Tejon Ranch Co. Reports Third Quarter And Year-to-Date 2016 Results Of Operations

Tejon Ranch Co. (NYSE:TRC), a diversified real estate and agribusiness company, which is in the process of planning and entitling three master plan communities and executing the development of a large scale commercial center, today released its results of operations for the three- and nine-months ended September 30, 2016.

Quarter Ended September 30, 2016 Financial Highlights
  • Revenues from operations for the third quarter of 2016 totaled $13.1 million, an increase of $1.2 million, or 9%, compared to $11.9 million in revenues for the same period in 2015.
    • Pistachio revenues increased a net $3.6 million after recovering from the mild winter of 2015 that decimated 90% of our crop yields. The depressed 2015 crop prevented the possibility of having meaningful carryover crop sales in 2016. Comparatively, crop yields were 3.2 million pounds and 73 thousand pounds during 2016 and 2015, respectively.
    • Almond revenues decreased $2.4 million resulting from declines in market prices and timing of crops sales.
  • Equity in earnings from unconsolidated joint ventures for the third quarter of 2016 was $2.4 million, an increase of $0.3 million, or 15%, compared to $2.1 million for the same period in 2015. The increase was driven by higher fuel margins from our TA/Petro joint venture as a result of lower inventory costs. The joint venture also saw an increase in diesel and gasoline sales volume.
  • Net income attributable to common stockholders for the third quarter of 2016 was $0.3 million, representing net income per common share of $0.02, compared to net loss of $0.8 million, or loss per common share of $0.04, for the same period in 2015. All per share numbers in this release are diluted earnings per common share.

Year-to-Date Financial Highlights
  • Revenues from operations for the nine-months ended September 30, 2016 totaled $32.9 million, a decrease of $2.7 million, or 8%, compared to revenues of $35.6 million for the same period in 2015. The decrease in revenues was mainly due to the following:
    • Almond revenues decreased $4.4 million resulting from declining market prices and timing of crop sales relative to the same period in 2015.
    • Oil royalty revenues decreased $1.2 million due to declines in both the price per barrel of oil and production volume.
    • Offsetting the decreases in almond and oil royalty revenues were net increases in pistachio revenues of $3.1 million after recovering from the mild winter of 2015 that decimated 90% of our crop yields. The depressed 2015 crop prevented the possibility of having meaningful carryover crop sales in 2016. Comparatively, crop yields were 3.2 million pounds and 73 thousand pounds during 2016 and 2015, respectively.
  • Equity in earnings from unconsolidated joint ventures for the nine-months ended September 30, 2016 was $5.7 million, an increase of $0.8 million, or 16%, compared to $4.9 million for the same period in 2015. The increase was driven by higher fuel margins from our TA/Petro joint venture as a result of lower inventory costs. The joint venture also saw an increase in diesel and gasoline sales volume.
  • Net income attributable to common stockholders for the nine months ended September 30, 2016 was $0.8 million, representing earnings per common share of $0.04, compared to net income of $1.2 million, or earnings per common share of $0.06, for the same period in 2015.

2016 Operational Highlights
  • On October 27, 2016, the Kern County Planning Commission unanimously recommended approval of the company's Grapevine community by the Kern County Board of Supervisors after its review of the Environmental Impact Report and the Grapevine Specific and Community Plan, which is the final step in the local plan approval process. The company's master planned Grapevine community includes 12,000 residential units and 5.1 million square feet of commercial and industrial space. The Kern County Board of Supervisors is expected to take action on the recommendation in December 2016.
  • On August 6, 2016, we entered into a limited liability company agreement forming a joint venture with Majestic Realty Co. to purchase, own, and manage a fully-leased, 651,909-square-foot industrial building located at the Tejon Ranch Commerce Center. The joint venture purchased the building in September for $24.8 million which was financed through a $21.1 million promissory note guaranteed by both partners. The agreement is structured so that each member has a 50% interest.
  • On September 9, 2016, we entered into a limited liability agreement forming a joint venture with Majestic Reality Co. for the development of, ownership of, and management of a 480,480-square-foot industrial building at the Tejon Ranch Commerce Center. We are in the process of planning and designing the building. The agreement is structured so that each member has a 50% interest.

2016 Outlook:

We believe our capital structure provides a solid foundation for continued investment in ongoing and future projects. As of September 30, 2016, total capital, including long-term debt, was approximately $407.5 million. We also have cash and securities totaling approximately $31.0 million and $19.0 million available on our line of credit.

If you liked this article you might like

Insider Trading Alert - OZRK, CFI And TRC Traded By Insiders

Insider Trading Alert - KTEC, TRC And MDRX Traded By Insiders

Insider Trading Alert - TRC, JAZZ And EA Traded By Insiders

Insider Trading Alert - AGNC, EXAC And TRC Traded By Insiders

Insider Trading Alert - KTEC, TRC And WRI Traded By Insiders