Kurt
Admin
WaterSound, Florida - (November 7, 2013) - The St. Joe Company (NYSE: JOE) today announced Net Income for the third quarter 2013 of $4.2 million, or $0.05 per share, compared to Net Income of $15.3 million, or $0.17 per share for the third quarter of 2012. For the nine months ended September 30, 2013, the Company reported Net Income of $4.4 million or $0.05 per share compared to Net Income of $14.6 million or $0.16 per share for the same period last year. Income for the third quarter of 2013 did not include any significant rural land sales compared to the third quarter of 2012, which included income of $14.7 million from rural land.
Observations regarding the Company's major business segments in the third quarter of 2013 compared to the third quarter of 2012 include:
Operating and Corporate expenses declined by $2.2 million due to reductions in employee related costs and lower real estate carrying costs during the nine months ending September 30, 2013, as compared to same period in 2012.
Subsequent to the quarter, the Company entered into an agreement to sell approximately 382,834 acres of timberland for $565 million. The final price is subject to adjustments set forth in the sales agreement. The closing is subject to a number of conditions, including approval by the Company's shareholders. The land to be sold has an aggregate carrying value of approximately $54 million at October 31, 2013. Additional information on the sales agreement can be found in the Company's press release dated November 7, 2013, and Form 8-K filed with the SEC on November 7, 2013.
Park Brady, St. Joe's Chief Executive Officer, said "The sale of timberland will help the Company concentrate on its core business activity of real estate development in Northwest Florida. The proceeds from the sale will provide the Company with significant liquidity and numerous opportunities to create long-term value for our shareholders."
Observations regarding the Company's major business segments in the third quarter of 2013 compared to the third quarter of 2012 include:
- Residential real estate revenue increased $1.0 million due to an increase in the number of residential lots sold in the Company's primary home communities.
- Resorts, leisure and leasing operations revenue increased $4.2 million. $2.1 million of that increase is related to specific sales of operating properties. The remaining $2.1 million increase is due to higher average room rates, a greater number of homes in the Company's vacation rental business, and the continuing positive impact of commercial leases.
- The volume of timber delivered was lower due to unusually high amounts of rain over the summer months. Forestry revenue decreased $1.9 million primarily due to a decrease in the tons of timber delivered offset by higher prices per ton.
- Commercial real estate and rural land sales revenue were minimal in the three months ending September 30, 2013, as compared to a total of $22.5 million in the third quarter of 2012.
Operating and Corporate expenses declined by $2.2 million due to reductions in employee related costs and lower real estate carrying costs during the nine months ending September 30, 2013, as compared to same period in 2012.
Subsequent to the quarter, the Company entered into an agreement to sell approximately 382,834 acres of timberland for $565 million. The final price is subject to adjustments set forth in the sales agreement. The closing is subject to a number of conditions, including approval by the Company's shareholders. The land to be sold has an aggregate carrying value of approximately $54 million at October 31, 2013. Additional information on the sales agreement can be found in the Company's press release dated November 7, 2013, and Form 8-K filed with the SEC on November 7, 2013.
Park Brady, St. Joe's Chief Executive Officer, said "The sale of timberland will help the Company concentrate on its core business activity of real estate development in Northwest Florida. The proceeds from the sale will provide the Company with significant liquidity and numerous opportunities to create long-term value for our shareholders."
