|
|
x
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Florida
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59-0432511
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(State or other jurisdiction of
incorporation or organization)
|
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(I.R.S. Employer
Identification No.)
|
|
||
133 South WaterSound Parkway
WaterSound, Florida
|
|
32413
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(Address of principal executive offices)
|
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(Zip Code)
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Large accelerated filer
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þ
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Accelerated filer
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¨
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Non-accelerated filer
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¨
(Do not check if a smaller reporting company)
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Smaller reporting company
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¨
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Page No.
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|
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June 30,
2014 |
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December 31,
2013 |
||||
ASSETS
|
|
|
|
||||
Investment in real estate, net
|
$
|
322,923
|
|
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$
|
385,009
|
|
Cash and cash equivalents
|
50,883
|
|
|
21,894
|
|
||
Investments
|
628,542
|
|
|
146,972
|
|
||
Notes receivable, net
|
25,863
|
|
|
7,332
|
|
||
Pledged treasury securities
|
25,967
|
|
|
26,260
|
|
||
Prepaid pension asset
|
33,899
|
|
|
35,117
|
|
||
Property and equipment, net of accumulated depreciation of $60.7 million and $62.2 million at June 30, 2014 and December 31, 2013, respectively
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10,946
|
|
|
11,410
|
|
||
Deferred tax asset
|
—
|
|
|
12,866
|
|
||
Other assets
|
31,384
|
|
|
22,612
|
|
||
Investments held by special purpose entities (Note 4)
|
210,463
|
|
|
—
|
|
||
Total assets
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$
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1,340,870
|
|
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$
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669,472
|
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LIABILITIES AND EQUITY
|
|
|
|
||||
LIABILITIES:
|
|
|
|
||||
Debt
|
$
|
54,253
|
|
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$
|
44,217
|
|
Senior Notes held by special purpose entity (Note 4)
|
177,301
|
|
|
—
|
|
||
Accounts payable
|
18,223
|
|
|
12,083
|
|
||
Income taxes payable
|
28,928
|
|
|
302
|
|
||
Accrued liabilities and deferred credits
|
36,889
|
|
|
49,345
|
|
||
Deferred tax liabilities
|
40,100
|
|
|
—
|
|
||
Total liabilities
|
355,694
|
|
|
105,947
|
|
||
EQUITY:
|
|
|
|
||||
Common stock, no par value; 180,000,000 shares authorized; 92,320,598 issued and 92,300,329 outstanding at June 30, 2014; 92,313,182 issued and 92,292,913 outstanding at December 31, 2013
|
892,187
|
|
|
892,027
|
|
||
Retained earnings (deficit)
|
91,733
|
|
|
(325,871
|
)
|
||
Accumulated other comprehensive loss
|
(7,115
|
)
|
|
(7,517
|
)
|
||
Treasury stock at cost, 20,269 held at June 30, 2014 and December 31, 2013
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(285
|
)
|
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(285
|
)
|
||
Total stockholders’ equity
|
976,520
|
|
|
558,354
|
|
||
Non-controlling interest
|
8,656
|
|
|
5,171
|
|
||
Total equity
|
985,176
|
|
|
563,525
|
|
||
Total liabilities and equity
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$
|
1,340,870
|
|
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$
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669,472
|
|
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June 30,
2014 |
|
December 31,
2013 |
||||
ASSETS
|
|
|
|
||||
Investment in real estate
|
$
|
41,698
|
|
|
$
|
28,412
|
|
Cash and cash equivalents
|
2,710
|
|
|
2,225
|
|
||
Investments held by special purpose entities (Note 4)
|
210,463
|
|
|
—
|
|
||
Other assets
|
5,429
|
|
|
321
|
|
||
Total assets
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$
|
260,300
|
|
|
$
|
30,958
|
|
LIABILITIES
|
|
|
|
||||
Long-term debt (Note 8)
|
$
|
22,416
|
|
|
$
|
6,445
|
|
Senior Notes held by special purpose entity (Note 4)
|
177,301
|
|
|
—
|
|
||
Accounts payable
|
5,232
|
|
|
5,766
|
|
||
Accrued liabilities and deferred credits
|
3,422
|
|
|
1,925
|
|
||
Total liabilities
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$
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208,371
|
|
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$
|
14,136
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Real estate sales
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$
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48,868
|
|
|
$
|
6,980
|
|
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$
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626,614
|
|
|
$
|
15,036
|
|
Resorts, leisure and leasing revenues
|
18,196
|
|
|
17,053
|
|
|
26,397
|
|
|
26,075
|
|
||||
Timber sales
|
1,100
|
|
|
9,755
|
|
|
9,239
|
|
|
19,450
|
|
||||
Total revenues
|
68,164
|
|
|
33,788
|
|
|
662,250
|
|
|
60,561
|
|
||||
Expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of real estate sales
|
20,391
|
|
|
3,702
|
|
|
82,386
|
|
|
8,742
|
|
||||
Cost of resorts, leisure and leasing revenues
|
13,631
|
|
|
12,660
|
|
|
21,777
|
|
|
20,945
|
|
||||
Cost of timber sales
|
243
|
|
|
5,805
|
|
|
4,094
|
|
|
11,840
|
|
||||
Other operating expenses
|
2,736
|
|
|
3,213
|
|
|
7,154
|
|
|
6,138
|
|
||||
Corporate expense
|
4,435
|
|
|
4,490
|
|
|
8,524
|
|
|
8,878
|
|
||||
Administrative costs associated with special purpose entities (Note 4)
|
3,746
|
|
|
—
|
|
|
3,746
|
|
|
—
|
|
||||
Depreciation, depletion and amortization
|
1,944
|
|
|
2,335
|
|
|
4,039
|
|
|
4,660
|
|
||||
Total expenses
|
47,126
|
|
|
32,205
|
|
|
131,720
|
|
|
61,203
|
|
||||
Operating income (loss)
|
21,038
|
|
|
1,583
|
|
|
530,530
|
|
|
(642
|
)
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
||||||||
Investment income, net
|
3,951
|
|
|
306
|
|
|
4,224
|
|
|
413
|
|
||||
Interest expense
|
(2,249
|
)
|
|
(269
|
)
|
|
(2,889
|
)
|
|
(868
|
)
|
||||
Other, net
|
570
|
|
|
1,093
|
|
|
1,347
|
|
|
1,345
|
|
||||
Total other income
|
2,272
|
|
|
1,130
|
|
|
2,682
|
|
|
890
|
|
||||
Income before equity in loss from unconsolidated affiliates and income taxes
|
23,310
|
|
|
2,713
|
|
|
533,212
|
|
|
248
|
|
||||
Equity in loss from unconsolidated affiliates
|
(11
|
)
|
|
(15
|
)
|
|
(21
|
)
|
|
(27
|
)
|
||||
Income tax expense
|
(8,690
|
)
|
|
—
|
|
|
(115,594
|
)
|
|
—
|
|
||||
Net income
|
14,609
|
|
|
2,698
|
|
|
417,597
|
|
|
221
|
|
||||
Net loss attributable to non-controlling interest
|
—
|
|
|
6
|
|
|
7
|
|
|
12
|
|
||||
Net income attributable to the Company
|
$
|
14,609
|
|
|
$
|
2,704
|
|
|
$
|
417,604
|
|
|
$
|
233
|
|
|
|
|
|
|
|
|
|
||||||||
NET INCOME PER SHARE
|
|
|
|
|
|
|
|
||||||||
Basic and Diluted
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding
|
92,295,213
|
|
|
92,284,532
|
|
|
92,294,969
|
|
|
92,284,624
|
|
||||
Net income per share attributable to the Company
|
$
|
0.16
|
|
|
$
|
0.03
|
|
|
$
|
4.52
|
|
|
$
|
—
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Net income:
|
$
|
14,609
|
|
|
$
|
2,698
|
|
|
$
|
417,597
|
|
|
$
|
221
|
|
Other comprehensive income:
|
|
|
|
|
|
|
|
||||||||
Net unrealized gains (losses) on available-for-sale investments
|
941
|
|
|
(891
|
)
|
|
555
|
|
|
(891
|
)
|
||||
Income tax benefit
|
(364
|
)
|
|
—
|
|
|
(214
|
)
|
|
—
|
|
||||
Total
|
577
|
|
|
(891
|
)
|
|
341
|
|
|
(891
|
)
|
||||
Defined benefit pension items:
|
|
|
|
|
|
|
|
||||||||
Net (loss) gain arising during the period
|
(187
|
)
|
|
2,013
|
|
|
(596
|
)
|
|
2,013
|
|
||||
Settlement included in net periodic cost
|
200
|
|
|
394
|
|
|
440
|
|
|
394
|
|
||||
Amortization of loss included in net periodic cost
|
125
|
|
|
101
|
|
|
257
|
|
|
198
|
|
||||
Income tax benefit
|
(53
|
)
|
|
—
|
|
|
(40
|
)
|
|
—
|
|
||||
Total
|
85
|
|
|
2,508
|
|
|
61
|
|
|
2,605
|
|
||||
Total other comprehensive income, net of tax
|
662
|
|
|
1,617
|
|
|
402
|
|
|
1,714
|
|
||||
Total comprehensive income, net of tax
|
$
|
15,271
|
|
|
$
|
4,315
|
|
|
$
|
417,999
|
|
|
$
|
1,935
|
|
|
Common Stock
|
|
Retained earnings (deficit)
|
|
Accumulated
Other
Comprehensive
Loss
|
|
|
|
|
|
|
|||||||||||||||
|
Outstanding
Shares
|
|
Amount
|
|
Treasury
Stock
|
|
Non-controlling
Interest
|
|
Total
|
|||||||||||||||||
Balance at December 31, 2013
|
92,292,913
|
|
|
$
|
892,027
|
|
|
$
|
(325,871
|
)
|
|
$
|
(7,517
|
)
|
|
$
|
(285
|
)
|
|
$
|
5,171
|
|
|
$
|
563,525
|
|
Net income (loss)
|
—
|
|
|
—
|
|
|
417,604
|
|
|
—
|
|
|
—
|
|
|
(7
|
)
|
|
417,597
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
402
|
|
|
—
|
|
|
—
|
|
|
402
|
|
||||||
Capital contributions to special purpose entity from non-controlling interest (Note 4)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,492
|
|
|
3,492
|
|
||||||
Issuance of common stock for directors fees
|
7,416
|
|
|
160
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
160
|
|
||||||
Balance at June 30, 2014
|
92,300,329
|
|
|
$
|
892,187
|
|
|
$
|
91,733
|
|
|
$
|
(7,115
|
)
|
|
$
|
(285
|
)
|
|
$
|
8,656
|
|
|
$
|
985,176
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months Ended
June 30, |
||||||
|
2014
|
|
2013
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
417,597
|
|
|
$
|
221
|
|
Adjustments to reconcile net income to net cash from operating activities:
|
|
|
|
||||
Depreciation, depletion and amortization
|
4,039
|
|
|
4,660
|
|
||
Stock based compensation
|
160
|
|
|
247
|
|
||
Loss on sale of investments
|
833
|
|
|
—
|
|
||
Equity in loss in from unconsolidated affiliates
|
21
|
|
|
27
|
|
||
Deferred income tax expense
|
51,022
|
|
|
5
|
|
||
Cost of operating properties sold
|
71,623
|
|
|
7,948
|
|
||
Expenditures for operating properties
|
(3,505
|
)
|
|
(11,207
|
)
|
||
Notes receivable financed by the Company for operating properties sold
|
(19,600
|
)
|
|
(1,184
|
)
|
||
Timber Note
|
(200,000
|
)
|
|
—
|
|
||
Deferred revenue
|
(13,432
|
)
|
|
—
|
|
||
Accretion income
|
(818
|
)
|
|
(382
|
)
|
||
Other, net
|
52
|
|
|
81
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Payments received on notes receivable
|
1,519
|
|
|
25
|
|
||
Other assets
|
(5,078
|
)
|
|
(2,058
|
)
|
||
Accounts payable and accrued liabilities
|
7,576
|
|
|
10,627
|
|
||
Income taxes payable
|
28,594
|
|
|
—
|
|
||
Net cash provided by operating activities
|
340,603
|
|
|
9,010
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Expenditures for Pier Park North joint venture
|
(12,973
|
)
|
|
(4,933
|
)
|
||
Purchases of property and equipment
|
(1,509
|
)
|
|
(1,889
|
)
|
||
Purchases of investments
|
(549,535
|
)
|
|
(115,410
|
)
|
||
Maturities of investments
|
60,000
|
|
|
—
|
|
||
Sales of investments
|
8,239
|
|
|
—
|
|
||
Investment in assets held by special purpose entities (Note 4)
|
(6,921
|
)
|
|
—
|
|
||
Contributions to unconsolidated affiliates
|
(148
|
)
|
|
—
|
|
||
Net cash used in investing activities
|
(502,847
|
)
|
|
(122,232
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Borrowings on construction loan in Pier Park joint venture
|
15,971
|
|
|
—
|
|
||
Contribution to Pier Park North joint venture from non-controlling interest
|
—
|
|
|
1,743
|
|
||
Principal payments for long term debt
|
(478
|
)
|
|
(285
|
)
|
||
Issuance of Senior Notes by special purpose entity net of discount and issuance costs of $4.3 million for 2014 (Note 4)
|
175,740
|
|
|
—
|
|
||
Reduction in excise tax benefits related to stock based compensation
|
—
|
|
|
(8
|
)
|
||
Taxes paid on behalf of employees related to stock based compensation
|
—
|
|
|
(25
|
)
|
||
Net cash provided by financing activities
|
191,233
|
|
|
1,425
|
|
||
Net increase (decrease) in cash and cash equivalents
|
28,989
|
|
|
(111,797
|
)
|
||
Cash and cash equivalents at beginning of the period
|
21,894
|
|
|
165,980
|
|
||
Cash and cash equivalents at end of the period
|
$
|
50,883
|
|
|
$
|
54,183
|
|
|
|
Six Months Ended
June 30, |
||||||
|
|
2014
|
|
2013
|
||||
Cash paid during the period for:
|
|
|
|
|
||||
Interest expense
|
|
$
|
967
|
|
|
$
|
1,467
|
|
Income taxes
|
|
$
|
35,979
|
|
|
$
|
3
|
|
Capitalized interest
|
|
$
|
129
|
|
|
$
|
—
|
|
Non-cash financing and investment activities:
|
|
|
|
|
||||
Net (decrease) increase in Community Development District debt
|
|
$
|
(5,164
|
)
|
|
$
|
2,706
|
|
Decrease in pledged treasury securities related to defeased debt
|
|
$
|
293
|
|
|
$
|
277
|
|
Expenditures for operating properties and property and equipment financed through accounts payable
|
|
$
|
825
|
|
|
$
|
463
|
|
Exchange of Timber Note for investments held by special purpose entity (Note 4)
|
|
$
|
200,000
|
|
|
$
|
—
|
|
Capital contributions to special purpose entity from non-controlling interest (Note 4)
|
|
$
|
3,492
|
|
|
$
|
—
|
|
Settlement of note receivable
|
|
$
|
—
|
|
|
$
|
312
|
|
|
June 30,
2014 |
|
December 31,
2013 |
||||
Operating property:
|
|
|
|
||||
Residential real estate
|
$
|
1,544
|
|
|
$
|
2,071
|
|
Resorts, leisure and leasing operations
|
177,064
|
|
|
146,624
|
|
||
Forestry
|
18,190
|
|
|
58,170
|
|
||
Other
|
45
|
|
|
45
|
|
||
Total operating property
|
196,843
|
|
|
206,910
|
|
||
Development property:
|
|
|
|
||||
Residential real estate
|
102,307
|
|
|
130,616
|
|
||
Commercial real estate
|
58,812
|
|
|
58,659
|
|
||
Resorts, leisure and leasing operations
|
11,929
|
|
|
28,737
|
|
||
Forestry
|
3,319
|
|
|
8,976
|
|
||
Corporate
|
2,430
|
|
|
2,366
|
|
||
Total development property
|
178,797
|
|
|
229,354
|
|
||
Investment in unconsolidated affiliates
(1)
|
2,368
|
|
|
2,241
|
|
||
Total real estate investments
|
378,008
|
|
|
438,505
|
|
||
Less: Accumulated depreciation
|
55,085
|
|
|
53,496
|
|
||
Investment in real estate, net
|
$
|
322,923
|
|
|
$
|
385,009
|
|
|
|
|
|
||||
(1)
Recorded in the Company’s resorts, leisure and leasing operation's segment.
|
|
|
|
•
|
a prolonged decrease in the fair value or demand for the Company’s properties;
|
•
|
a change in the expected use or development plans for the Company’s properties;
|
•
|
continuing operating or cash flow losses for an operating property; and,
|
•
|
an accumulation of capital costs in a development property that significantly exceeds its historical basis in property held long-term.
|
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
$
|
524,663
|
|
|
$
|
151
|
|
|
$
|
—
|
|
|
$
|
524,814
|
|
Corporate debt securities
|
102,182
|
|
|
—
|
|
|
1,941
|
|
|
100,241
|
|
||||
Preferred stock
|
3,270
|
|
|
217
|
|
|
—
|
|
|
3,487
|
|
||||
|
$
|
630,115
|
|
|
$
|
368
|
|
|
$
|
1,941
|
|
|
$
|
628,542
|
|
|
Amortized Cost
|
|
Gross Unrealized Gains
|
|
Gross Unrealized Losses
|
|
Fair Value
|
||||||||
Debt securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
$
|
124,861
|
|
|
$
|
88
|
|
|
$
|
—
|
|
|
$
|
124,949
|
|
Corporate debt securities
|
24,236
|
|
|
—
|
|
|
2,213
|
|
|
22,023
|
|
||||
|
$
|
149,097
|
|
|
$
|
88
|
|
|
$
|
2,213
|
|
|
$
|
146,972
|
|
|
Amortized Cost
|
|
Fair Value
|
||||
Due in one year or less
|
$
|
524,663
|
|
|
$
|
524,814
|
|
Due after one year through five years
|
102,182
|
|
|
100,241
|
|
||
|
626,845
|
|
|
625,055
|
|
||
Preferred stock
|
3,270
|
|
|
3,487
|
|
||
|
$
|
630,115
|
|
|
$
|
628,542
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Interest income from investments in special purpose entities (Note 4)
|
|
$
|
2,018
|
|
|
$
|
—
|
|
|
$
|
2,018
|
|
|
$
|
—
|
|
Net investment income from available-for-sale securities
|
|
1,580
|
|
|
268
|
|
|
1,814
|
|
|
268
|
|
||||
Interest accrued on notes receivable
|
|
353
|
|
|
38
|
|
|
392
|
|
|
145
|
|
||||
Total investment income, net
|
|
3,951
|
|
|
306
|
|
|
4,224
|
|
|
413
|
|
||||
Interest expense and amortization of discount and issuance costs for Senior Notes issued by special purpose entity (Note 4)
|
|
(2,071
|
)
|
|
—
|
|
|
(2,071
|
)
|
|
—
|
|
||||
Interest expense
|
|
(178
|
)
|
|
(269
|
)
|
|
(818
|
)
|
|
(868
|
)
|
||||
Total interest expense
|
|
(2,249
|
)
|
|
(269
|
)
|
|
(2,889
|
)
|
|
(868
|
)
|
||||
Other, net
|
|
570
|
|
|
1,093
|
|
|
1,347
|
|
|
1,345
|
|
||||
Total other income
|
|
$
|
2,272
|
|
|
$
|
1,130
|
|
|
$
|
2,682
|
|
|
$
|
890
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total Fair Value
|
||||||||
Money market funds
|
$
|
34,151
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
34,151
|
|
Debt securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
524,814
|
|
|
—
|
|
|
—
|
|
|
524,814
|
|
||||
Corporate debt securities
|
—
|
|
|
100,241
|
|
|
—
|
|
|
100,241
|
|
||||
Preferred stock
|
—
|
|
|
3,487
|
|
|
—
|
|
|
3,487
|
|
||||
|
$
|
558,965
|
|
|
$
|
103,728
|
|
|
$
|
—
|
|
|
$
|
662,693
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total Fair Value
|
||||||||
Money market funds
|
$
|
1,761
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,761
|
|
Debt securities:
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury securities
|
124,949
|
|
|
—
|
|
|
—
|
|
|
124,949
|
|
||||
Corporate debt securities
|
—
|
|
|
22,023
|
|
|
—
|
|
|
22,023
|
|
||||
|
$
|
126,710
|
|
|
$
|
22,023
|
|
|
$
|
—
|
|
|
$
|
148,733
|
|
•
|
The fair values of cash and cash equivalents, accounts payable and accrued liabilities, approximate their carrying values at
June 30, 2014
and December 31, 2013, due to the short-term nature of these assets and liabilities. These financial instruments would be categorized as level 1. The Company’s notes receivable and debt is at rates that approximate current market rates for these instruments. These financial instruments would be categorized as level 2.
|
•
|
The fair value of the investments held by special purpose entities includes a time deposit and held-to-maturity investments that approximates their carrying value at June 30, 2014. See Note 4,
Real Estate Sales
. These financial instruments would be categorized as level 3 and level 1, respectively.
|
•
|
The fair value of the debt held by special purpose entity approximates its fair value as of June 30, 2014. See Note 4,
Real Estate Sales
. This financial instrument would be categorized as level 3.
|
•
|
The fair value of the Company’s pledged treasury securities is based on quoted market rates.
|
•
|
The fair value of the Company’s retained interest investments is based on the present value of the expected future cash flows at the effective yield.
|
|
June 30, 2014
|
|
December 31, 2013
|
||||||||||||||||
|
Carrying
value
|
|
Fair value
|
|
Level
|
|
Carrying
value
|
|
Fair value
|
|
Level
|
||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Pledged treasury securities
|
$
|
25,967
|
|
|
$
|
27,520
|
|
|
1
|
|
$
|
26,260
|
|
|
$
|
28,465
|
|
|
1
|
Retained interest investments
|
$
|
9,782
|
|
|
$
|
13,049
|
|
|
3
|
|
$
|
9,639
|
|
|
$
|
12,827
|
|
|
3
|
|
June 30,
2014 |
|
December 31,
2013 |
||||
BALANCE SHEETS:
|
|
|
|
||||
Investment in real estate
|
$
|
12,206
|
|
|
$
|
12,124
|
|
Cash and cash equivalents
|
16,429
|
|
|
16,897
|
|
||
Other assets
|
73
|
|
|
72
|
|
||
Total assets
|
$
|
28,708
|
|
|
$
|
29,093
|
|
|
|
|
|
||||
Accounts payable and other liabilities
|
$
|
481
|
|
|
$
|
159
|
|
Equity
(1)
|
28,227
|
|
|
28,934
|
|
||
Total liabilities and equity
|
$
|
28,708
|
|
|
$
|
29,093
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
STATEMENTS OF OPERATIONS:
|
|
|
|
|
|
|
|
||||||||
Total expenses, net
|
$
|
654
|
|
|
$
|
451
|
|
|
$
|
1,053
|
|
|
$
|
783
|
|
Net loss
|
$
|
654
|
|
|
$
|
451
|
|
|
$
|
1,053
|
|
|
$
|
783
|
|
|
June 30,
2014 |
|
December 31,
2013 |
||||
Interest bearing homebuilder note for the RiverTown Sale, secured by the real estate sold — 5.25% interest rate, annual principal payment of $1.0 million due March 2015 and all accrued interest and remaining principal payment due June 2015
|
$
|
19,600
|
|
|
$
|
—
|
|
Interest bearing homebuilder notes, secured by the real estate sold — 4.0% interest rate, annual principal payments of $0.3 million, any remaining payments outstanding are due February and August 2015, net of deferred profit of $0.2 million and $0.7 million at June 30, 2014 and December 31, 2013, respectively
|
3,265
|
|
|
4,062
|
|
||
Pier Park Community Development District notes, non-interest bearing, due December 2024, net of unamortized discount of $0.1 million, effective rates 5.73% — 8.0%
|
2,368
|
|
|
2,623
|
|
||
Various mortgage notes, secured by certain real estate bearing interest at various rates
|
630
|
|
|
647
|
|
||
Total notes receivable, net
|
$
|
25,863
|
|
|
$
|
7,332
|
|
|
June 30,
2014 |
|
December 31,
2013 |
||||
In-substance defeased debt, interest payable monthly at 5.62% at June 30, 2014 and December 31, 2013, secured and paid by pledged treasury securities, due October 1, 2015
|
$
|
25,967
|
|
|
$
|
26,260
|
|
Community Development District debt, secured by certain real estate and standby note purchase agreements, due May 2016 — May 2039, bearing interest at 2.25% to 7.15% at June 30, 2014 and December 31, 2013
|
5,870
|
|
|
11,512
|
|
||
Construction loan in the Pier Park North joint venture, due February 2016, bearing interest at LIBOR plus 210 basis points, or 2.25% and 2.27% at June 30, 2014 and December 31, 2013, respectively
|
22,416
|
|
|
6,445
|
|
||
Total debt
|
$
|
54,253
|
|
|
$
|
44,217
|
|
|
June 30,
2014 |
||
2014
|
$
|
297
|
|
2015
|
25,783
|
|
|
2016
|
22,533
|
|
|
2017
|
121
|
|
|
2018
|
126
|
|
|
Thereafter
|
5,393
|
|
|
|
$
|
54,253
|
|
|
June 30,
2014 |
|
December 31,
2013 |
||||
Accrued compensation
|
$
|
3,017
|
|
|
$
|
3,705
|
|
Deferred revenue
|
15,227
|
|
|
28,551
|
|
||
Membership deposits
|
8,569
|
|
|
8,545
|
|
||
Other accrued liabilities
|
7,915
|
|
|
8,544
|
|
||
Accrued interest expense for Senior Notes held by special purpose entity (Note 4)
|
2,161
|
|
|
—
|
|
||
Total accrued liabilities and deferred credits
|
$
|
36,889
|
|
|
$
|
49,345
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Current:
|
|
|
|
|
|
|
|
||||||||
Federal
|
$
|
(19,770
|
)
|
|
$
|
—
|
|
|
$
|
64,443
|
|
|
$
|
—
|
|
State
|
(31
|
)
|
|
—
|
|
|
129
|
|
|
—
|
|
||||
Total
|
(19,801
|
)
|
|
—
|
|
|
64,572
|
|
|
—
|
|
||||
Deferred:
|
|
|
|
|
|
|
|
||||||||
Federal
|
28,415
|
|
|
(6
|
)
|
|
40,459
|
|
|
(6
|
)
|
||||
State
|
76
|
|
|
6
|
|
|
10,563
|
|
|
6
|
|
||||
Total
|
28,491
|
|
|
—
|
|
|
51,022
|
|
|
—
|
|
||||
Income tax expense
|
$
|
8,690
|
|
|
$
|
—
|
|
|
$
|
115,594
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Tax at the statutory federal rate
|
$
|
8,154
|
|
|
$
|
947
|
|
|
$
|
186,619
|
|
|
$
|
81
|
|
State income taxes (net of federal benefit)
|
816
|
|
|
95
|
|
|
18,662
|
|
|
8
|
|
||||
Decrease in valuation allowance
|
(864
|
)
|
|
(907
|
)
|
|
(90,164
|
)
|
|
(100
|
)
|
||||
Other
|
584
|
|
|
(135
|
)
|
|
477
|
|
|
11
|
|
||||
Income tax expense
|
$
|
8,690
|
|
|
$
|
—
|
|
|
$
|
115,594
|
|
|
$
|
—
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
2014
|
|
2013
|
||||
Deferred tax assets:
|
|
|
|
||||
Federal net operating carryforwards
|
$
|
—
|
|
|
$
|
26,884
|
|
State net operating loss carryforwards
|
11,800
|
|
|
20,759
|
|
||
Impairment losses
|
118,361
|
|
|
151,050
|
|
||
Prepaid income from land sales
|
5,517
|
|
|
10,210
|
|
||
Other
|
4,156
|
|
|
7,592
|
|
||
Total gross deferred tax assets
|
139,834
|
|
|
216,495
|
|
||
Valuation allowance
|
(5,789
|
)
|
|
(95,953
|
)
|
||
Total net deferred tax assets
|
134,045
|
|
|
120,542
|
|
||
Deferred tax liabilities:
|
|
|
|
||||
Investment in real estate and property and equipment basis differences
|
1,794
|
|
|
1,726
|
|
||
Deferred gain on land sales and involuntary conversions
|
30,812
|
|
|
31,385
|
|
||
Prepaid pension asset
|
15,087
|
|
|
15,596
|
|
||
Installment sales
|
126,452
|
|
|
58,969
|
|
||
Total gross deferred tax liabilities
|
174,145
|
|
|
107,676
|
|
||
Total net deferred tax (liability) asset
|
$
|
(40,100
|
)
|
|
$
|
12,866
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Service cost
|
$
|
—
|
|
|
$
|
(34
|
)
|
|
$
|
—
|
|
|
$
|
224
|
|
Interest cost
|
162
|
|
|
142
|
|
|
347
|
|
|
312
|
|
||||
Expected loss (return) on assets
|
138
|
|
|
(272
|
)
|
|
275
|
|
|
(718
|
)
|
||||
Settlement charges
|
200
|
|
|
394
|
|
|
440
|
|
|
394
|
|
||||
Amortization of loss
|
125
|
|
|
101
|
|
|
257
|
|
|
198
|
|
||||
Net periodic pension cost
|
$
|
625
|
|
|
$
|
331
|
|
|
$
|
1,319
|
|
|
$
|
410
|
|
|
|
|
|
|
|
|
|
|
June 30,
2014 |
|
March 31,
2014 |
|
December 31,
2013 |
Discount rate
|
3.70%
|
|
3.93%
|
|
4.37%
|
Expected long term rate on plan assets
|
—%
|
|
—%
|
|
—%
|
Rate of compensation increase
|
N/A
|
|
N/A
|
|
N/A
|
|
Defined Benefit Pension Items
|
|
Unrealized Gains and (Losses) on Available-for-Sale Securities
|
|
Total
|
||||||
Accumulated other comprehensive loss at March 31, 2014
|
$
|
(5,415
|
)
|
|
$
|
(2,362
|
)
|
|
$
|
(7,777
|
)
|
Other comprehensive income (loss) before reclassifications
|
(115
|
)
|
|
311
|
|
|
196
|
|
|||
Amounts reclassified from accumulated other comprehensive loss
|
200
|
|
|
266
|
|
|
466
|
|
|||
Other comprehensive income
|
85
|
|
|
577
|
|
|
662
|
|
|||
Accumulated other comprehensive loss at June 30, 2014
|
$
|
(5,330
|
)
|
|
$
|
(1,785
|
)
|
|
$
|
(7,115
|
)
|
|
Defined Benefit Pension Items
|
|
Unrealized Gains and (Losses) on Available-for-Sale Securities
|
|
Total
|
||||||
Accumulated other comprehensive loss at December 31, 2013
|
$
|
(5,392
|
)
|
|
$
|
(2,125
|
)
|
|
$
|
(7,517
|
)
|
Other comprehensive loss before reclassifications
|
(367
|
)
|
|
(173
|
)
|
|
(540
|
)
|
|||
Amounts reclassified from accumulated other comprehensive loss
|
429
|
|
|
513
|
|
|
942
|
|
|||
Other comprehensive income
|
62
|
|
|
340
|
|
|
402
|
|
|||
Accumulated other comprehensive loss at June 30, 2014
|
$
|
(5,330
|
)
|
|
$
|
(1,785
|
)
|
|
$
|
(7,115
|
)
|
|
Defined Benefit Pension Items
|
|
Unrealized Gains and (Losses) on Available-for-Sale Securities
|
|
Total
|
||||||
Accumulated other comprehensive loss at March 31, 2013
|
$
|
(8,555
|
)
|
|
$
|
—
|
|
|
$
|
(8,555
|
)
|
Other comprehensive income (loss) before reclassifications
|
2,013
|
|
|
(891
|
)
|
|
1,122
|
|
|||
Amounts reclassified from accumulated other comprehensive loss
|
495
|
|
|
—
|
|
|
495
|
|
|||
Other comprehensive income (loss)
|
2,508
|
|
|
(891
|
)
|
|
1,617
|
|
|||
Accumulated other comprehensive loss at June 30, 2013
|
$
|
(6,047
|
)
|
|
$
|
(891
|
)
|
|
$
|
(6,938
|
)
|
|
Defined Benefit Pension Items
|
|
Unrealized Gains and (Losses) on Available-for-Sale Securities
|
|
Total
|
||||||
Accumulated other comprehensive loss at December 31, 2012
|
$
|
(8,652
|
)
|
|
$
|
—
|
|
|
$
|
(8,652
|
)
|
Other comprehensive income (loss) before reclassifications
|
2,013
|
|
|
(891
|
)
|
|
1,122
|
|
|||
Amounts reclassified from accumulated other comprehensive loss
|
592
|
|
|
—
|
|
|
592
|
|
|||
Other comprehensive income (loss)
|
2,605
|
|
|
(891
|
)
|
|
1,714
|
|
|||
Accumulated other comprehensive loss at June 30, 2013
|
$
|
(6,047
|
)
|
|
$
|
(891
|
)
|
|
$
|
(6,938
|
)
|
|
|
Amount Reclassified from Accumulated Other Comprehensive Loss
|
|
Amount Reclassified from Accumulated Other Comprehensive Loss
|
|
|
||||||||||||
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
|
|
||||||||||||
Details about Accumulated Other Comprehensive Loss Components
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
Affected Line in the Condensed Consolidated Statements of Operations
|
||||||||
Defined Benefit Pension Items
|
|
|
|
|
|
|
|
|
|
|
||||||||
Amortization of loss
|
|
$
|
125
|
|
|
$
|
101
|
|
|
$
|
257
|
|
|
$
|
198
|
|
|
Net periodic pension costs, Note 13.
Employee Benefit Plan
|
Settlement cost
|
|
200
|
|
|
394
|
|
|
440
|
|
|
394
|
|
|
Net periodic pension costs, Note 13.
Employee Benefit Plan
|
||||
Total before tax
|
|
325
|
|
|
495
|
|
|
697
|
|
|
592
|
|
|
|
||||
Income tax benefit
|
|
(125
|
)
|
|
—
|
|
|
(268
|
)
|
|
—
|
|
|
|
||||
Net of tax
|
|
200
|
|
|
495
|
|
|
429
|
|
|
592
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Realized loss on sale of available-for-sale securities
|
|
432
|
|
|
—
|
|
|
833
|
|
|
—
|
|
|
Investment income, net
|
||||
Income tax benefit
|
|
(166
|
)
|
|
—
|
|
|
(320
|
)
|
|
—
|
|
|
|
||||
Net of tax
|
|
266
|
|
|
—
|
|
|
513
|
|
|
—
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
Total reclassifications for the period, net of tax
|
|
$
|
466
|
|
|
$
|
495
|
|
|
$
|
942
|
|
|
$
|
592
|
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Operating Revenues
|
|
|
|
|
|
|
|
||||||||
Residential real estate
|
$
|
47,724
|
|
|
$
|
5,511
|
|
|
$
|
53,427
|
|
|
$
|
13,292
|
|
Commercial real estate
|
980
|
|
|
1,172
|
|
|
3,265
|
|
|
1,398
|
|
||||
Resorts, leisure and leasing operations
|
18,196
|
|
|
17,053
|
|
|
26,397
|
|
|
26,075
|
|
||||
Forestry
|
1,144
|
|
|
9,783
|
|
|
579,017
|
|
|
19,463
|
|
||||
Other
|
120
|
|
|
269
|
|
|
144
|
|
|
333
|
|
||||
Consolidated operating revenues
|
$
|
68,164
|
|
|
$
|
33,788
|
|
|
$
|
662,250
|
|
|
$
|
60,561
|
|
|
|
|
|
|
|
|
|
||||||||
Income (loss) before equity in loss from unconsolidated affiliates and income taxes:
|
|
|
|
|
|
|
|
||||||||
Residential real estate
|
$
|
26,023
|
|
|
$
|
(131
|
)
|
|
26,381
|
|
|
$
|
164
|
|
|
Commercial real estate
|
164
|
|
|
(188
|
)
|
|
964
|
|
|
(864
|
)
|
||||
Resorts, leisure and leasing operations
|
2,657
|
|
|
3,031
|
|
|
964
|
|
|
2,086
|
|
||||
Forestry
|
1,012
|
|
|
3,817
|
|
|
515,110
|
|
|
7,322
|
|
||||
Other
|
(6,546
|
)
|
|
(3,816
|
)
|
|
(10,207
|
)
|
|
(8,460
|
)
|
||||
Consolidated income before equity in loss from unconsolidated affiliates and income taxes
|
$
|
23,310
|
|
|
$
|
2,713
|
|
|
$
|
533,212
|
|
|
$
|
248
|
|
|
|
|
|
|
|
|
|
|
June 30,
2014 |
|
December 31, 2013
|
||||
Total Assets:
|
|
|
|
||||
Residential real estate
|
$
|
130,967
|
|
|
$
|
141,097
|
|
Commercial real estate
|
63,036
|
|
|
62,924
|
|
||
Resorts, leisure and leasing operations
(a)
|
159,026
|
|
|
142,940
|
|
||
Forestry
|
20,295
|
|
|
60,889
|
|
||
Other
|
967,546
|
|
|
261,622
|
|
||
Total assets
|
$
|
1,340,870
|
|
|
$
|
669,472
|
|
(a)
|
Includes $2.4 million and $2.2 million of investment in equity method investees at June 30, 2014 and December 31, 2013, respectively.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||
Segment Operating Revenues
|
|
|
|
|
|
|
|
||||
Residential real estate
|
16.8
|
%
|
|
16.3
|
%
|
|
20.6
|
%
|
|
22.0
|
%
|
Commercial real estate
|
4.2
|
%
|
|
3.5
|
%
|
|
6.9
|
%
|
|
2.2
|
%
|
Resorts, leisure and leasing operations
|
74.1
|
%
|
|
50.5
|
%
|
|
55.3
|
%
|
|
43.1
|
%
|
Forestry
|
4.5
|
%
|
|
29.0
|
%
|
|
17.0
|
%
|
|
32.1
|
%
|
Other
|
0.4
|
%
|
|
0.7
|
%
|
|
0.2
|
%
|
|
0.6
|
%
|
Consolidated operating revenues
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
•
|
the sale of developed homesites and homes;
|
•
|
the sale of parcels of entitled, undeveloped lots;
|
•
|
a lot residual on homebuilder sales that provides us a percentage of the sale price of the completed home if the home price exceeds a negotiated threshold;
|
•
|
the sale of impact fee credits; and
|
•
|
other fees on certain transactions.
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
In millions
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Real estate sales
|
$
|
48.9
|
|
|
$
|
7.0
|
|
|
$
|
626.6
|
|
|
$
|
15.0
|
|
Resorts, leisure and leasing revenues
|
18.2
|
|
|
17.0
|
|
|
26.4
|
|
|
26.1
|
|
||||
Timber sales
|
1.1
|
|
|
9.8
|
|
|
9.2
|
|
|
19.5
|
|
||||
Total
|
68.2
|
|
|
33.8
|
|
|
662.2
|
|
|
60.6
|
|
||||
Expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of real estate sales
|
20.4
|
|
|
3.7
|
|
|
82.4
|
|
|
8.7
|
|
||||
Cost of resorts, leisure and leasing revenues
|
13.6
|
|
|
12.7
|
|
|
21.8
|
|
|
20.9
|
|
||||
Cost of timber sales
|
0.2
|
|
|
5.8
|
|
|
4.1
|
|
|
11.8
|
|
||||
Other operating expenses
|
2.8
|
|
|
3.2
|
|
|
7.2
|
|
|
6.1
|
|
||||
Corporate expenses
|
4.4
|
|
|
4.5
|
|
|
8.5
|
|
|
9.0
|
|
||||
Administrative costs associated with special purpose entities (Note 4)
|
3.7
|
|
|
—
|
|
|
3.7
|
|
|
—
|
|
||||
Depreciation, depletion and amortization
|
2.0
|
|
|
2.3
|
|
|
4.0
|
|
|
4.7
|
|
||||
Total
|
47.1
|
|
|
32.2
|
|
|
131.7
|
|
|
61.2
|
|
||||
Operating income (loss)
|
21.1
|
|
|
1.6
|
|
|
530.5
|
|
|
(0.6
|
)
|
||||
Other income (expense):
|
|
|
|
|
|
|
|
||||||||
Investment income, net
|
3.9
|
|
|
0.3
|
|
|
4.2
|
|
|
0.4
|
|
||||
Interest expense
|
(2.2
|
)
|
|
(0.3
|
)
|
|
(2.9
|
)
|
|
(0.9
|
)
|
||||
Other, net
|
0.5
|
|
|
1.1
|
|
|
1.4
|
|
|
1.3
|
|
||||
Total other income
|
2.2
|
|
|
1.1
|
|
|
2.7
|
|
|
0.8
|
|
||||
Income before equity in loss from unconsolidated affiliates and income taxes
|
23.3
|
|
|
2.7
|
|
|
533.2
|
|
|
0.2
|
|
||||
Income tax expense
|
(8.7
|
)
|
|
—
|
|
|
(115.6
|
)
|
|
—
|
|
||||
Net income
|
$
|
14.6
|
|
|
$
|
2.7
|
|
|
$
|
417.6
|
|
|
$
|
0.2
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||
|
2014
|
|
%
(1)
|
|
2013
|
|
%
(1)
|
|
2014
|
|
%
(1)
|
|
2013
|
|
%
(1)
|
||||||||||||
|
Dollars in millions
|
||||||||||||||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential real estate sales
|
$
|
4.2
|
|
|
8.6
|
%
|
|
$
|
5.5
|
|
|
78.6
|
%
|
|
$
|
9.9
|
|
|
1.6
|
%
|
|
$
|
13.3
|
|
|
88.7
|
%
|
RiverTown Sale
|
43.6
|
|
|
89.2
|
%
|
|
—
|
|
|
—
|
%
|
|
43.6
|
|
|
7.0
|
%
|
|
—
|
|
|
—
|
%
|
||||
Commercial real estate sales
|
1.0
|
|
|
2.0
|
%
|
|
1.2
|
|
|
17.1
|
%
|
|
3.4
|
|
|
0.5
|
%
|
|
1.4
|
|
|
9.3
|
%
|
||||
AgReserves Sale and other
|
0.1
|
|
|
0.2
|
%
|
|
0.3
|
|
|
4.3
|
%
|
|
569.7
|
|
|
90.9
|
%
|
|
0.3
|
|
|
2.0
|
%
|
||||
Real estate sales
|
$
|
48.9
|
|
|
100.0
|
%
|
|
$
|
7.0
|
|
|
100.0
|
%
|
|
$
|
626.6
|
|
|
100.0
|
%
|
|
$
|
15.0
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Residential real estate sales
|
$
|
1.7
|
|
|
40.5
|
%
|
|
$
|
2.4
|
|
|
43.6
|
%
|
|
$
|
4.7
|
|
|
47.5
|
%
|
|
$
|
5.4
|
|
|
40.6
|
%
|
RiverTown Sale
|
26.0
|
|
|
59.6
|
%
|
|
—
|
|
|
—
|
%
|
|
26.0
|
|
|
59.6
|
%
|
|
—
|
|
|
—
|
%
|
||||
Commercial real estate sales
|
0.7
|
|
|
70.0
|
%
|
|
0.6
|
|
|
50.0
|
%
|
|
2.3
|
|
|
67.6
|
%
|
|
0.6
|
|
|
42.9
|
%
|
||||
AgReserves Sale and other
|
0.1
|
|
|
100.0
|
%
|
|
0.3
|
|
|
100.0
|
%
|
|
511.2
|
|
|
89.7
|
%
|
|
0.3
|
|
|
100.0
|
%
|
||||
Gross profit
|
$
|
28.5
|
|
|
58.3
|
%
|
|
$
|
3.3
|
|
|
47.1
|
%
|
|
$
|
544.2
|
|
|
86.8
|
%
|
|
$
|
6.3
|
|
|
42.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1
|
)
|
Calculated percentage of total real estate sales and the respective gross profit percentage.
|
|
Three Months Ended June 30,
|
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
Dollars in millions
|
||||||||||||||
Resorts, leisure and leasing revenues
|
$
|
18.2
|
|
|
$
|
17.0
|
|
|
$
|
26.4
|
|
|
$
|
26.1
|
|
Gross profit
|
$
|
4.6
|
|
|
$
|
4.3
|
|
|
$
|
4.6
|
|
|
$
|
5.2
|
|
Gross profit margin
|
25.3
|
%
|
|
25.3
|
%
|
|
17.4
|
%
|
|
19.9
|
%
|
||||
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
Dollars in millions
|
||||||||||||||
Timber sales
|
$
|
1.1
|
|
|
$
|
9.8
|
|
|
$
|
9.2
|
|
|
$
|
19.5
|
|
Gross profit
|
$
|
0.9
|
|
|
$
|
4.0
|
|
|
$
|
5.1
|
|
|
$
|
7.7
|
|
Gross profit margin
|
81.8
|
%
|
|
40.8
|
%
|
|
55.4
|
%
|
|
39.5
|
%
|
||||
|
|
|
|
|
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Net investment income from available-for-sale securities
|
$
|
1.6
|
|
|
$
|
0.3
|
|
|
$
|
1.8
|
|
|
$
|
0.3
|
|
Interest income from investments in special purpose entities
|
2.0
|
|
|
—
|
|
|
2.0
|
|
|
—
|
|
||||
Interest accrued on notes receivable
|
0.3
|
|
|
—
|
|
|
0.4
|
|
|
0.1
|
|
||||
Total investment income, net
|
3.9
|
|
|
0.3
|
|
|
4.2
|
|
|
0.4
|
|
||||
Interest expense
|
(0.1
|
)
|
|
(0.3
|
)
|
|
(0.8
|
)
|
|
(0.9
|
)
|
||||
Interest expense and amortization of discount and issuance costs for Senior Notes issued by special purpose entity
|
(2.1
|
)
|
|
—
|
|
|
(2.1
|
)
|
|
—
|
|
||||
Total interest expense
|
(2.2
|
)
|
|
(0.3
|
)
|
|
(2.9
|
)
|
|
(0.9
|
)
|
||||
Other, net
|
0.5
|
|
|
1.1
|
|
|
1.4
|
|
|
1.3
|
|
||||
Total other income
|
$
|
2.2
|
|
|
$
|
1.1
|
|
|
$
|
2.7
|
|
|
$
|
0.8
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
In millions
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
RiverTown Sale
|
$
|
43.6
|
|
|
$
|
—
|
|
|
$
|
43.6
|
|
|
$
|
—
|
|
Real estate sales
|
3.8
|
|
|
5.4
|
|
|
9.4
|
|
|
13.0
|
|
||||
Other revenues
|
0.4
|
|
|
0.1
|
|
|
0.5
|
|
|
0.3
|
|
||||
Total revenues
|
47.8
|
|
|
5.5
|
|
|
53.5
|
|
|
13.3
|
|
||||
Expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of real estate sales - RiverTown Sale
|
17.6
|
|
|
—
|
|
|
17.6
|
|
|
—
|
|
||||
Cost of real estate sales and other revenues
|
2.5
|
|
|
3.1
|
|
|
5.2
|
|
|
7.9
|
|
||||
Other operating expenses
|
1.9
|
|
|
2.1
|
|
|
4.0
|
|
|
4.1
|
|
||||
Depreciation and amortization
|
0.1
|
|
|
0.2
|
|
|
0.3
|
|
|
0.4
|
|
||||
Total expenses
|
22.1
|
|
|
5.4
|
|
|
27.1
|
|
|
12.4
|
|
||||
Operating income
|
25.7
|
|
|
0.1
|
|
|
26.4
|
|
|
0.9
|
|
||||
Other income (expense)
|
0.3
|
|
|
(0.2
|
)
|
|
—
|
|
|
(0.7
|
)
|
||||
Net income (loss) before income taxes
|
$
|
26.0
|
|
|
$
|
(0.1
|
)
|
|
$
|
26.4
|
|
|
$
|
0.2
|
|
|
Three Months Ended June 30, 2014
|
|
Three Months Ended June 30, 2013
|
||||||||||||||||||||||||||||||||
|
Units Sold
|
|
Revenues
|
|
Cost of
Sales
|
|
Gross
Profit
|
|
Gross
Profit Margin
|
|
Units Sold
|
|
Revenues
|
|
Cost of
Sales
|
|
Gross
Profit
|
|
Gross
Profit Margin
|
||||||||||||||||
|
(Dollars in millions)
|
||||||||||||||||||||||||||||||||||
Northwest Florida:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Resort homesites
|
5
|
|
|
$
|
1.6
|
|
|
$
|
1.1
|
|
|
$
|
0.5
|
|
|
31.3
|
%
|
|
16
|
|
|
$
|
3.5
|
|
|
$
|
1.9
|
|
|
$
|
1.6
|
|
|
45.7
|
%
|
Primary homesites
|
20
|
|
|
2.2
|
|
|
1.3
|
|
|
0.9
|
|
|
40.9
|
%
|
|
22
|
|
|
1.3
|
|
|
0.8
|
|
|
0.5
|
|
|
38.5
|
%
|
||||||
RiverTown community
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
%
|
|
14
|
|
|
0.6
|
|
|
0.4
|
|
|
0.2
|
|
|
33.3
|
%
|
||||||
Total
|
25
|
|
|
$
|
3.8
|
|
|
$
|
2.4
|
|
|
$
|
1.4
|
|
|
36.8
|
%
|
|
52
|
|
|
$
|
5.4
|
|
|
$
|
3.1
|
|
|
$
|
2.3
|
|
|
42.6
|
%
|
|
Six Months Ended June 30, 2014
|
|
Six Months Ended June 30, 2013
|
||||||||||||||||||||||||||||||||
|
Units Sold
|
|
Revenues
|
|
Cost of
Sales
|
|
Gross
Profit
|
|
Gross
Profit Margin
|
|
Units Sold
|
|
Revenues
|
|
Cost of
Sales
|
|
Gross
Profit
|
|
Gross
Profit Margin
|
||||||||||||||||
|
(Dollars in millions)
|
||||||||||||||||||||||||||||||||||
Northwest Florida:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Resort homesites
|
18
|
|
|
$
|
5.4
|
|
|
$
|
2.6
|
|
|
$
|
2.8
|
|
|
51.9
|
%
|
|
57
|
|
|
$
|
9.2
|
|
|
$
|
5.3
|
|
|
$
|
3.9
|
|
|
42.4
|
%
|
Primary homesites
|
39
|
|
|
3.7
|
|
|
2.4
|
|
|
1.3
|
|
|
35.1
|
%
|
|
47
|
|
|
2.7
|
|
|
1.8
|
|
|
0.9
|
|
|
33.3
|
%
|
||||||
RiverTown community
|
7
|
|
|
0.3
|
|
|
0.2
|
|
|
0.1
|
|
|
33.3
|
%
|
|
28
|
|
|
1.1
|
|
|
0.8
|
|
|
0.3
|
|
|
27.3
|
%
|
||||||
Total
|
64
|
|
|
$
|
9.4
|
|
|
$
|
5.2
|
|
|
$
|
4.2
|
|
|
44.7
|
%
|
|
132
|
|
|
$
|
13.0
|
|
|
$
|
7.9
|
|
|
$
|
5.1
|
|
|
39.2
|
%
|
|
Three Months Ended June 30,
|
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
In millions
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Real estate sales
|
$
|
1.0
|
|
|
$
|
1.2
|
|
|
$
|
3.4
|
|
|
$
|
1.4
|
|
Expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of real estate sales
|
0.3
|
|
|
0.6
|
|
|
1.1
|
|
|
0.8
|
|
||||
Other operating expenses
|
0.6
|
|
|
0.7
|
|
|
1.2
|
|
|
1.4
|
|
||||
Total expenses
|
0.9
|
|
|
1.3
|
|
|
2.3
|
|
|
2.2
|
|
||||
Operating income (loss)
|
0.1
|
|
|
(0.1
|
)
|
|
1.1
|
|
|
(0.8
|
)
|
||||
Other expense
|
—
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|
(0.1
|
)
|
||||
Net Income (loss) before income taxes
|
$
|
0.1
|
|
|
$
|
(0.2
|
)
|
|
$
|
1.0
|
|
|
$
|
(0.9
|
)
|
|
Three Months Ended June 30,
|
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
In millions
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
Resorts and leisure operations
|
$
|
16.4
|
|
|
$
|
15.8
|
|
|
$
|
23.4
|
|
|
$
|
23.9
|
|
Leasing operations
|
1.8
|
|
|
1.2
|
|
|
3.0
|
|
|
2.2
|
|
||||
Total revenues
|
18.2
|
|
|
17.0
|
|
|
26.4
|
|
|
26.1
|
|
||||
Expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of resorts and leisure operations
|
13.1
|
|
|
12.2
|
|
|
20.7
|
|
|
20.0
|
|
||||
Cost of leasing operations
|
0.6
|
|
|
0.5
|
|
|
1.2
|
|
|
1.0
|
|
||||
Operating expenses
|
0.2
|
|
|
0.1
|
|
|
0.4
|
|
|
0.2
|
|
||||
Depreciation
|
1.7
|
|
|
1.6
|
|
|
3.2
|
|
|
3.2
|
|
||||
Total expenses
|
15.6
|
|
|
14.4
|
|
|
25.5
|
|
|
24.4
|
|
||||
Operating income
|
2.6
|
|
|
2.6
|
|
|
0.9
|
|
|
1.7
|
|
||||
Other income
|
—
|
|
|
0.4
|
|
|
$
|
—
|
|
|
0.4
|
|
|||
Net income before income taxes
|
$
|
2.6
|
|
|
$
|
3.0
|
|
|
$
|
0.9
|
|
|
$
|
2.1
|
|
|
Three Months Ended June 30, 2014
|
|
Three Months Ended June 30, 2013
|
||||||||||||||||||
|
Revenues
|
|
Gross
Profit
|
|
Gross
Profit Margin
|
|
Revenues
|
|
Gross
Profit
|
|
Gross
Profit Margin
|
||||||||||
|
Dollars in millions
|
||||||||||||||||||||
Inn and vacation rentals
|
$
|
12.5
|
|
|
$
|
2.9
|
|
|
23.2
|
%
|
|
$
|
11.5
|
|
|
$
|
2.8
|
|
|
24.3
|
%
|
Clubs
|
3.0
|
|
|
0.2
|
|
|
6.7
|
%
|
|
3.4
|
|
|
0.5
|
|
|
14.7
|
%
|
||||
Marinas
|
0.9
|
|
|
0.2
|
|
|
22.2
|
%
|
|
0.9
|
|
|
0.3
|
|
|
33.3
|
%
|
||||
Leasing
|
1.8
|
|
|
1.2
|
|
|
66.7
|
%
|
|
1.2
|
|
|
0.7
|
|
|
58.3
|
%
|
||||
Total
|
$
|
18.2
|
|
|
$
|
4.5
|
|
|
24.7
|
%
|
|
$
|
17.0
|
|
|
$
|
4.3
|
|
|
25.3
|
%
|
|
Six Months Ended June 30, 2014
|
|
Six Months Ended June 30, 2013
|
||||||||||||||||||
|
Revenues
|
|
Gross
Profit
|
|
Gross
Profit Margin
|
|
Revenues
|
|
Gross
Profit
|
|
Gross
Profit Margin
|
||||||||||
|
Dollars in millions
|
||||||||||||||||||||
Inn and vacation rentals
|
$
|
16.9
|
|
|
$
|
2.3
|
|
|
13.6
|
%
|
|
$
|
16.9
|
|
|
$
|
2.9
|
|
|
17.2
|
%
|
Clubs
|
5.1
|
|
|
0.1
|
|
|
2.0
|
%
|
|
5.7
|
|
|
0.7
|
|
|
12.3
|
%
|
||||
Marinas
|
1.4
|
|
|
0.3
|
|
|
21.4
|
%
|
|
1.3
|
|
|
0.4
|
|
|
30.8
|
%
|
||||
Leasing
|
3.0
|
|
|
1.8
|
|
|
60.0
|
%
|
|
2.2
|
|
|
1.2
|
|
|
54.5
|
%
|
||||
Total
|
$
|
26.4
|
|
|
$
|
4.5
|
|
|
17.0
|
%
|
|
$
|
26.1
|
|
|
$
|
5.2
|
|
|
19.9
|
%
|
|
Three Months Ended June 30,
|
|
Six Months Ended
June 30, |
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
|
In millions
|
||||||||||||||
Revenues:
|
|
|
|
|
|
|
|
||||||||
AgReserves - Real estate sales
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
569.7
|
|
|
$
|
—
|
|
Timber sales
|
1.1
|
|
|
9.8
|
|
|
9.2
|
|
|
19.5
|
|
||||
Total revenues
|
1.1
|
|
|
9.8
|
|
|
578.9
|
|
|
19.5
|
|
||||
Expenses:
|
|
|
|
|
|
|
|
||||||||
AgReserves - Cost of real estate sales
|
—
|
|
|
—
|
|
|
58.5
|
|
|
—
|
|
||||
Cost of timber sales
|
0.2
|
|
|
5.8
|
|
|
4.1
|
|
|
11.8
|
|
||||
Other operating expenses
|
0.1
|
|
|
0.2
|
|
|
1.5
|
|
|
0.4
|
|
||||
Depreciation and depletion
|
0.1
|
|
|
0.5
|
|
|
0.5
|
|
|
1.0
|
|
||||
Total expenses
|
0.4
|
|
|
6.5
|
|
|
64.6
|
|
|
13.2
|
|
||||
Operating income
|
0.7
|
|
|
3.3
|
|
|
514.3
|
|
|
6.3
|
|
||||
Other income
|
0.3
|
|
|
0.5
|
|
|
0.8
|
|
|
1.0
|
|
||||
Net income before income taxes
|
$
|
1.0
|
|
|
$
|
3.8
|
|
|
$
|
515.1
|
|
|
$
|
7.3
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended
June 30, |
||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||
Percent of total tons sold:
|
|
|
|
|
|
|
|
||||
Pine pulpwood
|
87
|
%
|
|
67
|
%
|
|
69
|
%
|
|
68
|
%
|
Pine sawtimber
|
9
|
%
|
|
28
|
%
|
|
22
|
%
|
|
27
|
%
|
Pine grade logs
|
4
|
%
|
|
5
|
%
|
|
7
|
%
|
|
5
|
%
|
Other
|
—
|
%
|
|
—
|
%
|
|
2
|
%
|
|
—
|
%
|
Total
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
100
|
%
|
|
Six Months Ended
June 30, |
||||||
|
2014
|
|
2013
|
||||
|
(In millions)
|
||||||
Net cash provided by operating activities
|
$
|
340.6
|
|
|
$
|
9.0
|
|
Net cash used in investing activities
|
(502.8
|
)
|
|
(122.2
|
)
|
||
Net cash provided by financing activities
|
191.2
|
|
|
1.4
|
|
||
Net increase (decrease) in cash and cash equivalents
|
29.0
|
|
|
(111.8
|
)
|
||
Cash and cash equivalents at beginning of the period
|
21.9
|
|
|
166.0
|
|
||
Cash and cash equivalents at end of the period
|
$
|
50.9
|
|
|
$
|
54.2
|
|
|
Payments due by Period
|
||||||||||||||||||
Contractual Cash Obligations
|
Total
|
|
Less Than
1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More Than
5 Years
|
||||||||||
|
In millions
|
||||||||||||||||||
Debt
(1)(2)
|
$
|
54.3
|
|
|
$
|
0.3
|
|
|
$
|
48.4
|
|
|
$
|
0.2
|
|
|
$
|
5.4
|
|
Interest related to debt, including community development district debt
(2)
|
7.8
|
|
|
2.2
|
|
|
1.3
|
|
|
0.5
|
|
|
3.8
|
|
|||||
Purchase obligations
(3)
|
9.6
|
|
|
9.3
|
|
|
0.3
|
|
|
—
|
|
|
—
|
|
|||||
Senior Notes held by special purpose entity
(4)
|
180.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
180.0
|
|
|||||
Interest related to Senior Notes held by special purpose entity
(4)
|
125.2
|
|
|
8.6
|
|
|
17.1
|
|
|
17.1
|
|
|
82.4
|
|
|||||
Total contractual cash obligations
|
$
|
376.9
|
|
|
$
|
20.4
|
|
|
$
|
67.1
|
|
|
$
|
17.8
|
|
|
$
|
271.6
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes debt defeased in connection with the sale of our office building portfolio in the amount of $26.1 million, which will be paid by pledged treasury securities.
|
(2)
|
These amounts do not include additional CDD obligations associated with unplatted properties that are not yet fixed and determinable or that are not yet probable or reasonably estimable.
|
(3)
|
These aggregate amounts include individual contracts in excess of $0.1 million.
|
(4)
|
Senior Notes held by a consolidated special purpose entity that is not the Company's liability or obligation.
See Note 4, Real Estate Sales,
of our unaudited condensed consolidated financial statements included in this quarterly report.
|
•
|
our expectations concerning demand for residential real estate, especially for mixed-use and active adult communities, in Northwest Florida and our ability to develop projects that meet that demand;
|
•
|
our beliefs concerning the seasonality of our revenues;
|
•
|
our expectations regarding the demand for commercial and industrial uses, and our ability to develop projects that meet that demand;
|
•
|
the anticipated benefits of the AgReserves Sale and RiverTown Sale and the impact of such sales on our operations;
|
•
|
our belief that the St. Joe Club & Resorts will provide us with a competitive advantage;
|
•
|
our expectations regarding the financial impact of our decision to launch the St. Joe Club & Resorts and to privatize certain golf courses and resorts facilities;
|
•
|
our expectations regarding the amount and timing of the impact fees which we will receive in connection with the RiverTown Sale;
|
•
|
our expectations regarding the costs and benefits of the Timber Note monetization structure, including the timing and amount of the expenses that NFTS will incur during the life of the Timber Note and the amount of the remaining principal balance;
|
•
|
our expectation regarding the effect and timing of the termination of our pension plan;
|
•
|
our expectation regarding our current cash position and our anticipated cash flows will provide us with sufficient liquidity to satisfy our working capital needs, expected capital expenditures and principal and interest payments on our long term debt;
|
•
|
our expectation regarding the impact of pending litigation, claims, other disputes or governmental proceedings on our financial position or results of operations, and our belief regarding the defenses to litigation claims against us;
|
•
|
our belief regarding compliance with environmental and other applicable regulatory matters;
|
•
|
our expectations with respect to the accounting treatment for the AgReserves Sale and RiverTown Sale; and
|
•
|
our estimates regarding certain tax matters and accounting valuations, including our ability to use our tax assets to mitigate any tax liabilities that arise from the AgReserves Sale and the amount we expect to pay in future income taxes.
|
•
|
our ability to capitalize on opportunities relating to mixed use and active adult community or communities in Northwest Florida;
|
•
|
any further downturns in the recovery of real estate markets in Florida or across the nation;
|
•
|
a slowing of the population growth in Florida, including a decrease of the migration of Baby Boomers to Florida;
|
•
|
our dependence on the real estate industry and the cyclical nature of our real estate operations;
|
•
|
our 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 our land, including the permits required for the launch of our planned active adult communities;
|
•
|
changes in laws, regulations or the regulatory environment affecting the development of real estate;
|
•
|
our ability to effectively deploy and invest the proceeds from the AgReserves Sale and the RiverTown Sale;
|
•
|
our ability to capitalize on the launch of the St. Joe Club & Resorts;
|
•
|
the anticipated benefits from our decision to launch the St. Joe Club & Resorts and to privatize certain golf courses and resort facilities may not be realized, may take longer to realize than expected, or may cost more to achieve than expected;
|
•
|
our ability to successfully estimate the amount and timing of the impact fees we will receive in connection with the RiverTown Sale;
|
•
|
our ability to successfully estimate the costs and benefits of the Timber Note monetization structure;
|
•
|
our ability to anticipate the effect and timing of the termination of our pension plan;
|
•
|
significant decreases in market value of our investments in marketable securities;
|
•
|
increases in operating costs, including costs related to real estate taxes, owner association fees, construction materials, labor and insurance, and our ability to manage our cost structure;
|
•
|
our ability to anticipate the impact of pending environmental litigation matters or governmental proceedings on our financial position or results of operations;
|
•
|
the expense, management distraction and possible liability associated with litigation, claims, other disputes or governmental proceedings, including the pending SEC investigation;
|
•
|
potential liability under environmental or construction laws, or other laws or regulations;
|
•
|
our ability to successfully estimate the impact of certain accounting and tax matters that arise from the AgReserves Sale and RiverTown Sale; and
|
•
|
significant tax payments arising from any acceleration of deferred taxes that arise from the AgReserves Sale or RiverTown Sale.
|
Exhibit
Number
|
|
Description
|
*4.1
|
|
Indenture, dated April 10, 2014, between Northwest Florida Timber Finance, LLC and Wilmington Trust, National Association.
|
*4.2
|
|
Form of 4.750% Senior Secured Note due 2029 (included in Exhibit 4.1).
|
*31.1
|
|
Certification by Park Brady, Chief Executive Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
*31.2
|
|
Certification by Marek Bakun, Chief Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
*32.1
|
|
Certification by Park Brady, Chief Executive Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
*32.2
|
|
Certification by Marek Bakun, Chief Financial Officer, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
**101.INS
|
|
XBRL Instance Document.
|
**101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
**101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
**101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
**101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
**101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
*
|
Filed herewith.
|
**
|
Furnished herewith.
|
|
|
THE ST. JOE COMPANY
|
|
|
|
Date:
|
August 7, 2014
|
/s/ Park Brady
|
|
|
Park Brady
|
|
|
Chief Executive Officer
|
|
|
(Duly Authorized Officer)
|
ARTICLE I DEFINITIONS
|
|||
Section 1.01
|
Definitions
.
|
2
|
|
Section 1.02
|
Rules of Construction.
|
14
|
|
ARTICLE II THE NOTES
|
|||
Section 2.01
|
Form
.
|
15
|
|
Section 2.02
|
Execution, Authentication and Delivery.
|
15
|
|
ARTICLE III COVENANTS
|
|||
Section 3.01
|
Collection of Payments on Indenture Collateral; Issuer Accounts
|
16
|
|
Section 3.02
|
Maintenance of Office or Agency
.
|
17
|
|
Section 3.03
|
Money for Payments To Be Held in Trust; Paying Agent
.
|
18
|
|
Section 3.04
|
Existence; Separate Legal Existence
.
|
20
|
|
Section 3.05
|
Payment of Expenses, Principal and Interest
.
|
20
|
|
Section 3.06
|
Protection of Indenture Collateral
.
|
21
|
|
Section 3.07
|
Opinions as to Indenture Collateral
.
|
22
|
|
Section 3.08
|
Furnishing of Rule 144A Information
.
|
23
|
|
Section 3.09
|
Performance of Obligations
.
|
23
|
|
Section 3.10
|
Additional Negative Covenants
.
|
24
|
|
Section 3.11
|
Annual Statement as to Compliance
.
|
26
|
|
Section 3.12
|
Investment Company Act.
|
26
|
|
Section 3.13
|
No Consolidation or Merger
.
|
27
|
|
Section 3.14
|
No Other Business
.
|
27
|
|
Section 3.15
|
No Borrowing
.
|
27
|
|
Section 3.16
|
Use of Initial Proceeds
.
|
27
|
|
Section 3.17
|
Investments, Guarantees, Loans, Advances and Other Liabilities
.
|
28
|
|
Section 3.18
|
Capital Expenditures
.
|
28
|
|
Section 3.19
|
Representations and Warranties of the Issuer
.
|
28
|
|
Section 3.20
|
Restricted Payments
.
|
32
|
|
Section 3.21
|
Notice of Events of Default; Other Notices
.
|
32
|
|
Section 3.22
|
Further Instruments and Acts
.
|
33
|
|
ARTICLE IV THE NOTES
|
|||
Section 4.01
|
The Notes
.
|
34
|
|
Section 4.02
|
Registration of Transfer and Exchange of Notes
.
|
34
|
|
Section 4.03
|
Mutilated, Destroyed, Lost or Stolen Notes
.
|
43
|
|
Section 4.04
|
Payment of Principal and Interest; Mandatory Prepayment
.
|
44
|
|
Section 4.05
|
Tax Treatment
.
|
45
|
|
Section 4.06
|
[Reserved]
.
|
46
|
|
Section 4.07
|
Substitute Collateral
.
|
46
|
|
Section 4.08
|
[Reserved]
.
|
47
|
|
Section 4.09
|
Repayment of Moneys Held by Paying Agent
.
|
47
|
|
ARTICLE V REMEDIES
|
|||
Section 5.01
|
Events of Default
.
|
47
|
|
Section 5.02
|
Acceleration of Maturity; Rescission and Annulment
.
|
49
|
|
Section 5.03
|
Collection of Indebtedness and Suits for Enforcement by Indenture Trustee
.
|
50
|
|
Section 5.04
|
Remedies; Priorities
.
|
53
|
|
Section 5.05
|
Optional Preservation of the Indenture Collateral
.
|
54
|
|
Section 5.06
|
Limitation of Suits
.
|
55
|
|
Section 5.07
|
Unconditional Rights of Holders To Receive Principal and Interest.
|
56
|
|
Section 5.08
|
Restoration of Rights and Remedies
.
|
56
|
|
Section 5.09
|
Rights and Remedies Cumulative
.
|
56
|
|
Section 5.10
|
Delay or Omission Not a Waiver
.
|
56
|
|
Section 5.11
|
Control by Holders
.
|
57
|
|
Section 5.12
|
Waiver of Past Defaults
.
|
58
|
|
Section 5.13
|
Undertaking for Costs
.
|
58
|
|
Section 5.14
|
Waiver of Stay or Extension Laws
.
|
59
|
|
Section 5.15
|
Sale of Indenture Collateral
.
|
59
|
|
Section 5.16
|
Action on Notes
.
|
61
|
|
Section 5.17
|
Performance and Enforcement of Certain Obligations
.
|
61
|
|
ARTICLE VI THE INDENTURE TRUSTEE
|
|||
Section 6.01
|
Duties of Indenture Trustee
.
|
61
|
|
Section 6.02
|
Rights of Indenture Trustee
.
|
63
|
|
Section 6.03
|
Individual Rights of Indenture Trustee
.
|
65
|
|
Section 6.04
|
Indenture Trustee’s Disclaimer
.
|
65
|
|
Section 6.05
|
Notice of Event of Default
.
|
65
|
|
Section 6.06
|
Rating Agency Requests
.
|
66
|
|
Section 6.07
|
Compensation and Indemnity
.
|
66
|
|
Section 6.08
|
Replacement of Indenture Trustee
.
|
67
|
|
Section 6.09
|
Successor Indenture Trustee by Merger
.
|
68
|
|
Section 6.10
|
Appointment of Co‑Indenture Trustee or Separate Indenture Trustee
.
|
69
|
|
Section 6.11
|
Eligibility; Disqualification
.
|
71
|
|
Section 6.12
|
Representations, Warranties and Covenants of Indenture Trustee
.
|
71
|
|
Section 6.13
|
Directions to Indenture Trustee
.
|
73
|
|
Section 6.14
|
Conflicts
.
|
73
|
|
ARTICLE VII HOLDERS’ LISTS AND REPORTS
|
|||
Section 7.01
|
Issuer To Furnish Indenture Trustee Names and Addresses of Holders
.
|
74
|
|
Section 7.02
|
Preservation of Information; Communications to Holders
.
|
74
|
|
Section 7.03
|
Fiscal Year
.
|
74
|
|
ARTICLE VIII ISSUER ACCOUNTS, DISBURSEMENTS AND RELEASES
|
|||
Section 8.01
|
Collection of Money
.
|
75
|
|
Section 8.02
|
Issuer Accounts; Disbursements
.
|
75
|
|
ARTICLE IX SUPPLEMENTAL INDENTURES
|
|||
Section 9.01
|
Supplemental Indentures Without Consent of Holders
.
|
78
|
|
Section 9.02
|
Supplemental Indentures With Consent of Holders
.
|
80
|
|
Section 9.03
|
Execution of Supplemental Indentures
.
|
82
|
|
Section 9.04
|
Effect of Supplemental Indenture
.
|
82
|
|
Section 9.05
|
Reference in Notes to Supplemental Indentures
.
|
82
|
|
Section 9.06
|
Amendment of this Indenture Generally
.
|
82
|
|
ARTICLE X MISCELLANEOUS
|
|||
Section 10.01
|
Compliance Certificates and Opinions, etc
.
|
83
|
|
Section 10.02
|
Form of Documents Delivered to Indenture Trustee
.
|
84
|
|
Section 10.03
|
Acts of Holders
.
|
85
|
|
Section 10.04
|
Notices, etc., to Indenture Trustee and Others
.
|
85
|
|
Section 10.05
|
Notices to Holders; Waiver
.
|
86
|
|
Section 10.06
|
Effect of Headings; TIA
.
|
87
|
|
Section 10.07
|
Successors and Assigns
.
|
87
|
|
Section 10.08
|
Severability
.
|
87
|
|
Section 10.09
|
Benefits of Indenture
.
|
87
|
|
Section 10.10
|
Legal Holidays
.
|
88
|
|
Section 10.11
|
GOVERNING LAW
.
|
88
|
|
Section 10.12
|
Counterparts
.
|
88
|
|
Section 10.13
|
Issuer Obligation
.
|
89
|
|
Section 10.14
|
No Petition
.
|
89
|
|
Section 10.15
|
Inspection; Confidentiality
.
|
90
|
|
Section 10.16
|
Force Majeure; USA PATRIOT Act
.
|
90
|
|
Section 10.17
|
Survival of Representations and Warranties; No Waiver
.
|
90
|
|
|
NORTHWEST FLORIDA TIMBER FINANCE, LLC, a Delaware limited liability company
|
||
|
|
|
|
|
By:
|
/s/ Marek Bakun
|
|
|
|
Name:
|
Marek Bakun
|
|
|
Title:
|
Authorized Person
|
|
WILMINGTON TRUST, NATIONAL ASSOCIATION, not in its individual capacity but solely as the Indenture Trustee
|
||
|
|
|
|
|
By:
|
/s/ Timothy P. Mowdy
|
|
|
|
Name:
|
Timothy P. Mowdy
|
|
|
Title:
|
Administrative Vice President
|
REGISTERED
|
|
|
|
$
|
No. A‑1‑
|
|
|
|
[ ], 2014
|
|
NORTHWEST FLORIDA TIMBER FINANCE, LLC, a Delaware limited liability company
|
||
|
|
|
|
|
By:
|
|
|
|
|
Name:
|
|
|
|
Title:
|
|
|
WILMINGTON TRUST, NATIONAL ASSOCIATION, not in its individual capacity but solely as the Indenture Trustee
|
||
|
|
|
|
|
By:
|
|
|
|
|
Authorized Signatory
|
Date of Exchange
|
|
Amount of
decrease in Principal Amount of this Global Note |
|
Amount of
increase in Principal Amount of this Global Note |
|
Principal Amount of this Global Note following such decrease (or
increase) |
|
Signature of
Responsible Officer of Note Registrar |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
This should be included only if the Note is issued in global form.
|
Dated:
|
|
|
|
(2
|
)
|
|
|
||||
|
Signature Guaranteed:
|
||||
|
|
|
|
|
(2)
|
NOTE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any change whatsoever.
|
Re:
|
Northwest Florida Timber Finance, LLC Senior Secured Notes due 2029
|
|
|
Transferee
|
Holder’s mailing address:
|
Name:
|
Address:
|
|
Very truly yours,
|
||
|
|
||
|
Print Name of Transferee
|
||
|
|
|
|
|
By:
|
|
|
|
|
Authorized Officer
|
1.
|
It owns and/or invests on a discretionary basis eligible securities (excluding affiliate’s securities, bank deposit notes and CD’s, loan participations,
repurchase agreements, securities owned but subject to a repurchase agreement and currency, interest rate and commodity swaps), as described below:
|
2.
|
The dollar amount set forth above is:
|
a.
|
greater than $100 million and the undersigned is one of the following entities:
|
(1)
o
|
an insurance company as defined in Section 2(13) of the Act
*
; or
|
(2)
o
|
an investment company registered under the Investment Company Act or any business development company as defined in Section 2(a)(48) of the Investment Company Act of 1940 or as defined in Section 202(a)(22) of the Investment Advisers Act of 1940; or
|
(3)
o
|
a Small Business Investment Company licensed by the U.S. Small Business Administration under Section 301(c) or (d) of the Small Business Investment Act of 1958; or
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(4)
o
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a plan (i) established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political
subdivisions, the laws of which permit the purchase of securities of this type, for the benefit of its employees and (ii) the governing investment guidelines of which permit the purchase of securities of this type; or
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(5)
o
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a corporation (other than a U.S. bank, savings and loan association or equivalent foreign institution), partnership, Massachusetts or similar statutory or business trust, or an organization described in Section 501 (c)(3) of the Internal Revenue Code; or
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*
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A purchase by an insurance company for one or more of its separate accounts, as defined by section 2(a)(37) of the Investment COmpany Act of 1940, which are neither registered nor required to be registered thereunder, shall be deemed to be a purchase for the account of such insurance company.
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(6)
o
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a U.S. bank, savings and loan association or equivalent foreign institution, which has an audited net worth of at least $25 million as demonstrated in its latest annual financial statements as of a date not more than 16 months preceding the date of sale in the case of a U.S. institution or 18 months in the case of a foreign institution; or
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(7)
o
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an investment adviser registered under the Investment Advisers Act of 1940; or
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b.
o
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greater than $10 million, and the undersigned is a broker‑dealer registered with the SEC; or
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c.
o
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less than $10 million, and the undersigned is a broker‑dealer registered with the SEC and will only purchase Rule 144A securities in
riskless principal transactions (as defined in Rule 144A); or
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d.
o
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less than $100 million, and the undersigned is an investment company registered under the Investment Company Act of 1940, which, together with one or more registered investment companies having the same or an affiliated investment adviser, owns at least $100 million of eligible securities; or
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e.
o
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less than $100 million, and the undersigned is an entity, all the equity owners of which are qualified institutional buyers.
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cc:
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The St. Joe Company
133 WaterSound Parkway WaterSound, Florida 32413 Attention: General Counsel and Chief Financial Officer |
Re:
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Payment of Issuer Expenses
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Payment Recipient
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Wire Information of Payment Recipient
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Amount
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Aggregate Amount
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$
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1
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Expense Reserve Instruction is required to be sent at least (i) 3 Business Days prior to a Payment Date if delivered for a payment to be made on a Payment Date or (ii) 5 Business Days prior to the applicable date of payment if delivered for a payment to be made between two successive Payment Dates.
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2
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Insert for Expense Reserve Instructions delivered for a payment to be made on a Payment Date.
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3
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Insert for Expense Reserve Instructions delivered for a payment to be made between two successive Payment Dates.
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NORTHWEST FLORIDA TIMBER FINANCE, LLC, a Delaware limited liability company
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||
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By:
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Name:
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Title:
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1.
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I have reviewed this quarterly report on Form 10-Q for the period ended
June 30, 2014
of The St. Joe Company;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/ Park Brady
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Park Brady
Chief Executive Officer
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1.
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I have reviewed this quarterly report on Form 10-Q for the period ended
June 30, 2014
of The St. Joe Company;
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2.
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Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3.
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Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4.
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The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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(a)
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Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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(b)
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Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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(c)
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Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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(d)
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Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
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5.
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The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
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(a)
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All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
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(b)
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Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
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/s/ Marek Bakun
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Marek Bakun
Chief Financial Officer
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/s/ Park Brady
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Park Brady
Chief Executive Officer
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/s/ Marek Bakun
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Marek Bakun
Chief Financial Officer
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