14. Business Segment Information

6 Months Ended

Apr. 30, 2012

Notes

14. Business Segment Information

14. 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, Louisiana, Colorado and Texas; 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.  The investment property located in Colorado was sold September 30, 2011, the investment property in Texas was sold November 30, 2011 and the Jack Frost Mountain and Big Boulder Ski Areas were sold December 15, 2011.

   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.

     Information by business segment is as follows:

	Three months ended		Six months ended
	4/30/12	4/30/11	4/30/12	4/30/11
Revenues from continuing operations:
Real estate management/rental operations	$697,612	$696,785	$1,358,627	$1,369,393
Land resource management	1,037,506	187,979	1,990,091	859,281
Total revenues from operations	$1,735,118	$884,764	$3,348,718	$2,228,674
Operating profit (loss) from continuing operations, excluding general and administrative expenses:
Real estate management/rental operations	$224,560	$205,481	$363,295	$381,283
Land resource management	(268,728)	(307,286)	(328,292)	(540,615)
Total operating profit (loss), excluding general and administrative expenses	($44,168)	($101,805)	$35,003	($159,332)
General and administrative expenses:
Real estate management/rental operations	$174,741	$353,237	$393,174	$550,405
Land resource management	259,878	95,296	575,914	345,374
Total general and administrative expenses	$434,619	$448,533	$969,088	$895,779
Interest and other income, net:
Real estate management/rental operations	$58	$431	$1,144	$6,083
Land resource management	145	230	1,797	4,023
Total interest and other income, net	$203	$661	$2,941	$10,106
Interest expense:
Real estate management/rental operations	$273,045	$336,362	$588,457	$682,952
Land resource management	1,874	13,595	10,753	24,855
Total Interest expense	$274,919	$349,957	$599,210	$707,807
Loss from continuing operations before income taxes	($753,503)	($899,634)	($1,530,354)	($1,752,812)

     Identifiable assets, net of accumulated depreciation at April 30, 2012 and October 31, 2011 and depreciation expense and capital expenditures for six months ended April 31, 2012 and the fiscal year ended October 31, 2011 by business segment are as follows:

April 30, 2012	Identifiable  Assets		Depreciation and  Amortization Expense	Capital  Expenditures
Real estate management/rental operations	$27,241,297	$410,179		$2,544
Land resource management	24,953,577	173,652		0
Other corporate	145,096	45,838		55,655
Discontinued operations	0	0		0
Total Assets	$52,339,970	$629,669		$58,199
October 31, 2011
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 Assets	$65,105,709	$1,354,830		$429,557

For the six months ended April 30, 2011, no one customer represented more than 10% of total revenues.  During the six months ended April 30, 2012, the Companies had two material property sales, the revenue from which totaled $10,911,419: one sale for $9,000,000 to JFBB Ski Areas, Inc. and one sale for $1,911,419 to Phyllis Enfield Trust.