The St. Joe Company Reports Full Year and Fourth Quarter 2012 Results

  The St. Joe Company Reports Full Year and Fourth Quarter 2012 Results

Business Wire

WATERSOUND, Fla. -- February 28, 2013

The St. Joe Company (NYSE: JOE) today announced Net Profit for the full year
ended 2012 of $6.0 million, or $0.07 per share. This compares to a Net Loss of
$(330.3) million, or $(3.58) per share for the year 2011, which included
pre-tax non-cash impairment charges of $377.3 million, or $3.52 per share
after tax.

For the fourth quarter of 2012, St. Joe had a Net Loss of $(8.6) million, or
$(0.09) per share. This compares to a Net Loss of $(328.6) million, or $(3.56)
per share, for the fourth quarter of 2011, which included pre-tax non-cash
impairment charges of $374.8 million, or $3.50 per share after-tax.

2012 highlights include:

  *The number of residential units sold increased from 133 units in 2011 to
    158 units in 2012. Pricing also improved, particularly in the Company’s
    resort communities. The combination of higher pricing and a greater number
    of units sold contributed to a revenue increase of 81% in residential real
    estate sales in 2012 compared to 2011.
  *Tons of timber sold increased approximately 19% year over year because the
    Company opened more of the Company’s land to timber harvesting, and our
    investments in technology and infrastructure had a positive impact on
    production.
  *Revenue in the Company’s resorts, leisure and leasing operations business
    grew approximately 16% in 2012 compared to 2011 due to a strong summer
    vacation season as well as the commencement of rent for two commercial
    leases, one at Port St. Joe and the other at Venture Crossings, in the
    latter half of 2012.
  *Real estate sales in the Company’s rural land businesses was positively
    and significantly impacted by the sale of two non-strategic pieces of
    property totaling 3,240 acres at an average price of $5,655 per acre, or
    $18.3 million in total.
  *Operating and corporate expenses declined $18.8 million compared to 2011
    as a result of lower legal fees, decreased pension charges and reduced
    stock-based compensation charges.
  *The Company prepaid $19.3 million of debt at its RiverTown project related
    to infrastructure and community improvement projects. By prepaying the
    debt, the Company will save approximately $6.0 million in interest expense
    over the next four and half years.

Park Brady, St. Joe’s Chief Executive Officer, said, “We’re very happy with
our progress in 2012. Operating results in each of our businesses improved
compared to 2011. Our residential development business, in particular,
experienced improving trends in sales volume and pricing and that momentum
appears to be carrying forward into 2013. Although the economic recovery is
still slow, we are optimistic about future growth in our businesses.”

Mr. Brady continued, “We’re excited about our key initiatives in 2013. For
example, we believe that the retiree demographic presents us with a unique
opportunity given our development expertise and the fact that we own a
substantial amount of contiguous land located in a desirable part of the
country. To that end, we’ve been working with the best active adult community
planners and consultants in the country and collaborating with national
builders to bring that concept to reality. Another unique opportunity is the
Port at Port St Joe. Our Port boasts the shortest distance to the Panama Canal
of any port in the United States. That fact coupled with the long term growth
prospects for the Southeast will be, we believe, the basis for building a
vibrant port within the next few years. Both of these initiatives are longer
term in nature but you will see evidence of our progress in 2013.”

Mr. Brady concluded, “In addition to these initiatives we continue to evaluate
all of our assets to determine their best use in creating long term
shareholder value. We’re excited about the potential opportunities represented
by our assets, especially against the backdrop of an improving economy.”

FINANCIAL DATA

($ in millions except share and per share amounts)

Consolidated Statements of Operations
                                                    
                           Quarter Ended Dec. 31,   Year Ended Dec. 31,
                           2012        2011        2012        2011
Revenues                                                     
Real estate sales           $4.6        $5.7        $56.0       $20.4
Resort, leisure and         7.8         6.4         44.4        38.2
leasing revenues
Timber sales                10.2        7.7         39.0        86.7
Total revenues              22.6        19.8        139.4       145.3
Expenses                                                     
Cost of real estate sales   3.1         3.2         28.2        11.5
Cost of resort, leisure     7.9         7.4         39.1        37.1
and leasing revenues
Cost of timber sales        6.0         5.5         24.0        22.9
Other operating expenses    3.9         4.3         15.3        22.3
Corporate expense, net      3.4         3.3         15.9        27.8
Depreciation, depletion     2.9         2.9         10.1        15.8
and amortization
Pension charges             2.1         1.0         2.1         5.9
Impairment losses           2.6         374.8       2.6         377.3
Restructuring charge        --          0.8         --          11.5
Total expenses              31.9        403.2       137.3       532.1
Operating income (loss)     (9.3)       (383.4)     2.1         (386.8)
Other income, net           0.1         --          4.3         0.9
Income (loss) from
operations before equity
in loss from                (9.2)       (383.4)     6.4         (385.9)
unconsolidated affiliates
and income taxes
Equity loss from            --          --          --          --
unconsolidated affiliates
Income tax (benefit)        (0.5)       (54.8)      0.4         (55.6)
expense
Net income (loss)           $(8.7)      $(328.6)    $6.0        $(330.3)
Net income (loss) per       $(0.09)     $(3.56)     $0.07       $(3.58)
share
Weighted average shares     92,288,165  92,212,125  92,258,110  92,235,360

Revenues by Segment
                                                        
                                Quarter Ended Dec. 31,  Year Ended Dec. 31,
                                2012         2011      2012       2011
Revenues:                                                       
Real estate sales                                               
Residential                      $4.5         $3.4      $22.1      $12.6
Commercial                       0.1          1.7       10.4       3.8
Rural land and other             --           0.6       23.5       4.0
Total real estate sales          4.6          5.7       56.0       20.4
Resort, leisure and leasing      7.8          6.4       44.4       38.2
revenues
Timber sales                     10.2         7.7       39.0       86.7
Total revenues                   $22.6        $19.7     $139.4     $145.3

Summary Balance Sheet
                                                          
                                       December 31, 2012  December 31, 2011
Assets                                                    
Investment in real estate               $370.6             $387.2
Cash and cash equivalents               166.0              162.4
Notes receivable, net                   4.0                4.6
Pledged treasury securities             26.8               23.3
Prepaid pension asset                   33.4               35.1
Property and equipment, net             12.1               14.9
Income taxes receivable                 0.2                0.1
Deferred tax asset                      12.0               11.7
Other assets                            20.4               22.0
Total assets                            $645.5             $661.3
                                                         
Liabilities and Equity                                    
Debt                                    $36.1              $53.5
Accounts payable, accrued liabilities   57.1               63.9
and deferred credits
Total liabilities                       $93.2              $117.4
Total equity                            552.3              543.9
Total liabilities and equity            $645.5             $661.3

Debt Schedule
                                                       
                                    December 31, 2012   December 31, 2011
In substance-defeased debt           $26.8              $23.3
Community Development District debt  9.3                30.2
Total debt                           $36.1              $53.5

Other Operating and Corporate Expenses, Net
                                                       
                               Quarter Ended Dec. 31,   Year Ended Dec. 31,
                               2012        2011       2012   2011
Employee costs                  $2.9        $1.4       $11.4  $5.4 ^(1)(2)
Non-cash stock compensation     --          (0.1)      0.9    8.5
costs
Occupancy, repairs and          0.3         0.8        1.2    3.4
maintenance
Professional fees               1.7         2.4^(3)    5.3    16.8 ^(3)
Marketing and homeowner         0.4         0.7        2.1    2.8
association cost
Property taxes and insurance    1.7         1.5        7.9    8.5
Other                           0.4         0.6        1.7    2.3
Pension expense                 --          0.4        0.9    3.3 ^(1)
Capitalized costs               (0.1)       (0.1)      (0.2)  (0.9)
Total other operating and       $7.3        $7.6       $31.2  $50.1
corporate expense, net

^(1) Includes a $1.4 million transfer of Supplemental Executive Retirement
Program (“SERP”) liability to the Company’s Pension Plan, resulting in a
decrease to employee costs and an increase to pension expense.

^(2) Includes income of $5.5 million resulting from the termination of retiree
medical benefits.

^(3) Includes $1.4 million and $11.7 million in the three months and year
ended December 31, 2011, respectively, for legal fees due to defending the
securities class action lawsuit, responding to the SEC inquiry, pursuing the
claims against the parties St. Joe believes are responsible for the Deepwater
Horizon oil spill, litigation related to a contract dispute, and legal costs
incurred in connection with the change in control of the Board and other
corporate governance matters.

Additional Information

Additional information with respect to the Company’s results for 2012 will be
available in a Form 10-K 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 our key initiatives in 2013, such as the development of adult active
communities and the Port at Port St. Joe. This information is qualified in its
entirety by 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 27, 2012. 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) the Company’s ability to capitalize on
opportunities relating to retirement communities and the Port at Port St. Joe,
and the Company’s ability to successfully engage in strategic partnerships;
(2) the Company’s ability to manage its cost structure; (3) economic or other
conditions that affect the desire or ability of the Company’s customers to
purchase or enter into leases for its properties, such as reductions in the
availability of mortgage financing or property insurance, increases in
foreclosures, interest rates, the cost of property insurance, inflation, or
unemployment rates or declines in consumer confidence or the demand for, or
the prices of, housing; (4) the Company’s 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; and (5) the
impact of natural or manmade disasters or weather conditions, including
hurricanes and other severe weather conditions, on the Company’s business.

About St. Joe

The St. Joe Company is a Florida-based real estate developer and manager. The
Company owns approximately 567,000 acres of land concentrated primarily in
Northwest Florida and has significant residential and commercial land-use
entitlements in hand or in process. The majority of land not under development
is used for the growing and selling of timber or is available for sale. The
Company also owns various commercial, resort and club properties. More
information about the Company can be found on its website at www.joe.com.

   © 2013, The St. Joe Company. “St. Joe,” “VentureCrossings,” “ Breakfast
 Point,” “RiverTown,” and the "Taking Flight" design are service marks of The
                               St. Joe Company.

Contact:

The St. Joe Company
Investor/Media Contact:
Tom Hoyer, 850-231-6518
Chief Financial Officer
thoyer@joe.com