The St. Joe Company (NYSE: JOE) (the “Company”) today announced a Net
Loss for the fourth quarter of 2014 of $11.1 million, or $0.12 per
share, compared with Net Income of $0.5 million, or $0.00 per share, for
the fourth quarter of 2013. Net loss for the fourth quarter of 2014
includes $11.3 million of expense related to the previously announced
termination of the Company’s Pension Plan, which includes a non-cash
charge of $6.5 million and excise taxes of $4.8 million. In December
2014, the Company received the remaining plan assets of $23.8 million of
cash prior to paying the excise taxes.
For the full year ended December 31, 2014, the Company reported pretax
income of $521.8 million as compared to $4.5 million for the prior year.
Net Income for the full year of 2014 was $406.5 million, or $4.40 per
share, compared to Net Income of $5.0 million, or $0.05 per share, for
full year of 2013.
Revenue for the fourth quarter of 2014 was $15.7 million as compared to
$33.9 million in the fourth quarter of 2013. The Company’s fourth
quarter revenue was generated from $4.4 million of real estate sales,
$10.1 million from resort, leisure and leasing operations and $1.2
million of timber sales. For the full year of 2014, the Company
generated $701.9 million in revenue as compared to $131.2 million for
the full year of 2013.
As of December 31, 2014, the Company had cash, cash equivalents and
investments of $671.4 million, as compared to $168.9 million as of
December 31, 2013.
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FINANCIAL DATA
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Consolidated Results
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($ in millions except share and per share amounts)
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Quarter Ended
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Year Ended
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December 31,
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December 31,
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2014
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2013
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2014
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2013
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Revenues
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Real estate sales
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$4.4
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$17.2
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$634.9
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$45.0
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Resorts, leisure and leasing revenues
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10.1
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8.4
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55.5
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50.8
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Timber sales
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1.2
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8.3
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11.5
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35.4
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Total revenues
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15.7
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33.9
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701.9
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131.2
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Expenses
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Cost of real estate sales
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2.3
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8.6
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86.6
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24.3
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Cost of resorts, leisure and leasing revenues
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9.5
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7.6
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45.7
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41.1
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Cost of timber sales
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0.2
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4.9
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4.5
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21.5
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Other operating expenses
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3.7
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3.6
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13.5
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12.3
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Corporate expenses
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2.5
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3.4
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12.7
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15.5
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Administrative costs associated with special purpose entities
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--
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--
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3.7
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--
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Depreciation, depletion and amortization
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2.2
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2.2
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8.4
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9.1
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Impairment losses
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--
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5.1
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--
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5.1
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Pension charges
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11.3
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0.5
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13.5
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1.5
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Total expenses
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31.7
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35.9
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188.6
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130.4
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Operating (loss) income
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(16.0)
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(2.0)
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513.3
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0.8
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Other income
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5.1
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1.8
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8.5
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3.7
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(Loss) income from operations before equity in loss from
unconsolidated affiliates and income taxes
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(10.9)
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(0.2)
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521.8
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4.5
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Equity in income from unconsolidated affiliates
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--
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0.1
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--
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0.1
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Income tax (benefit) expense
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0.3
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(0.6)
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115.5
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(0.4)
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Net (loss) income
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(11.2)
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0.5
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406.3
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5.0
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Net loss attributable to non-controlling interest
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0.1
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--
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0.2
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--
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Net (loss) income attributable to the Company
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(11.1)
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$0.5
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$406.5
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$5.0
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Net (loss) income per share attributable to the Company
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$(0.12)
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$--
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$4.40
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$0.05
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Weighted average shares outstanding
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92,297,467
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92,293,378
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92,297,467
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92,285,888
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Revenues by Segment
($ in millions)
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Quarter Ended
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Year Ended
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December 31,
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December 31,
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2014
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2013
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2014
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2013
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Revenues:
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Real estate sales
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Residential
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$4.3
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$9.7
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$17.8
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$33.7
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RiverTown Sale
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--
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7.4
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43.6
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10.9
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Commercial
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--
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--
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3.3
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--
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AgReserves Sale and other
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0.1
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0.1
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570.2
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0.4
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Total real estate sales
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4.4
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17.2
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634.9
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45.0
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Resorts, leisure and leasing revenues
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10.1
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8.4
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55.5
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50.8
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Timber sales
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1.2
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8.3
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11.5
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35.4
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Total revenues
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$15.7
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$33.9
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$701.9
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$131.2
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Summary Balance Sheet
($ in millions)
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December 31, 2014
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December 31, 2013
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Assets
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Investment in real estate, net
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$321.8
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$385.0
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Cash and cash equivalents
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34.5
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21.9
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Investments
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636.9
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147.0
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Restricted investments
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7.9
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--
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Notes receivable, net
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24.3
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7.3
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Pledged treasury securities
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25.7
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26.3
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Prepaid pension asset
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--
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35.1
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Property and equipment, net
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10.2
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11.4
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Deferred tax asset
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--
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12.9
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Other assets
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32.0
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22.6
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Investments held by special purpose entities
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209.8
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--
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Total assets
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$1,303.1
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$669.5
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Liabilities and Equity
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Debt
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63.8
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$44.2
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Senior Notes held by special purpose entity
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177.3
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--
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Accounts payable, accrued liabilities and deferred credits
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47.5
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61.8
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Deferred tax liabilities
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34.8
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--
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Total liabilities
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323.4
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106.0
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Total equity
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979.7
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563.5
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Total liabilities and equity
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$1,303.1
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$669.5
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Debt Schedule
($ in millions)
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December 31, 2014
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December 31, 2013
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In substance defeased debt
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$25.7
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$26.3
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Community Development District debt
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6.5
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11.5
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Pier Park North joint venture – construction loan
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31.6
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6.4
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Total debt
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$63.8
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$44.2
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Other Operating and Corporate Expenses
($ in millions)
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Quarter Ended
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Year Ended
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December 31,
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December 31,
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2014
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2013
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2014
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2013
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Employee costs
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$1.5
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$2.6
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$8.4
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$11.2
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AgReserves Sale severance
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--
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--
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1.2
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--
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Non-cash stock compensation costs
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--
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--
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0.2
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--
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Property taxes and insurance
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1.5
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2.4
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6.3
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7.6
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Professional fees
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1.4
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1.1
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5.2
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4.9
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Marketing and owner association costs
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0.5
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0.4
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1.6
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1.8
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Occupancy, repairs and maintenance
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0.3
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0.3
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0.9
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0.7
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Other
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1.0
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0.2
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2.4
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1.6
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Total other operating and corporate expense
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$6.2
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$7.0
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$26.2
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$27.8
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Additional Information and Where to Find It
Additional information with respect to the Company’s results for the
full year and fourth quarter of 2014 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 the Company’s expectations regarding the Company’s
business strategy and future operations. 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) changes in the Company’s strategic
objectives, including any such changes implemented as a result of our
planned CEO search; (2) economic or other conditions that affect the
future prospects for the Southeastern region of the United States and
the demand for the Company’s products, including a slowing of the
population growth in Florida, inflation, or unemployment rates or
declines in consumer confidence or the demand for, or the prices of,
housing; (3) pending or future regulatory or legislative actions,
accounting changes or litigation that could adversely affect the
Company; (4) the impact of natural or man-made disasters or weather
conditions, including hurricanes and other severe weather conditions, on
the Company’s business; (5) changes in the Company’s customer base and
the mix of homesites available for sale in its residential real estate;
(6) changes in the cyclical nature of the Company’s real estate
operations; (6) the Company’s ability to capitalize on its leasing
operations in the Pier Park North joint venture; (7) the Company’s
ability to effectively execute its strategy in resort and leisure
operations; (8) the Company’s ability to capitalize on opportunities
relating to its planned mixed use and active adult communities,
including its 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, including the
permits required for the launch of its planned mixed use and active
adult communities; (9) the realization of any unrealized losses related
to the Company’s investments, including any potential further downturns
in the Company’s corporate debt securities or any other of its
investments; and (10) the Company’s ability to effectively deploy and
invest its assets, including available-for-sale securities as well as
the 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 28, 2014 as updated by subsequent Quarterly Reports on Form
10-Qs and other current report filings.
About The St. Joe Company
The St. Joe Company together with its consolidated subsidiaries is a
real estate development and operating company with real estate assets
and operations concentrated primarily between Tallahassee and Destin,
Florida. The Company uses these assets in its residential or commercial
real estate developments, resorts, leisure and leasing operations or its
forestry operations. More information about the Company can be found on
its website at www.joe.com.
© 2015, The St. Joe Company. “St. Joe®”, “JOE®”, the “Taking Flight”
Design®, “St. Joe (and Taking Flight Design)®” are registered service
marks of The St. Joe Company.
Copyright Business Wire 2015