TEJON RANCH, Calif.--(BUSINESS WIRE)--May 12, 2014--
Tejon Ranch Co. (NYSE:TRC) today released the results of operations for
the three months ended March 31, 2014, with the Company showing net
income attributable to common stockholders of $1,113,000, or $0.05 per
common share, an increase of $498,000 when compared to net income
attributable to common stockholders of $615,000, or $0.03 per common
share, for the same period in 2013. Revenue from operations for the
three months ended March 31, 2014 was $7,145,000, compared to $9,760,000
of revenue for the same period during 2013. All per share references in
this release are presented on a fully diluted basis.
Results of Operations for the Quarter Ended March 31, 2014:
The improvement in net income attributable to common stockholders is
primarily due to $3,002,000 in net income received from sales of water
during the quarter, and to reduced expenses within our farming and
corporate general and administrative operations. The overall reduction
in revenue from operations during the first quarter is the result of
lower farming and mineral resources revenue.
The decline in farming revenue of $2,355,000 is due to a 67% decrease in
the number of almonds sold during the first quarter of 2014, stemming
from a lower carry forward of 2013 crop inventory. This decline in the
volume of almond sales was partially offset, however, by a 13% increase
in almond prices. Farming expenses also declined during the quarter due
to lower cost of sales for almonds. Compared to the same time period in
2013, mineral resource revenues declined $602,000 during the first
quarter of 2014. The decline is due to a decrease of $514,000 in oil
royalty revenues and $256,000 in oil leasehold payments. The decrease in
oil royalties is tied to a decline in production of approximately 21%
during the quarter, resulting from the timing of completion of the
expansion of new lessee production facilities. Leasehold payments
declined due to Sojitz Energy beginning a drill program in late 2013,
which eliminated their obligation for continued leasehold payments. The
Company did see positive improvement from our rock and aggregate
operations as well as the National Cement lease, with an increase in
royalties of $168,000 driven by improved construction activity in our
region. Commercial/industrial revenue also increased $220,000, due
primarily to an increase in development fees related to the construction
of the Outlets at Tejon.
Corporate general and administrative costs decreased $407,000 during the
first quarter of 2014 compared to the same period of 2013. The
improvement in costs is spread over various expense categories with the
largest improvement coming from a decrease in stock compensation expense.
2014 Outlook and Information:
Management believes that the capital structure of the Company continues
to provide a solid foundation for continued investment in our projects
to set the stage for the future growth of the Company. On March 31,
2014, total capital was approximately $326,000,000, with debt accounting
for less than two percent of total capital. As of March 31, 2014, we
also had cash and securities totaling approximately $57,000,000 and
$30,000,000 of availability on lines of credit to meet any short-term
funding needs.
During 2014, the Company will continue to aggressively pursue
development and leasing and investment within the Tejon Ranch Commerce
Center and in our joint ventures, including the completion of
construction and opening of the Outlets at Tejon in August 2014. The
Company is continuing to invest in its residential projects to
successfully complete the entitlements for the Centennial and Grapevine
projects and begin pre-development investment for Tejon Mountain Village.
The Company believes the variability of its quarterly and annual
operating results will continue during 2014 due to its farming and real
estate activities. Prices received by the Company for many of its
products are dependent upon the prevailing market conditions and
commodity prices. Many of the Company’s projects, especially in real
estate, require a lengthy process to complete the entitlement and
development phases before revenue can begin to be recognized. The timing
of projects and sales of both real estate inventory and non-strategic
assets can vary from year-to-year; therefore, it is difficult for the
Company to accurately predict quarterly and annual revenues and results
of operations.
Tejon Ranch Co. is a diversified real estate development and
agribusiness company, whose principal asset is its 270,000-acre land
holding located approximately 60 miles north of Los Angeles and 30 miles
south of Bakersfield.
More information about Tejon Ranch Co. can be found online at http://www.tejonranch.com.
Forward-Looking Statements:
The statements contained herein, which are not historical facts, are
forward-looking statements based on economic forecasts, strategic plans
and other factors, which by their nature involve risk and uncertainties.
In particular, among the factors that could cause actual results to
differ materially are the following: business conditions and the general
economy, future commodity prices and yields, market forces, the ability
to obtain various governmental entitlements and permits, interest rates
and other risks inherent in real estate and agriculture businesses. For
further information on factors that could affect the Company, the reader
should refer to the Company’s filings with the Securities and Exchange
Commission.
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TEJON RANCH CO.
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
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FIRST QUARTER ENDED MARCH 31
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(In thousands, except earnings per share)
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(Unaudited)
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2014
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2013
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Revenues
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Real estate - commercial/industrial
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$
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2,942
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$
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2,722
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Real estate - resort/residential
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359
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237
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Mineral resources
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2,264
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2,866
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Farming
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1,580
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3,935
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Revenue from operations
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7,145
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9,760
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Operating income (loss)
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Real estate - commercial/industrial
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(369
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)
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(391
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)
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Real estate - resort/residential
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(296
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)
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(72
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)
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Mineral resources
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2,189
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2,706
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Farming
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(93
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)
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1,678
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Income from operating segments
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1,431
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3,921
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Income(expense) from water sales
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3,002
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-
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Interest income
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198
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275
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Other income
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27
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3
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Corporate expense
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(3,424
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)
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(3,831
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)
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Operating income from operations before equity in losses of
unconsolidated joint ventures
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1,234
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368
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Equity in earnings of unconsolidated joint ventures
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438
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409
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Operating income before income tax expense
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1,672
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777
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Income tax expense
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541
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147
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Net income
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$
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1,131
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$
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630
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Net loss attributable to non-controlling interest
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18
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15
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Net income attributable to common stockholders
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$
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1,113
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$
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615
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Net income per share, basic
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$
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0.05
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$
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0.03
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Net income per share, diluted
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$
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0.05
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$
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0.03
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Weighted average number of shares outstanding:
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Common stock
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20,568,270
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20,100,115
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Common stock equivalents
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38,218
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15,327
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Diluted shares outstanding
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20,606,488
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20,115,442
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Source: Tejon Ranch Co.
Tejon Ranch Co.
Allen Lyda, 661-248-3000
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