17. Business Segment Information

12 Months Ended

Oct. 31, 2011

Notes

17. Business Segment Information:

17.  BUSINESS SEGMENT INFORMATION:

   The following information is presented in accordance with the accounting pronouncement regarding disclosures about segments of an enterprise and related information".  The Companies' business segments were determined from the Companies' internal organization and management reporting, which are based primarily on differences in services. 

   Real Estate Management/Rental Operations

   Real Estate Management/Rental Operations consists of: investment properties leased to others located in Eastern Pennsylvania, New Jersey, Minnesota and Louisiana; recreational club activities; services to the trusts that operate resort residential communities; sales of investment properties; and rental of land and land improvements, which includes the leasing of our two ski areas located in the Pocono Mountains of Northeastern Pennsylvania.

   Land Resource Management

   Land Resource Management consists of: land sales; land purchases; timbering operations; the Jack Frost National Golf Course; and a real estate development division.  Timbering operations consist of selective timbering on our land holdings.  Contracts are entered into for parcels that have had the timber selectively marked.  We rely on the advice of our forester, who is engaged on a consulting basis and who receives a commission on each stumpage contract, for the timing and selection of certain parcels of land for timbering.  Our forester gives significant attention to protecting the environment and retaining the value of these parcels for future timber harvests.  The Jack Frost National Golf Course is managed by Billy Casper Golf, LLC, an unaffiliated third party.  The real estate development division is responsible for the residential land development activities which include overseeing the construction of single and multi-family homes and development of infrastructure.

   Funds expended to date for real estate development have been primarily for infrastructure improvements and home construction in the Laurelwoods II and Boulder Lake Village communities.  Construction of 22 single family homes and four duplex homes in Laurelwoods II has been completed.  The construction of 18 condominium units within Building J at Boulder Lake Village on Big Boulder Lake has been completed as well.  Other expenditures for our development projects in the planning phases include fees for architects, engineers, consultants, studies and permits. 

	10/31/11	10/31/10	10/31/09
Revenues from continuing operations:
Real estate management/rental operations	$2,824,476	$2,875,266	$3,525,024
Land resource management	2,872,670	2,557,013	11,990,241
	$5,697,146	$5,432,279	$15,515,265
Operating profit (loss) from continuing operations, excluding general and administrative expenses:
Real estate management/rental operations	$834,120	$745,922	$418,483
Land resource management	(1,544,539)	(3,055,472)	1,724,044
	($710,419)	($2,309,550)	$2,142,527
General and administrative expenses:
Real estate management/rental operations	$888,114	$1,290,532	$372,446
Land resource management	903,267	1,147,688	1,266,861
	1,791,381	$2,438,220	$1,639,307
Interest and other income, net:
Real estate management/rental operations	$9,277	$0	$0
Land resource management	1,982	21,591	12,812
	$11,259	$21,591	$12,812
Interest expense:
Real estate management/rental operations	$1,369,305	$1,197,069	$945,101
Land resource management	45,726	64,270	90,070
	$1,415,031	$1,261,339	$1,035,171
Income (loss) from continuing operations before income taxes	($3,905,572)	($5,987,518)	($519,139)

   For the fiscal years ended October 31, 2010, no one customer represented more than 10 % of total revenues.  In fiscal year ended October 31, 2011, we sold Applebee’s for $1,450,000 which is 19% of total revenue and in fiscal year ended October 31, 2009, we had land sales to The Conservation Fund totaling revenue of $6,875,000 which was 43% of total revenue.

   Identifiable assets, net of accumulated depreciation at October 31, 2011, 2010, and 2009 and depreciation expense and capital expenditures for the years then ended by business segment are as follows:

		Depreciation and
	Identifiable	Amortization	Capital
October 31, 2011	Assets	Expense	Expenditures
Real estate management/rental operations	$20,861,471	$632,556	$761
Land resource management	33,251,319	382,559	225,105
Other corporate	222,697	109,991	203,691
Discontinued operations	10,770,222	229,724	0
Total	$65,105,709	$1,354,830	$429,557

		Depreciation and
	Identifiable	Amortization	Capital
October 31, 2010	Assets	Expense	Expenditures
Real estate management/rental operations	$24,453,293	$680,582	$1,462,552
Land resource management	33,186,415	381,607	73,084
Other corporate	322,144	89,714	7,363
Discontinued operations	12,295,538	189,871	0
Total	$70,257,390	$1,341,774	$1,542,999

		Depreciation and
	Identifiable	Amortization	Capital
October 31, 2009	Assets	Expense	Expenditures
Real estate management/rental operations	$25,594,578	$770,643	$51,220
Land resource management	36,192,161	382,325	14,086
Other corporate	318,713	96,534	10,667
Discontinued operations	10,853,929	141,651	0
Total	$72,959,381	$1,391,153	$75,973

All asset impairments and abandonments in Fiscal 2011, 2010 and 2009 relate to the Land Resource Management segment.