TEJON RANCH, Calif.--(BUSINESS WIRE)--Mar. 8, 2013--
Tejon Ranch Co. (NYSE:TRC) today released the results of operations for
the year ended December 31, 2012, with the Company showing net income
attributable to common stockholders of $4,441,000, or $0.22 per common
share, compared to net income attributable to common stockholders of
$15,894,000, or $0.80 per common share, for the same period in 2011.
Revenue from operations for the year ended December 31, 2012 was
$47,089,000, compared to $63,098,000 of revenue for the same period
during 2011. The change between the two years is primarily due to the
one time sale of conservation easements in 2011 for $15,750,000. All per
share references in this release are presented on a fully diluted basis.
For the fourth quarter of 2012, the Company had net income attributable
to common stockholders of $27,000, or $0.00 per common share, compared
to net income attributable to common stockholders of $5,238,000, or
$0.26 per common share during the fourth quarter of 2011. Revenue from
operations for the fourth quarter of 2012 was $13,547,000 compared to
$19,815,000 of revenue during the same period of 2011.
“The Company’s core operational performance was comparable to last year
with the exception of the one time sale of conservation easements that
occurred in 2011. We continued to show steady revenue and earnings
growth from our commodity linked businesses of farming and mineral
resources,” said Robert A. Stine, President and CEO. “We are continuing
to push forward with our real estate projects and as the economy starts
to show signs of improvement we anticipate that we will also see
improvement in our projects and in the activities of our tenants. We
also believe our strong balance sheet will allow us to continue to grow
and support our current and future real estate activities.”
Results of Operations for the Year Ended December 31, 2012:
When compared to the same period of 2011, the decline in net income
attributable to common stockholders and revenue from operations during
the year ended December 31, 2012, is primarily due to the recognition of
$15,750,000 in income during the first quarter of 2011 that came from
the closing of conservation easement sales. On a comparison basis,
excluding the sale of conservation easements during the first quarter of
2011, total revenue from operations is comparable to 2011.
During the fourth quarter of 2012, the Company determined that due to
the growth in oil and mineral revenues, our increasing focus on these
resources, and the potential for future growth from these revenue
sources, we would, beginning with our year-end 2012 reporting, provide
revenue and cost information in a new segment called Mineral Resources.
Mineral Resource revenues of $14,012,000 during 2012 improved by
$1,806,000 when compared to 2011, due to higher oil revenues from new
production and to the recognition of a full year of oil exploration
lease payments.
Commercial/industrial revenue declined $3,805,000 during 2012 due to the
recognition of $4,340,000 in land sales revenue during 2011. On the
positive side, revenues from our power plant lease improved by $362,000
due to growth in percentage rent during 2012.
Farming revenues increased $1,541,000 during 2012 when compared to 2011.
The increase is largely due to improved pistachio revenues of $2,100,000
as a result of increased production and higher prices when compared to
2011, as well as the carry forward of 2011 pistachio crop inventory that
was then sold in 2012. Almond revenues also improved during 2012 due
primarily to higher prices. These revenue improvements were partially
offset by an $828,000 decrease in grape revenue due to a decline in
production resulting from the redevelopment of old vineyards, which
temporarily reduced the number of acres in production.
Equity in earnings of unconsolidated joint ventures during the period
increased $1,619,000 when compared to the same period of 2011, due to:
improved operating margins at our Petro/TA joint venture as a result of
higher gasoline sales and fuel margins, and to improved revenues in our
Rockefeller joint venture coming from the full lease up of a warehouse
facility that Dollar General took occupancy of in late 2011. As our
joint ventures continue to mature the revenues and activity surrounding
the joint ventures will become a growing part of our
commercial/industrial activity.
Contributing to the decline in net income during 2012 was an overall
increase in operating expense of $1,737,000. This increase in expense is
due to higher farming cost of sales driven by pistachio and almond
sales, higher compensation cost due to the timing of hiring employees in
2011 and early 2012, increased defined benefit plan costs, and the
recognition of additional stock compensation costs related to the
vesting of milestone performance grants.
Results of Operations for the Fourth Quarter of 2012:
The decline in revenue during the fourth quarter of 2012, when compared
to the same period in 2011, is due primarily to the recognition of
$4,340,000 in revenue related to a land sale that occurred in the fourth
quarter of 2011, a decrease of $1,706,000 in oil royalties due to a
decline in both price and production during the quarter, and a decline
in farming revenues. Farming revenues are lower during the fourth
quarter of 2012 due to a drop in the number of almond pounds sold in the
quarter and to lower grape revenues as described above.
The decrease in net income attributable to common stockholders during
the fourth quarter of 2012 is driven by the decline in revenues just
described, an increase in farming cost of sales, and to an increase in
income tax expense during the quarter to account for year-to-date
adjustments. This decline in revenue is partially offset by an $112,000
reduction in expenses during the quarter due primarily to lower
commercial/industrial expense and lower corporate expenses.
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 December 31, 2012, total
capital was approximately $310,000,000, with debt accounting for less
than one percent of total capital. As of December 31, 2012, we also had
cash and securities totaling approximately $72,000,000 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. 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, which could affect the Company, the
reader should refer to the Company’s filings with the Securities and
Exchange Commission.
|
TEJON RANCH CO.
|
|
YEAR-END EARNINGS RELEASE 2012
|
|
(UNAUDITED, IN THOUSANDS, EXCEPT SHARE AND PER SHARE DATA)
|
|
|
|
|
|
|
|
THREE MONTHS ENDED
|
|
|
|
|
YEAR ENDED
|
|
|
|
|
|
DECEMBER 31
|
|
|
|
|
DECEMBER 31
|
|
|
|
|
|
2012
|
|
|
|
2011
|
|
|
|
|
2012
|
|
|
|
2011
|
|
REVENUES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate - Commercial/Industrial
|
|
|
|
$
|
2,432
|
|
|
|
|
$
|
6,415
|
|
|
|
|
|
$
|
9,941
|
|
|
|
|
$
|
13,746
|
|
|
Real Estate - Resort/Residential
|
|
|
|
|
316
|
|
|
|
|
|
168
|
|
|
|
|
|
|
583
|
|
|
|
|
|
16,134
|
|
|
Mineral Resources
|
|
|
|
|
2,780
|
|
|
|
|
|
4,385
|
|
|
|
|
|
|
14,012
|
|
|
|
|
|
12,206
|
|
|
Farming
|
|
|
|
|
8,019
|
|
|
|
|
|
8,847
|
|
|
|
|
|
|
22,553
|
|
|
|
|
|
21,012
|
|
|
Revenues from Operations
|
|
|
|
|
13,547
|
|
|
|
|
|
19,815
|
|
|
|
|
|
|
47,089
|
|
|
|
|
|
63,098
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING PROFITS (LOSSES):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate - Commercial/Industrial
|
|
|
|
|
(845
|
)
|
|
|
|
|
2,505
|
|
|
|
|
|
|
(2,330
|
)
|
|
|
|
|
525
|
|
|
Real Estate - Resort/Residential
|
|
|
|
|
(860
|
)
|
|
|
|
|
(896
|
)
|
|
|
|
|
|
(4,178
|
)
|
|
|
|
|
12,192
|
|
|
Mineral Resources
|
|
|
|
|
2,636
|
|
|
|
|
|
4,300
|
|
|
|
|
|
|
13,678
|
|
|
|
|
|
11,997
|
|
|
Farming
|
|
|
|
|
2,920
|
|
|
|
|
|
4,287
|
|
|
|
|
|
|
9,230
|
|
|
|
|
|
8,437
|
|
|
Income from Operating Segments
|
|
|
|
|
3,851
|
|
|
|
|
|
10,196
|
|
|
|
|
|
|
16,400
|
|
|
|
|
|
33,151
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment Income
|
|
|
|
|
294
|
|
|
|
|
|
333
|
|
|
|
|
|
|
1,242
|
|
|
|
|
|
1,260
|
|
|
Other Income
|
|
|
|
|
63
|
|
|
|
|
|
21
|
|
|
|
|
|
|
113
|
|
|
|
|
|
98
|
|
|
Corporate Expenses
|
|
|
|
|
(3,835
|
)
|
|
|
|
|
(4,024
|
)
|
|
|
|
|
|
(13,272
|
)
|
|
|
|
|
(12,277
|
)
|
|
Interest Expense
|
|
|
|
|
(10
|
)
|
|
|
|
|
-
|
|
|
|
|
|
|
(12
|
)
|
|
|
|
|
-
|
|
|
Income from Operations before Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in Earnings of Unconsolidated Joint Ventures
|
|
|
|
|
363
|
|
|
|
|
|
6,526
|
|
|
|
|
|
|
4,471
|
|
|
|
|
|
22,232
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in Earnings of Unconsolidated Joint Ventures
|
|
|
|
|
887
|
|
|
|
|
|
333
|
|
|
|
|
|
|
2,535
|
|
|
|
|
|
916
|
|
|
Income from Operations before Income Tax
|
|
|
|
|
1,250
|
|
|
|
|
|
6,859
|
|
|
|
|
|
|
7,006
|
|
|
|
|
|
23,148
|
|
|
Income Tax Expense
|
|
|
|
|
1,262
|
|
|
|
|
|
1,657
|
|
|
|
|
|
|
2,723
|
|
|
|
|
|
7,367
|
|
|
Net loss attributable to noncontrolling interest
|
|
|
|
|
(39
|
)
|
|
|
|
|
(36
|
)
|
|
|
|
|
|
(158
|
)
|
|
|
|
|
(113
|
)
|
|
Net Income Attributable to Common Stockholders
|
|
|
|
$
|
27
|
|
|
|
|
$
|
5,238
|
|
|
|
|
|
$
|
4,441
|
|
|
|
|
$
|
15,894
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income Per Common Share, Basic
|
|
|
|
$
|
-
|
|
|
|
|
$
|
0.26
|
|
|
|
|
|
$
|
0.22
|
|
|
|
|
$
|
0.80
|
|
|
Net Income Per Common Share, Diluted
|
|
|
|
$
|
-
|
|
|
|
|
$
|
0.26
|
|
|
|
|
|
$
|
0.22
|
|
|
|
|
$
|
0.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Shares Outstanding, Basic
|
|
|
|
|
20,084,114
|
|
|
|
|
|
19,975,358
|
|
|
|
|
|
|
20,043,862
|
|
|
|
|
|
19,890,838
|
|
|
Average Shares Outstanding, Diluted
|
|
|
|
|
20,129,377
|
|
|
|
|
|
20,034,354
|
|
|
|
|
|
|
20,118,976
|
|
|
|
|
|
19,955,260
|
|
Source: Tejon Ranch Co.
Tejon Ranch Co.
Allen Lyda, 661-243-3000
View printer-friendly version