Operator: Good day ladies and gentlemen and welcome to the St. Joe Earnings Conference Call for the period ending December 31, 2012. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session and instructions will be given at that time. As a reminder, this conference call is being recorded.
I would now like to hand the conference over to Mr. Tom Hoyer, Chief Financial Officer at St. Joe.
Thomas Hoyer - CFO: Thank you. Hello everyone and welcome to the St. Joe earnings call for the period ending December 31, 2012. My name is Tom Hoyer. I am the Chief Financial Officer at St. Joe and I'll be the person representation the Company on the call today.
Some of the information we will discuss on this call is forward-looking. This information includes statements that are preceded by or include the words believe, expect, intend, anticipate, will, may, could, or similar expressions. These forward-looking statements may be affected by the risks and certainties in our business and actual results may differ materially from the forward-looking statements.
Everything we say here today is qualified in its entirety by cautionary statements and risk factors set forth in this afternoon's press release and our SEC filings, which documents are publicly available. Our statements are as of today, February 28, 2013. We have no obligation to update the forward-looking statements that we may make.
Let's move on to the fourth quarter and full year results. I'll make some brief comments and then I'll open it up for your questions. We recorded revenue of $22.6 million in the fourth quarter of this year compared to $19.8 million in the fourth quarter of last year, which is a 14% increase. Most of that increase came from our forestry operations where sales volume was higher due to strong demand. The year-over-year ongoing results are even better. But in order to give you a reasonable comparison, I have to make some adjustments for unusual transactions in both 2012 and 2011.
Let's start with the reported numbers. We reported $139.4 million of revenue for 2012 compared to $145.3 million in 2011. However, as I've mentioned in our previous calls, we had a couple of unusual rural land sales in 2012 which totaled $18.3 million in total revenue, if I exclude those land sales, 2012 pro forma revenue is $121.1 million. In 2011, we sold a timber deed that added $54.5 million in revenue in the first quarter of that year. If I exclude the timber deed revenue, 2011 pro forma revenue is $90.8 million.
After making these adjustments, the pro forma comparison becomes a $121.1 million of revenue in 2012, compared to $90.8 million of revenue in 2011, which is a 33% increase. All of our businesses contributed to the increase in revenue.
Beginning with residential, we sold 19% more lots year-over-year and the associated revenue grew 81%. Revenue increased at a faster pace than unit sales, because the increase in demand has driven higher lot prices in some of our communities, particularly in our vacation communities.