Thread: St. Joe 3rd Quarter 2009 results
St. Joe 3rd Quarter 2009 results
The St. Joe Company (NYSE: JOE) today announced a Net Loss for the third quarter of 2009 of $(14.4) million, or $(0.16) per share, which included pre-tax charges of $12.9 million, or $0.08 per share after tax. This compares to a Net Loss of $(19.2) million, or $(0.21) per share, for the third quarter of 2008, which included pre-tax charges of $13.0 million, or $0.09 per share after tax. All per-share references in this release are presented on a diluted basis.
St. Joe's third quarter earnings included $11.1 million of pre-tax, non-cash impairment charges including $9.0 million related to the settlement of the Saussy Burbank notes receivable, $2.0 million associated with various homes, homesites and other long-term assets and $0.1 million related to various builder notes receivable. The Company also incurred a restructuring charge of $1.8 million related to one-time termination benefits.
Third Quarter Highlights:
- Sold 5.6 acres of commercial land for $2.1 million, or over $350,000 per acre.
- Generated $9.2 million of revenue from the sale of 47 residential homes and homesites, including substantially all of the remaining condominium units at Artisan Park in Celebration, Florida.
- Completed the sale of the SevenShores condominium project in Bradenton, Florida.
- Received federal tax refunds totaling more than $32 million in cash.
- Increased the Company's cash position by $40.0 million and reduced debt by $5.8 million.
- Hired a vice president - economic development to focus on commercial development opportunities within the West Bay Sector.
Highlights Subsequent to September 30, 2009:
- Led the regional effort to facilitate Southwest Airlines' (NYSE: LUV) decision to launch service at the new international airport in Northwest Florida.
- Extended the maturity of the Company's $100 million revolving credit facility to September 19, 2012.
- Settled the outstanding Saussy Burbank notes receivable.
"During the third quarter, we continued to make progress in our efforts to stimulate demand for our land in Northwest Florida with an emphasis on our land proximate to the new international airport," said St. Joe's President and CEO Britt Greene. "The addition of a vice president of economic development and, of course, Southwest Airlines' game-changing announcement of planned service to the new airport will help to create value for our shareholders for many years to come."
Northwest Florida's New International Airport
On October 21, 2009, St. Joe and Southwest Airlines announced a strategic alliance providing for the commencement of low-fare air service to the new international airport under construction near Panama City Beach, Florida. Southwest Airlines' service at the new airport will consist of at least two daily non-stop flights from Northwest Florida to each of four destinations for a total of eight daily non-stop flights.
St. Joe continues its planning and design work on approximately 1,000 acres adjacent to the new airport, which is expected to open in May, 2010. The land is being planned for industrial, office, retail and hotel users.
"Now that the most successful airline in the country will serve the new international airport, we are accelerating our outreach efforts with site consultants and customers about opportunities to utilize our lands," said Greene. "The 'Southwest Effect' will give these users more reason to seriously consider expanding their businesses in our region."
Liquidity and Balance Sheet
At September 30, 2009, St. Joe had cash of $156.6 million and pledged treasury securities of $27.5 million, compared to debt of $43.3 million, $27.5 million of which is defeased debt. The Company's $100 million revolving credit facility remained undrawn at September 30, 2009.
During the third quarter, St. Joe's cash position increased primarily due to the receipt of federal tax refunds totaling over $32 million. Also during the third quarter, the Company's debt was reduced by $5.8 million primarily as a result of the sale of the SevenShores project.
"During the quarter we continued to refine our focus, including the sale of non-strategic Central Florida assets, enhancing our financial flexibility as we prepare for the opportunities created by the opening of the new international airport in Northwest Florida," stated William S. McCalmont, St. Joe Executive Vice President and CFO. "We are also pleased to have extended the maturity date on our revolving credit facility to September 2012 given the continuing challenges in the credit markets."
Capital expenditures for the first nine months of 2009 were $10.9 million, compared to $28.9 million for the same period in 2008, a reduction of 62 percent. In addition, St. Joe incurred cash overhead costs of $45.5 million for the first nine months of 2009, compared to $65.8 million for the same period last year, a 31 percent reduction.
Land Holdings and Entitlements
On September 30, 2009, St. Joe owned approximately 580,000 acres, concentrated primarily in Northwest Florida. Approximately 405,000 acres, or 70 percent of the Company's total land holdings, are within 15 miles of the coast of the Gulf of Mexico.
On September 30, 2009, St. Joe's land-use entitlements in hand or in process totaled approximately 43,000 residential units and approximately 13.5 million square feet of commercial space, as well as an additional 646 acres with land-use entitlements for commercial uses.
Net Loss for the first nine months of 2009 was $(70.7) million, or $(0.77) per share, compared to Net Loss of $(8.0) million, or $(0.09) per share, for the first nine months of 2008. Included in the results for the first nine months of 2009 were significant pre-tax charges of $79.1 million, or $0.52 per share after tax, compared to pre-tax charges of $51.8 million, or $0.35 per share after tax, in the first nine months of 2008.
Additional information with respect to the Company's results for the third quarter of 2009 will be available in a Form 10-Q that will be filed with the Securities and Exchange Commission today.
Conference Call Information
On November 3, 2009, at 10:30 a.m. (EST), St. Joe will host a conference call to review the Company's results for the third quarter ended September 30, 2009.
To participate in the call, please phone 866.316.1366 (for domestic calls) or 913.312.1266 (for international calls) approximately ten minutes before the scheduled start time. You will be asked for a confirmation code which is 7228714. The Company will also webcast the conference call in a listen-only format on the Company's web site at www.joe.com.
Following the call, you may access a replay of the call by phoning 888.203.1112 (for domestic calls) or 719.457.0820 (for international calls) using access code 7228714. Access to the replay will be available until November 10, 2009. A webcast archive of the conference call will be posted to the company website approximately 90 minutes following the call and will be available until November 10, 2009.