TRC Earnings
TEJON RANCH, Calif.--(BUSINESS WIRE)--Nov. 7, 2001--Tejon Ranch
Co. (NYSE:TRC), today announced net income of $290,000, or $0.02
per common share, diluted, during the third quarter of 2001
compared with net income of $29,000, or $0.00 per common share,
diluted, during the third quarter of 2000.
Total revenues for the third quarter of 2001 were $5,863,000
compared with $7,617,000 for the third quarter of 2000.
Net income for the third quarter of 2001 is comprised of income
from operations of $693,000, or $0.05 per common share, diluted,
and a loss from discontinued operations, net of applicable income
taxes, of $403,000, or $0.03 per common share, diluted.
This is compared with net income from operations of $438,000, or
$0.03 per common share, diluted, and a loss from discontinued
operations, net of applicable income taxes, of $409,000, or $0.03
per common share, diluted, for the third quarter of 2000.
Net income for the nine months ended Sept. 30, 2001, was $408,000,
or $0.03 per common share, diluted, compared with a net loss of
$757,000, or $0.06 per common share, diluted, for the nine months
ended Sept. 30, 2000. Total revenues for the first nine months
ended Sept. 30, 2001, were $11,547,000 compared with $11,644,000
for the nine months ended Sept. 30, 2000.
Net income for the nine months ended Sept. 30, 2001, is comprised
of income from operations of $105,000, or $0.01 per common share,
diluted, and income from discontinued operations, net of
applicable income taxes, of $303,000, or $0.02 per common share,
diluted.
This is compared with a loss from operations of $838,000, or $0.07
per common share, diluted, and income from discontinued
operations, net of applicable income taxes, of $81,000, or $0.01
per common share, diluted, for the same period in 2000.
The decline in revenues during the first nine months of 2001
compared with the same period of 2000 is due to lower farming
revenues and a slight decrease in real estate revenues. These
unfavorable variances were partially offset by an increase in
interest income. The decline in farming revenues is due primarily
to lower crop revenues and water sales to farming tenants.
A reduction in crop revenues of $1,464,000 is due to the timing of
the harvest of crops in 2001, lower overall production on almonds
harvested because of damage to trees and poor pollination due to
winter storms in early 2001, and to lower prices on almonds.
Partially offsetting this reduction in crop revenues was an
increase in revenues of $740,000 at Pacific Almond, the company's
almond processing plant.
This increase in revenues at Pacific Almond is due to the timing
of processing customer almonds and to the sale of almond hulls
from last year's almond harvest.
Increases in revenue during 2001 from the Petro Travel Plaza
operation, increased lease income from the company's portfolio of
properties, and additional milestone and lease payments related to
the Calpine power plant project were more than offset by the sale
of land for $2,000,000 during the third quarter of 2000. These
variations resulted in real estate revenues being down $160,000
when compared with the same period of 2000.
The improvement in net income for the nine months ended Sept. 30,
2001, is due to a reduction in expenses offsetting the small
decline in revenues described above. The reduction in expenses is
due to lower farming costs, indirect real estate project expenses,
and lower interest costs.
Farming costs declined $423,000 primarily due to the timing of
crop harvests. Real estate costs are lower due to a decline in
commissions from the sale of land and to lower fixed water costs.
Interest costs declined due to a reduction in outstanding debt and
the allocation of interest cost to discontinued operations.
The decrease in revenues during the third quarter of the same
period of 2001 is due to a reduction in farming revenues because
of the timing of crop harvests and to reduce real estate revenues
as described above. Partially offsetting these declines in revenue
was an increase in interest income.
The improvement in net income during the third quarter of 2001 is
due to a reduction in certain expenses when compared with the same
period of 2000. Farming expenses are down due to the timing of the
2001 crop harvest.
Indirect real estate project expenses are down due to a reduction
in sales commissions when compared with the same period of 2000.
Corporate costs are lower during the third quarter of 2001 due to
lower professional service costs when compared with the same
period of 2000.
During April 2001, the company finalized its plan for the sale of
its cattle and feedlot division. Management intends to dispose of
its cattle division to provide capital for real estate development
activities and to reduce outstanding debt of the company.
While the sale of livestock and feedlot assets has provided
working capital, it will also result in a loss of significant
revenues in comparison with prior periods, even after taking into
account the revenue stream from grazing leases that the company
entered into in connection with the sale of the breeding herd.
The process of selling a major portion of the company's breeding
herd was completed in June, and the sale of the feedlot was
completed during July 2001. The combined gain on sale, net of
applicable income taxes, of these assets was $700,000. The sale of
the remaining stocker cattle is expected to be completed by the
end of April 2002.
Total revenues from discontinued operations for the nine months of
2001 were $39,235,000 compared with $33,337,000 for the same
period in 2000.
The increase over 2000 is due to an increase in cattle sales of
$3,386,000, which includes $2,600,000 of revenues from the sale of
a large portion of the company's breeding herd. Revenues also
increased compared with the prior period, due to the sale of the
company's feedlot for $3,200,000.
Income from discontinued operations, net of applicable income
taxes, for the first nine months of 2001 were $303,000 or $0.02
per share, diluted, compared with net income, net of applicable
taxes, of $81,000 or $0.01 per share, diluted, for the same period
in 2000.
The increase is related to the growth in revenues described above
that resulted in the net gains from the sale of assets described
earlier. These gains were partially offset by an increase in costs
of sales on stocker cattle and to higher feeding costs.
The results of the first nine months of each fiscal year are
generally not indicative of the results to be expected for the
full year due to the seasonal nature of the company's business
lines.
Generally, a majority of the company's revenues are in late spring
and early fall due to the nature of the agribusiness activities in
livestock and farming. The company is, however, expecting farming
revenues to be lower for 2001 when compared with 2000 due to lower
prices on crops grown.
Tejon Ranch is a growth-oriented, 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.
TEJON RANCH CO.
Third Quarter Ended
Sept. 30, 2001
(In thousands, except share and per share data)
Three Months Ended Nine Months
Ended
2001 2000 2001
2000
Revenues $ 5,863 $ 7,617 $11,547
$11,644
Costs and Expenses 4,725 6,910 11,455
12,995
Income (loss) from
continuing operations
before minority interest 1,138 707 92
(1,351)
Minority interest 20 - (77)
-
Income (loss) from
continuing operations
before income taxes 1,118 707 169
(1,351)
Income taxes 425 269 64
(513)
Income (loss) from
operations 693 438 105
(838)
Income from discontinued
operations, net of
applicable taxes (403) (409) 303
81
Net income (loss) $ 290 $ 29 $ 408 $
(757)
Net income (loss) per
share, basic $ 0.02 $ - $ 0.03 $
(0.06)
Net income (loss) per
share, diluted $ 0.02 $ - $ 0.03 $
(0.06)
Average shares
outstanding, basic 14,318,183 12,712,236 14,208,198
12,708,236
Average shares
outstanding, diluted 14,498,458 12,825,798 14,319,557
12,708,236 |
