The St. Joe Company Reports Full Year and Fourth Quarter 2012 Results
The St. Joe Company (NYSE: JOE) today announced Net Profit for the full
year ended 2012 of $6.0 million, or $0.07 per share. This compares to a
Net Loss of $(330.3) million, or $(3.58) per share for the year 2011,
which included pre-tax non-cash impairment charges of $377.3 million, or
$3.52 per share after tax.
For the fourth quarter of 2012, St. Joe had a Net Loss of $(8.6)
million, or $(0.09) per share. This compares to a Net Loss of $(328.6)
million, or $(3.56) per share, for the fourth quarter of 2011, which
included pre-tax non-cash impairment charges of $374.8 million, or $3.50
per share after-tax.
2012 highlights include:
-
The number of residential units sold increased from 133 units in 2011
to 158 units in 2012. Pricing also improved, particularly in the
Company’s resort communities. The combination of higher pricing and a
greater number of units sold contributed to a revenue increase of 81%
in residential real estate sales in 2012 compared to 2011.
-
Tons of timber sold increased approximately 19% year over year because
the Company opened more of the Company’s land to timber harvesting,
and our investments in technology and infrastructure had a positive
impact on production.
-
Revenue in the Company’s resorts, leisure and leasing operations
business grew approximately 16% in 2012 compared to 2011 due to a
strong summer vacation season as well as the commencement of rent for
two commercial leases, one at Port St. Joe and the other at Venture
Crossings, in the latter half of 2012.
-
Real estate sales in the Company’s rural land businesses was
positively and significantly impacted by the sale of two non-strategic
pieces of property totaling 3,240 acres at an average price of $5,655
per acre, or $18.3 million in total.
-
Operating and corporate expenses declined $18.8 million compared to
2011 as a result of lower legal fees, decreased pension charges and
reduced stock-based compensation charges.
-
The Company prepaid $19.3 million of debt at its RiverTown project
related to infrastructure and community improvement projects. By
prepaying the debt, the Company will save approximately $6.0 million
in interest expense over the next four and half years.
Park Brady, St. Joe’s Chief Executive Officer, said, “We’re very happy
with our progress in 2012. Operating results in each of our businesses
improved compared to 2011. Our residential development business, in
particular, experienced improving trends in sales volume and pricing and
that momentum appears to be carrying forward into 2013. Although the
economic recovery is still slow, we are optimistic about future growth
in our businesses.”
Mr. Brady continued, “We’re excited about our key initiatives in 2013.
For example, we believe that the retiree demographic presents us with a
unique opportunity given our development expertise and the fact that we
own a substantial amount of contiguous land located in a desirable part
of the country. To that end, we’ve been working with the best active
adult community planners and consultants in the country and
collaborating with national builders to bring that concept to reality.
Another unique opportunity is the Port at Port St Joe. Our Port boasts
the shortest distance to the Panama Canal of any port in the United
States. That fact coupled with the long term growth prospects for the
Southeast will be, we believe, the basis for building a vibrant port
within the next few years. Both of these initiatives are longer term in
nature but you will see evidence of our progress in 2013.”
Mr. Brady concluded, “In addition to these initiatives we continue to
evaluate all of our assets to determine their best use in creating long
term shareholder value. We’re excited about the potential opportunities
represented by our assets, especially against the backdrop of an
improving economy.”
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FINANCIAL DATA
($ in millions except share and per share amounts)
Consolidated Statements of Operations
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Quarter Ended Dec. 31,
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Year Ended Dec. 31,
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2012
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2011
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2012
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2011
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Revenues
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|
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Real estate sales
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$4.6
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$5.7
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$56.0
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$20.4
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Resort, leisure and leasing revenues
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7.8
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6.4
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44.4
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38.2
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Timber sales
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10.2
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7.7
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39.0
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86.7
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Total revenues
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22.6
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19.8
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139.4
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145.3
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Expenses
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Cost of real estate sales
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3.1
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3.2
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28.2
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11.5
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Cost of resort, leisure and leasing revenues
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7.9
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7.4
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39.1
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37.1
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Cost of timber sales
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6.0
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5.5
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24.0
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22.9
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Other operating expenses
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3.9
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4.3
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15.3
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22.3
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Corporate expense, net
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3.4
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3.3
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15.9
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27.8
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Depreciation, depletion and amortization
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2.9
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2.9
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10.1
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15.8
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Pension charges
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2.1
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1.0
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2.1
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5.9
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Impairment losses
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2.6
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374.8
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2.6
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377.3
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Restructuring charge
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--
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0.8
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--
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11.5
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Total expenses
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31.9
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403.2
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137.3
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532.1
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Operating income (loss)
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(9.3)
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(383.4)
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2.1
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(386.8)
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Other income, net
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0.1
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--
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4.3
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0.9
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Income (loss) from operations before equity in loss from
unconsolidated affiliates and income taxes
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(9.2)
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(383.4)
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6.4
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(385.9)
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Equity loss from unconsolidated affiliates
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--
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--
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--
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--
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Income tax (benefit) expense
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(0.5)
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(54.8)
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0.4
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(55.6)
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Net income (loss)
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$(8.7)
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$(328.6)
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$6.0
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$(330.3)
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Net income (loss) per share
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$(0.09)
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$(3.56)
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$0.07
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$(3.58)
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Weighted average shares
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92,288,165
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92,212,125
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92,258,110
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92,235,360
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Revenues by Segment
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Quarter Ended Dec. 31,
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Year Ended Dec. 31,
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2012
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2011
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2012
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2011
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Revenues:
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|
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Real estate sales
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|
|
|
|
|
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|
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Residential
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$4.5
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$3.4
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$22.1
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$12.6
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Commercial
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0.1
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1.7
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10.4
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3.8
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Rural land and other
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--
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0.6
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23.5
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4.0
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Total real estate sales
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4.6
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5.7
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56.0
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20.4
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Resort, leisure and leasing revenues
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7.8
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6.4
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44.4
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38.2
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Timber sales
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10.2
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7.7
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39.0
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86.7
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Total revenues
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$22.6
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$19.7
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$139.4
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$145.3
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Summary Balance Sheet
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December 31, 2012
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December 31, 2011
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Assets
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Investment in real estate
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$370.6
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$387.2
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Cash and cash equivalents
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166.0
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162.4
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Notes receivable, net
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4.0
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4.6
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Pledged treasury securities
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26.8
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23.3
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Prepaid pension asset
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33.4
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35.1
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Property and equipment, net
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12.1
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14.9
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Income taxes receivable
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0.2
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0.1
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Deferred tax asset
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12.0
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11.7
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Other assets
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20.4
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22.0
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Total assets
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$645.5
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$661.3
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Liabilities and Equity
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Debt
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$36.1
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$53.5
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Accounts payable, accrued liabilities and deferred credits
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57.1
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63.9
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Total liabilities
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$93.2
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$117.4
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Total equity
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552.3
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543.9
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Total liabilities and equity
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$645.5
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$661.3
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Debt Schedule
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December 31, 2012
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December 31, 2011
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In substance-defeased debt
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$26.8
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$23.3
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Community Development District debt
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9.3
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30.2
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Total debt
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$36.1
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$53.5
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Other Operating and Corporate Expenses, Net
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Quarter Ended Dec. 31,
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Year Ended Dec. 31,
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2012
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2011
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2012
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2011
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Employee costs
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$2.9
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$1.4
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$11.4
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$5.4 (1)(2) |
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Non-cash stock compensation costs
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--
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(0.1)
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0.9
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8.5
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Occupancy, repairs and maintenance
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0.3
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0.8
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1.2
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3.4
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Professional fees
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1.7
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2.4(3) |
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5.3
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16.8 (3) |
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Marketing and homeowner association cost
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0.4
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0.7
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2.1
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2.8
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Property taxes and insurance
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1.7
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1.5
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7.9
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8.5
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Other
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0.4
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0.6
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1.7
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2.3
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Pension expense
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--
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0.4
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0.9
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3.3 (1) |
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Capitalized costs
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(0.1)
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(0.1)
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(0.2)
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(0.9)
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Total other operating and corporate expense, net
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$7.3
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$7.6
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$31.2
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$50.1
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(1) Includes a $1.4 million transfer of Supplemental
Executive Retirement Program (“SERP”) liability to the Company’s Pension
Plan, resulting in a decrease to employee costs and an increase to
pension expense.
(2) Includes income of $5.5 million resulting from the
termination of retiree medical benefits.
(3) Includes $1.4 million and $11.7 million in the three
months and year ended December 31, 2011, respectively, for legal fees
due to defending the securities class action lawsuit, responding to the
SEC inquiry, pursuing the claims against the parties St. Joe believes
are responsible for the Deepwater Horizon oil spill, litigation related
to a contract dispute, and legal costs incurred in connection with the
change in control of the Board and other corporate governance matters.
Additional Information
Additional information with respect to the Company’s results for 2012
will be available in a Form 10-K that will be filed with the Securities
and Exchange Commission.
Important Notice Regarding Forward-Looking
Statements
This press release includes forward-looking statements, including
statements regarding our key initiatives in 2013, such as the
development of adult active communities and the Port at Port St. Joe.
This information is qualified in its entirety by cautionary statements
and risk factor disclosures contained in the Company’s Securities and
Exchange Commission filings, including the Company’s annual report on
Form 10-K filed with the Commission on February 27, 2012. The Company
wishes to caution readers that certain important factors may have
affected and could in the future affect the Company’s actual results and
could cause the Company’s actual results for subsequent periods to
differ materially from those expressed in any forward-looking statement
made by or on behalf of the Company, including (1) the Company’s ability
to capitalize on opportunities relating to retirement communities and
the Port at Port St. Joe, and the Company’s ability to successfully
engage in strategic partnerships; (2) the Company’s ability to manage
its cost structure; (3) economic or other conditions that affect the
desire or ability of the Company’s customers to purchase or enter into
leases for its properties, such as reductions in the availability of
mortgage financing or property insurance, increases in foreclosures,
interest rates, the cost of property insurance, inflation, or
unemployment rates or declines in consumer confidence or the demand for,
or the prices of, housing; (4) the Company’s ability to successfully and
timely obtain land use entitlements and construction financing, and
address issues that arise in connection with the use and development of
its land; and (5) the impact of natural or manmade disasters or weather
conditions, including hurricanes and other severe weather conditions, on
the Company’s business.
About St. Joe
The St. Joe Company is a Florida-based real estate developer and
manager. The Company owns approximately 567,000 acres of land
concentrated primarily in Northwest Florida and has significant
residential and commercial land-use entitlements in hand or in process.
The majority of land not under development is used for the growing and
selling of timber or is available for sale. The Company also owns
various commercial, resort and club properties. More information about
the Company can be found on its website at www.joe.com.
© 2013, The St. Joe Company. “St. Joe,” “VentureCrossings,” “
Breakfast Point,” “RiverTown,” and the "Taking Flight" design are
service marks of The St. Joe Company.
