DAYTONA BEACH, Fla., Oct. 17 /PRNewswire-FirstCall/ --
Consolidated-Tomoka Land Co. (AMEX:CTO)(NYSE:CTO) today reported
net income of $105,246 or $.02 earnings per basic share and
earnings before depreciation, amortization and deferred taxes
(EBDDT) of $1,103,586 or $.19 per share for the third quarter ended
September 30, 2008. The comparable numbers for the third quarter of
2007 were net income of $2,102,564 or $.37 earnings per basic share
and EBDDT of $3,165,382 or $.55 per share. For the nine months
ended September 30, 2008, net income totaled $2,432,562 or $.42
earnings per basic share, compared with net income of $2,634,692 or
$.46 earnings per basic share in 2007. EBDDT totaled $5,536,262 or
$.97 per share in 2008's first nine months, compared with
$5,119,297 or $.90 per share in 2007 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, "The Company's long-term business strategy
developed in 2000 is unique in that it will allow Consolidated
Tomoka to ride out the current turndown from a position of
strength. We are in excellent financial shape with little long-
term debt ($6.6 million) and a $120 million portfolio of
diversified income properties in the Southeast region that
generates annually over $9 million of revenues and before tax cash
flow. Consistent with our long-term business strategy, these
properties were all acquired by conversion of our land sales
proceeds through 1031 tax-deferred exchanges, and the income from
these assets will allow us to fund ongoing operations even without
any new real estate sales." Mr. McMunn concluded, "With respect to
real estate sales, we expect fourth quarter closing volume to be
lower than in recent years based on current market conditions as
some of our potential purchasers have either put their expansions
on hold or have requested an extension into next year. This is a
very challenging real estate and economic environment, which we do
not expect to improve for the foreseeable future. Fortunately, our
cash flow and balance sheet position allow us to delay land sales
until maximum value can be realized. Therefore, we will continue to
pursue the conversion of our forestry lands into hay operations,
and we will pursue the necessary land use entitlements that will
drive the long-term value of our land holdings. We are highly
confident that our long-term business strategy is serving our
shareholders well, and will position us appropriately based on
current market trends to continue to deliver long-term shareholder
value both during this economic downturn and when the real estate
market rebounds." Consolidated-Tomoka Land Co. is a Florida-based
company primarily engaged in converting Company owned agricultural
lands into a portfolio of income properties strategically located
throughout the Southeast, and the development, management and sale
of targeted real estate properties. Visit our website at
http://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 year ended December 31, 2008, 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; 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
current quarter's 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, 2008. 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 (UNAUDITED)
SEPTEMBER 30, SEPTEMBER 30, 2008 2007 REVENUES $3,973,382
$7,098,154 NET INCOME $105,246 $2,102,564 BASIC & DILUTED
EARNINGS PER SHARE: NET INCOME $0.02 $0.37 NINE MONTHS ENDED
(UNAUDITED) SEPTEMBER 30, SEPTEMBER 30, 2008 2007 REVENUES
$14,045,612 $21,157,407 NET INCOME $2,432,562 $2,634,692 BASIC
& DILUTED EARNINGS PER SHARE: NET INCOME $0.42 $0.46
RECONCILIATION OF NET INCOME TO EARNINGS BEFORE DEPRECIATION,
AMORTIZATION AND DEFERRED TAXES QUARTER ENDED (UNAUDITED) SEPTEMBER
30, SEPTEMBER 30, 2008 2007 NET INCOME $105,246 $2,102,564 ADD
BACK: DEPRECIATION & AMORTIZATION 676,733 616,964 DEFERRED
TAXES 321,607 445,854 EARNINGS BEFORE DEPRECIATION, AMORTIZATION
AND DEFERRED TAXES $1,103,586 $3,165,382 BASIC WEIGHTED AVERAGE
SHARES OUTSTANDING 5,727,515 5,720,219 BASIC EBDDT PER SHARE $0.19
$0.55 NINE MONTHS ENDED (UNAUDITED) SEPTEMBER 30, SEPTEMBER 30,
2008 2007 NET INCOME $2,432,562 $2,634,692 ADD BACK: DEPRECIATION
& AMORTIZATION 1,966,494 1,848,214 DEFERRED TAXES 1,137,206
636,391 EARNINGS BEFORE DEPRECIATION, AMORTIZATION AND DEFERRED
TAXES $5,536,262 $5,119,297 BASIC WEIGHTED AVERAGE SHARES
OUTSTANDING 5,727,072 5,713,450 BASIC EBDDT PER SHARE $0.97 $0.90
Consolidated Balance Sheets (UNAUDITED) SEPTEMBER 30, DECEMBER 31,
2008 2007 ASSETS $ $ Cash 211,080 863,826 Restricted Cash 460,555
10,387,550 Investment Securities 5,173,172 10,193,094 Notes
Receivable 4,203,693 5,164,421 Land and Development Costs
17,435,972 15,654,456 Intangible Assets 5,115,113 4,717,699 Other
Assets 6,785,188 7,899,810 39,384,773 54,880,856 Property, Plant
& Equipment: Land, Timber and Subsurface Interests 11,908,674
7,793,594 Golf Buildings, Improvements & Equipment 11,746,179
11,713,046 Income Properties Land, Buildings & Improvements
116,504,886 104,820,647 Other Building, Equipment and Land
Improvements 3,226,949 2,909,057 Construction in Process 661,773 --
Total Property, Plant and Equipment 144,048,461 127,236,344 Less,
Accumulated Depreciation (11,928,203) (10,284,670) and Amortization
Net -- Property, Plant and Equipment 132,120,258 116,951,674 TOTAL
ASSETS 171,505,031 171,832,530 LIABILITIES Accounts Payable 840,562
452,090 Accrued 8,752,305 8,684,175 Liabilities Accrued Stock Based
Compensation 1,725,728 3,277,821 Income Taxes Payable 101,640
3,058,049 Deferred Income Taxes 34,019,605 32,882,399 Notes Payable
8,579,550 6,807,388 TOTAL LIABILITIES 54,019,390 55,161,922
SHAREHOLDERS' EQUITY Common Stock 5,727,515 5,725,806 Additional
Paid in Capital 5,217,955 5,130,574 Retained Earnings 107,726,516
107,012,038 Accumulated Other Comprehensive Loss (1,186,345)
(1,197,810) TOTAL SHAREHOLDERS' EQUITY 117,485,641 116,670,608
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 171,505,031 171,832,530
DATASOURCE: Consolidated-Tomoka Land Co. CONTACT: Bruce W. Teeters,
Sr. Vice President of Consolidated-Tomoka Land Co.,
+1-386-274-2202, Facsimile: +1-386-274-1223 Web site:
http://www.consolidatedtomoka.com/
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