TEJON RANCH, Calif.--(BUSINESS WIRE)--Aug. 5, 2013--
Tejon Ranch Co. (NYSE:TRC) today released the results of operations for
the six months ended June 30, 2013, with the Company showing net income
attributable to common stockholders of $2,699,000, or $0.13 per common
share, compared to net income attributable to common stockholders of
$393,000, or $0.02 per common share, for the same period in 2012.
Revenue from operations for the six months ended June 30, 2013 was
$17,235,000, compared to $17,428,000 of revenue for the same period
during 2012. All per share references in this release are presented on a
fully diluted basis.
For the second quarter ended June 30, 2013, the Company had net income
attributable to common stockholders of $2,084,000, or $0.10 per common
share, compared to net income attributable to commons stockholders of
$118,000, or $0.01 per common share, for the second quarter of 2012.
Revenue from operations for the second quarter of 2013 was $7,475,000
compared to $7,849,000 of revenue during the same period of 2012.
Results of Operations for the First Six Months of 2013:
The improvement in net income attributable to common stockholders during
the first six months of 2013, when compared to the same period in 2012,
is primarily the result of higher farming net operating profits, an
increase in equity in earnings from our joint ventures, and a decline in
stock compensation expense, which were partially offset by a decline in
oil royalty revenues and higher tax expense. Revenue declined $193,000
during the first six months of 2013, as compared to the same period in
2012, due to a decrease in mineral resources revenues, which were
partially offset by improved revenues from the other operating segments.
Commercial/industrial revenue improved $776,000 in the first six months
of 2013 compared to the same period in 2012, due to a $1,036,000
increase in hunting and grazing revenues, as our hunting program was
closed during the first half of 2012. Additionally, percentage rent from
our Calpine lease increased $459,000 due to increases in power prices.
These improvements were somewhat offset by a $648,000 decrease in land
sale revenue recognized in 2012 related to a deferred gain from the sale
of land to Caterpillar that occurred in 2011. The improvement in farming
revenue of $849,000 during 2013 is due to increased almond revenues
resulting from increases in the price per pound of almonds.
Mineral resources revenues declined $2,154,000 during the first six
months of 2013 compared to 2012. The decrease is due to a 20% decline in
production due to maintenance on production wells and expansion of
production storage facilities, a 6% decrease in oil prices compared to
the same period in 2012, and to the receipt of $545,000 during the first
quarter of 2012 related to new wells that came on line.
Operating expenses declined $2,340,000 during the period largely due to
the reversal of previously recorded stock compensation expense related
to unvested awards of an executive that left the Company during the
first quarter and to awards that will not vest related to the retirement
of the Company’s CEO at the beginning of 2014, which was announced
during the quarter.
Our share of earnings from our joint ventures increased by $1,145,000
during the first six months of 2013 largely due to a $765,000 increase
in income from our TA/Petro joint venture as a result of improved
operating margins and increased gasoline sales.
Results of Operations for the Second Quarter of 2013:
Reduced mineral resource revenues due to the operational factors
described above drive the decline in revenue for the second quarter of
2013. Improved commercial/industrial and farming revenues helped to
partially offset the decline in oil revenues. The improvement in
commercial/industrial and farming revenues are described above. The
primary driver to improved net income for the quarter as compared to the
same period of 2012 is the reversal of previously recorded stock
compensation expense related to unvested awards that will now not vest
due to the announced retirement of the Company’s CEO.
2013 Outlook:
Management believes that the capital structure of the Company provides a
solid foundation for continued investment in our projects to set the
stage for the future growth of the Company. On June 30, 2013, total
capital was approximately $310,000,000, with debt accounting for less
than one percent of total capital. As of June 30, 2013, we also had cash
and securities totaling approximately $75,394,000 and $30,000,000 of
availability on lines of credit to meet any short-term funding needs.
During 2013, the Company will continue to aggressively pursue land
entitlement activities and investment within the Tejon Ranch Commerce
Center and in our joint ventures, including the planned development of
The Outlets at Tejon Ranch and entitlement activities within the
Grapevine Development Area. The Company believes the variability of its
quarterly and annual operating results will continue during 2013 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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SECOND QUARTER ENDED JUNE 30
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(In thousands, except earnings per share)
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(Unaudited)
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Three Months Ended
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Six Months
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June 30
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Ended June 30
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2013
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2012
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2013
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2012
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Revenues:
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Real estate - commercial/industrial
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$
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2,825
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$
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2,623
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$
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5,547
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$
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4,771
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Real estate - resort/residential
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234
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94
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471
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135
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Mineral resources
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2,765
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3,879
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5,631
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7,785
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Farming
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1,651
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1,253
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5,586
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4,737
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Total revenues
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7,475
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7,849
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17,235
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17,428
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Costs and Expenses:
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Real estate - commercial/industrial
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3,141
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2,913
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6,254
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5,938
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Real estate - resort/residential
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1,265
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1,137
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1,574
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2,155
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Mineral resources
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65
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40
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225
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157
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Farming
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1,179
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960
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3,436
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3,221
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Corporate expenses
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658
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3,713
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4,489
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6,847
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Total expenses
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6,308
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8,763
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15,978
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18,318
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Operating income (loss)
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1,167
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(914
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)
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1,257
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(890
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)
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Other income (expense)
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Investment income
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238
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317
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513
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635
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Interest expense
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-
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(33
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)
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-
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(35
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)
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Other income
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14
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11
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17
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35
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Total other income
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252
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295
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530
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|
635
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Income (loss) from operations before equity in earnings
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(loss) of unconsolidated joint ventures
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1,419
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(619
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)
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1,787
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(255
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)
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Equity in earnings of unconsolidated
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joint ventures, net
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1,270
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893
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1,679
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|
534
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Income before income tax expense (benefit)
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|
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2,689
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|
274
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3,466
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|
279
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Income tax expense (benefit)
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|
|
686
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164
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833
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(64
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)
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Net income
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2,003
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|
110
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2,633
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343
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Net loss attributable to non-controlling interest
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(81
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)
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(8
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)
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(66
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)
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(50
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)
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Net income attributable to common stockholders
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|
|
|
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2,084
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|
|
|
|
|
118
|
|
|
|
|
|
|
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2,699
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|
|
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|
|
393
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|
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Net income per share to common stockholders, basic
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$
|
0.10
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$
|
0.01
|
|
|
|
|
|
|
$
|
0.13
|
|
|
|
|
$
|
0.02
|
|
|
Net income per share to common stockholders, diluted
|
|
|
|
$
|
0.10
|
|
|
|
|
$
|
0.01
|
|
|
|
|
|
|
$
|
0.13
|
|
|
|
|
$
|
0.02
|
|
|
Weighted average number of shares outstanding:
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|
|
|
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|
|
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|
|
|
|
|
|
|
|
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Common stock
|
|
|
|
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20,136,188
|
|
|
|
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20,026,354
|
|
|
|
|
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20,118,152
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|
|
|
|
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20,008,358
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|
Common stock equivalents – stock options
|
|
|
|
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16,323
|
|
|
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61,278
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|
|
|
|
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17,039
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|
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75,372
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Diluted shares outstanding
|
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20,152,511
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|
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20,087,632
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|
|
|
|
|
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20,135,191
|
|
|
|
|
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20,083,730
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Source: Tejon Ranch Co.
Tejon Ranch Co.
Allen Lyda, 661-248-3000
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