Full Year Net Income of $0.83 Per Share, or $0.67 Per Share
Excluding Conservation Land Gains
Fourth Quarter Net EBITDA of $0.54 Per Share, or $0.50 Per Share
Excluding Conservation Land Gains
Fourth Quarter Net Income of $0.23 Per Share, or $0.20 Per Share
Excluding Conservation Land Gains
Outlook For 2002 Shows Continued Growth
Press Release: The St. Joe Company
February 7, 2002
JACKSONVILLE, FL -- The St. Joe Company (NYSE:JOE) yesterday announced that its 2001 earnings before interest,
taxes, depreciation and amortization (Net EBITDA) was $162.2 million, or $1.92 per diluted share, compared with
$166.2 million, or $1.91 per diluted share, for 2000.
The 2000 results in this release are for JOE Only - that part of St. Joe remaining after the spin-off of St. Joe's
54 percent equity interest in Florida East Coast Industries, Inc. and exclude the non-recurring charges relating
to the spin-off and a non-recurring gain.
For the year 2001 Net EBITDA, excluding conservation land gains, was $139.9 million, or $1.66 per share, compared
with $122.5 million, or $1.41 per share, for the year 2000, representing increases of 14 percent and 18 percent,
respectively.
Conservation land sales produced Net EBITDA of $3.3 million for the fourth quarter of 2001 and $22.3 million for
the full year 2001, compared to $28.4 million and $43.7 million for the respective 2000 periods.
``JOE turned in another great year in 2001, providing shareholders with a total return of 26.6 percent,'' said
Peter S. Rummell, chairman and CEO of St. Joe. ``That performance highlights the benefits of our unique competitive
advantages - from our low-basis, high-quality land to our strong balance sheet. We expect to continue to capitalize
on these advantages in 2002 and beyond.''
Net income for the full year 2001 was $70.2 million, or $0.83 per diluted share, compared with $81.9 million, or
$0.94 per diluted share, for the previous year.
Net income for the full year 2001, excluding conservation land gains, was $56.4 million, or $0.67 per diluted share,
compared with $54.8 million, or $0.63 per diluted share, for the previous year.
Fourth quarter 2001 Net EBITDA was $44.6 million, or $0.54 per diluted share, compared with $61.8 million, or $0.71
per diluted share, for the same quarter in 2000.
Fourth quarter 2001 Net EBITDA, excluding conservation land gains, was $41.2 million, or $0.50 per diluted share,
compared with $33.4 million, or $0.38 per diluted share, for the same quarter in 2000, representing increases of
23 percent and 32 percent, respectively.
Fourth quarter 2001 net income was $18.8 million, or $0.23 per diluted share, compared with $33.1 million, or $0.38
per diluted share, in the same quarter of 2000.
Fourth quarter 2001 net income, excluding conservation land gains, was $16.8 million, or $0.20 per diluted share,
compared with $15.3 million, or $0.18 per diluted share, for the same quarter in 2000, representing increases of
10 percent and 11 percent, respectively.
``The fourth quarter and full year 2001 earnings exceeded our earlier guidance principally due to higher than expected
earnings at Arvida Realty Services and increased sales at Arvida Community Residential Real Estate,'' said Kevin
M. Twomey, president and COO of St. Joe.
Table 1 below summarizes Net EBITDA and net income for the full years ended December 31, 2001 and 2000, and for
the quarters ended December 31, 2001 and 2000. A reconciliation of net income to Net EBITDA can be found in Table
9.
Table 1
Excludes Non-Recurring Items in 2000
(dollars in millions except per share amounts)
Year Ended Quarter Ended
---------- -------------
Dec 31 Dec 3 Dec 31 Dec 31
2001 2000(1) 2001 2000(1)
---- ---- ---- ----
Consolidated (as reported)(1)
Net EBITDA $162.2 $203.4 $44.6 $62.8
Net EBITDA per diluted
Share 1.92 2.34 0.54 0.72
Net income 70.2 95.0 18.8 33.4
Net income per diluted Share 0.83 1.09 0.23 0.38
JOE Only(1)
Net EBITDA $162.2 $166.2 $44.6 $61.8
Net EBITDA per diluted
Share 1.92 1.91 0.54 0.71
Net income 70.2 81.9 18.8 33.1
Net income per diluted Share 0.83 0.94 0.23 0.38
Consolidated (as reported)(1)
without conservation land gains
Net EBITDA $139.9 $159.7 $41.2 $34.4
Net EBITDA per diluted
Share 1.66 1.84 0.50 0.39
Net income 56.4 67.9 16.8 15.6
Net income per diluted Share 0.67 0.78 0.20 0.18
JOE Only(1) without conservation
land gains
Net EBITDA $139.9 $122.5 $41.2 $33.4
Net EBITDA per diluted
Share 1.66 1.41 0.50 0.38
Net income 56.4 54.8 16.8 15.3
Net income per diluted Share 0.67 0.63 0.20 0.18
(1) St. Joe distributed its 54 percent equity interest in Florida
East Coast Industries (NYSE:FLA.B - news) to its shareholders on October 9,
2000. Net EBITDA reported in this release for 2000 is for JOE Only,
that part of the company remaining after the spin-off.
OUTLOOK FOR 2002
``Looking ahead, we see continued growth for 2002 with a strong foundation in place for another good year for
JOE,'' said Twomey.
``For 2002's first quarter, we expect Net EBITDA per share, excluding conservation land gains, to be in the $0.30
to $0.33 range, depending on the amount and timing of certain anticipated closings,'' said Twomey. ``Net income
for the first quarter, excluding conservation land gains, is expected to be in the $0.08 to $0.10 range per share.
As in past years, first quarter results are expected to reflect the seasonal pattern of relatively slow residential
real estate sales and brokerage activity.''
For the full year 2002, the company continues to expect Net EBITDA per share, excluding gains from conservation
land sales, to increase by approximately 10 percent compared with the previous year. Net income, excluding gains
on conservation land, for the full year 2002, is expected to be approximately $1.80 to $1.85 per share. Net income
projections include a non-cash contribution of approximately $1.10 per share relating to the gain on the forward
sale of equity securities previously described in the company's fourth quarter earnings release dated February
9, 2000.
``Our projections for 2002 are based on the assumption that the current economic situation will continue - with
neither a major recovery, nor any further weakening of the economy. In that light, we expect to advance our core
strategies in 2002, achieve significant progress in building value for our holdings in Florida's Great Northwest
and deliver excellent results for shareholders,'' said Twomey.
``Net EBITDA for Arvida Community Residential Real Estate is projected to increase approximately 10 percent or
more, over 2001,'' said Rummell. ``These results reflect continued solid progress at WaterColor, a near tripling
of the contribution from WaterSound, and contributions from a number of primary home communities such as James
Island, St. John's Golf and Country Club, SouthWood and Victoria Park.
``Importantly, the growing performance of new Arvida communities occurs as the contribution from our highly successful
investment in the Arvida/JMB partnership substantially winds up by year-end 2002,'' said Rummell. ``Contributions
from the Arvida/JMB partnership in 2002 are expected to be approximately half of what they were last year.
``We expect to make significant progress in the planning and entitlement of resort communities in Gulf, Bay and
Franklin counties in Northwest Florida, although they will not contribute to 2002 earnings,'' said Rummell. ``This
progress, even without the continuing income from the Arvida/JMB partnership, will position the company for solid
earnings growth in 2003 and beyond.''
In 2002, Arvida Realty Services expects to improve Net EBITDA by approximately 5 percent.
During 2002, St. Joe Commercial will continue to focus on the development and sale of retail and commercial properties
in Florida's Great Northwest. ``We expect St. Joe Commercial Net EBITDA to be flat, or up modestly, compared with
2001, even without gains totaling $10.2 million from transactions such as the NCCI and IBM projects that occurred
last year,'' said Twomey.
``JOE continues to acquire multi-tenant buildings through our strategy to defer taxes on land sale gains,'' said
Twomey. ``This source of lease income is expected to grow and become a more meaningful and stable element of our
ongoing performance. These buildings produced approximately $9.0 million Net EBITDA in 2001. This source of income
should increase by approximately 70 percent in 2002. With the completion of the purchase of an office building
in Washington, D.C. on December 27, 2001, the company has acquired over 1.1 million square feet of buildings through
this program. We expect to continue to grow this investment and source of income.
``For 2002, we expect continued good results from the St. Joe Land Company, although without the benefit of as
many large parcel sales projected for 2002 as in prior years,'' said Twomey. ``Therefore, we are projecting Net
EBITDA for St. Joe Land in the low $30 million range.
``Again in 2002, we are working to deliver the best possible results at St. Joe Land Company and beat these projections,''
said Twomey. ``St. Joe Land starts 2002 with a stronger book of contracts than ever, and so far this quarter we've
had good results.
``We fully anticipate having sufficient resources available to fund our development, investment and share repurchase
programs,'' said Twomey.
Cash demands, particularly for residential development, are expected to be higher this year than in future years,
as 2002 includes large capital investments on several projects in the Community Residential segment where related
sales activity will occur in future years. Specifically, the company expects to construct condominiums at WaterSound
in 2002 depending on an acceptable level of pre-sale activity. However, closings on sales of the condominiums will
occur in 2003. The company is also funding infrastructure and amenity construction at the SouthWood and Victoria
Park projects. In addition, St. Joe is funding the planning and infrastructure development process for new signature
projects in Bay, Franklin, Gulf and St. Johns counties. These projects won't have any sales activity in 2002.
STOCK REPURCHASE PROGRAM
During the fourth quarter of 2001, the company repurchased a total of 948,200 shares.
In 2001, St. Joe repurchased 7,071,300 shares at an average price of $24.68 per share. That represents approximately
8.4 percent of the outstanding shares on December 31, 2000.
At December 31, 2001, the company had 79,509,608 shares outstanding, of which 46,674,300 shares were held by the
Alfred I. duPont Testamentary Trust, the majority stockholder of the company, or the Trust's primary beneficiary,
The Nemours Foundation.
Table 2
Stock Repurchase Activity
As of December 31, 2001
From Public From Trust Total Average Price
----------- ---------- ---------- -------------
Pre-Spin(2)
Authorization No. 1 6,485,311 - 6,485,311 $23.09
Authorization No. 2 636,955 - 636,955 $27.91
----------- ---------- -------------
Subtotal 7,122,266 - 7,122,266 $23.52
----------- ---------- -------------
Post-Spin(2)
Authorization No. 2 3,016,375 2,923,800 5,940,175 $22.23
Authorization No. 3 1,865,725 1,077,600 2,943,325 $26.91
----------- ---------- ---------- -------------
Subtotal 4,882,100 4,001,400 8,883,500 $23.78
----------- ---------- ---------- -------------
Total 12,004,366 4,001,400 16,005,766 $23.67
=========== ========== ========== =============
(2) St. Joe distributed the shares it owned of Florida East Coast
Industries (NYSE:FLA.B - news) to its shareholders on October 9, 2000.
``We expect to repurchase between $100 million and $120 million in St. Joe stock over the course of 2002,'' said
Twomey. At the end of 2001, $120.7 million remained of the company's third stock repurchase authorization of $200
million.
PANAMA CITY AIRPORT UPDATE
On December 18, 2001, President George Bush signed the 2002 Transportation Appropriations Act into law which contained
language that designated the relocation of the Panama City -Bay County International Airport as a ``high priority''
and earmarked $2.0 million in federal funds for the project. ``This is a small, but another important step in a
multi-year process,'' Rummell said.
Last year, the Federal Aviation Administration (FAA) provided tentative approval to a site in west Bay County on
land held by St. Joe as the location for the proposed relocated airport. This follows FAA approval of an Panama
City - Bay County Airport Authority study that recommended the relocation of the airport due to traffic forecasts,
encroachment issues, safety concerns, conflict with military airspace, cost-benefits and other issues.
The Airport Authority received $10 million in grants from the State of Florida in July 2001 to support the project.
In August, the Airport Authority authorized its consulting team, led by Bechtel Infrastructure, Inc., to proceed
with a scope of work that includes planning, design and environmental assessments.
Representatives of local government agencies and St. Joe are currently working on the planning process for approximately
74,000 acres known as the ``West Bay Area Vision Plan.'' Along with the new airport facilities to be located there,
St. Joe is proposing a number of development projects in the West Bay plan. The plan is expected to be completed
at the county level later this year and submitted to the state. Environmental analysis of the airport site is expected
to continue for most of 2002.
SEGMENT RESULTS
COMMUNITY RESIDENTIAL REAL ESTATE
---------------------------------
Arvida Community Development's Net EBITDA for the fourth quarter of 2001 was $18.3 million, compared with $18.7
million in the fourth quarter of 2000. For the full year, Arvida Community Development's Net EBITDA was $54.0 million,
compared with $47.3 million for the full year 2000, a 14 percent increase.
``Despite the tragic events of September 11, this was a strong year for our residential development program on
and off the beach across Northwest Florida,'' said Rummell. ``Sales and traffic at Northwest Florida communities
strengthened throughout the year.
``In the last several weeks of the fourth quarter, WaterColor and WaterSound experienced the strongest sales activity
ever for this time of year,'' said Rummell. ``Qualified sales traffic has been exceptionally good, despite the
fact we are in the seasonally slowest part of the year.
``The opening of the 60-room WaterColor Inn may be one of the most significant events both for Northwest Florida
and for St. Joe,'' said Rummell. ``Set on a white-sand beach, often voted one of the nation's best, the Inn was
designed to set a new standard for casual luxury not only in Northwest Florida, but the Southeast as well.
``The Inn is designed to appeal to a broad range of Baby Boomers and upscale beach vacationers providing new exposure
to the full range of our real estate products and especially our beachfront communities at WaterColor, WaterSound
and WindMark,'' said Rummell. ``We believe the WaterColor Inn will have a substantial impact on people's perception
of Northwest Florida.''
Table 3
Summary of Operating Results
Arvida Community Development
($ in millions)
Three Months
Ended December 31
2001 2000
--------------------------------------------------------------
Number Revenue Gross Profit Number Revenue Gross Profit
------ ------- ------------ ------ ------- ------------
Closing
Lots 69 $13.9 $ 9.6 37 $11.5 $ 8.9
Homes 313 68.1 9.6 133 40.1 7.0
--- ----- ----- --- ----- -----
Total 382 $82.0 $19.2 170 $51.6 $15.9
--- ===== ===== === ===== =====
Year-To-Date
Through December 31
2001 2000
--------------------------------------------------------------
Number Revenue Gross Profit Number Revenue Gross Profit
------ ------- ------------ ------ ------- ------------
Closing
Lots 301 $49.7 $31.6 138 $34.9 $26.3
Homes 731 184.6 30.2 411 103.4 14.9
--- ----- ----- --- ----- -----
Total 1,032 $234.3 $61.8 549 $138.3 $41.2
===== ====== ===== === ====== =====
Northwest Florida
WaterColor
In the fourth quarter, contracts closed on 4 home sites and 19 housing units at WaterColor. During the quarter,
contracts for an additional 8 home sites and 7 residences were accepted at average prices of $333,600 and $518,900,
respectively.
Since WaterColor's inception, through December 31, 2001, contracts pending or closed totaled 202 units. WaterColor
is expected to have 1,140 units at build-out.
Delivery and closings of the first of the 22 premium Gulf-front residences, designed by noted Boston architect
Graham Gund, got underway in the fourth quarter.
The WaterColor Inn designed by David Rockwell, opens March 1st. Fish Out of Water, the exquisite 180-seat restaurant,
also designed by Rockwell, opens in March as well.
Boating facilities on Western Lake are complete. A casual lakeside restaurant, with family dining and an authentic
coastal menu, along with a second community swimming pool are scheduled to open Memorial Day weekend.
Earnings from WaterColor are expected to continue for another 7 to 9 years.
WaterSound
In the fourth quarter, contracts were closed on 16 home sites at WaterSound. During the quarter, additional contracts
and reservations were accepted for 8 home sites at an average price of $458,000. Since WaterSound's inception,
through December 31, 2001, reservations and contracts pending or closed totaled 73 units. WaterSound is expected
to have 390 units at build-out.
Sales of 81 beachfront multifamily units designed by Graham Gund, are expected to begin this spring.
Earnings from WaterSound are expected to continue for another five to six years.
SouthWood
In the fourth quarter, contracts were closed on 5 home sites and 29 homes at SouthWood. During the quarter, contracts
for an additional 14 home site and 18 housing units were accepted at SouthWood at average prices of $108,700 and
$218,400, respectively.
From SouthWood's inception, through December 31, 2001, contracts pending or closed totaled 199 units. SouthWood
is planned for more than 4,250 homes plus a variety of retail shops, restaurants, community facilities, light industrial
sites and professional offices.
Set on 3,250 acres of rolling hills, open pastures, natural lakes and towering live oaks, SouthWood is located
just seven miles from Florida's capitol building.
Earnings from SouthWood are expected for the next 18 to 20 years.
WindMark Beach
During the fourth quarter, contracts for 20 home sites were closed at WindMark Beach, the first phase of WindMark
in Gulf County. To date through December 31, 2001, contracts for 25 home sites have been accepted or closed at
an average price of $204,800.
Construction of a sales center, model home and other amenities began early in the fourth quarter in the 80-acre
community. A grand opening for these amenities is scheduled for this summer. Plans for WindMark Beach include 110
home sites, a pool club and several community docks, as well as an extensive conservation area accessible by boardwalks
and trails.
Earnings from WindMark Beach are expected to continue for three to four years.
WindMark
Arvida has started planning for WindMark, a beachfront community adjacent to WindMark Beach in Gulf County.
In January 2002, the Gulf County Commission voted to accept a St. Joe proposal to relocate a portion of US Highway
98, paving the way for the future development of WindMark. The proposed new community requires a DRI and is being
planned for approximately 1,500 units with a beach club and golf course on 1,000 acres of former timberland.
SummerCamp
Arvida announced in the fourth quarter plans to develop SummerCamp, a new beachfront vacation community in southeastern
Franklin County. Located on about 650 acres of former St. Joe timberland 45 miles south of Tallahassee, SummerCamp
is a family destination on the Gulf of Mexico. Current plans call for 499 units.
``Our objective is to develop SummerCamp in a way that respects and enhances the special personality of this region
of Florida,'' said Rummell. ``We want SummerCamp to capture the charm of Old Florida. We will emphasize respect
for the land and water - and the wonderful traditions and quality of life found in Franklin County.''
Sales are expected to begin in early 2003.
Northeast Florida
St. Johns Golf & Country Club
In the fourth quarter, contracts were closed on 7 home sites and 43 homes at St. Johns Golf & Country Club.
During the quarter, contracts for an additional 7 home sites and 22 homes at St. Johns were accepted at average
prices of $38,700 for home sites and $302,500 for homes.
Since St. Johns' inception, through December 31, 2001, contracts pending or closed totaled 204 units at this 799-unit
residential development just outside Jacksonville in St. Johns County. As a result, infrastructure construction
is now underway on the second phase.
Earnings are expected to continue for 5 to 6 years.
James Island
A total of 24 contracts for homes were closed in the fourth quarter at James Island in Jacksonville. Contracts
were accepted during the quarter for an additional 14 units with home prices averaging $287,000. With 99 units
remaining in the 365-unit development, sales at James Island are expected to be concluded in early 2003.
Central Florida
Victoria Park
Contracts for 1 home site and 11 homes and were closed in the fourth quarter at Victoria Park located between Orlando
and Daytona Beach, set on 1,859 acres in the historic college town of De Land. Contracts were accepted on an additional
one home site and 9 homes at an average price of $64,000 for the home site and $172,200 for the homes. This mixed-used
community is planned for approximately 4,000 residences built among parks, lakes and conservation areas.
``We are off to a slow start at Victoria Park, but once the amenity package is complete, we expect the pace of
sales to accelerate,'' said Rummell. ``During the fourth quarter of 2001, Arvida continued horizontal and amenity
development. An 18-hole golf course opened to excellent reviews in December.'' In the fourth quarter construction
got underway on the Club at Victoria Gardens, a 20,000-square-foot facility designed for pre-retirees and active
adults that includes meeting facilities, a wellness center and a cafe. Homes have now been delivered in all three
of the community's neighborhoods.
Earnings are expected to begin in 2002 and continue for at least 10 years.
Other Residential
Saussy Burbank, a premier home builder based in Charlotte, N.C., had Net EBITDA of $2.9 million for the fourth
quarter of 2001, compared with $1.2 million in the fourth quarter of 2000. During the fourth quarter of 2001, Saussy
contracted for 86 homes at an average price of $195,200. For the full year 2001 Saussy had Net EBITDA of $6.0 million,
compared with $5.4 million for the full year 2000.
ARVIDA REALTY SERVICES
----------------------
Arvida Realty Services (ARS) had Net EBITDA of $6.7 million for the fourth quarter of 2001, compared with $4.6
million in the fourth quarter of 2000. For the full year of 2001 ARS had Net EBITDA of $27.0 million, compared
with $20.3 million for the previous year.
As Florida's largest independent full-service real estate brokerage firm, ARS posted gross revenues of $66.9 million
during the fourth quarter of 2001, a 5 percent increase compared with $63.7 million generated in the same quarter
of 2000.
``Activity levels from September at ARS built steadily, but unevenly, with some markets recovering faster than
others,'' said Rummell. ``There were soft pockets in some of Florida's major markets, particularly with high-end
properties. However, low mortgage interest rates continued to stimulate sales at the lower price points.''
Arvida Mortgage and Title Services
In early 2001, ARS expanded its mortgage brokerage business and began to originate, process and fund home mortgages,
which are being sold immediately in the secondary market.
In the fourth quarter, 21 percent of ARS's mortgagable transactions used the company's mortgage origination services,
compared to 17 percentage in the same quarter a year ago. In addition, in the fourth quarter ARS increased the
volume of its title insurance business by 45 percent compared with the same quarter the previous year.
For the full year 2001, ARS originated $542 million in mortgages compared to $350 million in 2000.
ST. JOE LAND COMPANY
--------------------
St. Joe Land Company had sales of $11.7 million in the fourth quarter of 2001 and Net EBITDA of $9.1 million, compared
with sales of $11.0 million and Net EBITDA of $7.9 million in the fourth quarter of 2000. For the full year of
2001, St. Joe Land had Net EBITDA of $41.6 million, compared with $50.0 million for the previous year.
``St. Joe Land had an excellent fourth quarter,'' said Rummell. ``And we continue to be delighted with the progress
and prospects of St. Joe Land. In both 2000 and 2001 St. Joe Land exceeded expectations as a result of several
unanticipated major transactions, as well as from progress on the sale of a larger number of smaller parcels. However,
St. Joe Land has made significant progress supplementing the gains from large transactions with smaller ones, an
important step toward becoming a more retail-oriented business at excellent per-acre prices.''
``To build future sources of earnings, St. Joe Land has underway a five-year program seeking additional entitlements
and zoning improvements throughout its land holdings,'' said Twomey. ``These entitlements are designed to enhance
density, facilitate alternative uses and increase yield per acre. St. Joe Land's bank-financing program is now
operational, and we believe it will help stimulate the sale of smaller parcels.''
St. Joe Land exceeded its goal of building a $200 million land inventory sold or available on its web site by year's
end 2001.
Table 4
St. Joe Land Company
For Quarter Ended December 31, 2001
Number of Number Average Gross Sales Gross Profit
Land Parcels of Price Price
Use Sold Acres Per Acre (in millions) (in millions)
---- --------- ------ ------- ------------- -------------
Commercial - - $ - $ - $ -
Non-commercial 26 7,063 1,657 11.7 10.5
-- ----- ------ ----- -----
Total 26 7,063 $1,657 $11.7 $10.5
== ===== ====== ===== =====
St. Joe Land Company
Year-To-Date Through December 31, 2001
Number of Number Average Gross Sales Gross Profit
Land Parcels of Price Price
Use Sold Acres Per Acre (in millions) (in millions)
---- --------- ------ ------- ------------- -------------
Commercial 7 29 $44,828 $ 1.3 $ 0.7
Non-commercial 162 26,520 1,900 50.4 45.0
--- ------ ------- ----- -----
Total 169 26,549 $ 1,947 $51.7 $45.7
=== ====== ======= ===== =====
RIVERCAMPS
----------
With a development team now assembled, master planning and entitlements accelerated in the fourth quarter for a
number of RiverCamps, the company's newest product. In addition, planning for both production and custom cabin
product got underway in the fourth quarter.
RiverCamps are planned settlements in a rustic setting throughout Northwest Florida - each designed to respond
to its unique location. RiverCamps are being positioned as a real estate product that will provide easy access
to the beautiful rivers, bays and waterways of the region by offering a personal retreat in a private, woodland
preserve, with the services and activities buyers need to enjoy it to the fullest. Each RiverCamp is envisioned
as a one to two acre cabin site sold fee simple, along with an undivided interest in a larger conservation parcel.
Potential sites, ranging in size from 1,500 to 7,500 acres are being evaluated. All have water access.
``Our initial target price remains $8,000 to $10,000 per gross acre for the first location,'' said Twomey. ``Consumer
pricing will vary by location, water access, views and other factors. While this first location provides the appropriate
density, we are in the process of seeking entitlements for higher densities at other RiverCamp locations to increase
yield per acre. In addition, once the program is underway, the average price per acre should increase.''
Construction of a cabin prototype has been completed and architectural design of production cabins is well underway.
CONSERVATION LAND
-----------------
Conservation Land's Net EBITDA for the fourth quarter of 2001 was $3.3 million, compared with $28.4 million during
the fourth quarter of 2000. For the full year of 2001, Conservation Land had Net EBITDA of $22.3 million, compared
with $43.7 million in 2000. Five conservation parcels totaling 18,078 acres were sold in 2001.
The sale of 2,600 acres in Devil's Swamp in Walton County in Northwest Florida closed during the fourth quarter.
This parcel was sold to the Northwest Florida Water Management District for $3.7 million.
The Florida governor and state cabinet approved a contract in December for the purchase of the 7,048-acre Sweetwater
Creek Ravines in Liberty County. The Florida Department of Environmental Protection is purchasing the land for
an expansion of the state park system. The contract purchase price is $7.2 million, and a closing is expected in
the spring this year.
Currently, there is activity underway to sell, by year-end 2002, as many as 12 additional parcels, totaling approximately
54,000 acres of conservation land, to state and private conservation interests. Additionally, 12 tracts totaling
more than 120,000 acres are being considered for sale in years 2003 to 2006. ``The timing and sequence of these
transactions is uncertain and some transactions could be delayed,'' said Twomey. ``While the State of Florida is
currently reviewing budgets for the coming year, there are a number of potential buyers of this type of property
including The Nature Conservancy, water management districts and government agencies.''
COMMERCIAL REAL ESTATE
----------------------
Net EBITDA for St. Joe Commercial, which includes Advantis Real Estate Services Company, the commercial real estate
services arm of St. Joe, totaled $7.5 million for the fourth quarter of 2001, compared with a loss of $(0.4) million
in the same quarter of 2000. For the full year 2001 St. Joe Commercial had Net EBITDA of $18.7 million, compared
with $2.1 million for the full year 2000.
On October 11, 2001, St. Joe Commercial sold the 160,000-square-foot facility it developed for IBM Corporation
at Beacon Square in Boca Raton, Florida, for $33.8 million, or a pretax gain of approximately $5.7 million.
Earlier in 2001, St. Joe Commercial generated approximately $4.5 million in gains on the sale of the NCCI building
in Boca Raton. The division also generated $37.7 million of proceeds on the disposition of Texas properties. ``During
2002, St. Joe Commercial expects to tighten its focus on the development and sale of retail and commercial properties
in Florida's Great Northwest,'' said Twomey.
Advantis Commercial Real Estate Services had losses of ($1.0) million and ($2.9) million for the fourth quarter
and the full year of 2001, respectively. ``Although these results have been disappointing, this has been a difficult
year for the commercial real estate services industry, and a transition year for Advantis,'' said Twomey. ``With
a new management team now in place, Advantis has instituted important advances in property management, recruiting
and staffing and we believe Advantis' performance will be much improved this year.''
Northwest Florida
Pier Park
A groundbreaking is expected this spring on Pier Park in Panama City Beach. Pier Park is designed to bring an exciting
commercial, retail and entertainment destination to Panama City Beach, expand the tourist season and add value
to St. Joe's land holdings in Bay County. St. Joe Commercial and the City of Panama City Beach have joined in a
public-private partnership to develop Pier Park.
A Bay County circuit court ruled in December that bonds to be used for infrastructure at Pier Park did not qualify
for a community redevelopment designation. In January 2002, after a request for clarification, the court ruled
that the project could issue infrastructure bonds. With the new ruling, the bonds can be issued upon expiration
of a 30-day appeal period.
Also in January, the Panama City Beach Commission approved a DRI Development Order for approximately one million
square feet of commercial space for Pier Park. Final approval is subject only to the concurrence of the Florida
Department of Community Affairs.
With the delay caused by the court's initial ruling and the resulting loss of a spring 2003 beachfront opening,
the project is being re-sequenced to begin work this year on the retail components along US Highway 98, rather
than starting on the beachfront as previously planned.
Beckrich Office Park
A grand opening is scheduled for spring 2002 for building one at Beckrich Office Park in Panama City Beach. The
34,000-square-foot building will be home to the Northwest Florida offices of St. Joe Commercial and St. Joe's economic
development team. The Panama City Beach office of Advantis is marketing the remaining space in the building, which
is now 43 percent leased.
In December, St. Joe Commercial delivered Nextel Partners' 67,000-square-foot Customer Care Center seven months
after groundbreaking. Nextel Partners employees began arriving for work at the new facility in the first week of
January. Nextel plans to bring up to 600 new jobs to Bay County that could contribute approximately $10 million
annually to the local economy. Nextel occupies 100 percent of the building.
Beach Commerce Center
Horizontal development, including roadways, landscaping and utilities, was completed in the fourth quarter. Sales
have been strong with contracts pending or closed on 6 light industrial parcels. Pricing started at approximately
$45,000 per acre, and is now approaching $100,000 per acre. The Panama City office of Advantis is marketing the
parcels within the 180-acre project to light industrial and distribution users.
``We see Beach Commerce Center as a prototype for at least three other light industrial parks across Northwest
Florida as a source of stable and growing future earnings,'' said Twomey.
The Offices at SouthWood
The first building in the Offices at SouthWood is nearing completion. SouthWood One, a 88,000-square-foot, three-story
structure, is the initial building in a series of Class-A offices to be developed in the SouthWood community by
St. Joe Commercial. Completion is scheduled for later this spring with the Tallahassee office of Advantis marketing
and leasing the building.
Northeast Florida
TNT Logistics North America
Construction is near completion at TNT Logistics North America's new headquarters building in Jacksonville. TNT
has leased 67 percent of the 99,000-square-foot building, and the Jacksonville office of Advantis is marketing
the remaining office space. Occupancy is expected in March 2002.
Tree of Life at Golfway Center
The Tree of Life headquarters at Golfway Center adjacent to the World Golf Village in St. Augustine was completed
in December 2001. Tree of Life, a leading marketer and distributor of natural and specialty food products, has
now leased 100 percent of the 69,000-square-foot building. The Jacksonville office of Advantis handled marketing
and leasing.
245 Riverside Avenue
On January 23, 2002, St. Joe Commercial held a groundbreaking ceremony for 245 Riverside Avenue in downtown Jacksonville.
The 135,000-square-foot building will be located on the St. Johns River and will house the corporate headquarters
of The St. Joe Company in 30,000 square feet. The Jacksonville office of Advantis will market the remaining space
in the five-story building. Occupancy is expected in the first quarter of 2003.
Positions Outside Florida
In the fourth quarter of 2001, St. Joe Commercial sold a portion of a Georgia property that was previously acquired
for future development. The 4-acre parcel in Atlanta was sold for $6.1 million. The Atlanta office of Advantis
represented St. Joe in the transaction. ``This sale is a part of our strategy to monetize our non-Florida land
positions originally intended for commercial development,'' said Twomey.
Investment Property Portfolio
St. Joe continues to redeploy the proceeds of land sales in a tax-deferred manner through the acquisition of commercial
office buildings in select markets within the southeastern United States.
``We have further refined our capital redeployment program and are now identifying solid investment products in
key southeastern real estate markets,'' said Twomey. ``Our objective is to acquire approximately one million square
feet of space, over time, in each of these markets.''
In the fourth quarter, the company redeployed $37.6 million of these funds into a commercial office building at
1750 K Street in Washington, DC that is 96 percent leased. Advantis negotiated the transaction for St. Joe and
will manage the property.
St. Joe's portfolio of commercial office buildings, acquired through the capital redeployment program, now approximates
one million square feet and represents an aggregate investment of more than $154 million.
Table 5
Operating performance of income producing properties currently owned
by the company as part of its capital redeployment program
For Three Months and Twelve Months
Ending December 31, 2001
($ in Thousands)
Net Net
Operating Operating
Income Producing Income Income Percentage
Properties Location 3 Months 12 Months Leased
---------------- -------- --------- --------- ----------
Harbourside Clearwater, FL $284 $1,215 81%
Prestige Place
I & II Clearwater, FL 333 1,316 89
Lakeview Tampa, FL 332 1,283 90
Palm Court Tampa, FL 134 596 93
Westside Corporate
Center Plantation, FL 230 923 85
280 Interstate
North Atlanta, GA 338 1,343 92
Southhall Center Orlando, FL 475 1,521 95
1133 20th Street Washington, DC 711 879 99
1750 K Street Washington, DC 61 61 96
ST. JOE TIMBERLAND COMPANY
--------------------------
Net EBITDA for the forestry segment totaled $2.4 million for the fourth quarter of 2001, compared with $3.3 million
in the respective 2000 period. For the full year 2001, St. Joe Timberland had Net EBITDA of $13.0 million, compared
with $16.7 million in 2000.
``During the fourth quarter, prices for wood fiber products remained low,'' said Twomey. ``However, near the end
of the quarter, saw-timber prices seemed to stabilize.
``The principal strategy for St. Joe Timberland Company is to build value by enhancing the value of land for use
by the residential, commercial and St. Joe Land divisions of the company, and by growing and selling timber products
to others,'' said Twomey. ``During 2002, we expect Timberland EBITDA to be about even with 2001. Aside from meeting
timber obligations under existing supply contracts, we do not intend to aggressively sell timber in this depressed
market. We'll just let more timber grow, build value and sell it for a higher use in a better market.''
OTHER INCOME (EXPENSE)
----------------------
Other Income (Expense), which includes dividend and interest income, gains or losses on the sales of investments
and non-operating assets, gains or losses on derivative valuation, miscellaneous income and interest expense was
$(3.1) million in the fourth quarter of 2001, compared with $(1.1) million in the fourth quarter of 2000. For the
full year of 2001, Other Income (Expense) was $(4.0) million, compared with $1.6 million the year before.
Interest expense totals $5.7 million for the fourth quarter of 2001, compared to $3.7 million for the fourth quarter
of 2000. Full year interest expense totals $18.1 million for 2001, compared $10.2 million for 2000.
Included in Other Income (Expense) are non-cash gains of $0.5 million in the fourth quarter and $4.0 million for
the full year 2001, based on the valuation of the company's derivatives.
CASH AND DEBT
Table 6
Cash and Debt
At December 31, 2001
($ in millions)
Cash, cash equivalents and short-term investments $ 63.9
------------------------------------------------- ======
Debt
----
Revolving $250 million debt facility $205.0
Acquisition and other debt 4.6
Collateralized/specific asset related debt 288.4
------
$498.0
======
Table 7
Consolidated Quarterly Comparisons
(As Reported)
($ in millions except per-share amounts)
Year-Ended Year-Ended Quarter-Ended Quarter-Ended
December 31 December 31 December 31 December 31
2001 2000 2001 2000
---- ---- ---- ----
Total revenues $868.4 $880.8 $244.4 $216.3
Operating
expenses 702.4 638.5 198.6 144.3
Depreciation and
amortization 29.6 54.9 8.1 7.8
Corporate expenses 18.8 25.1 3.8 7.6
Impairment losses 0.5 3.4 0.5 3.4
------ ------ ------ ------
Operating profit 117.1 158.9 33.4 53.2
Other income
(expense) (4.0) 8.0 (3.1) (1.0)
------ ------ ------ ------
Income before
taxes and
minority
interest 113.1 166.9 30.3 52.2
Income tax expense 42.3 56.6 10.9 10.5
Minority interest 0.6 10.0 0.6 0.6
------ ------ ------ ------
Net income $ 70.2 $100.3 $ 18.8 $ 41.1
====== ====== ====== ======
Net income per
diluted share $ 0.83 $ 1.15 $ 0.23 $ 0.47
====== ====== ====== ======
Net income
excluding
non-recurring
items $ 70.2 $ 95.0 $ 18.8 $ 33.4
====== ====== ====== ======
Net income per
diluted share
excluding non-
recurring items $ 0.83 $ 1.09 $ 0.23 $ 0.38
====== ====== ====== ======
Net income
excluding
non-recurring
items and
conservation
land sales $ 56.4 $ 67.9 $ 16.8 $ 15.6
====== ====== ====== ======
Net income per
diluted share
excluding non-
recurring items
and conservation
land sakes $ 0.67 $ 0.78 $ 0.20 $ 0.18
====== ====== ====== ======
Net EBITDA $162.2 $196.7 $ 44.6 $ 57.3
====== ====== ====== ======
Net EBITDA per
diluted share $ 1.92 $ 2.26 $ 0.54 $ 0.66
====== ====== ====== ======
Net EBITDA
excluding
non-recurring
items $162.2 $203.4 $ 44.6 $ 62.8
====== ====== ====== ======
Net EBITDA per
diluted share
excluding
non-recurring
items $ 1.92 $ 2.34 $ 0.54 $ 0.72
====== ====== ====== ======
Net EBITDA
excluding
non-recurring
items and
conservation
land gains $139.9 $159.7 $ 41.2 $ 34.4
====== ====== ====== ======
Net EBITDA per
diluted share
excluding non-
recurring items
and conservation
land gains $ 1.66 $ 1.84 $ 0.50 $ 0.39
====== ====== ====== ======
Weighted average
diluted shares
outstanding 84,288,746 86,867,464 82,859,821 87,144,392
Table 8
St. Joe Only
Consolidated Quarterly Comparisons
(As Reported)
($ in millions except per-share amounts)
Year-Ended Year-Ended Quarter-Ended Quarter-Ended
December 31 December 31 December 31 December 31
2001 2000 2001 2000
------------ ------------ ------------- -------------
Total
revenues $868.4 $676.4 $244.4 $209.8
Operating
expenses 702.4 493.7 198.6 139.5
Depreciation
and
amortization 29.6 22.9 8.1 6.9
Corporate
expenses 18.8 25.1 3.8 7.6
Impairment
losses 0.5 3.4 0.5 3.4
------------ ------------ ------------- -------------
Operating
profit 117.1 131.3 33.4 52.4
Other income
(expense) (4.0) 1.6 (3.1) (1.1)
------------ ------------ ------------- -------------
Income before
taxes and
minority
interest 113.1 132.9 30.3 51.3
Income tax
expense 42.3 42.9 10.9 10.2
Minority
interest 0.6 0.4 0.6 0.3
------------ ------------ ------------- -------------
Net income $ 70.2 $ 89.6 $ 18.8 $ 40.8
============ ============ ============= =============
Net income
per diluted
share $ 0.83 $ 1.03 $ 0.23 $ 0.47
============ ============ ============= =============
Net income
excluding
non-
recurring
items $ 70.2 $ 81.9 $ 18.8 $ 33.1
============ ============ ============= =============
Net income
per diluted
share
excluding
non-
recurring
items $ 0.83 $ 0.94 $ 0.23 $ 0.38
============ ============ ============= =============
Net income
excluding
non-
recurring
items
and
conservation
land gains $ 56.4 $ 54.8 $ 16.8 $ 15.3
============ ============ ============= =============
Net income
per diluted
share
excluding
non-
recurring
items and
conservation
land gains $ 0.67 $ 0.63 $ 0.20 $ 0.18
============ ============ ============= =============
Net EBITDA $162.2 $160.7 $ 44.6 $ 56.3
============ ============ ============= =============
Net EBITDA
per diluted
share $ 1.92 $ 1.85 $ 0.54 $ 0.65
============ ============ ============= =============
Net EBITDA
excluding
non-
recurring
items $162.2 $166.2 $ 44.6 $ 61.8
============ ============ ============= =============
Net EBITDA
per diluted
share
excluding
non-
recurring
items $ 1.92 $ 1.91 $ 0.54 $ 0.71
============ ============ ============= =============
Net EBITDA
excluding
non-
recurring
items and
conservation
land gains $139.9 $122.5 $ 41.2 $ 33.4
============ ============ ============= =============
Net EBITDA
per diluted
share
excluding
non-
recurring
items and
conservation
land gains $ 1.66 $ 1.41 $ 0.50 $ 0.38
============ ============ ============= =============
Weighted
average
diluted
shares
outstanding 84,288,746 86,867,464 82,859,821 87,144,392
Table 9
Reconciliation of Net Income to Net EBITDA
Net EBITDA Excludes Non-Recurring Items in 2000
($ in millions except per share amounts)
Year-Ended Year-Ended Quarter-Ended Quarter-Ended
December 31 December 31 December 31 December 31
2001 2000 2001 2000
------------ ------------ ------------- -------------
Net Income $ 70.2 $ 89.6 $18.8 $40.8
Plus:
Income tax
expense 42.3 42.9 10.9 10.2
Depreciation
and
amortization 29.6 22.9 8.1 6.9
Interest
expense 22.1 11.7 6.9 4.5
Spin-off
related
costs 2.1 5.5 0.5 5.5
Impairment
loss - 3.4 - 3.4
Less:
(Gain)/loss
on
settlement - (9.8) - (9.8)
(Gain)/loss
on
derivatives
valuation (4.0) - (0.5) -
Minority
interest (0.1) - (0.1) 0.3
------------ ------------ ------------- -------------
Net EBITDA $162.2 $166.2 $44.6 $61.8
============ ============ ============= =============
Table 10
Quarterly Segment Net EBITDA
Excluding Non-recurring Items
($ in millions)
Dec 31, Sept 30, June 30, March 31, Dec 31,
2001 2001 2001 2001 2000
---------- ---------- ---------- ---------- ---------
Community
residential
real estate $18.3 $15.9 $11.9 $7.9 $18.7
Residential
realty
services 6.7 8.6 9.4 2.3 4.6
Commercial
real estate 7.5 2.7 6.6 1.9 (0.4)
St. Joe Land 12.4 15.8 21.1 14.4 36.4
Forestry 2.4 2.8 3.8 4.0 3.3
Transportation (0.5) (0.4) (0.5) (0.4) (0.1)
Hospitality - - - (0.1) 0.1
Corporate
and other (2.2) (3.2) (4.0) (2.9) (0.8)
Discontinued
operations
(Sugar) - - - - -
---------- ---------- ---------- ---------- ---------
Total JOE
Only $44.6 $42.2 $48.3 $27.1 $61.8
========== ========== ========== ========== =========
FECI (Net) - - - - 1.0
Consolidated
St. Joe $44.6 $42.2 $48.3 $27.1 $62.8
========== ========== ========== ========== =========
Weighted
average
diluted
Shares
outstanding 82,859,821 83,762,776 84,606,865 86,012,932 87,144,392
Sept 30, June 30, March 31, Dec 31,
2000 2000 2000 1999
---------- ---------- ---------- ----------
Community
residential
real estate $14.4 $9.6 $4.5 $17.9
Residential
realty
services 6.1 7.3 2.3 3.4
Commercial
real estate (0.8) 2.6 0.7 (5.0)
St. Joe Land 24.5 14.9 17.9 3.1
Forestry 3.0 3.5 6.9 1.8
Transportation (0.3) (0.2) 0.6 1.1
Hospitality 0.1 0.1 (0.2) -
Corporate
and other (4.6) (5.0) (3.5) (2.1)
Discontinued
operations
(Sugar) - - - 0.4
---------- ---------- ---------- ----------
Total JOE
Only $42.4 $32.8 $29.2 $20.6
========== ========== ========== ==========
FECI (Net) 11.1 11.6 13.5 17.3
Consolidated
St. Joe $53.5 $44.4 $42.7 $37.9
========== ========== ========== ==========
Weighted
average
diluted
Shares
outstanding 86,865,685 86,922,557 86,537,245 87,672,123
Table 11
Quarterly Segment Net EBITDA Per Share
Excluding Non-recurring Items
($ in millions)
Dec 31, Sept 30, June 30, March 31, Dec 31,
2001 2001 2001 2001 2000
---------- ---------- ---------- ---------- ---------
Community
residential
real Estate $.22 $.19 $.14 $.09 $.21
Residential
realty
services .08 .10 .11 .03 .05
Commercial
real estate .09 .03 .08 .02 -
St. Joe Land .15 .19 .25 .17 .42
Forestry .03 .03 .04 .05 .04
Transportation - - - - -
Hospitality - - - - -
Corporate
and other (.03) (.04) (.05) (.04) (.01)
Discontinued
operations
(Sugar) - - - - -
---------- ---------- ---------- ---------- ---------
Total JOE
Only $.54 $.50 $.57 $.32 $.71
========== ========== ========== ========== =========
FECI (Net) - - - - .01
Consolidated
St. Joe $.54 $.50 $.57 $.32 $.72
========== ========== ========== ========== =========
Weighted
average
diluted
Shares
outstanding 82,859,821 83,762,776 84,606,865 86,012,932 87,144,392
Sept 30, June 30, March 31, Dec 31,
2000 2000 2000 1999
---------- ---------- ---------- ----------
Community
residential
real Estate $.17 $.11 $.05 $.20
Residential
realty
services .07 .08 .03 .04
Commercial
real estate (.01) .03 .01 (.06)
St. Joe Land .28 .17 .20 .04
Forestry .03 .04 .08 .02
Transportation - - .01 .01
Hospitality - - - -
Corporate
and other (.05) (.05) (.04) (.02)
Discontinued
operations
(Sugar) - - - -
---------- ---------- ---------- ----------
Total JOE
Only $.49 $.38 $.34 $.23
========== ========== ========== ==========
FECI (Net) .13 .13 .15 .20
Consolidated
St. Joe $.62 $.51 $.49 $.43
========== ========== ========== ==========
Weighted
average
diluted
Shares
outstanding 86,865,685 86,922,557 86,537,245 87,672,123
The St. Joe Company, a publicly held company based in Jacksonville, is Florida's largest real estate operating
company. It is engaged in community, commercial, industrial, hospitality, leisure and resort development, along
with residential and commercial real estate services. The company also has significant interests in timber.
More information about St. Joe can be found at our web site at http://www.joe.com.
Forward-Looking Statements
Certain matters discussed in this press release are ``forward-looking statements'' within the meaning of the Private
Securities Litigation Reform Act of 1995. Some matters involve risk and uncertainty, and there can be no assurance
that the results described in such forward-looking statements will be realized. In particular, discussions regarding
the size and number of commercial buildings, residential units, development timetables, development approvals and
the ability to obtain approvals, anticipated price ranges of developments, the number of units that can be supported
upon full build-out of development, the number and price of anticipated land sales, and the absorption rate and
expected gain on land sales and statements concerning future operating performance and short- and long-term revenue
and earnings growth rates and comparisons to historical projects are forward-looking statements. Such statements
are based on current expectations and are subject to certain risks. Should one or more of these risks or uncertainties
materialize or should the underlying assumptions prove incorrect, the company's actual performance may differ materially
from that indicated or suggested by any forward-looking statement contained herein. Additional risk factors that
may cause actual results to differ materially from those expressed in forward-looking statements contained in the
press release are described in various documents filed by the company with the U.S. Securities and Exchange Commission,
including the company's Annual Report on Form 10-K for the year ended December 31, 2000.
Copyright 2002, The St. Joe Company. ``WaterColor,'' ``WaterSound,'' ``WindMark,'' ``SouthWood'' and ``RiverCamps''
and the ``taking flight'' logo are service marks of The St. Joe Company. Arvida is a registered trademark.
---------------------------------------------------
Contact:
The St. Joe Company, Jacksonville
Media Contact:
Jerry M. Ray, 904/858-2707
or
Investor Contact:
Steve Swartz, 904/858-5295