Business Segments

9 Months Ended

Jun. 30, 2016

Segment Reporting [Abstract]

Business Segments

(3) Business Segments. Following the completion of the spin-off of the transportation business, management conducted a strategic review of the Company’s real estate operations.  As a result of this review, it was determined that the information that the Company’s chief operating decision makers regularly review for purposes of allocating resources and assessing performance, had changed. Therefore, beginning with the quarter ending June 30, 2015 (with prior periods adjusted accordingly), the Company is reporting its financial performance based on three reportable segments, Asset Management, Mining Royalty Lands and Land Development and Construction, as described below.

The Asset Management segment owns, leases and manages warehouse/office buildings located predominately in the Baltimore/Northern Virginia/Washington, DC market area.

Our Mining Royalty Lands segment was unaffected by the change in segments and owns several properties comprising approximately 15,000 acres currently under lease for mining rents or royalties (this does not include the 4,280 acres owned in our Brooksville joint venture with Vulcan Materials).  Other than one location in Virginia, all of these properties are located in Florida and Georgia. 

Through our Land Development and Construction segment, we own and are continuously monitoring for their “highest and best use” several parcels of land that are in various stages of development.  Our overall strategy in this segment is to convert all of our non-income producing lands into income production through (i) an orderly process of constructing new warehouse/office buildings for us to own and operate or (ii) a sale to, or joint venture with, 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,
	2016			2015			2016			2015
Revenues:
Asset management	$	6,927			6,509			21,416			20,596
Mining royalty lands		2,059			1,735			5,496			4,414
Land development and construction		257			253			769			737
		9,243			8,497			27,681			25,747
Operating profit:
Before corporate expenses:
Asset management	$	3,318			3,289			10,129			9,862
Mining royalty lands		1,940			1,576			5,114			3,967
Land development and construction		(2,608	)		(419	)		(744	)		(1,686	)
Corporate expenses:
Allocated to asset management		(354	)		(210	)		(1,252	)		(1,007	)
Allocated to mining royalty		(52	)		(223	)		(182	)		(1,067	)
Allocated to land development and construction		(278	)		(124	)		(990	)		(595	)
Unallocated to discontinued operations		—			—			—			(1,081	)
		(684	)		(557	)		(2,424	)		(3,750	)
	$	1,966			3,889			12,075			8,393
Interest expense:
Asset management	$	392			459			1,288			1,524
Depreciation, depletion and amortization:
Asset management	$	1,985			1,694			5,618			5,256
Mining royalty lands		15			39			80			100
Land development and construction		66			72			193			210
	$	2,066			1,805			5,726			5,566
Capital expenditures:
Asset management	$	699			231			10,340			1,498
Mining royalty lands		101			—			106			—
Land development and construction		673			1,033			2,523			2,195
	$	1,473			1,264			12,969			3,693

	June 30,		September 30,
Identifiable net assets	2016		2015
Asset management	$	161,487		151,023
Mining royalty lands		39,737		39,300
Land development and construction		50,357		60,682
Cash items		3,469		419
Unallocated corporate assets		532		1,054
	$	255,582		252,478