TEJON RANCH, Calif.--(BUSINESS WIRE)--May 11, 2015--
Tejon Ranch Co. (NYSE:TRC) today released the results of operations for
the three months ended March 31, 2015, with the Company showing net
income attributable to common stockholders of $1,617,000, or $0.08 per
common share. That’s a $504,000 increase compared to net income
attributable to common stockholders of $1,113,000, or $0.05 per common
share, recorded for the same period in 2014. Revenue from operations for
the three months ended March 31, 2015 was $16,633,000, an increase of
$2,098,000 when compared to $14,535,000 of revenue for the same period
during 2014. All per share references in this release are presented on a
fully diluted basis.
Results of Operations for the Quarter Ended March 31, 2015:
The improvement in net income attributable to common stockholders is
primarily tied to the following factors: higher water sales revenues,
improved farming income, and increases in commercial operating income.
The Company also saw continued growth in equity in earnings from the
TA/Petro joint venture as net operating income from both fuel and
non-fuel operations continued to improve as a result of higher customer
traffic at the Tejon Ranch Commerce Center and adjacent Outlets at
Tejon. Partially offsetting these year over year improvements were
decreases in our operating margins within mineral resources from 50% in
2014 to 40% when compared to the same period in 2014 due to higher costs
of sales for water sold during the quarter.
Farming revenues improved $1,225,000 compared to the same period in 2014
largely due to a $1,439,000 increase in almond sales as the prior year
almond crop inventory carry forward was larger than the inventory carry
forward into 2014. This improvement was partially offset by a decline in
hay sales of $169,000, during the quarter compared to the same period in
2014. The increase in farming expense is also driven by the cost of
sales associated with the increase in almonds sold during the quarter.
Mineral resource revenues, when compared to the same period in 2014,
increased $546,000. The improvement was largely due to an increase of
$1,603,000 in water sales due to a higher volume of water being sold.
This increase was partially offset by a decline of $970,000 in oil
royalty revenue resulting from lower prices, which also led to lower
production. The average price per barrel of oil received in the first
quarter of 2015 is approximately 59% less than the same period in 2014.
We expect that lower oil prices will continue to negatively impact us
throughout 2015. An increase in mineral resources expense is mainly tied
to higher cost of sales for water as the volume of water sold increased.
The Company also saw an increase during the quarter in
commercial/industrial revenue. This increase is due to the growth of
property management and development fees tied to the increase in leasing
activities at the Tejon Ranch Commerce Center, when compared to the same
period in 2014. Three tenants took possession of leased property during
the quarter, with a new Starbucks opening in March 2015. The other two
tenants are scheduled to open for business during the second quarter of
2015. The first quarter also showed an increase in corporate general and
administrative costs, as compared to 2014, primarily driven by higher
stock compensation due to the timing of the granting of stock in 2014.
2015 Outlook and Information:
Tejon Ranch Co. manages its cash and marketable securities along with
cash flow for the pursuit of land entitlement, development, farming and
conservation. As of March 31, 2015, the Company had cash and securities
totaling $45,600,000 and $26,340,000 of availability on a line of credit
to meet any short-term funding needs.
The Company believes the variability of its quarterly and annual
operating results will continue during 2015 due to its farming and real
estate activities and to the majority of projected water sales for 2015
being completed during the first quarter. Many of the 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.
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
FIRST QUARTER ENDED MARCH 31
(In thousands,
except earnings per share)
(Unaudited)
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2015
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2014
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Revenues
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Real estate - commercial/industrial
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$
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3,362
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$
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2,942
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Real estate - resort/residential
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-
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93
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Mineral resources
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10,200
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9,654
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Farming
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3,071
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1,846
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Total revenue
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16,633
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14,535
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Costs and Expenses:
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Real estate - commercial/industrial
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3,202
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3,311
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Real estate - resort/residential
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751
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464
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Mineral resources
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5,694
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4,801
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Farming
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2,343
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1,864
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Corporate expenses
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3,523
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3,086
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Total expenses
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15,513
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13,526
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Operating income
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1,120
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1,009
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Other Income:
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Investment income
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155
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198
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Other income
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38
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27
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Total other income
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193
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225
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Income from operations before equity in earnings of unconsolidated
joint ventures
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1,313
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1,234
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Equity in earnings of unconsolidated joint ventures, net
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1,150
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438
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Income before income tax expense
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2,463
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1,672
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Income tax expense
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862
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541
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Net income
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$
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1,601
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$
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1,131
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Net (loss) income attributable to non-controlling interest
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(16
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18
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Net income attributable to common stockholders
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$
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1,617
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$
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1,113
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Net income per share attributable to common stockholders, basic
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$
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0.08
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$
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0.05
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Net income per share attributable to common stockholders, diluted
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$
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0.08
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$
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0.05
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Weighted average number of shares outstanding:
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Common stock
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20,645,846
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20,568,270
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Common stock equivalents
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60,737
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38,218
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Diluted shares outstanding
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20,706,583
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20,606,488
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Source: Tejon Ranch Co.
Tejon Ranch Co.
Allen Lyda, 661-248-3000
Executive Vice
President & Chief Financial Officer
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