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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 8, 2006
--------------------------------
The St. Joe Company
- --------------------------------------------------------------------------------
(Exact Name of Registrant as Specified in Its Charter)
Florida 1-10466 59-0432511
- ----------------------------- -------------------------- --------------------
(State or Other Jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
245 Riverside Avenue, Suite 500
Jacksonville, FL 32202
- ------------------------------------------ ------------
(Address of Principal Executive Offices) (Zip Code)
(904) 301-4200
------------------------------------------------------
(Registrant's Telephone Number, Including Area Code)
Not Applicable
- --------------------------------------------------------------------------------
(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 8, 2006, The St. Joe Company (the "Company") issued a press release
announcing the Company's financial results for the quarter and year ended
December 31, 2005. 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 8, 2006
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 8, 2006 By: /s/ Michael N. Regan
-----------------------
Michael N. Regan
Senior Vice President -
Finance and Planning
Exhibit 99.1
The St. Joe Company Reports Full Year 2005 Net Income of $1.66 Per Share,
Including $0.08 Per Share Charge for Sale of Advantis, a Per-Share Increase of
42 Percent
JACKSONVILLE, Fla.--(BUSINESS WIRE)--Feb. 8, 2006--The St. Joe
Company (NYSE:JOE):
Fourth Quarter Net Income was $37.2 Million, or $0.49 Per Share,
A Per-Share Increase of 32 Percent
JOE Sets Full-Year 2006 Guidance at $1.70 to $2.15 Per Share
JOE Residential Land-Use Entitlements in Hand or in Process Increase
21 Percent from the Third Quarter to Approximately 41,700 Units
The St. Joe Company (NYSE:JOE) today announced that its Net Income
for the full year 2005 was $126.6 million, or $1.66 per share,
compared with $90.1 million, or $1.17 per share, for the full year
2004, a per-share increase of 42 percent. Results for the year include
an after-tax charge of $5.9 million, or $0.08 per share, resulting
from the sale of JOE's subsidiary, Advantis Real Estate Services
Company. All per share references in this release are presented on a
fully diluted basis.
Fourth quarter 2005 Net Income was $37.2 million, or $0.49 per
share, compared with $28.1 million, or $0.37 per share, for the fourth
quarter of 2004, a per-share increase of 32 percent.
JOE Pleased With Progress, Results in 2005
"We are pleased with our 2005 performance, especially considering
the challenges we faced in the third and fourth quarters," said JOE
chairman and CEO Peter S. Rummell. "JOE's increasing product
diversity, expanding pipeline of land-use entitlements, low-basis land
holdings and strong balance sheet are allowing us to respond in an
ever-changing marketplace. Our entitlements strategy over the past
several years has provided JOE the ability to develop a growing menu
of real estate products that is expanding our reach to broader market
segments. Product diversity is becoming one of JOE's primary
competitive advantages."
Resort Residential Sales Slowed and Primary Residential Stable in
Second Half of 2005
"Traffic and sales activity did slow in the third and fourth
quarters, particularly in our resort residential projects," said
Rummell. "We think an active hurricane season certainly played a
role."
"Traffic and activity at our resort towns began to pick up
somewhat over the holidays, and we are looking forward to the spring
market with cautious optimism," said Rummell. "However, resort sales
have remained slow thus far in the first quarter, traditionally the
off-season for Northwest Florida. We do not expect a return to the
fevered market of the past few years, but a return to something closer
to the historical norm. If anything, some of the speculators may have
exited, and the market ahead may be less heated, but more
sustainable."
"Primary residential sales were stable in our more mature markets
in Jacksonville, Orlando, Tallahassee and the Mid-Atlantic," said
Rummell. "In some projects, such as Victoria Park, we have seen a
shift in demand to higher price points, and we are working to
reconfigure our development pipeline to accommodate the changing
market. In other markets, such as Jacksonville, we are nearing the
transition from the completion of a successful project, St. Johns Golf
& Country Club, to the introduction of a very exciting major project,
RiverTown."
"We enter 2006 in a strong position, and we are very excited about
the next generation of projects that we have coming on-line later this
year, including WaterSound, WindMark Beach, RiverTown and Perico
Island," said Rummell. "We believe these projects will create
significant shareholder value."
JOE Remains Focused on Long-Term Value Creation
"I am particularly proud of our management team's continued focus
on long-term value creation," said Rummell. "We have said for many
years that JOE's unique advantages give us the ability to focus on
long-term value creation, rather than short-term market fluctuations.
We have remained disciplined in a slowing market - and I believe our
discipline will benefit those investing in JOE for the long-term. We
see a market returning to a more sustainable growth pattern going
forward."
"Many developers might feel pressure to do any deal they could in
a slowing market," said Rummell. "But because of JOE's unique
advantages - including essentially no holding costs for our low-basis
land - we don't succumb to such pressure. Unlike many developers, we
are not a prisoner of land priced at retail and often financed with
debt. We have the flexibility and discipline to remain focused on
long-term value creation."
"We are becoming much more diversified in terms of land use, price
points, customer base and location within Florida," said Rummell. "We
have leveraged our ability to gain land use entitlements to develop
products for the resort, primary residential, second home,
multi-family, retail, commercial and industrial markets. We now have
significant projects and products in many different Florida markets,
including Northwest Florida, Tallahassee, Jacksonville, Orlando and
Southwest Florida. We have also begun to diversify our customer base,
from individual homeowners to national homebuilders; from local
Florida buyers to transitioning Baby Boomers; from local commercial
developers to regional and national developers."
"With a strong demand for primary homes in Northwest Florida and
in other parts of the state, we see an opportunity to grow production
of primary residential home sites," said Rummell. "National
homebuilders seek well-placed land with low entitlements risk. In
2005, we entered into our first contracts in Northwest Florida with
D.R. Horton and David Weekley Homes. We see growing interest from
other national homebuilders. Because of our low-basis land holdings
and expertise in the entitlements process, JOE is well positioned to
create significant value as we assume the entitlements risk the
national homebuilders wish to avoid."
"Working with national homebuilders in Northwest Florida has many
benefits for JOE," said Rummell. "First, it will help us bring the
region to a critical mass, in terms of the number of rooftops. Second,
our commercial strategy is becoming increasingly important. The
arrival of the national homebuilders should help accelerate our
commercial land sales because more rooftops require more services. At
the same time, the additional activity brings subcontractors to the
region to help JOE deliver its products and projects."
Residential and Commercial Entitlements Show Significant Growth
"The complex and time-consuming process of gaining entitlements in
Florida is a unique strength for JOE and a barrier to entry for many
other developers and homebuilders," said Kevin M. Twomey, JOE's
president and COO. "We have built a core competency and advanced our
planning pace, methodology and sophistication in the most difficult
aspects of the entitlements process: large-scale, long-term
entitlements that sometimes require years for approval. But the yield
from this strategy is better planning and greater value, more
diversity and increased flexibility over the more traditional
piece-meal approach."
During the fourth quarter, JOE's residential land-use entitlement
pipeline increased significantly to approximately 41,700 units,
covering a broad spectrum of potential products, markets and price
points. At the end of the third quarter, JOE reported approximately
34,500 residential units in hand or in process and at December 31,
2004, approximately 29,500 units.
In addition, at the end of the fourth quarter, JOE had
approximately 14.6 million square feet of commercial land-use
entitlements in hand or in process, plus an additional 600 acres zoned
for commercial uses. In many cases the JOE commercial entitlement
pipeline includes entitlements measured by building size with the
underlying acreage left to be determined. In others, specific acres
are entitled, but with the square footage left to be determined.
"This growing inventory of commercial entitlements is another
reflection of the sophistication of JOE's mix-used entitlements and
planning strategy. We are well-positioned to capture retail, office
and industrial opportunities that are created by the increasing
residential activity in the region. Along with the residential
entitlements, this commercial pipeline has been building for several
years and represents another storehouse of value."
"JOE's strategic planning process is centered on large scale and
long-term entitlements," said Twomey. "Securing land-use entitlements
using Florida's large scale entitlements process, called Development
of Regional Impact (DRIs) or Detailed Specific Area Plans (DSAPs), are
difficult processes that many competitors can't or are reluctant to
pursue. But the results are large projects with a decade or more of
value creation potential and more flexible conversion from one use to
another. Fortunately this same approach also benefits the quality of
product, the experience of the future residents and the quality of
life in the region."
"We believe our strategic planning approach produces town, resort,
rural and commercial entitlements that are better planned and products
that command higher demand and better pricing," said Twomey.
JOE as a Proxy for Florida
"In a certain respect, when you invest in JOE, you invest in the
future of Florida," said Rummell. "Considering the population growth
projected for Florida over the next 25 years, we believe our prospects
are very strong."
"Florida's growth rate has ranked among the top seven states in
every decade since the 1920's," said Rummell. "In most decades it has
ranked in the top four. In the first four years of this decade,
Florida's population increased by more than 1.7 million. The Census
Bureau predicts Florida's population will increase to nearly 28.7
million by 2030 - an increase of nearly 12.7 million people from
2000."
"Florida's growth rate will obviously have a tremendous impact on
the state's real estate markets," said Rummell. "But this impact is
likely to be fueled by the migration of Baby Boomers to vacation,
second and retirement homes in Florida. If the state's population
grows at the rate expected, millions of new residential units will be
required to house the new residents. Many of these Baby Boomers will
come to Florida as 'splitters,' part-time residents who split their
time between two or more primary homes. Overall, this massive
demographic shift, triggered by Baby Boomer migration, is just
beginning. It is expected to continue for 20 or more years."
"So from our perspective, JOE's fundamental value creation
proposition remains as sound as ever," said Rummell. "We continue to
believe the best is yet to come. As JOE continues to mature as a
company, we are very pleased with where we are."
2006 OUTLOOK
"Our outlook for 2006 reflects both increased opportunity and
greater near-term uncertainty," said JOE's CFO Anthony M. Corriggio.
"We anticipate that the year's results will reflect positive
contributions from new residential products and projects as well as
continued solid performance from JOE's primary home communities.
However, the year's results are also expected to reflect the effects
of the recent slowdown in sales of existing resort residential
product. We continue to expect solid contributions from the St. Joe
Land Company and from St. Joe Commercial."
"We anticipate that this year's results will further illustrate
the increasing breadth of our real estate product offerings," said
Corriggio. "Over the past several years, JOE has made solid progress
securing a wide range of residential and commercial entitlements for
our low-basis land holdings. We expect our 2006 results to begin to
reflect this progress, with new product and sale opportunities coming
to fruition in each of JOE's business segments."
Towns & Resorts
"JOE's Towns & Resorts segment is expected to again drive the
majority of JOE's earnings as sales continue at our existing
developments, new projects begin sales, and national homebuilders
become increasingly active customers," said Corriggio.
"We expect primary housing demand to maintain its relative
strength across the range of product types and geography of our
operations," said Corriggio. "However, the possible residual effects
of 2005's record hurricane season and a subsequent increase in resale
supply have added some uncertainty to the timing of the rebound of
resort residential sales. We continue to view these factors as
temporary, but meaningful influences on near-term earnings from this
product line. As we are currently in Northwest Florida's off-season,
we anticipate gaining greater visibility for resort sales as the
region enters its primary selling season in the second and third
quarters."
"During the second half of the year, we expect that major new
projects will begin to add to earnings, including WaterSound and
WindMark Beach in Northwest Florida and Perico Island near Sarasota,"
said Corriggio. "Sales are also expected to begin later in 2006 at
RiverTown, the 4,500-unit master planned community on the St. Johns
River near Jacksonville. Only a small number of closings are currently
expected at RiverTown in the fourth quarter of 2006."
"Towns & Resorts results will also likely show increased sales to
national and regional homebuilders," said Corriggio. "We have active
discussions underway with several major homebuilders, and we are
exploring how they might participate at various projects in Northwest
Florida as well as other locations within the state. We expect these
efforts will result in sales and income this year, but because of the
many variables involved, it is difficult to predict their amount and
timing."
St. Joe Commercial
"We expect JOE's commercial segment to continue building momentum
this year," said Corriggio. "JOE Commercial delivers value with its
portfolio of investment buildings, commerce and light industrial
parks, sales to apartment and condominium developers, and sales to
retail developers. Looking ahead, JOE Commercial has a significant
number of scheduled and potential sales, some of which are quite
large. We are very excited about the potential, but again, great
variability exists with respect to timing."
St. Joe Land Company
"We expect St. Joe Land Company to continue its solid performance
in 2006," said Corriggio. "We are refining our segmentation strategy
for our rural land products, and our new products, WhiteFence Farms
and Florida Ranches, will be coming to market mid- to late-year. We
expect the Land Company's creative approach to rural land sales should
provide another level of diversification in our real estate product
portfolio."
Projections for Full-Year 2006
"Considering the opportunity and uncertainty in the year ahead, we
are projecting earnings for 2006 of $1.70 to $2.15 per share," said
Corriggio. "This range reflects the `lumpy' nature of earnings and
cash flows inherent to the land development business and the
variability that exists regarding the timing of several transactions.
We anticipate a slower start in 2006 with the majority of earnings
occurring later in the year."
ENTITLEMENTS
"It is important to remember that JOE is first and foremost a
large-scale developer and land owner," said Corriggio. "Our
homebuilding operations and sales to third-party homebuilders are two
important sources of revenue and customers. However, JOE also
continues to plan and deliver entitlements for an increasingly diverse
set of land uses including retail, office, industrial, apartment,
marina and hotel uses. Such entitlements are indicators of future
value for JOE. Along with infrastructure improvements, the primary
driver of incremental value for our land (and ultimately value for our
shareholders) is securing these entitlements for higher and better
uses of our land. This value is crystallized through sales and
earnings, but the increase in value is created prior to its
monetization."
On December 31st, JOE owned approximately 838,000 acres,
concentrated primarily in Northwest Florida. These holdings included
approximately 338,000 acres within 10 miles of the coast of the Gulf
of Mexico and approximately 500,000 acres outside the 10-mile coastal
perimeter, including approximately 48,000 acres in southwest Georgia.
At the end of 2005, JOE had land use entitlements in hand or in
process for approximately 41,700 residential units and 14.6 million
square feet of commercial space, with an additional 600 acres zoned
for commercial uses.
A number of projects or portions of projects are moving through
the entitlements process specifically targeted for national
homebuilder customers. Each also creates commercial opportunities.
Table 1 summarizes JOE's Florida residential and mixed-use
projects with land-use entitlements as of December 31, 2005. 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, 2005
Residential
Units Sold
Project Project Since
Project County Acres Units(2) Inception
------- ------ ------- -------- -----------
In Development: (3)
- ------------------------
Artisan Park (4) Osceola 175 616 288
Bridgeport Gulf 15 37 31
Cutter Ridge Franklin 10 25 --
Glades Bay 26 360 240
Hawks Landing Bay 88 168 --
Landings at Wetappo Gulf 113 24 7
Palmetto Trace Bay 141 481 379
Paseos (4) Palm Beach 175 325 256
RiverCamps on Crooked
Creek Bay 1,491 408 175
Rivercrest (4) Hillsborough 413 1,382 1,032
RiverSide at Chipola Calhoun 120 10 2
SouthWood Leon 3,370 4,770 1,463
St. Johns Golf &
Country Club St. Johns 820 799 724
The Hammocks Bay 133 457 414
SummerCamp Franklin 762 499 64
Victoria Park Volusia 1,859 4,200 867
WaterColor Walton 499 1,140 860
WaterSound Beach Walton 256 511 406
WaterSound West Beach Walton 62 199 10
WaterSound Walton 1,402 1,330 --
WindMark Beach Gulf 2,020 1,662 104
------- -------- -----------
Subtotal 13,950 19,403 7,322
------- -------- -----------
In Pre-Development: (3)
- ------------------------
Bayview Estates Gulf 30 120 --
Boggy Creek Bay 630 400 --
Camp Creek Golf
Cottages Walton 10 102 --
College Station Bay 567 800 --
East Lake Creek Bay 81 533 --
East Lake Powell Bay 181 360 --
Hills Road Bay 30 356 --
Howards Creek Gulf 8 33 --
Laguna Beach East Bay 20 320 --
Long Avenue Gulf 10 30 --
ParkPlace Bay 118 257 --
ParkSide Bay 48 480 --
Perico Island (5) Manatee 352 686 --
Pier Park North Bay 57 460 --
Pier Park Timeshare Bay 13 125 --
Port St. Joe Millsite
Area Gulf 170 598 --
Powell Adams Bay 32 1,425 --
RiverCamps on Sandy
Creek Bay 6,500 624 --
RiverTown St. Johns 4,170 4,500 --
Sabal Island Gulf 56 19 --
Timber Island (6) Franklin 49 458 --
Topsail Walton 115 627 --
Wavecrest Bay 7 95 --
WestBay Corners Bay 100 524 --
WestBay DSAP Future
Phases Bay 15,089 5,628 --
WestBay Landing Bay 950 214 --
WhiteFence Farms, Red
Hills Leon 373 50 --
------- -------- -----------
Subtotal 29,766 19,824 --
------- -------- -----------
Total 43,716 39,227 7,322
======= ======== ===========
Residential Total Remaining
Units Under Residential Commercial
Contract as Units Entitlements
Project of 12/31/05 Remaining (Sq. Ft.)
------- ------------ ---------- -------------
In Development: (3)
- ------------------------
Artisan Park (4) 210 118 --
Bridgeport 5 1 --
Cutter Ridge -- 25 --
Glades 120 -- --
Hawks Landing 83 85 --
Landings at Wetappo -- 17 --
Palmetto Trace 38 64 --
Paseos (4) 67 2 --
RiverCamps on Crooked
Creek 2 231 --
Rivercrest (4) 347 3 --
RiverSide at Chipola -- 8 --
SouthWood 151 3,156 5,449,660
St. Johns Golf & Country
Club 22 53 --
The Hammocks 40 3 --
SummerCamp 1 434 25,000
Victoria Park 138 3,195 854,254
WaterColor 3 277 47,600
WaterSound Beach 1 104 29,000
WaterSound West Beach 1 188 --
WaterSound -- 1,330 457,380
WindMark Beach -- 1,558 75,000
------------ ---------- -------------
Subtotal 1,229 10,852 6,937,894
------------ ---------- -------------
In Pre-Development: (3)
- ------------------------
Bayview Estates -- 120 --
Boggy Creek -- 400 --
Camp Creek Golf Cottages -- 102 --
College Station -- 800 --
East Lake Creek -- 533 --
East Lake Powell -- 360 --
Hills Road -- 356 --
Howards Creek -- 33 --
Laguna Beach East -- 320 --
Long Avenue -- 30 --
ParkPlace -- 257 --
ParkSide -- 480 --
Perico Island (5) -- 686 9,000
Pier Park North -- 460 190,000
Pier Park Timeshare -- 125 --
Port St. Joe Millsite
Area -- 598 431,663
Powell Adams -- 1,425 --
RiverCamps on Sandy
Creek -- 624 --
RiverTown -- 4,500 500,000
Sabal Island -- 19 --
Timber Island (6) -- 458 14,500
Topsail -- 627 300,000
Wavecrest -- 95 --
WestBay Corners -- 524 50,000
WestBay DSAP Future
Phases -- 5,628 4,330,000
WestBay Landing -- 214 --
WhiteFence Farms, Red
Hills -- 50 --
------------ ---------- -------------
Subtotal -- 19,824 5,825,163
------------ ---------- -------------
Total 1,229(7) 30,676(7) 12,763,057(8)
============ ========== =============
(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) 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.
(3) 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.
(4) Artisan Park is 74 percent owned by JOE. Paseos and Rivercrest are
each 50 percent owned by JOE.
(5) JOE has an option to purchase the land for this project.
(6) Timber Island entitlements include 58 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.
(7) Excludes our Mid-Atlantic region that includes activity in North
Carolina and South Carolina where we are primarily engaged in
homebuilding, and not in obtaining entitlements. As of December
31, 2005, the Mid-Atlantic region had 217 housing units under
contract.
(8) 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.
Table 2 summarizes JOE's Florida residential and mixed-use
projects in the entitlements process as of December 31, 2005. Also
detailed in the table are commercial entitlements, in terms of square
feet, that are to be entitled as part of JOE's mixed-use projects.
These commercial entitlements include retail, office and industrial
uses.
Table 2
Proposed JOE Residential and Mixed-Use Projects
In the Land-Use Entitlement Process in Florida (1)
December 31, 2005
Estimated
Estimated Commercial
Project Project Entitlements
Project County Acres Units (2) (Sq. Ft.) (2)
------- ------ ------- --------- -------------
BonfireBeach Bay 550 750 56,000
Breakfast Point Bay 1,419 3,100 635,000
Bridgeport II Gulf 6 95 --
Carrabelle East Franklin 200 600 --
DeerPoint Cedar Grove Bay 617 750 --
Songbird Wakulla 9 90 --
SouthSide Leon 1,625 2,800 1,150,000
St. James Island
McIntyre Franklin 1,704 340 --
St. James Island
RiverCamps Franklin 2,500 500 --
St. James Island
Granite Point Franklin 1,000 2,000 --
Wetappo Creek Gulf 57 45 --
------- --------- -------------
Total 9,687 11,070 1,841,000
======= ========= =============
(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, like 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 timing, scale and
viability. There can be no assurance that these entitlements will
ultimately be received.
(2) 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 summarizes JOE's Florida commercial projects with land-use
entitlements as of December 31, 2005. This table represents additional
commercial entitlements not included in Tables 1 and 2 above.
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, 2005
Acres Under
Acres Sold Contract Total
Project Since As of Acres
Project County Acres Inception 12/31/05 Remaining
------- ------ ------- ----------- ----------- ---------
Airport Commerce Leon 40 -- -- 40
Alf Coleman Retail Bay 24 -- 14 10
Beach Commerce Bay 161 138 2 21
Beach Commerce II Bay 115 -- -- 115
Beckrich Office
Park Bay 12 8 -- 4
Beckrich Retail Bay 45 19 -- 26
Cedar Grove
Commerce Bay 72 -- -- 72
Glades Retail Bay 14 -- -- 14
Gulf Boulevard Bay 76 22 -- 54
Hammock Creek
Commerce Gadsden 114 27 -- 87
Laguna Beach West Bay 57 -- -- 57
Mill Creek Commerce Bay 32 -- -- 32
Nautilus Court Bay 11 4 -- 7
Port St. Joe
Commerce II Gulf 40 9 -- 31
Powell Hills Retail Bay 44 -- 44 --
South Walton
Commerce Walton 39 14 -- 25
------- ----------- ----------- ---------
Total 896 241 60 595
======= =========== =========== =========
(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.
WESTBAY
Panama City - Bay County International Airport Relocation
In January 2006, the Panama City - Bay County Airport and
Industrial District (Airport Authority) indicated that the Airport
Authority and the Federal Aviation Administration (FAA) will be
conducting additional analysis over the next several months on the
redevelopment of the existing airport site for non-airport uses. The
Airport Authority stated this additional work will result in a delay
in the release of the Final Environmental Impact Statement (EIS), now
expected in May of 2006, and the subsequent FAA Record of Decision,
now expected in September of 2006.
The Airport Authority also said that no legal challenges were made
to the permits from the State of Florida necessary for the relocation
of the Airport. All challenge periods for the state permits for the
airport relocation have now expired.
A number of additional steps remain before construction of the
airport can begin, including approval by the U.S. Army Corps of
Engineers and other federal, state and local regulatory agencies as
well as funding from federal, state and Airport Authority sources.
DIVIDENDS AND STOCK REPURCHASE PROGRAM
A quarterly cash dividend of $0.16 per share of common stock was
paid on December 30th to shareholders of record at the close of
business on December 15, 2005.
On December 31st, 74,928,290 JOE shares were outstanding. The
number of weighted-average diluted shares in the fourth quarter of
2005 was 75,537,965.
During the fourth quarter of 2005, JOE expended an aggregate of
$68.5 million for dividends and the acquisition of its shares. JOE
acquired 867,768 of its shares at a cost of $56.6 million, an average
price of $65.24 per share. On December 6th, JOE's Board of Directors
approved an additional $150 million stock repurchase authorization. At
December 31st, approximately $153.5 million remained of the company's
stock repurchase authorizations including $3.5 million remaining from
a prior authorization and $150 million from the most recent
authorization.
Table 4 summarizes the company's stock repurchase activity from
1998 through December 31, 2005.
Table 4
Stock Repurchase Activity
Through December 31, 2005
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
------ --------- ------------- --------- --------- -------
Total/
Weighted
Average 26,997,411 2,105,142 29,102,553 $871.6 $29.92
========== ============= ========== ========= =======
(1) Shares surrendered by company executives as payment for the strike
price and taxes due on exercised stock options or taxes due on the
vesting of restricted stock.
"We continue to view our dividend and repurchase program as an
important contributor to shareholder value," said Corriggio. "The
total amount of capital distributed to shareholders in 2005 via share
repurchases and dividends was approximately $170.0 million. For 2006
we are setting our dividend and repurchase program benchmark at $125
million to $175 million."
SEGMENT RESULTS
ST. JOE TOWNS & RESORTS
- -----------------------
Pretax income from continuing operations for St. Joe Towns &
Resorts, JOE's residential and resort development segment, was $37.5
million for the fourth quarter of 2005, compared with $24.7 million in
the fourth quarter last year. Pretax income from continuing operations
for the year 2005 was $137.1 million, compared to $99.9 million for
the year ended 2004. These results exclude income from unconsolidated
affiliates.
In the fourth quarter, St. Joe Towns & Resorts closed on the sales
of 624 units and generated revenues from housing and home sites of
$186.9 million, compared to 598 units and $161.5 million in the fourth
quarter of 2004. For the year 2005, St. Joe Towns & Resorts closed on
the sales of 2,198 units and generated revenues from housing and home
sites of $662.7 million, compared to 2,074 units and $571.8 million in
revenue in 2004.
JOE accepted contracts for 286 homes and 96 homes sites in the
fourth quarter of 2005, compared to 363 homes and 82 units in the
fourth quarter a year ago. JOE accepted contracts for 1,653 homes and
401 homes sites in 2005, compared to 1,883 homes and 338 units in
2004.
The majority of profit on multifamily closings occurring this
quarter was recognized in previous quarters due to the use of
percentage of completion accounting.
At the end of the year, a total of six completed homes and 60
resort home sites had been released for sale but remained in inventory
at WaterColor, WaterSound Beach, WaterSound West Beach and SummerCamp.
Tables 5 and 6 summarize sales activity for St. Joe Towns &
Resorts for the fourth quarter and full year of 2005 compared to the
same periods in 2004.
Table 5
St. Joe Towns & Resorts
Sales Activity
For the Three Months
Ended December 31,
($ in millions)
2005 2004
------------------------------- -------------------------------
Number Cost of Number Cost of
of Units Sales Gross of Units Sales Gross
Closed Revenue (1) Profit Closed Revenue (1) Profit
-------- ------- ------- ------ -------- ------- ------- ------
Home
Sites
(2) 107 $27.4 $8.8 $18.6 84 $15.8 $6.0 $9.8
Homes
(3) 517 159.5 125.3 34.2 514 145.7 115.4 30.3
-------- ------- ------- ------ -------- ------- ------- ------
Total 624 $186.9 $134.1 $52.8 598 $161.5 $121.4 $40.1
======== ======= ======= ====== ======== ======= ======= ======
For the Year Ended December 31,
($ in millions)
2005 2004
------------------------------- -------------------------------
Number Cost of Number Cost of
of Units Sales Gross of Units Sales Gross
Closed Revenue (1) Profit Closed Revenue (1) Profit
-------- ------- ------- ------ -------- ------- ------- ------
Home
Sites
(2) 402 $125.1 $32.3 $92.8 414 $109.8 $35.5 $74.3
Homes
(3) 1,796 537.6 440.3 97.3 1,660 462.0 382.9 79.1
-------- ------- ------- ------ -------- ------- ------- ------
Total 2,198 $662.7 $472.6 $190.1 2,074 $571.8 $418.4 $153.4
======== ======= ======= ====== ======== ======= ======= ======
(1) Cost of sales for home sites in the fourth quarter of 2005
consisted of $7.1 million in direct costs, $0.9 million in selling
costs and $0.8 million in indirect costs. Cost of sales for home
sites in the fourth quarter of 2004 consisted of $4.5 million in
direct costs, $0.7 million in selling costs and $0.8 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. Cost of sales
for homes in the fourth quarter of 2004 consisted of $98.5 million
in direct costs, $7.6 million in selling costs and $9.3 million in
indirect costs. Cost of sales for home sites in 2005 consisted of
$25.4 million in direct costs, $3.9 million in selling costs and
$3.0 million in indirect costs. Cost of sales for home sites in
2004 consisted of $26.6 million in direct costs, $5.2 million in
selling costs and $3.7 million in indirect costs. Cost of sales
for homes in 2005 consisted of $375.4 million in direct costs,
$27.8 million in selling costs and $37.1 million in indirect
costs. Cost of sales for homes in 2004 consisted of $323.4 million
in direct costs, $24.7 million in selling costs and $34.8 million
in indirect costs.
(2) Percentage of completion accounting is utilized at SummerCamp and
WaterSound West Beach. As a consequence, revenue recognition and
closings may occur in different periods.
(3) Homes include single-family, multifamily and Private Resident Club
(PRC) units. Multifamily and PRC revenue is recognized, if
preconditions are met, on a percentage-of-completion basis. As a
consequence, revenue recognition and closings may occur in
different periods. Paseos and Rivercrest, two joint ventures 50
percent owned by JOE, are not included. Sales are complete or
nearly complete at both of these communities.
Table 6
St. Joe Towns & Resorts
Units Placed Under Contract
For the Three Months
Ended December 31,
2005 2004 Percentage Change
------ ------ -----------------
Home Sites 96 82 17.1 %
Homes (1) 286 363 (21.2)
------ ------ -----------------
Total (2) 382 445 (14.2) %
====== ====== =================
For the Year Ended December 31,
2005 2004 Percentage Change
------ ------ -----------------
Home Sites 401 338 18.6 %
Homes (1) 1,653 1,883 (12.2)
------ ------ -----------------
Total (2) 2,054 2,221 (7.5) %
====== ====== =================
(1) Homes include single-family homes, multifamily and PRC units. Some
home sites are offered for sale with a home to be constructed by
JOE.
(2) Paseos and Rivercrest, two joint ventures, are not included.
Paseos and Rivercrest had 295 units placed under contract during
2005, compared to 911 units during 2004. Sales are complete or
nearly complete at both communities.
Table 7 summarizes backlog at December 31, 2005 and 2004.
Table 7
St. Joe Towns & Resorts
Backlog (1)
($ in millions)
December 31, 2005 December 31, 2004
----------------- -----------------
Units Revenues Units Revenues
------- -------- ------- --------
Home Sites 12 $2.2 18 $1.6
Homes (2) 810 278.7 953 337.6
------- -------- ------- --------
Total 822 $280.9 971 $339.2
======= ======== ======= ========
(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 $108.3
million for 414 units at the end of the fourth quarter of 2005,
compared to $183.0 million for 727 units at the end of the fourth
quarter of 2004.
(2) For multifamily and PRC units which are recognized on a percentage
of completion method, revenues in this table reflect 100% of the
revenue to be generated from each unit and will differ from
revenues recorded in the financial statements. As of December 31,
2005, 151 units are in the homes backlog with related revenues of
$64.8 million (as of that date, $41.3 million had been recognized
in the financial statements); as of December 31, 2004, 198 units
are in the homes backlog with related revenues of $121.8 million
(as of that date, $65.6 million had been recognized in the
financial statements).
Northwest Florida
WaterColor
During the fourth quarter, a contract for one home site in
WaterColor was closed at a price of $571,400. Contracts for five homes
were closed in the fourth quarter at an average price of $966,000. No
contracts were accepted during the fourth quarter.
Most of the units remaining to be sold at WaterColor are in the
town's fourth phase located on the east side of County Road 395 near
the WaterColor Crossings shopping center. Additional product lines
featuring smaller home sites are being readied for market in
WaterColor's phase four.
WaterSound Beach
Contracts for nine multifamily units in the first two buildings at
Compass Point in WaterSound Beach were closed in the fourth quarter at
an average price of $1.5 million.
Two additional buildings with 44 units at Compass Point are
scheduled to be released for sale later in 2006. Subject to meeting
pre-sale requirements, construction of 23 of those units is expected
to begin in the second quarter, while construction of the last 21
units is expected to start in late 2006.
In the fourth quarter, contracts for six home sites were accepted
and closed at an average price of $1.8 million.
WaterSound West Beach
During the fourth quarter, contracts were accepted for three home
sites at an average price of $736,400 and four were closed at an
average price of $737,900.
WaterSound West Beach is a high-end resort community with 199
single-family home sites on the beach side of County Road 30A adjacent
to Deer Lake State Park.
WaterSound
WaterSound, located on approximately 1,402 acres and currently
planned for a 1,330-unit mixed-use development, is a resort community
approximately three miles from WaterSound Beach north of U.S. 98 in
Walton County. WaterSound land-use entitlements include 457,380 square
feet of commercial space.
This resort town is being planned for the pre-retirement and
second-home markets with six and nine-hole golf courses along with
pools, beach access and other amenities. Sales at WaterSound are
expected to begin in mid-2006 with initial home-site pricing expected
to start in the high $200,000s.
During the fourth quarter, a U.S. District Court issued a
preliminary injunction suspending use of a regional general permit
issued by the U.S. Army Corps of Engineers. The permit covers an area
of Walton and Bay Counties consisting of approximately 48,000 acres,
which includes a portion of the wetlands in WaterSound. The court's
decision did not affect other areas of the project, nor permits issued
by the State of Florida or Walton County. The court specifically ruled
that the traditional individual permitting process, typically used on
projects like WaterSound, remains available to JOE for any further
permitting required for the additional phases of WaterSound. The court
ruling requires mediation between the parties and set a mid-February
2006 date for a hearing on the merits.
Meanwhile, infrastructure construction continued on 204 of the 208
home sites originally permitted in WaterSound's first phase.
Bay County Primary Communities
Development of community infrastructure began in the fourth
quarter at Hawks Landing in Bay County, Florida. The community
consists of 167 home sites being developed for sale to local and
national homebuilders. Eighty-four of the home sites are being offered
to homebuilders based in Northwest Florida. JOE has agreed to sell the
remaining 83 home sites to national homebuilder, D. R. Horton.
Hawks Landing is an 88-acre primary home community in the city of
Lynn Haven, a rapidly growing area of the region. Prices for home
sites are initially expected to range from $50,000 to more than
$65,000.
On October 20th, JOE announced an agreement with David Weekley
Homes, LLP, the nation's second largest private homebuilder, to sell
55 developed home sites at an initial price of $75,000 per site at
Palmetto Trace in Panama City Beach for the construction of
single-family homes. During the fourth quarter, the first 15 home
sites were sold under this contract.
Located in Panama City Beach off U.S. 98, Palmetto Trace is
entitled for 481 homes. JOE has contracted or sold 417 homes and home
sites as of December 31, 2005. David Weekley Homes will market and
build the last phase of Palmetto Trace with a variety of floor plans
and options.
WindMark Beach
Construction continued in the fourth quarter on the next phase of
WindMark Beach, currently planned for 1,552 units along more than
15,000 feet of beachfront near the town of Port St. Joe. The
realignment of a 3.5-mile segment of U.S. 98 within WindMark Beach is
scheduled for completion in the summer of 2006. Construction also
continued during the fourth quarter on a show home to be featured this
summer in Southern Accents magazine.
WindMark Beach is planned as a top-of-market beachfront resort
destination with 1,662 units on 2,020 acres in Gulf County. Sales in
the next phase are expected to begin later in 2006.
Port St. Joe
During the fourth quarter, the city commission of Port St. Joe
adopted a zoning ordinance allowing for a mix of residential and
commercial uses on 166 acres formerly occupied by the Port St. Joe
paper mill. Last week, JOE acquired from Smurfit-Stone Container
Corporation the remaining 50 percent of the joint venture which owns
126 acres of this project. The demolition and clean-up of the paper
mill and site was completed last year.
The project is currently being planned for approximately 600
residential units, mostly multifamily units on or near the bay front.
The plan also includes commercial space being designed as a civic
gathering place and entertainment district for Port St. Joe. The plan
provides for a public waterfront on St. Josephs Bay and an office
space designated to house the growing need for professional services.
Plans also call for a 150-room hotel and 500 wet and dry boat slips as
well as a new town hall with city government offices.
"For the better part of 50 years, this town was the heart and soul
of The St. Joe Company," said Rummell. "We are very proud to have the
opportunity to work with Port St. Joe's community leaders toward
revitalizing this town. Our goal with the mill site has always been to
capture Port St. Joe's distinctive character and add exciting new
elements that will make this an even better place to call home."
SummerCamp
During the fourth quarter, contracts were accepted and closed for
16 home sites at an average price of $260,900 and a contract was
accepted for one home at a price of $902,400. Infrastructure
construction began in the fourth quarter.
SummerCamp, located on St. James Island, is a 499-unit development
on 762 acres located east of the fishing village of Carrabelle on the
Gulf of Mexico approximately 45 miles from the commercial airport in
Tallahassee.
SouthWood
Contracts were accepted at SouthWood for 58 single-family homes in
the fourth quarter at an average price of $293,500, compared to 62
homes at an average price of $255,700 in 2004's fourth quarter.
Contracts were closed for 216 homes in SouthWood in 2005, compared to
contracts for 174 homes during the previous year.
SouthWood, located on 3,370 acres in Tallahassee, is designed for
primary homes, as well as various office, retail and industrial uses.
Northeast Florida
RiverTown
Early in the fourth quarter, the St. Johns County Commission
approved a significant zoning change for RiverTown, representing
another key step in the entitlements process. Environmental permitting
and pre-development planning continue.
RiverTown will be a planned community designed to be a new model
in large scale development, adding value and diversity to JOE's
residential portfolio. RiverTown, with parks and public meeting
places, is being planned for 4,500 housing units and 500,000 square
feet of commercial space on 4,170 acres.
Each of the seven RiverTown residential districts are being
planned to feel like unique and distinctly different neighborhoods.
All of the neighborhoods, community and retail areas will be
interwoven via a series of bike paths and walkways, with all roads
leading to the community's centerpiece, the St. John's River.
RiverTown will offer homebuyers a wide variety of price points and
lifestyles, appealing to several different target markets, including
primary home owners, second home buyers and splitters. After six years
of pre-development work, sales at RiverTown are scheduled to start in
late 2006 with the first closings expected in 2006.
Central Florida
Victoria Park
At Victoria Park, JOE accepted contracts for 40 homes in the
fourth quarter at an average price of $351,200, compared to 75 homes
at an average price of $270,200 in the fourth quarter a year ago.
During 2005, contracts were closed on 299 homes, compared to 179 the
previous year.
The development pace at Victoria Park has been accelerated to meet
new demand at higher price points. This shift is a reflection of the
market response to the Victoria Park Golf Club and other amenities.
Located between Orlando and Daytona Beach, Victoria Park sits on
1,859 acres in the historic college town of DeLand. This mixed-use
community is planned for approximately 4,200 residences built among
parks, lakes and conservation areas.
Artisan Park, Celebration
JOE accepted contracts for 24 single-family homes at an average
price of $678,500 during the fourth quarter, compared to one
single-family home at a price of $609,500 for the fourth quarter of
2004.
Contracts on 54 condominiums were closed at Artisan Park at an
average price of $294,700 during the fourth quarter. JOE also accepted
contracts for 12 condominiums at an average price of $510,900,
compared to 28 condominiums at an average price of $399,700 in the
same quarter last year.
In January 2006, JOE released most of the remaining single-family
homes in Artisan Park, including cottages, town homes and bungalows
ranging in price from the $400,000s to over $800,000. All remaining
sales and closings are expected to occur by the end of 2006.
Artisan Park, the last phase of Celebration, is master-planned to
include 267 single-family homes, 47 town homes, and 302 condominium
homes as well as parks, trails, an outdoor performance area and a
community clubhouse with a fitness center, pool, and educational and
recreational programming.
JOE owns 74 percent of the joint venture developing Artisan Park
and manages the project.
Southwest Florida
Perico Island
With the receipt of the final environmental permit,
pre-development work continued during the fourth quarter on Perico
Island in Manatee County with construction expected to begin later in
2006. Entitled for 686 condominium residences, Perico Island is being
designed to become a condominium community with panoramic vistas of
Tampa Bay, Anna Maria Sound, Perico Bayou and the Gulf of Mexico. The
community is planned to feature a private clubhouse including a
fitness center, bar and grill, screening room, swimming pool and
tennis courts.
JOE controls the 352-acre site under an option agreement and has
purchased seven adjacent acres, including a marina, which will allow a
significant upgrade of the existing street frontage, create an
aesthetically pleasing community entrance and provide future residents
with marina access and other amenities.
Sales are scheduled to start later in 2006. Pricing is expected to
range from the mid-$500,000s to more than $1.25 million.
North and South Carolina
Saussy Burbank, JOE's homebuilder based in Charlotte, N.C.,
accepted contracts for 130 homes during the fourth quarter, compared
to 129 contracts in the fourth quarter of 2004. "We have seen a broad
strengthening across our Carolina markets," said Twomey. "The
improving markets enabled Saussy to increase contract volume and
margins while eliminating significant incentives used in prior
periods."
Tables 8 and 9 summarize the sales activity at various residential
communities for the fourth quarter and full year of 2005 compared to
the same periods in 2004.
Table 8
St. Joe Towns & Resorts
Sales Activity
For the Three Months Ended December 31,
($ in thousands)
2005
--------------------------------------------
Units Avg. Contracts Avg.
Closed Price Accepted (1) Price
---------- --------- ------------- ---------
WaterColor
Home Sites 1 $571.4 0 $ N/A
Single/Multifamily
Homes 5 966.0 0 N/A
PRC Shares 0 N/A 0 N/A
WaterSound Beach
Home Sites 6 1,778.9 6 1,778.9
Single-Family Homes 0 N/A 0 N/A
Multifamily Homes 9 1,547.2 0 N/A
WaterSound West Beach
Home Sites 4 737.9 3 736.4
Single-Family Homes 0 N/A 0 N/A
Palmetto Trace
Home Sites 15 75.0 15 75.0
Single-Family Homes 41 257.8 9 277.2
The Hammocks
Home Sites 0 N/A 0 N/A
Single-Family Homes 19 164.5 6 245.8
WindMark Beach
Home Sites 0 N/A 0 N/A
Bridgeport
Home Sites 0 N/A 0 N/A
SouthWood
Home Sites 19 113.9 26 110.8
Single-Family Homes 43 282.3 58 293.5
SummerCamp
Home Sites 16 260.9 16 260.9
Single-Family Homes 0 N/A 1 902.4
St. Johns G & CC
Home Sites 11 72.1 0 N/A
Single-Family Homes 18 446.7 6 587.9
Hampton Park/James
Island
Single-Family Homes 0 N/A 0 N/A
Victoria Park
Home Sites 28 144.2 23 137.9
Single-Family Homes 80 276.3 40 351.2
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
Paseos (2)
Single-Family Homes 28 482.4 0 N/A
Rivercrest (2)
Single-Family Homes 121 179.6 4 207.3
Saussy Burbank
Single-Family Homes 197 258.4 130 272.5
---------- -------------
Total 773 386
========== =============
2004
--------------------------------------------
Units Avg. Contracts Avg.
Closed Price Accepted (1) Price
---------- --------- ------------- ---------
WaterColor
Home Sites 13 $724.9 13 $ 724.9
Single/Multifamily
Homes 3 979.4 0 N/A
PRC Shares 87 208.6 4 255.0
WaterSound Beach
Home Sites 0 N/A 0 N/A
Single-Family Homes 1 5,100.0 0 N/A
Multifamily Homes 1 2,500.0 1 2,500.0
WaterSound West Beach
Home Sites 0 N/A 0 N/A
Single-Family Homes 0 N/A 0 N/A
Palmetto Trace
Home Sites 0 N/A 0 N/A
Single-Family Homes 33 147.0 23 243.4
The Hammocks
Home Sites 4 39.0 4 39.0
Single-Family Homes 29 153.2 11 138.7
WindMark Beach
Home Sites 0 N/A 0 N/A
Bridgeport
Home Sites 0 N/A 0 N/A
SouthWood
Home Sites 25 95.8 11 100.0
Single-Family Homes 52 252.7 62 255.7
SummerCamp
Home Sites 0 N/A 0 N/A
Single-Family Homes 0 N/A 0 N/A
St. Johns G & CC
Home Sites 12 61.2 20 61.0
Single-Family Homes 28 362.9 28 424.7
Hampton Park/ James
Island
Single-Family Homes 14 398.6 1 347.0
Victoria Park
Home Sites 26 76.8 30 85.2
Single-Family Homes 54 226.4 75 270.2
Artisan Park (2)
Home Sites 4 313.8 4 313.8
Single-Family Homes 39 388.4 1 609.5
Multifamily Homes 0 N/A 28 399.7
Paseos (2)
Single-Family Homes 50 409.4 7 664.3
Rivercrest (2)
Single-Family Homes 110 160.5 183 183.0
Saussy Burbank
Single-Family Homes 173 235.7 129 237.2
---------- -------------
Total 758 635
========== =============
Table 9
St. Joe Towns & Resorts
Sales Activity
For the Year Ended December 31,
($ in thousands)
2005
--------------------------------------------
Units Avg. Contracts Avg.
Closed Price Accepted (1) Price
---------- --------- ------------- ---------
WaterColor
Home Sites 50 $660.6 50 $ 660.6
Single/Multifamily
Homes 8 885.5 0 N/A
PRC Shares 1 285.0 1 285.0
WaterSound Beach
Home Sites 46 1,128.4 46 1,128.4
Single-Family Homes 0 N/A 0 N/A
Multifamily Homes 48 1,501.1 (1) (1,250.0)
WaterSound West Beach
Home Sites 10 719.4 11 722.3
Single-Family Homes 0 N/A 0 N/A
Palmetto Trace
Home Sites 15 75.0 15 75.0
Single-Family Homes 141 214.5 104 276.5
The Hammocks
Home Sites 0 N/A 0 N/A
Single-Family Homes 79 164.7 71 154.2
WindMark Beach
Home Sites 0 N/A 0 N/A
Bridgeport
Home Sites 31 23.7 36 23.7
SouthWood
Home Sites 63 124.8 67 125.2
Single-Family Homes 216 254.1 209 290.8
SummerCamp
Home Sites 64 350.2 64 350.2
Single-Family Homes 0 N/A 1 902.4
St. Johns G & CC
Home Sites 43 68.4 35 70.2
Single-Family Homes 111 412.3 47 488.6
Hampton Park/ James
Island
Single-Family Homes 13 419.8 4 502.5
Victoria Park
Home Sites 64 130.9 61 135.3
Single-Family Homes 299 267.4 261 303.9
Artisan Park (2)
Home Sites 16 425.6 16 425.6
Single-Family Homes 95 529.3 85 654.7
Multifamily Homes 86 294.2 88 472.7
Paseos (2)
Single-Family Homes 117 450.8 1 773.0
Rivercrest (2)
Single-Family Homes 491 168.5 294 203.8
Saussy Burbank
Single-Family Homes 699 254.9 783 257.9
---------- -------------
Total 2,806 2,349
========== =============
2004
--------------------------------------------
Units Avg. Contracts Avg.
Closed Price Accepted (1) Price
---------- --------- ------------- ---------
WaterColor
Home Sites 148 $488.4 96 $ 616.3
Single/Multifamily
Homes 11 896.8 12 942.6
PRC Shares 87 N/A 64 215.5
WaterSound Beach
Home Sites 29 523.2 17 626.4
Single-Family Homes 1 5,100.0 2 3,197.0
Multifamily Homes 51 1,172.8 50 1,466.2
WaterSound West Beach
Home Sites 0 N/A 0 N/A
Single-Family Homes 0 N/A 0 N/A
Palmetto Trace
Home Sites 0 N/A 0 N/A
Single-Family Homes 92 149.5 106 167.5
The Hammocks
Home Sites 70 37.8 70 37.8
Single-Family Homes 77 149.9 81 161.4
WindMark Beach
Home Sites 4 1,006.3 4 1,006.3
Bridgeport
Home Sites 0 N/A 0 N/A
SouthWood
Home Sites 58 97.7 60 97.6
Single-Family Homes 174 235.6 210 250.0
SummerCamp
Home Sites 0 N/A 0 N/A
Single-Family Homes 0 N/A 0 N/A
St. Johns G & CC
Home Sites 35 83.6 20 61.0
Single-Family Homes 104 350.3 125 386.5
Hampton Park/ James
Island
Single-Family Homes 72 360.6 30 377.4
Victoria Park
Home Sites 53 76.9 54 79.3
Single-Family Homes 179 221.9 270 245.4
Artisan Park (2)
Home Sites 17 211.5 17 211.5
Single-Family Homes 64 404.8 86 452.1
Multifamily Homes 0 N/A 149 325.3
Paseos (2)
Single-Family Homes 124 396.2 182 482.9
Rivercrest (2)
Single-Family Homes 298 152.2 729 171.2
Saussy Burbank
Single-Family Homes 748 221.3 698 229.4
---------- -------------
Total 2,496 3,132
========== =============
(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 St. Joe Towns &
Resorts.
COMMERCIAL REAL ESTATE
- ----------------------
The commercial segment consists of St. Joe Commercial, Inc., JOE's
commercial real estate development unit. Through September 7, 2005,
this segment also included Advantis Real Estate Services Company
(Advantis), which was sold to its management team on that date.
Results from Advantis are included in discontinued operations in the
financial statements for all periods.
Pretax income from continuing operations for the commercial
segment was $4.9 million for the fourth quarter of 2005, compared with
$17.0 million in the same quarter of 2004, excluding income from
unconsolidated affiliates. The 2004 results include the sale of 93
acres in Pier Park for $26.5 million, or $286,000 per acre, with a
gain of $11.1 million. For the year 2005, pretax income from
continuing operations was $22.7 million compared to $21.7 million in
2004.
Pretax income from discontinued operations for the fourth quarter
of 2005 was $5.8 million, compared with $1.2 million in the fourth
quarter of 2004. Fourth quarter discontinued operations include the
results of operations and pretax gain of $5.2 million from the sale of
one office building. See Table of quarterly discontinued operations
below. For the year 2005, pretax income from discontinued operations
was $20.3 million compared to $9.9 million in 2004. Included in
discontinued operations in 2005 were the results of operations and the
sale of Advantis and the operations and sales of four office buildings
from the Investment Property Portfolio.
St. Joe Commercial
"Our commercial division again turned in a solid quarter driven by
the gain on the sale of an office building in Tampa, along with retail
and commerce park land sales in Bay and Gulf Counties," said Twomey.
During the fourth quarter of 2005, JOE sold six Northwest Florida
commercial land parcels for a total of $4.0 million. Commercial land
sales averaged $186,000 per acre in 2005's fourth quarter, compared to
$233,000 per acre in the fourth quarter a year ago.
"Our earlier guidance for 2005's fourth quarter mentioned a number
of sizable commercial transactions that were scheduled to close during
the quarter," said Twomey. "Two of the scheduled commercial land
transactions that didn't close are in process. One is now in contract
discussions and the other is now under contract with a non-refundable
deposit. These two potential transactions highlight both the 'lumpy'
nature of our earnings and that sales which don't occur today are
still available to close tomorrow. We are pleased with the value we
expect to realize from both land parcels."
Table 11 summarizes JOE's commercial land sales in Northwest
Florida for the fourth quarters and full years of 2005 and 2004.
Table 11
St. Joe Commercial Northwest Florida Land Sales
Quarter Ended December 31,
Number of Gross Sales Price Average Price/Acre
Sales Acres Sold (in thousands) (in thousands)
------- ---------- --------------- -----------------
2005 6 21 $3,961 $186
2004(1) 15 145 33,736 233
Year Ended December 31,
Number of Gross Sales Price Average Price/Acre
Sales Acres Sold (in thousands) (in thousands)
------- ---------- --------------- -----------------
2005 36 220 $30,885 $140
2004(1) 41 384 43,591 114
(1) Includes the sale of 93 acres in Pier Park to the Simon Property
Group for $26.5 million, or $286,000 per acre, in the fourth
quarter of 2004.
Northwest Florida
Retail
During the fourth quarter, JOE sold two out-parcels in Bay County
at pricing of $958,000 and $873,000 per acre. The pricing for retail
out parcels has doubled in Bay County since JOE began its retail
development and land sales program in 2002.
"Interest from large national retailers in Panama City Beach, and
Northwest Florida remained strong in the fourth quarter," said Twomey.
"We look forward to bringing new retail operators into the Northwest
Florida market in 2006."
Multifamily
For the year, JOE closed on five parcels intended for multifamily
development totaling 83 acres at an average price of $156,000 per
acre. These land parcels, with residential entitlements totaling 910
units, were sold to national and regional multifamily developers
including Trammell Crow Residential, Broad Street Partners and EPOCH
Properties.
"Multifamily housing, which includes apartments, condominiums and
town homes, is critically important to the Northwest Florida economy
as new workers arrive in the marketplace," said Twomey. "These
transactions represent important new housing choices for residents in
Bay and Leon Counties."
"The increasing Northwest Florida demand from national and
regional multifamily developers reflects the greater awareness of the
region as a viable residential market for a broad range of product
types," said Twomey.
Commerce and Business Parks
At Beach Commerce Park, pricing continued to increase in the
fourth quarter for office and light industrial land with a transaction
closing at $200,000 per acre, compared with average pricing of $72,000
per acre in the same quarter a year ago.
"Strong demand and pricing continued during 2005 at JOE's commerce
parks," said Twomey. "These parks provide local and regional
businesses with the opportunity to put new operations into service
quickly, and as a result, new jobs are being created in the region."
For the year, commercial land sales within JOE's commerce and
business parks totaled $8.4 million, compared to $5.4 million last
year. JOE has eight parks operating or under development in five
Northwest Florida counties.
Investment Property Portfolio
- -----------------------------
In the fourth quarter, JOE closed on the sale of a 153,000
square-foot office building in Tampa, Florida that was held in its
Investment Property Portfolio. JOE sold the property for $21.9 million
for a pretax gain of $5.2 million, which is included in discontinued
operations. JOE also acquired a 225,000 square-foot office building
located in Norfolk, Virginia, during the fourth quarter. The property,
acquired for $50.5 million, was 96 percent leased as of year end.
As of December 31, 2005, JOE's portfolio of commercial office
buildings (acquired through its redeployment program of tax deferred
sales proceeds from the sale of land and buildings from the investment
portfolio) totaled approximately 2.6 million square feet and
represented an aggregate initial investment of $373 million.
Table 12 summarizes JOE's investment property portfolio of office
buildings as of December 31, 2005.
Table 12
Investment Portfolio of Office Buildings
December 31, 2005
Number of Net Rentable Leased
Location Properties Square Feet Percentage
-------- ---------- ----------- ----------
Florida
Jacksonville 1 136,000 69 %
Northwest Florida 3 156,000 96
Orlando 2 317,000 94
Tampa 2 147,000 91
Atlanta 8 1,289,000 79
Charlotte 1 158,000 100
Virginia 3 354,000 96
---------- ----------- ----------
Total 20 2,557,000 85 %
========== =========== ==========
ST. JOE LAND COMPANY
- --------------------
St. Joe Land Company had pretax income from continuing operations
of $24.2 million in the fourth quarter of 2005, compared with $16.3
million in the fourth quarter of 2004. JOE's land sales division had
pretax income from continuing operations of $68.9 million for the full
year 2005, compared with $56.7 million in 2004.
Rural Land Sales
In the fourth quarter of 2005, JOE sold 9,110 acres of rural land
at an average price of $2,712 per acre, compared to 3,369 acres for an
average price of $5,105 per acre in the same quarter a year ago. This
variance in price-per-acre is due primarily to the sale of one large
parcel in the fourth quarter of 2004 consisting of approximately 349
acres at a purchase price of $8.7 million, or $25,000 per acre. The
mix of land sold each quarter varies by location and quality.
For the year ended 2005, JOE sold 28,958 acres of rural land at an
average price of $2,378 per acre, compared with 20,175 acres of rural
land at an average price of $3,372 per acre in 2004.
"The rural land buyer profile continues to shift away from
neighbors in Northwest Florida to those living outside the region,"
said Twomey. "Only 28 percent of our rural land customers in 2003,
including those purchasing RiverCamps home sites, lived more than 120
miles from the land they purchased. By 2005 buyers from outside the
region had increased to 63 percent. We continue to see South Florida
grow as a primary source market for rural land customers."
In the fourth quarter, JOE sold 446 acres in southwest Georgia
that had some timber ready for harvest, but little topographic
interest. The land, owned by the company for decades, sold for $1.2
million, or $2,800 per acre. At the end of the year, JOE owned an
additional 1,102 acres of legacy land in Georgia. Earlier in 2005, JOE
paid $1,225 per acre for approximately 47,000 acres in southwest
Georgia with a good stand of timber, more interesting topography and
significant river frontage. "We are pleased with the price we received
for our Georgia land sale and the price we paid for similar land early
last year," said Twomey.
RiverCamps
RiverCamps are planned settlements in rustic settings, offering
personal retreats in private preserves. RiverCamps' low-density home
sites, typically averaging one acre, are surrounded by a large common
area preserved for conservation.
RiverCamps on Crooked Creek
In the fourth quarter, contracts were closed for six home sites at
RiverCamps on Crooked Creek at an average price of $283,000.
Additionally, two contracts were accepted in late December and one
closed in January 2006.
Construction continued in the fourth quarter on the RiverHouse
amenity complex, the boat launch and dock facility. Construction is
completed on almost six miles of nature trails and elevated walkways
and bridges traversing marsh grass, deepwater creeks, and the coastal
berm fronting RiverCamps across West Bay. Infrastructure for 190 home
sites and a RiverCamps prototype cabin are already completed and
construction of the infrastructure for another 43 home sites is slated
for completion in April of 2006.
RiverCamps on Crooked Creek, located in western Bay County, is
currently planned for up to 408 home sites on 1,491 acres of former
timberland and features views of West Bay, the Intracoastal Waterway
and Crooked Creek.
WhiteFence Farms
JOE's WhiteFence Farms will be single-family farmsteads of 3 to 15
acres located in communities of 350 to approximately 1,000 acres. JOE
plans to develop WhiteFence Farms in multiple locations over the next
several years. Though the communities will be located in rural
settings, sites will be proximate to suburban services. WhiteFence
Farms are being designed for those who want to live close to the land
- - but not have to make a living from it.
The deed-restricted farmsteads are being planned for a large home
site plus other optional buildings, such as barns, guesthouses and
stables. Some may have ponds or other water features. Owners will have
room to pursue a number of rural interests, including gardening, hobby
farming and horseback riding with common farm fields interconnected
with trails.
WhiteFence Farms - Red Hills
Planning and design continued during the fourth quarter on
WhiteFence Farms - Red Hills with 51 farmsteads on 373 acres near
Tallahassee. Initial pricing is expected to range from $250,000 to
$750,000 for farmstead sites ranging in size from three to 6.5 acres.
Sales are expected to begin in the third quarter of 2006 with closings
expected in the fourth quarter of 2006.
During the fourth quarter, construction continued on a 2006 Idea
House and Farmstead to be featured in the August 2006 issues of
Southern Living and The Progressive Farmer magazines.
Florida Ranches
Land preparation work continued on the initial Florida Ranch
properties in several locations in Northwest Florida. Florida Ranches
are expected to consist of 50 to 150-acre sites located within 1,000
to 3,000-acre communities.
Initial pricing for Florida Ranch parcels is anticipated to range
from $4,500 to $7,500 per acre. Sales of Florida Ranches are expected
to begin later in 2006 with closings expected in the first quarter of
2007.
FINANCIAL DATA
($ in millions except per share amounts)
Summary Balance Sheet
December 31, 2005 December 31, 2004
----------------- -----------------
Assets
Investment in real estate $1,036.2 $942.6
Cash and cash equivalents 202.6 94.8
Accounts receivable 58.9 89.8
Prepaid pension asset 95.0 94.1
Property, plant and equipment, net 40.2 33.6
Other assets 159.0 148.7
----------------- -----------------
Total assets $1,591.9 $1,403.6
================= =================
Liabilities and Stockholders' Equity
Debt $554.4 $421.1
Accounts payable, accrued
liabilities 214.4 212.3
Deferred income taxes 315.9 264.4
----------------- -----------------
Total liabilities 1,084.7 897.8
Minority interest 18.2 10.4
Total stockholders' equity 489.0 495.4
----------------- -----------------
Total liabilities and stockholders'
equity $1,591.9 $1,403.6
================= =================
Debt Schedule
December 31, 2005 December 31, 2004
----------------- -----------------
Senior notes $407.0 $275.0
Acquisition and other debt 14.7 14.9
Other collateralized/specific
asset related debt 132.7 131.2
----------------- -----------------
Total debt $554.4 $421.1
================= =================
Consolidated Quarterly Comparisons
Quarter Ended December 31, Year Ended December 31,
------------------------- -------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
Revenues:
Real estate sales $231.4 $231.0 $824.8 $734.3
Rental revenue 10.3 8.3 40.7 30.8
Timber sales 6.1 8.1 28.0 35.2
Other revenues 9.8 10.1 44.7 43.3
------------ ------------ ------------ ------------
Total revenues 257.6 257.5 938.2 843.6
------------ ------------ ------------ ------------
Expenses:
Cost of real
estate sales 145.9 151.7 526.1 485.4
Cost of rental
revenue 4.2 3.5 15.9 12.8
Cost of timber
sales 4.9 4.9 20.0 21.8
Cost of other
revenues 9.9 9.8 39.7 37.6
Other operating
expenses 17.4 20.0 69.6 69.0
Corporate expense,
net 11.7 14.5 48.0 43.8
Depreciation and
amortization 9.8 8.5 38.1 31.3
Impairment loss -- -- -- 2.0
------------ ------------ ------------ ------------
Total expenses 203.8 212.9 757.4 703.7
------------ ------------ ------------ ------------
Operating profit 53.8 44.6 180.8 139.9
Other income
(expense) (1.7) (1.5) (7.7) (6.5)
------------ ------------ ------------ ------------
Pretax income from
continuing
operations 52.1 43.1 173.1 133.4
Income tax expense (16.5) (16.7) (64.4) (52.5)
Minority interest
(expense) income (4.5) (1.7) (7.8) (2.6)
Equity in income
(loss) of
unconsolidated
affiliates 2.5 2.6 13.0 5.6
Discontinued
operations 3.6 0.8 12.7 6.2
------------ ------------ ------------ ------------
Net income $37.2 $28.1 $126.6 $90.1
============ ============ ============ ============
Net income per
diluted share $0.49 $0.37 $1.66 $1.17
============ ============ ============ ============
Weighted average
diluted shares
outstanding 75,537,965 76,635,119 76,208,936 76,908,300
Quarterly Revenues by Segment
Quarter Ended December 31, Year Ended December 31,
------------------------- -------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
Towns & Resorts
Real estate sales $187.0 $163.8 $663.0 $575.0
Rental revenue 0.3 0.2 1.6 1.1
Other revenues 9.1 9.4 43.3 41.5
------------ ------------ ------------ ------------
Total Towns &
Resorts 196.4 173.4 707.9 617.6
------------ ------------ ------------ ------------
Commercial real
estate
Real estate sales 10.9 46.6 62.7 87.2
Rental revenue 10.0 8.1 39.2 29.7
Other revenues 0.6 0.7 1.2 1.9
------------ ------------ ------------ ------------
Total Commercial
real estate 21.5 55.4 103.1 118.8
------------ ------------ ------------ ------------
Land Sales
Real estate sales 33.5 20.6 99.0 72.0
Other revenues 0.1 -- 0.2 --
------------ ------------ ------------ ------------
Total Land sales 33.6 20.6 99.2 72.0
------------ ------------ ------------ ------------
Forestry sales 6.1 8.1 28.0 35.2
------------ ------------ ------------ ------------
Total revenues $257.6 $257.5 $938.2 $843.6
============ ============ ============ ============
Quarterly Segment Pretax Income
From Continuing Operations
Dec 31 Sep 30 Jun 30 Mar 31 Dec 31 Sep 30 Jun 30 Mar 31 Dec 31
2005 2005 2005 2005 2004 2004 2004 2004 2003
------ ------ ------ ------ ------ ------ ------ ------ ------
Towns &
Resorts $37.5 $25.6 $50.9 $23.1 $24.7 $31.8 $34.4 $9.1 $13.2
Commer-
cial
real
estate 4.9 14.2 2.5 1.2 17.0 2.8 1.0 0.7 0.5
Land
sales 24.2 16.6 16.0 12.0 16.3 11.5 10.3 18.6 32.7
Forestry 0.5 0.6 1.6 2.0 2.1 1.9 2.4 2.7 2.3
Corporate
and
other (15.0) (16.1) (15.4) (13.8) (17.0) (13.6) (11.9) (11.5) (11.6)
------ ------ ------ ------ ------ ------ ------ ------ ------
Pretax
income
from
continuing
oper-
ations $52.1 $40.9 $55.6 $24.5 $43.1 $34.4 $36.2 $19.6 $37.1
====== ====== ====== ====== ====== ====== ====== ====== ======
Other Income (Expense)
Quarter Ended December 31, Year Ended December 31,
------------------------- -------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
Dividend and
interest income $2.2 $0.4 $3.5 $0.9
Interest expense (4.9) (2.9) (15.2) (10.2)
Other 1.0 1.0 4.0 2.8
------------ ------------ ------------ ------------
Total $(1.7) $(1.5) $(7.7) $(6.5)
============ ============ ============ ============
Equity in Income of Unconsolidated Affiliates
Quarter Ended December 31, Year Ended December 31,
------------------------- -------------------------
2005 2004 2005 2004
------------ ------------ ------------ ------------
Towns & Resorts $2.5 $2.8 $10.6 $5.8
Commercial real
estate -- (0.2) 2.4 (0.2)
------------ ------------ ------------ ------------
Total $2.5 $2.6 $13.0 $5.6
============ ============ ============ ============
Quarterly Discontinued Operations
Quarter Ended Year Ended
December 31, December 31,
----------------- -----------------
2005 2004 2005 2004
-------- -------- -------- --------
Income (loss) from Advantis
operations, net of tax $ -- $0.7 $(0.7) $0.8
Income from office buildings,
net of tax 0.1 0.1 0.1 0.8
Other discontinued operations,
net of tax -- -- -- (0.2)
Income (loss) on sale of Advantis,
net of tax 0.3 -- (5.9) --
Gains on sales of office buildings,
net of tax 3.2 -- 19.2 4.8
-------- -------- -------- --------
Net income from discontinued
operations $3.6 $0.8 $12.7 $6.2
======== ======== ======== ========
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, 2005, and to
discuss earnings guidance for 2006 on Wednesday, February 8, 2006, at
10:30 a.m., Eastern Standard Time.
To participate in the call, please phone 800-811-0667 (for
domestic calls from the United States) or 913-981-4901 (for
international calls) approximately ten minutes before the scheduled
start time. 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 7685604. The replay
will be available for one week.
JOE will also webcast 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, a publicly held company based in
Jacksonville, is one of Florida's largest real estate operating
companies. It is engaged in town, resort, commercial and industrial
development and land sales. JOE also has significant interests in
timber.
More information about JOE can be found at our web site at
http://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;
-- the size and number of residential units and commercial
buildings;
-- expected development timetables and projected timing for the
first 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 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 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, 2004 as well as, among
others, the following:
-- economic conditions, particularly in Northwest Florida,
Florida as a whole and key areas of the southeast 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 macro-economic perceptions or conditions in the
real estate market;
-- 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 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 approvals of the local airport
authority and the Federal Aviation Administration, various
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 continuing effects of recent hurricane disasters on the
regional and national economies and 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;
-- 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.
Copyright 2006, 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. "Southern Living" is a registered trademark of
Southern Living, Inc. "Southern Accents" is a registered trademark of
Southern Accents, Inc. "Progressive Farmer" is a registered trademark
of Progressive Farmer, Inc.
CONTACT: The St. Joe Company, Jacksonville
JOE Media Contact: Jerry M. Ray , 904-301-4430
jray@joe.com
or
JOE Investor Contact: Brad Slappey, 904-301-4302
bslappey@joe.com