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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported) February 6, 2007
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The St. Joe Company
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(Exact Name of Registrant as Specified in Its Charter)
Florida 1-10466 59-0432511
- ---------------------------- ------------------- ---------------------------
(State or Other Jurisdiction (Commission File (IRS Employer
of Incorporation) Number) Identification No.)
245 Riverside Avenue, Suite 500
Jacksonville, FL 32202
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(Address of Principal Executive Offices) (Zip Code)
(904) 301-4200
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(Registrant's Telephone Number, Including Area Code)
Not Applicable
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act (17 CFR 240.13e-(c))
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On February 6, 2007, The St. Joe Company (the "Company") issued a press release
announcing the Company's financial results for the quarter and year ended
December 31, 2006. A copy of the press release is furnished with this Form 8-K
as Exhibit 99.1.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 Press Release dated February 6, 2007
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE ST. JOE COMPANY
Dated: February 6, 2007 By: /s/ Michael N. Regan
-----------------------------------
Michael N. Regan
Chief Financial Officer
Exhibit 99.1
The St. Joe Company Reports Full Year 2006 Net Income of $0.71 Per Share, after
$0.11 Per Share Charges Relating to Florida Homebuilding Exit and Corporate
Reorganization
Fourth Quarter Net Income was $23.8 Million, or $0.32 per Share
Residential Market Continues to be Challenging
Solid Commercial and Rural Land Sales
JOE Closed Rights-of-Way Sale with Florida Department of
Transportation
JACKSONVILLE, Fla.--(BUSINESS WIRE)--Feb. 6, 2007--The St. Joe
Company (NYSE:JOE) today announced that its Net Income for the fourth
quarter 2006 was $23.8 million, or $0.32 per share, compared with
$37.2 million, or $0.49 per share, for the fourth quarter of 2005. All
per share references in this release are presented on a diluted basis.
Net Income for the full year 2006 was $52.5 million, or $0.71 per
share, compared with $126.6 million, or $1.66 per share, for the full
year 2005. Included in the full-year results for 2006 are charges of
$13.4 million pretax (or $0.11 per share after tax) related to JOE's
exit from the homebuilding business in Florida and the corporate
reorganization announced last August.
2006 Was a Very Challenging Year
"This past year has been very challenging for JOE and most
companies in the residential real estate business," said JOE Chairman
and CEO Peter S. Rummell. "While we responded prudently to the
dramatic slowdown in Florida's real estate markets, the challenge has
been to react appropriately to what we believe is a cyclical market
downturn without inhibiting our ability to create significant
long-term value for shareholders. We believe we've struck the right
balance for our residential business. JOE's 2006 Commercial and Rural
Land Sales results were solid throughout the year."
"Over the course of 2006, as the scope of the residential slowdown
became apparent, we reviewed and significantly reduced capital
expenditures, streamlined operations and evaluated corporate
activities to ensure they were contributing to value creation," said
Rummell. "As we enter 2007, resort and primary residential resale
inventories remain high in our Florida markets. By the end of the
year, we expect the level of existing inventories to be on a downward
trend. We believe we are making the appropriate investments in
entitlements and planning, along with community and regional
infrastructure, to meet demand once the Florida market works through
the downturn."
"The pricing of some of our resort and seasonal product has been
revised to reflect current market conditions," said Rummell. "We have
lengthened the required time periods for home-site purchasers to start
construction of their homes. And, with completed homes now in greater
demand than home sites, we are seeking new alliances with home
builders to bring finished product to market in our communities."
"While it's too early to make any predictions about results for
the full year, recently we have seen an increasing level of
sales-center traffic in our resort, seasonal and primary residential
projects," said Rummell. "We are a long way from achieving
supply-demand equilibrium, but we are optimistic that things are
beginning to move in the right direction."
"Commercial interest in Northwest Florida remains a bright spot in
this difficult market," said Rummell. "National and regional retail
developers have discovered Northwest Florida and are expressing a high
level of interest in the region. In SouthWood, for example, four
retail transactions closed in the fourth quarter, with aggregate gross
revenues of $14.1 million that will bring new retail choices to the
area."
"Rural Land Sales had a strong fourth quarter, with JOE selling
16,857 acres in 15 transactions for $31.5 million," said Rummell. "The
average price per acre declined in the fourth quarter to $1,900 from
$4,100 per acre in the third quarter, primarily due to two
transactions totaling 15,469 acres, which sold for an average price of
$1,700 per acre. Per acre pricing variations of rural land are largely
a function of the location and attributes of the particular tracts
being sold."
JOE Positioned for Future Growth
In the third quarter of 2006, JOE announced company-wide
organizational changes to meet its future strategic needs. As the
company continued to reassess its long-term plans, more adjustments
were required. As a result, in January 2007, JOE announced additional
organizational revisions designed to advance its Rural Land Sales
strategies. These changes are designed to position JOE for the next
decade of value creation.
"By most any measure, JOE has been quite successful over the last
decade," said Rummell. "But, what we did to be successful in our first
ten years would not produce the same success for our next ten. The
realization of our potential in the decade ahead requires a shift in
strategy and tactics."
"While our previous structure served us well, JOE's new structure
is designed to meet our future needs," said Rummell. "In August, we
began our exit from homebuilding in Florida and have streamlined and
organized our field operations regionally to insure each of our
landholdings ultimately find their highest and best use. This
restructuring of the business was required regardless of current
market conditions. We have thoroughly reviewed our strategy and
tactics for each product type in every market where we operate. At the
same time, we have focused on regional place making including land
enhancement, entitlements and strategic alliances. As a result, we are
entering 2007 re-energized, with renewed commitment to creating
long-term shareholder value, and better positioned to capture the
opportunities ahead. Great companies build on their core competencies
and keep evolving. We believe the opportunities for JOE over the next
ten years are likely to be different than the previous decade."
"Moving forward, we believe it is important for JOE to focus on
our core competencies and leverage them with strong strategic
partners," said Rummell. "Our goal is to accelerate value creation by
working closely with top-quality strategic partners who can bring
capital, expertise and brand recognition to Northwest Florida."
Homebuilding Alliances Show Results
"Our homebuilding alliances are beginning to show significant
results with activity across five communities," said Rummell. "Beazer
Homes closed on the purchase of 264 JOE primary residential home sites
during the fourth quarter of 2006, with gross revenues of $15.6
million, and David Weekly Homes closed on the purchase of 21 home
sites, with gross revenues of $1.5 million."
"By forming homebuilding alliances with Beazer Homes and David
Weekly Homes, we are better able to concentrate on what we do best,
land enhancement, large-scale planning, entitlements and regional
place-making," said Britt Greene, JOE's Chief Operating Officer. "They
bring strong brands to our market, highly-evolved homebuilding
operations to our towns and marketing expertise to our sales centers.
We intend to expand alliances with more builders in 2007 and the years
ahead, as our markets recover and grow."
Airport Relocation Project Continues to Advance
During the fourth quarter, The Panama City-Bay County Airport and
Industrial District (Airport Authority) announced that it had received
the final State of Florida permits necessary to move forward with the
relocation of the Panama City-Bay County International Airport.
Issuance of the state permits clears the way for the U.S. Army Corps
of Engineers to issue a Section 404 permit, the final major
environmental permit necessary before construction of the new airport
can begin.
Previously JOE agreed to donate 4,000 acres to the Airport
Authority when relocation funding and all permits are in place. On
September 15, 2006, the Federal Aviation Administration (FAA) issued
its Record of Decision (ROD) approving the relocation of the Panama
City-Bay County International Airport to a site in West Bay. A
Petition for Review of the Record of Decision has been filed against
the FAA by the Natural Resources Defense Council and other petitioners
in New York Federal Circuit Court.
Regulatory steps remain before construction of the new airport can
begin. The relocation of the airport is also dependent on adequate
funding.
JOE and National Audubon Society to Study Nature Center
Feasibility
In January 2007, JOE and the National Audubon Society signed a
Memorandum of Understanding creating a strategic alliance to study the
feasibility of establishing a state-of-the-art, world-class nature
center in the West Bay Preservation Area in Bay County to showcase
Northwest Florida's rich environmental and cultural heritage. The
nature center concept includes a multi-functional facility designed to
promote environmental education, experiences, research and
stewardship.
The proposed nature center would be a step in the realization of
the West Bay Preservation Area that is planned to include tens of
thousands of acres of conservation land with open space that could be
used for wildlife greenways, hunting, fishing, hiking, bird-watching,
parks, recreational areas and educational areas. A substantial portion
of the West Bay Preservation Area includes the mitigation lands for
the relocated airport in Bay County. These mitigation lands are
currently encumbered by a conservation easement, which is contingent
on the construction of the relocated airport.
JOE Closed Rights-of-Way Sale with Florida Department of
Transportation
In the fourth quarter, JOE closed a transaction with the Florida
Department of Transportation (FDOT) for the sale of approximately
4,000 acres in Northwest Florida to be used for rights-of-way for
future road and highway construction in the region. JOE received $46
million in cash from this transaction. Accounting gain will be
recognized over time as the FDOT completes the design and engineering
of individual roadway segments and the land is conveyed to the FDOT, a
process that is likely to take many years to complete.
Entitlements Pipeline Continues to Strengthen
On December 31, 2006, JOE owned approximately 805,000 acres,
concentrated primarily in Northwest Florida. These holdings included
approximately 334,000 acres within 10 miles of the coast of the Gulf
of Mexico and approximately 424,000 acres outside the 10-mile coastal
perimeter, plus approximately 47,000 acres in southwest Georgia.
Also, on December 31, 2006, JOE had land-use entitlements in hand
or in process for approximately 44,300 residential units and
approximately 14.5 million square feet of commercial space. An
additional 627 acres was zoned for commercial uses. These entitlements
are on approximately 58,000 acres.
"Securing land-use entitlements is a priority and a performance
measure," said Chris Corr, JOE's Chief Strategy Officer. "Land-use
entitlements are fundamental to our value creation strategy. For JOE,
they represent value we have created but not yet monetized. That's why
we have made securing entitlements a core competency for JOE; it's why
we've made it a significant measure of our success."
During the fourth quarter, the Florida Department of Community
Affairs found that the Bonfire Beach comprehensive plan amendment is
in compliance with all applicable laws. Bonfire Beach, located in
Mexico Beach in Bay County, is being planned for resort and seasonal
residential development. The land-use plan, now final, provides for
750 residential units and 70,000 square feet of commercial space on
550 acres. Additional regulatory steps remain before development work
can begin.
In November, the Town of Cedar Grove voted to adopt a
comprehensive plan amendment for DeerPoint Cedar Grove, a proposed
750-unit project on 599 acres in Bay County. This new project will
provide important new primary residential choices in eastern Bay
County.
During the fourth quarter, the state of Florida issued a Final
Order for the implementation of the Carrabelle East and St. James
Island comprehensive land-use plan amendments, upholding a ruling that
found these comprehensive land-use plans in compliance with the law.
Franklin County was required to enact remedial measures on portions of
its comprehensive plan, which were enacted in December. Carrabelle
East consists of 600 primary residential units on 200 acres and the
St. James Island land-use plan provides for 2,840 resort and rural
residential units on 5,204 acres.
Also, in the fourth quarter, an administrative law judge denied
all challenges related to the West Bay DSAP and College Station
projects in Bay County. The Florida Department of Community Affairs is
expected to issue its final order for these two projects later this
quarter. The West Bay DSAP consists of 5,842 residential units, 4.3
million square feet of commercial space near the relocated airport
site, and 800 wet and dry boat slips all in Bay County. College
Station is being planned for 800 primary residential units on 567
acres.
"We will remain tightly focused on securing land-use entitlements,
regardless of market conditions," said Corr. "We know that it will
never get any easier to entitle land in Florida. That's just one
reason we're committed to building as strong a pipeline as possible."
See Tables 1, 2 and 3 below for additional information about our
entitlements currently in hand or in process.
Court Upholds Regional General Permit for 48,150 Acres in Walton
and Bay Counties
In the fourth quarter, the U.S. District Court in Jacksonville
upheld a Regional General Permit (RGP) issued to JOE by the U.S. Army
Corps of Engineers (USACE) in 2004 to implement large-scale
environmental and development planning for 48,150 acres in Walton and
Bay Counties.
The court vacated its previously granted temporary injunction that
halted further implementation of the RGP. The plaintiffs have appealed
the ruling. This legal action has had only a minimal effect to date on
JOE's real estate development activity.
"JOE joined with a coalition of local citizens, leaders and local
and national environmental groups in an effort to create a model for
large-scale ecological protection across an entire region, which
encompasses multiple watersheds," said Corr. "The RGP is also the
result of an interagency comprehensive regional planning effort in
which the USACE, State of Florida, the Florida Department of
Environmental Protection, the U.S. Fish and Wildlife Service, the
National Marine Fisheries Service, the U.S. Environmental Protection
Agency and JOE all participated."
2007 OUTLOOK
"The overall outlook for JOE's performance in 2007 reflects many
of the same challenges we experienced in 2006," said JOE's Chief
Financial Officer Michael N. Regan. "We anticipate that 2007's results
will be partly a function of supply-demand balance in our residential
markets, as well as the confidence level of retail and commercial
users in the long-term health of Northwest Florida."
"Specifically, we expect 2007 to be much like 2006 in our
residential segment," said Regan. "A bright spot is expected to be
commercial real estate sales, which we anticipate will continue at the
solid pace consistent with the last couple of years. We believe
commercial real estate customers traditionally take a longer view and
continue to have a positive view of Northwest Florida's long-term
economic prospects. We believe Rural Land Sales have the potential for
another strong year, with results driven by the sale of a few larger
tracts."
"As we work our way through this phase of the real estate cycle,
our objective is to remain flexible, keep debt at a manageable level
and leverage our low-basis land to be well-positioned to create value
when the market returns," said Regan.
Residential Real Estate
"High inventories of existing residential product will likely
continue to restrain sales of new product in the majority of our
markets in 2007," said Regan. "We expect that it will take some time
before supply and demand reach equilibrium."
"During this phase of the real estate cycle, we continue to
entitle and plan projects," said Regan. "We are limiting construction
activity, however, as we wait for the market to rebound. We feel we
have adequate lot inventory so when the market turns, we will be
ready. In 2007, we have started to see improved traffic in sales
centers in many communities."
"The mix of residential product sold in 2007 will differ
significantly from that of 2006," said Regan. "As we expand our
strategic alliances with national, regional and local homebuilders,
residential sales are expected to be dominated by transactions with
homebuilders, with a declining proportion of sales to individuals.
Because there are so many variables involved, it is difficult to
forecast the amount and timing of homebuilder transactions. We closed
on several sales to homebuilders in the last half of 2006 and we
expect to announce additional relationships and sales during 2007."
Commercial Real Estate
"Commercial land sales is expected to be a bright spot in 2007,
although we expect substantial variability with respect to the timing
of transactions," said Regan. "We expect to see continued strong
demand for retail land in Northwest Florida as well as industrial
parcels in our commerce parks. Retail sales are expected to include
both stand-alone parcels and retail parcels in our mixed-use
developments."
"We have entered into a listing agreement with Eastdil Secured,
LLC, a wholly-owned subsidiary of Wells Fargo & Company in Atlanta,
for the marketing and potential disposition of JOE's office building
portfolio," said Regan. "The portfolio is located in seven markets
throughout the Southeast and consists of seventeen buildings with
approximately 2.3 million net rentable square feet. Given the
currently low capitalization rates (by historic standards) coupled
with abundant capital flowing into office real estate investments, we
feel that a potentially unique opportunity exists to sell the
portfolio. However, there is obviously significant variability with
respect to the timing of any transaction."
Rural Land Sales
"Full year 2007 Rural Land Sales may be on par with that
experienced in 2006," said Regan. "We completed several large rural
land transactions in 2006, and we may see more of these larger acreage
sales during 2007. The per-acre pricing is expected to vary
significantly depending on the quality, size, and location of the
parcels being sold."
DIVIDENDS AND STOCK REPURCHASE
A quarterly cash dividend of $0.16 per share of common stock was
paid on December 29 to shareholders of record at the close of business
on December 15.
On December 31, 74,272,665 JOE shares were outstanding. The number
of weighted-average diluted shares in the fourth quarter of 2006 was
74,274,077.
During the fourth quarter of 2006, JOE expended an aggregate of
$11.9 million for dividends. The company did not purchase any of its
shares on the open market during the quarter. On December 31,
approximately $103.8 million remained of the company's stock
repurchase authorization. Table 4 below contains additional
information on JOE's repurchase activity since 1998.
Range of Anticipated Share Repurchase Activity Lowered for 2007
During 2006, JOE expended an aggregate of $105.0 million for
dividends ($47.7 million) and the acquisition of its shares ($57.3
million).
"In 2007, we expect to expend approximately $50 to $100 million
for dividends and acquisition of our shares," said Regan. "Our
dividend and repurchase program is an important component to creating
shareholder value. However, we will be prudent in our approach toward
repurchase activity in 2007 considering our other capital commitments.
Our level of investment in the repurchase program will become clearer
as we gain greater visibility of our sales activity as the selling
season begins."
SEGMENT RESULTS
RESIDENTIAL REAL ESTATE
Pretax income from continuing operations for JOE's residential
real estate segment was $8.5 million for the fourth quarter of 2006,
compared to $42.7 million in the fourth quarter of 2005. Fourth
quarter 2006 results include restructuring charges of $0.4 million.
Pretax income from continuing operations for the year 2006 was $36.6
million, compared to $155.4 million for 2005. These results exclude
income from unconsolidated affiliates.
In the fourth quarter of 2006, the residential real estate segment
closed on the sales of 638 units and generated revenues from housing
and home sites of $125.9 million, compared to 630 units and $195.7
million in revenues in the fourth quarter of 2005. For the year 2006,
the residential real estate segment closed on the sales of 1,902 units
and generated revenues from housing and home sites of $498.7 million,
compared to 2,309 units and $692.9 million in revenues in 2005. See
Table 5 below for additional information on our residential sales
activity.
JOE accepted contracts for 131 homes and 317 home sites in the
fourth quarter of 2006, compared to 286 homes and 104 home sites in
the fourth quarter last year. JOE accepted contracts for 776 homes and
565 home sites in 2006, compared to 1,653 homes and 514 home sites in
2005.
The decrease in home contracts and increase in home-site contracts
reflect our strategic shift away from vertical homebuilding and our
growing relationships with homebuilders. See Table 6 below for
additional information on units placed under contract.
The backlog of home sites and homes under contract was 268 units
as of December 31, 2006, compared to 822 units as of December 31,
2005. "As a result of the slower sales pace in 2006, our backlog
continued to be reduced in the fourth quarter as closings of units far
outpaced units placed under contract," said Greene. "We are also in a
transition stage in several of our high-volume projects, with Paseos,
Rivercrest, St. Johns Golf & Country Club and Artisan Park at or
nearing sell-out." See Table 7 below for additional backlog
information.
For the fourth quarter, the average margin for homes and home
sites was 15.4 percent and 36.0 percent, compared to 21.4 percent and
67.4 percent, respectively, for the same period in 2005. The
contraction of home and home site margins reflects a change of mix
with more sales of primary community lots to homebuilders and fewer
sales of higher-end resort products.
JOE continues to expand the role of national homebuilders in our
communities. See Table 8 below for additional information on
homebuilder activity. Additional information on project activity is in
Table 9 below.
During the fourth quarter, the WaterColor Inn was ranked Northwest
Florida's only AAA "Four Diamond" hotel. "The WaterColor Inn continues
to set a new hospitality standard not only for this region, but for
resorts nationwide," said Greene.
COMMERCIAL REAL ESTATE
Pretax income from continuing operations for the commercial
segment was $13.3 million for the fourth quarter of 2006, compared to
$4.7 million in the same quarter of 2005. For the year 2006, pretax
income from continuing operations was $21.7 million compared to $22.2
million in 2005.
Pretax income from discontinued operations for the fourth quarter
of 2006 was $1.8 million, compared to $5.6 million in the fourth
quarter of 2005. For the year 2006, pretax income from discontinued
operations was $17.3 million compared to $20.8 million in 2005. See
Table of Quarterly Discontinued Operations below for net-of-tax
results.
"During the fourth quarter, we closed on four commercial
transactions at SouthWood, highlighted by a $12 million deal with The
Sembler Company, a privately-owned regional shopping center
development and management firm," said Greene. "Sembler plans to break
ground later this year on a 430,000 square foot retail center expected
to be anchored by a home improvement store and a first-class soft
goods retailer. We continue to see increased interest in SouthWood
from national and regional retailers and are pleased that Sembler will
expand the retail offerings for the SouthWood community."
"In Bay, Walton and Gulf counties, we continue to see interest in
our commercial offerings from commerce parks to retail outparcels,"
said Greene. "Highlights of the quarter include a $4.5 million sale of
a land parcel to the Port St. Joe Port authority and a $4.9 million
sale of a 30,000 square foot, JOE-developed commercial office building
at Beckrich Office Park, which is presented in discontinued
operations."
Information on JOE's commercial land sales activity can be found
in Table 10 below. Table 11 contains information on JOE's portfolio of
office buildings.
RURAL LAND SALES
The Rural Land Sales segment had pretax income from continuing
operations of $26.8 million in the fourth quarter of 2006, compared to
$19.1 million in the fourth quarter of 2005. For the year 2006, the
Rural Land Sales segment had pretax income from continuing operations
of $72.5 million, compared to $50.6 million for the year 2005.
In the fourth quarter of 2006, sales of Woodlands, JOE's rural
recreational land, totaled $29.7 million for 16,695 acres at an
average price of $1,800 per acre, compared to $17.0 million for 7,805
acres at an average price of $2,200 per acre in the fourth quarter of
2005. The results in the fourth quarter were primarily due to two
transactions totaling 15,469 acres for an average price of $1,700 per
acre. For the year 2006, JOE sold 34,335 acres of rural recreational
land at an average price of $2,600 per acre, compared with 28,958
acres of rural land at an average price of $2,400 per acre in 2005.
Additional information on JOE's Rural Land Sales activity can be
found in Table 12 below.
TABLES AND DATA
Table 1 summarizes JOE's Florida residential and mixed-use
projects with land-use entitlements as of December 31, 2006. This
table includes multifamily projects, which are marketed by our
commercial group. Also detailed in the table are commercial
entitlements, in terms of square feet, that are entitled as part of
JOE's mixed-use projects. These commercial entitlements include
retail, office and industrial uses.
Table 1
Summary of Land-Use Entitlements (1)
Active JOE Residential and Mixed-Use Projects in Florida
December 31, 2006
Project
Project Class.(2) County Acres Project Units(3)
- ------------------ --------- ------------ ----------- ----------------
In Development:(6)
- ------------------
Artisan Park (7) PR Osceola 175 616
Cutter Ridge PR Franklin 10 25
Hawks Landing PR Bay 88 168
Landings at
Wetappo RR Gulf 113 24
Palmetto Trace PR Bay 141 481
Paseos (7) PR Palm Beach 175 325
RiverCamps on
Crooked Creek RS Bay 1,491 408
Rivercrest (7) PR Hillsborough 413 1,382
RiverSide at
Chipola RR Calhoun 120 10
RiverTown PR St. Johns 4,170 4,500
SevenShores
(Perico Island) RS Manatee 192 686
SouthWood VAR Leon 3,370 4,770
St. Johns Golf &
Country Club PR St. Johns 880 799
SummerCamp RS Franklin 762 499
The Hammocks PR Bay 133 457
Victoria Park PR Volusia 1,859 4,200
WaterColor RS Walton 499 1,140
WaterSound VAR Walton 2,425 1,432
WaterSound Beach RS Walton 256 511
WaterSound West
Beach RS Walton 62 199
WindMark Beach RS Gulf 2,020 1,662
----------- ----------------
Subtotal 19,354 24,294
----------- ----------------
In Pre-
Development:(6)
- ------------------
Avenue A PR Gulf 6 96
Bayview Estates PR Gulf 31 45
Bayview
Multifamily PR Gulf 20 300
Beckrich NE PR Bay 15 70
Boggy Creek PR Bay 630 526
Bonfire Beach RS Bay 550 750
College Station PR Bay 567 800
East Lake Creek PR Bay 81 313
East Lake Powell RS Bay 181 360
Hills Road RS Bay 30 356
Howards Creek RR Gulf 8 33
Laguna Beach West PR Bay 59 382
Long Avenue PR Gulf 10 30
Palmetto Bayou PR Bay 58 217
ParkSide PR Bay 48 480
Pier Park NE VAR Bay 57 460
Pier Park
Timeshare RS Bay 13 125
PineWood
(ParkPlace) RS Bay 118 264
Port St. Joe Town
Center VAR Gulf 180 624
Powell Adams RS Bay 32 1,425
RiverCamps on
Sandy Creek RS Bay 6,500 624
Sabal Island RS Gulf 45 18
The Cove RR Gulf 57 81
Timber Island (8) RS Franklin 49 407
Topsail VAR Walton 115 627
Wavecrest RS Bay 7 95
WestBay Corners SE VAR Bay 100 524
WestBay Corners SW PR Bay 64 160
WestBay DSAP VAR Bay 15,089 5,842
WestBay Landing VAR Bay 950 214
WhiteFence Farms,
Red Hills RR Leon 373 61
----------- ----------------
Subtotal 26,043 16,309
----------- ----------------
Total 45,397 40,603
=========== ================
Residential Residential Remaining
Units Units Under Total Commercial
Closed Contract Residential Entitlements
Since as of Units (Sq. Ft.)
Project Inception 12/31/06(4) Remaining(4) (5)
- ------------------ ----------- ------------ ------------- ------------
In Development:(6)
- ------------------
Artisan Park (7) 498 29 89 --
Cutter Ridge -- -- 25 --
Hawks Landing 59 2 107 --
Landings at
Wetappo 7 -- 17 --
Palmetto Trace 460 -- 21 --
Paseos (7) 322 -- 3 --
RiverCamps on
Crooked Creek 182 -- 226 --
Rivercrest (7) 1,365 5 12 --
RiverSide at
Chipola 2 -- 8 --
RiverTown -- -- 4,500 500,000
SevenShores
(Perico Island) -- 9 677 9,000
SouthWood 2,142 19 2,609 4,715,360
St. Johns Golf &
Country Club 785 5 9 --
SummerCamp 80 1 418 25,000
The Hammocks 453 -- 4 --
Victoria Park 1,294 3 2,903 854,254
WaterColor 870 -- 270 47,600
WaterSound 15 -- 1,417 457,380
WaterSound Beach 419 3 89 29,000
WaterSound West
Beach 13 -- 186 --
WindMark Beach 127 -- 1,535 75,000
----------- ------------ ------------- ------------
Subtotal 9,093 76 15,125 6,712,594
----------- ------------ ------------- ------------
In Pre-
Development:(6)
- ------------------
Avenue A -- -- 96 --
Bayview Estates -- -- 45 --
Bayview
Multifamily -- -- 300 --
Beckrich NE -- -- 70 --
Boggy Creek -- -- 526 --
Bonfire Beach -- -- 750 70,000
College Station -- -- 800 --
East Lake Creek -- -- 313 --
East Lake Powell -- -- 360 30,000
Hills Road -- -- 356 --
Howards Creek -- -- 33 --
Laguna Beach West -- -- 382 --
Long Avenue -- -- 30 --
Palmetto Bayou -- -- 217 90,000
ParkSide -- -- 480 --
Pier Park NE -- -- 460 190,000
Pier Park
Timeshare -- -- 125 --
PineWood
(ParkPlace) -- -- 264 --
Port St. Joe Town
Center -- -- 624 500,000
Powell Adams -- -- 1,425 --
RiverCamps on
Sandy Creek -- -- 624 --
Sabal Island -- -- 18 --
The Cove -- -- 81 --
Timber Island (8) -- -- 407 14,500
Topsail -- -- 627 300,000
Wavecrest -- -- 95 --
WestBay Corners SE -- -- 524 50,000
WestBay Corners SW -- -- 160 --
WestBay DSAP -- -- 5,842 4,330,000
WestBay Landing -- -- 214 --
WhiteFence Farms,
Red Hills -- -- 61 --
----------- ------------ ------------- ------------
Subtotal -- -- 16,309 5,574,500
----------- ------------ ------------- ------------
Total 9,093 76 31,434 12,287,094
=========== ============ ============= ============
(1) A project is deemed land-use entitled when all major discretionary
governmental land-use approvals have been received. Some of these
projects may require additional permits for development and/or build-
out; they also may be subject to legal challenge.
(2) Current JOE land classifications:
- -- PR - Primary residential.
- -- RS -Resort and seasonal residential, which includes RiverCamps.
- -- RR -Rural residential, which includes WhiteFence Farms, Homesteads
and other rural residential products.
- -- VAR -Includes multiple classifications. For example, a project may
have substantial commercial and residential acres.
(3) Project units represent the maximum number of units entitled or
currently expected at full build-out. The actual number of units or
square feet to be constructed at full build-out may be lower than the
number entitled or currently expected.
(4) Excludes our Mid-Atlantic region that includes activity in North
and South Carolina where we are primarily engaged in homebuilding,
and not obtaining entitlements. As of December 31, 2006, the Mid-
Atlantic region had 1,492 home sites owned or under contract. Of that
total, 191 have been sold and 1,301 remain to be sold.
(5) Represents the remaining square feet with land-use entitlements as
designated in a development order or expected given the existing
property land use or zoning and present plans. Commercial
entitlements include retail, office and industrial uses. Industrial
uses total 6,128,381 square feet including SouthWood, RiverTown and
the West Bay DSAP.
(6) A project is "in development" when construction on the project has
commenced. A project in "pre-development" has land-use entitlements
but is still under internal evaluation or requires one or more
additional permits prior to the commencement of construction.
(7) Artisan Park is 74 percent owned by JOE. Paseos and Rivercrest are
each 50 percent owned by JOE.
(8) Timber Island entitlements include seven residential units and 400
units for hotel or other transient uses (including units held with
fractional ownership such as private residence clubs) and include 480
wet/dry marina slips.
Table 2
Proposed JOE Residential and Mixed-Use Projects
In the Land-Use Entitlement Process in Florida (1)
December 31, 2006
Estimated
Estimated Commercial
Project Project Entitlements
Project Class.(2) County Acres Units(3) (Sq. Ft.)(3)
- -------------------- --------- -------- ------- --------- ------------
Beacon Hill RR Gulf 3 12 --
Carrabelle East PR Franklin 200 600 --
Country Walk RR Bay 1,300 125 --
DeerPoint Cedar
Grove PR Bay 599 750 --
Panama City Mixed
Use VAR Bay 1,414 3,100 635,000
Port St. Joe Draper,
Phase I PR Gulf 639 1,200 --
SouthSide VAR Leon 1,625 2,800 1,150,000
South Walton
Multifamily PR Walton 40 212 --
Star Avenue North VAR Bay 271 1,248 380,000
St. James Island
McIntyre RR Franklin 1,704 340 --
St. James Island
RiverCamps RS Franklin 2,500 500 --
St. James Island
Granite Point RS Franklin 1,000 2,000 --
The Cove, Phase 3 RR Gulf 7 26 --
------- --------- ------------
Total 11,302 12,913 2,165,000
======= ========= ============
(1) A project is deemed to be in the land-use entitlement process when
customary steps necessary for the preparation and submittal of an
application, such as conducting pre-application meetings or similar
discussions with governmental officials, have commenced and/or an
application has been filed. All projects listed have significant
entitlement steps remaining that could affect their timing, scale and
viability. There can be no assurance that these entitlements will
ultimately be received.
(2) Current JOE land classifications:
- -- PR - Primary residential.
- -- RS - Resort and seasonal residential, which includes RiverCamps.
- -- RR - Rural residential, which includes WhiteFence Farms, Homesteads
and other rural residential products.
- -- VAR - Includes multiple classifications. For example, a project may
have substantial commercial and residential acres.
(3) The actual number of units or square feet to be constructed at
full build-out may be lower than the number ultimately entitled.
Table 3
Summary of Additional Commercial Land-Use Entitlements (1)
(Commercial Projects Not Included in Tables 1 and 2 Above)
Active JOE Florida Commercial Projects
December 31, 2006
Acres Under
Acres Sold Contract
Project Since As of Total Acres
Project County Acres Inception 12/31/06 Remaining
- ----------------- --------- ------- ---------- ----------- -----------
Airport Commerce Leon 45 -- 5 40
Airport Road Franklin 13 -- -- 13
Alf Coleman
Retail Bay 25 16 1 8
Avery St. Retail Bay 10 10 -- --
Beach Commerce Bay 157 149 2 6
Beach Commerce II Bay 112 11 -- 101
Beckrich Office
Park Bay 16 12 -- 4
Beckrich Retail Bay 47 19 2 26
Cedar Grove
Commerce Bay 51 -- -- 51
Franklin
Industrial Franklin 7 -- -- 7
Glades Retail Bay 14 -- -- 14
Gulf Boulevard Bay 76 21 -- 55
Hammock Creek
Commerce Gadsden 165 27 -- 138
Mill Creek
Commerce Bay 37 -- -- 37
Nautilus Court Bay 11 4 -- 7
Port St. Joe
Commerce II Gulf 39 9 -- 30
Port St. Joe
Commerce III Gulf 54 -- -- 54
Port St. Joe
Medical Gulf 19 -- -- 19
Powell Hills
Retail Bay 44 -- 44 --
South Walton
Commerce Walton 39 18 4 17
------- ---------- ----------- -----------
Total 981 296 58 627
======= ========== =========== ===========
(1) A project is deemed land-use entitled when all major discretionary
governmental land-use approvals have been received. Some of these
projects may require additional permits for development and/or build-
out; they also may be subject to legal challenge. Includes
significant JOE projects that are either operating, under development
or in the pre-development stage.
Table 4
Stock Repurchase Activity
Through December 31, 2006
Shares
--------------------------------------
Total Cost
(in Average
Period Purchased Surrendered(1) Total millions) Price
- ------------ ----------- -------------- ----------- ---------- -------
1998 2,574,200 11,890 2,586,090 $55.5 $21.41
1999 2,843,200 11,890 2,855,090 69.5 24.31
2000 3,517,066 -- 3,517,066 80.2 22.78
2001 7,071,300 58,550 7,129,850 176.0 24.67
2002 5,169,906 256,729 5,426,635 157.6 29.03
2003 2,555,174 812,802 3,367,976 102.9 30.55
2004 1,561,565 884,633 2,446,198 105.0 42.90
2005 1,705,000 68,648 1,773,648 124.8 70.33
2006 948,200 148,417 1,096,617 57.3 52.22
----------- -------------- ----------- ---------- -------
Total/
Weighted
Average 27,945,611 2,253,559 30,199,170 $928.8 $30.73
=========== ============== =========== ========== =======
(1) Shares surrendered by company executives as payment for the strike
price and taxes due on exercised stock options and the vesting of
restricted stock.
Table 5
Residential Real Estate
Sales Activity
Three Months Ended December 31,
($ in millions)
2006 2005
------------------------------- -------------------------------
Number Number
of Cost of of Cost of
Units Sales Gross Units Sales Gross
Closed Revenue (1) Profit Closed Revenue (1) Profit
------- ------- ------- ------- ------- ------- ------- -------
Home
Sites
(2) 334 $30.8 $19.7 $11.1 113 $36.2 $11.8 $24.4
Homes
(3) 304 95.1 80.5 14.6 517 159.5 125.3 34.2
------- ------- ------- ------- ------- -------
Total 638 $125.9 $100.2 $25.7 630 $195.7 $137.1 $58.6
======= ======= ======= ======= ======= ======= ======= =======
Year Ended December 31,
($ in millions)
2006 2005
------------------------------- -------------------------------
Number Number
of Cost of of Cost of
Units Sales Gross Units Sales Gross
Closed Revenue (1) Profit Closed Revenue (1) Profit
------- ------- ------- ------- ------- ------- ------- -------
Home
Sites
(2) 563 $69.3 $36.0 $33.3 513 $155.3 $42.4 $112.9
Homes
(3) 1,339 429.4 344.3 85.1 1,796 537.6 440.3 97.3
------- ------- ------- ------- ------- -------
Total 1,902 $498.7 $380.3 $118.4 2,309 $692.9 $482.7 $210.2
======= ======= ======= ======= ======= ======= ======= =======
(1) Cost of sales for home sites in the fourth quarter of 2006
consisted of $17.1 million in direct costs, $0.5 million in selling
costs and $2.1 million in indirect costs. Cost of sales for home
sites in the fourth quarter of 2005 consisted of $8.0 million in
direct costs, $1.1 million in selling costs and $2.7 million in
indirect costs. Cost of sales for homes in the fourth quarter of 2006
consisted of $67.6 million in direct costs, $5.0 million in selling
costs and $7.8 million in indirect costs. Cost of sales for homes in
the fourth quarter of 2005 consisted of $107.1 million in direct
costs, $8.0 million in selling costs and $10.2 million in indirect
costs.
(2) Profit has been deferred as a result of continuing development
obligations at SummerCamp and WaterSound West Beach. As a
consequence, revenue recognition and closings may occur in different
periods.
(3) Homes include single-family, multifamily and Private Residence
Club (PRC) units. Multifamily and PRC revenue is recognized, if
preconditions are met, on a percentage-of-completion basis. As a
consequence, revenue recognition and closings may occur in different
periods. Percentage-of-completion accounting was utilized at Artisan
Park in the fourth quarter of 2006 and 2005. Paseos and Rivercrest,
two unconsolidated joint ventures, are not included. Sales are
substantially complete at both of these communities.
Table 6
Residential Real Estate
Units Placed Under Contract
Three Months Ended December 31,
2006 2005 Percentage Change
------------ ------------ -----------------
Home Sites 317 104 204.8 %
Homes (1) 131 286 (54.2)
------------ ------------ -----------------
Total (1) 448 390 14.9 %
============ ============ =================
Year Ended December 31,
2006 2005 Percentage Change
------------ ------------ -----------------
Home Sites 565 514 9.9 %
Homes (1) 776 1,653 (53.1)
------------ ------------ -----------------
Total (1) 1,341 2,167 (38.1) %
============ ============ =================
(1) Homes include single-family homes, multifamily and PRC units.
Paseos and Rivercrest, two unconsolidated joint ventures, are not
included. Sales are substantially complete at both of these
communities.
Table 7
Residential Real Estate
Backlog (1) (2)
($ in millions)
December 31, 2006 December 31, 2005
---------------------- ---------------------
Units Revenues Units Revenues
----------- ---------- ---------- ----------
Home Sites 21 $3.9 12 $2.2
Homes (3) 247 87.6 810 278.7
----------- ---------- ---------- ----------
Total 268 $91.5 822 $280.9
=========== ========== ========== ==========
(1) Backlog represents units under contract but not yet closed. Paseos
and Rivercrest, two joint ventures 50 percent owned by JOE, are not
included. Backlog at Paseos and Rivercrest totaled $1.2 million for 5
units at the end of the fourth quarter of 2006, compared to $108.3
million for 414 units at the end of the fourth quarter of 2005.
(2) Excludes national homebuilder units committed but not under
contract that are included in Table 8.
(3) As of December 31, 2006, there were 24 units subject to
percentage-of-completion accounting in the homes backlog with related
revenue of $12.5 million (of which $11.9 million had previously been
recognized in the financial statements). As of December 31, 2005,
there were 151 units subject to percentage-of-completion accounting
with related revenue of $64.8 million (of which $41.3 million had
previously been recognized in the financial statements).
Table 8
Residential Real Estate
National Homebuilder Summary
of Home Site Commitments and Purchases
April 1, 2006 through December 31, 2006
Total Units Remaining
Total Units Closed Average Price Units
Committed(1) 12/31/06 Closed Units To Close
------------ ------------ -------------- -------------
Beazer Homes
Beckrich Point 70 0 N/A 70
Laguna West 350 0 N/A 350
SouthWood 163 107 $42,941 56
Victoria Park 179 179 $66,369 0
David Weekley
Homes
Hawks Landing 99 10 $60,900 89
Palmetto Trace 56 48 $77,688 8
PineWood
(ParkPlace) 70 0 N/A 70
RiverCamps on
Crooked Creek 3 3 $209,667 0
SouthWood 140 0 N/A 140
Victoria Park 72 72 $102,444 0
WaterSound 7 7 $144,248 0
------------ ------------ -------------
Total 1,209 426 783
============ ============ =============
(1) Includes amounts under contract or committed.
Table 9
Residential Real Estate Sales Activity
Three Months Ended December 31,
($ in thousands)
2006
----------------------------------------------
Units Closed Avg. Price Accepted(1) Avg. Price
------------ ---------- ----------- ----------
Artisan Park (2)
Home Sites 0 $0.0 0 $0.0
Single-Family Homes 17 516.0 (3) 772.0
Multifamily Homes 36 427.9 (1) 399.9
Hawks Landing
Home Sites 31 71.2 12 63.3
Palmetto Trace
Home Sites 9 81.2 9 81.2
Single-Family Homes 2 296.8 2 296.8
Paseos (2)
Single-Family Homes 3 582.8 1 485.0
RiverCamps on Crooked
Creek
Home Sites 0 0.0 0 0.0
Rivercrest (2)
Single-Family Homes 68 222.5 0 0.0
Saussy Burbank
Single-Family Homes 184 298.9 121 287.8
SevenShores
Multifamily Homes 0 0.0 0 0.0
SouthWood
Home Sites 97 54.4 106 59.6
Single-Family Homes 21 289.6 0 0.0
St. Johns G & CC
Home Sites 1 135.0 1 135.0
Single-Family Homes 7 435.2 8 462.3
SummerCamp
Home Sites 7 709.5 5 874.0
Single-Family Homes 0 0.0 0 0.0
The Hammocks
Home Sites 0 0.0 0 0.0
Single-Family Homes 0 0.0 (1) 152.7
Victoria Park
Home Sites 181 66.4 182 67.7
Single-Family Homes 28 347.5 4 164.9
WaterColor
Home Sites 0 0.0 0 0.0
Single/Multifamily
Homes 2 712.4 1 813.1
PRC Shares 0 0.0 0 0.0
WaterSound
Home Sites 1 165.0 0 0.0
WaterSound Beach
Home Sites 1 1,843.8 0 0.0
Single-Family Homes 7 1,274.8 0 0.0
PRC Shares 0 0.0 0 0.0
WaterSound West Beach
Home Sites 0 0.0 0 0.0
Single-Family Homes 0 0.0 0 0.0
WindMark Beach
Home Sites 6 200.9 2 238.7
------------ ---------- ----------- ----------
Total 709 $217.8 449 $141.0
============ ========== =========== ==========
2005
----------------------------------------------
Units Closed Avg. Price Accepted(1) Avg. Price
------------ ---------- ----------- ----------
Artisan Park (2)
Home Sites 7 $463.6 7 $463.6
Single-Family Homes 51 595.8 24 678.5
Multifamily Homes 54 294.7 12 510.9
Hawks Landing
Home Sites 0 0.0 0 0.0
Palmetto Trace
Home Sites 15 75.0 15 75.0
Single-Family Homes 41 257.8 9 277.2
Paseos (2)
Single-Family Homes 28 482.4 0 0.0
RiverCamps on Crooked
Creek
Home Sites 6 282.5 8 272.5
Rivercrest (2)
Single-Family Homes 121 179.6 4 207.3
Saussy Burbank
Single-Family Homes 197 258.4 130 272.5
SevenShores
Multifamily Homes 0 0.0 0 0.0
SouthWood
Home Sites 19 113.9 26 110.8
Single-Family Homes 43 282.3 58 293.5
St. Johns G & CC
Home Sites 11 72.1 0 0.0
Single-Family Homes 18 446.7 6 587.9
SummerCamp
Home Sites 16 260.9 16 260.9
Single-Family Homes 0 0.0 1 902.4
The Hammocks
Home Sites 0 0.0 0 0.0
Single-Family Homes 19 164.5 6 245.8
Victoria Park
Home Sites 28 144.2 23 137.9
Single-Family Homes 80 276.3 40 351.2
WaterColor
Home Sites 1 571.4 0 0.0
Single/Multifamily
Homes 5 966.0 0 0.0
PRC Shares 0 0.0 0 0.0
WaterSound
Home Sites 0 0.0 0 0.0
WaterSound Beach
Home Sites 6 1,778.9 6 1,778.9
Single-Family Homes 9 1,547.2 0 0.0
PRC Shares 0 0.0 0 0.0
WaterSound West Beach
Home Sites 4 737.9 3 736.4
Single-Family Homes 0 0.0 0 0.0
WindMark Beach
Home Sites 0 0.0 0 0.0
------------ ---------- ----------- ----------
Total 779 $306.3 394 $324.2
============ ========== =========== ==========
Year Ended December 31,
($ in thousands)
2006
----------------------------------------------
Units Closed Avg. Price Accepted(1) Avg. Price
------------ ---------- ----------- ----------
Artisan Park (2)
Home Sites 1 $495.0 1 $495.0
Single-Family Homes 73 626.8 19 661.5
Multifamily Homes 136 414.3 9 451.2
Bridgeport
Home Sites 0 0.0 0 0.0
Hampton Park/James
Island
Single-Family Homes 0 0.0 0 0.0
Hawks Landing
Home Sites 59 71.8 61 72.0
Palmetto Trace
Home Sites 33 78.9 33 78.9
Single-Family Homes 48 310.6 10 289.0
Paseos (2)
Single-Family Homes 66 532.4 (1) 490.3
RiverCamps on Crooked
Creek
Home Sites 7 232.7 5 228.8
Rivercrest (2)
Single-Family Homes 333 207.4 (9) 237.2
Saussy Burbank
Single-Family Homes 637 285.6 611 290.8
SevenShores
Multifamily Homes 0 0.0 9 1,013.8
SouthWood
Home Sites 134 58.0 140 60.7
Single-Family Homes 162 300.1 24 316.4
St. Johns G & CC
Home Sites 7 144.7 9 147.6
Single-Family Homes 54 519.5 35 522.1
SummerCamp
Home Sites 16 500.0 16 500.0
Single-Family Homes 0 0.0 0 0.0
The Hammocks
Home Sites 0 0.0 0 0.0
Single-Family Homes 39 151.1 (1) 152.7
Victoria Park
Home Sites 257 80.0 256 79.6
Single-Family Homes 170 319.8 36 315.5
WaterColor
Home Sites 2 318.2 2 318.2
Single/Multifamily
Homes 8 981.1 5 1,025.7
PRC Shares 0 0.0 0 0.0
WaterSound
Home Sites 15 162.3 15 162.3
WaterSound Beach
Home Sites 1 1,843.8 2 1,632.6
Single-Family Homes 12 1,162.2 12 1,156.2
PRC Shares 0 0.0 7 275.0
WaterSound West Beach
Home Sites 3 441.4 2 293.9
Single-Family Homes 0 0.0 0 0.0
WindMarkBeach
Home Sites 23 242.4 23 242.4
------------ ---------- ----------- ----------
Total 2,296 $270.0 1,331 $241.2
============ ========== =========== ==========
2005
----------------------------------------------
Units Closed Avg. Price Accepted(1) Avg. Price
------------ ---------- ----------- ----------
Artisan Park (2)
Home Sites 16 $425.6 16 $425.6
Single-Family Homes 95 529.3 85 654.4
Multifamily Homes 86 294.2 88 472.4
Bridgeport
Home Sites 36 23.7 36 23.7
Hampton Park/James
Island
Single-Family Homes 13 419.7 4 502.4
Hawks Landing
Home Sites 0 0.0 0 0.0
Palmetto Trace
Home Sites 15 75.0 15 75.0
Single-Family Homes 141 214.5 104 275.7
Paseos (2)
Single-Family Homes 117 450.8 1 773.0
RiverCamps on Crooked
Creek
Home Sites 111 315.9 113 314.6
Rivercrest (2)
Single-Family Homes 491 168.5 294 203.5
Saussy Burbank
Single-Family Homes 699 255.0 783 261.2
SevenShores
Multifamily Homes 0 0.0 0 0.0
SouthWood
Home Sites 63 125.1 67 125.5
Single-Family Homes 216 254.1 209 290.2
St. Johns G & CC
Home Sites 43 68.4 35 70.2
Single-Family Homes 111 412.6 47 488.5
SummerCamp
Home Sites 64 350.2 64 350.2
Single-Family Homes 0 0.0 1 968.7
The Hammocks
Home Sites 0 0.0 0 0.0
Single-Family Homes 79 164.7 71 154.2
Victoria Park
Home Sites 64 130.9 61 135.3
Single-Family Homes 299 267.4 261 303.8
WaterColor
Home Sites 50 660.6 50 660.6
Single/Multifamily
Homes 8 885.5 0 0.0
PRC Shares 1 285.0 1 285.0
WaterSound
Home Sites 0 0.0 0 0.0
WaterSound Beach
Home Sites 46 1,128.4 46 1,128.4
Single-Family Homes 48 1,501.1 (1) 1,250.0
PRC Shares 0 0.0 0 0.0
WaterSound West Beach
Home Sites 10 719.4 11 720.9
Single-Family Homes 0 0.0 0 0.0
WindMark Beach
Home Sites 0 0.0 0 0.0
------------ ---------- ----------- ----------
Total 2,922 $299.7 2,462 $302.8
============ ========== =========== ==========
(1) Contracts accepted during the quarter. Contracts accepted and
closed in the same quarter are also included as units closed. Average
prices shown reflect variations in the product mix across time
periods as well as price changes for similar product.
(2) JOE owns 74 percent of Artisan Park and 50 percent of each of
Paseos and Rivercrest. Sales from Paseos and Rivercrest are not
consolidated with the financial results of residential real estate.
Table 10
Commercial Northwest Florida Land Sales
Three Months Ended December 31,
Gross Sales Price Average Price/Acre
Number of Sales Acres Sold (in thousands) (in thousands)
--------------- ---------- ----------------- ------------------
2006 11 145 $27,390 $189
2005 6 21 3,961 186
Year Ended December 31,
Gross Sales Price Average Price/Acre
Number of Sales Acres Sold (in thousands) (in thousands)
--------------- ---------- ----------------- ------------------
2006 29 245 $48,891 $200
2005 36 220 30,885 140
Table 11
Investment Portfolio of Office Buildings
December 31, 2006
Number of Net Rentable Leased
Location Properties Square Feet Percentage
- ------------- ------------------ ------------------- -----------------
Florida 6 609,000 94%
Georgia 8 1,289,000 78
Virginia 3 354,000 97
------------------ ------------------- -----------------
Total 17 2,252,000 85%
================== =================== =================
Table 12
Rural Land Sales
Three Months Ended December 31, 2006
Average
Gross Sales Price Price/Acre
Number of Sales Acres Sold (in thousands) (in thousands)
--------------- ---------- ----------------- --------------
2006
Woodlands 9 16,695 $29,672 $1.8
Other 6 162 1,871 11.5
--------------- ---------- ----------------- --------------
Total 15 16,857 $31,543 $1.9
=============== ========== ================= ==============
2005
Woodlands 29 7,805 16,979 2.2
FloridaWild 1 953 2,400 2.5
Homesteads 1 55 1,840 33.4
Other 3 297 3,483 11.7
--------------- ---------- ----------------- --------------
Total 34 9,110 $24,702 $2.7
=============== ========== ================= ==============
Year Ended December 31, 2006
Average
Gross Sales Price Price/Acre
Number of Sales Acres Sold (in thousands) (in thousands)
--------------- ---------- ----------------- --------------
2006
Woodlands 63 28,935 $60,265 $2.1
FloridaWild 6 4,692 17,519 3.7
Homestead 1 20 150 7.5
Other 14 688 12,056 17.5
--------------- ---------- ----------------- --------------
Total 84 34,335 $89,990 $2.6
=============== ========== ================= ==============
2005
Woodlands 90 25,876 49,488 1.9
FloridaWild 1 953 2,400 2.5
Homesteads 42 1,738 8,722 5.0
Other 9 391 8,250 21.1
--------------- ---------- ----------------- --------------
Total 142 28,958 $68,860 $2.4
=============== ========== ================= ==============
FINANCIAL DATA
($ in millions except per share amounts)
Summary Balance Sheet
December 31, 2006 December 31, 2005
----------------- -----------------
Assets
Investment in real estate $1,213.5 $1,036.2
Cash and cash equivalents 36.9 202.6
Accounts receivable 25.8 58.9
Prepaid pension asset 100.9 95.0
Property, plant and equipment, net 44.6 40.2
Other assets 138.7 159.0
----------------- -----------------
Total assets $1,560.4 $1,591.9
================= =================
Liabilities and Stockholders'
Equity
Debt $627.1 $554.4
Accounts payable, accrued
liabilities 248.2 214.4
Deferred income taxes 212.0 315.9
----------------- -----------------
Total liabilities 1,087.3 1,084.7
Minority interest 10.5 18.2
Total stockholders' equity 462.6 489.0
----------------- -----------------
Total liabilities and stockholders'
equity $1,560.4 $1,591.9
================= =================
Debt Schedule
December 31, 2006 December 31, 2005
------------------ ------------------
Revolving debt facility $60.0 $--
Senior notes 307.0 407.0
Bridge loan 100.0 --
Acquisition and other debt 4.0 14.7
Other collateralized/specific
asset related debt 156.1 132.7
------------------ ------------------
Total debt $627.1 $554.4
================== ==================
Consolidated Comparisons
Quarter Ended December 31, Year Ended December 31,
-------------------------- -----------------------
2006 2005 2006 2005
------------- ------------ ----------- -----------
Revenues:
Real estate sales $186.2 $231.4 $638.2 $824.8
Rental revenue 10.5 8.7 41.0 34.6
Timber sales 6.4 6.2 29.9 28.0
Other revenues 7.6 9.8 39.1 44.7
------------- ------------ ----------- -----------
Total revenues 210.7 256.1 748.2 932.1
------------- ------------ ----------- -----------
Expenses:
Cost of real
estate sales 116.6 145.9 407.1 526.1
Cost of rental
revenue 4.2 3.7 16.9 13.9
Cost of timber
sales 4.4 4.9 21.9 20.0
Cost of other
revenues 8.4 10.0 41.7 39.8
Other operating
expenses 17.7 17.4 77.3 69.4
Corporate expense,
net 10.7 11.7 51.3 48.0
Impairment loss 1.5 -- 1.5 --
Restructuring
charges 0.3 -- 13.4 --
Depreciation and
amortization 10.1 9.2 38.9 35.9
------------- ------------ ----------- -----------
Total expenses 173.9 202.8 670.0 753.1
------------- ------------ ----------- -----------
Operating
profit 36.8 53.3 78.2 179.0
Other income
(expense) (4.7) (1.4) (13.5) (6.4)
------------- ------------ ----------- -----------
Pretax income from
continuing
operations 32.1 51.9 64.7 172.6
Income tax expense (10.8) (16.5) (26.1) (64.2)
Minority interest
expense (0.5) (4.4) (6.1) (7.8)
Equity in income of
unconsolidated
affiliates 2.0 2.4 9.3 13.0
Discontinued
operations, net of
tax 1.0 3.8 10.7 13.0
------------- ------------ ----------- -----------
Net income $23.8 $37.2 $52.5 $126.6
============= ============ =========== ===========
Net income per
diluted share $0.32 $0.49 $0.71 $1.66
============= ============ =========== ===========
Weighted average
diluted shares
outstanding 74,274,077 75,537,965 74,419,159 76,208,936
============= ============ =========== ===========
Revenues by Segment
Quarter Ended December 31, Year Ended December 31,
-------------------------- -----------------------
2006 2005 2006 2005
------------- ------------ ----------- -----------
Residential Real
Estate:
Real estate sales $126.7 $195.8 $499.6 $693.2
Rental revenue 0.3 0.3 1.7 1.6
Other revenues 7.3 9.2 38.3 43.6
------------- ------------ ----------- -----------
Total Residential
Real Estate 134.3 205.3 539.6 738.4
------------- ------------ ----------- -----------
Commercial Real
Estate:
Real estate sales 28.0 10.9 48.5 62.7
Rental revenue 10.2 8.4 39.3 33.1
Other revenues 0.2 0.6 0.9 1.2
------------- ------------ ----------- -----------
Total Commercial
Real Estate 38.4 19.9 88.7 97.0
------------- ------------ ----------- -----------
Rural Land Sales:
Real estate sales 31.6 24.7 90.0 68.8
------------- ------------ ----------- -----------
Total Rural Land
Sales 31.6 24.7 90.0 68.8
------------- ------------ ----------- -----------
Forestry Sales 6.4 6.2 29.9 27.9
------------- ------------ ----------- -----------
Total revenues $210.7 $256.1 $748.2 $932.1
============= ============ =========== ===========
Quarterly Segment Pretax Income
From Continuing Operations (1)
12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31 12/31
2006(2) 2006(2) 2006 2006 2005 2005 2005 2005 2004
----------------------------------------------------------
Residential
Real Estate $8.5 $(4.4)$20.4 $12.1 $42.7 $30.5 $56.8 $25.4 $26.9
Commercial
Real Estate 13.3 7.7 0.7 -- 4.7 14.1 2.3 1.1 16.9
Rural Land
Sales 26.8 12.2 22.1 11.4 19.1 11.7 10.1 9.7 14.1
Forestry 0.1 1.4 0.9 2.0 0.4 0.6 1.6 2.0 2.1
Corporate
and other (16.6) (16.4)(17.3)(20.3)(15.0)(16.1)(15.3)(13.8)(17.0)
----------------------------------------------------------
Pretax
income from
continuing
operations $32.1 $0.5 $26.8 $5.2 $51.9 $40.8 $55.5 $24.4 $43.0
==========================================================
(1) The historical results of operations of RiverCamps on Crooked
Creek have been reclassified from the Rural Land Sales segment to the
residential real estate segment to conform to the current period's
presentation.
(2) Includes restructuring charges. See Restructuring Charges Pretax
by Segment table below.
Restructuring Charges Pretax by Segment
Year Ended December 31, 2006
Rural Land
Residential Commercial Sales Other Total
----------- ---------- ---------- -------- --------
Write-off of
capitalized
homebuilding costs $9.3 $-- $-- $-- $9.3
One-time
termination
benefits to
employees 3.0 0.2 0.2 0.7 4.1
----------- ---------- ---------- -------- --------
Total restructuring
charges, pretax $12.3 $0.2 $0.2 $0.7 $13.4
=========== ========== ========== ======== ========
Discontinued Operations, Net of Tax
Quarter Ended Dec. 31, Year Ended Dec. 31,
---------------------- ---------------------
2006 2005 2006 2005
----------- ---------- ---------- ----------
Income (loss) from
Advantis operations, net
of tax $-- $0.3 $-- $(0.7)
Income from office
buildings, net of tax -- 0.2 0.4 0.3
Gains on sales of office
buildings, net of tax 1.0 3.3 10.3 19.2
Loss on sale of Advantis,
net of tax -- -- -- (5.9)
----------- ---------- ---------- ----------
Net income from
discontinued operations $1.0 $3.8 $10.7 $12.9
=========== ========== ========== ==========
Other Income (Expense)
Quarter Ended Dec. 31, Year Ended Dec. 31,
---------------------- ---------------------
2006 2005 2006 2005
----------- ---------- ---------- ----------
Dividend and interest
income $1.3 $2.2 $5.1 $3.5
Interest expense (6.9) (4.6) (20.5) (13.9)
Other 0.9 1.0 1.9 4.0
----------- ---------- ---------- ----------
Total $(4.7) $(1.4) $(13.5) $(6.4)
=========== ========== ========== ==========
Equity in Income of Unconsolidated Affiliates
Quarter Ended Dec. 31, Year Ended Dec. 31,
---------------------- ---------------------
2006 2005 2006 2005
----------- ---------- ---------- ----------
Residential Real Estate $2.0 $2.4 $9.3 $10.6
Commercial Real Estate -- -- -- 2.4
----------- ---------- ---------- ----------
Total $2.0 $2.4 $9.3 $13.0
=========== ========== ========== ==========
Reported results are preliminary and not final until the filing of
our Form 10-K with the SEC and, therefore, remain subject to
adjustment.
Conference Call Information
JOE will host an interactive conference call to review the
company's results for the quarter ended December 31, 2006, and to
discuss our outlook for 2007 on Tuesday, February 6, 2007, at 10:30
a.m., Eastern Standard Time.
To participate in the call, please phone 866-409-1555 (for
domestic calls from the United States) or 913-312-1235 (for
international calls) approximately ten minutes before the scheduled
start time. You will be asked for a Confirmation Code which is:
7749257. Approximately three hours following the call, you may access
a replay of the call by phoning 888-203-1112 (domestic) or
719-457-0820 (international) using access code 7749257. The replay
will be available for one week.
JOE will also web cast the conference call live over the internet
in a listen-only format. Listeners can participate by visiting the
company's web site at http://www.joe.com. Access will be available 15
minutes prior to the scheduled start time. A replay of the conference
call will be posted to the JOE web site approximately three hours
following the call. The replay of the call will be available for one
week.
About JOE
The St. Joe Company (NYSE:JOE), a publicly held company based in
Jacksonville, is one of Florida's largest real estate development
companies. We are primarily engaged in real estate development and
sales, with significant interests in timber. Our mission is to create
places that inspire people and make JOE's Florida an even better place
to live, work and play. We're no ordinary JOE.
More information about JOE can be found at our web site at
www.joe.com.
Forward-Looking Statements
We have made forward-looking statements in this earnings release,
particularly in the Outlook Section, pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Any statements in this release that are not historical facts are
forward-looking statements. You can find many of these forward-looking
statements by looking for words such as "intend", "anticipate",
"believe", "estimate", "expect", "plan", "should", "forecast" or
similar expressions. In particular, forward-looking statements
include, among others, statements about the following:
-- future operating performance, revenues, earnings, cash flows,
and short and long-term revenue and earnings growth rates;
-- future residential and commercial entitlements;
-- expected development timetables and projected timing for sales
or closings of homes or home sites in a community;
-- development approvals and the ability to obtain such
approvals, including possible legal challenges;
-- the anticipated price ranges of developments;
-- the number of units or commercial square footage that can be
supported upon full build out of a development;
-- the number, price and timing of anticipated land or building
sales or acquisitions;
-- estimated land holdings for a particular use within a specific
time frame;
-- absorption rates and expected gains on land and home site
sales;
-- the levels of resale inventory in our developments and the
regions in which they are located;
-- the development of relationships with strategic partners,
including homebuilders;
-- the pace at which we release new products for sale;
-- comparisons to historical projects;
-- the amount of dividends we pay; and
-- the number of shares of company stock which may be purchased
under the company's existing or future share-repurchase
program.
Forward-looking statements are not guarantees of future
performance. You are cautioned not to place undue reliance on any of
these forward-looking statements. These statements are made as of the
date hereof based on our current expectations, and we undertake no
obligation to update the information contained in this release. New
information, future events or risks may cause the forward-looking
events we discuss in this earnings release not to occur.
Forward-looking statements are subject to numerous assumptions,
risks and uncertainties. Factors that could cause actual results to
differ materially from those contemplated by a forward-looking
statement include the risk factors described in our annual report on
Form 10-K for the year ended December 31, 2005 as well as, among
others, the following:
-- economic conditions, particularly in Northwest Florida,
Florida as a whole and key areas of the southeastern United
States that serve as feeder markets to our Northwest Florida
operations;
-- changes in the demographics affecting projected population
growth in Florida, including the demographic migration of Baby
Boomers;
-- changes in perceptions or conditions in the national real
estate market or the real estate markets in the states and
regions in which we operate;
-- the termination of sales contracts or letters of intent due
to, among other factors, the failure of one or more closing
conditions or market changes;
-- whether our developments receive all land-use entitlements or
other permits necessary for development and/or full build-out
or are subject to legal challenge;
-- local conditions such as the supply of homes and home sites
and residential or resort properties or a change in the demand
for real estate in an area;
-- timing and costs associated with property developments and
rentals;
-- the pace of commercial development in Northwest Florida;
-- competition from other real estate developers;
-- changes in pricing of our products and changes in the related
profit margins;
-- changes in operating costs, including real estate taxes and
the cost of construction materials;
-- changes in the amount or timing of federal and state income
tax liabilities resulting from either a change in our
application of tax laws, an adverse determination by a taxing
authority or court, or legislative changes to existing laws;
-- changes in interest rates and the performance of the financial
markets;
-- changes in market rental rates for our commercial and resort
properties;
-- changes in the prices or availability of wood products;
-- the pace of development of public infrastructure, particularly
in Northwest Florida, including a proposed new airport in Bay
County, which is dependent on various regulatory approvals and
permits and the availability of adequate funding;
-- potential liability under environmental laws or other laws or
regulations;
-- changes in laws, regulations or the regulatory environment
affecting the development of real estate;
-- fluctuations in the size and number of transactions from
period to period;
-- natural disasters, including hurricanes and other severe
weather conditions, and the impact on current and future
demand for our products in Florida;
-- the prices and availability of labor and building materials;
-- changes in insurance rates and deductibles for property in
Florida, particularly in coastal areas;
-- changes in gasoline prices; and
-- acts of war, terrorism or other geopolitical events.
The foregoing list is not exhaustive and should be read in
conjunction with other cautionary statements contained in our periodic
and other filings with the Securities and Exchange Commission.
(C) 2007, The St. Joe Company. "St. Joe," "JOE," "Artisan Park,"
"Paseos," "Pier Park," "RiverCamps," "RiverTown," "SouthWood,"
"SummerCamp," "Victoria Park," "WaterColor," "WaterSound," "WhiteFence
Farms," "WindMark," and the "Taking Flight" design are service marks
of The St. Joe Company.
CONTACT: The St. Joe Company, Jacksonville
JOE Media Contact: Jerry M. Ray, 904-301-4430
jray@joe.com
or
JOE Investor Contact: Mike Daly, 904-301-4302
mdaly@joe.com