TEJON RANCH, Calif.--(BUSINESS WIRE)--May. 1, 2013--
Tejon Ranch Co. (NYSE:TRC) today released the results of operations for
the three months ended March 31, 2013, with the Company showing net
income attributable to common stockholders of $615,000, or $0.03 per
common share, compared to net income attributable to common stockholders
of $275,000, or $0.01 per common share, for the same period in 2012.
Revenue from operations for the three months ended March 31, 2013 was
$9,760,000, compared to $9,579,000 of revenue for the same period during
2012. All per share references in this release are presented on a fully
diluted basis.
Results of Operations for the Quarter Ended March 31, 2013:
The improvement in net income attributable to common stockholders, and
revenue from operations during the first three months of 2013, when
compared to the same period of 2012, is driven by improved
commercial/industrial and farming revenues that are partially offset by
lower mineral resource revenues. Also contributing to the improvement in
net income are lower resort/residential expenses and an increase in
equity in earnings of unconsolidated joint ventures.
Commercial/industrial revenue increased $574,000 due to an improvement
in hunting and grazing lease revenues as well as an increase in
percentage rent from our power plant lease. The improvement in farming
revenue of $451,000 is due to a $1,160,000 increase in almond revenues
driven by higher prices. This improvement in almond revenue was
partially offset by a comparative decline in pistachio revenue due to
lower sales and a pricing bonus received during the first quarter of
2012. Resort/residential expense declined $709,000 during the first
quarter of 2013, as compared to the same period of 2012, 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. Compared to the same time period in 2012, Mineral
Resource revenues declined $1,040,000 during the first quarter of 2013.
The decline is due to both a decrease in oil production and pricing
during the first quarter 2013, as well as a $545,000 payment received
during the first quarter of 2012 related to new oil wells that came on
line.
Our share of earnings from our joint ventures improved $768,000 due to
both higher fuel and non-fuel margins at our TA/Petro joint
venture--largely due to increased gasoline sales, and improved income
from our Rockefeller joint venture resulting from the receipt of a full
quarter of rental income from the Dollar General lease as compared to
the partial quarter’s rent received during the first three months of
2012. 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.
2013 Outlook and Information:
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 March 31, 2013, total
capital was approximately $310,000,000, with debt accounting for less
than one percent of total capital. As of March 31, 2013, we also had
cash and securities totaling approximately $70,200,000 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. 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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FIRST QUARTER ENDED MARCH 31
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(In thousands, except earnings per share)
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(Unaudited)
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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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2,722
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$
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2,148
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Real estate - resort/residential
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237
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41
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Mineral resources
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2,866
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3,906
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Farming
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3,935
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3,484
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Revenue from operations
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9,760
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9,579
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Operating income (loss)
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Real estate - commercial/industrial
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(391
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(877
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Real estate - resort/residential
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(72
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(977
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Mineral resources
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2,706
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3,789
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Farming
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1,678
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1,223
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Income from operating segments
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3,921
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3,158
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Interest income
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275
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318
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Other income
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3
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22
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Corporate expense
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(3,831
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(3,134
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Operating income from operations before equity in losses of
unconsolidated joint ventures
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368
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364
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Equity in earnings (losses) of unconsolidated joint ventures
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409
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(359
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)
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Operating income before income tax expense (benefit)
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777
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5
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Income tax expense (benefit)
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147
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(228
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Net income
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$
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630
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$
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233
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Net loss attributable to non-controlling interest
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15
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(42
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Net income attributable to common stockholders
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$
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615
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$
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275
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Net income per share, basic
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$
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0.03
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$
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0.01
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Net income per share, diluted
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$
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0.03
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$
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0.01
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Weighted average number of shares outstanding:
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Common stock
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20,100,115
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19,990,558
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Common stock equivalents
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15,327
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32,744
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Diluted shares outstanding
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20,115,442
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20,023,302
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Source: Tejon Ranch Co.
Tejon Ranch Co.
Allen Lyda
661-248-3000
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