EX-99.1 2 pressrelease.htm PRESS RELEASE OCTOBER 18, 2007 pressrelease.htm

For Immediate Release
  Consolidated-Tomoka Land Co.

Date:
October 18, 2007
Contact:
Bruce W. Teeters, Sr. Vice President
Phone:
(386) 274-2202
Facsimile:
(386) 274-1223

CONSOLIDATED TOMOKA REPORTS THIRD QUARTER EARNINGS

    DAYTONA BEACH, FLORIDA - Consolidated-Tomoka Land Co. (AMEX–CTO) reported net income of $2,102,564 or $.37 earnings per basic share and earnings before depreciation, amortization and deferred taxes (EBDDT) of $3,165,382 or $.55 per share for the quarter ended September 30, 2007.  The comparable numbers for the third quarter of 2006 were net income of $2,384,018 or $.42 earnings per basic share and EBDDT of $5,106,075 or $.90 per share.  For the nine months ended September 30, 2007, net income totaled $2,634,692 or $.46 earnings per basic share, compared with net income of $8,251,984 or $1.45 earnings per basic share in 2006.  EBDDT totaled $5,119,297 or $.90 per share in 2007's first nine months, compared with $13,268,186 or $2.34 per share in 2006 for the same period.
 
    EBDDT is being provided to reflect the impact of the Company’s business strategy of investing in income properties utilizing tax deferred exchanges.  This strategy generates significant amounts of depreciation and deferred taxes.  The Company believes EBDDT is useful, along with net income, to understanding the Company’s operating results.
 
    William H. McMunn, president and chief executive officer stated, “The Company’s business plan is to convert undeveloped land through sales to third parties into a diversified portfolio of properties that produce predictable income.  The strategy is intended, in part, to lessen the volatility of Company earnings due to significant market changes, such as the current downturn in the residential sector.  The local commercial real estate market remains relatively stable.  Closings during the third quarter were down compared to the prior year due to contract timing issues.  Management will be focusing on closing a backlog of commercial contracts during the fourth quarter.”
 
    Consolidated-Tomoka Land Co. is a Florida-based Company primarily engaged in converting Company owned agricultural lands into a portfolio of income properties strategically located throughout the Southeast, and the development, management and sale of targeted real estate properties.  Visit our website at www.consolidatedtomoka.com
# # #


 
 
EARNINGS NEWS RELEASE
          
             
   
QUARTER ENDED
  
   
SEPTEMBER 30,
    
SEPTEMBER 30,
  
   
2007
    
2006 (1)
  
   
 
    
 
  
             
REVENUES
   $
7,098,154
     $
8,557,732
  
                 
                 
                 
NET INCOME
   $
2,102,564
     $
2,384,018
  
                 
                 
BASIC & DILUTED EARNINGS PER SHARE:
                
                 
                 
NET INCOME
   $
0.37
     $
0.42
  
                 
                 
(1)THE THIRD QUARTER OF 2006 HAS BEEN ADJUSTED TO REFLECT THE QUARTERLY IMPACT
OF THE SAB 108 ADJUSTMENT MADE IN THE FOURTH QUARTER OF 2006. THE ADJUSTMENT
WAS CONSIDERED IMMATERIAL FOR EACH OF THE QUARTERS OF 2006.
    
     
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NINE MONTHS ENDED
        
     
SEPTEMBER 30,
    
SEPTEMBER 30,
        
     
2007
    
2006 (1)
        
                     
REVENUES
     $
21,157,407
     $
25,680,687
        
                         
                         
NET INCOME BEFORE DISCONTINUED OPERATIONS AND
    
2,634,692
      
8,227,601
        
 CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
                      
                         
DISCONTINUED OPERATIONS (NET OF INCOME TAX)
    
--
      
240,476
        
                         
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
                      
 (NET OF INCOME TAX)
    
--
       (216,093 )     (2 )
                           
NET INCOME
   $
2,634,692
     $
8,251,984
          
                           
                           
BASIC AND DILUTED EARNINGS PER SHARE:
                        
                           
NET INCOME BEFORE DISCONTINUED OPERATIONS AND
                        
 CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
   $
0.46
     $
1.45
          
                           
DISCONTINUED OPERATIONS (NET OF INCOME TAX)
    
--
     $
0.04
          
                           
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
                        
 (NET OF INCOME TAX)
    
--
       (0.04 )     (2 )
                           
NET INCOME
   $
0.46
     $
1.45
          
                           
                           
  (1 )THE FIRST NINE MONTHS OF 2006 HAVE BEEN ADJUSTED TO REFLECT THE IMPACT         
     OF THE SAB 108 ADJUSTMENT MADE IN THE FOURTH QUARTER OF 2006. THE ADJUSTMENT 
     WAS CONSIDERED IMMATERIAL FOR EACH OF THE QUARTERS OF 2006.                  
                             
  (2 )THE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE REPRESENTS THE          
     CHANGE IN ACCOUNTING FOR STOCK OPTIONS WITH THE ADOPTION OF FINANCIAL          
     ACCOUNTING STANDARDS STATEMENT NO. 123 (REVISED 2004).                  
                             
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RECONCILIATION OF NET INCOME TO EARNINGS BEFORE
          
DEPRECIATION,  AMORTIZATION AND DEFERRED TAXES
          
   
QUARTER ENDED
  
   
SEPTEMBER 30,
    
SEPTEMBER 30,
  
   
2007
    
2006 (1)
  
NET INCOME
   $
2,102,564
     $
2,384,018
  
                 
ADD BACK:
                
                 
    DEPRECIATION & AMORTIZATION
    
616,964
      
613,565
  
                 
    DEFERRED TAXES
    
445,854
      
2,108,492
  
                 
EARNINGS (LOSS) BEFORE DEPRECIATION,  AMORTIZATION
                
     AND DEFERRED TAXES
   $
3,165,382
     $
5,106,075
  
                 
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING
    
5,720,219
      
5,691,192
  
                 
BASIC EBDDT PER SHARE
   $
0.55
     $
0.90
  
                 
   
NINE MONTHS ENDED
  
   
SEPTEMBER 30,
    
SEPTEMBER 30,
  
   
2007
    
2006 (1)
  
NET INCOME
   $
2,634,692
     $
8,251,984
  
                 
ADD BACK:
                
                 
    DEPRECIATION & AMORTIZATION
    
1,848,214
      
1,662,368
  
                 
    DEFERRED TAXES
    
636,391
      
3,353,834
  
                 
EARNINGS BEFORE DEPRECIATION,  AMORTIZATION
                
     AND DEFERRED TAXES
   $
5,119,297
     $
13,268,186
  
                 
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING
    
5,713,450
      
5,681,060
  
                 
BASIC EBDDT PER SHARE
   $
0.90
     $
2.34
  
                 
EBDDT - EARNINGS BEFORE DEPRECIATION, AMORTIZATION, AND DEFERRED TAXES. EBDDT IS NOT A MEASURE OF
OPERATING RESULTS OR CASH FLOWS FROM OPERATING ACTIVITIES AS DEFINED BY U.S. GENERALLY
  
ACCEPTED ACCOUNTING PRINCIPLES. FURTHER, EBDDT IS NOT NECESSARILY INDICATIVE OF CASH
  
AVAILABILITY TO FUND CASH NEEDS AND SHOULD NOT BE CONSIDERED AS AN ALTERNATIVE TO
  
CASH FLOW AS A MEASURE OF LIQUIDITY. THE COMPANY BELIEVES, HOWEVER, THAT EBDDT PROVIDES
RELEVANT INFORMATION ABOUT OPERATIONS AND IS USEFUL, ALONG WITH NET INCOME, FOR AN
  
UNDERSTANDING OF THE COMPANY'S OPERATING RESULTS.
        
         
EBDDT IS CALCULATED BY ADDING DEPRECIATION, AMORTIZATION AND DEFERRED INCOME TAXES
  
TO NET INCOME AS THEY REPRESENT NON-CASH CHARGES.
        
         
    (1)THE THIRD QUARTER AND FIRST NINE MONTHS OF 2006 HAVE BEEN ADJUSTED TO REFLECT THE QUARTERLY IMPACT OF THE SAB 108
        ADJUSTMENT  MADE  IN THE FOURTH QUARTER OF 2006.  THE ADJUSTMENT WAS CONSIDERED IMMATERIAL FOR EACH OF THE QUARTERS OF 2007.
 


 
CONSOLIDATED BALANCE SHEETS      
   
SEPTEMBER 30,
      
DECEMBER 31,
  
   
2007
    
 2006
  
ASSETS
            
   Cash
    
3,233,154
      
738,264
  
   Restricted Cash
    
1,524,347
      
1,185,962
  
   Investment Securities
    
9,521,974
      
11,780,205
  
   Notes Receivable
    
700,000
      
700,000
  
   Land and Development Costs
    
16,012,716
      
15,058,340
  
   Intangible Assets
    
4,814,186
      
5,103,649
  
   Other Assets
    
4,949,229
      
5,569,605
  
     
40,755,606
      
40,136,025
  
                 
Property, Plant & Equipment:
                
  Land, Timber and Subsurface Interests
    
6,267,707
      
3,012,623
  
  Golf Buildings, Improvements & Equipment
    
11,613,112
      
11,442,492
  
  Income Properties Land, Buildings & Improvements
    
104,820,647
      
104,819,695
  
  Other Building, Equipment and Land Improvements
    
2,819,381
      
2,584,467
  
    Total Property, Plant and Equipment
    
125,520,847
      
121,859,277
  
  Less, Accumulated Depreciation and Amortization
     (9,762,392 )     (8,221,138 )
   Net - Property, Plant and Equipment
    
115,758,455
      
113,638,139
  
                 
      TOTAL ASSETS
    
156,514,061
      
153,774,164
  
                 
LIABILITIES
                
   Accounts Payable
    
201,235
      
167,378
  
   Accrued Liabilities
    
8,744,896
      
7,749,121
  
   Accrued Stock Based Compensation
    
3,597,598
      
5,743,773
  
   Income Taxes Payable
    
419,748
      
--
  
   Deferred Profit
    
--
      
563,467
  
   Deferred Income Taxes
    
30,127,978
      
29,491,587
  
   Notes Payable
    
6,872,781
      
7,061,531
  
                 
      TOTAL LIABILITIES
    
49,964,236
      
50,776,857
  
                 
SHAREHOLDERS' EQUITY
                
   Common Stock
    
5,725,806
      
5,693,007
  
   Additional Paid in Capital
    
5,130,574
      
2,630,748
  
   Retained Earnings
    
96,686,473
      
95,650,170
  
   Accumulated Other Comprehensive Loss
     (993,028 )     (976,618 )
                 
      TOTAL SHAREHOLDERS' EQUITY
    
106,549,825
      
102,997,307
  
                 
      TOTAL LIABILITIES AND
                
      SHAREHOLDERS' EQUITY
    
156,514,061
      
153,774,164
  
                 
                 
                 
                 

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###
“Safe Harbor”

     Certain statements contained in this press release (other than statements of historical fact) are forward-looking statements.  The words “believe,” “estimate,” “expect,” “intend,” “anticipate,” “will,” “could,” “may,” “should,” “plan,” “potential,” “predict,” “forecast,” “project,” and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made.  Forward-looking statements are made based upon management’s expectations and beliefs concerning future developments and their potential effect upon the Company.  There can be no assurance that future developments will be in accordance with management’s expectations or that the effect of future developments on the Company will be those anticipated by management.

     The Company wishes to caution readers that the assumptions which form the basis for forward-looking statements with respect to or that may impact earnings for the year ended December 31, 2007, and thereafter include many factors that are beyond the Company’s ability to control or estimate precisely.  These risks and uncertainties include, but are not limited to, the strength of the real estate market in the City of Daytona Beach in Volusia County, Florida; our ability to successfully execute acquisition or development strategies; any loss of key management personnel; changes in local, regional and national economic conditions affecting the real estate development business and income properties; the impact of environmental and land use regulations; the impact of competitive real estate activity; variability in quarterly results due to the unpredictable timing of land sales; the loss of any major income property tenants; and the availability of capital.  Additional information concerning these and other factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the Company’s Securities and Exchange Commission filings, including, but not limited to, the Company’s Annual Report on Form 10-K. Copies of each filing may be obtained from the Company or the SEC.

     While the Company periodically reassesses material trends and uncertainties affecting its results of operations and financial condition, the Company does not intend to review or revise any particular forward-looking statement referenced herein in light of future events.

     Disclosures in this press release regarding the Company’s current quarters financial results are preliminary and are subject to change in connection with the Company’s preparation and filing of its Form 10-Q for the quarter ended September 30, 2007.  The financial information in this release reflects the Company’s preliminary results subject to completion of the quarterly review process.  The final results for the quarter may differ from the preliminary results discussed above due to factors that include, but are not limited to, risks associated with final review of the results and preparation of financial statements.

     This release refers to certain non-GAAP financial measures.  As required by the SEC, the Company has provided a reconciliation of these measures to the most directly comparable GAAP measures with this release.  Non-GAAP measures as the Company has calculated them may not be comparable to similarly titled measures reported by other companies.