Tejon Ranch Co. (NYSE:TRC) today released the results of operations for the year ended December 31, 2011, with the Company showing an increase in revenue from operations of $27.6 million and a significant increase in net income attributable to common stockholders of more than $11.7 million. For the year ended December 31, 2011, the Company had net income attributable to common stockholders of $15,894,000, or $0.80 per common share, compared to net income of $4,175,000, or $0.22 per common share in 2010. Revenue from operations for the year ended December 31, 2011 was $63,098,000 compared to $35,513,000 of revenue for the same period during 2010. All per share references in this release are presented on a fully diluted basis.
For the fourth quarter of 2011, the Company had an increase in revenue and net income when compared to the same period of 2010. For the final three months of 2011, the Company had net income of $5,238,000, or $0.26 per common share, compared to a net loss of $1,193,000, or $0.06 per common share for the fourth quarter of 2010. Revenue from operations for the fourth quarter of 2011 was $19,815,000, compared to $10,883,000 of revenue during the same period in 2010.
“The Company’s operational performance showed continued improvement throughout 2011 led by improved commercial/industrial revenues and our record farming revenues,” said Robert A. Stine, President and CEO. “The Company also closed a one time sale of conservation easements for $15,750,000 during the year that helped the Company achieve a significant increase in net income for 2011. We believe our strong balance sheet will allow us to continue to grow and support our current and future real estate activities.”
Results of Operations for the Year Ended December 31, 2011:The improvement in net income attributable to common stockholders during 2011 is largely the result of an increase in revenues of $27,585,000. This increase in revenue was driven by the sale of conservation easements for $15,750,000, the recognition of a portion of revenue associated with a commercial land sale for $4,340,000 (sales price $4,988,000, the remaining portion to be recognized in 2012), higher oil revenues over the prior year of $5,541,000, and a $2,436,000 increase in farming revenues. Oil royalties improved due to higher market prices and to an increase in production throughout the year of approximately 242,000 barrels. Farming revenue improved due to a higher number of almonds being sold compared to the prior year and to improved grape production and grape prices during 2011. These revenue improvements were partially offset by an increase in operating and corporate expenses of $11,950,000. The increase in operating and corporate expense compared to 2010 is primarily due to an increase in stock compensation expense. During 2010, stock compensation expense included a $6,327,000 reversal of cost related to the modification of performance milestone grants, and in 2011 we recognized stock compensation expense of $5,507,000.