Note 14. Business Segment Information

3 Months Ended

Jan. 31, 2012

Notes

Note 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
	1/31/12	1/31/11
Revenues from continuing operations:
Real estate management/rental operations	$661,015	$672,608
Land resource management	952,585	671,302
Total revenues from continuing operations	$1,613,600	$1,343,910
Operating profit (loss) from continuing operations, excluding general and administrative expenses:
Real estate management/rental operations	$138,735	$175,802
Land resource management	(59,564)	(233,329)
Total operating profit, excluding general and administrative expenses	$79,171	($57,527)
General and administrative expenses:
Real estate management/rental operations	$218,946	$223,840
Land resource management	315,523	223,406
Total general and administrative expenses	$534,469	$447,246
Interest and other income, net:
Real estate management/rental operations	$1,097	$4,680
Land resource management	1,641	4,765
Total interest and other income, net	$2,738	$9,445
Interest expense:
Real estate management/rental operations	$315,412	$344,255
Land resource management	8,879	13,595
Total Interest expense	$324,291	$357,850
Loss from continuing operations before income taxes	($776,851)	($853,178)

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

January 31, 2012	Identifiable Assets	Depreciation and  Amortization Expense	Capital Expenditures
Real estate management/rental operations	$27,473,759	$207,543	$2,544
Land resource management	26,007,918	86,826	0
Other corporate	167,755	23,973	41,774
Discontinued operations	0	0	0
Total Assets	$53,649,432	$318,342	$44,318

October 31, 2011	Identifiable Assets	Depreciation and  Amortization Expense	Capital 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 Assets	$65,105,709	$1,354,830	$429,557

During the three months ended January 31, 2011, no one customer represented more than 10% of total revenues.  During the three months ended January 31, 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.