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."
