in fact, the decline in sales revenue from a number of its segments adds to our concerns. However, in the long run, we believe that the company’s focus on enhancing its resort-based operations would help it recover the profitability.
St. Joe currently has a Zacks Rank #3 (Hold). Investors interested in the real estate industry may consider other stocks like Altisource Residential Corporation (RESI), Brookfield Residential Properties Inc. (BRP) and Alexander & Baldwin, Inc. (ALEX). While Altisource Residential and Brookfield Residential sport a Zacks Rank #1 (Strong Buy), Alexander & Baldwin holds a Zacks Rank #2 (Buy).
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