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TheStreet Open House

The St. Joe Company Reports Second Quarter 2012 Results

The St. Joe Company (NYSE:JOE) today announced Net Income for the second quarter of 2012 of $0.2 million, or $0.00 per share, compared to a Net Loss of $(13.3) million, or $(0.14) per share for the second quarter of 2011. For the six months ended June 30, 2012, the Company reported a Net Loss of $(0.7) million or $(0.01) per share compared to Net Income of $0.8 million or $0.01 per share for the same period last year.

Revenue for the second quarter of 2012 increased to $30.4 million compared to $25.3 million in the second quarter of 2011, which is a 20.2% increase. For the six months ended June 30, 2012, the Company recorded $60.9 million in revenue compared to $98.7 million for the first six months of 2011. Included in the 2011 figure is a one-time timber deed transaction that added $54.5 million to revenue for the first six months of 2011. Excluding the effect of the timber deed, revenue in the first six months of 2012 increased to $60.9 million compared to $44.2 million in the first six months of 2011.

Highlights for the second quarter of 2012 compared to the second quarter of 2011 include:

  • The sale of residential homesites increased 68% quarter over quarter, from 25 units sold to 42 units sold. Sales of homesites increased in all of the Company’s communities but sales in primary communities, such as Rivertown and Breakfast Point, grew at a faster pace than sales in the resort communities. The sale of real estate in the Company’s commercial and rural land businesses was relatively unchanged quarter over quarter.
  • Tons of timber sold increased approximately 23% quarter over quarter because investments in planning and infrastructure enabled more efficient harvest operations compared to the second quarter of last year.
  • Revenue in the Company’s resorts and clubs business, which includes the WaterColor Inn and vacation rentals, grew approximately 14% quarter over quarter due to a strong summer vacation season.
  • Other operating expenses and corporate expense (net) declined $5.5 million compared to the second quarter of 2011 as a result of reductions in professional fees, pension, rent and employee costs.
  • Restructuring expense was $5.9 million lower compared to the second quarter of last year.
  • The Company received $1.1 million in payments for one of our claims related to the Deepwater Horizon oil spill, which is reflected in other income on our financial statements.

Park Brady, St. Joe’s Chief Executive Officer, said “Our second quarter results reflect our efforts to stabilize the company. I’m encouraged by the trends in our residential, timber and resorts businesses. With $170 million in cash we’re in a position to either hold or opportunistically reposition our assets to create additional shareholder value. We plan to continue to invest in those projects that we believe meet our risk-adjusted return criteria such as our holdings in Venture Crossings at the Airport, the Port of St. Joe, Breakfast Point, our primary home community in Northwest Florida, and Rivertown, our primary home community in Northeast Florida. We’re continuing to study our other real estate assets and markets for growth opportunities.”

FINANCIAL DATA
($ in millions except per share amounts)
 
Consolidated Results
 
   

Quarter Ended June 30,

  Six Months Ended June 30,
   

2012

 

2011

 

2012

 

2011

Revenues                
Real estate sales   $5.0   $3.4   $19.0   $8.7
Resort and club revenues   14.8   13.0   21.1   18.1
Timber sales   9.7   8.2   19.2   70.8
Other revenues   0.9   0.7   1.6   1.1
Total revenues   30.4   25.3   60.9   98.7
Expenses                
Cost of real estate sales   2.9   2.8   10.5   4.5
Cost of resort and club revenues   11.5   11.0   18.4   17.6
Cost of timber sales   6.2   6.0   12.5   12.2
Cost of other revenues   0.5   0.5   1.3   1.0
Other operating expenses   4.2   6.3   8.0   13.3
Corporate expense, net   4.9   8.3   9.3   26.5
Restructuring charge   --   5.9   0.1   10.4
Impairment losses   --   1.7   --   2.5
Depreciation and amortization   2.5   3.4   4.8   9.9
Total expenses   32.7   45.9   64.9   97.9
Operating loss   (2.3)   (20.6)   (4.0)   0.8
Other income (expense)   2.5   0.3   3.9   0.6
Pretax income (loss) from continuing operations   0.2   (20.3)   (0.1)   1.4
Income tax expense (benefit)   --   (7.0)   0.6   0.6
Equity (loss) in income of unconsolidated affiliates   --   --   --   --
Net income (loss)   $0.2   $(13.3)   $(0.7)   $0.8
Net income (loss) per share   $ --   $(0.14)   $ (0.01)   $0.01
                 
Weighted average shares outstanding   92,293,017   92,207,304   92,279,035   92,401,380
 

Revenues by Segment

 
    Quarter Ended June 30,   Six Months Ended June 30,
    2012   2011   2012   2011
Residential                
Real estate sales   $ 4.2   $ 2.8   $

7.7 (1)

  $ 5.1
Resort and club revenues     14.8     13.0     21.1       18.1
Other revenues     0.6     0.6     1.3       1.0
Total Residential     19.6     16.4     30.1       24.2
Commercial                
Real estate sales     0.6     0.6     6.7       0.8
Rental revenues     0.3     --     0.4       0.1
Total Commercial     0.9     0.6     7.1       0.9
Rural Land sales     0.2     0.1     4.5       2.8
Forestry sales     9.7     8.2     19.2       70.8
Total revenues   $

30.4

  $ 25.3   $ 60.9     $ 98.7
     

(1) Includes the sale of a 16.5 acre parcel of land for $5.4 million.

Summary Balance Sheet

 
    June 30, 2012   Dec. 31, 2011
Assets        
Investment in real estate   $ 387.5   $ 387.2
Cash and cash equivalents     169.9     162.4
Notes receivable     4.1     4.6
Pledged treasury securities     22.3     23.3
Prepaid pension asset     34.6     35.1
Property, plant and equipment, net     13.6     14.9
Deferred tax Asset     11.6     11.7
Other assets     22.8     22.1
Total assets   $ 666.4   $ 661.3
         
Liabilities and Equity        
Debt   $ 51.7   $ 53.5
Accounts payable, accrued liabilities     69.9     63.9
Total liabilities   $

121.6

  $

117.4

Total equity    

544.8

   

543.9

Total liabilities and equity   $

666.4

  $

661.3

 

Debt Schedule

 
    June 30, 2012   December 31, 2011
Defeased debt   $ 22.3   $ 23.3
Community Development District debt    

29.4

   

30.2

Total debt   $

51.7

  $

53.5

 

Other Operating and Corporate Expenses
($ in millions)
 
    Quarter Ended June 30,   Six Months Ended June 30,
      2012     2011       2012       2011  
                 
Employee Costs   $ 2.5   $ 3.3     $ 6.0     $ 7.3  
Non-cash stock compensation costs     0.5     (0.1 )     1.1       8.4  
Property taxes and insurance     2.2     2.4       4.3       4.8  
Marketing and homeowner association cost     0.8     0.6       1.1       1.7  
Occupancy, repairs and maintenance     0.3     0.9       0.5       1.9  
Professional fees     1.3     4.6       2.6       11.1  
Other     0.5     0.7       1.0       1.2  
Pension expense (income) 1     1.0     2.4       0.8       4.1  
Capitalized costs     -     (0.2 )     (0.1 )     (0.7 )
Total other operating and corporate expense   $ 9.1   $ 14.6     $ 17.3     $ 39.8  
 

(1) Includes a $1.4 million transfer of Supplemental Executive Retirement Program (“SERP”) liability to the Company’s Pension Plan in the first quarter of 2011, resulting in a decrease to employee costs and an increase to pension expense for the six months ended June 30, 201l.



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