Business Segment Data

9 Months Ended

Sep. 30, 2015

Segment Reporting [Abstract]

Business Segment Data

NOTE 18. BUSINESS SEGMENT DATA

The Company operates in four primary business segments: income properties, commercial loan investments, real estate operations, and golf operations. Our income property operations consist primarily of income-producing properties, and our business plan is focused on investing in additional income-producing properties. Our income property operations accounted for 63.3% and 68.7% of our identifiable assets as of September 30, 2015 and December 31, 2014, respectively, and 57.8% and 39.1% of our consolidated revenues for the nine months ended September 30, 2015 and 2014, respectively. As of September 30, 2015 and December 31, 2014, we had four and five commercial loan investments, respectively. Our real estate operations primarily consist of revenues generated from land transactions and leasing and royalty income from our interests in subsurface oil, gas and mineral rights. Our golf operations consist of a single property located in the City, with two 18-hole championship golf courses, a practice facility, and clubhouse facilities, including a restaurant and bar operation, fitness facility, and pro-shop with retail merchandise. The majority of the revenues generated by our golf operations are derived from members and public customers playing golf, club memberships, and food and beverage operations.

The Company evaluates performance based on profit or loss from operations before income taxes. The Company’s reportable segments are strategic business units that offer different products. They are managed separately because each segment requires different management techniques, knowledge, and skills.

NOTE 18. BUSINESS SEGMENT DATA (continued)

Information about the Company’s operations in the different segments for the three and nine months ended September 30, 2015 and 2014 is as follows: 

	Three Months Ended						Nine Months Ended
	September 30, 2015			September 30, 2014			September 30, 2015			September 30, 2014
Revenues:
Income Properties	$	5,034,090		$	3,864,632		$	13,426,817		$	10,821,121
Commercial Loan Investments		546,640			382,087			1,816,834			1,581,746
Real Estate Operations		1,748,398			8,781,759			3,976,340			11,184,591
Golf Operations		949,083			994,651			3,935,076			3,844,428
Agriculture and Other Income		19,504			182,731			59,181			258,052
Total Revenues	$	8,297,715		$	14,205,860		$	23,214,248		$	27,689,938
Operating Income:
Income Properties	$	4,036,330		$	3,407,763		$	11,105,324		$	9,539,741
Commercial Loan Investments		546,640			382,087			1,816,834			1,581,746
Real Estate Operations		1,431,785			5,209,677			2,755,151			7,166,932
Golf Operations		(406,386	)		(315,138	)		(266,237	)		(310,581	)
Agriculture and Other Income		(31,980	)		148,573			(90,649	)		113,362
General and Corporate Expense		(432,949	)		(2,814,622	)		(6,496,935	)		(7,488,692	)
Total Operating Income	$	5,143,440		$	6,018,340		$	8,823,488		$	10,602,508
Depreciation and Amortization:
Income Properties	$	1,335,214		$	815,673		$	3,413,024		$	2,301,316
Commercial Loan Investments		—			—			—			—
Real Estate Operations		—			—			—			—
Golf Operations		68,712			60,369			194,618			174,942
Agriculture and Other		13,203			10,576			36,978			28,749
Total Depreciation and Amortization	$	1,417,129		$	886,618		$	3,644,620		$	2,505,007
Capital Expenditures:
Income Properties	$	25,596,355		$	5,329,898		$	35,610,312		$	21,566,004
Commercial Loan Investments		14,500,000			10,450,744			15,394,879			27,399,082
Real Estate Operations ($5,664,787 Contributed by Consolidated VIE)		11,489,272			—			11,489,272			—
Golf Operations		2,045			138,854			108,462			195,015
Agriculture and Other		17,817			32,508			31,223			123,261
Total Capital Expenditures	$	51,605,489		$	15,952,004		$	62,634,148		$	49,283,362

	As of
	September 30, 2015		December 31, 2014
Identifiable Assets:
Income Properties	$	211,143,491	$	190,087,575
Commercial Loan Investments		38,455,112		30,274,302
Real Estate Operations		55,858,598		43,833,515
Golf Operations		3,291,350		3,639,903
Agriculture and Other		24,609,017		8,757,153
Total Assets	$	333,357,568	$	276,592,448

Operating income represents income from continuing operations before loss on early extinguishment of debt, interest expense, investment income, and income taxes. General and corporate expenses are an aggregate of general and administrative expenses, impairment charges, depreciation and amortization expense, and gains (losses) on the disposition of assets. Identifiable assets by segment are those assets that are used in the Company’s operations in each segment. Other assets consist primarily of cash, property, plant, and equipment related to the other operations, as well as the general and corporate operations. Land, timber, and subsurface interests were previously stated as a separate line item within property, plant, and equipment on the consolidated financial statements and are now included with land, timber, and development costs as all of the costs are related to the Company’s land portfolio of over 10,500 acres. The land, timber, and subsurface interests were previously included in the Agriculture and Other segment, but have been reclassified to the Real Estate Operations segment to conform to the revised presentation on the consolidated balance sheets.