Florida
(State or other jurisdiction of incorporation)
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001-11350
(Commission File Number)
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59-0483700
(IRS Employer Identification No.)
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1530 Cornerstone Boulevard, Suite 100
Daytona Beach, Florida
(Address of principal executive offices)
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32117
(Zip Code)
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Registrant’s telephone number, including area code: (386) 274-2202
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Not Applicable
(Former name or former address, if changed since last report.)
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CONSOLIDATED-TOMOKA LAND CO.
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Date: February 14, 2014
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/s/ Mark E. Patten
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Mark E. Patten, Senior Vice President and Chief Financial Officer
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FOR
IMMEDIATE
RELEASE
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CONSOLIDATED-TOMOKA LAND CO.
REPORTS FOURTH QUARTER AND YEAR END 2013 EARNINGS AND ANNOUNCES 2014 GUIDANCE
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Total revenue increased approximately 145.2% to $9.8 million;
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Net operating income was approximately $3.0 million, an increase of 682.1%;
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Net income per share was $0.32 versus $0.01; and
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Net operating loss from Golf Operations was nearly a break-even with a loss of approximately ($16,500), an improvement of 86.3%.
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Total revenue increased approximately 59.2% to $25.8 million;
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Net operating income was approximately $6.3 million, an increase of 626.9%;
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Net income per share was $0.64 versus $0.10;
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Net operating loss from Golf Operations improved by approximately $475,000 or 53.6%; and
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The weighted average lease duration of our income property portfolio was 10.1 years compared to 10.6 years as of December 31, 2012.
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Book value increased by approximately $6.0 million, to $120.2 million or $20.53 per share;
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Debt totaled approximately $63.2 million, with $33.2 million of available borrowing capacity on our credit facility, and cash totaled approximately $4.9 million. Subsequent to December 31, 2013, the outstanding balance of our credit facility was reduced by $18 million, utilizing proceeds from the payoff of our commercial mortgage loan investment; and
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The funded status of our pension plan, as actuarially determined, changed from a liability of approximately $1.3 million to an asset of approximately $408,000, due primarily to gains in the underlying pension assets, as well as a change in the discount rate.
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On December 10, 2013, the Company sold its interest in the 15,120 square-foot building, located in Orlando, Florida, which was leased to Walgreens, for approximately $3.9 million, generating a gain of approximately $487,000.
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On December 30, 2013, the Company sold its interest in the 4,128 square-foot building, located in Orlando, Florida, which was leased to PNC Bank, for approximately $3.7 million, generating a gain of approximately $198,000.
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Sold 3.405 acres to RaceTrac Petroleum, Inc. (“RaceTrac”) for $1.3 million or approximately $382,000 per acre. The Company recognized a loss on the sale of approximately $244,000, which was attributable to the high basis in the property as this land was repurchased in 2010.
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Sold 2.02 acres to Intracoastal Bank for $640,000 or approximately $317,000 per acre for a gain of approximately $581,000.
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Sold 6.23 acres to CarMax for $1.05 million, or approximately $168,500 per acre, for a loss of approximately $416,000. An impairment loss of approximately $616,000 was recognized on this property during the second quarter of 2013 in connection with a contract to sell 3.21 of the 6.23 acres that did not close. The property was reacquired through foreclosure in 2009.
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Earnings per share (on a fully diluted basis) $1.00 - $1.10 per share;
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Acquisition of Income Producing Assets $50 million - $60 million;
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Target Investment Yields 6% - 9%;
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Disposition of Non-Core Income Properties $8 million - $10 million;
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Target Disposition Yields 7.5% - 9.5%;
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Land Transactions (sales value) $5 million - $10 million; and
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Leverage Target < 40%
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(Unaudited)
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December 31,
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December 31,
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2013
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2012
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ASSETS
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Property, Plant, and Equipment:
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Land, Timber, and Subsurface Interests
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$ | 15,291,911 | $ | 15,194,901 | ||||
Golf Buildings, Improvements, and Equipment
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3,103,979 | 2,879,263 | ||||||
Income Properties, Land, Buildings, and Improvements
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154,902,374 | 132,202,887 | ||||||
Other Furnishings and Equipment
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955,597 | 906,441 | ||||||
Construction in Progress
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987,303 | - | ||||||
Total Property, Plant, and Equipment
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175,241,164 | 151,183,492 | ||||||
Less, Accumulated Depreciation and Amortization
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(13,260,856 | ) | (12,091,901 | ) | ||||
Property, Plant, and Equipment - Net
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161,980,308 | 139,091,591 | ||||||
Land and Development Costs
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23,768,914 | 27,848,525 | ||||||
Intangible Assets - Net
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6,359,438 | 4,527,426 | ||||||
Assets Held for Sale
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- | 3,433,500 | ||||||
Impact Fee and Mitigation Credits
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6,081,433 | 6,313,419 | ||||||
Commercial Mortgage Loan, Held for Investment
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18,845,053 | - | ||||||
Cash and Cash Equivalents
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4,932,512 | 1,301,739 | ||||||
Restricted Cash
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366,645 | - | ||||||
Investment Securities
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729,814 | - | ||||||
Net Pension Asset
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407,670 | - | ||||||
Refundable Income Taxes
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- | 239,720 | ||||||
Other Assets
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2,711,893 | 1,940,980 | ||||||
Total Assets
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$ | 226,183,680 | $ | 184,696,900 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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Liabilities:
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Accounts Payable
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$ | 872,331 | $ | 440,541 | ||||
Accrued Liabilities
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4,726,809 | 6,121,392 | ||||||
Deferred Revenue
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3,344,351 | 850,951 | ||||||
Accrued Stock-Based Compensation
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247,671 | 265,311 | ||||||
Net Pension Obligation
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- | 1,317,683 | ||||||
Income Taxes Payable
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1,044,061 | - | ||||||
Deferred Income Taxes - Net
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32,552,068 | 32,357,505 | ||||||
Long-Term Debt
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63,227,032 | 29,126,849 | ||||||
Total Liabilities
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106,014,323 | 70,480,232 | ||||||
Shareholders' Equity:
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Common Stock -25,000,000 shares authorized; $1 par value, 5,866,759 shares issued
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and 5,852,125 shares outstanding at December 31, 2013; 5,847,036 shares issued
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and 5,832,402 shares outstanding at December 31, 2012
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5,767,192 | 5,726,136 | ||||||
Treasury Stock -14,634 shares
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(453,654 | ) | (453,654 | ) | ||||
Additional Paid-In Capital
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8,509,976 | 6,939,023 | ||||||
Retained Earnings
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106,581,305 | 103,242,643 | ||||||
Accumulated Other Comprehensive Loss
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(235,462 | ) | (1,237,480 | ) | ||||
Total Shareholders' Equity
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120,169,357 | 114,216,668 | ||||||
Total Liabilities and Shareholders' Equity
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$ | 226,183,680 | $ | 184,696,900 |
CONSOLIDATED-TOMOKA LAND CO.
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CONSOLIDATED STATEMENTS OF OPERATIONS
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Three Months Ended
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Year Ended
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December 31,
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December 31,
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2013
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2012
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2013
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2012
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(Unaudited)
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(Unaudited)
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(Unaudited)
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Revenues
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Income Properties
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$ | 3,382,537 | $ | 2,247,704 | $ | 12,828,214 | $ | 8,463,082 | ||||||||
Interest Income from Commercial Mortgage Loan
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1,068,715 | - | 1,712,913 | - | ||||||||||||
Real Estate Operations
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3,934,788 | 681,473 | 5,945,510 | 3,098,840 | ||||||||||||
Golf Operations
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1,316,269 | 1,062,085 | 5,074,898 | 4,506,069 | ||||||||||||
Agriculture and Other Income
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127,281 | 18,350 | 276,309 | 164,979 | ||||||||||||
Total Revenues
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9,829,590 | 4,009,612 | 25,837,844 | 16,232,970 | ||||||||||||
Direct Cost of Revenues
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Income Properties
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(295,052 | ) | (157,192 | ) | (1,333,974 | ) | (676,096 | ) | ||||||||
Real Estate Operations
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(3,173,749 | ) | (173,149 | ) | (3,653,901 | ) | (705,062 | ) | ||||||||
Golf Operations
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(1,332,737 | ) | (1,182,672 | ) | (5,487,075 | ) | (5,393,633 | ) | ||||||||
Agriculture and Other Income
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(28,085 | ) | (32,414 | ) | (148,360 | ) | (198,834 | ) | ||||||||
Total Direct Cost of Revenues
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(4,829,623 | ) | (1,545,427 | ) | (10,623,310 | ) | (6,973,625 | ) | ||||||||
General and Administrative Expenses
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(1,211,731 | ) | (1,554,201 | ) | (5,433,562 | ) | (6,624,584 | ) | ||||||||
Impairment Charges
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- | - | (616,278 | ) | - | |||||||||||
Depreciation and Amortization
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(757,132 | ) | (520,034 | ) | (2,885,317 | ) | (2,010,505 | ) | ||||||||
Gain on Disposition of Assets
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- | (2,406 | ) | - | 239,645 | |||||||||||
Total Operating Expenses
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(6,798,486 | ) | (3,622,068 | ) | (19,558,467 | ) | (15,369,069 | ) | ||||||||
Operating Income
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3,031,104 | 387,544 | 6,279,377 | 863,901 | ||||||||||||
Interest Income
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14 | 665 | 405 | 1,485 | ||||||||||||
Interest Expense
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(510,538 | ) | (173,234 | ) | (1,826,564 | ) | (648,683 | ) | ||||||||
Loss on Early Extinguishment of Debt
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- | - | - | (245,726 | ) | |||||||||||
Income (Loss) from Continuing Operations Before
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Income Tax
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2,520,580 | 214,975 | 4,453,218 | (29,023 | ) | |||||||||||
Income Tax (Expense) Benefit
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(1,155,559 | ) | (68,548 | ) | (1,891,680 | ) | 28,722 | |||||||||
Income (Loss) from Continuing Operations
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1,365,021 | 146,427 | 2,561,538 | (301 | ) | |||||||||||
Income (Loss) from Discontinued Operations (Net of Tax)
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487,107 | (84,606 | ) | 1,121,709 | 599,503 | |||||||||||
Net Income
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$ | 1,852,128 | $ | 61,821 | $ | 3,683,247 | $ | 599,202 | ||||||||
Per Share Information:
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Basic and Diluted
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Income from Continuing Operations
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$ | 0.24 | $ | 0.02 | $ | 0.44 | $ | - | ||||||||
Income from Discontinued Operations (Net of Tax)
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0.08 | (0.01 | ) | 0.20 | 0.10 | |||||||||||
Net Income
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$ | 0.32 | $ | 0.01 | $ | 0.64 | $ | 0.10 | ||||||||
Dividends Declared and Paid
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$ | 0.03 | $ | 0.02 | $ | 0.06 | $ | 0.04 |