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The St. Joe Company (NYSE: JOE) today announced pretax income of $23.3 million for the quarter ended June 30, 2014 as compared to pretax income of $2.7 million for the quarter ended June 30, 2013. Net Income for the second quarter 2014 was $14.6 million, or $0.16 per share, compared with Net Income of $2.7 million, or $0.03 per share for the second quarter of 2013. For the six months ended June 30, 2014, the Company reported Net Income of $417.6 million, or $4.52 per share compared to Net Income of $0.2 million or $0.00 per share for the same period last year.
During the quarter, the Company completed its previously announced sale of the RiverTown community. The Company received (1) $24.0 million in cash, (2) $19.6 million in the form of a purchase money note and (3) the assumption of the Company’s Rivers Edge Community Development District obligations. In addition, the buyer agreed to purchase from the Company certain RiverTown community related impact fee credits over a five-year period as the RiverTown community is developed. The impact fee credits have, an estimated value of $20 to $26 million, most of which is expected to be received at the end of that five-year period.
Second Quarter 2014 update includes:
Total revenue for the quarter was $68.2 million. Residential real estate revenue increased from $5.5 million in the second quarter of 2013 to $47.8 million for the second quarter of 2014. The RiverTown sale accounted for $43.6 million of the revenue in the second quarter of 2014.
Resorts, leisure and leasing revenue increased $1.2 million, or 7%, during the three months ended June 30, 2014, as compared to the second quarter in 2013. The increase includes $0.6 million of incremental resorts and leisure revenues primarily due to an increase in room nights rented and $0.6 million of incremental leasing revenue from leases in the Pier Park North joint venture.
Timber sales decreased to $1.1 million during the second quarter of 2014 as compared to $9.8 million in the second quarter of 2013 due to the AgReserves sale which closed in March 2014. Tons delivered were less than 60,000 during the quarter as compared to 340,000 during the three months ended June 30, 2013.
As of June 30, 2014, the Company had cash, cash equivalents and investments of $679.4 million, compared to $168.9 million as of December 31, 2013.
Park Brady, St. Joe’s Chief Executive Officer, said, “In addition to the successful closing of two outstanding transactions, we are particularly excited about the growth and development of our resort operations business. The successful launch of St. Joe Club & Resorts has helped to increase vacation homes under our management by 32%.” Mr. Brady added, “As part of our strategy to expand the resort and leisure operations, we added The Pearl as part of our management portfolio, which is a beautifully designed property in Rosemary Beach, Florida with outstanding amenities.”