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ConsolidatedTomoka Land Co Reports Operating Results (10-Q)

May 10, 2010 | About:

ConsolidatedTomoka Land Co (CTO) filed Quarterly Report for the period ended 2010-05-04.

Consolidatedtomoka Land Co has a market cap of $177.18 million; its shares were traded at around $30.96 with a P/E ratio of 344 and P/S ratio of 10.33. The dividend yield of Consolidatedtomoka Land Co stocks is 0.13%.CTO is in the portfolios of David Winters of Wintergreen Advisors, Third Avenue Management, Chuck Royce of Royce& Associates, Jean-Marie Eveillard of Arnhold & S. Bleichroeder Advisers, LLC.

Highlight of Business Operations:

Net income for the quarter ended March 31, 2010 totaled $77,819, equivalent to $0.01 per share. This net income represented a downturn from net income of $322,206, equivalent to $0.06 per share, recorded during the first quarter of 2009. The unfavorable earnings when compared to the prior year s same period were primarily attributable to adverse results from golf operations due to extreme weather conditions experienced during the period, combined with higher general and administrative costs. No land sales transactions were closed in either of the periods.

Real estate operations reported a loss of $191,438 during the first quarter of 2010. This loss represented a 20% improvement over the loss of $238,035 in 2009 s same period. The losses during both periods came as the result of no real estate closings during the periods. Revenues of $53,554 and $6,093 were realized in the first quarter of 2010 and 2009, respectively, and were primarily associated with oil royalties received.

Revenues from income properties totaled $2,416,380 during the first quarter of 2010 and represented a 3% increase over revenues totaling $2,338,970 realized during 2009 s same period. The rise in revenues resulted from additional rents received on the Company s two self-developed properties in Daytona Beach, offset by the loss of rents from the Lakeland, Florida, Barnes & Noble property upon the expiration of the lease at the end of January 2010. Income properties costs and expenses rose 22% during the period on costs, including depreciation, from the Company s two self-developed properties. Income properties costs and expenses totaled $602,715 and $492,296 for the first quarters of 2010 and 2009, respectively. The increases in both revenues and costs and expenses resulted in a 2% decline in income to $1,813,665. Income the same period of 2009 totaled $1,846,674.

Harsh weather conditions, including record cold and rain, experienced during the first quarter of 2010 resulted in significantly increased losses from golf operations when compared to the prior year. Losses from golf operations amounting to $361,539 and $144,427 were posted in the first quarters of 2010 and 2009, respectively. Revenues decreased 18% to $1,168,881 in 2010 on a 17% decline in the number of rounds played during the period, coupled with a 6% fall in the average rate paid per round played. Revenues totaling $1,422,767 were realized in the first quarter of 2009. Golf operations costs and expenses totaled $1,530,420 and represented a 2% decrease from the prior year s same period costs and expenses totaling $1,567,194. The reduction of costs and expenses was achieved due to the reduced activity during the period.

Cash, restricted cash and investment securities totaled $5,244,408 at March 31, 2010. This balance was in line with the $5,233,533 on the balance sheet at December 31, 2009, while notes payable increased $263,627 during the three-month period to $13,474,016. The use of these funds was primarily centered on the continuation of our hay conversion program, with approximately $310,000 spent on this process during the first quarter. Additionally, funds totaling $141,000 were expended on strategic land planning and obtaining land entitlements. A quarterly dividend of $57,233, equivalent to $0.01 per share, was paid during the period.

Capital expenditures planned for the remainder of 2010 are projected to approximate $5,800,000. These expenditures include $2,700,000 for the acquisition of approximately 10 acres of land through the Internal Revenue Code Section 1033 involuntary conversion under threat of condemnation tax deferral provisions, $1,900,000 for the continuation of our hay conversion program and $880,000 for funding of road construction. Additional funds will be expended on tenant improvements on our self-developed income properties and the recently vacated property in Lakeland, Florida, as leases are secured. Other than the estimated $880,000 commitment to road construction, capital expenditures can be reduced at our discretion based on operating cash needs. As additional funds become available through qualified sales, we expect to reinvest in additional real estate opportunities.

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