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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) May 1, 2007
--------------------------------
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 May 1, 2007, The St. Joe Company (the "Company") issued a press release
announcing the Company's financial results for the quarter ended March 31, 2007.
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 May 1, 2007
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
THE ST. JOE COMPANY
Dated: May 1, 2007 By: /s/ Michael N. Regan
-----------------------
Michael N. Regan
Chief Financial Officer
Exhibit 99.1
The St. Joe Company Reports First Quarter 2007
Net Income of $19.9 Million, or $0.27 Per Share
Resort and Residential Markets Remain Weak; Commercial and Rural
Land Sales Remain Steady
Sale of JOE's Mid-Atlantic Homebuilding Unit, Saussy Burbank, is
Pending
JOE Agrees to Sell Office Building Portfolio
JACKSONVILLE, Fla.--(BUSINESS WIRE)--May 1, 2007--The St. Joe
Company (NYSE:JOE) today announced that its Net Income for the first
quarter 2007 was $19.9 million, or $0.27 per share, compared with $3.7
million, or $0.05 per share, for the first quarter of 2006. All per
share references in this release are presented on a diluted basis.
"Florida markets continue to work through the down side of the
real estate cycle and residential inventories remain high in our
markets," said JOE Chairman and CEO Peter S. Rummell. "We are selling
a limited number of resort and primary residential units. High
inventories remain an issue and sales activity is slow and sporadic.
We knew heading into 2007 that this would be a difficult year in
Florida's residential real estate markets - and it is proving to be
just that. We don't expect to see our markets returning to health
until 2008."
"Traffic in our resort and seasonal residential sales centers
seems to be made up primarily of end users, which we believe is
long-term good news," said Rummell. "End users, unlike speculators,
tend to take a longer and more deliberative approach to a real estate
purchase, particularly with the choices available in the marketplace
because of high inventories. Our national homebuilder partners
continue to take down lots, and we are pleased with the way these
relationships are performing, considering market conditions."
"Commercial interest in Northwest Florida continues to run high,"
said Britt Greene, JOE's Chief Operating Officer. "During the first
quarter, we closed nine commercial parcels, the majority located in
Northwest Florida, for a total of $5.2 million. We currently have
twelve additional sales under contract. There is interest and activity
across our full range of commercial real estate products, including
big box retail, community-based retail opportunities and JOE commerce
parks. A number of national retailers and commercial developers are
focused on Northwest Florida and looking closely at opportunities on
JOE land. Our commercial pipeline is well positioned for further
sales."
"Rural land sales remain steady," said Greene. "We completed one
large rural land sale, two conservation sales and seven smaller
transactions in the first quarter. During that period, JOE sold 31,295
acres for a total of $46.7 million with per-acre prices ranging from
approximately $1,300 to $33,300."
JOE Announced Pending Sale of Saussy Burbank
Yesterday, JOE announced that it has agreed to sell its
mid-Atlantic homebuilding operations, primarily operating under the
name Saussy Burbank, to an investor group based in Charlotte, North
Carolina that includes Charles Teal and Jim Burbank.
The estimated sales price of the pending sale, scheduled to close
later this week, is approximately $74 million consisting of
approximately $36 million in cash and $38 million in seller financing,
the majority of which is secured by home inventory and is payable over
eighteen months. The transaction is expected to generate no gain or
loss beyond an impairment loss of $2.2 million recorded in the first
quarter 2007. Proceeds from the transaction in the short-term are to
be used to retire debt.
JOE Acquired Bay Point Marina
JOE announced last week the purchase of Bay Point Marina in Bay
County near Panama City Beach, Florida from Bay Point Marina Company.
Under the terms of the agreement, JOE invested $9.8 million for the
acquisition. Subject to permitting, JOE intends to expand and improve
the marina over the next two years.
The marina, located in the heart of the Bay Point Resort, is one
of the largest and most successful marinas in Northwest Florida. This
marina inspired the creation of the nationally recognized Clean Marina
Program administered by the Florida Department of Environmental
Protection that recognizes those marinas that demonstrate a continued
commitment to protecting the water and marine life. As currently
configured, the Bay Point Marina has 136 slips and can accommodate
yachts up to 120 feet in length.
In addition to the purchase transaction, the agreement creates a
strategic alliance between JOE and Flautt-Cornerstone Bay Point, LLC,
owners of the adjacent Bay Point Resort. Under the terms of the
alliance agreement, some JOE property owners could potentially have
access to a range of amenities at the Bay Point Resort.
"Marina entitlements are some of the most difficult to obtain,"
said Rummell. "The acquisition of the Bay Point Marina allows JOE to
make available much sought-after amenities to property owners in
select JOE communities that we expect could become a significant
differentiator in the real estate marketplace. This strategic
opportunity fits well with our broader regional strategy to provide
access to Northwest Florida's extraordinary natural assets."
JOE Agrees to Sell Office Building Portfolio
Yesterday, JOE entered into a Purchase and Sale Agreement for the
disposition of its seventeen-building office portfolio, containing
approximately 2.25 million net rentable square feet, for $383 million.
The transaction is currently in a due diligence period and is expected
to close in the second quarter of 2007. Net proceeds from the
transaction will be used to pay deferred taxes and initially pay down
debt.
"Given the relatively low capitalization rates and the abundant
capital in office real estate, we felt this was the right time to
monetize our building portfolio," said Rummell. "We are pleased with
the pricing we obtained."
JOE Names New Chief Financial Officer
"In April, JOE announced that William McCalmont will join JOE as
our new Chief Financial Officer," said Rummell. "Bill brings to the
CFO position over 20 years of combined treasury, finance and CFO
experience at financial, real estate and hospitality companies. He
will be a strong addition to the JOE team, and we look forward to him
joining us on May 10, 2007."
"We are very appreciative that Mike Regan, our current Chief
Financial Officer, delayed his retirement so that we could conduct a
far-reaching and methodical search for a candidate with just the right
combination of qualifications," said Rummell. "Mike will retire later
this year after a decade of extraordinary service. His steady hand and
deep insight created substantial value for shareholders. At the same
time, he helped shape and form a JOE culture that can create much more
value for the future."
Focus on "Bringing Value Forward"
"While our Florida markets are recovering, JOE continues to build
a strong foundation for future value creation," said Rummell. "Using a
wide variety of tools, ranging from land enhancement to infrastructure
development to strategic alliances, we are focused on bringing future
value forward. We've been adjusting our business and defining a
strategy to ensure we can maximize value when our Florida markets
return to health."
"We are making progress on this front," said Rummell. "Efforts to
relocate the Panama City airport are moving forward. Our homebuilding
alliances are gaining momentum, and we are working with a range of
strategic allies to stimulate the market and accelerate value
creation. It remains unclear how long it will take to return to
supply/demand equilibrium in our housing markets, but we are focused
on doing what's necessary to ensure we are well-positioned for the
future."
Key Permit Issued for Gulf County Hospital
The U.S. Army Corps of Engineers has given its approval for Sacred
Heart Health System to build a new 25-bed hospital and medical office
building along Highway 98 in Port St. Joe on a site to be donated by
JOE. Sacred Heart estimates that groundbreaking will occur in June of
this year, with the hospital projected to open in early 2009.
"JOE is very pleased that the U.S. Army Corps of Engineers has
approved a permit clearing the way for the construction of Sacred
Heart Health System's proposed medical facility in Port St. Joe," said
Greene. "Gulf County needs and deserves quality health care. Sacred
Heart's arrival is an extremely important addition to the community,
and we believe it will positively impact real estate sales in Gulf
County."
Airport Relocation Project Continues to Make Progress
During the first quarter, The Panama City-Bay County Airport and
Industrial District (Airport Authority) continued to make progress in
its effort to relocate the airport to land that will be donated by
JOE.
In March, the Airport Authority identified Pittsburgh-based PCA
Development as the high bidder to acquire the existing airport
property and entered final contract negotiations. The Airport
Authority also selected Houston-based KBR as the program manager and
construction manager for the new airport. Final contract negotiations
are also underway with KBR. And the Airport Authority selected eight
firms as qualified to bid on site development, paving and lighting at
the new airport. Completed bids must be returned no later than May 7,
2007.
Previously JOE agreed to donate 4,000 acres to the Airport
Authority when relocation funding and all permits are in place. On
September 15, 2006, the Federal Aviation Administration (FAA) issued
its Record of Decision (ROD) approving the relocation of the Panama
City - Bay County International Airport to a site in West Bay. A
Petition for Review of the ROD has been filed against the FAA by the
Natural Resources Defense Council and other petitioners in New York
Federal Circuit Court.
Regulatory steps, including issuance of a Section 404 permit from
the U.S. Army Corps of Engineers, remain before construction of the
new airport can begin. The relocation of the airport is also dependent
on adequate funding.
Entitlements Pipeline
On March 31, 2007, JOE owned approximately 774,000 acres,
concentrated primarily in Northwest Florida. These holdings included
approximately 331,000 acres within 10 miles of the coast of the Gulf
of Mexico and approximately 396,000 acres outside the 10-mile coastal
perimeter, plus approximately 47,000 acres in southwest Georgia.
On March 31, 2007, JOE had land-use entitlements in hand or in
process for approximately 46,000 residential units and approximately
14.4 million square feet of commercial space. An additional 977 acres
was zoned for commercial uses. These entitlements are on approximately
58,000 acres.
During the first quarter 2007, the Florida Department of Community
Affairs found that the Deerpoint Cedar Grove comprehensive plan
amendment was in compliance with all applicable law. Since no appeals
were filed during the appeal period, the amendment for the Bay County
project is now final with 950 units on 668 acres.
A development order was obtained for the PineWood project which is
also located in Bay County, Florida. The development order allows JOE
to commence development of this project, which will contain
approximately 264 units on 104 acres.
See Tables 1, 2 and 3 below for additional information about our
entitlements currently in hand or in process.
Additional Updates
JOE's Net Income for the first quarter was positively impacted by
a $3.1 million income tax benefit - or $0.04 per share - related to
the expected outcome from completion of an Internal Revenue Service
audit. The completion of the audit will settle previously uncertain
tax positions related to several prior year federal tax returns and
allowed us to reverse previously reserved amounts.
Also during the first quarter, JOE received a $3.5 million pretax
insurance settlement relating to the defense of an outstanding
litigation matter, which added $0.03 per share after tax.
OUTLOOK
"As we move through 2007, we are generally experiencing market and
business conditions consistent with what we anticipated coming into
the year," said Regan. "Commercial and rural land sales remain steady.
Residential sales remain slow."
"Existing high levels of inventory are impacting the supply-demand
balance in our residential markets, which in turn is impacting JOE's
performance," said Regan. "Our markets need to work through these
existing inventories to restore balance. We have started to see a
slight increase in both new and resale residential transactions in our
markets. However, instead of reducing inventory, these transactions
seem to have motivated a new group of sellers. As a result, inventory
levels have remained high. We believe it will still take the remainder
of this year and into 2008 to restore balance."
"While sales activity remains slow, we are seeing signs of growth
in the number of visitors to the region," said Regan. "For example,
The WaterColor Inn and Resort has experienced a significant increase
in year-over-year advance reservations. More than half of the
reservations are from new visitors to the resort. Past history has
shown a correlation between guests at the resort and homebuyers in JOE
communities, so we are hopeful the increased reservation activity will
translate into greater sales activity."
"We partially attribute increased activity at The WaterColor Inn
and Resort to the critical acclaim it has received, resulting in an
increase in awareness," said Regan. "Earlier this year, The WaterColor
Inn and Resort received AAA's prestigious Four Diamond Award, making
it the only hotel in Northwest Florida to receive this rating. This
designation follows the accolades received from Travel + Leisure
magazine at the end of last year."
"We are very pleased with our commercial land sales program and
continue to see strong demand for the variety of commercial
opportunities that we have made available," said Regan. "We believe
that 2007 will continue to reflect the solid trend in commercial land
sales that has been established over the last few years. We also
remain confident in our continued rural land sales program."
DIVIDENDS AND STOCK REPURCHASE
A quarterly cash dividend of $0.16 per share of common stock was
paid on March 30 to shareholders of record at the close of business on
March 15.
On March 30, 74,370,854 JOE shares were outstanding. The number of
weighted-average diluted shares in the first quarter of 2007 was
74,257,412.
During the first quarter of 2007, JOE paid an aggregate of $11.9
million for dividends and an additional $0.2 million for surrendered
shares. The company did not purchase any of its shares on the open
market. On March 30, approximately $103.8 million remained of the
company's stock repurchase authorization. Table 4 below contains
additional information on JOE's repurchase activity since 1998.
Range of Anticipated Share Repurchase Activity
"We continue to remain committed to making distributions to our
shareholders, primarily through the dividend program, and on a
secondary level through our share repurchase program when facts and
circumstances warrant," said Regan. "Our expectation for the 2007
expenditures for dividend and share acquisition remains approximately
$50 to $100 million. We intend to maintain a consistent approach
exercising prudent capital management. As funds become available, we
will continue to consider dividend and share repurchase activity along
with other capital commitments."
SEGMENT RESULTS
RESIDENTIAL REAL ESTATE
Pretax income (loss) from continuing operations for JOE's
residential real estate segment was a loss of $(5.4) million for the
first quarter of 2007, compared to income of $10.2 million in the
first quarter of 2006.
Pretax income from the discontinued operations of Saussy Burbank
was $1.0 million for the first quarter 2007, compared to $1.9 million
in the first quarter of 2006. First quarter 2007 pretax income from
discontinued operations includes a $2.2 million impairment charge to
approximate fair value, less costs to sell, of the proposed sale of
Saussy Burbank.
In the first quarter of 2007, the residential real estate segment,
including Saussy Burbank, closed on the sales of 276 units and
generated revenues from housing and home sites of $75.5 million,
compared to 390 units and $120.5 million in revenues in the first
quarter of 2006. See Table 5 below for additional information on our
residential sales activity.
JOE accepted contracts for 145 homes and 63 home sites in the
first quarter of 2007, compared to 242 homes and 48 home sites in the
first quarter last year. The decrease in home contracts and increase
in home-site contracts reflect JOE's exit from homebuilding and our
growing relationships with homebuilders. The slowing residential
market and the build-out of some communities also impacted results.
See Table 6 below for additional information on units placed under
contract.
The backlog of home sites and homes under contract was 200 units
as of March 31, 2007, compared to 724 units as of March 31, 2006. See
Table 7 below for additional backlog information.
For the first quarter, the average margin for homes and home sites
was 15.2 percent and 56.1 percent, compared to 21.4 percent and 60.7
percent, respectively, for the same period in 2006. The contraction of
home and home site margins reflects a change of mix with more sales of
primary community lots to homebuilders and fewer sales of higher-end
resort products.
"We continue to have success expanding our homebuilding
alliances," said Greene. "During the first quarter, we had activity in
five communities. Beazer Homes closed on the purchase of 18 JOE
primary residential home sites with gross revenues of $0.9 million.
David Weekley Homes closed on the purchase of 30 home sites with gross
revenues of $2.4 million."
See Table 8 below for additional information on homebuilder
activity. Additional information on project activity is in Table 9
below.
COMMERCIAL REAL ESTATE
Pretax income from continuing operations for the commercial
segment was $0.3 million for the first quarter 2007, compared to $0.9
million in the same quarter of 2006.
Pretax (loss) from discontinued operations for the first quarter
2007 was $(1.0) million, compared to $(0.6) million in the first
quarter of 2006. See Table of Quarterly Discontinued Operations below
for net-of-tax results.
During the first quarter of 2007, JOE closed on nine commercial
transactions totaling $5.2 million. Notable transactions include two
sales at the Airport Commerce Park in Tallahassee totaling five acres
at approximately $169,000 per acre, two sales in SouthWood in
Tallahassee totaling 2.8 acres at approximately $177,000 per acre and
two sales in Bay County totaling 5.9 acres ranging from $89,000 to
$549,000 per acre.
Information on JOE's commercial land sales activity can be found
in Table 10 below. Table 11 contains information on JOE's portfolio of
office buildings.
RURAL LAND SALES
The Rural Land Sales segment had pretax income from continuing
operations of $40.4 million in the first quarter of 2007, compared to
$11.4 million in the first quarter of 2006.
In the first quarter of 2007, JOE closed on 10 rural land sales
totaling 31,295 acres for an average price of $1,500 per acre. In the
first quarter of 2006, JOE sold a total of 5,041 acres at an average
price of $3,100 per acre.
"We sold one large parcel of 26,943 acres located in Liberty and
Gadsden counties for $1,281 per acre to a buyer who approached us with
interest in the tract," said Greene. "After analysis of the physical
characteristics and location of the land, we determined that it would
take a significant amount of time and effort before we would be able
to realize a higher and better value on this particular parcel."
In a second transaction, JOE sold a 2,845 acre tract of
conservation land in Franklin County to the State of Florida for an
average price of $1,740. In a third transaction, JOE sold a 1,064 acre
tract of conservation land to The Nature Conservancy for an average
per acre price of $4,700. The remaining seven transactions were for an
average price of $4,816 per acre.
Additional information on JOE's Rural Land Sales activity can be
found in Table 12 below.
TABLES AND DATA
Table 1 summarizes JOE's Florida residential and mixed-use
projects with land-use entitlements as of March 31, 2007. This table
includes multifamily sites, which are in our commercial operations.
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
March 31, 2007
Project Project
Project Class.(2) County Acres Units (3)
- ------------------- ------------ ------------- ---------- ------------
In Development:(6)
- -------------------
Artisan Park (7) PR Osceola 175 616
Cutter Ridge PR Franklin 10 25
Hawks Landing PR Bay 88 168
Landings at Wetappo RR Gulf 113 24
Palmetto Trace PR Bay 141 481
Paseos (7) PR Palm Beach 175 325
PineWood PR Bay 104 264
RiverCamps on
Crooked Creek RS Bay 1,491 408
Rivercrest (7) PR Hillsborough 413 1,382
RiverSide at
Chipola RR Calhoun 120 10
RiverTown PR St. Johns 4,170 4,500
SevenShores (Perico
Island) RS Manatee 192 686
SouthWood VAR Leon 3,370 4,770
St. Johns Golf &
Country Club PR St. Johns 880 799
SummerCamp RS Franklin 762 499
The Hammocks PR Bay 133 457
Victoria Park PR Volusia 1,859 4,200
WaterColor RS Walton 499 1,140
WaterSound VAR Walton 2,425 1,432
WaterSound Beach RS Walton 256 511
WaterSound West
Beach RS Walton 62 199
WindMark Beach RS Gulf 2,020 1,662
---------- ------------
Subtotal 19,458 24,558
---------- ------------
In Pre-Development:
(6)
- -------------------
Avenue A PR Gulf 6 96
Bayview Estates PR Gulf 31 45
Bayview Multifamily PR Gulf 20 300
Beacon Hill RR Gulf 3 12
Beckrich NE PR Bay 15 70
Boggy Creek PR Bay 630 526
Bonfire Beach RS Bay 550 750
College Station PR Bay 567 800
DeerPoint Cedar
Grove PR Bay 668 950
East Lake Creek PR Bay 81 313
East Lake Powell RS Bay 181 360
Hills Road RS Bay 30 356
Howards Creek RR Gulf 8 33
Laguna Beach West PR Bay 59 382
Long Avenue PR Gulf 10 30
Palmetto Bayou PR Bay 58 217
ParkSide PR Bay 48 480
Pier Park NE VAR Bay 57 460
Pier Park Timeshare RS Bay 13 125
Port St. Joe Town
Center VAR Gulf 180 624
Powell Adams RS Bay 32 1,425
RiverCamps on Sandy
Creek RS Bay 6,500 624
Sabal Island RS Gulf 45 18
The Cove RR Gulf 57 81
Timber Island (8) RS Franklin 49 407
Topsail VAR Walton 115 627
Wavecrest RS Bay 7 95
WestBay Corners SE VAR Bay 100 524
WestBay Corners SW PR Bay 64 160
WestBay DSAP VAR Bay 15,089 5,628
WestBay Landing VAR Bay 950 214
WhiteFence Farms,
Red Hills RR Leon 373 61
---------- ------------
Subtotal 26,596 16,793
---------- ------------
Total 46,054 41,351
========== ============
Residential Residential Remaining
Units Units Under Total Commercial
Closed Contract Residential Entitlements
Since as of Units (Sq. Ft.)
Project Inception 3/31/07(4) Remaining(4) (5)
- ------------------- ----------- ----------- ------------- ------------
In Development:(6)
- -------------------
Artisan Park (7) 532 8 76 --
Cutter Ridge -- -- 25 --
Hawks Landing 80 -- 88 --
Landings at Wetappo 7 -- 17 --
Palmetto Trace 466 -- 15 --
Paseos (7) 322 -- 3 --
PineWood -- -- 264 --
RiverCamps on
Crooked Creek 182 -- 226 --
Rivercrest (7) 1,377 1 4 --
RiverSide at
Chipola 2 -- 8 --
RiverTown -- -- 4,500 500,000
SevenShores (Perico
Island) -- 3 683 9,000
SouthWood 2,181 6 2,583 4,697,360
St. Johns Golf &
Country Club 793 1 5 --
SummerCamp 80 -- 419 25,000
The Hammocks 454 -- 3 --
Victoria Park 1,298 1 2,901 854,254
WaterColor 873 1 266 47,600
WaterSound 18 -- 1,414 457,380
WaterSound Beach 422 8 81 29,000
WaterSound West
Beach 17 -- 182 --
WindMark Beach 130 -- 1,532 75,000
----------- ----------- ------------- ------------
Subtotal 9,234 29 15,295 6,694,594
----------- ----------- ------------- ------------
In Pre-Development:
(6)
- -------------------
Avenue A -- -- 96 --
Bayview Estates -- -- 45 --
Bayview Multifamily -- -- 300 --
Beacon Hill -- -- 12 --
Beckrich NE -- -- 70 --
Boggy Creek -- -- 526 --
Bonfire Beach -- -- 750 70,000
College Station -- -- 800 --
DeerPoint Cedar
Grove -- -- 950 --
East Lake Creek -- -- 313 --
East Lake Powell -- -- 360 30,000
Hills Road -- -- 356 --
Howards Creek -- -- 33 --
Laguna Beach West -- -- 382 --
Long Avenue -- -- 30 --
Palmetto Bayou -- -- 217 90,000
ParkSide -- -- 480 --
Pier Park NE -- -- 460 190,000
Pier Park Timeshare -- -- 125 --
Port St. Joe Town
Center -- -- 624 500,000
Powell Adams -- -- 1,425 --
RiverCamps on Sandy
Creek -- -- 624 --
Sabal Island -- -- 18 --
The Cove -- -- 81 --
Timber Island (8) -- -- 407 14,500
Topsail -- -- 627 300,000
Wavecrest -- -- 95 --
WestBay Corners SE -- -- 524 50,000
WestBay Corners SW -- -- 160 --
WestBay DSAP -- -- 5,628 4,330,000
WestBay Landing -- -- 214 --
WhiteFence Farms,
Red Hills -- -- 61 --
----------- ----------- ------------- ------------
Subtotal -- -- 16,793 5,574,500
----------- ----------- ------------- ------------
Total 9,234 29 32,088 12,269,094
=========== =========== ============= ============
(1) A project is deemed land-use entitled when all major discretionary
governmental land-use approvals have been received. Some of these
projects may require additional permits for development and/or build-
out; they also may be subject to legal challenge.
(2) Current JOE land classifications:
- -- PR - Primary residential.
- -- RS - Resort and seasonal residential, which includes RiverCamps.
- -- RR - Rural residential, which includes WhiteFence Farms, Homesteads
and other rural residential products.
- -- VAR - Includes multiple classifications. For example, a project may
have substantial commercial and residential acres.
(3) Project units represent the maximum number of units entitled or
currently expected at full build-out. The actual number of units or
square feet to be constructed at full build-out may be lower than the
number entitled or currently expected.
(4) Excludes our Mid-Atlantic region that includes activity in North
and South Carolina where we are primarily engaged in homebuilding,
and not obtaining entitlements.
(5) Represents the remaining square feet with land-use entitlements as
designated in a development order or expected given the existing
property land use or zoning and present plans. Commercial
entitlements include retail, office and industrial uses. Industrial
uses total 6,128,381 square feet including SouthWood, RiverTown and
the West Bay DSAP.
(6) A project is "in development" when construction on the project has
commenced. A project in "pre-development" has land-use entitlements
but is still under internal evaluation or requires one or more
additional permits prior to the commencement of construction.
(7) Artisan Park is 74 percent owned by JOE. Paseos and Rivercrest are
each 50 percent owned by JOE.
(8) Timber Island entitlements include seven residential units and 400
units for hotel or other transient uses (including units held with
fractional ownership such as private residence clubs) and include 480
wet/dry marina slips.
Table 2
Proposed JOE Residential and Mixed-Use Projects
In the Land-Use Entitlement Process in Florida (1)
March 31, 2007
Estimated
Estimated Commercial
Project Entitlements
Project Units (Sq. Ft.)
Project Class (2) County Acres (3) (3)
- -------------------- --------- -------- ------- --------- ------------
Carrabelle East PR Franklin 200 600 --
Country Walk RR Bay 1,300 125 --
Panama City Beach
Mixed Use VAR Bay 1,414 3,100 635,000
Port St. Joe Draper,
Phase 1 PR Gulf 639 1,200 --
Port St. Joe Draper,
Phase 2 PR Gulf 981 2,125 --
SouthSide VAR Leon 1,625 2,800 1,150,000
South Walton
Multifamily PR Walton 40 212 --
Star Avenue North VAR Bay 271 1,248 380,000
St. James Island
McIntyre RR Franklin 1,704 340 --
St. James Island
RiverCamps RS Franklin 2,500 500 --
St. James Island
Granite Point RS Franklin 1,000 2,000 --
The Cove, Phase 3 RR Gulf 7 26 --
------- --------- ------------
Total 11,681 14,276 2,165,000
======= ========= ============
(1) A project is deemed to be in the land-use entitlement process when
customary steps necessary for the preparation and submittal of an
application, such as conducting pre-application meetings or similar
discussions with governmental officials, have commenced and/or an
application has been filed. All projects listed have significant
entitlement steps remaining that could affect their timing, scale and
viability. There can be no assurance that these entitlements will
ultimately be received.
(2) Current JOE land classifications:
- -- PR - Primary residential.
- -- RS - Resort and seasonal residential, which includes RiverCamps.
- -- RR - Rural residential, which includes WhiteFence Farms, Homesteads
and other rural residential products.
- -- VAR - Includes multiple classifications. For example, a project may
have substantial commercial and residential acres.
(3) The actual number of units or square feet to be constructed at
full build-out may be lower than the number ultimately entitled.
Table 3
Summary of Additional Commercial Land-Use Entitlements (1)
(Commercial Projects Not Included in Tables 1 and 2 Above)
Active JOE Florida Commercial Projects
March 31, 2007
Acres
Under
Acres Sold Contract Total
Project Since As of Acres
Project County Acres Inception 3/31/07 Remaining
- --------------------- -------- ------- ---------- --------- ----------
Airport Commerce Leon 45 5 1 39
Airport Road Franklin 13 -- -- 13
Alf Coleman Retail Bay 25 17 -- 8
Avery St. Retail Bay 10 10 -- --
Beach Commerce Bay 157 149 2 6
Beach Commerce II Bay 112 11 4 97
Beckrich Office Park Bay 16 12 2 2
Beckrich Retail Bay 43 19 18 6
Cedar Grove Commerce Bay 51 -- -- 51
Franklin Industrial Franklin 7 -- -- 7
Glades Retail Bay 14 -- -- 14
Gulf Boulevard Bay 76 21 -- 55
Hammock Creek
Commerce Gadsden 165 27 -- 138
Mill Creek Commerce Bay 37 -- -- 37
Nautilus Court Bay 11 4 -- 7
Port St. Joe Commerce
II Gulf 39 9 -- 30
Port St. Joe Commerce
III Gulf 54 -- -- 54
Port St. Joe Medical Gulf 19 -- -- 19
Powell Hills Retail Bay 44 -- 44 --
South Walton Commerce Walton 39 18 -- 21
------- ---------- --------- ----------
Total 977 302 71 604
======= ========== ========= ==========
(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, 2007
Shares
-----------------------------------
Total Cost
Surrendered (in Average
Period Purchased (1) Total millions) Price
- --------------- ----------- ----------- ----------- ---------- -------
1998 2,574,200 11,890 2,586,090 $55.5 $21.41
1999 2,843,200 11,890 2,855,090 69.5 24.31
2000 3,517,066 -- 3,517,066 80.2 22.78
2001 7,071,300 58,550 7,129,850 176.0 24.67
2002 5,169,906 256,729 5,426,635 157.6 29.03
2003 2,555,174 812,802 3,367,976 102.9 30.55
2004 1,561,565 884,633 2,446,198 105.0 42.90
2005 1,705,000 68,648 1,773,648 124.8 70.33
2006 948,200 148,417 1,096,617 57.3 52.22
1st Quarter
2007 -- 4,179 4,179 0.2 55.13
----------- ----------- ----------- ---------- -------
Total/Weighted
Average 27,945,611 2,257,738 30,203,349 $929.1 $30.74
=========== =========== =========== ========== =======
(1) Shares surrendered by company executives as payment for the strike
price and taxes due on exercised stock options and the vesting of
restricted stock.
Table 5
Residential Real Estate
Sales Activity
Three Months Ended March 31,
($ in millions)
2007 2006
------------------------------ ------------------------------
Number Cost Number Cost
of of of of
Units Sales Gross Units Sales Gross
Closed Revenue (1) Profit Closed Revenue (1) Profit
------- ------- ------ ------- ------- ------- ------ -------
Home
Sites
(2) 77 $12.3 $5.4 $6.9 52 $8.4 $3.3 $5.1
Homes (3)
(4) 199 63.2 53.6 9.6 338 112.1 88.1 24.0
------- ------- ------ ------- ------- ------- ------ -------
Total 276 $75.5 $69.0 $16.5 390 $120.5 $91.5 $29.1
======= ======= ====== ======= ======= ======= ====== =======
(1) 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 home
sites in the first quarter of 2006 consisted of $2.8 million in
direct costs, $0.3 million in selling costs and $0.2 million in
indirect costs. Cost of sales for homes in the first quarter of 2007
consisted of $45.5 million in direct costs, $3.2 million in selling
costs and $4.9 million in indirect costs. Cost of sales for homes in
the first quarter of 2006 consisted of $74.7 million in direct costs,
$5.7 million in selling costs and $7.7 million in indirect costs.
(2) Profit has been deferred as a result of continuing development
obligations at SummerCamp and WaterSound West Beach. As a
consequence, revenue recognition and closings may occur in different
periods.
(3) Homes include single-family, multifamily and Private Residence
Club (PRC) units. Multifamily and PRC revenue is recognized, if
preconditions are met, on a percentage-of-completion basis. As a
consequence, revenue recognition and closings may occur in different
periods. Percentage-of-completion accounting was utilized at Artisan
Park in the first quarter of 2007. Paseos and Rivercrest, two
unconsolidated joint ventures, are not included. Sales are
substantially complete at both of these communities.
(4) Includes 147 home closings with revenues of $45.2 million and
gross profit of $5.4 million in the first quarter of 2007,
attributable to Saussy Burbank, compared to 146 home closings with
revenues of $38.5 million and gross profit of $4.4 million in the
first quarter of 2006.
Table 6
Residential Real Estate
Units Placed Under Contract
Three Months Ended March 31,
2007 2006 Percentage Change
--------------------------------------
Home Sites 63 48 31.3 %
Homes (1) (2) 145 242 (40.1)
--------------------------------------
Total (1) 208 290 (28.3) %
======================================
(1) Homes include single-family homes, multifamily and PRC units.
Paseos and Rivercrest, two unconsolidated joint ventures, are not
included. Sales are substantially complete at both of these
communities.
(2) 128 contracts accepted by Saussy Burbank for the three months
ended March 31, 2007 and 167 contracts accept for the three months
ended March 31, 2006.
Table 7
Residential Real Estate
Backlog (1) (2)
($ in millions)
March 31, 2007 March 31, 2006
------------------ -----------------
Units Revenues Units Revenues
--------- -------- -------- --------
Home Sites 7 $1.5 10 $1.6
Homes (3) (4) 193 59.4 714 261.7
--------- -------- -------- --------
Total 200 $60.9 724 $263.3
========= ======== ======== ========
(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 $0.2 million for 1
unit at the end of the first quarter of 2007, compared to $74.8
million for 281 units at the end of the first quarter of 2006.
(2) Excludes national homebuilder units committed but not under
contract that are included in Table 8.
(3) As of March 31, 2007, there were no units subject to percentage-
of-completion accounting in the homes backlog. As of March 31, 2006,
there were 139 units subject to percentage-of completion accounting
with related revenue of $62.1 million (of which $46.9 million had
previously been recognized in the financial statements).
(4) Includes 172 contracts and $47.3 million of backlog at Saussy
Burbank as of March 31, 2007, compared to 238 contracts and $71.0
million as of March 31, 2006. Contracts totaling 133 and $36.3
million are anticipated to close after the current expected sale
date.
Table 8
Residential Real Estate
National Homebuilder Summary
of Home Site Commitments and Purchases
Activity During the
Three Months Ended March 31, 2007
Total Units Total Units Average Price
Committed (1) Closed 3/31/07 Closed Units
-------------- -------------- -------------
Beazer Homes
Beckrich Point -- -- N/A
Laguna West -- -- N/A
SouthWood 18 18 $49,288
Victoria Park -- -- N/A
David Weekley Homes
Hawks Landing 15 15 $60,900
Palmetto Trace 5 5 $83,460
ParkPlace -- -- N/A
RiverCamps on Crooked
Creek -- -- N/A
SouthWood -- 10 $110,060
Victoria Park -- -- N/A
WaterSound -- -- N/A
-------------- --------------
Total 38 48
============== ==============
(1) Includes amounts under contract or committed.
April 1, 2006 through March 31, 2007
Total Units Total Units Average Remaining
Committed Closed Price Units
(1) 3/31/07 Closed Units To Close (2)
----------- ------------- ------------ --------------
Beazer Homes
Beckrich Point 70 -- N/A 70
Laguna West 350 -- N/A 350
SouthWood 181 125 $50,038 56
Victoria Park 179 179 $66,369 --
David Weekley
Homes
Hawks Landing 114 25 $97,440 89
Palmetto Trace 61 53 $85,562 8
ParkPlace 70 -- N/A 70
RiverCamps on
Crooked Creek 3 3 $209,667 --
SouthWood 140 10 110,060 130
Victoria Park 72 72 $102,444 --
WaterSound 7 7 $144,248 --
----------- ------------- --------------
Total 1,247 474 773
=========== ============= ==============
(1) Includes amounts under contract or committed.
(2) Units are excluded from data on Tables 6 and 7.
Table 9
Residential Real Estate Sales Activity
Three Months Ended March 31,
($ in thousands)
2007
------------------------------------------------
Units Closed Avg. Price Accepted (1) Avg. Price
------------ ----------- ------------ ----------
Artisan Park (2)
Home Sites 0 $0.0 0 $0.0
Single-Family Homes 10 642.4 13 579.9
Multifamily Homes 24 508.3 0 0.0
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
Paseos (2)
Single-Family Homes 0 0.0 0 0.0
RiverCamps on Crooked
Creek
Home Sites 0 0.0 0 0.0
Rivercrest (2)
Single-Family Homes 12 231.0 8 221.4
Saussy Burbank
Single-Family Homes 147 308.8 128 285.7
SevenShores
Multifamily Homes 0 0.0 (6) 1,025.4
SouthWood
Home Sites 35 81.3 26 78.1
Single-Family Homes 4 370.7 0 0.0
St. Johns G & CC
Home Sites 2 157.5 0 0.0
Single-Family Homes 6 474.2 4 433.3
SummerCamp
Home Sites 0 0.0 0 0.0
Single-Family Homes 0 0.0 (1) 968.7
The Hammocks
Home Sites 0 0.0 0 0.0
Single-Family Homes 1 153.7 1 153.7
Victoria Park
Home Sites 1 299.0 0 0.0
Single-Family Homes 3 310.3 2 298.0
WaterColor
Home Site 2 1,362.7 3 1,117.3
Single/Multifamily
Homes 1 775.0 1 775.0
PRC Shares 0 0.0 0 0.0
WaterSound
Home Sites 3 150.4 3 150.4
WaterSound Beach
Home Sites 1 1,421.4 0 0.0
Single-Family Homes 2 2,286.2 2 2,172.5
PRC Shares 0 0.0 0 0.0
WaterSound West Beach
Home Sites 4 293.4 4 293.4
Single-Family Homes 0 0.0 0 0.0
WindMark Beach
Home Sites 3 194.2 3 194.2
------------ ----------- ------------ ----------
Total 288 $310.5 216 $258.4
============ =========== ============ ==========
2006
-------------------------------------------------
Units Closed Avg. Price Accepted (1) Avg. Price
------------ ----------- ------------ -----------
Artisan Park (2)
Home Sites 1 $495.0 1 $495.0
Single-Family Homes 20 675.8 13 797.5
Multifamily Homes 16 303.3 4 535.8
Hawks Landing
Home Sites 23 71.7 23 71.7
Palmetto Trace
Home Sites 8 76.5 8 76.5
Single-Family Homes 20 298.9 6 315.7
Paseos (2)
Single-Family Homes 22 527.7 0 0.0
RiverCamps on Crooked
Creek
Home Sites 3 241.7 1 240.0
Rivercrest (2)
Single-Family Homes 110 196.8 (1) 27.4
Saussy Burbank
Single-Family Homes 146 263.8 167 304.9
SevenShores
Multifamily Homes 0 0.0 0 0.0
SouthWood
Home Sites 5 96.0 3 85.0
Single-Family Homes 46 300.1 18 304.4
St. Johns G & CC
Home Sites 6 146.3 6 146.3
Single-Family Homes 14 491.0 10 557.8
SummerCamp
Home Sites 1 354.0 2 371.5
Single-Family Homes 0 0.0 0 0.0
The Hammocks
Home Sites 0 0.0 0 0.0
Single-Family Homes 20 148.2 0 0.0
Victoria Park
Home Sites 3 237.3 3 232.3
Single-Family Homes 51 290.2 21 344.7
WaterColor
Home Site 1 315.0 1 315.0
Single/Multifamily
Homes 2 940.0 0 0.0
PRC Shares 0 0.0 0 0.0
WaterSound
Home Sites 0 0.0 0 0.0
WaterSound Beach
Home Sites 0 0.0 0 0.0
Single-Family Homes 3 971.7 3 971.7
PRC Shares 0 0.0 0 0.0
WaterSound West Beach
Home Sites 1 736.4 0 0.0
Single-Family Homes 0 0.0 0 0.0
WindMark Beach
Home Sites 0 0.0 0 0.0
------------ ----------- ------------ -----------
Total 522 $280.3 289 $319.7
============ =========== ============ ===========
(1) Contracts accepted during the quarter. Contracts accepted and
closed in the same quarter are also included as units closed. Average
prices shown reflect variations in the product mix across time
periods as well as price changes for similar product.
(2) JOE owns 74 percent of Artisan Park and 50 percent of each of
Paseos and Rivercrest. Sales from Paseos and Rivercrest are not
consolidated with the financial results of residential real estate.
Table 10
Commercial Land Sales
Three Months Ended March 31,
Number of Gross Sales Average
Sales Acres Sold Price Price/Acre
----------- ---------- -------------- --------------
(in thousands) (in thousands)
2007
Northwest Florida 6 13 $1,943 $149
Other 3 19 3,256 171
----------- ---------- -------------- --------------
Total 9 32 $5,199 $162
=========== ========== ============== ==============
2006
Northwest Florida 6 14 $2,065 $148
Table 11
Investment Portfolio of Office Buildings
March 31, 2007
Number of Net Rentable Leased
Location Properties Square Feet Percentage
- --------------- ------------------ ------------------ ----------------
Florida 6 609,000 94 %
Georgia 8 1,289,000 76
Virginia 3 354,000 97
------------------ ------------------ ----------------
Total 17 2,252,000 84 %
================== ================== ================
Table 12
Rural Land Sales
Three Months Ended March 31,
Gross Sales Average
Price Price/Acre
Number of Sales Acres Sold (in thousands) (in thousands)
--------------- ----------- -------------- --------------
2007
FloridaWild 2 3,883 $9,905 $2.6
Woodlands 6 27,320 35,541 1.3
Other 2 92 1,230 13.4
--------------- ----------- -------------- --------------
Total 10 31,295 $46,676 $1.5
=============== =========== ============== ==============
2006
Woodlands 22 4,882 11,998 2.5
Other 4 159 3,645 22.9
--------------- ----------- -------------- --------------
Total 26 5,041 $15,643 $3.1
=============== =========== ============== ==============
FINANCIAL DATA
($ in millions except per share amounts)
Summary Balance Sheet
March 31, 2007 December 31, 2006
----------------- -----------------
Assets
Investment in real estate $889.4 $1,213.5
Cash and cash equivalents 32.4 36.9
Accounts receivable 17.5 25.8
Prepaid pension asset 101.8 100.9
Property, plant and equipment, net 40.6 44.6
Other assets 83.1 138.7
Assets held for sale 393.3 --
----------------- -----------------
Total assets $1,558.1 $1,560.4
================= =================
Liabilities and Stockholders' Equity
Debt $604.7 $627.1
Accounts payable, accrued
liabilities 177.0 250.6
Deferred income taxes 167.2 211.1
Liabilities of assets held for sale 127.1 --
----------------- -----------------
Total liabilities 1,076.0 1,088.8
Minority interest 7.7 10.5
Total stockholders' equity 474.4 461.1
----------------- -----------------
Total liabilities and stockholders'
equity $1,558.1 $1,560.4
================= =================
Debt Schedule
March 31, 2007 December 31, 2006
----------------- -----------------
Revolving debt facility $210.0 $60.0
Senior notes 240.0 307.0
Bridge loan 100.0 100.0
Acquisition and other debt 4.0 4.0
Other collateralized/specific asset
related debt 50.7 156.1
----------------- -----------------
Total debt $604.7 $627.1
================= =================
Consolidated Quarterly Comparisons
Quarter Ended March 31,
-----------------------
2007 2006
----------- -----------
Revenues:
Real estate sales $82.4 $100.5
Rental revenue 0.1 0.1
Timber sales 7.0 8.5
Other revenues 6.8 7.9
----------- -----------
Total revenues 96.3 117.0
----------- -----------
Expenses:
Cost of real estate sales 26.5 59.6
Cost of rental revenue 0.1 --
Cost of timber sales 5.9 5.9
Cost of other revenues 8.5 8.3
Other operating expenses 15.0 17.3
Corporate expense, net 7.6 15.7
Restructuring charges 3.2 --
Depreciation and amortization 4.5 4.3
----------- -----------
Total expenses 71.3 111.1
Operating profit 25.0 5.9
Other income (expense) 0.7 (1.7)
----------- -----------
Pretax income from continuing operations 25.7 4.2
Income tax expense (6.5) (1.9)
Minority interest expense (0.3) (2.1)
Equity in income of unconsolidated affiliates 0.9 2.7
Discontinued operations, net of tax 0.1 0.8
----------- -----------
Net income $19.9 $3.7
=========== ===========
Net income per diluted share $0.27 $0.5
=========== ===========
Weighted average diluted shares outstanding 74,257,412 74,943,110
=========== ===========
Quarterly Revenues by Segment
Quarter Ended March 31,
-----------------------
2007 2006
----------- -----------
Residential
Real estate sales $30.2 $82.0
Rental revenue -- --
Other revenues 6.8 7.7
----------- -----------
Total Residential 37.0 89.7
----------- -----------
Commercial real estate
Real estate sales 5.5 2.8
Rental revenue 0.1 0.1
Other revenues -- 0.2
----------- -----------
Total Commercial real estate 5.6 3.1
----------- -----------
Rural Land real estate sales 46.7 15.7
----------- -----------
Forestry sales 7.0 8.5
----------- -----------
Total revenues $96.3 $117.0
=========== ===========
Quarterly Segment Pretax Income
From Continuing Operations
3/31 12/31 9/30 6/30 3/31 12/31 9/30 6/30 3/31
2007(1)2006(1)2006(1) 2006 2006 2005 2005 2005 2005
---------------------------------------------------------
Residential
Real Estate $(5.4) $4.3 $(7.6)$17.2 $10.2 $40.6 $26.9 $55.0 $24.9
Commercial
Real Estate 0.3 13.9 8.6 1.9 0.9 5.2 13.8 2.6 1.1
Rural Land
Sales 40.4 26.7 12.2 22.1 11.4 19.1 11.7 10.1 9.7
Forestry 0.4 -- 1.4 0.9 2.0 0.4 0.6 1.6 2.0
Corporate and
other (10.0) (18.9) (16.3)(17.3)(20.3)(15.0)(16.1)(15.3)(13.8)
---------------------------------------------------------
Pretax income
from
continuing
operations $25.7 $26.0 $(1.7)$24.8 $4.2 $50.3 $36.9 $54.0 $23.9
=========================================================
(1) Includes restructuring charges. See Restructuring Charges Pretax
by Segment table below.
Restructuring Charges Pretax by Segment
Quarter Ended March 31, 2007
Rural Land
Residential Commercial Sales Other Total
----------- ---------- ----------- ------ ------
Write-off of
capitalized
homebuilding costs $0.5 $-- $-- $-- $0.5
One-time termination
benefits to employees 0.8 0.1 1.3 0.5 2.7
----------- ---------- ----------- ------ ------
Total restructuring
charges, pretax $1.3 $0.1 $1.3 $0.5 $3.2
=========== ========== =========== ====== ======
Discontinued Operations, Net of Tax
Quarter Ended March 31,
-----------------------
2007 2006
----------- -----------
Income from Saussy Burbank, net of tax (1) $0.7 $1.2
Loss from office buildings, net of tax (0.6) (0.4)
----------- -----------
Net income from discontinued operations $0.1 $0.8
=========== ===========
(1) Includes a $2.2 million impairment charge to approximate fair
value, less costs to sell, of the proposed sale of Saussy Burbank.
Other Income (Expense)
Quarter Ended March 31,
-----------------------
2007 2006
----------- -----------
Dividend and interest income $1.3 $1.8
Interest expense (4.7) (1.8)
Other 4.1 (1) (1.7)
----------- -----------
Total $0.7 $(1.7)
=========== ===========
(1) Includes a $3.5 million insurance settlement received in the first
quarter of 2007.
Equity in Income of Unconsolidated Affiliates
Quarter Ended March 31,
-----------------------
2007 2006
----------- -----------
Residential Real Estate $0.9 $2.7
Reported results are preliminary and not final until the filing of
our Form 10-Q 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 March 31, 2007, and to discuss
our outlook on Tuesday, May 1, 2007, at 10:30 a.m. (EDT).
To participate in the call, please phone 866-409-1555 (for
domestic calls from the United States) or 888-203-1235 (for
international calls) approximately ten minutes before the scheduled
start time. You will be asked for a Confirmation Code which is:
3867431. 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 3867431. 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,
particularly in the Outlook Section, pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Any statements in this release that are not historical facts are
forward-looking statements. You can find many of these forward-looking
statements by looking for words such as "intend", "anticipate",
"believe", "estimate", "expect", "plan", "should", "forecast" or
similar expressions. In particular, forward-looking statements
include, among others, statements about the following:
-- future operating performance, revenues, earnings, cash flows,
and short and long-term revenue and earnings growth rates;
-- future residential and commercial entitlements;
-- expected development timetables and projected timing for sales
or closings of homes or home sites in a community;
-- development approvals and the ability to obtain such
approvals, including possible legal challenges;
-- the anticipated price ranges of developments;
-- the number of units or commercial square footage that can be
supported upon full build out of a development;
-- the number, price and timing of anticipated land or building
sales or acquisitions;
-- estimated land holdings for a particular use within a specific
time frame;
-- absorption rates and expected gains on land and home site
sales;
-- the levels of resale inventory in our developments and the
regions in which they are located;
-- the development of relationships with strategic partners,
including homebuilders;
-- the pace at which we release new products for sale;
-- comparisons to historical projects;
-- the amount of dividends we pay; and
-- the number of shares of company stock which may be purchased
under the company's existing or future share-repurchase
program.
Forward-looking statements are not guarantees of future
performance. You are cautioned not to place undue reliance on any of
these forward-looking statements. These statements are made as of the
date hereof based on our current expectations, and we undertake no
obligation to update the information contained in this release. New
information, future events or risks may cause the forward-looking
events we discuss in this earnings release not to occur.
Forward-looking statements are subject to numerous assumptions,
risks and uncertainties. Factors that could cause actual results to
differ materially from those contemplated by a forward-looking
statement include the risk factors described in our annual report on
Form 10-K for the year ended December 31, 2006 as well as, among
others, the following:
-- economic conditions, particularly in Northwest Florida,
Florida as a whole and key areas of the southeastern United
States that serve as feeder markets to our Northwest Florida
operations;
-- changes in the demographics affecting projected population
growth in Florida, including the demographic migration of Baby
Boomers;
-- changes in perceptions or conditions in the national real
estate market or the real estate markets in the states and
regions in which we operate;
-- the termination of sales contracts or letters of intent due
to, among other factors, the failure of one or more closing
conditions or market changes;
-- whether our developments receive all land-use entitlements or
other permits necessary for development and/or full build-out
or are subject to legal challenge;
-- local conditions such as the supply of homes and home sites
and residential or resort properties or a change in the demand
for real estate in an area;
-- timing and costs associated with property developments and
rentals;
-- the pace of commercial development in Northwest Florida;
-- competition from other real estate developers;
-- changes in pricing of our products and changes in the related
profit margins;
-- changes in operating costs, including real estate taxes and
the cost of construction materials;
-- changes in the amount or timing of federal and state income
tax liabilities resulting from either a change in our
application of tax laws, an adverse determination by a taxing
authority or court, or legislative changes to existing laws;
-- changes in interest rates and the performance of the financial
markets;
-- changes in market rental rates for our commercial and resort
properties;
-- changes in the prices or availability of wood products;
-- the pace of development of public infrastructure, particularly
in Northwest Florida, including a proposed new airport in Bay
County, which is dependent on various regulatory approvals and
permits and the availability of adequate funding;
-- potential liability under environmental laws or other laws or
regulations;
-- changes in laws, regulations or the regulatory environment
affecting the development of real estate;
-- fluctuations in the size and number of transactions from
period to period;
-- natural disasters, including hurricanes and other severe
weather conditions, and the impact on current and future
demand for our products in Florida;
-- the prices and availability of labor and building materials;
-- changes in insurance rates and deductibles for property in
Florida, particularly in coastal areas;
-- changes in gasoline prices; and
-- acts of war, terrorism or other geopolitical events.
The foregoing list is not exhaustive and should be read in
conjunction with other cautionary statements contained in our periodic
and other filings with the Securities and Exchange Commission.
(C) 2007, The St. Joe Company. "St. Joe," "JOE," "Artisan Park,"
"Paseos," "Pier Park," "RiverCamps," "RiverTown," "SouthWood,"
"SummerCamp," "Victoria Park," "WaterColor," "WaterSound," "WhiteFence
Farms," "WindMark," and the "Taking Flight" design are service marks
of The St. Joe Company.
CONTACT: The St. Joe Company, Jacksonville
JOE Media Contact: Jerry M. Ray, 904-301-4430
jray@joe.com
or
JOE Investor Contact: Mike Daly, 904-301-4302
mdaly@joe.com