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The St. Joe Company Reports First Quarter 2012 Results
WaterSound, Florida - (May 3, 2012) - The St. Joe Company (NYSE: JOE) today announced a Net Loss for the first quarter of 2012 of $(0.9) million, or $(0.01) per share, compared to Net Income of $14.1 million, or $0.15 per share for the first quarter of 2011.
Revenue for the first quarter of 2012 declined to $30.5 million compared to $73.4 million in the first quarter of 2011. The $42.9 million decline in revenue is due to one-time revenue generated by a timber deed transaction that was executed in the first quarter of 2011. That particular transaction added $54.5 million of revenue and $50.3 million in pre-tax gain to the 2011 first quarter results. Excluding the timber deed transaction, adjusted revenue grew 61%, from $18.9 million in the first quarter of 2011 to $30.5 million in the first quarter of 2012. Highlights for the first quarter of 2012 include:
- Completion of two commercial property sales in Northwest Florida consisting of 17.5 acres for $6.0 million, or an average of $340,000 per acre;
- Operating expenses declined $17.1 million compared to the first quarter of 2011 as a result of reduction in staff, lower legal fees, lower restructuring and severance costs, and reduced stock-based compensation charges.
Park Brady, St. Joe's Chief Executive Officer, said "We are continuing to reduce expenses and evaluate our assets for revenue and growth opportunities. We believe that our current cash position and cost structure provide us with the ability to hold or opportunistically reposition our assets to create additional shareholder value. We intend to continue to invest in those projects that we believe will meet our risk-adjusted return criteria such as our holdings in Venture Crossings at the Airport, the Port of St. Joe, Breakfast Point, our primary home community in Northwest Florida, and Rivertown, our primary home community in Northeast Florida."
At March 31, 2012, St. Joe had cash of $165.7 million, pledged treasury securities of $22.8 million and debt of $52.8 million, $22.8 million of which is defeased debt.
Additional Information
Additional information with respect to the Company's results for the first quarter of 2012 will be available in a Form 10-Q that will be filed with the Securities and Exchange Commission.
Important Notice Regarding Forward-Looking Statements
This press release includes forward-looking statements, including statements regarding the Company's expectations or beliefs regarding (i) the Company's belief that its cash positon and cost structure provide the ability to hold or opportunistically reposition its assets to create shareholder value, (ii) the effect of the Company's new investment strategy; and (iii) the focus of future capital expenditures that will be allocated to certain projects. These forward-looking statements may be affected by the risks and uncertainties in the Company's business, including those included in the Company's Annual Report on Form 10-K filed with the Commission on February 27, 2012. The Company wishes to caution readers that certain important factors may have affected and could in the future affect the Company's actual results and could cause the Company's actual results for subsequent periods to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company, including (1) increases in operating costs, including costs related to real estate taxes, construction materials, labor and insurance; (2) the Company's ability to manage its cost structure; (3) the Company's ability to successfully dispose of its repositioned assets and other properties at expected prices and within anticipated time frames; (4) economic or other conditions that affect the desire or ability of the Company's customers to purchase or enter into leases for its properties, such as reductions in the availability of mortgage financing or property insurance, increases in foreclosures, interest rates, the cost of property insurance, inflation, or unemployment rates or declines in consumer confidence or the demand for, or the prices of, housing; (5) changes in laws, regulations or the regulatory environment affecting the development of real estate or forestry activities, (6) the impact of natural or man-made disasters or weather conditions, including hurricanes and other severe weather conditions, on the Company's business, and (7) the Company's ability to effectively execute its strategy, and its ability to successfully anticipate the impact of its strategy.
About St. Joe
The St. Joe Company is a Florida-based real estate developer and manager. The Company owns approximately 573,000 acres of land concentrated primarily in Northwest Florida and has significant residential and commercial land-use entitlements in hand or in process. The majority of land not under development is used for the growing and selling of timber or is available for sale. The Company also owns various commercial, resort and club properties. More information about the Company can be found on its website at www.joe.com.
© 2012, The St. Joe Company. "St. Joe," "VentureCrossings," " Breakfast Point," "RiverTown," and the
"Taking Flight" design are service marks of The St. Joe Company.
St. Joe Investor/Media Contact:
Tom Hoyer - Chief Financial Officer
850-231-6518
thoyer@joe.com