FORM 10-Q |
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TEJON RANCH CO. | ||
(Exact name of Registrant as specified in its charter) |
Delaware | 77-0196136 | |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
Page | ||
PART I. | FINANCIAL INFORMATION | |
Item 1. | Financial Statements | |
Unaudited Consolidated Statements of Operations for the Three Months Ended March 31, 2017 and 2016 | ||
Unaudited Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended March 31, 2017 and 2016 | ||
Consolidated Balance Sheets as of March 31, 2017 (unaudited) and December 31, 2016 | ||
Unaudited Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2017 and 2016 | ||
Unaudited Consolidated Statement of Changes in Equity and Noncontrolling Interests for the Three Months Ended March 31, 2017 | ||
Notes to Unaudited Consolidated Financial Statements | ||
Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations | |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | |
Item 4. | Controls and Procedures | |
PART II. | OTHER INFORMATION | |
Item 1. | Legal Proceedings | |
Item 1A. | Risk Factors | |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | |
Item 3. | Defaults Upon Senior Securities | |
Item 4. | Mine Safety Disclosures | |
Item 5. | Other Information | |
Item 6. | Exhibits | |
SIGNATURES |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Revenues: | |||||||
Real estate - commercial/industrial | $ | 2,189 | $ | 2,154 | |||
Mineral resources | 2,001 | 8,740 | |||||
Farming | 431 | 1,221 | |||||
Ranch operations | 1,081 | 838 | |||||
Total revenues | 5,702 | 12,953 | |||||
Costs and Expenses: | |||||||
Real estate - commercial/industrial | 1,743 | 1,679 | |||||
Real estate - resort/residential | 630 | 542 | |||||
Mineral resources | 1,324 | 4,693 | |||||
Farming | 1,323 | 1,506 | |||||
Ranch operations | 1,493 | 1,347 | |||||
Corporate expenses | 2,945 | 3,003 | |||||
Total expenses | 9,458 | 12,770 | |||||
Operating (loss) gain | (3,756 | ) | 183 | ||||
Other Income: | |||||||
Investment income | 103 | 118 | |||||
Other income | 180 | 51 | |||||
Total other income | 283 | 169 | |||||
(Loss) income from operations before equity in earnings of unconsolidated joint ventures | (3,473 | ) | 352 | ||||
Equity in earnings of unconsolidated joint ventures, net | 228 | 1,455 | |||||
(Loss) Income before income tax expense | (3,245 | ) | 1,807 | ||||
Income tax (benefit) expense | (1,332 | ) | 612 | ||||
Net (loss) income | (1,913 | ) | 1,195 | ||||
Net loss attributable to non-controlling interest | (11 | ) | (14 | ) | |||
Net (loss) income attributable to common stockholders | $ | (1,902 | ) | $ | 1,209 | ||
Net (loss) income per share attributable to common stockholders, basic | $ | (0.09 | ) | $ | 0.06 | ||
Net (loss) income per share attributable to common stockholders, diluted | $ | (0.09 | ) | $ | 0.06 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Net (loss) income | $ | (1,913 | ) | $ | 1,195 | ||
Other comprehensive income (loss): | |||||||
Unrealized gain (loss) on available for sale securities | 38 | 188 | |||||
Unrealized gain (loss) on interest rate swap | 374 | (2,276 | ) | ||||
Other comprehensive income (loss) before taxes | 412 | (2,088 | ) | ||||
Benefit (provision) from income taxes related to other comprehensive income (loss) items | (162 | ) | 730 | ||||
Other comprehensive income (loss) | 250 | (1,358 | ) | ||||
Comprehensive loss | (1,663 | ) | (163 | ) | |||
Comprehensive loss attributable to non-controlling interests | (11 | ) | (14 | ) | |||
Comprehensive loss income attributable to common stockholders | $ | (1,652 | ) | $ | (149 | ) |
March 31, 2017 | December 31, 2016 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Current Assets: | |||||||
Cash and cash equivalents | $ | 3,496 | $ | 1,258 | |||
Marketable securities - available-for-sale | 24,212 | 26,675 | |||||
Accounts receivable | 4,527 | 8,740 | |||||
Inventories | 6,378 | 3,084 | |||||
Prepaid expenses and other current assets | 3,955 | 3,107 | |||||
Total current assets | 42,568 | 42,864 | |||||
Real estate and improvements - held for lease, net | 18,582 | 20,026 | |||||
Real estate development (includes $90,149 at March 31, 2017 and $89,381 at December 31, 2016, attributable to Centennial Founders, LLC, Note 15) | 252,250 | 248,265 | |||||
Property and equipment, net | 45,989 | 46,034 | |||||
Investments in unconsolidated joint ventures | 33,692 | 33,803 | |||||
Net investment in water assets | 47,702 | 43,764 | |||||
Deferred tax assets | 2,118 | 2,282 | |||||
Other assets | 4,015 | 2,663 | |||||
TOTAL ASSETS | $ | 446,916 | $ | 439,701 | |||
LIABILITIES AND EQUITY | |||||||
Current Liabilities: | |||||||
Trade accounts payable | $ | 2,811 | $ | 2,415 | |||
Accrued liabilities and other | 3,445 | 3,188 | |||||
Deferred income | 2,071 | 1,529 | |||||
Revolving line of credit | 16,000 | 7,700 | |||||
Current maturities of long-term debt | 3,868 | 3,853 | |||||
Total current liabilities | 28,195 | 18,685 | |||||
Long-term debt, less current portion | 68,905 | 69,853 | |||||
Long-term deferred gains | 3,662 | 3,662 | |||||
Other liabilities | 12,989 | 13,034 | |||||
Total liabilities | 113,751 | 105,234 | |||||
Commitments and contingencies | |||||||
Equity: | |||||||
Tejon Ranch Co. Stockholders’ Equity | |||||||
Common stock, $.50 par value per share: | |||||||
Authorized shares - 30,000,000 | |||||||
Issued and outstanding shares - 20,845,790 at March 31, 2017 and 20,810,301 at December 31, 2016 | 10,423 | 10,405 | |||||
Additional paid-in capital | 230,105 | 229,762 | |||||
Accumulated other comprehensive loss | (5,989 | ) | (6,239 | ) | |||
Retained earnings | 70,045 | 71,947 | |||||
Total Tejon Ranch Co. Stockholders’ Equity | 304,584 | 305,875 | |||||
Non-controlling interest | 28,581 | 28,592 | |||||
Total equity | 333,165 | 334,467 | |||||
TOTAL LIABILITIES AND EQUITY | $ | 446,916 | $ | 439,701 |
Three Months Ended March 31, | |||||||
2017 | 2016 | ||||||
Operating Activities | |||||||
Net (loss) income | $ | (1,913 | ) | $ | 1,195 | ||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||
Depreciation and amortization | 1,150 | 1,366 | |||||
Amortization of premium/discount of marketable securities | 86 | 123 | |||||
Equity in earnings of unconsolidated joint ventures | (228 | ) | (1,455 | ) | |||
Non-cash retirement plan expense | 255 | 242 | |||||
Gain on sale of real estate/assets | — | (14 | ) | ||||
Stock compensation expense | 811 | 973 | |||||
Excess tax benefit from stock-based compensation | 142 | — | |||||
Changes in operating assets and liabilities: | |||||||
Receivables, inventories and other assets, net | (1,175 | ) | (2,435 | ) | |||
Current liabilities | 302 | (1,026 | ) | ||||
Net cash used in operating activities | (570 | ) | (1,031 | ) | |||
Investing Activities | |||||||
Maturities and sales of marketable securities | 2,671 | 1,383 | |||||
Funds invested in marketable securities | (255 | ) | (1,222 | ) | |||
Real estate and equipment expenditures | (4,247 | ) | (5,667 | ) | |||
Communities Facilities District and other reimbursements | — | 4,162 | |||||
Proceeds from sale of real estate/assets | — | 145 | |||||
Investment in unconsolidated joint ventures | (20 | ) | (20 | ) | |||
Distribution of equity from unconsolidated joint ventures | 2,087 | — | |||||
Investments in long-term water assets | (4,276 | ) | — | ||||
Net cash used in investing activities | (4,040 | ) | (1,219 | ) | |||
Financing Activities | |||||||
Borrowings of short-term debt | 8,300 | 2,000 | |||||
Repayments of short-term debt | — | — | |||||
Repayments of long-term debt | (938 | ) | (63 | ) | |||
Taxes on vested stock grants | (514 | ) | (310 | ) | |||
Net cash provided by financing activities | 6,848 | 1,627 | |||||
Increase (decrease) in cash and cash equivalents | 2,238 | (623 | ) | ||||
Cash and cash equivalents at beginning of period | 1,258 | 1,930 | |||||
Cash and cash equivalents at end of period | $ | 3,496 | $ | 1,307 | |||
Supplemental cash flow information | |||||||
Accrued capital expenditures included in current liabilities | $ | 744 | $ | 319 | |||
Income taxes paid | $ | — | $ | 1,350 | |||
Non cash capital contribution to unconsolidated joint venture | $ | 1,339 | $ | — |
Common Stock Shares Outstanding | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Total Stockholders' Equity | Noncontrolling Interest | Total Equity | |||||||||||||||||||||||
Balance, December 31, 2016 | 20,810,301 | $ | 10,405 | $ | 229,762 | $ | (6,239 | ) | $ | 71,947 | $ | 305,875 | $ | 28,592 | $ | 334,467 | ||||||||||||||
Net income (loss) | — | — | — | — | (1,902 | ) | (1,902 | ) | (11 | ) | (1,913 | ) | ||||||||||||||||||
Other comprehensive income | — | — | — | 250 | — | 250 | — | 250 | ||||||||||||||||||||||
Restricted stock issuance | 63,276 | 32 | (33 | ) | — | — | (1 | ) | — | (1 | ) | |||||||||||||||||||
Stock compensation | — | — | 876 | — | — | 876 | — | 876 | ||||||||||||||||||||||
Shares withheld for taxes and tax benefit of vested shares | (27,787 | ) | (14 | ) | (500 | ) | — | — | (514 | ) | — | (514 | ) | |||||||||||||||||
Balance, March 31, 2017 | 20,845,790 | $ | 10,423 | $ | 230,105 | $ | (5,989 | ) | $ | 70,045 | $ | 304,584 | $ | 28,581 | $ | 333,165 |
Three Months Ended March 31, | |||||
2017 | 2016 | ||||
Weighted-average number of shares outstanding: | |||||
Common stock | 20,827,993 | 20,702,103 | |||
Common stock equivalents-stock options, grants | 47,052 | 71,364 | |||
Diluted shares outstanding | 20,875,045 | 20,773,467 |
($ in thousands) | March 31, 2017 | December 31, 2016 | ||||||||||||||
Marketable Securities: | Fair Value Hierarchy | Cost | Fair Value | Cost | Fair Value | |||||||||||
Certificates of deposit | ||||||||||||||||
with unrecognized losses for less than 12 months | $ | 1,726 | $ | 1,722 | $ | 1,868 | $ | 1,863 | ||||||||
with unrecognized losses for more than 12 months | — | — | — | — | ||||||||||||
with unrecognized gains | 3,221 | 3,229 | 3,320 | 3,329 | ||||||||||||
Total Certificates of deposit | Level 1 | 4,947 | 4,951 | 5,188 | 5,192 | |||||||||||
US Treasury and agency notes | ||||||||||||||||
with unrecognized losses for less than 12 months | 1,047 | 1,045 | 947 | 946 | ||||||||||||
with unrecognized losses for more than 12 months | — | — | — | — | ||||||||||||
with unrecognized gains | 761 | 762 | 857 | 859 | ||||||||||||
Total US Treasury and agency notes | Level 2 | 1,808 | 1,807 | 1,804 | 1,805 | |||||||||||
Corporate notes | ||||||||||||||||
with unrecognized losses for less than 12 months | 9,994 | 9,954 | 11,658 | 11,592 | ||||||||||||
with unrecognized losses for more than 12 months | 977 | 972 | 1,053 | 1,042 | ||||||||||||
with unrecognized gains | 2,964 | 2,969 | 3,431 | 3,435 | ||||||||||||
Total Corporate notes | Level 2 | 13,935 | 13,895 | 16,142 | 16,069 | |||||||||||
Municipal notes | ||||||||||||||||
with unrecognized losses for less than 12 months | 2,016 | 1,992 | 2,556 | 2,526 | ||||||||||||
with unrecognized losses for more than 12 months | 270 | 268 | 271 | 269 | ||||||||||||
with unrecognized gains | 1,296 | 1,299 | 812 | 814 | ||||||||||||
Total Municipal notes | Level 2 | 3,582 | 3,559 | 3,639 | 3,609 | |||||||||||
$ | 24,272 | $ | 24,212 | $ | 26,773 | $ | 26,675 |
March 31, 2017 | |||||||||||||||||||
($ in thousands) | 2017 | 2018 | 2019 | 2020 | Total | ||||||||||||||
Certificates of deposit | $ | 294 | $ | 4,306 | $ | 324 | $ | — | $ | 4,924 | |||||||||
U.S. Treasury and agency notes | 1,234 | 444 | 142 | — | 1,820 | ||||||||||||||
Corporate notes | 2,051 | 7,073 | 4,421 | — | 13,545 | ||||||||||||||
Municipal notes | 735 | 1,688 | 1,125 | — | 3,548 | ||||||||||||||
$ | 4,314 | $ | 13,511 | $ | 6,012 | $ | — | $ | 23,837 |
December 31, 2016 | |||||||||||||||||||
($ in thousands) | 2017 | 2018 | 2019 | 2020 | Total | ||||||||||||||
Certificates of deposit | $ | 531 | $ | 4,306 | $ | 324 | — | $ | 5,161 | ||||||||||
U.S. Treasury and agency notes | 1,234 | 444 | 142 | — | 1,820 | ||||||||||||||
Corporate notes | 4,316 | 7,133 | 4,232 | — | 15,681 | ||||||||||||||
Municipal notes | 840 | 1,688 | 1,075 | — | 3,603 | ||||||||||||||
$ | 6,921 | $ | 13,571 | $ | 5,773 | $ | — | $ | 26,265 |
($ in thousands) | March 31, 2017 | December 31, 2016 | |||||
Real estate development | |||||||
Mountain Village | $ | 127,116 | $ | 126,096 | |||
Centennial | 90,149 | 89,381 | |||||
Grapevine | 25,093 | 23,917 | |||||
Tejon Ranch Commerce Center | 9,892 | 8,871 | |||||
Real estate development | 252,250 | 248,265 | |||||
Real estate and improvements - held for lease | |||||||
Tejon Ranch Commerce Center | 20,288 | 21,643 | |||||
Real estate and improvements - held for lease | 20,288 | 21,643 | |||||
Less accumulated depreciation | (1,706 | ) | (1,617 | ) | |||
Real estate and improvements - held for lease, net | $ | 18,582 | $ | 20,026 |
March 31, 2017 | December 31, 2016 | ||||||
Banked water and water for future delivery | $ | 5,025 | $ | 4,779 | |||
Transferable water | 13,105 | 9,075 | |||||
Total tangible water | $ | 18,130 | $ | 13,854 |
March 31, 2017 | December 31, 2016 | ||||||||||||||
Costs | Accumulated Depreciation | Costs | Accumulated Depreciation | ||||||||||||
Dudley Ridge water rights | $ | 12,203 | $ | (3,206 | ) | $ | 12,203 | $ | (2,895 | ) | |||||
Nickel water rights | 18,740 | (2,195 | ) | 18,740 | (2,218 | ) | |||||||||
Tulare Lake Basin water rights | 5,857 | (1,827 | ) | 5,857 | (1,777 | ) | |||||||||
$ | 36,800 | $ | (7,228 | ) | $ | 36,800 | $ | (6,890 | ) | ||||||
Net intangible water assets | 29,572 | 29,910 | |||||||||||||
Total tangible water assets | 18,130 | 13,854 | |||||||||||||
Net investments in water assets | $ | 47,702 | $ | 43,764 |
(in acre feet, unaudited) | March 31, 2017 | December 31, 2016 | |||
Tangible water assets | |||||
Banked water and water for future delivery | |||||
AVEK water bank | 13,033 | 13,033 | |||
Company water bank | 22,117 | 17,287 | |||
AVEK water for future delivery | 5,316 | 2,362 | |||
Transferable water* | 13,049 | 9,062 | |||
Total tangible water assets | 53,515 | 41,744 | |||
Intangible water assets | |||||
Water contracts | 10,137 | 10,137 | |||
WRMWSD - Contract[s] with Company | 15,547 | 15,547 | |||
TCWD - Contract[s] with Company | 5,278 | 5,749 | |||
TCWD - Banked water contracted with Company | 36,557 | 33,390 | |||
Total intangible water assets | 67,519 | 64,823 | |||
Total water sources in acre feet | 121,034 | 106,567 | |||
* Of the 13,049 acre feet of transferable water, 7,295 acre feet of transferable water with AVEK that is used by the Company or returned by AVEK to the Company will be returned at a 1.5 to 1 factor giving the Company use of a total of 10,943 (7,295 x 1.5) acre feet as of March 31, 2017. |
($ in thousands) | March 31, 2017 | December 31, 2016 | |||||
Accrued vacation | $ | 892 | $ | 901 | |||
Accrued paid personal leave | 584 | 590 | |||||
Accrued bonus | 687 | 1,346 | |||||
Property tax payable | 998 | — | |||||
Other | 284 | 351 | |||||
$ | 3,445 | $ | 3,188 |
($ in thousands) | March 31, 2017 | December 31, 2016 | |||||
Revolving line of credit | $ | 16,000 | $ | 7,700 | |||
Notes payable | 72,494 | 73,400 | |||||
Other borrowings | 435 | 467 | |||||
Total short-term and long-term debt | 88,929 | 81,567 | |||||
Less: line-of-credit and current maturities of long-term debt | (19,868 | ) | (11,553 | ) | |||
Less: deferred loan costs | (156 | ) | (161 | ) | |||
Long-term debt, less current portion | $ | 68,905 | $ | 69,853 |
($ in thousands) | March 31, 2017 | December 31, 2016 | |||||
Pension liability (Note 13) | $ | 3,017 | $ | 2,931 | |||
Distributions in excess of investment in unconsolidated joint venture (Note 15) | 224 | — | |||||
Interest rate swap liability (Note 10) | 1,491 | 1,865 | |||||
Supplemental executive retirement plan liability (Note 13) | 8,073 | 8,015 | |||||
Other | 184 | 223 | |||||
Total | $ | 12,989 | $ | 13,034 |
Performance Share Grants with Performance Conditions | ||
Below threshold performance | — | |
Threshold performance | 180,345 | |
Target performance | 456,853 | |
Maximum performance | 699,996 |
March 31, 2017 | December 31, 2016 | ||||
Stock grants outstanding beginning of the year at target achievement | 386,171 | 272,353 | |||
New stock grants/additional shares due to maximum achievement | 295,243 | 287,091 | |||
Vested grants | (50,024 | ) | (172,749 | ) | |
Expired/forfeited grants | (11,099 | ) | (524 | ) | |
Stock grants outstanding | 620,291 | 386,171 |
($ in thousands) | Three Months Ended March 31, | ||||||
Employee Plan: | 2017 | 2016 | |||||
Expensed | $ | 630 | $ | 794 | |||
Capitalized | 65 | 56 | |||||
695 | 850 | ||||||
NDSI Plan - Expensed | 181 | 179 | |||||
Total Stock Compensation Costs | $ | 876 | $ | 1,029 |
Effective Date | Maturity Date | Fair Value Hierarchy | Weighted Average Interest Rate | Fair Value | Notional Amount | |||||
October 15, 2014 | October 5, 2024 | Level 2 | 4.11% | $(1,490) | $68,598 |
Three Months Ended March 31, | |||||||
($ in thousands) | 2017 | 2016 | |||||
Cost components: | |||||||
Service cost-benefits earned during the period | $ | (61 | ) | $ | (56 | ) | |
Interest cost on projected benefit obligation | (104 | ) | (102 | ) | |||
Expected return on plan assets | 129 | 129 | |||||
Net amortization and deferral | (50 | ) | (46 | ) | |||
Total net periodic pension cost | $ | (86 | ) | $ | (75 | ) |
Three Months Ended March 31, | |||||||
($ in thousands) | 2017 | 2016 | |||||
Cost components: | |||||||
Interest cost on projected benefit obligation | $ | (76 | ) | $ | (81 | ) | |
Net amortization and deferral | (93 | ) | (86 | ) | |||
Total net periodic pension cost | $ | (169 | ) | $ | (167 | ) |
Three Months Ended March 31, | |||||||
($ in thousands) | 2017 | 2016 | |||||
Pastoria Energy Facility Lease | $ | 844 | $ | 871 | |||
Tejon Ranch Commerce Center | 612 | 493 | |||||
Commercial leases | 302 | 401 | |||||
Communication leases | 207 | 196 | |||||
Landscaping and other | 224 | 193 | |||||
Commercial/industrial revenues | 2,189 | 2,154 | |||||
Equity in earnings from unconsolidated joint ventures | 228 | 1,455 | |||||
Total commercial/industrial revenues and equity in earnings from unconsolidated joint ventures | 2,417 | 3,609 | |||||
Net operating income from commercial/industrial and unconsolidated joint ventures | $ | 674 | $ | 1,930 |
Three Months Ended March 31, | |||||||
($ in thousands) | 2017 | 2016 | |||||
Oil and gas | $ | 376 | $ | 386 | |||
Water sales | 1,108 | 7,791 | |||||
Rock aggregate | 180 | 202 | |||||
Cement | 278 | 260 | |||||
Land lease for oil exploration | 25 | 101 | |||||
Reimbursable costs | 34 | — | |||||
Total mineral resources revenues | 2,001 | 8,740 | |||||
Net operating income from mineral resources | $ | 677 | $ | 4,047 |
Three Months Ended March 31, | |||||||
($ in thousands) | 2017 | 2016 | |||||
Almonds | $ | — | $ | 985 | |||
Pistachios | 256 | 199 | |||||
Hay and other | 175 | 37 | |||||
Total farming revenues | 431 | 1,221 | |||||
Net operating loss from farming | $ | (892 | ) | $ | (285 | ) |
Three Months Ended March 31, | |||||||
($ in thousands) | 2017 | 2016 | |||||
Game management | $ | 301 | $ | 310 | |||
Grazing | 424 | 250 | |||||
Filming and other | 356 | 278 | |||||
Total ranch operations revenues | 1,081 | 838 | |||||
Net operating loss from ranch operations | $ | (412 | ) | $ | (509 | ) |
• | Petro Travel Plaza Holdings LLC – TA/Petro is an unconsolidated joint venture with TravelCenters of America, LLC for the development and management of travel plazas and convenience stores. The Company has 50% voting rights and shares 60% of profit and losses in this joint venture. It houses multiple commercial eating establishments as well as diesel and gasoline operations in TRCC. The Company does not control the investment due to its having only 50% voting rights, and because our partner in the joint venture is the managing partner and performs all of the day-to-day operations and has significant decision making authority regarding key business components such as fuel inventory and pricing at the facility. At March 31, 2017, the Company had an equity investment balance of $19,273,000 in this joint venture. |
• | Majestic Realty Co. – Majestic Realty Co., or Majestic, is a privately-held developer and owner of master planned business parks in the United States. The Company partnered with Majestic to form two 50/50 joint ventures to acquire, develop, manage, and operate industrial real estate at TRCC. The partners have equal voting rights and equally share in the profit and loss of the joint venture. At March 31, 2017, the Company's investment in these joint ventures was $1,008,000, which includes our outside basis. |
◦ | In August 2016, we partnered with Majestic to form TRC-MRC 2, LLC to acquire, lease, and maintain a fully occupied warehouse at TRCC-West. The partnership acquired the 651,909 square foot building for $24,773,000 and was largely financed through a $21,080,000 promissory note guaranteed by both partners. The note matures in September 2020 and currently has an outstanding principal balance of $21,080,000. |
◦ | In September 2016, TRC-MRC 1, LLC was formed to develop and operate an approximately 480,480 square foot industrial building at TRCC-East. The joint venture is currently constructing the industrial building and is expected to be completed by late 2017. During the first quarter of 2017, we received distributions of $1,952,000 representing excess distributions of $224,000. In accordance with the applicable accounting guidance, these excess distributions are reclassified to the liabilities section of our consolidated balance sheet. We will continue to record our equity in the net income as a debit to the investment account, and if it becomes positive, it will again be shown as an asset on our consolidated balance sheet. If it becomes obvious that any excess distribution may not be returned (upon joint venture liquidation or otherwise), we will recognize any balance classified as a liability as income immediately. |
• | Rockefeller Joint Ventures – The Company has three joint ventures with Rockefeller Group Development Corporation or Rockefeller. At March 31, 2017, the Company’s combined equity investment balance in these three joint ventures was $13,411,000. |
◦ | Two joint ventures are for the development of buildings on approximately 91 acres and are part of an agreement for the potential development of up to 500 acres of land in TRCC including pursuing Foreign Trade Zone, or FTZ, designation and development of the property within the FTZ for warehouse distribution and light manufacturing. The Company owns a 50% interest in each of the joint ventures. Currently the Five West Parcel LLC joint venture owns and leases a 606,000 square foot building to Dollar General which has now been extended to April 2022, and includes an option to extend for an additional three years. For operating revenue, please see the following table. The Five West Parcel joint venture currently has an outstanding term loan with a balance of $10,116,000 that matures on May 5, 2022. The Company and Rockefeller guarantee the performance of the debt. The second of these joint ventures, 18-19 West LLC, was formed in August 2009 through the contribution of 61.5 acres of land by the Company, which is being held for future development. Both of these joint ventures are being accounted for under the equity method due to both members having significant participating rights in the management of the ventures. |
◦ | The third joint venture is the TRCC/Rock Outlet Center LLC joint venture that was formed during the second quarter of 2013 to develop, own, and manage a net leasable 326,000 square foot outlet center on land at TRCC-East. The cost of the outlet center was approximately $87,000,000 and was funded through a construction loan for up to 60% of the costs and the remaining 40% was through equity contributions from the two members. The Company controls 50% of the voting interests of TRCC/Rock Outlet Center LLC, thus it does not control by voting interest alone. The Company is the named managing member, as such we considered the presumption that a managing member controls the limited liability company. The managing member's responsibilities relate to the routine day-to-day activities of TRCC/Rock Outlet Center LLC. However, all operating decisions during development and operations, including the setting and monitoring of the budget, leasing, marketing, financing and selection of the contractor for any of the project's construction, are jointly made by both members of the joint venture. Therefore, the Company concluded that both members have significant participating rights that are sufficient to overcome the presumption of the Company controlling the joint venture through it being named the managing member. Therefore, the investment in TRCC/Rock Outlet Center LLC is being accounted for under the equity method. The TRCC/Rock Outlet Center LLC joint venture is separate from the aforementioned agreement to potentially develop up to 500 acres of land in TRCC. During the fourth quarter of 2013, the TRCC/Rock Outlet Center LLC joint venture entered into a construction line of credit agreement with a financial institution for $52,000,000 that, as of March 31, 2017, had an outstanding balance of $50,227,000. The Company and Rockefeller guarantee the performance of the debt. |
• | Centennial Founders, LLC – Centennial Founders, LLC, or CFL, is a joint venture with TRI Pointe Homes, Lewis Investment Company, and CalAtlantic that was organized to pursue the entitlement and development of land that the Company owns in Los Angeles County. Based on the Second Amended and Restated Limited Liability Company Agreement of Centennial Founders, LLC and the change in control and funding that resulted from the amended agreement, CFL qualified as a VIE, beginning in the third quarter of 2009 and the Company was determined to be the primary beneficiary. As a result, CFL has been consolidated into our financial statements beginning in that quarter. Our partners retained a noncontrolling interest in the joint venture. On November 30, 2016, CFL and Lewis entered a Redemption and Withdrawal Agreement (the Agreement), whereby Lewis irrevocably and unconditionally withdrew as a member of CFL, CFL redeemed Lewis' entire interest for no consideration. At March 31, 2017, the Company owned 85.95% of CFL. |
Joint Venture | TRC | ||||||||||||||||||||||
Revenues | Earnings(Loss) | Equity in Earnings(Loss) | |||||||||||||||||||||
($ in thousands) | 2017 | 2016 | 2017 | 2016 | 2017 | 2016 | |||||||||||||||||
Petro Travel Plaza Holdings, LLC | $ | 26,407 | $ | 23,954 | $ | 1,502 | $ | 2,291 | $ | 901 | $ | 1,375 | |||||||||||
Five West Parcel, LLC | 716 | 790 | 269 | 328 | 134 | 164 | |||||||||||||||||
18-19 West, LLC | 3 | 2 | (24 | ) | (43 | ) | (13 | ) | (22 | ) | |||||||||||||
TRCC/Rock Outlet Center, LLC1 | 2,549 | 2,300 | (1,009 | ) | (124 | ) | (505 | ) | (62 | ) | |||||||||||||
TRC-MRC 1, LLC | — | — | (2 | ) | — | (1 | ) | — | |||||||||||||||
TRC-MRC 2, LLC2 | 935 | — | (575 | ) | — | (288 | ) | — | |||||||||||||||
$ | 30,610 | $ | 27,046 | $ | 161 | $ | 2,452 | $ | 228 | $ | 1,455 | ||||||||||||
Centennial Founders, LLC | $ | 1 | $ | 36 | $ | (110 | ) | $ | (57 | ) | Consolidated | ||||||||||||
(1) Revenues for TRCC/Rock Outlet Center are presented net of non-cash tenant allowance amortization of $0.5 million and $0.5 million as of March 31, 2017 and 2016, respectively. | |||||||||||||||||||||||
(2)Earnings for TRC-MRC 2, LLC include non-cash amortization of purchase accounting adjustments related to in-place leases of $1.0 million that will be amortized over the remaining lease period. |
March 31, 2017 | December 31, 2016 | ||||||||||||||||||||||||
Joint Venture | TRC | Joint Venture | TRC | ||||||||||||||||||||||
($ in thousands) | Assets | Debt | Equity | Equity | Assets | Debt | Equity | Equity | |||||||||||||||||
Petro Travel Plaza Holdings, LLC | $ | 69,921 | $ | (15,276 | ) | $ | 52,789 | $ | 19,273 | $ | 68,652 | $ | (15,275 | ) | $ | 51,287 | $ | 18,372 | |||||||
Five West Parcel, LLC | 16,641 | (10,116 | ) | 6,305 | 2,968 | 16,614 | (10,251 | ) | 6,043 | 2,837 | |||||||||||||||
18-19 West, LLC | 4,623 | — | 4,617 | 1,749 | 4,623 | — | 4,621 | 1,741 | |||||||||||||||||
TRCC/Rock Outlet Center, LLC | 84,903 | (50,227 | ) | 33,514 | 8,694 | 86,056 | (50,712 | ) | 34,523 | 9,198 | |||||||||||||||
TRC-MRC 1, LLC | 5,972 | (269 | ) | 4,102 | — | 199 | — | 199 | 224 | ||||||||||||||||
TRC-MRC 2, LLC | 23,218 | (21,080 | ) | 1,838 | 1,008 | 23,965 | (21,080 | ) | 2,592 | 1,431 | |||||||||||||||
Total | $ | 205,278 | $ | (96,968 | ) | $ | 103,165 | $ | 33,692 | $ | 200,109 | $ | (97,318 | ) | $ | 99,265 | $ | 33,803 | |||||||
Centennial Founders, LLC | $ | 86,568 | $ | — | $ | 86,071 | *** | $ | 86,099 | $ | — | $ | 85,281 | *** | |||||||||||
*** Centennial Founders, LLC is consolidated within the Company's financial statements |
• | MV encompasses 5,082 acres for a mixed use development to include housing, retail, and commercial industrial components. MV is entitled for 3,450 homes, 160,000 square feet of commercial development, 750 hotel keys, and more than 21,335 acres of open space. |
• | The Centennial development is a large master-planned community development encompassing approximately 12,323 acres of our land within Los Angeles County. Upon completion of Centennial, it is estimated that the community will include approximately 19,333 homes, and 10.1 million square feet of commercial development. |
• | Grapevine is an approximately 8,010-acre potential development area located on the San Joaquin Valley floor area of our lands, adjacent to TRCC. Grapevine has received approval for 12,000 to 14,000 homes, 5.1 million square feet for commercial development, and more than 3,367 acres of open space and parks. |
• | The Company has deferred the sale of carry forward almond inventory until pricing becomes more favorable, decreasing almond revenues by $985,000 when compared to the same period in 2016. |
• | 2016 pistachio carryover crop revenues increased $58,000. We sold 73,000 and 800 pounds as of March 31, 2017 and 2016, respectively. |
• | There was a $474,000 decrease in our share of earnings from our TA/Petro joint venture. The decline is driven by reduced margins and sales volume for fuel as a result of higher fuel inventory costs. Also contributing to the decline, was the inclement winter weather experienced during the first quarter that reduced traffic volume. Comparatively, diesel and gasoline volumes decreased 256,000 and 65,000 gallons, respectively. |
• | There was a $443,000 decrease in our share of earnings from our TRCC/Rock Outlet joint venture. The decrease is attributable to write-off of tenant allowances and other leasing costs associated with four tenant lease terminations. The departing tenants have struggled nationally in recent years as a result of the retail slump and do not represent the overall performance of The Outlets at Tejon. Operationally, the outlet is continually identifying new and desirable tenants to better serve its target demographic. During the first quarter, the outlets executed a new lease with Express, a nationally recognized brand focusing on men's and women's fashion. Express will replace one of the departing tenants and will occupy a space approximating 7,828 square feet. The expected grand opening is Summer 2017. Please refer to "Non-GAAP Measures" for further financial discussion on our joint ventures. |
• | TRC-MRC 2, a joint venture which was formed during the third quarter of 2016, had a $288,000 loss driven by non-cash accounting adjustments. Please refer to "Non-GAAP Measures" for further financial discussion on our joint ventures. |
(in thousands) | 2017 | 2016 | |||||
Operating activities | $ | (570 | ) | $ | (1,031 | ) | |
Investing activities | $ | (4,040 | ) | $ | (1,219 | ) | |
Financing activities | $ | 6,848 | $ | 1,627 |
Payments Due by Period | |||||||||||||||||||
(In thousands) | Total | One Year or Less | Years 2-3 | Years 4-5 | Thereafter | ||||||||||||||
CONTRACTUAL OBLIGATIONS: | |||||||||||||||||||
Estimated water payments | $ | 265,705 | $ | 2,810 | $ | 16,917 | $ | 17,527 | $ | 228,451 | |||||||||
Long-term debt | 72,929 | 3,868 | 8,201 | 8,638 | 52,222 | ||||||||||||||
Interest on long-term debt | 18,015 | 2,916 | 5,357 | 4,676 | 5,066 | ||||||||||||||
Revolving line of credit borrowings | 16,000 | 16,000 | — | — | — | ||||||||||||||
Cash contract commitments | 4,619 | 2,410 | 1,138 | — | 1,071 | ||||||||||||||
Defined Benefit Plan | 3,207 | 136 | 424 | 526 | 2,121 | ||||||||||||||
SERP | 4,897 | 377 | 991 | 970 | 2,559 | ||||||||||||||
Tejon Ranch Conservancy | 3,800 | 600 | 1,600 | 1,600 | — | ||||||||||||||
Financing fees and interest | 163 | 163 | — | — | — | ||||||||||||||
Total contractual obligations | $ | 389,335 | $ | 29,280 | $ | 34,628 | $ | 33,937 | $ | 291,490 |
Amount of Commitment Expiration Per Period | ||||||||||||||||||||
($ in thousands) | Total | < 1 year | 1 -3 Years | 4 -5 Years | After 5 Years | |||||||||||||||
OTHER COMMERCIAL COMMITMENTS: | ||||||||||||||||||||
Standby letter of credit | $ | 4,921 | $ | 4,921 | $ | — | $ | — | $ | — | ||||||||||
Total other commercial commitments | $ | 4,921 | $ | 4,921 | $ | — | $ | — | $ | — |
Three Months Ended March 31, | |||||||
($ in thousands) | 2017 | 2016 | |||||
Net income | $ | (1,913 | ) | $ | 1,195 | ||
Net income (loss) attributable to non-controlling interest | (11 | ) | (14 | ) | |||
Interest, net | |||||||
Consolidated | (103 | ) | (118 | ) | |||
Our share of interest expense from unconsolidated joint ventures | 404 | 299 | |||||
Total interest, net | 301 | 181 | |||||
Income taxes | (1,332 | ) | 612 | ||||
Depreciation and amortization: | |||||||
Consolidated | 1,150 | 1,366 | |||||
Our share of depreciation and amortization from unconsolidated joint ventures | 1,316 | 669 | |||||
Total deprecation and amortization | 2,466 | 2,035 | |||||
EBITDA | (467 | ) | 4,037 | ||||
Stock compensation expense | 811 | 973 | |||||
Adjusted EBITDA | $ | 344 | $ | 5,010 |
Three Months Ended March 31, | |||||||
($ in thousands) | 2017 | 2016 | |||||
Net income of unconsolidated joint ventures | $ | 161 | $ | 2,452 | |||
Interest expense of unconsolidated joint ventures | 786 | 573 | |||||
Operating income of unconsolidated joint ventures | 947 | 3,025 | |||||
Depreciation and amortization of unconsolidated joint ventures | 2,521 | 1,252 | |||||
Net operating income of unconsolidated joint ventures | $ | 3,468 | $ | 4,277 |
2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | Total | Fair Value | ||||||||
Assets: | |||||||||||||||
Marketable securities | $4,348 | $13,688 | $6,236 | — | — | — | 24,272 | $24,212 | |||||||
Weighted average interest rate | 1.31% | 1.59% | 1.73% | — | — | — | 1.58% | ||||||||
Liabilities: | |||||||||||||||
Revolving line of credit | $16,000 | — | — | — | — | — | $16,000 | $16,000 | |||||||
Weighted average interest rate | 2.48% | — | — | — | — | — | 2.48% | ||||||||
Long-term debt ($4.75M note) | $200 | $277 | $289 | $302 | $315 | $2,512 | $3,895 | $3,895 | |||||||
Weighted average interest rate | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | ||||||||
Long-term debt ($70.0M note) | $2,552 | $3,563 | $3,715 | $3,881 | $4,051 | $50,836 | $68,598 | $68,598 | |||||||
Weighted average interest rate | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | ||||||||
Long-term debt (other) | $164 | $218 | $53 | — | — | — | $435 | $435 | |||||||
Weighted average interest rate | 3.35% | 3.35% | 3.35% | — | — | — | 3.35% |
2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | Total | Fair Value | ||||||||
Assets: | |||||||||||||||
Marketable securities | $6,979 | $13,787 | $6,006 | — | — | — | $26,772 | $26,675 | |||||||
Weighted average interest rate | 1.32% | 1.59% | 1.73% | — | — | — | 1.55% | ||||||||
Liabilities: | |||||||||||||||
Revolving line of credit | $7,700 | — | — | — | — | — | $7,700 | $7,700 | |||||||
Weighted average interest rate | 2.26% | — | — | — | — | — | 2.26 | ||||||||
Long-term debt ($4.75M note) | $266 | $277 | $289 | $302 | $315 | $2,512 | $3,961 | $3,961 | |||||||
Weighted average interest rate | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | 4.25% | ||||||||
Long-term debt ($70.0M note) | $3,393 | $3,563 | $3,715 | $3,881 | $4,051 | $50,836 | $69,439 | $69,439 | |||||||
Weighted average interest rate | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | 4.11% | ||||||||
Long-term debt (other) | $195 | $218 | $54 | — | — | — | $467 | $467 | |||||||
Weighted average interest rate | 3.35% | 3.35% | 3.35% | — | — | — | 3.35% |
(a) | Evaluation of Disclosure Controls and Procedures |
(b) | Changes in Internal Control over Financial Reporting |
Item 6. Exhibits: | |||||
3.1 | Restated Certificate of Incorporation | FN 1 | |||
3.2 | By-Laws | FN 1 | |||
4.1 | Form of First Additional Investment Right | FN 2 | |||
4.2 | Form of Second Additional Investment Right | FN 3 | |||
4.3 | Registration and Reimbursement Agreement | FN 10 | |||
10.1 | Water Service Contract with Wheeler Ridge-Maricopa Water Storage District (without exhibits), amendments originally filed under Item 11 to Registrant's Annual Report on Form 10-K | FN 4 | |||
10.7 | *Severance Agreement | FN 5 | |||
10.8 | *Director Compensation Plan | FN 5 | |||
10.9 | *Amended and Restated Non-Employee Director Stock Incentive Plan | FN 13 |
10.9(1) | *Stock Option Agreement Pursuant to the Non-Employee Director Stock Incentive Plan | FN 5 | |||
10.10 | *Amended and Restated 1998 Stock Incentive Plan | FN 14 | |||
10.10(1) | *Stock Option Agreement Pursuant to the 1998 Stock Incentive Plan | FN 5 | |||
10.12 | Lease Agreement with Pastoria Energy Facility L.L.C. | FN 6 | |||
10.15 | Form of Securities Purchase Agreement | FN 7 | |||
10.16 | Form of Registration Rights Agreement | FN 8 | |||
10.17 | *2004 Stock Incentive Program | FN 9 | |||
10.18 | *Form of Restricted Stock Agreement for Directors | FN 9 | |||
10.19 | *Form of Restricted Stock Unit Agreement | FN 9 | |||
10.23 | Tejon Mountain Village LLC Operating Agreement | FN 11 | |||
10.24 | Tejon Ranch Conservation and Land Use Agreement | FN 12 | |||
10.25 | Second Amended and Restated Limited Liability Agreement of Centennial Founders, LLC | FN 15 | |||
10.26 | *Executive Employment Agreement - Allen E. Lyda | FN 16 | |||
10.27 | Limited Liability Company Agreement of TRCC/Rock Outlet Center LLC | FN 17 | |||
10.28 | Warrant Agreement | FN 18 | |||
10.29 | Amendments to Limited Liability Company Agreement of Tejon Mountain Village LLC | FN 19 | |||
10.30 | Membership Interest Purchase Agreement - TMV LLC | FN 20 | |||
10.31 | Amended and Restated Credit Agreement | FN 21 | |||
10.32 | Term Note | FN 21 | |||
10.33 | Revolving Line of Credit | FN 21 | |||
10.34 | Amendments to Lease Agreement with Pastoria Energy Facility L.L.C. | FN 22 | |||
10.35 | Water Supply Agreement with Pastoria Energy Facility L.L.C. | FN 23 | |||
10.36 | *Separation Agreement - Gregory J. Tobias | FN 24 | |||
10.37 | Limited Liability Agreement of TRC-MRC 2, LLC | FN 25 | |||
10.38 | Limited Liability Agreement of TRC-MRC 1, LLC | FN 26 | |||
10.39 | Centennial Redemption and Withdrawal Agreement | FN 27 | |||
10.40 | First Amendment to Second Amended and Restated Limited Liability Company Agreement of Centennial Founders, LLC | FN 28 | |||
10.41 | Second Amendment to Second Amended and Restated Limited Liability Company Agreement of Centennial Founders, LLC | FN 29 | |||
31.1 | Certification as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith | |||
31.2 | Certification as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | Filed herewith | |||
32 | Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | Filed herewith | |||
101.INS | XBRL Instance Document. | Filed herewith | |||
101.SCH | XBRL Taxonomy Extension Schema Document. | Filed herewith | |||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. | Filed herewith | |||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. | Filed herewith | |||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. | Filed herewith | |||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. | Filed herewith |
* | Management contract, compensatory plan or arrangement. |
FN 1 | This document, filed with the Securities and Exchange Commission in Washington D.C. (file number 1-7183) under Item 14 to our Annual Report on Form 10-K for year ended December 31, 1987, is incorporated herein by reference. | |
FN 2 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-7183) as Exhibit 4.3 to our Current Report on Form 8-K filed on May 7, 2004, is incorporated herein by reference. | |
FN 3 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number I-7183) as Exhibit 4.4 to our Current Report on Form 8-K filed on May 7, 2004, is incorporated herein by reference. | |
FN 4 | This document, filed with the Securities and Exchange Commission in Washington D.C. (file number 1-7183) under Item 14 to our Annual Report on Form 10-K for year ended December 31, 1994, is incorporated herein by reference. | |
FN 5 | This document, filed with the Securities and Exchange Commission in Washington D.C. (file number 1-7183) under Item 14 to our Annual Report on Form 10-K, for the period ending December 31, 1997, is incorporated herein by reference. | |
FN 6 | This document filed with the Securities and Exchange Commission in Washington D.C. (file number 1-7183) under Item 14 to our Annual Report on Form 10-K for the year ended December 31, 2001, is incorporated herein by reference. | |
FN 7 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-7183) as Exhibit 4.1 to our Current Report on Form 8-K filed on May 7, 2004, is incorporated herein by reference. | |
FN 8 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-7183) as Exhibit 4.2 to our Current Report on Form 8-K filed on May 7, 2004, is incorporated herein by reference. | |
FN 9 | This document, filed with the Securities and Exchange Commission in Washington D.C. (file number 1-7183) under Item 15 to our Annual Report on Form 10-K for the year ended December 31, 2004, is incorporated herein by reference. | |
FN 10 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-7183) as Exhibit 4.1 to our Current Report on Form 8-K filed on December 20, 2005, is incorporated herein by reference. | |
FN 11 | This document, filed with the Securities and Exchange Commission in Washington D.C. (file number 1-7183) as Exhibit 10.24 to our Current Report on Form 8-K filed on May 24, 2006, is incorporated herein by reference. | |
FN 12 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-7183) as Exhibit 10.28 to our Current Report on Form 8-K filed on June 23, 2008, is incorporated herein by reference. | |
FN 13 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-7183) as Exhibit 10.9 to our Annual Report on form 10-K for the year ended December 31, 2008, is incorporated herein by reference. | |
FN 14 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-7183) as Exhibit 10.10 to our Annual Report on form 10-K for the year ended December 31, 2008, is incorporated herein by reference | |
FN 15 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-7183) under Item 6 to our Quarterly Report on Form 10-Q for the period ending June 30, 2009, is incorporated herein by reference. | |
FN 16 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-7183) under Item 6 to our Quarterly Report on Form 10-Q for the period ending March 31, 2013, is incorporated herein by reference. |
FN 17 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-7183) as Exhibit 10.27 to our Current Report on Form 8-K filed on June 4, 2013, is incorporated herein by reference. | |
FN 18 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-7183) as Exhibit 10.1 to our Current Report on Form 8-K filed on August 8, 2013, is incorporated herein by reference. | |
FN 19 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-7183) as Exhibit 10.29 to our Amended Annual Report on Form 10-K/A for the year ended December 31, 2013, is incorporated herein by reference. | |
FN 20 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-7183) as Exhibit 10.30 to our Current Report on Form 8-K filed on July 16, 2014, is incorporated herein by reference. | |
FN 21 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-7183) as Exhibits 10.31-10.33 to our Current Report on Form 8-K filed on October 17, 2014, is incorporated herein by reference. | |
FN 22 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-7183) as Exhibit 10.34 to our Annual Report on Form 10-K for the year ended December 31, 2014, is incorporated herein by reference. | |
FN 23 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-7183) as Exhibit 10.35 to our Quarterly Report on Form 10-Q for the period ending June 30, 2015, is incorporated herein by reference. | |
FN 24 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-7183) as Exhibit 10.36 to our Quarterly Report on Form 10-Q for the period ending September 30, 2015, is incorporated herein by reference. | |
FN 25 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-7183) as Exhibit 10.37 to our Quarterly Report on Form 10-Q for the period ending June 30, 2016, is incorporated herein by reference. | |
FN 26 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-7183) as Exhibit 10.38 to our Quarterly Report on Form 10-Q for the period ending September 30, 2016, is incorporated herein by reference. | |
FN 27 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-7183) as Exhibit 10.39 to our Annual Report on Form 10-K for the year ended December 31, 2016, is incorporated herein by reference. | |
FN 28 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-7183) as Exhibit 10.40 to our Annual Report on Form 10-K for the year ended December 31, 2016, is incorporated herein by reference. | |
FN 29 | This document, filed with the Securities and Exchange Commission in Washington, D.C. (file number 1-7183) as Exhibit 10.41 to our Annual Report on Form 10-K for the year ended December 31, 2016, is incorporated herein by reference. |
TEJON RANCH CO. |
(The Company) |
/s/ Allen E. Lyda |
Allen E. Lyda |
Executive Vice President, Chief Financial Officer and Corporate Treasurer |
/s/ Robert D. Velasquez |
Robert D. Velasquez |
Vice President of Finance, Chief Accounting Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Tejon Ranch Co.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Dated: | 5/8/2017 | /s/ Gregory S. Bielli | |
Gregory S. Bielli | |||
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Tejon Ranch Co.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15(d)-15(f)) for the registrant and have: |
a. | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b. | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c. | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d. | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
a. | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b. | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Dated: | 5/8/2017 | /s/ Allen E. Lyda | |
Allen E. Lyda | |||
Executive Vice President, Chief Financial Officer and Corporate Treasurer |
• | The Quarterly Report of the Company on Form 10-Q for the period ended March 31, 2017 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and |
• | The information contained in such report fairly presents, in all material respects, the financial condition and results of operation of the Company. |
Dated: | 5/8/2017 | |
/s/ Gregory S. Bielli | ||
Gregory S. Bielli | ||
President and Chief Executive Officer | ||
/s/ Allen E. Lyda | ||
Allen E. Lyda | ||
Executive Vice President, Chief Financial Officer and Corporate Treasurer |
Document and Entity Information - shares |
3 Months Ended | |
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Mar. 31, 2017 |
Apr. 30, 2017 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | TEJON RANCH CO | |
Entity Central Index Key | 0000096869 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --03-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock Shares Outstanding | 20,854,072 | |
Trading Symbol | TRC |
Unaudited Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $ (1,913) | $ 1,195 |
Other comprehensive income (loss): | ||
Unrealized gain (loss) on available for sale securities | 38 | 188 |
Unrealized gain (loss) on interest rate swap | 374 | (2,276) |
Other comprehensive income (loss) before taxes | 412 | (2,088) |
Benefit (provision) from income taxes related to other comprehensive income (loss) items | (162) | 730 |
Other comprehensive income (loss) | 250 | (1,358) |
Comprehensive loss | (1,663) | (163) |
Comprehensive loss attributable to non-controlling interests | (11) | (14) |
Comprehensive loss income attributable to common stockholders | $ (1,652) | $ (149) |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Real estate developments | $ 252,250 | $ 248,265 |
Common stock, par value per share (in dollars per share) | $ 0.50 | $ 0.50 |
Common stock, authorized shares (in shares) | 30,000,000 | 30,000,000 |
Common stock, issued shares (in shares) | 20,845,790 | 20,810,301 |
Common stock, outstanding shares (in shares) | 20,845,790 | 20,810,301 |
Centennial | ||
Real estate developments | $ 90,150 | $ 89,381 |
Unaudited Consolidated Statement of Changes in Equity and Noncontrolling Interests - 3 months ended Mar. 31, 2017 - USD ($) $ in Thousands |
Total |
Total Stockholders' Equity |
Common Stock |
Additional Paid-In Capital |
Accumulated Other Comprehensive Income (Loss) |
Retained Earnings |
Noncontrolling Interest |
---|---|---|---|---|---|---|---|
Beginning Balance (in shares) at Dec. 31, 2016 | 20,810,301 | ||||||
Beginning Balance, value at Dec. 31, 2016 | $ 334,467 | $ 305,875 | $ 10,405 | $ 229,762 | $ (6,239) | $ 71,947 | $ 28,592 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income (loss) | (1,913) | (1,902) | (1,902) | (11) | |||
Other comprehensive income | 250 | 250 | 250 | ||||
Restricted stock issuance (in shares) | 63,276 | ||||||
Restricted stock issuance | (1) | (1) | $ 32 | (33) | |||
Stock compensation | 876 | 876 | 876 | ||||
Shares withheld for taxes and tax benefit of vested shares (in shares) | (27,787) | ||||||
Shares withheld for taxes and tax benefit of vested shares | (514) | (514) | $ (14) | (500) | |||
Ending Balance (in shares) at Mar. 31, 2017 | 20,845,790 | ||||||
Ending Balance, value at Mar. 31, 2017 | $ 333,165 | $ 304,584 | $ 10,423 | $ 230,105 | $ (5,989) | $ 70,045 | $ 28,581 |
Basis of Presentation |
3 Months Ended |
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Mar. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The summarized information of Tejon Ranch Co. and its subsidiaries, (the Company, Tejon, we, us and our), furnished pursuant to the instructions to Part I of Form 10-Q is unaudited and reflects all adjustments which are, in the opinion of the Company’s management, necessary for a fair statement of the results for the interim period. All such adjustments are of a normal recurring nature. We have evaluated subsequent events through the date of issuance of our consolidated financial statements. The periods ending March 31, 2017 and 2016 include the consolidation of Centennial Founders, LLC’s statement of operations within the resort /residential real estate development segment and statements of cash flows. The Company’s March 31, 2017 and December 31, 2016 balance sheets and statements of changes in equity and noncontrolling interests are presented on a consolidated basis including the consolidation of Centennial Founders, LLC. The Company has identified five reportable segments: commercial/industrial real estate development, resort/residential real estate development, mineral resources, farming, and ranch operations. Information for the Company’s reported segments is presented in its Consolidated Statements of Operations. The Company’s reporting segments follow the same accounting policies used for the Company’s consolidated financial statements. We use segment profit or loss, along with equity in earnings of unconsolidated joint ventures, as the primary measure of profitability to evaluate operating performance and to allocate capital resources. The results of the period reported herein are not indicative of the results to be expected for the full year due to the seasonal nature of the Company’s agricultural activities and timing of real estate sales and leasing activities. Historically, the Company’s largest percentages of farming revenues are recognized during the third and fourth quarters of the fiscal year. For further information and a summary of significant accounting policies, refer to the Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016. Recent Accounting Pronouncements In January 2016, the Financial Accounting Standards Board, or FASB, issued Account Standards Update, or ASU, 2016-01, "Financial Statements - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities," which requires equity investments in unconsolidated entities (other than those accounted for using the equity method of accounting) to be measured at fair value with changes in fair value recognized in net income. There will no longer be an available-for-sale classification for equity securities with readily determinable fair values. The new guidance is effective for periods beginning after December 15, 2017, with early adoption permitted. The Company is currently in the process of evaluating the impact of the adoption of this ASU on the Company’s consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, "Leases." From the lessee's perspective, the new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessee. From the lessor's perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing lease. If the lessor doesn’t convey risks and rewards or control, an operating lease results. ASU 2016-02 is effective for periods beginning after December 15, 2018. The Company is currently in the process of evaluating the impact of the adoption of this ASU on the Company’s consolidated financial statements. In March 2016, the FASB issued an ASU No. 2016-08, "Revenue from Contracts with Customers" that further clarifies an ASU issued in 2014 on recognition of revenue arising from contracts with customers. The core principle of this ASU is that entities will recognize revenue to represent the transfer of goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in such exchange. Leases are specifically excluded from this ASU and will be governed by the applicable lease codification. However, this update may have implications in certain variable payment terms included in lease agreements and in sale and leaseback transactions. The ASU is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2017. The Company's preliminary assessment of revenues from contracts yielded an immaterial impact to the Company's consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, "Compensation—Stock Compensation (Topic 718) — Improvements to Employee Share-Based Payment Accounting." The ASU is effective for interim and annual reporting periods in fiscal years that begin after December 15, 2016. Stock-based compensation excess tax benefits or deficiencies are now reflected in the Consolidated Statements of Operations as a component of the provision for income taxes, whereas previously they were recognized within additional paid-in-capital. On the Consolidated Statements of Cash Flows, excess tax benefits or deficiencies associated with stock compensation should be classified as an operating activity. We applied both amendments prospectively within the Consolidated Statements of Operations and Consolidated Statements of Cash Flows recognizing excess tax deficiencies of $142,000. This change has no impact on total shareholders’ equity. The amendment also clarifies that cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity within the Consolidated Statements of Cash Flows. This approach is consistent with our existing policy and as such no changes were made to the Consolidated Statements of Cash Flows. Lastly, the ASU also allows for forfeitures to be recorded when they occur rather than estimated over the vesting period. However, we will continue to estimate forfeitures over the vesting period. In August 2016, the FASB issued ASU No. 2016-15 “Statement of Cash Flows (Topic 230),” or ASU 2016-15. ASU 2016-15 is intended to reduce diversity in practice in how certain transactions are classified in the statement of cash flows. The new guidance addresses the classification of various transactions including distributions received from equity method investments. The new guidance allows companies to adopt the cumulative earnings or nature of distribution for classifying distributions received from equity method investments. The ASU is effective for reporting periods beginning after December 15, 2017, with early adoption permitted, and will be applied retrospectively. The Company is currently in the process of evaluating the impact of the adoption of this ASU on the Company’s consolidated financial statements. |
Equity |
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Equity | EQUITY Earnings Per Share (EPS) Basic net income per share attributable to common stockholders is based upon the weighted-average number of shares of common stock outstanding during the year. Diluted net income per share attributable to common stockholders is based upon the weighted-average number of shares of common stock outstanding and the weighted-average number of shares outstanding assuming the issuance of common stock upon exercise of warrants to purchase common stock, and the vesting of restricted stock grants per ASC 260, “Earnings Per Share.”
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Marketable Securities |
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Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Marketable Securities | MARKETABLE SECURITIES ASC 320, “Investments – Debt and Equity Securities” requires that an enterprise classify all debt securities as either held-to-maturity, trading or available-for-sale. The Company has elected to classify its securities as available-for-sale and therefore is required to adjust securities to fair value at each reporting date. All costs and both realized and unrealized gains and losses on securities are determined on a specific identification basis. The following is a summary of available-for-sale securities at:
We evaluate our securities for other-than-temporary impairment based on the specific facts and circumstances surrounding each security valued below its cost. Factors considered include the length of time the securities have been valued below cost, the financial condition of the issuer, industry reports related to the issuer, the severity of any decline, our intention not to sell the security, and our assessment as to whether it is not more likely than not that we will be required to sell the security before a recovery of its amortized cost basis. We then segregate the loss between the amounts representing a decrease in cash flows expected to be collected, or the credit loss, which is recognized through earnings, and the balance of the loss which is recognized through other comprehensive income. At March 31, 2017, the fair market value of investment securities was $60,000 less than their cost basis. As of March 31, 2017, the adjustment to accumulated other comprehensive loss in consolidated equity for the temporary change in the value of securities reflected an increase in the market value of available-for-sale securities of $38,000, which includes estimated taxes of $13,000. As of March 31, 2017, the Company’s gross unrealized holding income equaled $14,000 and gross unrealized holding losses equaled $74,000. The following tables summarize the maturities, at par, of marketable securities as of:
The Company’s investments in corporate notes are with companies that have an investment grade rating from Standard & Poor’s. |
Real Estate |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real Estate | REAL ESTATE
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Investments in Water Assets |
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Investments in Water Assets | INVESTMENTS IN WATER ASSETS Tangible Water Assets Tangible water assets include water assets held for future use within our real estate developments and farming. Tangible water is held at cost, which includes the price paid for the water and the cost incurred to pump and deliver the water. A portion of our water is currently held in a water bank on Company land in southern Kern County. Banked water costs also include costs related to the right to receive additional acre-feet of water in the future from the Antelope Valley East Kern Water Agency, or AVEK. The Company has also banked water within an AVEK owned water bank and with TCWD. We have also purchased water for future company uses or in certain circumstances, sale. In 2008 we purchased 8,393 acre feet of transferable water and in 2009 we purchased an additional 6,393 acre-feet of transferable water, the remaining portion of which is held on our behalf by AVEK under an agreement where AVEK will return this water to us at a 1.5 to 1 factor. To date, at the 1.5 to 1 factor, 11,235 acre-feet (7,490 X 1.5) of water has been returned and was placed in our Company water bank. The costs assigned to tangible water assets were as follows ($ in thousands):
Intangible Water Assets The Company's carrying amounts of its intangible water assets were as follows: ($ in thousands):
We have secured State Water Project, or SWP, entitlement under long-term SWP water contracts within the Tulare Lake Basin Water Storage District, or TLBWSD, and the Dudley-Ridge Water District, or DRWD, totaling 3,444 acre-feet of SWP entitlement annually, subject to annual SWP allocations. These contracts extend through 2035 and now have been transferred to AVEK for our use in the Antelope Valley. In 2013, the Company acquired from DMB Pacific, or DMB, a contract to purchase water that obligates the Company to purchase 6,693 acre feet of water each year from the Nickel Family, LLC, or Nickel, a California limited liability company that is located in Kern County. The initial term of the water purchase agreement with Nickel runs to 2044 and includes a Company option to extend the contract for an additional 35 years. Purchase costs in 2017 were $716 per acre-foot. For future years, the purchase cost is subject to annual increases based on the greater of the consumer price index or 3%. The water purchased above is expected to be used in the development of the Company’s land for commercial/industrial development, residential development, and farming. Interim uses may include the sale of portions of this water to third party users on an annual basis until this water is fully allocated to Company uses. Water contracts with the Wheeler Ridge Maricopa Water Storage District, or WRMWSD, and the Tejon-Castac Water District, or TCWD, are also in place, but were entered into with each district at inception of the contract and not purchased later from third parties, and do not have a related financial carrying cost on the books of the Company. Therefore, there is no amortization expense related to these contracts. These contracts are also subject to annual SWP allocations. Water assets consist of the following:
Tejon Ranchcorp, or Ranchcorp, a wholly-owned subsidiary of Tejon Ranch Co., has a Water Supply Agreement with Pastoria Energy Facility, L.L.C., or PEF. PEF is the current lessee under the power plant lease. Pursuant to the Water Supply Agreement, PEF may purchase from Ranchcorp up to 3,500 acre feet of water per year from January 1, 2017 through July 31, 2030, with an option to extend the term. PEF is under no obligation to purchase water from Ranchcorp in any year, but is required to pay Ranchcorp an annual option payment equal to 30% of the maximum annual payment. The price of the water under the Water Supply Agreement for 2017 is $1,056 per acre foot of annual water, subject to 3% annual increases over the life of the contract. The Water Supply Agreement contains other customary terms and conditions, including representations and warranties, which are typical for agreements of this type. The Company's commitments to sell water can be met through current water assets. During the three months ended March 31, 2017, we sold 939 acre feet of water to PEF totaling $1,109,000 with a cost of $765,000, which was recorded in the mineral resources segment on the unaudited Consolidated Statements of Operations. |
Accrued Liabilities and Other |
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Accrued Liabilities and Other | ACCRUED LIABILITIES AND OTHER Accrued liabilities and other consists of the following:
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Line of Credit and Long-Term Debt |
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Line of Credit and Long-Term Debt | LINE OF CREDIT AND LONG-TERM DEBT Debt consists of the following:
On October 13, 2014, the Company, through its wholly-owned subsidiary Ranchcorp, as borrower, entered into an Amended and Restated Credit Agreement, a Term Note and a Revolving Line of Credit Note, with Wells Fargo, or collectively the Credit Facility. The Credit Facility amended and restated the Company's existing credit facility dated as of November 5, 2010 and extended on December 4, 2013. The Credit Facility added a $70,000,000 Term Note, to the existing $30,000,000 revolving line of credit, or RLC. Funds from the Term Note were used to finance the Company's purchase of DMB TMV LLC’s interest in Tejon Mountain Village LLC. Any future borrowings under the RLC will be used for ongoing working capital requirements and other general corporate purposes. To maintain availability of funds under the RLC, undrawn amounts under the RLC will accrue a commitment fee of 10 basis points per annum. The Company's ability to borrow additional funds in the future under the RLC is subject to compliance with certain financial covenants and making certain representations and warranties. As of March 31, 2017 and December 31, 2016, the RLC had an outstanding balance of $16,000,000 and $7,700,000, respectively. At the Company’s option, the interest rate on this line of credit can float at 1.50% over a selected LIBOR or can be fixed at 1.50% above LIBOR for a fixed rate term. During the term of the Credit Facility (which matures in September 2019), we can borrow at any time and partially or wholly repay any outstanding borrowings and then re-borrow, as necessary. The Term Note had outstanding balances of $68,598,000 and $69,439,000 as of March 31, 2017 and December 31, 2016, respectively. The interest rate per annum applicable to the Term Note is LIBOR (as defined in the Term Note) plus a margin of 170 basis points. The interest rate for the term of the note has been fixed through the use of an interest rate swap at a rate of 4.11%. The Term Note requires interest only payments for the first two years of the term and thereafter requires monthly amortization payments pursuant to a schedule set forth in the Term Note, with the final outstanding principal amount due October 5, 2024. The Company may make voluntary prepayments on the Term Note at any time without penalty (excluding any applicable LIBOR or interest rate swap breakage costs). Each optional prepayment will be applied to reduce the most remote principal payment then unpaid. The Credit Facility is secured by the Company's farmland and farm assets, which include equipment, crops and crop receivables, the power plant lease and lease site, and related accounts and other rights to payment and inventory. The Credit Facility requires compliance with three financial covenants: (a) total liabilities divided by tangible net worth not greater than 0.75 to 1.0 at each quarter end; (b) a debt service coverage ratio not less than 1.25 to 1.00 as of each quarter end on a rolling four quarter basis; and (c) maintain liquid assets equal to or greater than $20,000,000. At March 31, 2017 and December 31, 2016, we were in compliance with all financial covenants. During the third quarter of 2013, we entered into a promissory note agreement with CMFG Life Insurance Company, to pay a principal amount of $4,750,000 with principal and interest due monthly starting on October 1, 2013. The interest rate on this promissory note is 4.25% per annum, with monthly principal and interest payments of $102,700 ending on September 1, 2028. The proceeds from this promissory note were used to eliminate debt that had been previously used to provide long-term financing for a building being leased to Starbucks and provide additional working capital for future investment. The current balance on the note is $3,895,000. The balance of this long-term debt instrument included in "Notes payable" above approximates the fair value of the instrument. |
Other Liabilities |
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Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | OTHER LIABILITIES Other liabilities consist of the following:
For the captions presented in the table above, please refer to the respective Notes to Unaudited Consolidated Financial Statements for further detail. |
Stock Compensation - Restricted Stock and Performance Share Grants |
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Stock Compensation - Restricted Stock and Performance Share Grants | STOCK COMPENSATION - RESTRICTED STOCK AND PERFORMANCE SHARE GRANTS The Company’s stock incentive plans provide for the making of awards to employees based upon a service condition or through the achievement of performance-related objectives. The Company has issued three types of stock grant awards under these plans: restricted stock with service condition vesting; performance share grants that only vest upon the achievement of specified performance conditions, such as corporate cash flow goals, or Performance Condition Grants; and performance share grants that include threshold, target, and maximum achievement levels based on the achievement of specific performance milestones, or Performance Milestone Grants. The Company has also granted performance share grants that contain both performance-based and market-based conditions. Compensation cost for these awards is recognized based on either the achievement of the performance-based conditions, if they are considered probable, or if they are not considered probable, on the achievement of the market-based condition. Failure to satisfy the threshold performance conditions will result in the forfeiture of shares. Forfeiture of share awards with service conditions or performance-based restrictions results in a reversal of previously recognized share-based compensation expense. Forfeiture of share awards with market-based restrictions does not result in a reversal of previously recognized share-based compensation expense. The following is a summary of the Company's performance share grants with performance conditions for the three months ended March 31, 2017:
The following is a summary of the Company’s stock grant activity, both time and performance share grants, assuming target achievement for outstanding performance share grants for the following periods:
The unamortized costs associated with nonvested stock grants and the weighted-average period over which it is expected to be recognized as of March 31, 2017 were $9,163,000 and 30 months, respectively. The fair value of restricted stock with time-based vesting features is based upon the Company’s share price on the date of grant and is expensed over the service period. Fair value of performance share grants that cliff vest based on the achievement of performance conditions is based on the share price of the Company’s stock on the day of grant once the Company determines that it is probable that the award will vest. This fair value is expensed over the service period applicable to these grants. For performance share grants that contain a range of shares from zero to maximum we determine, based on historic and projected results, the probability of (1) achieving the performance objective, and (2) the level of achievement. Based on this information, we determine the fair value of the award and measure the expense over the service period related to these grants. Because the ultimate vesting of all performance share grants is tied to the achievement of a performance condition, we estimate whether the performance condition will be met and over what period of time. Ultimately, we adjust compensation cost according to the actual outcome of the performance condition. Under the Non-Employee Director Stock Incentive Plan, or NDSI Plan, each non-employee director receives his or her annual compensation in stock. The stock is granted at the end of each quarter based on the quarter ending stock price. The following table summarizes stock compensation costs for the Company's 1998 Employee Stock Incentive Plan, or the Employee Plan, and NDSI Plan for the following periods:
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Interest Rate Swap Liability |
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Interest Rate Swap Liability | INTEREST RATE SWAP LIABILITY During October 2014, the Company entered into an interest rate swap agreement to hedge cash flows tied to changes in the underlying floating interest rate tied to LIBOR for the Term Note as discussed in Note 7 (Line of Credit and Long-Term Debt) The ineffective portion of the change in fair value of our interest rate swap agreement is required to be recognized directly in earnings. During the quarter ended March 31, 2017, our interest rate swap agreement was 100% effective; because of this, no hedge ineffectiveness was recognized in earnings. Changes in fair value, including accrued interest and adjustments for non-performance risk, on the effective portion of our interest rate swap agreements that are designated and that qualify as cash flow hedges are classified in accumulated other comprehensive income. Amounts classified in accumulated other comprehensive income are subsequently reclassified into earnings in the period during which the hedged transactions affect earnings. As of March 31, 2017, the fair value of our interest rate swap agreement aggregating a liability balance was classified in other liabilities. We had the following outstanding interest rate swap agreement designated as a cash flow hedge of interest rate risk as of March 31, 2017 ($ in thousands):
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Income Taxes |
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Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES For the three months ended March 31, 2017, the Company's income tax benefit was $1,332,000 compared to income tax expense of $612,000 for the three months ended March 31, 2016. These represent effective income tax rates of approximately 41% and 34% for the three months ended March 31, 2017 and, 2016, respectively. As of March 31, 2017, we had income tax receivable of $1,798,000. The Company classifies interest and penalties incurred on tax payments as income tax expense. During the three months ended March 31, 2017, the Company made $0 of income tax payments. |
Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES The Company's land is subject to water contracts with minimum annual payments in 2017 of approximately $8,799,000 of which $5,989,000 was paid during the first quarter with the remainder to be paid throughout the year. These estimated water contract payments consist of SWP, contracts with Wheeler Ridge Maricopa Water Storage District, Tejon-Castac Water District, or TCWD, Tulare Lake Basin Water Storage District, Dudley-Ridge Water Storage District and the Nickel water contract. The SWP contracts run through 2035 and the Nickel water contract runs through 2044, with an option to extend an additional 35 years. As discussed in Note 5 (Investments In Water Assets), we purchased the assignment of a contract to purchase water in late 2013. The assigned water contract is with Nickel Family, LLC, and obligates us to purchase 6,693 acre-feet of water annually through the term of the contract. The Company is obligated to make payments of approximately $800,000 per year through 2021 to the Tejon Ranch Conservancy as prescribed in the Conservation Agreement we entered into with five major environmental organizations in 2008. Our advances to the Tejon Ranch Conservancy are dependent on the occurrence of certain events and their timing, and are therefore subject to change in amount and period. These amounts are recorded in real estate development for the Centennial, Grapevine and Mountain Village, or MV, projects. The Company exited a consulting contract during the second quarter of 2014 related to the Grapevine Development and is obligated to pay an earned incentive fee at the time of successful receipt of project entitlements and at a value measurement date five-years after entitlements have been achieved for Grapevine. The final amount of the incentive fees will not be finalized until the future payment dates. The Company believes that net savings from exiting the contract over this future time period will more than offset the incentive payment costs. The Tejon Ranch Public Facilities Financing Authority, or TRPFFA, is a joint powers authority formed by Kern County and TCWD to finance public infrastructure within the Company’s Kern County developments. TRPFFA has created two Community Facilities Districts, or CFDs, the West CFD and the East CFD. The West CFD has placed liens on 420 acres of the Company’s land to secure payment of special taxes related to $28,620,000 of bond debt sold by TRPFFA for TRCC-West. The East CFD has placed liens on 1,931 acres of the Company’s land to secure payments of special taxes related to $55,000,000 of bond debt sold by TRPFFA for TRCC-East. At TRCC-West, the West CFD has no additional bond debt approved for issuance. At TRCC-East, the East CFD has approximately $65,000,000 of additional bond debt authorized by TRPFFA that can be sold in the future. In connection with the sale of bonds there is a standby letter of credit for $4,921,000 related to the issuance of East CFD bonds. The standby letter of credit is in place to provide additional credit enhancement and cover approximately two years' worth of interest on the outstanding bonds. This letter of credit will not be drawn upon unless the Company, as the largest landowner in the CFD, fails to make its property tax payments. The Company believes that the letter of credit will never be drawn upon. The letter of credit is for two years and will be renewed in two-year intervals as necessary. The annual cost related to the letter of credit is approximately $83,000. The Company is obligated, as a landowner in each CFD, to pay its share of the special taxes assessed each year. The secured lands include both the TRCC-West and TRCC-East developments. Proceeds from the sale of West CFD bonds went to reimburse the Company for public infrastructure related to the TRCC-West development. At March 31, 2017 there were no additional improvement funds remaining from the West CFD bonds and there are $7,768,000 in improvement funds within the East CFD bonds for reimbursement of public infrastructure costs during 2017 and future years. During 2016, the Company paid approximately $2,585,000 in special taxes. As development continues to occur at TRCC, new owners of land and new lease tenants, through triple net leases, will bear an increasing portion of the assessed special tax. This amount could change in the future based on the amount of bonds outstanding and the amount of taxes paid by others. The assessment of each individual property sold or leased is not determinable at this time because it is based on the current tax rate and the assessed value of the property at the time of sale or on its assessed value at the time it is leased to a third-party. Accordingly, the Company is not required to recognize an obligation at March 31, 2017. In July 2014, the Company received a copy of a Notice of Intent to Sue, or Notice, dated July 17, 2014 indicating that the Center for Biological Diversity, the Wishtoyo Foundation and Dee Dominguez intend to initiate a lawsuit against the U.S. Fish and Wildlife Service, or USFWS, under the federal Endangered Species Act challenging USFWS's approval of Ranchcorp's Tehachapi Uplands Multiple Species Habitat Conservation Plan, or TUMSHCP, and USFWS's issuance of an Incidental Take Permit, or ITP, to Ranchcorp for the take of federally listed species. The foregoing approvals authorize, among other things, removal of California condor habitat associated with Ranchcorp's potential future development of MV. No lawsuit has been filed at this time. It is not possible to predict whether any lawsuit will actually be filed or whether the Company or Ranchcorp will incur any damages from such a lawsuit. National Cement The Company leases land to National Cement Company of California Inc., or National, for the purpose of manufacturing Portland cement from limestone deposits on the leased acreage. The California Regional Water Quality Control Board, or RWQCB, for the Lahontan Region issued orders in the late 1990s with respect to environmental conditions on the property currently leased to National. The Company's former tenant Lafarge Corporation, or Lafarge, and current tenant National, continue to remediate these environmental conditions consistent with the RWQCB orders. The Company is not aware of any failure by Lafarge or National to comply with directives of the RWQCB. Under current and prior leases, National and Lafarge are obligated to indemnify the Company for costs and liabilities arising out of their use of the leased premises. The remediation of environmental conditions is included within the scope of the National or Lafarge indemnity obligations. If the Company were required to remediate the environmental conditions at its own cost, it is unlikely that the amount of any such expenditure by the Company would be material and there is no reasonable likelihood of continuing risk from this matter. Antelope Valley Groundwater Cases On November 29, 2004, a conglomerate of public water suppliers filed a cross-complaint in the Los Angeles Superior Court seeking a judicial determination of the rights to groundwater within the Antelope Valley basin, including the groundwater underlying the Company’s land near the Centennial project. Four phases of a multi-phase trial have been completed. Upon completion of the third phase, the court ruled that the groundwater basin is currently in overdraft and established a current total sustainable yield. The fourth phase of trial occurred in the first half of 2013 and resulted in confirmation of each party’s groundwater pumping for 2011 and 2012. The fifth phase of the trial commenced in February 2014, and concerned 1) whether the United States has a federal reserved water right to basin groundwater, and 2) the rights to return flows from imported water. The court heard evidence on the federal reserved right but continued the trial on the return flow issues while most of the parties to the adjudication discussed a settlement, including rights to return flows. In February 2015, more than 140 parties representing more than 99% of the current water use within the adjudication boundary agreed to a settlement. On March 4, 2015, the settling parties, including Tejon, submitted a Stipulation for Entry of Judgment and Physical Solution to the court for approval. On December 23, 2015, the court entered Judgment approving the Stipulation for Entry of Judgment and Physical Solution. The Company’s water supply plan for the Centennial project anticipated reliance on, among other sources, a certain quantity of groundwater underlying the Company’s lands in the Antelope Valley. The Company’s allocation in the Judgment is consistent with that amount. Prior to the Judgment becoming final, on February 19 and 22, 2016, several parties, including the Willis Class and Phelan Pinon Hills CSD, filed notices of appeal from the Judgment. Appellate briefing will likely occur during the last two quarters of 2017 and first quarter of 2018. Notwithstanding the appeals, the parties with assistance from the Court have begun establishment of the Watermaster and administration of the Physical Solution, consistent with the Judgment. Summary and Status of Kern Water Bank Lawsuits On June 3, 2010, the Central Delta and South Delta Water Agencies and several environmental groups, including the Center for Biological Diversity (collectively, “Central Delta”), filed a complaint in the Sacramento County Superior Court against the California Department of Water Resources, or DWR, Kern County Water Agency and a number of “real parties in interest,” including the Company and TCWD. The lawsuit challenges certain amendments to the SWP contracts that were originally approved in 1995, known as the “Monterey Amendments.” Petitioners in this action sought to invalidate environmental documentation prepared pursuant to the California Environmental Quality Act pertaining to the Kern Water Bank. The original Environmental Impact Report, or EIR, for the Monterey Amendments was determined to be insufficient in an earlier lawsuit. The current lawsuit principally (i) challenges the adequacy of the remedial EIR that DWR prepared as a result of the original lawsuit and (ii) challenges the validity of the Monterey Amendments on various grounds, including the transfer of the Kern Water Bank (“KWB”) lands, from DWR to the Kern County Water Agency and in turn to the Kern Water Bank Authority, or KWBA, whose members are various Kern and Kings County interests, including TCWD, which TCWD has a 2% interest in the KWBA. A parallel lawsuit was also filed by Central Delta in Kern County Superior Court on July 2, 2010, against Kern County Water Agency, also naming the Company and TCWD as real parties in interest, which has been stayed pending the outcome of the other action against DWR. The Company is named on the ground that it “controls” TCWD. This lawsuit has since been moved to the Sacramento County Superior Court. Another lawsuit was filed in Kern County Superior Court on June 3, 2010, by two districts adjacent to the KWB, namely Rosedale Rio Bravo and Buena Vista Water Storage Districts, or Rosedale, asserting that the remedial EIR did not adequately evaluate potential impacts arising from operations of the KWB, but this lawsuit did not name the Company, only TCWD. TCWD has a contract right for water stored in the KWB and rights to recharge and withdraw water. This lawsuit has since been moved to the Sacramento County Superior Court. In an initial favorable ruling on January 25, 2013, the court determined that the challenges to the validity of the Monterey Amendments, including the transfer of the KWB lands, were not timely and were barred by the statutes of limitation, the doctrine of laches, and by the annual validating statute. The substantive hearing on the challenges to the EIR was held on January 31, 2014. On March 5, 2014 the court issued a decision, rejecting all of Central Delta’s California Environmental Quality Act, or CEQA, claims, except the Rosedale claim, joined by Central Delta, that the EIR did not adequately evaluate future impacts from operation of the KWB, in particular potential impacts on groundwater and water quality. On November 24, 2014, the court issued a writ of mandate (the “2014 Writ”) that requires DWR to prepare a revised EIR regarding the Monterey Amendments evaluating the potential operational impacts of the KWB. The 2014 Writ authorizes the continued operation of the KWB pending completion of the revised EIR subject to certain conditions including those described in an interim operating plan negotiated between the KWBA and Rosedale. The writ of mandate, as revised by the court, requires DWR to certify the revised EIR and file the return to the writ of mandate by September 28, 2016. On September 20, 2016 the Director of DWR (a) certified the Revised EIR as in compliance with CEQA, (b) adopted findings, a statement of overriding considerations, and a mitigation, monitoring and reporting program as required by CEQA, (c) made a new finding pertaining to carrying out the Monterey Amendments through continued use and operation of the KWB by the KWBA, and (d) caused a notice of determination to be filed with the Office of Planning and Resources of the State of California on September 22, 2016. On September 28, 2016, DWR filed with the Superior Court its return to the 2014 Writ of mandate. On November 24, 2014, the court entered a judgment in the Central Delta case (1) dismissing the challenges to the validity of the Monterey Amendments and the transfer of the KWB lands in their entirety and (2) granting in part, and denying, in part, the CEQA petition for writ of mandate. Central Delta has appealed the judgment and the KWBA and certain other parties have filed a cross-appeal with regard to certain defenses to the CEQA cause of action. The appeals are pending in the California Court of Appeal. On December 3, 2014, the court entered judgment in the Rosedale case (i) in favor of Rosedale in the CEQA cause of action, and (ii) dismissing the declaratory relief cause of action. No appeal of the Rosedale judgment has been filed. On October 21, 2016, the Central Delta petitioners and a new party, the Center for Food Safety (“CFS Petitioners”), filed a new lawsuit against DWR and naming a number of real parties in interest, including KWBA and TCWD (but not including the Company). The new lawsuit challenges DWR’s (i) certification of the Revised EIR, (ii) compliance with the 2014 Writ and CEQA, and (iii) finding concerning the continued use and operation of the KWB by KWBA. In response to a motion filed by the CFS Petitioners, on April 7, 2017 the Superior Court denied the CFS Petitioners’ motion to stay the Superior Court proceedings on the return to the 2014 Writ and CFS petition pending appeal. A hearing in the Superior Court on DWR’s return to the 2014 Writ and the CFS Petition is scheduled for August 18, 2017. To the extent there may be an adverse outcome of the claims still pending as described above, the monetary value cannot be estimated at this time. Grapevine On December 6, 2016 the Kern County Board of Supervisors granted entitlement approval for the Grapevine project (described below). On January 5, 2017 the Center for Biological Diversity (CBD) and the Center for Food Safety (CFS) filed an action in Kern County Superior Court pursuant to the California Environmental Quality Act (CEQA), against Kern County and the Kern County Board of Supervisors (collectively, the “County”) concerning the County’s granting of approvals for the Grapevine project, including certification of the final environmental impact report and related findings (EIR); approval of associated general plan amendments; adoption of associated zoning maps; adoption of Specific Plan Amendment No. 155, Map No. 500; adoption of Special Plan No. 1, Map No. 202; exclusion from Agricultural Preserve No. 19; and adoption of a development agreement, among other associated approvals. The Company and its wholly-owned subsidiary, Tejon Ranchcorp, are named as real parties in interest in this action. The action alleges that the County failed to properly follow the procedures and requirements of CEQA including failure to identify, analyze and mitigate impacts to air quality, greenhouse gas emissions, biological resources, traffic, water supply and hydrology, growth inducing impacts, failure to adequately consider project alternatives and to provide support for the County’s findings and statement of overriding considerations in adopting the EIR and failure to adequately describe the environmental setting and project description. As of the publication of this filing there have been no hearings on this matter and the County and real parties in interest have not filed their responsive pleadings. Petitioners seek to invalidate the County's approval of the project, the environmental approvals and require the County to revise the environmental documentation. Proceedings Incidental to Business From time to time, we are involved in other proceedings incidental to our business, including actions relating to employee claims, environmental law issues, real estate disputes, contractor disputes and grievance hearings before labor regulatory agencies. The outcome of these other proceedings is not predictable. However, based on current circumstances, we do not believe that the ultimate resolution of these other proceedings, after considering available defenses and any insurance coverage or indemnification rights, will have a material adverse effect on our financial position, results of operations or cash flows either individually or in the aggregate. |
Retirement Plans |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Plans | RETIREMENT PLANS The Company has a defined benefit plan that covers many of its employees, or the Benefit Plan. The benefits are based on years of service and the employee’s five-year final average salary. Contributions are intended to provide for benefits attributable to service both to-date and expected-to-be provided in the future. The Company funds the plan in accordance with the Employee Retirement Income Security Act of 1974 (ERISA) and the Pension Protection Act. We do not expect to contribute to the plan during 2017. Plan assets consist of equity, debt and short-term money market investment funds. The plan’s current investment policy targets 65% equities, 25% debt and 10% money market funds. Equity and debt investment percentages are allowed to fluctuate plus or minus 20% to take advantage of market conditions. As an example, equities could fluctuate from 78% to 52% of plan assets. At March 31, 2017, the investment mix was approximately 55% equity, 38% debt, and 7% money market funds. At December 31, 2016, the investment mix was approximately 60% equity, 29% debt and 11% money market funds. Equity investments consist of a combination of individual equity securities plus value funds, growth funds, large cap funds and international stock funds. Debt investments consist of U.S. Treasury securities and investment grade corporate debt. The weighted-average discount rate used in determining the periodic pension cost is 4.3% in 2017 and 2016. The expected long-term rate of return on plan assets is 7.5% in 2017 and 2016. The long-term rate of return on plan assets is based on the historical returns within the plan and expectations for future returns. The expected total pension and retirement expense for the Benefit Plan was as follows:
The Company has a Supplemental Executive Retirement Plan, or SERP, to restore to executives designated by the Compensation Committee of the Board of Directors the full benefits under the pension plan that would otherwise be restricted by certain limitations now imposed under the Internal Revenue Code. The SERP is currently unfunded. The pension and retirement expense for the SERP was as follows:
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Reporting Segments and Related Information |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reporting Segments and Related Information | REPORTING SEGMENTS AND RELATED INFORMATION We currently operate in five reporting segments: commercial/industrial real estate development, resort/residential real estate development, mineral resources, farming, and ranch operations. Commercial lease revenue consists of land and building leases to tenants at our commercial retail and industrial developments, base and percentage rents from our Pastoria Energy Facility power plant lease, communication tower rents, and payments from easement leases. The revenue components of the commercial/industrial real estate development segment were as follows:
The resort/residential real estate development segment is actively involved in the land entitlement and development process internally and through a joint venture. The segment incurs costs and expenses related to its development activities, but currently generates no revenue. The segment produced losses of $630,000 and $542,000 for the three months ended March 31, 2017 and 2016, respectively. The mineral resources segment receives oil and mineral royalties in addition to periodic reimbursable costs from lessors. The segment also, as opportunities arise periodically, may generate revenues through water transactions. The revenue components of the mineral resources segment were as follows:
The farming segment produces revenues from the sale of almonds, pistachios, wine grapes, and hay. The revenue components of the farming segment were as follows:
Ranch operations consists of game management, ranch and property maintenance, and ancillary land uses such as grazing leases and filming. Within game management, we offer a wide variety of guided big game hunts including trophy Rocky Mountain elk, deer, turkey and wild pig. The revenue components of the ranch operations segment were as follows:
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Investment in Unconsolidated and Consolidated Joint Ventures |
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in Unconsolidated and Consolidated Joint Ventures | INVESTMENT IN UNCONSOLIDATED AND CONSOLIDATED JOINT VENTURES The Company maintains investments in joint ventures. The Company accounts for its investments in unconsolidated joint ventures using the equity method of accounting unless the venture is a variable interest entity, or VIE, and meets the requirements for consolidation. The Company’s investment in its unconsolidated joint ventures at March 31, 2017 was $33,692,000. The equity in the income of the unconsolidated joint ventures was $228,000 for the three months ended March 31, 2017. The unconsolidated joint ventures have not been consolidated as of March 31, 2017, because the Company does not control the investments. The Company’s current joint ventures are as follows:
The Company’s investment balance in its unconsolidated joint ventures differs from its respective capital accounts in the respective joint ventures. The differential represents the difference between the cost basis of assets contributed by the Company and the agreed upon contribution value of the assets contributed. Unaudited condensed statement of operations and condensed balance sheet information of the Company’s unconsolidated joint ventures as of March 31, 2017 are as follows:
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Related Party Transactions |
3 Months Ended |
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Mar. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | RELATED PARTY TRANSACTIONS TCWD is a not-for-profit governmental entity, organized on December 28, 1965, pursuant to Division 13 of the Water Code, State of California. TCWD is a landowner voting district, which requires an elector, or voter, to be an owner of land located within the district. TCWD was organized to provide the water needs for future municipal and industrial development. The Company is the largest landowner and taxpayer within TCWD. The Company has a water service contract with TCWD that entitles us to receive all of TCWD’s State Water Project entitlement and all of TCWD’s banked water. TCWD is also entitled to make assessments of all taxpayers within the district, to the extent funds are required to cover expenses and to charge water users within the district for the use of water. From time to time, we transact with TCWD in the ordinary course of business. |
Equity (Tables) |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of weighted average number of shares outstanding | Diluted net income per share attributable to common stockholders is based upon the weighted-average number of shares of common stock outstanding and the weighted-average number of shares outstanding assuming the issuance of common stock upon exercise of warrants to purchase common stock, and the vesting of restricted stock grants per ASC 260, “Earnings Per Share.”
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Marketable Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of available-for-sale securities | The following is a summary of available-for-sale securities at:
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Summary of maturities, at par, of marketable securities by year | The following tables summarize the maturities, at par, of marketable securities as of:
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Real Estate (Tables) |
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Real Estate [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Real Estate |
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Investments in Water Assets (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tangible water assets | The costs assigned to tangible water assets were as follows ($ in thousands):
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Schedule of finite-lived intangible assets | The Company's carrying amounts of its intangible water assets were as follows: ($ in thousands):
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Components of water assets | Water assets consist of the following:
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Accrued Liabilities and Other (Tables) |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Liabilities | Accrued liabilities and other consists of the following:
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Line of Credit and Long-Term Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of long-term debt | Debt consists of the following:
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Other Liabilities (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Liabilities | Other liabilities consist of the following:
|
Stock Compensation - Restricted Stock and Performance Share Grants (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of performance share grants with performance conditions | The following is a summary of the Company's performance share grants with performance conditions for the three months ended March 31, 2017:
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Summary of stock grant activity | The following is a summary of the Company’s stock grant activity, both time and performance share grants, assuming target achievement for outstanding performance share grants for the following periods:
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Summary of stock compensation costs for Employee and NDSI Plans | The following table summarizes stock compensation costs for the Company's 1998 Employee Stock Incentive Plan, or the Employee Plan, and NDSI Plan for the following periods:
|
Interest Rate Swap Liability (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest Rate Derivatives | We had the following outstanding interest rate swap agreement designated as a cash flow hedge of interest rate risk as of March 31, 2017 ($ in thousands):
|
Retirement Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension plan | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of net periodic pension cost | The expected total pension and retirement expense for the Benefit Plan was as follows:
|
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SERP | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Plan Disclosure [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of net periodic pension cost | The pension and retirement expense for the SERP was as follows:
|
Reporting Segments and Related Information (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate - commercial/industrial | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of segment revenues | The revenue components of the commercial/industrial real estate development segment were as follows:
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Mineral resources | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of segment revenues | The revenue components of the mineral resources segment were as follows:
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Farming Segment | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of segment revenues | The revenue components of the farming segment were as follows:
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Ranch operations | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of segment revenues | The revenue components of the ranch operations segment were as follows:
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Investment in Unconsolidated and Consolidated Joint Ventures (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed statements of operations and balance sheet information of consolidated and unconsolidated joint ventures | Unaudited condensed statement of operations and condensed balance sheet information of the Company’s unconsolidated joint ventures as of March 31, 2017 are as follows:
|
Basis of Presentation (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017
USD ($)
segment
|
Mar. 31, 2016
USD ($)
|
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net cash provided by (used in) operating activities | $ (570) | $ (1,031) |
Net cash provided by (used in) financing activities | $ (6,848) | $ (1,627) |
Number of reportable segments | segment | 5 | |
Accounting Standards Update 2016-09, Excess Tax Benefit Component [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Net cash provided by (used in) operating activities | $ 142 | |
Net cash provided by (used in) financing activities | $ 142 |
Equity - Earnings Per Share (EPS) (Details) - shares |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Weighted-average number of shares outstanding: | ||
Common stock (in shares) | 20,827,993 | 20,702,103 |
Common stock equivalents-stock options, grants (in shares) | 47,052 | 71,364 |
Diluted shares outstanding (in shares) | 20,875,045 | 20,773,467 |
Marketable Securities - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Investments, Debt and Equity Securities [Abstract] | ||
Fair market value of investment securities exceeds cost basis | $ 60 | |
Changes in unrealized gains on available for sale securities, taxes | 38 | $ 188 |
Estimated taxes of change in value of available-for-sale securities | 13 | |
Gross unrealized holding gains | 14 | |
Gross unrealized holding losses | $ 74 |
Marketable Securities - Available-for-sale Securities by Maturities (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Summary of maturities, at par, of marketable securities | ||
2017 | $ 4,314 | $ 6,921 |
2018 | 13,511 | 13,571 |
2019 | 6,012 | 5,773 |
2020 | 0 | 0 |
Total | 23,837 | 26,265 |
Certificates of deposit | ||
Summary of maturities, at par, of marketable securities | ||
2017 | 294 | 531 |
2018 | 4,306 | 4,306 |
2019 | 324 | 324 |
2020 | 0 | 0 |
Total | 4,924 | 5,161 |
U.S. Treasury and agency notes | ||
Summary of maturities, at par, of marketable securities | ||
2017 | 1,234 | 1,234 |
2018 | 444 | 444 |
2019 | 142 | 142 |
2020 | 0 | 0 |
Total | 1,820 | 1,820 |
Corporate notes | ||
Summary of maturities, at par, of marketable securities | ||
2017 | 2,051 | 4,316 |
2018 | 7,073 | 7,133 |
2019 | 4,421 | 4,232 |
2020 | 0 | 0 |
Total | 13,545 | 15,681 |
Municipal notes | ||
Summary of maturities, at par, of marketable securities | ||
2017 | 735 | 840 |
2018 | 1,688 | 1,688 |
2019 | 1,125 | 1,075 |
2020 | 0 | 0 |
Total | $ 3,548 | $ 3,603 |
Real Estate (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Real estate developments | $ 252,250 | $ 248,265 |
Real estate and improvements - held for lease | 20,288 | 21,643 |
Less accumulated depreciation | (1,706) | (1,617) |
Real estate and improvements - held for lease, net | 18,582 | 20,026 |
Mountain Village | ||
Property, Plant and Equipment [Line Items] | ||
Real estate developments | 127,116 | 126,096 |
Centennial | ||
Property, Plant and Equipment [Line Items] | ||
Real estate developments | 90,149 | 89,381 |
Grapevine | ||
Property, Plant and Equipment [Line Items] | ||
Real estate developments | 25,093 | 23,917 |
Tejon Ranch Commerce Center | ||
Property, Plant and Equipment [Line Items] | ||
Real estate developments | 9,892 | 8,871 |
Real estate and improvements - held for lease | $ 20,288 | $ 21,643 |
Investments in Water Assets Investments in Water Assets - Tangible Water Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Long Lived Assets Held-for-sale [Line Items] | ||
Total tangible water | $ 18,130 | $ 13,854 |
Banked water and water for future delivery | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Total tangible water | 5,025 | 4,779 |
Transferable water | ||
Long Lived Assets Held-for-sale [Line Items] | ||
Total tangible water | $ 13,105 | $ 9,075 |
Investments in Water Assets Investments in Water Assets - Intangible Water Assets (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Costs | $ 36,800 | $ 36,800 |
Accumulated Depreciation | (7,228) | (6,890) |
Net intangible water assets | 29,572 | 29,910 |
Total tangible water | 18,130 | 13,854 |
Net investment in water assets | 47,702 | 43,764 |
Contract-based intangible assets | Dudley Ridge water rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Costs | 12,203 | 12,203 |
Accumulated Depreciation | (3,206) | (2,895) |
Contract-based intangible assets | Nickel water rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Costs | 18,740 | 18,740 |
Accumulated Depreciation | (2,195) | (2,218) |
Contract-based intangible assets | Tulare Lake Basin water rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Costs | 5,857 | 5,857 |
Accumulated Depreciation | $ (1,827) | $ (1,777) |
Accrued Liabilities and Other (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Payables and Accruals [Abstract] | ||
Accrued vacation | $ 892 | $ 901 |
Accrued paid personal leave | 584 | 590 |
Accrued bonus | 687 | 1,346 |
Property tax payable | 998 | 0 |
Other | 284 | 351 |
Total | $ 3,445 | $ 3,188 |
Line of Credit and Long-Term Debt - Components of Debt (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Long-term debt consists of: | ||
Total short-term and long-term debt | $ 88,929 | $ 81,567 |
Less: line-of-credit and current maturities of long-term debt | (19,868) | (11,553) |
Less: deferred loan costs | (156) | (161) |
Long-term debt, less current portion | 68,905 | 69,853 |
Revolving line of credit | ||
Long-term debt consists of: | ||
Total short-term and long-term debt | 16,000 | 7,700 |
Notes payable | ||
Long-term debt consists of: | ||
Total short-term and long-term debt | 72,494 | 73,400 |
Other borrowings | ||
Long-term debt consists of: | ||
Total short-term and long-term debt | $ 435 | $ 467 |
Other Liabilities (Details) - USD ($) $ in Thousands |
Mar. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Other Liabilities | ||
Distributions in Excess of Investment in Unconsolidated Joint Venture | $ 224 | $ 0 |
Interest rate swap liability | 1,491 | 1,865 |
Other | 184 | 223 |
Total | 12,989 | 13,034 |
Pension plan | ||
Other Liabilities | ||
Pension and supplemental executive retirement plan liability | 3,017 | 2,931 |
SERP | ||
Other Liabilities | ||
Pension and supplemental executive retirement plan liability | $ 8,073 | $ 8,015 |
Stock Compensation - Restricted Stock and Performance Share Grants - Additional Information (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2017
USD ($)
award_type
| |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Number of types of stock grant awards | award_type | 3 |
Total compensation cost not yet recognized | $ | $ 9,163 |
Total compensation cost not yet recognized, period for recognition | 30 months |
Stock Compensation - Restricted Stock and Performance Share Grants - Performance Share Grants (Details) - Performance share grants |
3 Months Ended |
---|---|
Mar. 31, 2017
shares
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Below threshold performance ( in shares) | 0 |
Threshold performance (in shares) | 180,345 |
Target performance (in shares) | 456,853 |
Maximum performance (in shares) | 699,996 |
Stock Compensation - Restricted Stock and Performance Share Grants - Summary of Stock Grant Activity (Details) - Performance share grants - shares |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
|
Summary of stock grant activity: | ||
Stock grants outstanding beginning of the year at target achievement (in shares) | 386,171 | 272,353 |
New stock grants/additional shares due to maximum achievement (in shares) | 295,243 | 287,091 |
Vested grants (in shares) | (50,024) | (172,749) |
Expired/forfeited grants (in shares) | (11,099) | (524) |
Stock grants outstanding September 30, 2016 at target achievement (in shares) | 620,291 | 386,171 |
Stock Compensation - Restricted Stock and Performance Share Grants - Compensation Costs (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Stock Compensation Costs | $ 876 | $ 1,029 |
1998 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation costs, expensed | 630 | 794 |
Stock compensation costs, capitalized | 65 | 56 |
Total Stock Compensation Costs | 695 | 850 |
NDSI Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock compensation costs, expensed | $ 181 | $ 179 |
Interest Rate Swap Liability (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Dec. 31, 2016 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Hedge ineffectiveness | $ 0 | |
Level 2 | Interest Rate Swap | ||
Derivatives, Fair Value [Line Items] | ||
Weighted Average Interest Rate | 4.11% | |
Notional Amount | $ 68,598,000 | |
Level 2 | Interest Rate Swap | Other Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Fair Value | $ (1,490,000) | |
Notional Amount | $ 69,439,000 |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ (1,332) | $ 612 |
Effective income tax rate | 41.00% | 34.00% |
Income taxes receivable | $ 1,798 | |
Income taxes paid | $ 0 | $ 1,350 |
Retirement Plans - Additional Information (Details) - Pension plan |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
Dec. 31, 2016 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Service period | 5 years | ||
Current investment policy targets: | |||
Current investment policy target percentage of fluctuation | 20.00% | ||
Assumptions used in determining periodic pension cost: | |||
Discount rate | 4.30% | 4.30% | |
Expected long-term rate of return on plan assets | 7.50% | 7.50% | |
Equities | |||
Current investment policy targets: | |||
Current investment policy target | 65.00% | ||
Current investment policy target, maximum | 78.00% | ||
Current investment policy target, minimum | 52.00% | ||
Current investment mix | 55.00% | 60.00% | |
Treasury/Corporate Notes | |||
Current investment policy targets: | |||
Current investment policy target | 25.00% | ||
Current investment mix | 38.00% | 29.00% | |
Money market funds | |||
Current investment policy targets: | |||
Current investment policy target | 10.00% | ||
Current investment mix | 7.00% | 11.00% |
Retirement Plans - Net Periodic Pension Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Pension plan | ||
Cost components: | ||
Service cost-benefits earned during the period | $ (61) | $ (56) |
Interest cost on projected benefit obligation | (104) | (102) |
Expected return on plan assets | 129 | 129 |
Net amortization and deferral | (50) | (46) |
Total net periodic pension cost | (86) | (75) |
SERP | ||
Cost components: | ||
Interest cost on projected benefit obligation | (76) | (81) |
Net amortization and deferral | (93) | (86) |
Total net periodic pension cost | $ (169) | $ (167) |
Reporting Segments and Related Information - Additional Information (Details) |
3 Months Ended | |
---|---|---|
Mar. 31, 2017
USD ($)
segment
|
Mar. 31, 2016
USD ($)
|
|
Revenue from External Customer [Line Items] | ||
Number of reportable segments | segment | 5 | |
Total revenues | $ 5,702,000 | $ 12,953,000 |
Segment losses | 9,458,000 | 12,770,000 |
Operating Segments | Real estate - resort/residential | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 0 | |
Segment losses | $ 630,000 | $ 542,000 |
Reporting Segments and Related Information - Revenue Components of Farming Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Revenue from External Customer [Line Items] | ||
Commercial/industrial revenues | $ 5,702 | $ 12,953 |
Income (loss) | (3,473) | 352 |
Farming Segment | ||
Revenue from External Customer [Line Items] | ||
Income (loss) | (892) | (285) |
Operating Segments | Farming Segment | ||
Revenue from External Customer [Line Items] | ||
Commercial/industrial revenues | 431 | 1,221 |
Operating Segments | Farming Segment | Almonds | ||
Revenue from External Customer [Line Items] | ||
Commercial/industrial revenues | 0 | 985 |
Operating Segments | Farming Segment | Pistachios | ||
Revenue from External Customer [Line Items] | ||
Commercial/industrial revenues | 256 | 199 |
Operating Segments | Farming Segment | Hay and other | ||
Revenue from External Customer [Line Items] | ||
Commercial/industrial revenues | $ 175 | $ 37 |
Reporting Segments and Related Information - Revenue Components of Ranch Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2017 |
Mar. 31, 2016 |
|
Revenue from External Customer [Line Items] | ||
Total revenues | $ 5,702 | $ 12,953 |
Income (loss) | (3,473) | 352 |
Ranch operations | ||
Revenue from External Customer [Line Items] | ||
Income (loss) | (412) | (509) |
Operating Segments | Ranch operations | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 1,081 | 838 |
Operating Segments | Ranch operations | Game management | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 301 | 310 |
Operating Segments | Ranch operations | Grazing | ||
Revenue from External Customer [Line Items] | ||
Total revenues | 424 | 250 |
Operating Segments | Ranch operations | Filming and other | ||
Revenue from External Customer [Line Items] | ||
Total revenues | $ 356 | $ 278 |
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