Griffin Land & Nurseries Inc. (GRIF, Financial) filed Quarterly Report for the period ended 2009-08-29.
Griffin Land & Nurseries Inc. based in New York New York through its subsidiaries engages in real estate and landscape nursery operations in the United States. The company also has investments in Centaur Media plc a public company based in the United Kingdom and listed on the London Stock Exchange and Shemin Nurseries Holdings Corp. a private company that operates a landscape nursery distribution business through its subsidiary Shemin Nurseries Inc. Griffin Land & Nurseries Inc. has a market cap of $160.8 million; its shares were traded at around $31.65 with and P/S ratio of 3.7. The dividend yield of Griffin Land & Nurseries Inc. stocks is 1.3%.
reflects an increase of approximately $1.0 million in the operating loss incurred by Imperial, an increase of approximately $0.1 million in interest expense and a decrease of $0.5 million in investment income, partially offset by an increase of $0.2 million in operating profit at Griffin Land. Griffin s general corporate expense was essentially unchanged in the 2009 nine month period as compared to the 2008 nine month period. The higher operating loss at Imperial principally reflects lower gross profit due to: (i) lower net sales; (ii) lower margins on sales; and (iii) a higher charge for unsaleable inventories. Lower selling, general and administrative expenses at Imperial partially offset the lower gross profit. Griffin Land s increase in operating profit reflects higher profit from its leasing operations partially offset by the effect of not having any property sales in the 2009 nine month period. Griffin Land reported a gain of $0.9 million from property sales in the 2008 nine month period. The increase in interest expense reflects a higher amount of debt outstanding due to new borrowings entered into this year. The decrease in investment income reflects a lower average amount of short-term investments in the 2009 nine month period as compared to the 2008 nine month period and lower dividend income from Griffin s investment in Centaur Media plc (“Centaur”).
Total revenue at Griffin Land increased from $4.0 million in the 2008 third quarter to $4.2 million in the 2009 third quarter reflecting an increase of $0.5 million of rental revenue from leasing operations offset by a $0.3 million decrease in revenue from property sales. The increase in rental revenue principally reflects: (i) $0.5 million from leasing previously vacant space; and (ii) $0.3 million from leasing parts of two newly constructed facilities in New England Tradeport (“Tradeport”), Griffin Land s industrial park in Windsor and East Granby, Connecticut; partially offset by (iii) a decrease of $0.3 million from leases that expired and were not renewed. The two new Tradeport facilities are an approximate 100,000 square foot building that was completed and placed in service in the 2008 fourth quarter and an approximate 304,000 square foot build-to-suit facility that was completed and placed in service in August 2009. The new build-to-suit facility was built this year upon entering into a ten-year lease with Tire Rack, Inc. (“Tire Rack”), a private company. Tire Rack is initially leasing approximately 257,000 square feet of this new building. Under certain conditions, but no later than the beginning of the sixth year of the lease, Tire Rack is required to lease the entire building. The lease also contains provisions for a potential expansion that would increase the size of the building up to approximately 450,000 square feet.
The increase of approximately $0.2 million in Griffin Land s profit from leasing activities before general and administrative expenses and before depreciation and amortization expense principally reflects the $0.5 million increase in rental revenue partially offset by a $0.3 million increase in costs related to rental revenue excluding depreciation and amortization expense. The higher costs principally reflect $0.1 million related to the two new Tradeport buildings that were placed in service after the end of the 2008 third quarter, an increase of $0.1 million of expenses at all of Griffin Land s other properties and $0.1 million to write off deferred costs related to transactions that will not be closed.
The $0.1 million increase in Imperial s operating loss principally reflects a $0.2 million decrease in gross profit partially offset by a $0.1 million decrease in selling, general and administrative expenses. The decrease in gross profit principally reflects $0.2 million due to lower pricing on sales from Imperial s Connecticut farm and an increase of $0.2 million for a charge for unsaleable inventories, which increased from approximately $0.3 million in the 2008 third quarter to $0.5 million in the 2009 third quarter, partially offset by a $0.2 million reduction to cost of goods sold upon the completion of the shutdown of Imperial s Florida farm. The reduction in cost of goods sold related to the shutdown of the Florida farm reflects the difference between the estimated inventory reserve at year end 2008 and actual results in 2009.
Total revenue at Griffin Land increased from $12.1 million in the 2008 nine month period to $12.6 million in the 2009 nine month period, reflecting an increase of approximately $1.6 million of rental revenue from its leasing operations partially offset by a decrease of approximately $1.1 million in revenue from property sales. The increase in rental revenue principally reflects: (i) $1.5 million from leasing previously vacant space; (ii) $0.5 million from the two newly constructed facilities in Tradeport; partially offset by (iii) a decrease of approximately $0.5 million from leases that expired and were not renewed.
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Griffin Land & Nurseries Inc. based in New York New York through its subsidiaries engages in real estate and landscape nursery operations in the United States. The company also has investments in Centaur Media plc a public company based in the United Kingdom and listed on the London Stock Exchange and Shemin Nurseries Holdings Corp. a private company that operates a landscape nursery distribution business through its subsidiary Shemin Nurseries Inc. Griffin Land & Nurseries Inc. has a market cap of $160.8 million; its shares were traded at around $31.65 with and P/S ratio of 3.7. The dividend yield of Griffin Land & Nurseries Inc. stocks is 1.3%.
Highlight of Business Operations:
Griffin incurred a net loss for the thirteen weeks ended August 29, 2009 (the “2009 third quarter”) of $1.4 million as compared to a net loss of $1.3 million for the thirteen weeks ended August 30, 2008 (the “2008 third quarter”). The higher net loss in the 2009 third quarter principally reflects an increase of approximately $0.1 million in the operating loss incurred by Imperial, an increase of approximately $0.1 million in interest expense and a decrease of approximately $0.1 million in investment income in the 2009 third quarter as compared to the 2008 third quarter, partially offset by the tax effects of these items. Operating profit at Griffin Land and general corporate expense were essentially unchanged in the 2009 third quarter as compared to the 2008 third quarter. The higher operating loss at Imperial principally reflects lower net sales and a decrease in margins on sales, partially offset by lower selling, general and administrative expenses in the current quarter. Griffin Land s operating results reflect an increase in results from its leasing operations offset by the effect of not having any property sales in the 2009 third quarter. Griffin Land reported a gain of $0.3 million from property sales in the 2008 third quarter. The increase in interest expense reflects a higher amount of debt outstanding in the 2009 third quarter as compared to the 2008 third quarter. The lower investment income reflects a lower average amount of short-term investments on hand in the 2009 third quarter as compared to the 2008 third quarter.reflects an increase of approximately $1.0 million in the operating loss incurred by Imperial, an increase of approximately $0.1 million in interest expense and a decrease of $0.5 million in investment income, partially offset by an increase of $0.2 million in operating profit at Griffin Land. Griffin s general corporate expense was essentially unchanged in the 2009 nine month period as compared to the 2008 nine month period. The higher operating loss at Imperial principally reflects lower gross profit due to: (i) lower net sales; (ii) lower margins on sales; and (iii) a higher charge for unsaleable inventories. Lower selling, general and administrative expenses at Imperial partially offset the lower gross profit. Griffin Land s increase in operating profit reflects higher profit from its leasing operations partially offset by the effect of not having any property sales in the 2009 nine month period. Griffin Land reported a gain of $0.9 million from property sales in the 2008 nine month period. The increase in interest expense reflects a higher amount of debt outstanding due to new borrowings entered into this year. The decrease in investment income reflects a lower average amount of short-term investments in the 2009 nine month period as compared to the 2008 nine month period and lower dividend income from Griffin s investment in Centaur Media plc (“Centaur”).
Total revenue at Griffin Land increased from $4.0 million in the 2008 third quarter to $4.2 million in the 2009 third quarter reflecting an increase of $0.5 million of rental revenue from leasing operations offset by a $0.3 million decrease in revenue from property sales. The increase in rental revenue principally reflects: (i) $0.5 million from leasing previously vacant space; and (ii) $0.3 million from leasing parts of two newly constructed facilities in New England Tradeport (“Tradeport”), Griffin Land s industrial park in Windsor and East Granby, Connecticut; partially offset by (iii) a decrease of $0.3 million from leases that expired and were not renewed. The two new Tradeport facilities are an approximate 100,000 square foot building that was completed and placed in service in the 2008 fourth quarter and an approximate 304,000 square foot build-to-suit facility that was completed and placed in service in August 2009. The new build-to-suit facility was built this year upon entering into a ten-year lease with Tire Rack, Inc. (“Tire Rack”), a private company. Tire Rack is initially leasing approximately 257,000 square feet of this new building. Under certain conditions, but no later than the beginning of the sixth year of the lease, Tire Rack is required to lease the entire building. The lease also contains provisions for a potential expansion that would increase the size of the building up to approximately 450,000 square feet.
The increase of approximately $0.2 million in Griffin Land s profit from leasing activities before general and administrative expenses and before depreciation and amortization expense principally reflects the $0.5 million increase in rental revenue partially offset by a $0.3 million increase in costs related to rental revenue excluding depreciation and amortization expense. The higher costs principally reflect $0.1 million related to the two new Tradeport buildings that were placed in service after the end of the 2008 third quarter, an increase of $0.1 million of expenses at all of Griffin Land s other properties and $0.1 million to write off deferred costs related to transactions that will not be closed.
The $0.1 million increase in Imperial s operating loss principally reflects a $0.2 million decrease in gross profit partially offset by a $0.1 million decrease in selling, general and administrative expenses. The decrease in gross profit principally reflects $0.2 million due to lower pricing on sales from Imperial s Connecticut farm and an increase of $0.2 million for a charge for unsaleable inventories, which increased from approximately $0.3 million in the 2008 third quarter to $0.5 million in the 2009 third quarter, partially offset by a $0.2 million reduction to cost of goods sold upon the completion of the shutdown of Imperial s Florida farm. The reduction in cost of goods sold related to the shutdown of the Florida farm reflects the difference between the estimated inventory reserve at year end 2008 and actual results in 2009.
Total revenue at Griffin Land increased from $12.1 million in the 2008 nine month period to $12.6 million in the 2009 nine month period, reflecting an increase of approximately $1.6 million of rental revenue from its leasing operations partially offset by a decrease of approximately $1.1 million in revenue from property sales. The increase in rental revenue principally reflects: (i) $1.5 million from leasing previously vacant space; (ii) $0.5 million from the two newly constructed facilities in Tradeport; partially offset by (iii) a decrease of approximately $0.5 million from leases that expired and were not renewed.
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