(Source: Business Wire)
Tejon Ranch Co. (NYSE:TRC) today announced a net loss from operations
for the third quarter of 2009, which ended September 30, 2009, and a net
loss from operations for the first nine months of 2009, compared to the
same respective time frames in 2008. For the third quarter of 2009, the
Company had a net loss of $288,000, or $0.02 per common share, compared
to net income of $3,884,000, or $0.22 per common share during the third
quarter of 2008. Revenue from operations for the third quarter of 2009
was $10,250,000 compared to $14,482,000 of revenue during the same
period in 2008. All per share references in this release are presented
on a fully-diluted basis.
For the first nine months of 2009, the Company had a net loss of
$3,115,000, or $0.18 per common share, compared to net income of
$4,135,000, or $0.24 per common share for the first nine months of 2008.
Revenue from operations for the nine months ending September 30, 2009
was $18,423,000 compared to $29,749,000 of revenue during the same
period of 2008.
Results of Operations for the First Nine Months of 2009:
The decline in revenue during the first nine months of 2009 resulted
primarily from decreases in farming revenue, commercial/industrial
revenue and land sales. Commercial/industrial revenue decreased
$10,114,000, primarily due to the absence of land sales during the first
nine months of 2009, while the same period of 2008 included revenues of
$6,589,000 from land sales. Land sales activity declined largely due to
the economic recession and the increased availability of
warehouse/distribution sites in the Inland Empire region of Southern
California. Oil and mineral royalties declined $2,941,000 during the
period due largely to a decrease in oil royalties that are tied directly
to the market price for oil, which declined compared to the same period
of 2008. Revenues from our power plant lease also declined during the
first nine months of 2009 due to a decrease in percentage rents as a
result of lower electricity rates. Farming revenues decreased $1,406,000
during the first nine months of 2009, compared to the same period in
2008, primarily because fewer prior year crop almonds were available for
sale during the period. A reduction in 2009 pistachio revenue of
$181,000 and a reduction in 2009 grape revenues of $141,000 also
contributed to this decline.
The decline in earnings for the first nine months of 2009 is
attributable to the decrease in revenues described above. However, that
decline in revenue was partially offset by lower operating expenses in
our commercial/industrial and farming segments, and in our corporate
operations. Expenses within our commercial/industrial segment decreased
$1,272,000 during the first nine months of 2009, due primarily to a
reduction in cost of sales of $1,152,000 related to land sale
transactions in 2008 and to lower professional service fees. Farming
costs declined $280,000 during the first nine months of 2009, compared
to the same period in 2008, due to a decrease in cost of sales for prior
year crop almonds and a decline in fuel costs. Corporate general and
administrative costs fell $366,000 during the period due to decreases in
compensation costs related to incentive compensation and a decrease in
professional service fees due to the timing of incurrence of these costs.
Results of Operations for the Third Quarter of 2009:
Revenues from operations fell $4,232,000 during the third quarter of
2009, as compared to the same period of 2008. The decline is primarily
attributable to a $4,000,000 reduction in commercial/industrial revenue
due to a lack of land sale revenue and a decrease in oil and mineral
royalties of $1,528,000 due to reduced oil prices. Farming revenues
decreased $426,000 as a result of the sale of fewer 2009 crop year
almonds in the third quarter as compared to the third quarter of 2008.
Earnings fell during the third quarter of 2009, as compared to the same
period of 2008, due primarily to the decline in revenues just described
and increases in operating expense. Corporate expenses increased
$903,000 in the third quarter of 2009, compared to the third quarter of
2008, mainly driven by compensation cost increases of $929,000.
Compensation costs in the third quarter of 2008 were reduced
significantly as previously accrued incentive stock compensation costs
were reversed in that quarter as the related milestone targets were not
achieved. Expenses for the commercial/industrial segment increased
$208,000 during the quarter due to higher compensation cost and higher
water costs related to development activities. Farming segment costs saw
a small increase during the quarter due primarily to higher compensation
costs and water costs.
2009 Outlook:
During the remainder of 2009 the Company anticipates the completion of
phase one infrastructure at the Tejon Industrial Complex and continued
investments in our joint ventures. Our financial position will allow us
to continue to pursue these investments as well as our long-term
strategies of land entitlement, development, and conservation. On
September 30, 2009, we had cash and securities totaling approximately
$37.5 million to meet short-term funding or working capital needs.
