EX-99.1 2 pressrelease.htm PRESS RELEASE pressrelease.htm

 
 
For Immediate Release
 
 
 Date:  February 13, 2008
 Contact:  Bruce W. Teeters, Senior Vice President
 Phone:  (386) 274-2202
 Facsimile:  (386) 274-1223
 
 

CONSOLIDATED TOMOKA REPORTS 2007 EARNINGS
 
DAYTONA BEACH, FLORIDA - Consolidated-Tomoka Land Co. (AMEX–CTO) today reported net income of $13,532,838 or $2.37 basic earnings per share for the year ended December 31, 2007, and earnings before depreciation, amortization, and deferred taxes (EBDDT) of $19,390,631 or $3.39 basic per share for such period.  The comparable numbers for 2006 were net income of $14,028,322 or $2.47 basic earnings per share and EBDDT of $21,626,683 or $3.80 basic per share.  For the three months ended December 31, 2007, net income totaled $10,898,146 or $1.91 basic earnings per share compared with net income of $5,776,338 or $1.01 basic earnings per share for the same period in 2006.
 
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 2007 performance was impressive when compared to that of many of our industry peers.  In 1999, we adopted a business plan that would continue to create long-term value for our shareholders by minimizing debt, increasing our land values, and accelerating our conversion of agricultural lands into a portfolio of 1031 income-producing net-lease income properties. The successful execution of our plan allows the Company to perform well during both good and bad real estate markets. We believe that our prospects for 2008 and beyond remain excellent despite the current condition of the real estate market.”
 
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 www.consolidatedtomoka.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 quarters financial results are preliminary and are subject to change in connection with the Company’s preparation and filing of its Form 10-K for the year ended December 31, 2007.  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 year 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
  
   
DECEMBER 31,
    
DECEMBER 31,
  
   
2007
    
2006
  
             
REVENUES
   $
21,918,617
     $
17,908,566
  
                 
NET INCOME
   $
10,898,146
     $
5,776,338
  
                 
BASIC  EARNINGS PER SHARE:
                
  NET INCOME
   $
1.91
     $
1.01
  
                 
DILUTED  EARNINGS PER SHARE:
                
  NET INCOME
   $
1.90
     $
1.01
  

 

   
YEAR ENDED
        
   
DECEMBER 31,
    
DECEMBER 31,
        
   
2007
    
2006
        
   
 
    
 
        
REVENUES
   $
43,076,024
     $
43,589,253
        
                       
NET INCOME BEFORE DISCONTINUED OPERATIONS AND
    
13,532,838
      
14,003,939
        
  CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
                      
                       
DISCONTINUED OPERATIONS (NET OF INCOME TAX)
    
--
      
240,476
        
                       
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
                      
   (NET OF INCOME TAX)
    
--
       (216,093 )     (1 )
                         
NET INCOME
   $
13,532,838
     $
14,028,322
          
                         
BASIC EARNINGS PER SHARE:
                        
  NET INCOME BEFORE DISCONTINUED OPERATIONS AND
                        
   CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
   $
2.37
     $
2.47
          
                         
  DISCONTINUED OPERATIONS (NET OF INCOME TAX)
    
--
     $
0.04
          
                         
  CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
                        
   (NET OF INCOME TAX)
    
--
       (0.04 )     (1 )
                         
  NET INCOME
   $
2.37
     $
2.47
          
                         
DILUTED EARNINGS PER SHARE:
                        
  NET INCOME BEFORE DISCONTINUED OPERATIONS AND
                        
   CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
   $
2.36
     $
2.46
          
                         
  DISCONTINUED OPERATIONS (NET OF INCOME TAX)
    
--
     $
0.04
          
                         
  CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
                        
   (NET OF INCOME TAX)
    
--
       (0.04 )     (1 )
                         
  NET INCOME
   $
2.36
     $
2.46
          
                         
(1) THE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE REPRESENTS THE
 CHANGE IN ACCOUNTING FOR STOCK OPTIONS WITH THE ADOPTION OF FINANCIAL
 ACCOUNTING STANDARDS STATEMENT NO. 123 (REVISED 2004).
  
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RECONCILIATION OF NET INCOME TO EARNINGS BEFORE
DEPRECIATION, AMORTIZATION AND DEFERRED TAXES
  
   
QUARTER ENDED
  
   
DECEMBER 31,
  
 
  
DECEMBER 31,
  
   
2007
      
2006 (2)
  
NET INCOME
   $
10,898,146
       $
5,776,338
  
                   
ADD BACK:
                  
                   
    DEPRECIATION & AMORTIZATION
    
618,767
        
603,480
  
                   
    DEFERRED TAXES
    
2,754,421
        
1,978,679
  
                   
EARNINGS BEFORE DEPRECIATION,  AMORTIZATION
                  
     AND DEFERRED TAXES
   $
14,271,334
       $
8,358,497
  
                   
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING
    
5,720,219
        
5,691,192
  
                   
BASIC EBDDT PER SHARE
   $
2.49
       $
1.47
  
         
 
        
   
   YEAR ENDED   
  
   
DECEMBER 31,
  
 
  
DECEMBER 31,
  
   
2007
      
2006
  
NET INCOME
   $
13,532,838
       $
14,028,322
  
                   
ADD BACK:
                  
                   
    DEPRECIATION & AMORTIZATION
    
2,466,981
        
2,265,848
  
                   
    DEFERRED TAXES
    
3,390,812
        
5,332,513
  
                   
EARNINGS BEFORE DEPRECIATION,  AMORTIZATION
                  
     AND DEFERRED TAXES
   $
19,390,631
       $
21,626,683
  
                   
BASIC WEIGHTED AVERAGE SHARES OUTSTANDING
    
5,716,564
        
5,684,042
  
                   
BASIC EBDDT PER SHARE
   $
3.39
       $
3.80
  
         
 
        
                   
EBDDT – EARNINGS BEFORE DEPRECIATION, AMORITIZATION, 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 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 DEFERRED INCOME TAXES
TO NET INCOME AS THEY REPRESENT NON-CASH CHARGES.
  
(2) THE FOURTH QUARTER OF 2006 HAS BEEN ADJUSTED TO REFLECT THE QUARTERLY IMPACT, IN EACH QUARTER OF
 2006, OF THE SAB 108 ADJUSTMENT MADE IN THE FOURTH QUARTER OF 2006. THE ADJUSTMENT WAS CONSIDERED
 IMMATERIAL FOR EACH OF THE QUARTERS OF 2006
  
 
 
 

 

 CONSOLIDATED BALANCE SHEET      
             
   
DECEMBER 31,
    
DECEMBER 31,
  
   
2007
    
2006
  
ASSETS
            
   Cash
   $ 
863,826
      $
738,264
  
   Restricted Cash
    
10,387,550
      
1,185,962
  
   Investment Securities
    
10,193,094
      
11,780,205
  
   Notes Receivable
    
5,164,421
      
700,000
  
   Land and Development Costs
    
15,654,456
      
15,058,340
  
   Intangible Assets
    
4,717,699
      
5,103,649
  
   Other Assets
    
7,899,810
      
5,569,605
  
     
54,880,856
      
40,136,025
  
                 
Property, Plant & Equipment:
                
  Land, Timber and Subsurface Interests
    
7,793,594
      
3,012,623
  
  Golf Buildings, Improvements & Equipment
    
11,713,046
      
11,442,492
  
  Income Properties Land, Buildings & Improvements
    
104,820,647
      
104,819,695
  
  Other Building, Equipment and Land Improvements
    
2,909,057
      
2,584,467
  
    Total Property, Plant and Equipment
    
127,236,344
      
121,859,277
  
  Less, Accumulated Depreciation and Amortization
     (10,284,670 )     (8,221,138 )
   Net - Property, Plant and Equipment
    
116,951,674
      
113,638,139
  
                 
      TOTAL ASSETS
    $
171,832,530
      $
153,774,164
  
                 
LIABILITIES
                
   Accounts Payable
    $
452,090
      $
167,378
  
   Accrued Liabilities
    
8,684,175
      
7,749,121
  
   Accrued Stock Based Compensation
    
3,277,821
      
5,743,773
  
   Income Taxes Payable
    
3,058,049
      
--
  
   Deferred Profit
    
--
      
563,467
  
   Deferred Income Taxes
    
32,882,399
      
29,491,587
  
   Notes Payable
    
6,807,388
      
7,061,531
  
                 
      TOTAL LIABILITIES
    
55,161,922
      
50,776,857
  
                 
SHAREHOLDERS' EQUITY
                
   Common Stock
    
5,725,806
      
5,693,007
  
   Additional Paid in Capital
    
5,130,574
      
2,630,748
  
   Retained Earnings
    
107,012,038
      
95,650,170
  
   Accumulated Other Comprehensive Loss
     (1,197,810 )     (976,618 )
                 
      TOTAL SHAREHOLDERS' EQUITY
    
116,670,608
      
102,997,307
  
                 
      TOTAL LIABILITIES AND
                
      SHAREHOLDERS' EQUITY
    $
171,832,530
      $
153,774,164
  
                 

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