WaterSound, Florida - (May 5, 2011) - The St. Joe Company (NYSE: JOE) today announced Net Income for the first quarter of 2011 of $14.1 million, or $0.15 per share, compared to a Net Loss of $(11.4) million, or $(0.13) per share for the first quarter of 2010.
Results for the three months ended March 31, 2011 included a pre-tax gain of $50.3 million, or $0.36 per share net of tax, from the sale of a 40,975 acre timber deed and pre-tax charges of $16.8 million, or $0.12 per share net of tax, including the following:
Segment Results
During the first quarter in its residential real estate segment, St. Joe generated $2.2 million of revenue primarily from the sale of 22 homesites across its resort and primary communities at an average price of $95,000.
In its commercial real estate segment during the first quarter, the Company sold 1.2 acres near its Breakfast Point community in Bay County for $226,000, or $192,000 per acre.
Within VentureCrossings, St. Joe has decided to indefinitely delay the construction of its new corporate headquarters building and to reallocate this capital to advance infrastructure construction supporting revenue generating industrial, warehouse and office developments. The Company has also commenced the vertical construction of a long-term covered parking facility at the entrance of the new airport.
In its rural land sales segment during the first quarter, St. Joe sold 98 acres to a utilities company for $2.8 million, or $28,000 per acre.
On March 31, 2011, the Company sold standing timber on approximately 40,975 acres to an investment fund. St. Joe received proceeds of $55.9 million for the conveyance of the standing timber but retains ownership of the underlying land. Forestry revenues from ongoing operations during the first quarter of 2011 were $8.1 million, primarily from the sale of 295,000 tons of sawtimber and pulpwood.
Park Brady, St. Joe's Chief Operating Officer, said "We are pleased with the passenger traffic at the new airport and expect that the accessibility which the airport now provides will create a greater degree of interest in Northwest Florida, unlocking the region's potential and promoting growth in the coming years."
Liquidity and Balance Sheet
At March 31, 2011, St. Joe had cash of $216.2 million, pledged treasury securities of $24.8 million and debt of $53.9 million, $24.8 million of which is defeased debt. The Company's $125 million revolving credit facility remained undrawn at March 31, 2011.
Capital expenditures for the three months ended March 31, 2011 were $4.5 million, compared to $1.6 million for the same period in 2010. In addition, St. Joe incurred cash overhead costs of $16.7 million during the quarter compared to $12.4 million for the first quarter last year. Included in the first quarter 2011 cash overhead costs was an increase of $5.3 million in legal fees, as compared to the first quarter of 2010.
Land Holdings and Land Use Entitlements
On March 31, 2011, St. Joe owned approximately 574,000 acres, concentrated primarily in Northwest Florida. Approximately 403,000 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, 2011, 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 642 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. 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.
(1) Includes a $1.4 million transfer of Supplemental Executive Retirement Program ("SERP")liability to the Company's Pension Plan, resulting in a decrease to employee costs and an increase to pension expense.
Results for the three months ended March 31, 2011 included a pre-tax gain of $50.3 million, or $0.36 per share net of tax, from the sale of a 40,975 acre timber deed and pre-tax charges of $16.8 million, or $0.12 per share net of tax, including the following:
- Acceleration of $6.2 million of restricted stock amortization expense due to the change in control of the Board of Directors and the vesting of most of our former President and Chief Executive Officer's restricted stock,
- Legal fees totaling $5.3 million due to defending the securities class action lawsuit, responding to the SEC informal inquiry, engaging a new law firm related to the foregoing, pursuing the three lawsuits against the parties St. Joe believes are responsible for the Deepwater Horizon oil spill, and legal costs incurred in connection with the change in control of the Board and other corporate governance matters,
- Restructuring charges of $4.5 million including payments to our former President and Chief Executive Officer under the terms of his Separation Agreement, and
- Impairment charges of $0.8 million in connection with the decision to indefinitely delay the development of the Company's new corporate headquarters.
Segment Results
During the first quarter in its residential real estate segment, St. Joe generated $2.2 million of revenue primarily from the sale of 22 homesites across its resort and primary communities at an average price of $95,000.
In its commercial real estate segment during the first quarter, the Company sold 1.2 acres near its Breakfast Point community in Bay County for $226,000, or $192,000 per acre.
Within VentureCrossings, St. Joe has decided to indefinitely delay the construction of its new corporate headquarters building and to reallocate this capital to advance infrastructure construction supporting revenue generating industrial, warehouse and office developments. The Company has also commenced the vertical construction of a long-term covered parking facility at the entrance of the new airport.
In its rural land sales segment during the first quarter, St. Joe sold 98 acres to a utilities company for $2.8 million, or $28,000 per acre.
On March 31, 2011, the Company sold standing timber on approximately 40,975 acres to an investment fund. St. Joe received proceeds of $55.9 million for the conveyance of the standing timber but retains ownership of the underlying land. Forestry revenues from ongoing operations during the first quarter of 2011 were $8.1 million, primarily from the sale of 295,000 tons of sawtimber and pulpwood.
Park Brady, St. Joe's Chief Operating Officer, said "We are pleased with the passenger traffic at the new airport and expect that the accessibility which the airport now provides will create a greater degree of interest in Northwest Florida, unlocking the region's potential and promoting growth in the coming years."
Liquidity and Balance Sheet
At March 31, 2011, St. Joe had cash of $216.2 million, pledged treasury securities of $24.8 million and debt of $53.9 million, $24.8 million of which is defeased debt. The Company's $125 million revolving credit facility remained undrawn at March 31, 2011.
Capital expenditures for the three months ended March 31, 2011 were $4.5 million, compared to $1.6 million for the same period in 2010. In addition, St. Joe incurred cash overhead costs of $16.7 million during the quarter compared to $12.4 million for the first quarter last year. Included in the first quarter 2011 cash overhead costs was an increase of $5.3 million in legal fees, as compared to the first quarter of 2010.
Land Holdings and Land Use Entitlements
On March 31, 2011, St. Joe owned approximately 574,000 acres, concentrated primarily in Northwest Florida. Approximately 403,000 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, 2011, 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 642 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. 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.
(1) Includes a $1.4 million transfer of Supplemental Executive Retirement Program ("SERP")liability to the Company's Pension Plan, resulting in a decrease to employee costs and an increase to pension expense.
