Consolidated-Tomoka Land Co. Reports Second Quarter and Six Months Ended June 30, 2013 Operating Results and Earnings

  Consolidated-Tomoka Land Co. Reports Second Quarter and Six Months Ended
  June 30, 2013 Operating Results and Earnings

Business Wire

DAYTONA BEACH, Fla. -- July 24, 2013

Consolidated-Tomoka Land Co. (NYSE MKT: CTO) today announced its operating
results and earnings for the second quarter and six months ended June 30,
2013.

OPERATING RESULTS

Operating results for the second quarter ended June 30, 2013 (compared to the
same period in 2012):

  *Net income was $0.04 per share, a decrease of $0.06 per share;
  *The quarter results were impacted by an impairment loss of approximately
    $616,000 on 6.23 acres of land, an impact of $0.07 per share, in
    connection with a contract to sell 3.21 of the acres;
  *Revenue from Income Properties totaled approximately $3.3 million, an
    increase of 48.6%;
  *Revenue from Real Estate Operations totaled approximately $303,000, a
    decrease of 67.4%, the second quarter of 2012 included approximately
    $618,000 in revenue from a land transaction;
  *Revenue from Golf Operations increased by 4.8% to $1.3 million, while net
    operating losses were approximately $113,000, a 38.2% improvement;
  *Agriculture and other income generated a loss of approximately $25,000, a
    57.9% improvement; and
  *The weighted average lease duration of our income property portfolio
    equaled 10.28 years as of June 30, 2013, up from 10.10 years as of June
    30, 2012.

Operating results for the six months ended June 30, 2013 (compared to the same
period in 2012):

  *Net income was $0.10 per share, a decrease of $0.09 per share;
  *The six months results were impacted by the impairment loss of
    approximately $616,000 on the 6.23 acres of land, an impact of $0.07 per
    share;
  *Revenue from Income Properties totaled approximately $6.4 million, an
    increase of 47.0%;
  *Revenue from Real Estate Operations totaled approximately $641,000, a
    decrease of 67.9%;
  *The operating results for the six months ended June 30, 2012 included
    approximately $730,000 in revenue from real estate operations in
    resolution of the Dunn Avenue extension obligation, of which $570,000 was
    non-cash;
  *Revenue from Golf Operations increased by 7.5% to $2.8 million, while net
    operating losses were approximately $55,000, an 82.3% improvement; and
  *Agriculture and other income generated net operating income of
    approximately $42,000 versus a net operating loss of approximately
    ($87,000) during the six months in 2012, a 147.8% improvement.

OTHER HIGHLIGHTS

Other highlights for the quarter and six months ended June 30, 2013 include
the following:

  *Declared and paid our semi-annual dividend of $0.03 per share, a 50%
    increase from 2012;
  *Sold one income property with a remaining lease term of less than 6 years
    for approximately $3.4 million resulting in a gain of approximately
    $503,000;
  *Paid down debt by approximately $5.5 million during the quarter utilizing
    cash generated by operations and the proceeds from the sale of one income
    property;
  *Golf memberships increased more than 20% from year end 2012 through the
    quarter ended June 30, 2013;
  *Debt totaled approximately $44.4 million at June 30, 2013, with
    approximately $52.0 million of available borrowing capacity on our credit
    facility, and total cash was approximately $1.3 million at June 30, 2013.
  *Received approximately $12,000 and $85,000 for impact fees for the quarter
    and six months ended June 30, 2013, respectively, versus $1,000 and
    $13,000 in the quarter and six months ended June 30, 2012, respectively.

Financial Results

Revenue

Total revenue for the quarter ended June 30, 2013 increased 12.3% totaling
approximately $5.0 million, compared to approximately $4.4 million in the same
period of 2012. The $0.6 million increase reflects approximately $1.1 million
in additional revenue generated from our expanded income property portfolio,
an increase of 48.6%, and an increase of 4.8% in revenue from our golf
operations offset by a decrease in revenue from our real estate operations of
approximately $627,000, as our results in the second quarter of 2012 included
the sale of 16.6 acres of land.

Total revenue for the six months ended June 30, 2013 increased 10.8% totaling
approximately $10.0 million, compared to approximately $9.0 million in the
same period in 2012. The increase of $1.0 million reflects approximately $2.1
million in additional revenue generated from our expanded income property
portfolio, an increase of 47.0%, and an increase of 7.5% or approximately
$196,000 in revenue from our golf operations offset by a decrease in revenue
from our real estate operations of approximately $1.4 million as our results
in the second quarter of 2012 included the sale of 16.6 acres of land and
approximately $730,000 recognized in connection with the resolution of the
Dunn Avenue obligation.

Net Income (Loss)

Net income for the quarter ended June 30, 2013 was approximately $252,000,
compared to net income of approximately $600,000 in the same period of 2012.
Our results in 2013 benefited from approximately $543,000, or 12.3%, in
increased revenues offset by an increase in operating expenses of
approximately $1.1 million, or 30.1%, primarily related to an impairment
charge of approximately $616,000, an increase of approximately $194,000 in
depreciation and amortization, and an increase in property level expenses for
two new income properties acquired in January 2013 that are base-stop leases.
Net income for the quarter ended June 30, 2013, was $0.04 per share, compared
to $0.10 per share during the same period in 2012. The impact of the
impairment charge during the quarter ended June 30, 2013 was approximately
$0.07 per share after tax. In addition, net income in the second quarter of
2012 benefited from approximately $191,000 of gains on the sale of agriculture
equipment, or $0.02 per share after tax.

Net income for the six months ended June 30, 2013 was approximately $589,000,
compared to net income of approximately $1.1 million in the same period of
2012. Our results in the six months ended June 30, 2013 benefited from
approximately $970,000, or 10.8%, in increased revenues offset by an increase
in operating expenses of approximately $1.6 million, or 22.8%, primarily
related to an impairment charge of approximately $616,000, an increase of
approximately $408,000 in depreciation and amortization, and an increase in
property level expenses for two new income properties acquired in January 2013
that are base-stop leases. Net income for the six months ended June 30, 2013,
was $0.10 per share, compared to $0.19 per share during the same period in
2012. The impact of the impairment charge during the quarter ended June 30,
2013 was approximately $0.07 per share, after tax while the performance of our
stock price increased our stock compensation costs by approximately $178,000,
or approximately $0.02 per share after tax, compared to the same period in
2012. In addition, net income in the second quarter of 2012 benefited from
approximately $276,000 or $0.03 per share after tax, of gains on the sale of
agriculture equipment.

Income Property Portfolio Update

On May 31, 2013, the Company sold its interest in the 13,905 square-foot
building under lease to Walgreens, with a remaining term of less than six
years, located in Kissimmee, Florida for $3.4 million, resulting in a gain of
approximately $503,000 which was deferred as part of a 1031 transaction to
acquire the property leased to Big Lots in Phoenix, Arizona.

Land Update

The development and investment activity for commercial and residential land in
the Daytona Beach area remains active. Due diligence is continuing on the 3.4
acre pad site at the southeast corner of LPGA and Williamson Boulevards that
we have under contract with a convenience store operator. The closing is
expected to occur in the fourth quarter of 2013. During the quarter ended June
30, 2013 we signed another contract to sell 3.21 acres of commercial land on
the west side of Interstate 95 for approximately $540,000 or $168,000 per
acre. The closing of this transaction, if it occurs, is expected to be in the
fourth quarter of 2013. The site is part of a 6.23 acre site that we
foreclosed on in 2009 and the approximate $616,000 impairment charge we took
in the quarter principally reflects the difference between the contract price
per acre on the 3.21 acres and our carrying value as of June 30, 2013.

We continue to see a variety of interest from developers and other parties
regarding the acquisition of our land holdings, although there can be no
assurance that any such interest or the aforementioned parcels under contract
will result in completed transactions.

CEO and CFO Comments on Operating Results

Mark E. Patten, senior vice president and chief financial officer, stated, “We
have seen continued growth in our cash flows through additions to our income
property portfolio during the first half of 2013 and notably from improvements
in our golf operations particularly driven by the growth in golf membership.”
Mr. Patten added, “Our operating results for the quarter and six month periods
ended June 30, 2013 compare favorably to the same period a year ago, excluding
the impairment charge of $0.07 per share, after tax, related to a land
contract executed in April 2013 for acreage that was previously included in a
2007 sales transaction which we subsequently reacquired through foreclosure in
2009, and $570,000 of non-cash items in our 2012 earnings relating to the
resolution of the Dunn Avenue extension obligation.”

John P. Albright, president and chief executive officer, stated, “We are
pleased with our operating results, and we are encouraged by the signs of
improving growth in the area’s economic activity as demonstrated by
International Speedway Corporation’s recent ground breaking on their estimated
$400 million renovation of the Daytona International Speedway.” Mr. Albright
continued, "We are seeing a direct impact from this area’s growth as evidenced
by our executing another contract on a land parcel along the west side of
I-95. The local and regional trends are favorable for continued economic
activity, which we expect to benefit our Company.”

About Consolidated-Tomoka Land Co.

Consolidated-Tomoka Land Co. is a Florida-based publicly traded real estate
company, which owns a portfolio of income properties in diversified markets in
the United States, as well as over 10,000 acres of land in the Daytona Beach
area. Visit our website at www.ctlc.com.

Forward-Looking Statements

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 quarter ended June 30, 2013, and thereafter include many
factors that are beyond the Company’s ability to control or estimate
precisely. For a description of the risks and uncertainties that may cause
actual results to differ from the forward-looking statements contained in this
press release, please see the Company’s filings with the Securities and
Exchange Commission, including, but not limited to the Company’s most recent
Annual Report on Form 10-K for the year-ended December 31, 2012. 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 financial results
for the second quarter and six months ended June 30, 2013 are preliminary and
are subject to change in connection with the Company’s preparation and filing
of its Quarterly Report on Form 10-Q for the quarter ended June 30, 2013. The
financial information in this release reflects the Company’s preliminary
results subject to completion of the quarter end review process. The final
results for the quarter 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 the consolidated financial
statements.

CONSOLIDATED-TOMOKA LAND CO.

CONSOLIDATED BALANCE SHEETS
                                                           
                                           (Unaudited)
                                           June 30,            December 31,
                                             2013                2012
ASSETS
Cash and Cash Equivalents                  $ 1,254,002         $ 1,301,739
Restricted Cash                              233,589             —
Refundable Income Tax                        824,550             239,720
Land and Development Costs                   26,537,831          27,848,525
Intangible Assets – Net                      6,127,641           4,527,426
Assets Held for Sale                         —                   3,433,500
Other Assets                                8,708,495         8,254,399   
                                                               
                                            43,686,108        45,605,309  
                                                               
Property, Plant, and Equipment:
Land, Timber, and Subsurface Interests       15,226,101          15,194,901
Golf Buildings, Improvements, and            2,965,083           2,879,263
Equipment
Income Properties, Land, Buildings, and      150,700,923         132,202,887
Improvements
Other Furnishings and Equipment             920,703           906,441     
                                                               
Total Property, Plant, and Equipment         169,812,810         151,183,492
Less, Accumulated Depreciation and          (12,482,040 )      (12,091,901 )
Amortization
                                                               
Property, Plant, and Equipment – Net        157,330,770       139,091,591 
                                                               
TOTAL ASSETS                               $ 201,016,878      $ 184,696,900 
                                                               
LIABILITIES
Accounts Payable                           $ 184,622           $ 440,541
Accrued Liabilities                          5,845,323           6,972,343
Accrued Stock-Based Compensation             258,802             265,311
Pension Liability                            1,228,317           1,317,683
Deferred Income Taxes – Net                  33,210,661          32,357,505
Notes Payable and Line of Credit            44,427,033        29,126,849  
                                                               
TOTAL LIABILITIES                           85,154,758        70,480,232  
                                                               
Commitments and Contingencies
                                                               
SHAREHOLDERS’ EQUITY
Common Stock – 25,000,000 shares
authorized;

$1 par value, 5,864,359 shares issued
and 5,849,725

shares outstanding at June 30, 2013;        5,764,792           5,726,136
5,847,036 shares

issued and 5,832,402 shares outstanding
at

December 31, 2012
Treasury Stock, at cost – 14,634 shares
                                             (453,654    )       (453,654    )
held at June 30, 2013 and December 31,
2012
Additional Paid In Capital                   8,129,084           6,939,023
Retained Earnings                            103,659,378         103,242,643
Accumulated Other Comprehensive Loss        (1,237,480  )      (1,237,480  )
                                                               
TOTAL SHAREHOLDERS’ EQUITY                  115,862,120       114,216,668 
                                                               
TOTAL LIABILITIES AND SHAREHOLDERS’        $ 201,016,878      $ 184,696,900 
EQUITY

CONSOLIDATED-TOMOKA LAND CO.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)
                                               
                                                                  
                 Three Months Ended                Six Months Ended
                 June 30,         June 30,         June 30,       June 30,
                   2013             2012             2013           2012
Revenues
Income           $ 3,325,616      $ 2,238,516      $ 6,413,034    $ 4,361,777
Properties
Real Estate        302,977          929,717          641,325        1,995,384
Operations
Golf               1,312,826        1,253,079        2,777,511      2,582,658
Operations
Agriculture
and Other         30,506         7,990          128,183      50,658     
Income
                                                                  
Total Revenues    4,971,925      4,429,302      9,960,053    8,990,477  
                                                                  
Direct Cost of
Revenues
Income             (382,072   )     (174,790   )     (611,581   )   (319,194   )
Properties
Real Estate        (184,263   )     (223,957   )     (305,741   )   (388,775   )
Operations
Golf               (1,425,372 )     (1,435,306 )     (2,833,001 )   (2,896,533 )
Operations
Agriculture
and Other         (55,085    )    (66,332    )    (86,454    )  (137,890   )
Income
                                                                  
Total Direct
Cost of            (2,046,792 )     (1,900,385 )     (3,836,777 )   (3,742,392 )
Revenues
                                                                  
General and
Administrative     (1,260,674 )     (1,335,287 )     (3,014,238 )   (2,758,935 )
Expenses
Impairment         (616,278   )     —                (616,278   )   —
Charges
Depreciation
and                (714,199   )     (520,035   )     (1,430,908 )   (1,022,489 )
Amortization
Gain on
Disposition of    —              190,564        —            275,564    
Assets
                                                                  
Total
Operating         (4,637,943 )    (3,565,143 )    (8,898,201 )  (7,248,252 )
Expenses
                                                                  
Operating          333,982          864,159          1,061,852      1,742,225
Income
                                                                  
Interest           225              367              391            367
Income
Interest           (468,596   )     (152,362   )     (806,128   )   (322,602   )
Expense
Loss on Early
Extinguishment    —              —              —            (245,726   )
of Debt
                                                                  
Income (Loss)
from
Continuing
Operations
Before Income      (134,389   )     712,164          256,115        1,174,264
Tax Expense
Income Tax
(Expense)         56,193         (269,073   )    (89,383    )  (445,153   )
Benefit
                                                                  
Income (Loss)
from               (78,196    )     443,091          166,732        729,111
Continuing
Operations
Income from
Discontinued      329,966        156,495        422,083      364,876    
Operations
(Net of Tax)
                                                                  
Net Income       $ 251,770       $ 599,586       $ 588,815     $ 1,093,987  
                                                                  
                                                                  
Per Share
Information:
Basic and
Diluted
Income (Loss)
from             $ (0.02      )   $ 0.08           $ 0.03         $ 0.13
Continuing
Operations
Income from
Discontinued      0.06           0.02           0.07         0.06       
Operations
(Net of Tax)
                                                                  
Net Income       $ 0.04          $ 0.10          $ 0.10        $ 0.19       
                                                                  
                                                                  
Dividends
Declared and     $ 0.03          $ 0.02          $ 0.03        $ 0.02       
Paid

Contact:

Consolidated-Tomoka Land Co.
Mark E. Patten, 386-944-5643
Sr. Vice President and CFO
mpatten@ctlc.com
Facsimile: 386-274-1223