The St. Joe Company (NYSE: JOE) today announced Net Income for the third quarter of 2012 of $15.3 million, or $0.17 per share, compared to a Net Loss of $(2.4) million, or $(0.03) per share, for the third quarter of 2011. For the nine months ended September 30, 2012, the Company reported Net Income of $14.6 million, or $0.16 per share, compared to a Net Loss of $(1.7) million, or $(0.02) per share, for the same period last year.
Revenue for the third quarter of 2012 increased to $55.9 million compared to $26.7 million in the third quarter of 2011. The $29.2 million increase in revenue included $18.3 million derived from two rural land sales. For the nine months ended September 30, 2012, the Company recorded $116.8 million in revenue compared to $125.5 million for the first nine 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 nine months of 2011. Excluding the effect of the two rural land sales in 2012 and the timber deed transaction in 2011, revenue in the first nine months of 2012 was $98.5 million compared to $71.0 million in the first nine months of 2011.
Highlights for the third quarter of 2012 include:
- The number of residential units sold increased from 40 units in the third quarter of last year to 58 units in the third quarter of this year. Pricing also improved, particularly in our resort communities where we have experienced an increase in demand. The combination of higher pricing and a greater number of units sold contributed to a revenue increase of 146% in residential real estate sales.
- 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.
- Tons of timber sold increased approximately 13% quarter over quarter as a result of opening more of our acreage to timber harvesting and the positive impact of our investments in technology and infrastructure.
- Revenue in the Company’s resorts and clubs business grew approximately 9% in the third quarter of 2012 compared to the third quarter of 2011 due to a strong summer vacation season.
- Two new commercial tenants, one in the Port of Port St Joe and one in Venture Crossings, commenced their leases.
- 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 a half years.
Park Brady, St. Joe’s Chief Executive Officer, said “We had a good third quarter fueled by improvements in all of our business lines. The rural land sales were opportunistic sales of property that were not strategic to our business focus. Despite a slow economy, our residential development, resorts and timber businesses all showed improvement compared to last year. We prepaid over $19 million of debt at one of our residential projects, and we still have $172 million of cash and cash equivalents, which is slightly more than last quarter. We will continue to seek market opportunities in our resort and primary home communities while also exploring longer term opportunities that take advantage of changing demographics, such as retirement communities.”