The St. Joe Company (NYSE: JOE) today announced pretax income of $509.9 million for the quarter ending March 31, 2014 as compared to pretax loss of $(2.5) million for the quarter ending March 31, 2013. Net Income for the first quarter 2014 was $403.0 million, or $4.37 per share compared to a Net Loss of $(2.5) million, or $(0.03) per share for the first quarter of 2013.
During the quarter, the Company completed its previously announced sale of approximately 380,000 acres of the Company’s non-strategic timberlands and rural land to AgReserves, Inc., for approximately $562 million, which included $200 million in the form of a timber note (the “AgReserves Sale”). The Company recorded earnings of $511.1 million before income taxes for the quarter ended March 31, 2014 as a result of this sale.
Subsequent to March 31, 2014, the Company monetized the timber note from the AgReserves Sale and received $165 million in cash, net of $15 million in costs, and expects to receive the remaining $20 million in 15 years upon maturity of the timber note.
In addition, on April 2, 2014, the Company completed its previously announced sale of the RiverTown community for (1) $24.0 million in cash, (2) $19.6 million in the form of a purchase money note, (3) the assumption, at closing, of the Company’s Rivers Edge Community Development District obligations ($11.0 million as of the date of closing) and (4) the post-closing obligation to purchase from the Company certain RiverTown community related impact fee credits, which the Company estimates at $20 million to $26 million over the five-year period as the RiverTown community is developed (most of which, the Company expects to receive at the end of that five-year period). The Company expects to record pretax income of approximately $26 million for the RiverTown sale in the second quarter of 2014.