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Business Segments
 9 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Business Segments

(3) Business Segments. The Company operates in three reportable business segments (i) Asset Management and (ii) Mining Royalty Land and (iii) Land Development and Construction. The Asset Management segment owns, leases, manages and operates commercial office/warehouse buildings primarily located in the Baltimore/Northern Virginia/Washington, DC area. The Mining Royalty Land segment owns real estate predominately in Florida and Georgia that is leased to mining companies in exchange for royalty or land rental income. The Land Development and Construction segment acquires, owns, entitles, and develops land to be used for income production via (i) construction by the Company of warehouse/office uses for our Asset Management segment, or (ii) other commercial, residential or mixed use projects through joint ventures or sales to third parties.

 

Subsequent to the Spin-off, the Company is receiving certain services from Patriot (e.g. executive oversight, accounting, information technology and human resource services) which are billed to the Company on a monthly basis in accordance with the Transition Services Agreement entered into and made effective as of the date of the Spin-off. As was the case prior to the Spin-off, these costs (excluding stock compensation) are included in the Company’s corporate expense and are fully allocated to the business segments. Certain other corporate expenses (primarily stock compensation, corporate aircraft and one-time Spin-off related expenses) are reported as “unallocated” on the Company’s consolidated income statement and are not allocated to any business segment. As a result of the Spin-off the former transportation segment of the Company is reported as a discontinued operation and thus is not allowed any corporate overhead allocation. Hence, all corporate overhead of the transportation group through the date of the Spin-off is included in “corporate expense” on the Company’s consolidated income statements herein. Reclassifications to the appropriate prior period line items and amounts have been made to be comparable to the current presentation.

 

Operating results and certain other financial data for the Company’s business segments are as follows (in thousands):

 

  Three Months ended   Nine Months ended
  June 30,   June 30,
    2015       2014       2015       2014  
Revenues:                              
 Asset management $ 6,509       6,082       20,596       18,422  
 Mining royalty land   1,735       1,395       4,414       3,889  

 Land development and   Construction

   253       202       737       604  
  $ 8,497       7,679       25,747       22,915  
                               

 

 

 

Operating profit:

                              
 Asset management $ 3,289       2,972       9,862       8,520  
 Mining royalty land   1,576       1,242       3,967       3,438  
 Land development and construction    (419 )     (298 )      (1,686 )     (1,003 )
 Corporate expenses:                              
  Allocated to asset management   (185 )     (178 )     (611 )     (534 )
  Allocated to mining royalty   (196 )     (189 )     (647 )     (567 )

  Allocated to land development and construction

   (109 )     (105 )     (360 )     (315 )
  Unallocated   (67 )     (53 )     (1,051 )     (606 )
  Unallocated to discontinued ops.   —         (528 )     (1,081 )     (2,072 )
    (557 )     (1,053 )     (3,750 )     (4,094 )
  $ 3,889       2,863       8,393       6,861  
                               

Interest expense:

 Asset management

 $ 459       410       1,524       1,009  
 Mining royalty land   -       -       -       -  
 Land development and construction   -       -       -       -  
  $ 459       410       1,524       1,009  
                               
                               

 

 

Depreciation, depletion and

Amortization:

 Asset management

 $ 1,694       1,612       5,256       4,763  
 Mining royalty land   39       36       100       92  
 Land development and construction   72       46       210       138  
  $ 1,805       1,694       5,566       4,993  
                               
                               

 

 

Capital expenditures:

                              
 Mining royalty land   —         —         -       -  

 Land development and construction and Asset Management:

                              
  Capitalized interest   258       360       827       1,353  
  Internal labor   74       146       258       341  
  Real estate taxes   22       46       88       86  
  Other costs   910       8,784       2,520       12,354  
  $ 1,264       9,336       3,693       14,134  

 

 

    June 30,     September 30,
Identifiable net assets   2015       2014  

 

 Asset management

 $ 149,864       144,420  
 Mining royalty land   39,475       39,368  
 Land development and construction    58,273        67,136  
  Discontinued operations   -       59,465  
  Cash items   765       1,074  
  Unallocated corporate assets   1,064       1,608  
  $ 249,441       313,071