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BUSINESS SEGMENT INFORMATION
 9 Months Ended
Jul. 31, 2013
Business Segment Information  
BUSINESS SEGMENT INFORMATION

13. 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.

   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, four duplex homes in Laurelwoods II and 18 condominium units within Building J at Boulder Lake Village on Big Boulder Lake have been completed at October 31, 2012.  Other expenditures for our development projects in the planning phases include fees for architects, engineers, consultants, studies and permits.  All of the homes had been sold as of February 1, 2013.

     Information by business segment is as follows:

         
 

 

Three months ended

 Nine months ended
  07/31/13  07/31/12  07/31/13  07/31/12 
Revenues from continuing operations:        
Real estate management/rental operations $719,738  $710,079  $2,078,668  $2,062,956 
Land resource management 7,310,224  1,223,328  8,063,093  3,213,419 
Total revenues from operations $8,029,962  $1,933,407  $10,141,761  $5,276,375 
         
Operating profit (loss) from continuing operations, excluding general and administrative expenses:        
Real estate management/rental operations $273,368  $222,619  $668,556  $594,459 
Land resource management 5,162,610  (91,070) 950,955  (419,362)

Total operating profit (loss), excluding general

     and administrative expenses

 $5,435,978  $131,549  $1,619,511  $175,097 
         
General and administrative expenses:        
Real estate management/rental operations $53,732  $159,138  $322,772  $548,307 
Land resource management 545,741  274,165  1,252,023  854,084 
Total general and administrative expenses $599,473  $433,303  $1,574,795  $1,402,391 
         
Interest and other income, net:        
Real estate management/rental operations $2  $41  $455  $1,145 
Land resource management 42  109  1,875  1,946 
Total interest and other income, net $44  $150  $2,330  $3,091 
         
Interest expense:        
Real estate management/rental operations $232,830  $236,452  $697,419  $706,889 
Land resource management 21,683  26,133  73,060  154,906 
Total Interest expense $254,513  $262,585  $770,479  $861,795 
         

Gain (loss) from continuing operations before

income taxes

 $4,582,036  ($564,189) ($723,433) ($2,085,998)

 

     Identifiable assets, net of accumulated depreciation at July 31, 2013 and October 31, 2012 and depreciation expense and capital expenditures for nine months ended July 31, 2013 and the fiscal year ended October 31, 2012 by business segment are as follows:

       
July 31, 2013 Identifiable  Assets 

Depreciation

and  Amortization

Expense 

 Capital  Expenditures 
  Real estate management/rental operations $26,763,530  $584,544  $5,028 
  Land resource management 20,163,939  243,813  3,375 
  Other corporate 96,309  28,553  70,507 
  Discontinued operations 166,682  0  0 
  Total Assets $47,190,460  $856,910  $78,910 

 

       
October 31, 2012 Identifiable Assets 

Depreciation

and  Amortization

Expense 

 Capital Expenditures 
  Real estate management/rental operations $26,125,839  $804,900  $24,579 
  Land resource management 23,990,608  342,580  9,617 
  Other corporate 288,363  77,856  59,285 
  Discontinued operations 166,682  1,666  0 
  Total Assets $50,571,492  $1,227,002  $93,481 

During the nine months ended July 31, 2012, the Companies had two material property sales, 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.  During the nine months ended July 31, 2013, the Companies had two material property sales, which totaled $6,600,000: one sale for $1,600,000 to Hanson Aggregates BMC, Inc. Assignee for The Conservation Fund and one sale for $5,000,000 to The Wildlands Conservancy, Assignee for The Pennsylvania Game Commission.