The St. Joe Company Reports Second Quarter 2013 Results

The St. Joe Company (NYSE:JOE) today announced Net Income for the second quarter of 2013 of $2.7 million, or $0.03 per share, compared to Net Income of $0.2 million, or $0.00 per share for the second quarter of 2012. For the six months ended June 30, 2013, the Company reported Net Income of $0.2 million or $0.00 per share compared to a Net Loss of $(0.7) million or $(0.01) per share for the same period last year.

Observations regarding the major business segments in the second quarter of 2013 compared to the second quarter of 2012 include:
  • Residential revenue increased $1.2 million, or 28%, primarily due to an increase in the number of residential lots sold.
  • Resorts, leisure and leasing revenue increased $1.4 million, or 9%, due to higher average room rates, a greater number of homes in the Company’s vacation rental business, and the full year effect of commercial leases that commenced during 2012.
  • Forestry revenue was flat, reflecting higher prices offset by a decrease in the tons of timber delivered. The volume of timber delivered is lower due to temporary plant shutdowns or slowdowns at some of our customers’ facilities.
  • Commercial development revenue decreased by $0.5 million, to $0.1 million for the second quarter, as the Company continues to experience a slow and intermittent pace of commercial activity.
  • Rural land sale revenue was essentially flat and immaterial primarily because the Company has not pursued rural land sales as a source of revenue in the most recent quarters.
  • Operating and corporate expenses declined $1.4 million primarily due to reductions in pension expense and lower real estate carrying costs.

Park Brady, St. Joe’s Chief Executive Officer, said, “We’re pleased with our second quarter results and expect additional improvement through the remainder of the year in our core businesses. We also continue to evaluate all of our residential, commercial and forestry assets to determine the best path for maximizing the value of those assets. In addition, during the past 18 months we have spent considerable time and money exploring the active adult residential market and I am excited to announce that we plan to start the planning and entitlement process for that project in the third quarter of 2013.”

FINANCIAL DATA

 ($ in millions except per share amounts)
 

Consolidated Results
 
   

Quarter Ended June 30,
 

Six Months Ended June 30,
   

2013
 

2012
 

2013
 

2012
Revenues                
Real estate sales   $7.0   $5.1   $15.0   $19.1
Resorts, leisure and leasing revenues   17.0   15.6   26.1   22.5
Timber sales  

9.8
 

9.7
 

19.5
 

19.2
Total revenues  

33.8
 

30.4
 

60.6
 

60.8
Expenses                
Cost of real estate sales   3.7   2.9   8.7   10.6
Cost of resorts, leisure and leasing revenues   12.7   12.0   20.9   19.5
Cost of timber sales   5.8   6.2   11.8   12.5
Other operating expenses   3.2   4.2   6.1   8.0
Corporate expenses   4.5   4.9   9.0   9.4
Depreciation, depletion and amortization  

2.3
 

2.5
 

4.7
 

4.8
Total expenses  

32.2
 

32.7
 

61.2
 

64.8
Operating income (loss)  

1.6
 

(2.3)
 

(0.6)
 

(4.0)
Other income  

1.1
 

2.5
 

0.8
 

3.9
Income (loss) from operations before equity in loss from unconsolidated affiliates and income taxes  

2.7
 

0.2
 

0.2
 

(0.1)
Equity in unconsolidated affiliates   --   --   --   --
Income tax expense  

--
 

--
 

--
 

$(0.6)
Net income (loss)  

$2.7
 

$0.2
 

$0.2
 

$(0.7)
Net income (loss) per share  

$0.3
 

$ --
 

$ --
 

$(0.01)
Weighted average shares outstanding   92,284,532   92,293,017   92,284,624   92,279,035
 

Revenues by Segment
 

 
  Quarter Ended June 30,   Six Months Ended June 30,
    2013   2012   2013   2012
Revenues:                
Real estate sales                
Residential   $5.5   $4.3   $13.3   $8.0
Commercial   0.1   0.6   0.3   6.6
Rural land   --   0.2   --   4.5
Resorts, leisure and leasing revenues   1.1   --   1.1   --
Other   0.3   --   0.3   --
Total real estate sales   7.0   5.1   15.0   19.1
Resorts, leisure and leasing revenues   17.0   15.6   26.1   22.5
Timber sales   9.8   9.7   19.5   19.2
Total revenues   $33.8   $30.4   $60.6   $60.8
 

Summary Balance Sheet
   
    June 30, 2013   Dec. 31, 2012
Assets        
Investment in real estate, net   $379.8   $370.6
Cash and cash equivalents   54.1   166.0
Investments   114.5   --
Notes receivable, net   4.8   4.0
Pledged treasury securities   26.5   26.8
Prepaid pension asset   35.5   33.4
Property and equipment, net   11.9   12.1
Deferred tax asset   12.0   12.0
Other assets   23.4   20.6
Total assets   $662.5   $645.5
         
Liabilities and Equity        
Debt   $38.2   $36.1
Accounts payable, accrued liabilities, and deferred credits   68.1   57.1
Total liabilities   $106.3   $93.2
Total equity   556.2   552.3
Total liabilities and equity   $662.5   $645.5
 

Debt Schedule
    June 30, 2013   December 31, 2012
In substance defeased debt   $26.5   $26.8
Community Development District debt   11.7   9.3
Total debt   $38.2   $36.1

Other Operating and Corporate Expenses
($ in millions)
 
    Quarter Ended June 30,   Six Months Ended June 30,
    2013   2012   2013   2012
                 
Employee costs   $2.5   $2.5   $5.8   $6.0
Non-cash stock compensation costs   0.2   0.5   0.2   1.1
Pension   0.3   1.0   0.4   0.8
Property taxes and insurance   2.0   2.2   3.8   4.3
Professional fees   1.5   1.3   2.7   2.5
Marketing and homeowner association costs   0.5   0.8   1.0   1.1
Occupancy, repairs and maintenance   0.2   0.3   0.3   0.5
Other   0.5   0.5   0.9   1.1
Total other operating and corporate expense   $7.7   $9.1   $15.1   $17.4

Additional Information

Additional information with respect to the Company’s results for the second quarter of 2013 will be available in a Form 10-Q that will be filed with the Securities and Exchange Commission.

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