The St. Joe Company (NYSE: JOE) (the “Company”) today announced
a Net Loss for the first quarter of 2015 of $(1.7) million, or
$(0.02) per share, compared with Net Income of $403.0 million, or
$4.37 per share, for the first quarter of 2014. During the first
quarter of 2014, the Company sold approximately 380,000 acres of
the Company’s non-strategic timberlands and rural land to
AgReserves, Inc (the “AgReserves Sale”). As a result of this sale,
the Company recorded earnings of $511.1 million before income taxes
in the first quarter of 2014.
Revenue for the first quarter of 2015 was $17.1 million as
compared to $23.2 million, excluding the AgReserves Sale, in the
first quarter of 2014. The decrease in revenue is primarily due to
a $6.3 million decrease in timber revenue as a result of the
AgReserves Sale. The Company’s first quarter revenue was generated
from $5.4 million of residential real estate sales, $7.8 million
from resorts and leisure operations, $2.1 million from leasing
operations and $1.8 million from timber sales.
During the first quarter of 2015, the Company’s revenue from
leasing operations increased 75% to $2.1 million, as compared to
$1.2 million in the first quarter in 2014, primarily due to the
Company’s consolidated joint venture, Pier Park North. Stores at
Pier Park North opened throughout 2014 as construction progressed.
Pier Park North is currently over 80% leased.
Investment income from the Company’s available-for-sale
securities for the first quarter of 2015 was $2.9 million, as
compared to $0.2 million in the first quarter of 2014.
As of March 31, 2015, the Company had cash, cash
equivalents and investments of $675.1 million, as compared to
$671.4 million as of December 31, 2014.
FINANCIAL DATA
Consolidated Results
($ in millions except share and per
share amounts)
Quarter
Ended
March
31,
2015
2014
Revenues Real estate sales $5.4
$577.8 Resorts and leisure revenues 7.8 7.0
Leasing revenues 2.1 1.2 Timber sales
1.8
8.1
Total revenues
17.1
594.1
Expenses Cost of real estate sales
3.1 62.1 Cost of resorts and leisure revenues
8.8 7.6 Cost of leasing revenues 0.7 0.4 Cost
of timber sales 0.2 3.9 Other operating and corporate
expenses 7.1 8.5 Depreciation, depletion and
amortization 2.9 2.1 Total expenses
22.8
84.6
Operating (loss) income
(5.7)
509.5
Other income
2.9
0.4
(Loss) income before income taxes
(2.8)
509.9
Income tax (benefit) expense
(1.1)
106.9
Net (loss) income
(1.7)
403.0
Net (loss) income per share
$(0.02)
$4.37
Weighted average shares outstanding 92,302,636
92,292,913
Revenues by Segment ($ in
millions)
Quarter
Ended
March
31,
2015
2014
Revenues: Real estate sales
Residential $5.4 $5.7 Commercial
-- 2.4 AgReserves Sale and other
--
569.7
Total real estate sales 5.4 577.8 Resorts and leisure
revenues 7.8 7.0 Leasing revenues 2.1
1.2 Timber sales
1.8
8.1
Total revenues
$17.1
$594.1
Summary Balance Sheet
($ in millions)
March 31,
2015
December 31,
2014
Assets Investment in real
estate, net $321.1 $321.8 Cash and cash equivalents
289.7 34.5 Investments 385.4 636.9
Restricted investments 7.1 7.9 Notes receivable, net
22.4 24.3 Pledged treasury securities 25.5
25.7 Property and equipment, net 10.5 10.2
Other assets 34.4 32.0 Investments held by special
purpose entities
209.4
209.8
Total assets
$1,305.5
$1,303.1
Liabilities and Equity
Debt $66.4 $63.8 Accounts
payable, accrued liabilities and deferred credits 47.4
47.5 Deferred tax liabilities 35.5 34.8 Senior
Notes held by special purpose entity 177.4 177.3
Total liabilities
326.7
323.4
Total equity
978.8
979.7
Total liabilities and equity
$1,305.5
$1,303.1
Debt Schedule
($ in millions)
March 31,
2015
December 31,
2014
In substance defeased debt $25.5 $25.7 Community
Development District debt 7.1 6.5 Pier Park North
joint venture – construction loan
33.8
31.6
Total debt
$66.4
$63.8
Other Operating and Corporate
Expenses
($ in millions)
Quarter
Ended
March
31,
2015
2014
Employee costs $2.6 $2.5 AgReserves Sale severance
-- 1.2 401(k) contribution / pension plan 0.9
0.7 Property taxes and insurance 1.5 1.7
Professional fees 1.2 1.4 Marketing and owner
association costs 0.3 0.5 Occupancy, repairs and
maintenance 0.1 0.2 Other
0.5
0.3
Total other operating and corporate expenses
$7.1
$8.5
Additional Information and Where to
Find It
Additional information with respect to the Company’s results for
the first quarter of 2015 will be available in a Form 10-Q that
will be filed with the Securities and Exchange Commission.
Important Notice Regarding
Forward-Looking Statements
This press release includes forward-looking statements,
including statements regarding the Company’s expectations regarding
the Company’s business strategy and future operations and the
growth and development of the resort operations business. The
Company wishes to caution readers that certain important factors
may have affected and could in the future affect the Company’s
actual results and could cause the Company’s actual results for
subsequent periods to differ materially from those expressed in any
forward-looking statement made by or on behalf of the Company,
including (1) changes in the Company’s strategic objectives,
including any such changes implemented as a result of the Company’s
planned CEO search; (2) economic or other conditions that affect
the future prospects for the Southeastern region of the United
States and the demand for the Company’s products, including a
slowing of the population growth in Florida, inflation, or
unemployment rates or declines in consumer confidence or the demand
for, or the prices of, housing; (3) pending or future regulatory or
legislative actions, accounting changes or litigation that could
adversely affect the Company; (4) the impact of natural or man-made
disasters or weather conditions, including hurricanes and other
severe weather conditions, on the Company’s business; (5) changes
in the Company’s customer base and the mix of homesites available
for sale in its residential real estate; (6) changes in the
cyclical nature of the Company’s real estate operations; (6) the
Company’s ability to capitalize on its leasing operations in the
Pier Park North joint venture; (7) the Company’s ability to
effectively execute its strategy in its resorts and leisure
operations; (8) the Company’s ability to capitalize on
opportunities relating to its planned mixed use and active adult
communities, including its ability to successfully and timely
obtain land-use entitlements and construction financing, and
address issues that arise in connection with the use and
development of its land, including the permits required for the
launch of its planned mixed use and active adult communities; (9)
the realization of any unrealized losses related to the Company’s
investments, including any potential further downturns in the
Company’s corporate debt securities or any other of its
investments; and (10) the Company’s ability to effectively deploy
and invest its assets, including available-for-sale securities; as
well as, the cautionary statements and risk factor disclosures
contained in the Company’s Securities and Exchange Commission
filings including the Company’s Annual Report on Form 10-K filed
with the Commission on February 26, 2015 as updated by subsequent
Quarterly Reports on Form 10-Qs and other current report
filings.
About The St. Joe
Company
The St. Joe Company together with its consolidated subsidiaries
is a real estate development and operating company with real estate
assets and operations currently concentrated primarily between
Tallahassee and Destin, Florida. The Company uses these assets in
its residential or commercial real estate developments, resorts and
leisure operations, leasing operations or its forestry operations.
More information about the Company can be found on its website at
www.joe.com.
© 2015, The St. Joe Company. “St. Joe®”, “JOE®”, the “Taking
Flight” Design®, “St. Joe (and Taking Flight Design)®” are
registered service marks of The St. Joe Company.
The St. Joe CompanyInvestor Relations Contact:Marek Bakun,
1-866-417-7132Chief Financial OfficerMarek.Bakun@Joe.Com
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