Other The St. Joe Company Reports Fourth Quarter and Full Year 2016 Results

[Kurt]

The St. Joe Company (NYSE:JOE) (the "Company") today announced Net Income for the fourth quarter of 2016 of $2.7 million, or $0.04 per share, compared with Net Loss of $(2.5) million, or $(0.03) per share, for the fourth quarter of 2015. For the full year ended December 31, 2016, the Company reported Net Income of $15.9 million, or $0.21 per share compared to Net Loss of $(1.7) million, or $(0.02) per share for the full year 2015.

Total revenue for the quarter was $18.7 million as compared to $21.1 million in the fourth quarter of 2015 due to a reduction in real estate revenue partially offset by an increase in resorts and leisure revenue, leasing revenue and timber revenue. For the full year 2016, total revenue was $95.7 million compared to $103.9 million for the full year 2015 due to reduced real estate revenue and timber revenue partially offset by an increase in resorts and leisure revenue and leasing revenue.

Fourth Quarter 2016 highlights include:

• While revenue for the fourth quarter of 2016 was $2.4 million lower than the fourth quarter of 2015, Net Income increased by $5.2 million due to lower operating and corporate expenses and an increase in investment income.
• Real estate revenue decreased to $5.4 million in the fourth quarter of 2016 as compared to $9.4 million in the fourth quarter of 2015. This decrease was primarily related to timing of development of finished lots in the communities of Watersound Origins and Breakfast Point as well as lower volume of non-strategic commercial land sales.
• Resorts and leisure revenue increased approximately $0.9 million, or 10%, in the fourth quarter of 2016 as compared to the fourth quarter of 2015. The increase was broad based including an increase in average room rates in both the WaterColor Inn and in the vacation rental program as well as an increase in total membership, growth in rounds played at the golf courses, strong showing in the food and beverage component and increased membership revenue from the St. Joe Club & Resorts private membership club.
• Timber sales increased to $1.2 million during the fourth quarter of 2016 as compared to $0.7 million in the fourth quarter of 2015 due to an increase in tons sold.
• Leasing revenue increased approximately $0.2 million, or 11%, in the fourth quarter of 2016 as compared to fourth quarter of 2015. As of December 31, 2016, the Company owned approximately 604,000 square feet of rentable commercial space which is 87% leased. Of this amount, the Pier Park North retail center has approximately 320,000 square feet constructed and is 93% leased.
• As of December 31, 2016, the Company had cash, cash equivalents and investments of $416.8 million, as compared to $404.0 million as of December 31, 2015, an increase of $12.8 million.

Jorge Gonzalez, the Company's President and Chief Executive Officer, said, "Our ‘open for business' strategy and focus on maximizing the value of our assets while maintaining a low fixed expense structure is gaining traction. The recent announcement of GKN Aerospace locating a new world-class manufacturing facility in VentureCrossings® Enterprise Centre in Bay County is an example of both an investment in generating recurring income and in creating quality aerospace manufacturing jobs with a high economic multiplier effect that we believe will enhance long term value of the area and the Company." Mr. Gonzalez added, "With a strong balance sheet, our plan for 2017 is to increase capital expenditures particularly on projects that we believe will provide recurring revenue and asset value while being selective about one-off sales of our land holdings."