Tejon Ranch Co., or the Company, (NYSE:TRC), a diversified real
estate development and agribusiness company, today announced
financial results for the three and nine-months ended
September 30, 2024.
“In the third quarter of 2024, we continued the momentum in key
areas of the company's real estate portfolio. The company continues
to make progress toward the opening of our first multi-family
apartment community, Terra Vista at Tejon, during the first half of
2025. The company also announced a new joint-venture with Dedeaux
Properties to develop a 510,500 square foot building in Tejon Ranch
Commerce Center. The Outlets at Tejon celebrated their 10th
anniversary and currently is over 90% occupied.” said Gregory S.
Bielli, President & CEO of Tejon Ranch Co.
Commercial/Industrial Real Estate
Highlights
- The Tejon Ranch Commerce Center, or
TRCC, industrial portfolio, through the Company's joint venture
partnerships, consists of 2.8 million square feet of gross
leasable area (GLA), and is 100% leased. In total, TRCC comprises
7.1 million square feet of GLA.
- TRCC commercial portfolio, wholly owned
and through joint venture partnerships, comprises 620,907 square
feet of GLA and is 95% leased.
- Construction of Terra Vista at Tejon
Phase 1, the Company's multi-family residential development located
in TRCC, is underway. Phase 1 includes 228 of the planned 495
residential units, with the first units becoming available in the
first half of 2025 and the remaining units in this phase coming
online soon thereafter. See www.tejonranchliving.com for further
information.
- Construction of a new distribution
facility for Nestlé USA is underway on the east side of TRCC, which
will total more than 700,000 square feet.
- Outlets at Tejon is celebrating its
10-year anniversary in 2024, with occupancy over 90% as of
September 30, 2024.
- On October 4, 2024, a new joint venture
with Dedeaux Properties was formed to develop, manage, and operate
an industrial building of 510,500 square feet of space at
TRCC-East.
Third Quarter
2024 Financial Results
- GAAP net loss attributable to common
stockholders for the third quarter of 2024 was $1.8 million, or net
loss per share attributable to common stockholders, basic and
diluted, of $0.07. For the third quarter of 2023, the Company had
net loss attributable to common stockholders of $0.3 million, or
net loss per share attributable to common stockholders, basic and
diluted, of $0.01.
- The primary driver of this decrease of
$1.5 million was the lack of pistachio crop yield in 2024,
primarily due to insufficient chilling hours, coupled with 2024
being the down-production year following a substantial harvest last
season. Historically, the pistachio harvest begins in the third
quarter, but in 2023, the harvest was delayed due to unusual
weather conditions. This delay impacted the timing of cost
recognition, resulting in lower overall farming costs for the third
quarter of 2023.
- The above decrease was partially offset
by the increase of $2.2 million in Equity in earnings of
unconsolidated joint ventures mainly related to improved fuel
margins at the Company's TA/Petro joint venture.
- Revenues and other income, including
equity in earnings of unconsolidated joint ventures, for the third
quarter of 2024 were $14.6 million, compared with $12.0 million for
the third quarter of 2023.
- The primary driver of this increase was
a $2.2 million increase of equity in earnings of unconsolidated
joint ventures, due to the improved fuel margins at the Company's
TA/Petro joint venture.
- Adjusted EBITDA, a non-GAAP measure,
was $5.6 million for the third quarter ended September 30,
2024, compared with $5.7 million for the same period in 2023.
Tejon Ranch Co. provides Adjusted EBITDA, a non-GAAP financial
measure, because management believes it offers additional
information for monitoring the Company's cash flow performance. A
table providing a reconciliation of Adjusted EBITDA to its most
comparable GAAP measure, as well as an explanation of, and
important disclosures about, this non-GAAP measure, is included in
the tables at the end of this press release.
Year-to-Date Financial Results
- Net loss attributable to common
stockholders for the first nine months of 2024 was $1.8 million, or
net loss per share attributed to common stockholders, basic and
diluted, of $0.07, compared with net income attributable to common
stockholders of $1.7 million, or net income per share attributed to
common stockholders, basic and diluted, of $0.06, for the first
nine months of 2023.
- The primary factor driving this
change was the reduction in operating profits within the farming
segment of $4,365,000 mainly due to 2024 being a down production
year for pistachio crops as stated above.
- Revenues and other income, for the
first nine months of 2024, including equity in earnings of
unconsolidated joint ventures, totaled $33.2 million, compared with
$35.2 million for the first nine months of 2023. Factors impacting
the year-to-date results include:
- Mineral resources segment revenues
were $7.7 million for the first nine months of 2024, a decrease of
$3.9 million, or 34%, from $11.6 million for the first nine months
of 2023. The reduction in revenues is primarily attributed to a
decline in water sales revenue of $3.4 million due to back-to-back
strong rainfall years in California, which severely limited water
sales opportunities.
- The above decrease was partially offset
by an increase in equity in earnings of unconsolidated joint
ventures, and the main driver of the improved results was related
to higher fuel margins at the TA/Petro joint venture.
Liquidity and Capital Resources
- As of September 30, 2024, total
capitalization, including pro rata share (PRS) of unconsolidated
joint venture debt, was approximately $643.1 million, consisting of
an equity market capitalization of $470.6 million and $172.5
million of debt, and our debt to total capitalization was 26.8%. As
of September 30, 2024, the Company had cash and securities
totaling approximately $41.3 million and $100.1 million available
on its line of credit, for total liquidity of $141.3 million. The
ratio of total debt including pro rata share of unconsolidated
joint venture debt, net of cash and securities, of $131.2 million,
to trailing twelve months adjusted EBITDA of $17.8 million was
7.4x.
2024 Outlook:
The Company will continue to strategically pursue
commercial/industrial development, multi-family development,
leasing, sales, and investment within TRCC and its joint ventures.
The Company also will continue to invest in advancing its
residential projects, including Mountain Village at Tejon Ranch,
Centennial at Tejon Ranch and Grapevine at Tejon Ranch.
California is one of the most highly regulated states in which
to engage in real estate development and, as such, natural delays,
including those resulting from litigation, can be reasonably
anticipated. Accordingly, throughout the next few years, the
Company expects net income to fluctuate from year-to-year based on
the above-mentioned activity, along with commodity prices,
production within its farming and mineral resources segments, and
the timing of land sales and leasing of land within its industrial
developments.
Water sales opportunities each year are impacted by the total
precipitation and snowpack runoff in Northern California from
winter storms, as well as State Water Project, or SWP, allocations.
The current SWP allocation is at 40% of contract amounts.
The Company's farming operations in 2024 continue to be impacted
by higher costs of production, such as fuel costs, fertilizer
costs, pest control costs, and labor costs. The almond industry is
estimating the 2024 almond crop at 2.6 billion pounds. This
estimate along with a lower inventory carry forward has helped to
improve pricing. The late spring rains negatively impacted 2024
grape production as the rains occurred during the grape bloom. The
timing of the rains also increased cultural costs within grapes to
fight higher levels of mildew in the vineyards.
About Tejon Ranch Co.
Tejon Ranch Co. (NYSE: TRC) is a diversified real estate
development and agribusiness company, whose principal asset is its
270,000-acre land holding located approximately 60 miles north of
Los Angeles and 15 miles south of Bakersfield.
More information about Tejon Ranch Co. can be found on the
Company's website at www.tejonranch.com.
Forward Looking Statements:
The statements contained herein, which are not historical facts,
are forward-looking statements based on economic forecasts,
strategic plans and other factors, which by their nature involve
risk and uncertainties. In particular, among the factors that could
cause actual results to differ materially are the following:
business conditions and the general economy, future commodity
prices and yields, external market forces, the ability to obtain
various governmental entitlements and permits, interest rates, and
other risks inherent in real estate and agriculture businesses. For
further information on factors that could affect the Company, the
reader should refer to the Company’s filings with the Securities
and Exchange Commission.
(Financial tables follow)
TEJON RANCH CO. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(In thousands, except per share data) |
|
|
September 30, 2024 |
|
December 31, 2023 |
|
(unaudited) |
|
|
ASSETS |
|
|
|
Current
Assets: |
|
|
|
Cash and cash equivalents |
$ |
27,369 |
|
|
$ |
31,907 |
|
Marketable securities - available-for-sale |
|
13,892 |
|
|
|
32,556 |
|
Accounts receivable |
|
2,783 |
|
|
|
8,352 |
|
Inventories |
|
7,550 |
|
|
|
3,493 |
|
Prepaid expenses and other current assets |
|
4,053 |
|
|
|
3,502 |
|
Total
current assets |
|
55,647 |
|
|
|
79,810 |
|
Real
estate and improvements - held for lease, net |
|
16,340 |
|
|
|
16,609 |
|
Real
estate development (includes $123,302 at September 30, 2024
and $119,788 at December 31, 2023, attributable to CFL) |
|
374,341 |
|
|
|
337,257 |
|
Property
and equipment, net |
|
56,760 |
|
|
|
53,985 |
|
Investments in unconsolidated joint ventures |
|
34,429 |
|
|
|
33,648 |
|
Net
investment in water assets |
|
56,024 |
|
|
|
52,130 |
|
Other
assets |
|
4,496 |
|
|
|
4,084 |
|
TOTAL
ASSETS |
$ |
598,037 |
|
|
$ |
577,523 |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
Current
Liabilities: |
|
|
|
Trade accounts payable |
$ |
11,283 |
|
|
$ |
6,457 |
|
Accrued liabilities and other |
|
6,565 |
|
|
|
3,214 |
|
Deferred income |
|
1,721 |
|
|
|
1,891 |
|
Total
current liabilities |
|
19,569 |
|
|
|
11,562 |
|
Revolving line of credit |
|
59,942 |
|
|
|
47,942 |
|
Long-term deferred gains |
|
11,447 |
|
|
|
11,447 |
|
Deferred
tax liability |
|
8,282 |
|
|
|
8,269 |
|
Other
liabilities |
|
15,114 |
|
|
|
15,207 |
|
Total liabilities |
|
114,354 |
|
|
|
94,427 |
|
Commitments and contingencies |
|
|
|
Equity: |
|
|
|
Tejon Ranch Co. Stockholders’ Equity |
|
|
|
Common stock, $0.50 par value per share: |
|
|
|
Authorized shares - 50,000,000 |
|
|
|
Issued
and outstanding shares - 26,814,680 at September 30, 2024 and
26,770,545 at December 31, 2023 |
|
13,408 |
|
|
|
13,386 |
|
Additional paid-in capital |
|
347,939 |
|
|
|
345,609 |
|
Accumulated other comprehensive loss |
|
(142 |
) |
|
|
(171 |
) |
Retained earnings |
|
107,115 |
|
|
|
108,908 |
|
Total Tejon Ranch Co. Stockholders’ Equity |
|
468,320 |
|
|
|
467,732 |
|
Non-controlling interest |
|
15,363 |
|
|
|
15,364 |
|
Total
equity |
|
483,683 |
|
|
|
483,096 |
|
TOTAL
LIABILITIES AND EQUITY |
$ |
598,037 |
|
|
$ |
577,523 |
|
|
TEJON RANCH CO. AND SUBSIDIARIESUNAUDITED
CONSOLIDATED STATEMENTS OF OPERATIONS($ in thousands,
except per share amounts) |
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues: |
|
|
|
|
|
|
|
Real estate - commercial/industrial |
$ |
3,002 |
|
|
$ |
3,397 |
|
|
$ |
8,497 |
|
|
$ |
8,706 |
|
Mineral resources |
|
3,166 |
|
|
|
3,118 |
|
|
|
7,687 |
|
|
|
11,630 |
|
Farming |
|
3,242 |
|
|
|
2,642 |
|
|
|
4,249 |
|
|
|
4,852 |
|
Ranch operations |
|
1,446 |
|
|
|
1,052 |
|
|
|
3,518 |
|
|
|
3,384 |
|
Total revenues |
|
10,856 |
|
|
|
10,209 |
|
|
|
23,951 |
|
|
|
28,572 |
|
Costs
and Expenses: |
|
|
|
|
|
|
|
Real estate - commercial/industrial |
|
2,088 |
|
|
|
2,137 |
|
|
|
6,005 |
|
|
|
5,517 |
|
Real estate - resort/residential |
|
328 |
|
|
|
367 |
|
|
|
2,316 |
|
|
|
1,079 |
|
Mineral resources |
|
1,812 |
|
|
|
2,000 |
|
|
|
5,043 |
|
|
|
6,991 |
|
Farming |
|
6,252 |
|
|
|
2,157 |
|
|
|
9,406 |
|
|
|
5,644 |
|
Ranch operations |
|
1,223 |
|
|
|
1,196 |
|
|
|
3,711 |
|
|
|
3,864 |
|
Corporate expenses |
|
2,945 |
|
|
|
2,315 |
|
|
|
8,794 |
|
|
|
6,824 |
|
Total expenses |
|
14,648 |
|
|
|
10,172 |
|
|
|
35,275 |
|
|
|
29,919 |
|
Operating (loss) income |
|
(3,792 |
) |
|
|
37 |
|
|
|
(11,324 |
) |
|
|
(1,347 |
) |
Other
Income: |
|
|
|
|
|
|
|
Investment income |
|
528 |
|
|
|
700 |
|
|
|
1,843 |
|
|
|
1,775 |
|
Other (loss) income, net |
|
(69 |
) |
|
|
(30 |
) |
|
|
(210 |
) |
|
|
272 |
|
Total other income, net |
|
459 |
|
|
|
670 |
|
|
|
1,633 |
|
|
|
2,047 |
|
(Loss)
income from operations before equity in earnings of unconsolidated
joint ventures and income tax |
|
(3,333 |
) |
|
|
707 |
|
|
|
(9,691 |
) |
|
|
700 |
|
Equity
in earnings of unconsolidated joint ventures, net |
|
3,329 |
|
|
|
1,161 |
|
|
|
7,611 |
|
|
|
4,616 |
|
(Loss)
income before income tax |
|
(4 |
) |
|
|
1,868 |
|
|
|
(2,080 |
) |
|
|
5,316 |
|
Income
tax expense (benefit) |
|
1,832 |
|
|
|
2,215 |
|
|
|
(286 |
) |
|
|
3,619 |
|
Net
(loss) income |
|
(1,836 |
) |
|
|
(347 |
) |
|
|
(1,794 |
) |
|
|
1,697 |
|
Net loss
attributable to non-controlling interest |
|
— |
|
|
|
(6 |
) |
|
|
(1 |
) |
|
|
(3 |
) |
Net
(loss) income attributable to common stockholders |
$ |
(1,836 |
) |
|
$ |
(341 |
) |
|
$ |
(1,793 |
) |
|
$ |
1,700 |
|
Net
(loss) income per share attributable to common stockholders,
basic |
$ |
(0.07 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.07 |
) |
|
$ |
0.06 |
|
Net
(loss) income per share attributable to common stockholders,
diluted |
$ |
(0.07 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.07 |
) |
|
$ |
0.06 |
|
|
Non-GAAP Financial Measure
This press release includes references to the Company’s non-GAAP
financial measure “EBITDA.” EBITDA represents the Company's share
of consolidated net income in accordance with GAAP, before
interest, taxes, depreciation, and amortization, plus the allocable
portion of EBITDA of unconsolidated joint ventures accounted for
under the equity method of accounting based upon economic ownership
interest, and all determined on a consistent basis in accordance
with GAAP. EBITDA is a non-GAAP financial measure and is used by
the Company and others as a supplemental measure of performance.
Tejon Ranch uses Adjusted EBITDA to assess the performance of the
Company's core operations, for financial and operational decision
making, and as a supplemental or additional means of evaluating
period-to-period comparisons on a consistent basis. Adjusted EBITDA
is calculated as EBITDA, excluding stock compensation expense. The
Company believes Adjusted EBITDA provides investors relevant and
useful information because it permits investors to view income from
operations on an unlevered basis before the effects of taxes,
depreciation and amortization, and stock compensation expense. By
excluding interest expense and income, EBITDA and Adjusted EBITDA
allow investors to measure the Company's performance independent of
its capital structure and indebtedness and, therefore, allow for a
more meaningful comparison of the Company's performance to that of
other companies, both in the real estate industry and in other
industries. The Company believes that excluding charges related to
share-based compensation facilitates a comparison of its operations
across periods and among other companies without the variances
caused by different valuation methodologies, the volatility of the
expense (which depends on market forces outside the Company's
control), and the assumptions and the variety of award types that a
company can use. EBITDA and Adjusted EBITDA have limitations as
measures of the Company's performance. EBITDA and Adjusted EBITDA
do not reflect Tejon Ranch's historical cash expenditures or future
cash requirements for capital expenditures or contractual
commitments. While EBITDA and Adjusted EBITDA are relevant and
widely used measures of performance, they do not represent net
income or cash flows from operations as defined by GAAP, and they
should not be considered as alternatives to those indicators in
evaluating performance or liquidity. Further, the Company's
computation of EBITDA and Adjusted EBITDA may not be comparable to
similar measures reported by other companies.
TEJON RANCH CO.Non-GAAP Financial
Measures(Unaudited) |
|
|
Three Months Ended September 30, |
|
Nine Months Ended September 30, |
($ in thousands) |
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net (loss) income |
$ |
(1,836 |
) |
|
$ |
(347 |
) |
|
$ |
(1,794 |
) |
|
$ |
1,697 |
|
Net loss attributable to non-controlling interest |
|
— |
|
|
|
(6 |
) |
|
|
(1 |
) |
|
|
(3 |
) |
Interest, net |
|
|
|
|
|
|
|
Consolidated |
|
(528 |
) |
|
|
(700 |
) |
|
|
(1,843 |
) |
|
|
(1,775 |
) |
Our share of interest expense from unconsolidated joint
ventures |
|
1,532 |
|
|
|
1,216 |
|
|
|
4,625 |
|
|
|
3,618 |
|
Total interest, net |
|
1,004 |
|
|
|
516 |
|
|
|
2,782 |
|
|
|
1,843 |
|
Income tax expense
(benefit) |
|
1,832 |
|
|
|
2,215 |
|
|
|
(286 |
) |
|
|
3,619 |
|
Depreciation and
amortization: |
|
|
|
|
|
|
|
Consolidated |
|
1,216 |
|
|
|
1,028 |
|
|
|
3,137 |
|
|
|
3,003 |
|
Our share of depreciation and amortization from unconsolidated
joint ventures |
|
1,695 |
|
|
|
1,393 |
|
|
|
4,989 |
|
|
|
4,005 |
|
Total depreciation and
amortization |
|
2,911 |
|
|
|
2,421 |
|
|
|
8,126 |
|
|
|
7,008 |
|
EBITDA |
|
3,911 |
|
|
|
4,811 |
|
|
|
8,829 |
|
|
|
14,170 |
|
Stock compensation
expense |
|
1,732 |
|
|
|
864 |
|
|
|
4,086 |
|
|
|
2,369 |
|
Adjusted
EBITDA |
$ |
5,643 |
|
|
$ |
5,675 |
|
|
$ |
12,915 |
|
|
$ |
16,539 |
|
|
|
|
Summary of Outstanding Debt as of
September 30, 2024 (Unaudited) |
|
|
|
Entity/Borrowing |
Amount |
% Share |
PRS Debt |
Revolving line-of-credit |
$ |
59,942 |
100% |
|
$ |
59,942 |
|
Petro
Travel Plaza Holdings, LLC |
|
11,984 |
60% |
|
|
7,190 |
|
TRCC/Rock Outlet Center, LLC |
|
20,626 |
50% |
|
|
10,313 |
|
TRC-MRC
1, LLC |
|
21,642 |
50% |
|
|
10,821 |
|
TRC-MRC
2, LLC |
|
21,414 |
50% |
|
|
10,707 |
|
TRC-MRC 3, LLC |
|
32,952 |
50% |
|
|
16,476 |
|
TRC-MRC 4, LLC |
|
61,144 |
50% |
|
|
30,572 |
|
TRC-MRC 5, LLC |
|
52,984 |
50% |
|
|
26,492 |
|
Total |
$ |
282,688 |
|
$ |
172,513 |
|
|
Capitalization and Debt Ratios(Unaudited) |
|
|
September 30, 2024 |
Period End Share Price |
$ |
17.55 |
|
Outstanding Shares |
|
26,814,680 |
Equity Market Capitalization
as of Reporting Date |
$ |
470,598 |
|
Total Debt including PRS
Unconsolidated Joint Venture Debt |
$ |
172,513 |
|
Total Capitalization |
$ |
643,111 |
|
Debt to total
capitalization |
|
26.8 |
% |
Net debt, including PRS
unconsolidated joint venture debt, to TTM adjusted EBITDA |
|
7.4 |
|
|
|
|
Tejon Ranch Co.Brett A. Brown, 661-248-3000Executive Vice
President, Chief Financial Officer
Tejon Ranch Co.Nicholas Ortiz 661-663-4212Senior Vice President,
Corporate Communications & Public Affairs
Tejon Ranch (NYSE:TRC)
過去 株価チャート
から 10 2024 まで 11 2024
Tejon Ranch (NYSE:TRC)
過去 株価チャート
から 11 2023 まで 11 2024