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Press Release Source: The St. Joe Company
October 17, 2002
JACKSONVILLE, FL -- The St. Joe Company (NYSE:JOE) announced yesterday that it expects its third quarter 2002 EBITDA
per share (earnings before interest, taxes, depreciation and amortization), excluding conservation land gains,
to be approximately $0.40 to $0.42 per share, lower than previous guidance.
At the same time, the company reaffirms earlier guidance for full year EBITDA per share of $1.55, or above, and
net income of approximately $1.64 per share, including a non-cash gain relating to the forward sale of equity securities,
but excluding gains on the sale of Arvida Realty Services and conservation land.
In July, the company said that it expected third quarter 2002 EBITDA per share, before gains on conservation land
sales, to be in the mid-to-high forty cent range. However, several transactions expected to close in the third
quarter were delayed.
"Despite the delayed transactions in the third quarter, the company continues to experience strong sales and
good pricing, particularly in our resort communities," said Peter S. Rummell, chairman and CEO of St. Joe.
"Of the transactions delayed from the third quarter, we believe that all will close. A number of these closings,
producing EBITDA of approximately $1.5 million, have already occurred. The remaining transactions are scheduled
to close in the fourth quarter or later. If all had closed in the third quarter, they would have contributed approximately
$5.5 million, or $0.07 per share, to third quarter EBITDA. We have been fortunate that, for our business, the questions
are often less a matter of `if' and more a matter of `when.'"
"Despite weakness in the broader economy, we look ahead to the remainder of this year with some optimism,"
said Rummell. "For example, eleven multifamily units, currently under construction on the beachside of WaterColor,
were released for sale on the last weekend of the quarter. With 29 full-price offers, a lottery was held and contracts
were accepted on all 11 units. The release consisted of one four-bedroom, six one-bedroom and four two-bedroom
units with prices ranging from $520,000 to $925,000.
"On September 26, 2002, Arvida released 27 home sites at WaterSound Beach," said Rummell. "Reservations
were accepted on 24 home sites with prices ranging from $385,000 to $535,000 for home sites off the beach and $1.1
million to $1.3 million for the beachfront home sites. Three home sites, two on the beachfront and one off-beach,
remain available."
"The nature of our business produces `lumpy' earnings," said Kevin M. Twomey, president, COO and CFO.
"These delayed transactions in the third quarter illustrate that the timing of closings is difficult to forecast.
However, traffic, pricing and sales activity in the resort communities continues to be ahead of this time last
year. As we look to the future, we have come to expect that transaction schedules are fluid and depend on a wide
range of variables."
St. Joe will release its 2002 third quarter results prior to the opening of the New York Stock Exchange on the
morning of Tuesday, October 22, 2002.
A conference call to review the company's results will be held on Tuesday, October 22, 2002, at 10:00 AM Eastern
Daylight Time. Rummell and Twomey will discuss the company's performance and take questions. If you wish to participate
in the call, please phone 888.428.4474 (for domestic calls from the United States) or 651.224.7472 (for international
calls) approximately ten minutes before the scheduled start time. You will be asked to identify yourself and your
organization to the operator.
The St. Joe Company, a publicly held company based in Jacksonville, is one of Florida's largest real estate operating
companies. It is engaged in community, commercial, industrial, hospitality, leisure and resort development, along
with commercial real estate services. The company also has significant interests in timber.
More information about St. Joe can be found online 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. These matters involve risk and uncertainty, and there can
be no assurance that the results described in the forward-looking statements will be realized. In particular, discussions
regarding the size and number of residential units, anticipated prices, the number and price of anticipated land
sales, expected gain on land sales, statements concerning the ability to obtain favorable governmental approvals
and statements concerning future operating performance and short- and long-term revenue and earnings growth rates
are forward-looking statements. Such statements are based on current expectations and are subject to certain risks.
These risks and uncertainties include, without limitation, local, regional and national economic conditions, adverse
changes in governmental regulations, fluctuation in interest rates, changes in land, building and home prices,
the availability of funding from governmental agencies and others to purchase conservation lands and the weather.
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, 2001 and a Prospectus dated June 17, 2002.
Copyright 2002, The St. Joe Company. "Advantis,""WindMark," "SouthWood," "WaterColor,"WaterSound,"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
Source: The St. Joe Company