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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)

February 19, 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 February 19, 2008, The St. Joe Company (the "Company") issued a press release announcing the Company’s financial results for the quarter and year ended December 31, 2007. 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 and year ended December 31, 2007.

ITEM 9.01.  FINANCIAL STATEMENTS AND EXHIBITS

(c) Exhibits

99.1 Press Release dated February 19, 2008

99.2 Additional information tables for the quarter and year ended December 31, 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

 

 

Date: February 19, 2008 By:

/s/ William S. McCalmont

 

William S. McCalmont

Chief Financial Officer

Exhibit 99.1

The St. Joe Company (JOE) Reports Fourth Quarter and Full Year 2007 Financial Results

Panama City – Bay County International Airport Construction Continues

Wm. Britton Greene to be Promoted to Chief Executive Officer at Annual Meeting

Peter S. Rummell to Continue as Chairman of the Board

JACKSONVILLE, Fla.--(BUSINESS WIRE)--The St. Joe Company (NYSE:JOE) today announced Net Income for the fourth quarter 2007 of $1.0 million, or $0.01 per share, compared with $22.3 million, or $0.30 per share, for the fourth quarter of 2006. JOE’s fourth quarter results included pre-tax restructuring charges of $6.2 million, or $0.05 per share after tax, and $4.3 million, or $0.04 per share after tax, related to the write-off of a minority position in a liquidating trust. All per share references in this release are presented on a diluted basis.

For the full year 2007, JOE had Net Income of $39.2 million, or $0.53 per share, compared with $51.0 million, or $0.69 per share, for the full year 2006. Full year results were affected by:

--   Pre-tax impairment charges for the full year 2007 totaled $23.2 million, or $0.19 per share after tax, which included:
 
--   Approximately $13.6 million primarily related to a write-down of costs on homes and home sites in JOE's residential segment to approximate fair value;
 
-- Approximately $7.4 million for the write-off of goodwill at Sunshine State Cypress sawmill and mulch plant based on an assessment of its current fair value, which has been included in discontinued operations; and
 
-- A charge of $2.2 million for discontinued operations relating to the sale of Saussy Burbank completed in 2007.
 
-- Pre-tax restructuring charges of $8.9 million, or $0.07 per share after tax.
 
-- Pre-tax charge of $4.3 million, or $0.04 per share after tax, related to the write-off of a liquidating trust minority position.
 
-- Pre-tax gain of $47.8 million, or $0.39 per share after tax, included in discontinued operations relating to the sale of JOE's office building portfolio in 2007.

“This past year was clearly difficult,” said chairman and CEO Peter S. Rummell. “We believe we have taken appropriate steps, through our previously announced restructuring plan, to position JOE to weather continuing difficult market conditions and ultimately for future growth when market conditions improve. As we prepare for the traditional spring selling season, Northwest Florida resort and residential real estate markets remain very weak, commercial markets are somewhat stronger, and rural land demand remains steady. During this period of uncertainty, we will remain patient and disciplined in our approach to the sale of our assets with an eye toward maximizing the value of JOE’s land.”

Airport Progress Continues

Since the start of 2008, several favorable federal court rulings have allowed construction to proceed at the new Panama City – Bay County International Airport.

On January 28, 2008, the Panama City – Bay County International Airport and Industrial District (Airport Authority) announced that the U.S. Court of Appeals for the 2nd Circuit had issued a ruling lifting the temporary stay that had limited construction at the new airport site to areas outside jurisdictional wetlands. The ruling was in response to a motion filed in a lawsuit to overturn the Federal Aviation Administration’s Record of Decision to relocate the airport.

In late January this year, in response to a separate legal challenge to the issuance of a Section 404 permit by the U.S. Army Corps of Engineers, the U.S. District Court for the Middle District of Florida denied a request for a Temporary Restraining Order to halt construction. In the same case, on February 14, 2008, the Court denied a request for a preliminary injunction to halt construction. In its ruling the Court said: “The Court finds plaintiffs have failed to carry their burden of demonstrating they are substantially likely to prevail on any of their NEPA (National Environmental Policy Act) or CWA (Clean Water Act) claims against the Corps.”

“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,” said Rummell. “It also brings us closer to the permanent protection of West Bay and the establishment of the 40,000-acre West Bay Preservation Area.”

Previously the Airport Authority had received final permits, completed and approved the airport relocation financial package and broken ground on the new facility. The Airport Authority continues to estimate that the new airport will open in 2010, barring unexpected delays or additional legal challenges.

JOE’s Board Approves Succession Plan

The JOE Board of Directors approved a succession plan that calls for the promotion of Britt Greene to president and CEO. Greene will be promoted to CEO at the Annual Shareholder Meeting on May 13, 2008. Rummell will continue in his role as the chairman of JOE’s Board of Directors.

“I am immensely proud of what we have accomplished during the last 11 years,” said Rummell. “Since 1997, an aging paper maker has been transformed into a preeminent place maker. Now, with construction underway for a new international airport and with new hospitals, schools and other infrastructure coming into reality, JOE’s Northwest Florida has arrived at a significant tipping point. With this foundation in place, coupled with the skills and experience of Britt and the JOE team, I believe the next decade will bring greater success for JOE as Northwest Florida emerges as one of America’s newest great destinations. We have demonstrated that we can accomplish great things on a large scale, and I am optimistic that JOE can leverage these unique abilities in this part of the cycle into new opportunities for the future.”

“Leading JOE is not only a huge responsibility but an enormous opportunity,” said Greene. “JOE is Northwest Florida’s primary supplier of entitled land and we are actively discussing development opportunities with a variety of strategic partners. We are focused on harnessing the region’s unique assets to create demand for our vast land holdings. Peter’s leadership has provided an extraordinary foundation on which we can build for the future.”

Land Holdings and Entitlements

On December 31, 2007, JOE owned approximately 700,000 acres, concentrated primarily in Northwest Florida. These holdings include approximately 310,000 acres within 10 miles of the coast of the Gulf of Mexico. JOE also owns approximately 14,000 acres in southwest Georgia.

On December 31, 2007, JOE’s land-use entitlements in hand or in process totaled approximately 46,000 residential units and approximately 14.5 million square feet of commercial space, as well as an additional 633 acres with land-use entitlements for commercial uses.

Restructuring Update

As part of its previously-announced restructuring plan, JOE is focused on harvesting its non-core assets, strengthening its balance sheet and streamlining its operating structure. JOE is also building a business-to-business competency to market entitled land to strategic partners.

During the fourth quarter JOE announced it was marketing for sale approximately 100,000 acres of non-strategic rural lands. By December 31, 2007, JOE had closed on the sale of 18,274 acres for a total of $28.2 million. JOE currently has contracts on multiple parcels totaling approximately 28,000 acres for an aggregate price of approximately $52 million and is engaged in on-going conversations with several parties on an additional 90,000 acres. These contracts are subject to various closing conditions and due diligence. JOE intends to use the proceeds of these sales primarily to pay down debt and for working capital purposes.

As part of the October 2007 restructuring plan, JOE announced that it intended to accelerate marketing and sales of its inventory of existing developed home sites and homes. “Despite poor market conditions, we have seen some demand for high quality product priced to the market,” said Greene. “To that end, JOE closed on 134 home sites and 31 homes in the fourth quarter. To harvest our embedded investment in existing inventory, we are focusing our efforts to be in position for the traditional buying season that starts in the spring.”

Earlier this month, Beazer Homes confirmed their plans to grow their position in Northwest Florida through a strategic relationship with JOE. Beazer also announced plans to exit a number of other markets nationwide. “JOE and Beazer have entered into a long-term relationship under which JOE entitles and sells home sites in a number of the region’s markets to Beazer,” said Greene. “We are working on several projects now and together plan to identify new opportunities as market conditions in the region improve.”

JOE has also taken important steps to streamline its organizational structure to focus more efficiently on regional planning, business-to-business commercial relationships, strategic alliances and demand-inducing economic development efforts. During the fourth quarter, JOE announced it had entered into management agreements with industry-leading hospitality strategic partners. Approximately 500 JOE employees are now employed by these strategic partners. As a result of these management agreements and other steps to streamline operations, JOE is reducing its direct employee headcount from 980 at the start of the third quarter in 2007 to a projected headcount of approximately 200.

JOE’s capital expenditures have been significantly reduced and are focused on JOE’s growth assets which are best developed with strategic partners. “We continue to evaluate our deployment of capital,” said William S. McCalmont, JOE’s CFO. “We currently expect our capital expenditures in 2008 to be less than $90 million and even lower in 2009, compared to approximately $250 million in 2007 and $600 million in 2006.”

JOE’s Balance Sheet

JOE is weighing a number of alternatives to enhance its financial flexibility, including the negotiation of amendments to its bank credit facility and senior notes, and capital-market transactions. “JOE is committed to strengthening its balance sheet,” said McCalmont. “As part of this commitment, we are working aggressively to lower debt and to identify the most favorable and flexible financing alternatives.”

At December 31, 2007, JOE’s debt was $541 million, including $31 million of debt defeased in connection with the sale of our office building portfolio, as compared to $627 million on December 31, 2006. At the end of the fourth quarter, JOE had approximately $348 million of available capacity under its $500 million Revolving Credit Facility and approximately $55 million of cash and pledged securities on its balance sheet.

JOE’s Strategic Position

“We are working on a number of strategic initiatives designed to stimulate demand as we put time back on our side; however, there are no quick fixes or easy answers,” said Rummell. “We believe we are taking appropriate steps to improve JOE’s position to withstand these challenging market conditions.”

“Longer term we continue to like our position very much,” said Greene. “JOE’s strategic position is one that cannot be duplicated: low basis land, a lot of it, in Florida, all in one region, ahead of the baby boom combined with proven core competency, expertise and know-how to transform potential into value. Meanwhile, an economic engine for the entire region is under construction at West Bay -- the first international airport in the nation since DIA was built in Denver.”

FINANCIAL DATA

($ in millions except per share amounts)

 

Consolidated Results

 
Quarter Ended December 31, Year Ended December 31,
2007   2006 2007   2006
Revenues
Real estate sales $80.0 $131.2 $307.8 $456.1
Rental revenue 0.7 1.3 5.1 5.0
Timber sales 6.4 5.3 25.8 24.3
Other revenues 6.7   7.5   38.3   38.9  
Total revenues 93.8   145.3   377.0   524.3  
Expenses
Cost of real estate sales 35.3 68.4 145.8 247.5
Cost of rental revenue 0.6 0.9 4.5 3.9
Cost of timber sales 5.1 3.5 20.8 18.1
Cost of other revenues 8.4 8.2 39.8 41.2
Other operating expenses 18.0 15.0 68.5 66.0
Corporate expense, net 6.7 10.7 32.7 51.3
Restructuring charge 6.2 0.3 8.9 13.4
Impairment losses 0.6 -- 13.6 --
Depreciation and amortization 4.8   5.7   19.4   20.5  
Total expenses 85.7   112.7   354.0   461.9  
Operating profit 8.1 32.6 23.0 62.4
Other expense (3.3 ) (5.4 ) (4.6 ) (9.4 )
Pretax income from continuing operations 4.8 27.2 18.4 53.0
Income tax benefit (expense) 0.9 (8.9 ) (0.9 ) (21.5 )
Minority interest expense (0.2 ) (0.5 ) (1.1 ) (6.1 )
Equity (loss) in income of unconsolidated affiliates (5.3 ) 1.8 (5.3 ) 8.9
Discontinued operations, net of tax 0.8   2.7   28.1   16.7  
Net income $1.0   $22.3   $39.2   $51.0  
Net income per share $0.01   $0.30   $0.53   $0.69  
 
Weighted average shares outstanding 74,290,357   74,274,077   74,300,601   74,419,159  

Revenues by Segment

 
Quarter Ended December 31, Year Ended December 31,

2007

  2006 2007  

2006

Residential
Real estate sales $40.0 $71.7 $119.0 $317.6
Rental revenue 0.6 0.3 2.9 1.7
Other revenues 6.9 7.3 38.4 38.0
Total Residential 47.5 79.3 160.3 357.3
Commercial
Real estate sales 10.2 28.0 27.6 48.5
Rental revenue 0.1 1.0 2.1 3.3
Other revenues -- 0.2 0.1 0.9
Total Commercial 10.3 29.2 29.8 52.7
Rural Land sales
Real estate sales 29.7 31.5 161.1 90.0
Total Rural Land sales 29.7 31.5 161.1 90.0
Forestry sales 6.3 5.3 25.8 24.3
Total revenues $93.8 $145.3 $377.0 $524.3

Summary Balance Sheet

 
December 31, 2007 December 31, 2006
Assets
Investment in real estate $943.5 $1,213.5
Cash and cash equivalents 24.3 36.9
Pledged treasury securities 30.7 --
Accounts receivable 8.8 25.8
Notes receivable 56.3 26.0
Prepaid pension asset 109.3 100.9
Property, plant and equipment, net 23.7 44.6
Other assets 59.2 112.7
Assets held for sale 8.1 --
Total assets $1,263.9 $1,560.4
 
Liabilities and Stockholders’ Equity
Debt 541.2 627.1
Accounts payable, accrued liabilities 152.3 250.6
Deferred income taxes 83.5 211.1
Liabilities of assets held for sale 0.3 --
Total liabilities 777.3 1,088.8
Minority interest 6.3 10.5
Total stockholders’ equity 480.3 461.1
Total liabilities and stockholders’ equity $1,263.9 $1,560.4

Debt Schedule

 

December 31, 2007

December 31, 2006

Senior revolving credit facility $132.0 $ 60.0
Senior notes 240.0 307.0
Term loan 100.0 100.0
Bond payable -- 4.0

Debt secured by securities, certain commercial and residential property

69.2

156.1

Total debt

$541.2

(1)

$627.1
 

(1) Includes $30.7 million of debt defeased in connection with sale of office portfolio.

Additional Information

Additional information with respect to the Company’s results for 2007 will be made available in a Form 8-K that will be filed with the Securities and Exchange Commission today. Reported results are preliminary, not final, and remain subject to adjustment until the filing of our Form 10-K with the SEC later this month.

Conference Call Information

On Tuesday, February 19, 2008, at 10:30 a.m. (EST), JOE will host an interactive conference call to review the company’s results for the quarter and full year ended December 31, 2007.

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 8972463. 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 8972463. 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, 2006 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
December 31, 2007

 

 

 

Project

 

 

 

Class.(2)

 

 

 

 

County

 

 

 

Project Acres

 

 

 

Project
Units(3)

 

Residential

Units Closed Since
Inception

 

Residential

Units Under Contract
as of 12/31/07

 

Total Residential Units
Remaining

 

Remaining

Commercial

Entitlements

(Sq. Ft.)(4)

 

In Development: (5)

Artisan Park (6) PR Osceola 175 618 564 -- 54 --
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 --
Paseos (6) PR Palm Beach 175 325 325 -- -- --
PineWood PR Bay 104 264 -- -- 264 --
RiverCamps on Crooked Creek RS Bay 1,491 408 186 -- 222 --
Rivercrest (6) PR Hillsborough 413 1,382 1,382 -- -- --
RiverSide at Chipola RR Calhoun 120 10 2 -- 8 --
RiverTown PR St. Johns 4,170 4,500 27 -- 4,473 500,000
SevenShores (Perico Island) RS Manatee 192 686 -- -- 686 9,000
SouthWood VAR Leon 3,370 4,770 2,243 301 2,226 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 PR Volusia 1,859 4,200 1,402 81 2,717 818,654
WaterColor RS Walton 499 1,140 880 -- 260 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 31 -- 168 --
Wild Heron (7)

RS

Bay 17 28 1 -- 27 --
WindMark Beach RS Gulf

2,020

1,662

133

1

1,528

75,000

Subtotal

19,342

24,131

9,130

383

14,618

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 --
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

22,699

23,941 -- -- 23,941 5,724,500
Total

42,041

48,072

9,130 383 38,559 12,263,494
(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:
  • PR – Primary residential.
  • RS – Resort and seasonal residential.
  • RR – Rural residential.
  • 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) 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. Paseos and Rivercrest are each 50 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)
December 31, 2007

 

 

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
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 --
Total 7,399 7,668 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.
  • RR – Rural residential.
  • VAR – Includes multiple classifications. For example, a project may have substantial commercial and residential acres.
(3) The actual number of units or square feet to be constructed at full build-out may be lower than the number ultimately entitled.

Table 3
Summary of Additional Commercial Land-Use Entitlements (1)
(Commercial Projects Not Included in Tables 1 and 2 Above)
Active JOE Florida Commercial Projects
December 31, 2007

 

Project

 

 

County

 

Project

Acres

  Acres Sold

Since Inception

  Acres Under Contract

As of 12/31/07

 

Total Acres Remaining

Airport Commerce Leon 45 7 -- 38
Airport Road Franklin 13 -- -- 13
Alf Coleman Retail Bay 25 23 -- 2
Avery St. Retail Bay 10 10 -- --
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 2 48
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 54 -- -- 54
Port St. Joe Medical Gulf 19 -- -- 19
Powell Hills Retail Bay 44 -- -- 44
South Walton Commerce Walton 39 18 -- 21
Total 981 346 2 633
(1) A project is deemed land-use entitled when all major discretionary governmental land-use approvals have been received. Some of these projects may require additional permits for development and/or build-out; they also may be subject to legal challenge. Includes significant JOE projects that are either operating, under development or in the pre-development stage.

Table 4
Stock Repurchase Activity
Through December 31, 2007

  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
Total/Weighted Average 27,945,611 2,311,897 30,257,508 $931.0 $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 December 31,
($ in millions)

2007   2006

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) 134 $20.3 $12.6 $7.7 334 $30.8 $19.7 $11.1
Homes (3) 31 16.7 14.8 1.9 120 40.0 32.2 7.8
Total 165 $37.0 $27.4 $9.6 454 $70.8 $51.9 $18.9

(1) Cost of sales for home sites in the fourth quarter of 2007 consisted of $10.8 million in direct costs, $0.5 million in selling costs and $1.3 million in indirect costs. Cost of sales for home sites in the fourth quarter of 2006 consisted of $17.6 million in direct costs, $0.6 million in selling costs and $1.5 million in indirect costs. Cost of sales for homes in the fourth quarter of 2007 consisted of $11.1 million in direct costs, $0.9 million in selling costs and $2.8 million in indirect costs. Cost of sales for homes in the fourth quarter of 2006 consisted of $25.8 million in direct costs, $2.1 million in selling costs and $4.3 million in indirect costs.
(2) Profit has been deferred as a result of continuing development obligations at SummerCamp Beach and WaterSound West Beach. As a consequence, revenue recognition and closings may occur in different periods.
(3) Homes include single-family, multifamily and Private Residence Club (PRC) units. Multifamily and PRC revenue is recognized, if preconditions are met, on a percentage-of-completion basis. As a consequence, revenue recognition and closings may occur in different periods. Percentage-of-completion accounting was utilized at Artisan Park in the fourth quarter of 2006. Paseos and Rivercrest, two joint ventures 50 percent owned by JOE, are not included; sales are complete at both of these communities.

Year Ended December 31,
($ in millions)

2007   2006

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) 354 $57.6 $29.5 $28.1 558 $69.3 $36.1 $33.2
Homes (3) 124 58.4 47.4 11.0 702 247.3 184.6 62.7
Total 478 $116.0 $76.9 $39.1 1,260 $316.6 $220.7 $95.9

(1) Cost of sales for home sites in 2007 consisted of $24.5 million in direct costs, $2.0 million in selling costs and $3.0 million in indirect costs. Cost of sales for home sites in 2006 consisted of $31.4 million in direct costs, $1.7 million in selling costs and $3.0 million in indirect costs. Cost of sales for homes in 2007 consisted of $36.3 million in direct costs, $2.9 million in selling costs and $8.2 million in indirect costs. Cost of sales for homes in 2006 consisted of $153.9 million in direct costs, $11.8 million in selling costs and $18.9 million in indirect costs.
(2) Profit has been deferred as a result of continuing development obligations at SummerCamp Beach and WaterSound West Beach. As a consequence, revenue recognition and closings may occur in different periods.
(3) Homes include single-family, multifamily and PRC units. Multifamily and PRC revenue is recognized, if preconditions are met, on a percentage-of-completion basis. As a consequence, revenue recognition and closings may occur in different periods. Percentage-of-completion accounting was utilized at Artisan Park in the fourth quarter of 2006. 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 December 31,

  2007   2006   Percentage Change
Home Sites 50 317

(84.2) %

Homes (1) 24 10 140.0
Total 74 327 (77.4) %

  (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)

  December 31, 2007   December 31, 2006
Units   Revenues Units   Revenues
Home Sites

82

$3.2

21

$3.9

Homes (2)

1

1.3

56

33.5

Total

83

$4.5

77

$37.4

  (1) Backlog represents units under contract but not yet closed.

(2)

As of December 31, 2007, there were no units subject to percentage-of-completion accounting in the homes backlog. As of December 31, 2006, there were 24 units subject to percentage-of completion accounting with related revenue of $12.5 million (of which $11.9 million had previously been recognized in the financial statements).

Table 8
Residential Real Estate
National Homebuilder Summary
of Home Site Commitments and Purchases

Activity During the
Three Months Ended December 31, 2007

 

9/30/2007

Commitments (1)

 

Closed

  Average Price

Closed Units

  Change in Commitments   12/31/2007 Commitments
Beazer Homes
Breakfast Point 70 -- $ -- (70) --
Laguna West 350 118 24,000 -- 232
RiverTown 64 -- -- (64) --
SouthWood 20 -- -- -- 20
Shea Homes
Victoria Park 700 82 38,114 -- 618
David Weekley Homes
Artisan Park -- 2 105,000 2 --
Hawks Landing 39 -- -- (39) --
RiverTown 93 6 72,133 -- 87
SouthWood 110 4 86,600 -- 106
American Home Builders
RiverTown 48 4 54,000 15 59
Cornerstone Homes
RiverTown 31 8 51,800 -- 23
Issa Homes
RiverTown 55 9 78,058 20 66
Lakeridge Homes
Victoria Park 10 10 97,500 -- --
Total 1,590 243 (136) 1,211

Activity During the
Year Ended December 31, 2007

 

12/31/2006

Commitments (1)

 

Closed

  Average Price

Closed Units

  Change in Commitments   12/31/2007 Commitments
Beazer Homes
Breakfast Point 70 -- $ -- (70) --
Laguna West 350 118 24,000 -- 232
SouthWood 56 36 51,134 -- 20
Shea Homes
Victoria Park -- 87 38,144 705 618
David Weekley Homes
Artisan Park -- 2 105,000 2 --
Hawks Landing 89 50 60,900 (39) --
Palmetto Trace 8 8 83,460 -- --
PineWood 70 -- -- (70) --
RiverTown -- 6 72,133 93 87
SouthWood 140 34 94,172 -- 106
American Home Builders
RiverTown -- 4 54,600 63 59
Cornerstone Homes
RiverTown -- 8 51,800 31 23
Issa Homes
RiverTown -- 9 78,058 75 66
Lakeridge Homes
Victoria Park -- 10 97,500 10 --
Total 783 372 800 1,211

(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 December 31,
($ in thousands)

2007   2006
Units Closed   Avg. Price   Accepted (1)   Avg. Price Units Closed   Avg. Price   Accepted (1)   Avg. Price
Artisan Park (2)
Home Sites 2 $105.0 2 $105.0 -- $ -- -- $ --
Single-Family Homes 4 459.7 4 459.7 17 515.2 (3) 776.6
Multifamily Homes 11 335.0 11 335.0 36 427.9 (1) 399.9
Hawks Landing
Home Sites 1 80.0 1 80.0 31 71.2 12 63.3
Palmetto Trace
Home Sites -- 0.0 -- -- 9 81.2 9 81.2
Single-Family Homes 3 253.1 3 253.1 2 296.8 2 296.8
Paseos (2)
Single-Family Homes 2 385.0 -- -- 3 582.8 1 485.0
Rivercrest (2)
Single-Family Homes 1 296.0 1 296.0 68 222.4 -- --
RiverTown
Home Sites 27 65.5 27 65.5 -- -- -- --
SouthWood
Home Sites 6 98.6 5 91.3 97 54.4 106 59.7
Single-Family Homes -- -- -- -- 21 289.6 -- --
St. Johns G &CC
Home Sites -- -- -- -- 1 135.0 1 135.0
Single-Family Homes -- -- -- -- 7 435.2 8 462.1
SummerCamp Beach
Home Sites -- -- -- -- 7 709.5 5 874.0
The Hammocks
Single-Family Homes -- -- -- -- -- -- (1) 152.7
Victoria Park
Home Sites 92 44.6 10 97.5 181 66.4 182 67.7
Single-Family Homes 3 186.9 3 186.9 28 347.5 4 164.9
WaterColor
Home Sites 1 832.0 1 832.0 -- -- -- --
Single/Multifamily Homes 1 1,925.0 1 1,925.0 2 712.4 1 813.1
WaterSound
Home Sites 1 165.8 1 165.8 1 165.0 -- --
Single-Family Homes 1 1,315.0 -- -- -- -- -- --
WaterSound Beach
Home Sites -- -- -- -- 1 1,843.8 -- --
Single-Family Homes 7 817.4 1 1,025.0 7 1,274.8 -- --
WaterSound West Beach
Home Sites 2 368.6 2 368.6 -- -- -- --
Single-Family Homes 1 895.0 -- -- -- -- -- --
Wild Heron
Home Sites 1 190.0 1 190.0 -- -- -- --
WindMark Beach
Home Sites 1 404.2 1 404.2 6 200.2 2 238.0
Single-Family Homes -- -- 1 1,300.0 -- -- -- --
Total Home Sites 134 $67.8 51 $114.1 334 $85.5 317 $79.2
Total Single/Multifamily Homes 34 $522.6 25 $455.6 191 $370.9 11 $288.0

Year Ended December 31,
($ in thousands)

2007   2006
Units Closed   Avg. Price   Accepted (1)   Avg. Price Units Closed   Avg. Price   Accepted (1)   Avg. Price
Artisan Park (2)
Home Sites 2 $105.0 2 $105.0 1 $495.0 1 $495.0
Single-Family Homes 25 620.3 20 582.0 73 626.6 19 658.8
Multifamily Homes 39 447.6 15 331.5 136 414.2 9 451.2
Hawks Landing
Home Sites 70 65.7 68 65.3 59 71.8 61 72.0
Palmetto Trace
Home Sites 8 83.5 8 83.5 33 78.9 33 78.9
Single-Family Homes 12 261.7 12 261.7 48 310.6 10 289.0
Paseos(2)
Single-Family Homes 3 458.3 3 458.3 66 532.4 (1) 490.3
Port St. Joe Primary
Home Sites 3 64.2 3 64.2 -- -- -- --
RiverCamps on Crooked Creek
Home Sites 4 220.1 4 220.1 7 232.7 5 228.8
Rivercrest (2)
Single-Family Homes 17 240.4 12 237.2 333 207.4 (9) 237.2
RiverTown
Home Sites 27 65.5 27 65.5 -- -- -- --
SevenShores
Multifamily Homes -- -- (9) 1,013.8 -- -- 9 1,013.8
SouthWood
Home Sites 96 88.4 82 83.8 134 58.0 140 60.8
Single-Family Homes 5 349.4 1 228.5 162 300.1 24 316.4
St. Johns G &CC
Home Sites 2 157.5 -- 0.0 7 144.7 9 147.6
Single-Family Homes 9 469.6 6 415.5 54 519.5 35 521.7
SummerCamp Beach
Home Sites -- -- -- -- 16 499.4 16 499.4
Single-Family Homes -- -- (1) 968.7 -- -- -- --
The Hammocks
Home Sites 1 79.0 1 79.0 -- -- -- --
Single-Family Homes 3 204.6 3 204.6 39 151.1 (1) 152.7
Victoria Park
Home Sites 98 46.9 178 41.5 257 80.0 256 79.6
Single-Family Homes 10 325.0 8 321.8 170 319.8 36 315.5
WaterColor
Home Site 9 768.5 9 768.5 2 318.2 2 318.2
Single/Multifamily Homes 2 1,350.0 2 1,350.0 8 981.1 5 1,025.7
WaterSound
Home Sites 6 164.2 6 164.2 15 162.3 15 162.3
Homes 1 1,315.0 1 1,315.0 -- -- -- --
WaterSound Beach
Home Sites 4 1,583.8 3 1,638.0 1 1,843.8 2 1,632.6
Single-Family Homes 17 1,121.7 9 1,769.1 12 1,162.2 19 831.5
WaterSound West Beach
Home Sites 17 325.6 17 325.6 3 441.4 2 293.9
Single-Family Homes 1 895.0 1 895.0 -- -- -- --
Wild Heron
Home Sites 1 190.0 1 190.0 -- -- -- --
WindMark Beach
Home Sites 6 322.3 6 322.2 23 241.6 23 241.6
Single-Family Homes -- -- 1 1,300.0 -- -- -- --
Total Home Sites 354 $123.4 415 $103.5 558 $104.1 565 $105.0
Total Single/Multifamily Homes 144 $523.5 84 $499.1 1,101 $345.1 155 $541.6

(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 December 31,
($ in thousands)

  Number of Sales   Acres Sold   Gross Sales Price   Average Price/Acre
2007
Northwest Florida 7 30 $10,106 $336.0
2006
Northwest Florida 11 145 $27,390 $189.0

Year Ended December 31,

  Number of Sales   Acres Sold   Gross Sales Price   Average Price/Acre
2007
Northwest Florida 29 88 $23,227 $264.0
Other 4 22 4,366 194.1
Total 33 110 $27,593 $250.4
2006
Northwest Florida 28 244 $48,891 $200.4

Table 11
Rural Land Sales
Three Months Ended December 31,

  Number of Sales   Acres Sold   Gross Sales Price

(in thousands)

  Average Price/Acre
2007

Woodlands

12 18,864 $29,820 $1,581
2006
Woodlands 9 16,695 29,672 1,777
Other 6 162 1,871 11,549
Total 15 16,857 $31,543 $1,871

Year Ended December 31,

  Number of Sales   Acres Sold   Gross Sales Price

(in thousands)

  Average Price/Acre
2007
Florida Wild 2 3,883 $9,905 $2,551
Woodlands 40 101,988 150,152 1,472

Other

2 92 1,230 13,370
Total 44 105,963 $161,287 $1,522
2006
Florida Wild 6 4,692 17,519 3,734
Woodlands 63 28,936 60,265 2,083
Other 15 708 12,206 17,240
Total 84 34,336 $89,990 $2,621

FINANCIAL DATA
($ in millions)

Quarterly Segment Pretax Income (Loss)
From Continuing Operations

Dec 31,

2007

  Sept 30,

2007

  June 30,

2007

  Mar 31,

2007

 

Dec 31,
2006

  Sept 30,

2006

  June 30,

2006

  Mar 31,

2006

  Dec 31,

2005

Residential $(11.4) $(26.2) $(0.8) $(5.4) $4.3 $(7.6) $17.2 $10.2 $40.6
Commercial 4.6 2.3 8.4 0.1 13.6 8.2 1.6 0.6 4.8
Rural Land sales 24.5 27.8 7.2 40.4 26.7 12.2 22.1 11.4 19.1
Forestry (1.9) 1.3 0.9 0.1 1.5 1.0 0.7 2.0 5.6
Corporate and other (11.0) (15.8) (16.4) (10.2) (18.9) (16.3) (17.2) (20.3) (15.0)
Pretax income (loss) from

continuing operations

$4.8 $(10.6) $(0.7) $25.0 $27.2 $(2.5) $24.4 $3.9 $55.1

Discontinued Operations, Net of Tax

Quarter Ended December 31,   Year Ended December 31,
2007   2006 2007   2006
Loss on sale of Saussy Burbank, net of tax $(0.1) $ -- $(0.2) $ --
Income from Saussy Burbank operations, net of tax (1) -- 2.7 1.1 8.0
Gain (loss) from sale of office buildings, net of tax 0.8 1.0 29.2 10.4
Income (loss) from office buildings, net of tax (0.1) (0.1) 1.5 (1.0)
Income (loss) from Sunshine State Cypress operations,

net of tax

0.2 (0.9) (3.5) (0.7)
Net income (loss) from discontinued operations $0.8 $2.7 $28.1 $16.7

(1) Year ended December 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 December 31,   Year Ended December 31,
2007   2006 2007   2006

Dividend and interest income

$1.2 $1.3 $5.3 $5.0
Interest expense (5.4) (5.2) (20.0) (13.9)
Other 0.2 (1.5) 2.1 (0.5)
Gain on disposition of assets 0.7

--

8.0 --
Total $(3.3) $(5.4) $(4.6) $(9.4)