Consolidated Tomoka Reports Third Quarter Earnings

Oct 20, 2010, 16:30 ET from Consolidated-Tomoka Land Co.

DAYTONA BEACH, Fla., Oct. 20 /PRNewswire-FirstCall/ -- Consolidated-Tomoka Land Co. (NYSE Amex: CTO) today reported a net loss of $176,993 or $0.03 earnings per basic share and earnings before depreciation, amortization and deferred taxes (EBDDT) of $1,789,261 or $0.31 per share for the quarter ended September 30, 2010.  The comparable numbers for the third quarter of 2009 were net income of $209,662 or $0.04 earnings per basic share and EBDDT of $952,783 or $0.17 per share.  For the nine months ended September 30, 2010, the net loss totaled $692,345 or $0.12 earnings per basic share, compared with net income of $719,677 or $0.13 earnings per basic share in the first nine months of 2009.  EBDDT totaled $2,331,551 or $0.41 per share in 2010's first nine months, compared with $2,944,818 or $0.51 per share in 2009 for the same period.

EBDDT is being provided to reflect the impact of the Company's business strategy of investing in income properties utilizing tax deferred exchanges.  This strategy generates significant amounts of depreciation and deferred taxes.  The Company believes EBDDT is useful, along with net income, to understanding the Company's operating results.

William H. McMunn, president and chief executive officer, stated, "Our local real estate market remains weak, mirroring the Florida and national economy. Going forward, our existing income property portfolio of credit-tenant leases, coupled with new leases in our Mason Commerce Center, should generate revenues sufficient to allow the Company to operate at or near breakeven. During the current real estate malaise, the Company has been actively working on new and improved residential and commercial land use entitlements and infrastructure improvements, such as roads, which we believe will benefit the value of the Company's real estate holdings when the market rebounds."

Consolidated-Tomoka Land Co. is a Florida-based company primarily engaged in converting Company owned agricultural lands into a portfolio of net lease income properties strategically located in the Southeast, through the efficient utilization of 1031 tax-deferred exchanges.  The Company has low long-term debt and generates over $9 million annually before tax cash flow from its real estate portfolio.  The Company also engages in selective self-development of targeted income properties. The Company's adopted strategy is designed to provide the financial strength and cash flow to weather difficult real estate cycles.  Visit our website at www.ctlc.com.

"Safe Harbor"

Certain statements contained in this press release (other than statements of historical fact) are forward-looking statements.  The words "believe," "estimate," "expect," "intend," "anticipate," "will," "could," "may," "should," "plan," "potential," "predict," "forecast," "project," and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made.  Forward-looking statements are made based upon management's expectations and beliefs concerning future developments and their potential effect upon the Company.  There can be no assurance that future developments will be in accordance with management's expectations or that the effect of future developments on the Company will be those anticipated by management.

The Company wishes to caution readers that the assumptions which form the basis for forward-looking statements with respect to or that may impact earnings for the quarter ended December 31, 2010, and thereafter include many factors that are beyond the Company's ability to control or estimate precisely.  These risks and uncertainties include, but are not limited to, the strength of the real estate market in the City of Daytona Beach in Volusia County, Florida; the impact of a prolonged recession or further downturn in economic conditions; our ability to successfully execute acquisition or development strategies; any loss of key management personnel; changes in local, regional and national economic conditions affecting the real estate development business and income properties; the impact of environmental and land use regulations; the impact of competitive real estate activity; variability in quarterly results due to the unpredictable timing of land sales; the loss of any major income property tenants; and the availability of capital.  Additional information concerning these and other factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the Company's Securities and Exchange Commission filings, including, but not limited to, the Company's Annual Report on Form 10-K. Copies of each filing may be obtained from the Company or the SEC.

While the Company periodically reassesses material trends and uncertainties affecting its results of operations and financial condition, the Company does not intend to review or revise any particular forward-looking statement referenced herein in light of future events.

Disclosures in this press release regarding the Company's third quarter financial results are preliminary and are subject to change in connection with the Company's preparation and filing of its Form 10-Q for the quarter ended September 30, 2010.  The financial information in this release reflects the Company's preliminary results subject to completion of the quarterly review process.  The final results for the quarter may differ from the preliminary results discussed above due to factors that include, but are not limited to, risks associated with final review of the results and preparation of financial statements.

This release refers to certain non-GAAP financial measures.  As required by the SEC, the Company has provided a reconciliation of these measures to the most directly comparable GAAP measures with this release.  Non-GAAP measures as the Company has calculated them may not be comparable to similarly titled measures reported by other companies.

EARNINGS NEWS RELEASE

QUARTER ENDED

SEPTEMBER 30,

SEPTEMBER 30,

2010

2009

REVENUES

$3,416,026

$4,344,610

NET INCOME (LOSS)

($176,993)

$209,662

BASIC & DILUTED EARNINGS (LOSS) PER SHARE:

 NET INCOME (LOSS)

($0.03)

$0.04

NINE MONTHS ENDED

SEPTEMBER 30,

SEPTEMBER 30,

2010

2009

REVENUES

$9,803,966

$13,454,067

NET INCOME (LOSS)

($692,345)

$719,677

BASIC & DILUTED EARNINGS (LOSS) PER SHARE:

 NET INCOME (LOSS)

($0.12)

$0.13

RECONCILIATION OF NET INCOME TO EARNINGS BEFORE

DEPRECIATION, AMORTIZATION AND DEFERRED TAXES (EBDDT)

QUARTER ENDED

SEPTEMBER 30,

SEPTEMBER 30,

2010

2009

NET INCOME (LOSS)

($176,993)

$209,662

ADD BACK:

   DEPRECIATION & AMORTIZATION

686,231

695,813

   DEFERRED TAXES

(1)

1,280,023

47,308

EARNINGS (LOSS) BEFORE DEPRECIATION,  AMORTIZATION          

    AND DEFERRED TAXES

$1,789,261

$952,783

BASIC WEIGHTED AVERAGE SHARES OUTSTANDING

5,723,980

5,723,268

BASIC EBDDT PER SHARE

$0.31

$0.17

NINE MONTHS ENDED

SEPTEMBER 30,

SEPTEMBER 30,

2010

2009

NET INCOME (LOSS)

($692,345)

$719,677

ADD BACK:

   DEPRECIATION & AMORTIZATION

2,066,031

2,063,970

   DEFERRED TAXES

(1)

957,865

161,171

EARNINGS (LOSS) BEFORE DEPRECIATION,  AMORTIZATION

    AND DEFERRED TAXES

$2,331,551

$2,944,818

BASIC WEIGHTED AVERAGE SHARES OUTSTANDING

5,723,733

5,724,336

BASIC EBDDT PER SHARE

$0.41

$0.51

EBDDT - EARNINGS BEFORE DEPRECIATION, AMORTIZATION, AND DEFERRED TAXES.  EBDDT IS NOT A MEASURE OF OPERATING RESULTS OR CASH FLOWS FROM OPERATING ACTIVITIES AS DEFINED BY U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.  FURTHER, EBDDT IS NOT NECESSARILY INDICATIVE OF CASH AVAILABILITY TO FUND CASH NEEDS AND SHOULD NOT BE CONSIDERED AS AN ALTERNATIVE TO CASH FLOW AS A MEASURE OF LIQUIDITY.  THE COMPANY BELIEVES, HOWEVER, THAT EBDDT PROVIDES RELEVANT INFORMATION ABOUT OPERATIONS AND IS USEFUL, ALONG WITH NET INCOME, FOR AN UNDERSTANDING OF THE COMPANY'S OPERATING RESULTS.

EBDDT IS CALCULATED BY ADDING DEPRECIATION, AMORTIZATION  AND THE CHANGE IN DEFERRED INCOME TAXES TO NET INCOME AS THEY REPRESENT NON-CASH CHARGES.

(1) THE ADD BACK FOR DEFERRED TAXES, BOTH FOR THE QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2010, INCLUDES AN APPROXIMATE $1,000,000 ADD BACK ASSOCIATED WITH ACCELERATED DEPRECIATION RESULTING FROM AMENDED TAX RETURNS FILED BASED ON A COST SEGREGATION STUDY PERFORMED ON THE COMPANY'S INCOME AND GOLF PROPERTIES.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

SEPTEMBER 30,

DECEMBER 31,

2010

2009

ASSETS

$

$

  Cash

139,064

266,669

  Investment Securities

5,145,033

4,966,864

  Refundable Income Taxes

1,754,394

433,006

  Land and Development Costs

24,250,413

26,700,494

  Intangible Assets

4,272,771

4,588,649

  Other Assets

7,827,069

5,634,017

43,388,744

42,589,699

 Property, Plant and Equipment:

  Land, Timber and Subsurface Interests

14,622,841

13,960,019

  Golf Buildings, Improvements and Equipment

11,811,971

11,798,679

  Income Properties Land, Buildings and Improvements

119,935,128

119,800,091

  Other Building, Equipment and Land Improvements

3,262,345

3,262,345

  Construction in Process

42,927

--

   Total Property, Plant and Equipment

149,675,212

148,821,134

  Less, Accumulated Depreciation and Amortization

(16,539,573)

(14,835,701)

   Net - Property, Plant and Equipment

133,135,639

133,985,433

     TOTAL ASSETS

176,524,383

176,575,132

LIABILITIES

  Accounts Payable

609,927

864,186

  Accrued Liabilities

8,870,926

7,385,250

  Accrued Stock Based Compensation

762,491

1,428,641

  Pension Liability

1,208,238

1,377,719

  Deferred Income Taxes

35,233,233

34,275,368

  Notes Payable

12,591,639

13,210,389

     TOTAL LIABILITIES

59,276,454

58,541,553

SHAREHOLDERS' EQUITY

  Common Stock

5,723,980

5,723,268

  Additional Paid in Capital

5,157,588

5,131,246

  Retained Earnings

107,775,170

108,639,227

  Accumulated Other Comprehensive Loss

(1,408,809)

(1,460,162)

     TOTAL SHAREHOLDERS' EQUITY

117,247,929

118,033,579

     TOTAL LIABILITIES AND

     SHAREHOLDERS' EQUITY

176,524,383

176,575,132

SOURCE Consolidated-Tomoka Land Co.



RELATED LINKS

http://www.consolidatedtomoka.com