The St. Joe Company (NYSE: JOE) today announced pretax income of $509.9 million for the quarter ending March 31, 2014 as compared to pretax loss of $(2.5) million for the quarter ending March 31, 2013. Net Income for the first quarter 2014 was $403.0 million, or $4.37 per share compared to a Net Loss of $(2.5) million, or $(0.03) per share for the first quarter of 2013.
During the quarter, the Company completed its previously announced sale of approximately 380,000 acres of the Company's non-strategic timberlands and rural land to AgReserves, Inc., for approximately $562 million, which included $200 million in the form of a timber note (the "AgReserves Sale"). The Company recorded earnings of $511.1 million before income taxes for the quarter ended March 31, 2014 as a result of this sale.
Subsequent to March 31, 2014, the Company monetized the timber note from the AgReserves Sale and received $165 million in cash, net of $15 million in costs, and expects to receive the remaining $20 million in 15 years upon maturity of the timber note.
In addition, on April 2, 2014, the Company completed its previously announced sale of the RiverTown community for (1) $24.0 million in cash, (2) $19.6 million in the form of a purchase money note, (3) the assumption, at closing, of the Company's Rivers Edge Community Development District obligations ($11.0 million as of the date of closing) and (4) the post-closing obligation to purchase from the Company certain RiverTown community related impact fee credits, which the Company estimates at $20 million to $26 million over the five-year period as the RiverTown community is developed (most of which, the Company expects to receive at the end of that five-year period). The Company expects to record pretax income of approximately $26 million for the RiverTown sale in the second quarter of 2014.
As of March 31, 2014, the Company had cash, cash equivalents and investments of $519.2 million, compared to $168.9 million as of December 31, 2013. Subsequent to the monetization of the timber note and the closing of the RiverTown sale, the Company had cash, cash equivalents and investments of $710.7 million as of April 30, 2014.
First Quarter 2014 update includes:
Total revenue for the quarter was $594.1 million.
Excluding the AgReserves Sale, revenue for the first quarter of 2014 was $23.2 million compared to $26.8 million in the first quarter of 2013. The decrease was primarily related to the reduction in timber sales and a decline in the number of residential homesites sold in the quarter, partially offset by an increase in commercial real estate sales.
Residential Real Estate revenue decreased from $7.8 million in the first quarter of 2013 to $5.7 million in the first quarter of 2014 due to timing of homesite closings and availability of completed lots. Margins increased from 36.8% in the first quarter of 2013 to 50.9% in the first quarter of 2014.
Commercial Real Estate revenue increased from $0.2 million in the first quarter of 2013 to $2.4 million in the first quarter of 2014.
Resorts, Leisure and Leasing Operations revenue decreased from $9.0 million in the first quarter of 2013 to $8.2 million in the first quarter of 2014. The decrease was a result of harsh weather in the first quarter of 2014 as well as the timing of spring break and the Easter holiday as compared to the first quarter of 2013.
Timber revenue decreased from $9.7 million in the first quarter of 2013 to $8.1 million in the first quarter of 2014. The amount of timber harvested decreased due to the AgReserves Sale closing in March.
During the quarter, the Company completed its previously announced sale of approximately 380,000 acres of the Company's non-strategic timberlands and rural land to AgReserves, Inc., for approximately $562 million, which included $200 million in the form of a timber note (the "AgReserves Sale"). The Company recorded earnings of $511.1 million before income taxes for the quarter ended March 31, 2014 as a result of this sale.
Subsequent to March 31, 2014, the Company monetized the timber note from the AgReserves Sale and received $165 million in cash, net of $15 million in costs, and expects to receive the remaining $20 million in 15 years upon maturity of the timber note.
In addition, on April 2, 2014, the Company completed its previously announced sale of the RiverTown community for (1) $24.0 million in cash, (2) $19.6 million in the form of a purchase money note, (3) the assumption, at closing, of the Company's Rivers Edge Community Development District obligations ($11.0 million as of the date of closing) and (4) the post-closing obligation to purchase from the Company certain RiverTown community related impact fee credits, which the Company estimates at $20 million to $26 million over the five-year period as the RiverTown community is developed (most of which, the Company expects to receive at the end of that five-year period). The Company expects to record pretax income of approximately $26 million for the RiverTown sale in the second quarter of 2014.
As of March 31, 2014, the Company had cash, cash equivalents and investments of $519.2 million, compared to $168.9 million as of December 31, 2013. Subsequent to the monetization of the timber note and the closing of the RiverTown sale, the Company had cash, cash equivalents and investments of $710.7 million as of April 30, 2014.
First Quarter 2014 update includes:
Total revenue for the quarter was $594.1 million.
Excluding the AgReserves Sale, revenue for the first quarter of 2014 was $23.2 million compared to $26.8 million in the first quarter of 2013. The decrease was primarily related to the reduction in timber sales and a decline in the number of residential homesites sold in the quarter, partially offset by an increase in commercial real estate sales.
Residential Real Estate revenue decreased from $7.8 million in the first quarter of 2013 to $5.7 million in the first quarter of 2014 due to timing of homesite closings and availability of completed lots. Margins increased from 36.8% in the first quarter of 2013 to 50.9% in the first quarter of 2014.
Commercial Real Estate revenue increased from $0.2 million in the first quarter of 2013 to $2.4 million in the first quarter of 2014.
Resorts, Leisure and Leasing Operations revenue decreased from $9.0 million in the first quarter of 2013 to $8.2 million in the first quarter of 2014. The decrease was a result of harsh weather in the first quarter of 2014 as well as the timing of spring break and the Easter holiday as compared to the first quarter of 2013.
Timber revenue decreased from $9.7 million in the first quarter of 2013 to $8.1 million in the first quarter of 2014. The amount of timber harvested decreased due to the AgReserves Sale closing in March.
