St. Joe Reports First Quarter 2010 Results
(May 4, 2010) -The St. Joe Company (NYSE: JOE) today announced a Net Loss for the first quarter ended March 31, 2010 of $(11.4) million, or $(0.13) per share, compared to a Net Loss of $(12.0) million, or $(0.13) per share, for the first quarter of 2009.
"A positive regional transformation is beginning as we get closer to the opening of the country's newest international airport," said St. Joe's President and CEO Britt Greene. "The new airport with service provided by Southwest Airlines and Delta Air Lines significantly improves the accessibility to Northwest Florida, its workforce and its beaches. Our nearly debt free balance sheet, efficient cost structure and more than 300,000 acres of land within 40 miles of the new airport position us to take full advantage of the many opportunities that will arise for decades to come."
First Quarter Highlights
- Announced the relocation of the Company's corporate headquarters to its VentureCrossings Enterprise Centre at the new international airport.
- Sold 2.8 acres of commercial land for $0.3 million, or $110,000 per acre.
- Sold 72 acres of rural land for $0.4 million, or over $5,500 per acre.
- Generated $0.6 million of revenue from the sale of 9 mitigation bank credits.
- Generated $0.5 million of revenue from the sale of 6 residential homesites.
Northwest Florida Beaches International Airport
The new Northwest Florida Beaches International Airport, which will open on May 23rd, is the first international airport built in the United States in the last 15 years. St. Joe donated 4,000 acres within its 75,000-acre West Bay Sector Plan, a large mixed-use master-planned development located in Bay County, for the construction of the new airport.
St. Joe and Southwest Airlines have entered into a strategic alliance providing for low-fare air service to the new airport. Southwest Airlines will commence service with two daily non-stop flights between the new airport and each of Houston, Nashville, Orlando and Baltimore-Washington DC. In addition to the eight daily non-stop flights, Southwest Airlines will offer direct or connecting service to more than 60 other destinations in the Unites States. Delta Air Lines, which has served the existing airport for many years, has announced that it will expand its service to the region with larger aircraft upon the opening of the new airport.
VentureCrossings Enterprise Centre
In April, St. Joe launched VentureCrossings Enterprise Centre at West Bay, Florida. VentureCrossings, one of the nation's largest, most unique office, retail, hotel and industrial developments, encompasses the first 1,000 acres to be developed by St. Joe within the 75,000-acre West Bay Sector Plan adjacent to the new airport.
VentureCrossings includes approximately 100 acres designated for retail, office and hotel uses, approximately 300 acres for light industrial uses, and approximately 600 acres for manufacturing, distribution and logistics companies seeking "through the fence" access to the new airport's 10,000-foot runway.
Within VentureCrossings, St. Joe is developing an approximately 60,000 square foot Class A multi-tenant office building with construction beginning later this year. The Company will relocate its corporate headquarters, currently in Jacksonville, Florida, to this multi-tenant building by the summer of 2011. Also within VentureCrossings, St. Joe is developing an approximately 35,000 square foot light industrial building with construction beginning later this year.
St. Joe has engaged CB Richard Ellis Group, Inc., the world's largest commercial real estate services firm, to help attract VentureCrossings' first retail, office and industrial occupants. Marketing and pre-leasing activity is underway.
Liquidity and Balance Sheet
At March 31, 2010, St. Joe had cash of $152.6 million, pledged treasury securities of $26.7 million and debt of $39.2 million, $26.7 million of which is defeased debt. The majority of the Company's tax receivable of $64.9 million is expected to be received in the second half of 2010. St. Joe's $125 million revolving credit facility remained undrawn at March 31, 2010.
"With virtually no debt, streamlined operations and our announced relocation that will consolidate our corporate offices at the heart of our vast land holdings, we are well positioned to pursue the opportunities that will contribute to building shareholder value for many years in the future," said William S. McCalmont, St. Joe's Executive Vice President and CFO.
Capital expenditures for the first quarter of 2010 were $1.6 million, compared to $5.5 million for the same period in 2009, a reduction of 71 percent. In addition, St. Joe incurred cash overhead costs of $12.4 million during the quarter, compared to $17.3 million for the first quarter last year, a 28 percent reduction.
Land Holdings and Land Use Entitlements
On March 31, 2010, St. Joe owned approximately 577,000 acres, concentrated primarily in Northwest Florida. Approximately 405,000 acres, or 70 percent of the Company's total land holdings, are within 15 miles of the coast of the Gulf of Mexico.
On March 31, 2010, St. Joe's land-use entitlements in hand or in process totaled approximately 31,600 residential units and approximately 11.6 million square feet of commercial space, as well as an additional 646 acres with land-use entitlements for commercial uses.
Cash overhead is a non-GAAP financial measure. We believe this information is useful to investors in understanding the underlying operational performance of the Company, its business and performance trends. Specifically, we believe that the reduction in total cash overhead shows investors the cash savings achieved by management through various restructuring initiatives.
Although we believe disclosure of total cash overhead enhances investors' understanding of our business and performance, this non-GAAP financial measure should not be considered an alternative to GAAP basis financial measures.
Conference Call Information
On May 4, 2010, at 10:30 a.m. (EDT), St. Joe will host a conference call to review the Company's results for the first quarter ended March 31, 2010.
If you wish to participate in the call, please phone 888.208.1711 (for domestic calls) or 913.312.0411 (for international calls) approximately ten minutes before the scheduled start time.
You will be asked for a Confirmation Code which is: 9974152. St. Joe will also webcast the conference call in a listen-only format on the Company's website.
On the afternoon of the call, you may access a replay of the call by phoning 888.203.1112 (for domestic calls) or 719.457.0820 (for international calls) using access code 9974152. Access to the replay will be available until 11:59 PM (EDT) on May 8, 2010. A webcast archive of the conference call will be posted to the Company's website approximately 90 minutes following the call and will be available until May 11, 2010.
05-08-2010, 10:26 AM #2
Unbelievable! Only $13 million in revenue in the quarter and a multi billion dollar valuation on the stock. Ridiculous. Short, short, short!
11-27-2010, 08:40 AM #3
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