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Tejon Ranch Co. (NYSE:TRC) today released the results of operations for the six months ended June 30, 2012, with the Company showing net income attributable to common stockholders of $393,000, or $0.02 per common share, compared to net income attributable to common stockholders of $8,098,000, or $0.41 per common share, for the same period in 2011. Revenue from operations for the six months ended June 30, 2012 was $17,428,000, compared to $28,518,000 of revenue for the same period during 2011. All per share references in this release are presented on a fully diluted basis.
For the second quarter ended June 30, 2012, the Company had net income attributable to common stockholders of $118,000, or $0.01 per common share, compared to a net loss of $638,000, or $0.03 per common share during the second quarter of 2011. Revenue from operations for the second quarter of 2012 was $7,849,000 compared to $5,872,000 of revenue during the same period of 2011.
Results of Operations for the First Six Months of 2012:
The decline in net income attributable to common stockholders, and revenue from operations during the first six months of 2012, when compared to the same period of 2011, is primarily due to the recognition of $15,750,000 in income during the first quarter of 2011 that came from the closing of conservation easement sales. On a comparison basis, excluding the sale of conservation easements during the first quarter of 2011, revenue from operations increased during the first six months of 2012. Commercial/industrial revenue increased $3,164,000 during the first six months of 2012, when compared to the same period in 2011, due to growth in oil and gas revenue of $2,610,000 resulting from an increase in production and pricing, and to the recognition of deferred revenue related to the Caterpillar land sale in 2011. Farming revenues also increased during the first six months of 2012, when compared to 2011, due primarily to an increase in pistachio revenues related to the sale of 2011 crop pistachios during 2012 and to positive price adjustments received on pistachios sold. We also saw an improvement in equity in earnings of unconsolidated joint ventures during the period as a result of improved operating margins at our Petro/TA joint venture due to higher gasoline sales, and to improved revenues in our Rockefeller joint venture coming from the full lease up of a building with Dollar General in late 2011. Contributing to the decline in net income during the first six months of 2012 was an overall increase in operating expense of $1,467,000. This increase in expense was driven by higher compensation cost due to the timing of hiring employees in 2011 and early 2012 and the recognition of additional stock compensation costs related to the vesting and the timing of vesting of milestone performance grants.