Griffin Announces 2012 Fourth Quarter Results

Griffin Announces 2012 Fourth Quarter Results

NEW YORK, Feb. 14, 2013 (GLOBE NEWSWIRE) -- Griffin Land & Nurseries, Inc.
(Nasdaq:GRIF) ("Griffin") today reported a 2012 fourth quarter operating loss
of ($556,000) on total revenue of $6,697,000, as compared to an operating
profit of $2,470,000 on total revenue of $10,891,000 in the 2011 fourth
quarter. Griffin reported a 2012 fourth quarter loss from continuing
operations and a net loss of ($1,026,000) and a basic and diluted loss from
continuing operations per share and a basic and diluted net loss per share of
($0.20). In the 2011 fourth quarter, Griffin reported income from continuing
operations of $603,000 and basic and diluted income from continuing operations
per share of $0.12 and net income of $712,000 and basic and diluted net income
per share of $0.14. The 2011 fourth quarter included income from a
discontinued operation (see below) of $109,000 and basic and diluted income
from discontinued operation per share of $0.02.

Griffin incurred a 2012 fourth quarter operating loss, as compared to the 2011
fourth quarter operating profit, due to lower operating profit at Griffin
Land, Griffin's real estate business, partially offset by a lower operating
loss at Imperial Nurseries, Inc. ("Imperial"), Griffin's subsidiary in the
landscape nursery business, and lower general corporate expense in the 2012
fourth quarter as compared to the 2011 fourth quarter.The lower operating
profit at Griffin Land was principally due to a lower gain on property sales
in the 2012 fourth quarter as compared to the 2011 fourth quarter.In the 2011
fourth quarter there were two sales of undeveloped land for total revenue of
$3,600,000 and a total gain of approximately $3,200,000.The 2012 fourth
quarter included the sale of approximately 14 acres of undeveloped land for
approximately $1,000,000 with a gain of approximately $700,000.Griffin Land's
2012 fourth quarter gain on property sales included an adjustment of
approximately $700,000 to reduce previously recorded revenue and gain from the
prior quarter's sale of approximately 93 acres of undeveloped land to Dollar
Tree Distribution, Inc. for $7,000,000 in cash proceeds (the "Dollar Tree
Sale"). As Griffin Land is required to construct a sewer line to service the
property sold, the Dollar Tree Sale is accounted for using the percentage of
completion method whereby the revenue and gain on sale are recorded as costs
are incurred.The adjustment in the 2012 fourth quarter to reduce a portion of
the previously recorded revenue and gain on the Dollar Tree Sale reflects an
increase in the costs, estimated at the end of the fiscal year, to construct
the sewer line from the estimated costs at the end of the third quarter.For
the 2012 full year, Griffin Land has recorded revenue of approximately
$4,700,000 and a gain of approximately $3,900,000 on the Dollar Tree
Sale.Griffin Land expects the total gain on the Dollar Tree Sale will be
approximately $5,900,000 after all costs are incurred, including the costs of
completing the construction of the sewer line, which is expected to be in the
first half of fiscal 2013.Property sales occur periodically and changes in
revenue from year to year from these transactions may not be indicative of any
trends in the real estate business. Operating profit from Griffin Land's
leasing operations was lower in the 2012 fourth quarter as compared to the
2011 fourth quarter, principally due to an increase in depreciation expense as
the result of a new 228,000 square foot industrial building, built on
speculation, in the Lehigh Valley of Pennsylvania that was completed and
placed in service at the end of the 2012 third quarter.Although there have
been expressions of interest by prospective tenants, this new building has not
yet been leased.

Imperial's operating loss in the 2012 fourth quarter was lower than the
operating loss incurred in the 2011 fourth quarter, principally due to lower
charges in the 2012 fourth quarter for unsaleable plants and plants expected
to be sold below cost as seconds and lower selling, general and administrative
expenses, partially offset by the inclusion of a gain on insurance settlements
in the 2011 fourth quarter.

For the 2012 full year, Griffin reported operating profit of $2,126,000 on
total revenue of $36,591,000 as compared to an operating loss of ($225,000) on
total revenue of $37,193,000 for the 2011 full year.Griffin reported a 2012
full year loss from continuing operations of ($681,000) and a basic and
diluted loss from continuing operations per share of ($0.13) as compared to a
loss from continuing operations of ($2,997,000) and a basic and diluted loss
from continuing operations per share of ($0.58) for the 2011 full
year.Griffin reported income from a discontinued operation of $1,647,000 and
basic and diluted income from discontinued operation per share of $0.32 for
the 2012 full year, as compared to income from a discontinued operation of
$523,000 and basic and diluted income from discontinued operation per share of
$0.10 for the 2011 full year.For the 2012 full year, Griffin reported net
income of $966,000 and basic and diluted net income per share of $0.19 as
compared to a net loss of ($2,474,000) and a basic and diluted net loss per
share of ($0.48) for the 2011 full year.

The discontinued operation reflects the operating results prior to sale and
the gain on sale of a warehouse building in Manchester, Connecticut, that
Griffin Land had owned. On January 31, 2012, Griffin Land closed on the sale
of the Manchester warehouse to the tenant that had leased the entire building
for net cash proceeds, after expenses, of $15,500,000. Included in Griffin's
income from its discontinued operation in the 2012 full year is a pretax gain
of approximately $2,900,000 on the sale of the Manchester warehouse.

Total revenue and operating profit at Griffin Land were higher in the 2012
full year than the 2011 full year, principally due to higher revenue and gain
from property sales.The increased revenue and gain on property sales in the
2012 full year principally reflects the Dollar Tree Sale. Profit from Griffin
Land's leasing operations was higher in the 2012 full year than the 2011 full
year, principally due to lower building expenses in 2012 (primarily lower snow
removal expense) mainly due to the relatively mild winter weather in 2012 as
compared to the more severe winter weather in 2011. Rental revenue at Griffin
Land was slightly lower in the 2012 full year than the 2011 full year,
principally due to lower revenue from common area maintenance charges to
tenants in 2012 as compared to 2011.

Imperial incurred a lower operating loss in the 2012 full year as compared to
the 2011 full year, principally due to lower charges for unsaleable
inventories in 2012 than 2011.The effect of the lower inventory charges in
the 2012 full year was partially offset by the effect of lower net sales in
the 2012 full year as compared to the 2011 full year and the inclusion of a
gain on insurance settlements in 2011.

The lower loss from continuing operations in the 2012 full year versus the
2011 full year reflects the overall higher operating results discussed above
along with higher investment income and lower interest expense in the 2012
full year as compared to the 2011 full year. The lower interest expense in the
2012 full year as compared to the 2011 full year reflects a higher amount of
interest being capitalized in 2012, principally related to the construction of
Griffin Land's new industrial building that was built in the Lehigh Valley of
Pennsylvania in 2012. The higher investment income reflects income of
approximately $400,000 from Griffin's investment in Shemin Nurseries Holding
Corp. ("SNHC"), in which Griffin held an approximately 14% equity interest
during 2012. Subsequent to the end of the 2012 fiscal year, Griffin completed
the sale of its investment in SNHC, a private company that operates a
landscape nursery distribution business through its subsidiary, Shemin
Nurseries, Inc., for initial cash proceeds of approximately $3,200,000.

The net income in the 2012 full year as compared to the net loss in the 2011
full year reflects the lower loss from continuing operations in the 2012 full
year and higher income from Griffin's discontinued operation in the 2012 full
year as compared to the 2011 full year. The increase in income from the
discontinued operation in the 2012 full year reflects the gain on the sale of
the Manchester warehouse in 2012 (see above).

Griffin operates its real estate business, Griffin Land, and Imperial, its
landscape nursery business. Griffin also has an investment in Centaur Media
plc, a public company based in the United Kingdom and listed on the London
Stock Exchange.

Forward-Looking Statements:

This Press Release includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act and Section 21E of the Exchange Act.
Although Griffin believes that its plans, intentions and expectations
reflected in such forward-looking statements are reasonable, it can give no
assurance that such plans, intentions or expectations will be achieved
particularly with respect to the estimated total gain to be realized from the
Dollar Tree Sale and other statements that are not historical facts. The
projected information disclosed herein is based on assumptions and estimates
that, while considered reasonable by Griffin as of the date hereof, are
inherently subject to significant business, economic, competitive and
regulatory uncertainties and contingencies, many of which are beyond the
control of Griffin and which could cause actual results and events to differ
materially from those expressed or implied in the forward-looking statements.
Important factors that could affect the outcome of the events set forth in
these statements are described in Griffin's Securities and Exchange Commission
filings, including the "Business," "Risk Factors" and "Forward-Looking
Information" sections in Griffin's Annual Report on Form 10-K for the fiscal
year ended December 1, 2012. Griffin disclaims any obligation to update any
forward-looking statements as a result of developments occurring after the
date of this press release except as required by law.

Griffin Land & Nurseries, Inc.
Consolidated Condensed Statements of Operations
(amounts in thousands, except per share data)
(unaudited)
                                                                   
              Fourth Quarter Ended,          Fiscal Year Ended,          
              Dec. 1,         Dec. 3,       Dec. 1,        Dec. 3,     
               2012             2011           2012            2011
Revenue:                                                            
Rental revenue
and property   $4,993    (1)  $8,295  (1)  $23,748  (1)  $22,183   (1)
sales
Landscape
nursery net    1,704          2,596        12,843        15,010     
sales and
other revenue
Total revenue  6,697           10,891        36,591         37,193      
                                                                   
Operating                                                           
profit (loss):
Real estate    953        (1)  4,307    (1)  8,091     (1)  6,548      (1)
business
Landscape
nursery        (638)      (2)  (882)    (2)  (1,713)   (2)  (2,685)    (2)
business
General
corporate      (871)          (955)        (4,252)       (4,088)    
expense
Total
operating      (556)          2,470        2,126         (225)      
profit (loss)
                                                                   
Interest       (1,011)    (3)  (974)    (3)  (3,533)   (3)  (4,167)    (3)
expense
Investment     134            105          613           210        
income
(Loss) income  (1,433)        1,601        (794)         (4,182)    
before taxes
Income tax
benefit        407            (998)        113           1,185      
(provision)
                                                                   
(Loss) income
from           (1,026)        603          (681)         (2,997)    
continuing
operations
                                                                   
Discontinued
operation, net                                                      
of tax: (4)
Income from
operations,    --             109          117           523        
net of tax
Gain on sale
of warehouse,  --             --           1,530         --         
net of tax
Total
discontinued   --             109          1,647         523        
operation, net
of tax
                                                                   
Net income     $(1,026)      $712        $966         $(2,474)  
(loss)
                                                                   
Basic net
income (loss)                                                       
per common
share:
(Loss) income
from           $(0.20)       $0.12       $(0.13)      $(0.58)   
continuing
operations
Income from
discontinued   --            0.02         0.32          0.10       
operation (4)
Basic net
income (loss)  $(0.20)       $0.14       $0.19        $(0.48)   
per common
share
                                                                   
Diluted net
income (loss)                                                       
per common
share:
(Loss) income
from           $(0.20)       $0.12       $(0.13)      $(0.58)   
continuing
operations
Income from
discontinued   --            0.02         0.32          0.10       
operation (4)
Diluted net
income (loss)  $(0.20)       $0.14       $0.19        $(0.48)   
per common
share
                                                                   
Weighted
average common
shares
outstanding    5,140           5,134         5,138          5,130       
for
computation of
basic per
share results
                                                                   
Weighted
average common
shares
outstanding    5,140           5,139         5,138          5,130       
for
computation of
diluted per
share results
                                                                   
(1) Revenue and operating profit at Griffin Land were as follows:          
              Fourth Quarter Ended,          Fiscal Year Ended,          
              Dec. 1,         Dec. 3,       Dec. 1,        Dec. 3,     
               2012             2011           2012            2011
                                                                   
Revenue from
leasing        $4,594        $4,695      $17,989      $18,183   
operations
Revenue from   399            3,600        5,759         4,000      
property sales
Total revenue
at Griffin     $4,993        $8,295      $23,748      $22,183   
Land
                                                                   
Operating
profit from    $807          $1,113      $3,321       $3,006    
leasing
operations
Operating
profit from    146            3,194        4,770         3,542      
property sales
Total
operating      $953          $4,307      $8,091       $6,548    
profit at
Griffin Land
                                                                   
Operating profit from leasing operations includes depreciation and
amortization expense, principally related to real estate properties, of
approximately $1.6 million and approximately $1.4 million in the 2012 and 2011
fourth quarters, respectively, and approximately $5.8 million and
approximately $5.7 million in the 2012 and 2011 full years, respectively.
                                                                   
(2) Includes charges in cost of goods sold of approximately $0.1 million and
approximately $0.5 million in the 2012 and 2011 fourth quarters, respectively,
and approximately $0.4 million and approximately $1.4 million in the 2012 and
2011 full years, respectively, to increase inventory reserves for unsaleable
plants and plants expected to be sold below cost as seconds. The 2011 fourth
quarter and 2011 full year include gains of $0.4 million and $0.6 million,
respectively, from the settlement of insurance claims.
                                                                   
(3) Interest expense is primarily for mortgages on Griffin Land's rental
properties. Interest expense in the 2012 full year is net of capitalized
interest of approximately $0.6 million. There was no interest capitalized in
the 2012 fourth quarter. Interest expense in the2011 fourth quarter and 2011
full year is net of capitalized interest of approximately $0.1 million.
                                                                   
(4) The discontinued operation reflects the results, net of tax, of Griffin
Land's 308,000 square foot warehouse in Manchester, Connecticut that was sold
to the tenant in that facility on January 31, 2012.

CONTACT: Anthony Galici
         Chief Financial Officer
         (860) 653-4541
 
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