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The St. Joe Company Reports Operating Results (10-Q)

November 02, 2012 | About:
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10qk

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The St. Joe Company (JOE) filed Quarterly Report for the period ended 2012-09-30.

St. Joe Corporation has a market cap of $1.81 billion; its shares were traded at around $19.9 with and P/S ratio of 12.4.

Highlight of Business Operations:

Cost of Real Estate Sales. For the three month period ended September 30, 2012, the increase in cost of real estate sales over the same period in 2011 was driven by the $26.4 million increase in real estate revenues with corresponding increases in cost of sales of $4.1 million, $2.6 million and $4.1 million in our residential real estate, commercial real estate and rural land sales segments, respectively. For the nine month period ended September 30, 2012, the increase in cost of real estate sales over the same period in 2011 was driven by the $36.6 million in real estate revenues with corresponding increases in cost of sales of $5.0 million, $5.7 million and $6.1 million in our residential real estate, commercial real estate and rural land sales segments, respectively.

Real estate sales revenue increased approximately $2.3 million as there were two commercial land sales for a total of 37.4 acres at a price per acre of $96,613 in the three months ended September 30, 2012, compared to two commercial land sales of 4.2 acres at a price per acre of $301,418 in the three months ended September 30, 2011. Real estate sales revenue levels increased approximately $8.2 million as there were five commercial land sales for a total of 58.2 acres at a price per acre of $176,126 in the nine months ended September 30, 2012, compared to four commercial land sales of 5.2 acres at a price per acre of $392,255 in the nine months ended September 30, 2011.

Timber sales during the three months ended September 30, 2012 and September 30, 2011 arose from sales of wood fiber to RockTenn, pursuant to the RockTenn Supply Agreement, and sales in the open market. RockTenn has a Panama City, Florida mill which is the largest consumer of pine pulpwood logs within the immediate area in which most of our timberlands are located. Sales under this agreement were $3.8 million (150,000 tons) in the three months ended September 30, 2012 and $4.0 million (151,000 tons) during the three months ended September 30, 2011, yielding a per ton price of $25.33 and $26.49, respectively.

Our open market sales increased approximately 38.0% on a quarter over quarter comparison, primarily as a result of our decision, in the first quarter of 2012, to open an additional 70,000 acres to harvesting by other timber operators and provide better infrastructure to access this land. Open market sales during the three months ended September 30, 2012 totaled $5.8 million (222,000 tons) as compared to $4.2 million (179,000 tons) in the three months ended September 30, 2011, yielding a per ton price of $26.13 and $24.02, respectively.

Sales to RockTenn were $11.0 million (440,000 tons) in the nine months ended September 30, 2012 and $12.2 million (476,000 tons) in the nine months ended September 30, 2011, yielding a per ton price of $25.00 and $25.63, respectively. Our open market sales increased approximately 45.8%, or $5.5 million, in the nine months ended September 30, 2012 as compared to the same period ended September 30, 2011. Open market sales during the nine months ended September 30, 2012 totaled $17.5 million (658,000 tons) as compared to $12.0 million (452,000 tons) in the nine months ended September 30, 2011, yielding a per ton price of $26.60 and $26.55, respectively.

Read the The complete Report

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