UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 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): |
May 6, 2008 |
THE ST. JOE COMPANY |
||
(Exact Name of Registrant as Specified in Its Charter) |
Florida |
1-10466 |
59-0432511 |
||
(State or Other Jurisdiction of Incorporation) |
(Commission File Number)
|
(IRS Employer 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-4(c))
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On May 6, 2008, The St. Joe Company (the "Company") issued a press release announcing the Company’s financial results for the quarter ended March 31, 2008. A copy of the press release is furnished with this Form 8-K as Exhibit 99.1.
Also furnished herewith as Exhibit 99.2 are tables containing certain additional information regarding the results of operations of the Company for the quarter ended March 31, 2008.
ITEM 9.01. FINANCIAL STATEMENTS AND EXHIBITS
(c) Exhibits
99.1 Press Release dated May 6, 2008
99.2 Additional information tables for the quarter ended March 31, 2008
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 |
||||
|
||||
Date: | May 6, 2008 | By: |
/s/ William S. McCalmont |
|
William S. McCalmont |
||||
Chief Financial Officer |
Exhibit 99.1
The St. Joe Company (JOE) Reports First Quarter 2008 Financial Results
Panama City – Bay County International Airport Construction Progresses on Schedule
JACKSONVILLE, Fla.--(BUSINESS WIRE)--The St. Joe Company (NYSE:JOE) today announced Net Income for the first quarter 2008 increased $12.4 million to $32.1 million, or $0.40 per share, compared to Net Income of $19.7 million, or $0.27 per share, for the first quarter of 2007. JOE’s first quarter results included pre-tax impairment charges of $2.3 million, or $.02 per share after taxes, as a result of continuing declines in sales and listing prices principally in our primary communities. Also included in 2008 results are pre-tax restructuring charges of $0.5 million, or less than $0.01 per share after tax, compared to $3.2 million, or $0.03 per share after tax, in 2007. All per share references in this release are presented on a diluted basis.
“Like the rest of the country, Florida is facing very challenging real estate market conditions. Consumer confidence is declining and many consumers seem to be deferring residential real estate purchases until there is more economic clarity,” said chairman and CEO Peter S. Rummell. “With the U.S. and Florida economies battling rising home foreclosures, a tightening of credit and a significant inventory of unsold homes, predicting when residential real estate markets will return to health remains difficult. However, demand for rural land remains strong, and we are having success selling non-strategic rural land parcels to a wide variety of customers.”
During the first quarter, significant progress was achieved in four areas:
“While it is impossible to predict when conditions in JOE residential markets will improve, we are taking important steps to be properly positioned when they do,” said Rummell. “We have become a leaner, more nimble company.”
“Looking ahead two years from today, 2010 will be an important time for JOE,” said Rummell. “The new Panama City - Bay County airport is scheduled to open at that point and many economists think economic conditions will be improving by then. Our job between now and then is to focus on the demand side of the equation and work with a broad range of strategic allies - from the state economic development organizations to third-party developers - to ensure West Bay and the new airport are a success.”
Airport Progress Continues
“We are pleased that the construction of the Panama City – Bay County International Airport is progressing on schedule,” said Rummell. “Each day the Airport Authority continues with construction brings us one day closer to a new airport capable of attracting better air service and stronger economic development to the region. It also brings us closer to the permanent protection of West Bay and the establishment of the West Bay Preservation Area.”
The Airport Authority has received all final permits, completed and approved the airport relocation financial package and construction is well underway. The Airport Authority continues to estimate that the new airport will open in mid-2010, barring unexpected delays or additional legal challenges. Airport opponents have filed suits in three different federal courts in an effort to halt or delay the relocation of the airport. To date these courts have consistently issued rulings allowing construction to continue.
“On a separate front, Coastal Vision 3000, a rapidly growing business group with members from across Northwest Florida, has initiated a regional effort to attract improved air service to Northwest Florida,” said Rummell. “With the airport now well under construction, we must focus our attention on efforts to drive demand for real estate in Northwest Florida. That includes air service marketing and economic development. The new airport is an extraordinary economic development tool that we intend to take full advantage of.”
JOE’s Balance Sheet
On March 3, 2008, JOE sold 17,145,000 shares of its common stock. The approximately $580 million of net proceeds from the public offering were used to repay substantially all of JOE's outstanding indebtedness.
“JOE’s successful equity offering has dramatically increased our financial flexibility in weathering the current market downturn,” said William S. McCalmont, JOE’s CFO. “As we move forward, we are committed to maintaining a strong balance sheet.”
At March 31, 2008, JOE’s debt was $288.7 million, including $30.2 million of defeased debt. On April 4, 2008, JOE paid off $240 million of Senior Notes making it virtually debt free. At the end of the first quarter, JOE had approximately $480.3 million of available capacity under its $500 million Revolving Credit Facility.
Additionally, JOE continues to focus on reducing its capital expenditures and overhead expenses. JOE expects capital expenditures in 2008 to be less than $90 million and even lower in 2009.
Operating Results
During the fourth quarter of 2007, JOE announced it was marketing non-strategic rural lands for sale. During the quarter that ended March 31, 2008, JOE sold 57,435 acres for a total of $91.1 million, with prices ranging from $1,330 to $4,500 per acre.
“Demand for both large and small tracts of rural land has held up well during this current market downturn,” said JOE president and COO Britt Greene. “We continue to see interest from large landowners, recreational land buyers, conservation land buyers and pension funds.”
Resort and primary residential sales generated $9.7 million in revenue. As anticipated, conditions in JOE’s residential markets remain difficult. JOE did not close any commercial land sales during the first quarter. Due to the challenges facing the retail industry, as well as the nature of commercial land transactions, JOE expects its revenue from commercial land sales to remain lumpy.
“We continue to see interest in strategically located commercial and industrial property,” said Greene. “We have had solid interest from prospective retail, hospitality and commercial users and strategic partners in property in the West Bay Sector near the new airport. However, we are going to be strategic in how best to realize this land’s value. We are evaluating ways to build sustainable recurring income streams from commercial development on this very valuable land.”
Land Holdings and Entitlements
On March 31, 2008, JOE owned approximately 638,000 acres, concentrated primarily in Northwest Florida. Approximately 430,000 acres, or 68 percent, of JOE’s total land holdings are within 15 miles of the coast of the Gulf of Mexico.
On March 31, 2008, JOE’s land-use entitlements in hand or in process totaled approximately 46,200 residential units and approximately 14.5 million square feet of commercial space, as well as an additional 611 acres with land-use entitlements for commercial uses.
Management Succession
On May 13, 2008, the date of JOE’s 2008 annual meeting of shareholders, Britt Greene will assume the position of CEO of JOE. Peter Rummell will continue to serve as Chairman of the Board of Directors.
“I am immensely proud of what we have accomplished during the last 11 years," said Rummell. “I am equally proud that Britt comes from within the organization, providing stability and context as we move forward.”
FINANCIAL DATA ($ in millions except per share amounts) |
||||||||
Consolidated Results | Quarter Ended March 31, | |||||||
2008 | 2007 | |||||||
Revenues | ||||||||
Real estate sales | $ | 101.3 | $ | 82.4 | ||||
Timber sales | 7.6 | 4.8 | ||||||
Rental revenue | 0.6 | 1.2 | ||||||
Other revenues | 7.3 | 6.6 | ||||||
Total revenues | 116.8 | 95.0 | ||||||
Expenses | ||||||||
Cost of real estate sales | 18.9 | 26.5 | ||||||
Cost of timber sales | 4.9 | 4.4 | ||||||
Cost of rental revenue | 0.7 | 1.1 | ||||||
Cost of other revenues | 9.5 | 8.0 | ||||||
Other operating expenses | 15.5 | 14.7 | ||||||
Corporate expense, net | 8.6 | 7.9 | ||||||
Restructuring charge | 0.5 | 3.2 | ||||||
Impairment losses | 2.3 | -- | ||||||
Depreciation and amortization | 4.7 | 5.0 | ||||||
Total expenses | 65.6 | 70.8 | ||||||
Operating profit | 51.2 | 24.2 | ||||||
Other income (expense) |
(1.7 |
) | 0.8 | |||||
Pretax income from continuing operations |
49.5 |
25.0 | ||||||
Income tax expense |
(17.8 |
) | (6.2 | ) | ||||
Minority interest | 0.4 | (0.4 | ) | |||||
Equity (loss) in income of unconsolidated affiliates | (0.1 | ) | 0.9 | |||||
Discontinued operations, net of tax | 0.1 | 0.4 | ||||||
Net income | $ |
32.1 |
$ | 19.7 | ||||
Net income per share | $ | 0.40 | $ | 0.27 | ||||
Weighted average shares outstanding | 79,502,018 (1 | ) | 74,257,412 | |||||
(1) As a result of the recent equity offering, shares outstanding at March 31, 2008 totaled 92,452,108. |
Revenues by Segment |
||||||
Quarter Ended March 31, | ||||||
|
2008 | 2007 | ||||
Residential | ||||||
Real estate sales | $ | 9.8 | $ | 30.1 | ||
Rental revenue | 0.4 | 0.2 | ||||
Other revenues | 7.4 | 6.7 | ||||
Total Residential | 17.6 | 37.0 | ||||
Commercial | ||||||
Real estate sales | 0.4 | 5.5 | ||||
Rental revenue | 0.1 | 1.0 | ||||
Other revenues | -- | -- | ||||
Total Commercial | 0.5 | 6.5 | ||||
Rural Land sales | ||||||
Real estate sales | 91.1 | 46.7 | ||||
Total Rural Land sales | 91.1 | 46.7 | ||||
Forestry sales | 7.6 | 4.8 | ||||
Total revenues |
$ | 116.8 | $ | 95.0 |
Summary Balance Sheet |
||||||
March 31, 2008 | December 31, 2007 | |||||
Assets | ||||||
Investment in real estate | $ | 950.7 | $ | 943.5 | ||
Cash and cash equivalents |
308.9 |
24.3 | ||||
Pledged treasury securities | 30.2 | 30.7 | ||||
Notes receivable | 130.2 | 56.3 | ||||
Prepaid pension asset | 110.9 | 109.3 | ||||
Property, plant and equipment, net | 22.6 | 23.7 | ||||
Other assets |
70.5 |
68.0 | ||||
Assets held for sale | 8.1 | 8.1 | ||||
Total assets | $ |
1,632.1 |
$ | 1,263.9 | ||
Liabilities and Stockholders’ Equity | ||||||
Debt | $ | 288.7 | $ | 541.2 | ||
Accounts payable, accrued liabilities | 135.9 | 152.3 | ||||
Deferred income taxes | 107.3 | 83.5 | ||||
Liabilities of assets held for sale | 0.3 | 0.3 | ||||
Total liabilities | 532.2 | 777.3 | ||||
Minority interest | 4.3 | 6.3 | ||||
Total stockholders’ equity |
1,095.6 |
480.3 | ||||
Total liabilities and stockholders’ equity | $ |
1,632.1 |
$ | 1,263.9 |
Debt Schedule |
||||||||
March 31, 2008 | December 31, 2007 | |||||||
Senior revolving credit facility | $ | -- | $ | 132.0 | ||||
Senior notes | 240.0 (1 | ) | 240.0 | |||||
Term loan | -- | 100.0 | ||||||
Debt secured by securities, certain commercial and residential property |
48.7 (2 | ) | 69.2 (2 | ) | ||||
Total debt | $ | 288.7 | $ | 541.2 | ||||
(1) All Senior Notes were paid off on April 4, 2008. Also paid on April 4, 2008 were $29.7 million of “make-whole” fees. (2) Includes $30.2 million of debt defeased in connection with the sale of our office portfolio. |
Additional Information
Additional information with respect to the Company’s results for the first quarter 2008 will be made available in a Form 8-K and Form 10-Q that will be filed with the Securities and Exchange Commission today.
Conference Call Information
On Tuesday, May 6, 2008, at 10:30 a.m. (EDT), JOE will host an interactive conference call to review the company’s results for the quarter ended March 31, 2008.
To participate in the call, please phone 888-600-4885 (for domestic calls from the United States) or 913-312-0385 (for international calls) approximately ten minutes before the scheduled start time. You will be asked for a Confirmation Code which is 5754866. 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 5754866. 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 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 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:
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, 2007 and our quarterly reports on Form 10-Q, as well as, among others, the following:
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.
© 2008, The St. Joe Company. “St. Joe,” “JOE,” 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: David Childers, 904-301-4302
dchilders@joe.com
Exhibit 99.2
Table 1
Summary
of Land-Use Entitlements
(1)
Active
JOE Residential and Mixed-Use Projects in Florida
March 31,
2008
Project |
Class.(2) |
County |
Project Acres |
Project Units(3) |
Residential
Units Closed Since Inception |
Residential Units Under Contract as of 3/31/08 |
Total Residential Units Remaining |
Remaining Commercial Entitlements (Sq. Ft.)(4) |
|||||||||
In Development: (5) | |||||||||||||||||
Artisan Park (6) | PR | Osceola | 175 | 618 | 573 | -- | 45 | -- | |||||||||
Cutter Ridge | PR | Franklin | 10 | 25 | -- | -- | 25 | -- | |||||||||
Hawks Landing | PR | Bay | 88 | 168 | 129 | -- | 39 | -- | |||||||||
Landings at Wetappo | RR | Gulf | 113 | 24 | 7 | -- | 17 | -- | |||||||||
Palmetto Trace | PR | Bay | 141 | 481 | 480 | -- | 1 | -- | |||||||||
PineWood | PR | Bay | 104 | 264 | -- | -- | 264 | -- | |||||||||
RiverCamps on Crooked Creek | RS | Bay | 1,491 | 408 | 186 | -- | 222 | -- | |||||||||
RiverSide at Chipola | RR | Calhoun | 120 | 10 | 2 | -- | 8 | -- | |||||||||
RiverTown | PR | St. Johns | 4,170 | 4,500 | 30 | -- | 4,470 | 500,000 | |||||||||
SevenShores | VAR | Manatee | 192 | 686 | -- | -- | 686 | 9,000 | |||||||||
SouthWood | VAR | Leon | 3,370 | 4,770 | 2,243 | 300 | 2,227 | 4,577,360 | |||||||||
St. Johns Golf & Country Club | PR | St. Johns | 880 | 799 | 796 | -- | 3 | -- | |||||||||
SummerCamp Beach | RS | Franklin | 762 | 499 | 80 | -- | 419 | 25,000 | |||||||||
Victoria Park | VAR | Volusia | 1,859 | 4,200 | 1,403 | 81 | 2,716 | 818,654 | |||||||||
WaterColor | RS | Walton | 499 | 1,140 | 882 | -- | 258 | 47,600 | |||||||||
WaterSound | VAR | Walton | 2,425 | 1,432 | 22 | -- | 1,410 | 457,380 | |||||||||
WaterSound Beach | RS | Walton | 256 | 511 | 440 | -- | 71 | 29,000 | |||||||||
WaterSound West Beach | RS | Walton | 62 | 199 | 33 | -- | 166 | -- | |||||||||
Wild Heron (7) | RS | Bay | 17 | 28 | 1 | -- | 27 | -- | |||||||||
WindMark Beach | RS | Gulf | 2,020 | 1,662 | 134 | -- | 1,528 | 75,000 | |||||||||
Subtotal | 18,754 | 22,424 | 7,441 | 381 | 14,602 | 6,538,994 | |||||||||||
In Pre-Development: (5) | |||||||||||||||||
Avenue A | PR | Gulf | 6 | 96 | -- | -- | 96 | -- | |||||||||
Bayview Estates | PR | Gulf | 31 | 45 | -- | -- | 45 | -- | |||||||||
Bayview Multifamily | PR | Gulf | 20 | 300 | -- | -- | 300 | -- | |||||||||
Beacon Hill | RR | Gulf | 3 | 12 | -- | -- | 12 | -- | |||||||||
Beckrich NE | PR | Bay | 15 | 70 | -- | -- | 70 | -- | |||||||||
Boggy Creek | PR | Bay | 630 | 526 | -- | -- | 526 | -- | |||||||||
Bonfire Beach | RS | Bay | 550 | 750 | -- | -- | 750 | 70,000 | |||||||||
Breakfast Point, Phase 1 | VAR | Bay | 115 | 320 | -- | -- | 320 | -- | |||||||||
Carrabelle East | PR | Franklin | 200 | 600 | -- | -- | 600 | -- | |||||||||
College Station | PR | Bay | 567 | 800 | -- | -- | 800 | -- | |||||||||
DeerPoint Cedar Grove | PR | Bay | 668 | 950 | -- | -- | 950 | -- | |||||||||
East Lake Creek | PR | Bay | 81 | 313 | -- | -- | 313 | -- | |||||||||
East Lake Powell | RS | Bay | 181 | 360 | -- | -- | 360 | 30,000 | |||||||||
Howards Creek | RR | Gulf | 8 | 33 | -- | -- | 33 | -- | |||||||||
Laguna Beach West | PR | Bay | 59 | 382 | -- | --- | 382 | -- | |||||||||
Long Avenue | PR | Gulf | 10 | 30 | -- | -- | 30 | -- | |||||||||
Palmetto Bayou | PR | Bay | 58 | 217 | -- | -- | 217 | 90,000 | |||||||||
ParkSide | PR | Bay | 48 | 480 | -- | -- | 480 | -- | |||||||||
Pier Park NE | VAR | Bay | 57 | 460 | -- | -- | 460 | 190,000 | |||||||||
Pier Park Timeshare | RS | Bay | 13 | 125 | -- | -- | 125 | -- | |||||||||
Port St. Joe Draper, Phase 1 |
PR |
Gulf | 639 | 1,200 | -- | -- | 1,200 | -- | |||||||||
Port St. Joe Draper, Phase 2 | PR | Gulf | 981 | 2,125 | -- | -- | 2,125 | 150,000 | |||||||||
Port St. Joe Town Center | VAR | Gulf | 180 | 624 | -- | -- | 624 | 500,000 | |||||||||
Powell Adams | RS | Bay | 56 | 3,131 | -- | -- | 3,131 | -- | |||||||||
Sabal Island | RS | Gulf | 45 | 18 | -- | -- | 18 | -- | |||||||||
South Walton Multifamily | PR | Walton | 40 | 212 | -- | -- | 212 | -- | |||||||||
St. James Island Granite Point | RS | Franklin | 1,000 | 2,000 | -- | -- | 2,000 | -- | |||||||||
Star Avenue North | VAR | Bay | 271 | 1,248 | -- | -- | 1,248 | 380,000 | |||||||||
The Cove | RR | Gulf | 64 | 107 | -- | -- | 107 | -- | |||||||||
Timber Island (8) | RS | Franklin | 49 | 407 | -- | -- | 407 | 14,500 | |||||||||
Topsail | VAR | Walton | 115 | 627 | -- | -- | 627 | 300,000 | |||||||||
Wavecrest | RS | Bay | 7 | 95 | -- | -- | 95 | -- | |||||||||
WestBay Corners SE | VAR | Bay | 100 | 524 | -- | -- | 524 | 50,000 | |||||||||
WestBay Corners SW | PR | Bay | 64 | 160 | -- | -- | 160 | -- | |||||||||
WestBay DSAP | VAR | Bay | 15,089 | 5,628 | -- | -- | 5,628 | 4,330,000 | |||||||||
WestBay Landing (9) | VAR | Bay | 950 | 214 | -- | -- | 214 | -- | |||||||||
Subtotal | 22,970 | 25,189 | -- | -- | 25,189 | 6,104,500 | |||||||||||
Total | 41,724 | 47,613 | 7,441 | 381 | 39,791 | 12,643,494 |
(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:
(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)
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.
(5) 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.
(6) Artisan Park is 74 percent owned by JOE.
(7) In August 2007, we acquired certain home sites within the Wild Heron community.
(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.
(9) West Bay Landing is a sub-project within WestBay DSAP.
Table 2
Proposed
JOE Residential and Mixed-Use Projects
In
the Land-Use Entitlement Process in Florida (1)
March
31, 2008
Project |
Class (2) |
County |
Project Acres |
Estimated Project Units (3) |
Estimated
Commercial Entitlements (Sq. Ft.) (3) |
||||||
Breakfast Point, Phase 2 | VAR | Bay | 1,299 | 2,780 | 635,000 | ||||||
SouthSide | VAR | Leon | 1,625 | 2,800 | 1,150,000 | ||||||
St. James Island McIntyre | RR | Franklin | 1,704 | 340 | -- | ||||||
St. James Island RiverCamps | RS | Franklin | 2,500 | 500 | -- | ||||||
Total | 7,128 | 6,420 | 1,785,000 |
(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:
(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
March
31, 2008
Project |
County |
Project Acres |
Acres Sold
Since Inception |
Acres Under Contract
As of 3/31/08 |
Total Acres Remaining |
||||||
Airport Commerce | Leon | 45 | 7 | -- | 38 | ||||||
Alf Coleman Retail | Bay | 25 | 23 | -- | 2 | ||||||
Beach Commerce | Bay | 157 | 151 | -- | 6 | ||||||
Beach Commerce II | Bay | 112 | 13 | -- | 99 | ||||||
Beckrich Office Park | Bay | 17 | 12 | -- | 5 | ||||||
Beckrich Retail | Bay | 44 | 41 | 3 | -- | ||||||
Cedar Grove Commerce | Bay | 51 | 1 | 4 | 46 | ||||||
Franklin Industrial | Franklin | 7 | -- | -- | 7 | ||||||
Glades Retail | Bay | 14 | -- | -- | 14 | ||||||
Gulf Boulevard | Bay | 78 | 27 | -- | 51 | ||||||
Hammock Creek Commerce | Gadsden | 165 | 27 | -- | 138 | ||||||
Mill Creek Commerce | Bay | 37 | -- | -- | 37 | ||||||
Nautilus Court | Bay | 11 | 7 | -- | 4 | ||||||
Port St. Joe Commerce II | Gulf | 39 | 9 | -- | 30 | ||||||
Port St. Joe Commerce III | Gulf | 50 | -- | -- | 50 | ||||||
Port St. Joe Medical | Gulf | 19 | -- | -- | 19 | ||||||
Powell Hills Retail | Bay | 44 | -- | -- | 44 | ||||||
South Walton Commerce | Walton | 38 | 17 | -- | 21 | ||||||
Total | 953 | 335 | 7 | 611 |
(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
March 31, 2008
Shares | ||||||||||||||||
Period |
Purchased |
Surrendered (1) |
Total |
Total Cost
(in millions) |
Average 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 | |||||||||||
2007 | -- | 58,338 | 58,338 | 2.1 | 35.35 | |||||||||||
First Quarter 2008 | -- | 3,721 | 3,721 | 0.1 | 38.57 | |||||||||||
Total/Weighted Average | 27,945,611 | 2,315,618 | 30,261,229 | $931.1 | $30.74 |
(1)
Shares surrendered by company executives as payment for the strike price
and taxes due on exercised stock
options
and the taxes due on the vesting of restricted stock.
Table 5
Residential
Real Estate
Sales Activity
Three
Months Ended March 31,
($
in millions)
2008 | 2007 | ||||||||||||||||||
Number of Units Closed |
Revenue |
Cost of Sales (1) |
Gross Profit |
Number of Units Closed |
Revenue |
Cost of Sales (1) |
Gross Profit |
||||||||||||
Home Sites (2) | 5 | $1.2 | $0.7 | $0.5 | 77 | $12.3 | $5.4 | $6.9 | |||||||||||
Homes (3) | 13 | 8.5 | 8.6 | (0.1) | 52 | 17.8 | 13.7 | 4.1 | |||||||||||
Total | 18 | $9.7 | $9.3 | $0.4 | 129 | $30.1 | $19.1 | $11.0 |
(1)
Cost of sales for home sites in the first quarter of 2008 consisted of
$0.6 million in direct costs, $0.1 million in selling
costs
and less than $0.1 million in indirect costs. Cost of sales for home
sites in the first quarter of 2007 consisted
of
$4.5 million in direct costs, $0.4 million in selling costs and $0.5
million in indirect costs. Cost of sales for homes
in
the first quarter of 2008 consisted of $6.2 million in direct costs,
$0.5 million in selling costs and $1.9 million in
indirect
costs. Cost of sales for homes in the first quarter of 2007 consisted of
$11.0 million in direct costs, $0.8
million
in selling costs and $1.9 million in indirect costs.
(2)
Profit has been deferred as a result of continuing development
obligations at SummerCamp Beach in 2008 and 2007
and
WaterSound West Beach in 2007. As a consequence, revenue recognition and
closings may occur in
different
periods.
(3)
Homes include single-family, multifamily and Private Residence Club
(PRC) units. Multifamily and PRC revenue is
recognized, if preconditions are met, on a percentage-of-completion
basis. As a consequence, revenue recognition
and
closings may occur in different periods. Paseos and Rivercrest, two
joint ventures 50 percent owned by JOE,
are not included; sales are complete at both of these communities.
Table 6
Residential
Real Estate
Units
Placed Under Contract
Three
Months Ended March 31,
2008 | 2007 | Percentage Change | |||||
Home Sites | 4 | 63 | (93.7) % | ||||
Homes (1) | 12 | 17 | (29.4) % | ||||
Total | 16 | 80 | (80.0) % |
(1)
Homes include single-family homes, multifamily and PRC units. Paseos and
Rivercrest,
two unconsolidated joint ventures, are not included; sales are
complete
at both of these communities.
Table 7
Residential
Real Estate
Backlog (1)
($
in millions)
March 31, 2008 | March 31, 2007 | ||||||||
Units | Revenues | Units | Revenues | ||||||
Home Sites | 81 | $3.1 | 7 |
$1.5 |
|||||
Homes | -- | -- | 21 |
12.1 |
|||||
Total | 81 | $3.1 | 28 |
$13.6 |
(1) Backlog represents units under contract but not yet closed.
Table 8
Residential
Real Estate
National
Homebuilder Summary
of
Home Site Commitments and Purchases
Activity During the
Three
Months Ended March 31, 2008
|
12/31/2007
Commitments (1) |
Closed |
Average Price
Closed Units |
Change in Commitments | 3/31/2008 Commitments | ||||||
Beazer Homes | |||||||||||
Laguna West | 232 | -- | -- | -- | 232 | ||||||
SouthWood | 20 | -- | -- | -- | 20 | ||||||
Shea Homes | |||||||||||
Victoria Park | 618 | -- | -- | -- | 618 | ||||||
David Weekley Homes | |||||||||||
RiverTown | 87 | 3 | 72,500 | -- | 84 | ||||||
SouthWood | 106 | -- | -- | -- | 106 | ||||||
American Home Builders | |||||||||||
RiverTown | 59 | -- | -- | 59 | |||||||
Cornerstone Homes | |||||||||||
RiverTown | 23 | -- | -- | -- | 23 | ||||||
Issa Homes | |||||||||||
RiverTown | 66 | -- | -- | -- | 66 | ||||||
Lakeridge Homes | |||||||||||
Victoria Park | -- | -- | -- | -- | -- | ||||||
Total | 1,211 | 3 | -- | 1,208 |
(1) Includes
agreements with minimal down payments. Homebuilders may be more willing
to delay or cancel commitments if
they
have only minimal down payments at risk.
Table 9
Residential
Real Estate Sales Activity
Three
Months Ended March 31,
($
in thousands)
2008 | 2007 | ||||||||||||||||||
Units Closed | Avg. Price | Accepted (1) | Avg. Price | Units Closed | Avg. Price | Accepted (1) | Avg. Price | ||||||||||||
Artisan Park (2) | |||||||||||||||||||
Home Sites | -- | $ | -- | -- | $ | -- | -- | $ | -- | -- | $ | -- | |||||||
Single-Family Homes | 5 | 621.2 | 5 | 621.2 | 10 | 642.4 | 13 | 579.9 | |||||||||||
Multifamily Homes | 4 | 314.3 | 4 | 314.3 | 24 | 508.3 | -- | -- | |||||||||||
Hawks Landing | |||||||||||||||||||
Home Sites | -- | -- | -- | -- | 21 | 65.5 | 19 | 64.1 | |||||||||||
Palmetto Trace | |||||||||||||||||||
Home Sites | -- | -- | -- | -- | 5 | 83.5 | 5 | 83.5 | |||||||||||
Single-Family Homes | -- | -- | -- | -- | 1 | 269.5 | 1 | 269.5 | |||||||||||
Rivercrest (2) | |||||||||||||||||||
Single-Family Homes | -- | -- | -- | -- | 12 | 231.0 | 8 | 221.4 | |||||||||||
RiverTown | |||||||||||||||||||
Home Sites | 3 | 72.5 | 3 | 72.5 | -- | -- | -- | -- | |||||||||||
SevenShores | |||||||||||||||||||
Multifamily Homes | -- | -- | -- | -- | -- | -- |
(6) |
|
1,025.4 | ||||||||||
SouthWood | |||||||||||||||||||
Home Sites | -- | -- |
(1) |
|
115.0 | 35 | 81.3 | 26 | 78.1 | ||||||||||
Single-Family Homes | -- | -- | -- | -- | 4 | 370.7 | -- | -- | |||||||||||
St. Johns G &CC | |||||||||||||||||||
Home Sites | -- | -- | -- | -- | 2 | 157.5 | -- | -- | |||||||||||
Single-Family Homes | -- | -- | -- | -- | 6 | 474.2 | 4 | 433.3 | |||||||||||
SummerCamp Beach | |||||||||||||||||||
Single-Family Homes | -- | -- | -- | -- | -- | -- |
(1) |
|
968.7 | ||||||||||
The Hammocks | |||||||||||||||||||
Single-Family Homes | -- | -- | -- | -- | 1 | 153.7 | 1 | 153.7 | |||||||||||
Victoria Park | |||||||||||||||||||
Home Sites | -- | -- | -- | -- | 1 | 299.0 | -- | -- | |||||||||||
Single-Family Homes | 1 | 214.2 | 1 | 214.2 | 3 | 310.3 | 2 | 298.0 | |||||||||||
WaterColor | |||||||||||||||||||
Home Sites | 1 | 782.0 | 1 | 782.0 | 2 | 1,362.7 | 3 | 1,117.3 | |||||||||||
Single/Multifamily Homes | 1 | 1,815.0 | 1 | 1,815.0 | 1 | 775.0 | 1 | 775.0 | |||||||||||
WaterSound | |||||||||||||||||||
Home Sites | -- | -- | -- | -- | 3 | 150.4 | 3 | 150.4 | |||||||||||
WaterSound Beach | |||||||||||||||||||
Home Sites | -- | -- | -- | -- | 1 | 1,421.4 | -- | -- | |||||||||||
Single-Family Homes | -- | -- | -- | -- | 2 | 2,286.2 | 2 | 2,172.5 | |||||||||||
WaterSound West Beach | |||||||||||||||||||
Home Sites | 1 | 177.2 | 1 | 177.2 | 4 | 293.4 | 4 | 293.4 | |||||||||||
Single-Family Homes | 1 | 837.0 | 1 | 837.0 | -- | -- | -- | -- | |||||||||||
WindMark Beach | |||||||||||||||||||
Home Sites | -- | -- | -- | -- | 3 | 194.2 | 3 | 194.2 | |||||||||||
Single-Family Homes | 1 | 1,299.5 | -- | -- | -- | -- | -- | -- | |||||||||||
Total Home Sites | 5 | $ | 235.3 | 4 | $ | 265.4 | 77 | $ | 150.7 | 63 | $ | 146.4 | |||||||
Total Single/Multifamily Homes | 13 | $ | 656.1 | 12 | $ | 602.4 | 64 | $ | 506.6 | 25 | $ | 401.0 |
(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 Rivercrest. Sales
from Rivercrest are not consolidated with the
financial
results of residential real estate.
Table 10
Commercial
Land Sales
Three
Months Ended March 31,
($
in thousands)
Number of Sales | Acres Sold | Gross Sales Price | Average Price/Acre | ||||||
2008 | |||||||||
Northwest Florida | -- | -- | $ -- | $ -- | |||||
2007 | |||||||||
Northwest Florida | 6 | 13 | $1,943 | $146.5 | |||||
Other | 3 | 19 | 3,256 | 175.3 | |||||
Total | 9 | 32 | $5,199 | $163.3 |
Table 11
Rural
Land Sales
Three Months
Ended March 31,
Number of Sales | Acres Sold |
Gross Sales Price
(in thousands) |
Average Price/Acre | ||||||
2008 | |||||||||
Woodlands | 6 | 57,435 | $91,074 | $1,586 | |||||
2007 | |||||||||
Florida Wild | 2 | 3,883 | $9,905 | $2,551 | |||||
Woodlands | 6 | 27,320 | 35,541 | 1,300 | |||||
Other | 2 | 92 | 1,230 | 13,370 | |||||
Total | 10 | 31,295 | $46,676 | $1,491 |
FINANCIAL DATA
($
in millions)
Quarterly Segment Pretax Income (Loss)
From
Continuing Operations
Mar 31,
2008 |
Dec 31,
2007 |
Sept 30,
2007 |
June 30,
2007 |
Mar 31,
2007 |
Dec 31, 2006 |
Sept 30,
2006 |
June 30,
2006 |
Mar 31,
2006 |
|||||||||||||||||||
Residential | $ | (18.7 | ) | $ | (11.4 | ) | $ | (26.2 | ) | $ | (0.8 | ) | $ | (5.4 | ) | $ | 4.3 | $ | (7.6 | ) | $ | 17.2 | $ | 10.2 | |||
Commercial | (0.9 | ) | 4.6 | 2.3 | 8.4 | 0.1 | 13.6 | 8.2 | 1.6 | 0.6 | |||||||||||||||||
Rural Land sales | 80.1 | 24.5 | 27.8 | 7.2 | 40.4 | 26.7 | 12.2 | 22.1 | 11.4 | ||||||||||||||||||
Forestry | 1.9 | (1.9 | ) | 1.3 | 0.9 | 0.1 | 1.5 | 1.0 | 0.7 | 2.0 | |||||||||||||||||
Corporate and other |
(12.9 |
) | (11.0 | ) | (15.8 | ) | (16.4 | ) | (10.2 | ) | (18.9 | ) | (16.3 | ) | (17.2 | ) | (20.3 | ) | |||||||||
Pretax income (loss) from continuing operations
|
$ |
49.5 |
$ | 4.8 | $ | (10.6 | ) | $ | (0.7 | ) | $ | 25.0 | $ | 27.2 | $ | (2.5 | ) | $ | 24.4 | $ | 3.9 |
Discontinued Operations, Net of Tax
Quarter Ended March 31, | |||||
2008 | 2007 | ||||
Income from Saussy Burbank operations, net of tax (1) | $ -- | $0.7 | |||
Income (loss) from office buildings, net of tax | -- | (0.5) | |||
Income (loss) from Sunshine State Cypress operations, net of tax | 0.1 | 0.2 | |||
Net income (loss) from discontinued operations | $0.1 | $0.4 |
(1) Quarter ended March 31, 2007 includes
a $2.2 million impairment charge to approximate fair value, less costs
to sell,
of Saussy Burbank.
Other Income (Expense)
Quarter Ended March 31, | |||||
2008 | 2007 | ||||
|
|
|
|||
Dividend and interest income |
$1.8 |
$1.3 |
|||
Interest expense |
(4.2) |
(4.7) |
|||
Other | 0.7 | 4.2 | |||
Total |
$(1.7) |
$0.8 |