Consolidated-Tomoka Land Co. Reports Third Quarter 2013 Earnings of $0.22 Per Share

  Consolidated-Tomoka Land Co. Reports Third Quarter 2013 Earnings of $0.22
  Per Share

Business Wire

DAYTONA BEACH, Fla. -- October 22, 2013

Consolidated-Tomoka Land Co. (NYSE MKT:CTO) (the “Company”) today announced
its operating results and earnings for the third quarter and nine months ended
September 30, 2013.

OPERATING RESULTS

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

  *Net income was $0.22 per share compared to a net loss of $0.10 per share
    in 2012, an increase of $0.32 per share or 311%; the Company’s highest
    quarterly earnings since 2008;
  *Revenue from Income Properties totaled approximately $3.4 million, an
    increase of 54%;
  *Income from the commercial mortgage loan acquired in August 2013 totaled
    approximately $644,000;
  *Revenue from Real Estate Operations totaled approximately $1.4 million, an
    increase of 225%, which included $1.0 million in revenue, an impact of
    $0.11 per share, from a payment of approximately $4.3 million received
    relating to the amendment of an oil exploration lease;
  *Revenue from Golf Operations increased by 14% to approximately $981,000,
    while net operating losses were approximately $340,000, a 25% improvement;
  *Agriculture and other income generated a loss of approximately $13,000
    compared to income of approximately $67,000 in the prior period quarter;
    and
  *The weighted average lease duration of our income property portfolio
    equaled 10.17 years as of September 30, 2013, a slight decline from 10.20
    years as of September 30, 2012.

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

  *Net income was $0.32 per share compared to $0.09 per share in 2012, an
    increase of $0.23 per share or 240%;
  *Revenue from Income Properties totaled approximately $9.6 million, an
    increase of 51%;
  *Income from the commercial mortgage loan acquired in August 2013 totaled
    approximately $644,000;
  *Revenue from Real Estate Operations totaled approximately $2.0 million,
    which included $1.0 million in revenue from a payment of approximately
    $4.3 million received relating to the amendment of an oil exploration
    lease;
  *Revenue from Golf Operations increased by 9% to approximately $3.8
    million, while net operating losses were approximately $396,000, a 48%
    improvement; and
  *Agriculture and other income generated net operating income of
    approximately $29,000 versus a net operating loss of approximately $20,000
    during the same period in 2012, a 245% improvement.

OTHER HIGHLIGHTS

Other highlights for the quarter and nine months ended September 30, 2013,
include the following:

  *Total investments made during the quarter totaled approximately $29.3
    million, including the acquisition of a $19.56 million commercial mortgage
    loan, secured by a hotel in Atlanta, Georgia, which matures in March 2014;
  *Received a payment of approximately $4.3 million, in conjunction with an
    amendment to our oil exploration lease with Kerogen Florida Energy
    Company, consisting of $1.0 million related to drilling commitment
    requirements and approximately $3.3 million related to the rent payment
    for the third year of the lease ending in September 2014;
  *Commenced construction on two buildings located within the Gateway Center,
    a two-building, flex-office project totaling approximately 30,720 square
    feet on approximately 4.51 acres, in Daytona Beach, Florida, of which 25%
    is pre-leased under a 10.4-year lease with Lamar Advertising Co.;
  *Golf memberships increased more than 21% from year end 2012 through the
    quarter ended September 30, 2013;
  *Debt totaled approximately $66.7 million at September 30, 2013, with
    approximately $29.7 million of available borrowing capacity on our credit
    facility, and total cash was approximately $743,000 at September 30, 2013;
    and
  *Received approximately $96,000 and $181,000 for impact fees for the
    quarter and nine months ended September 30, 2013, respectively, versus
    $146,000 and $159,000 in the quarter and nine months ended September 30,
    2012, respectively.

Financial Results

Revenue

Total revenue for the quarter ended September 30, 2013, increased 79%,
totaling approximately $6.4 million, compared to approximately $3.6 million in
the same period of 2012. The increase of approximately $2.8 million included
approximately $1.2 million of additional rent revenue generated by our income
property portfolio, an increase of 54%, particularly from our acquisitions in
the fourth quarter of 2012 and the three quarters in 2013, $1.0 million in
revenue from the amendment of our oil exploration lease, approximately
$644,000 of income generated by our commercial mortgage loan investment, and
approximately $120,000 of increased revenue from our golf operations offset by
a reduction in our agriculture and other revenues of approximately $75,000.

Total revenue for the nine months ended September 30, 2013, increased 31%,
totaling approximately $16.2 million, compared to approximately $12.4 million
in the same period in 2012. The increase of approximately $3.8 million
included approximately $3.2 million of additional rent revenue generated by
our income property portfolio, an increase of 51%, particularly our
acquisitions in the fourth quarter of 2012 and in the three quarters of 2013,
approximately $644,000 of income generated by our commercial mortgage loan
investment, and approximately $315,000 of increased revenue from our golf
operations, a 9% increase, offset by a reduction in our real estate operations
of approximately $407,000. Our results in the nine months ended September 30,
2012, included $618,000 of revenue from the sale of 16.6 acres of land and
approximately $730,000 recognized in connection with the resolution of the
Dunn Avenue extension obligation.

Net Income (Loss)

Net income for the quarter ended September 30, 2013, was approximately $1.2
million, compared to a net loss of approximately $557,000 in the same period
of 2012, an increase of $1.8 million or 323%. Contributing to the increase in
net income of approximately $1.8 million was the after tax results of the
aforementioned increases in our revenues of $2.8 million, or 79%, net of the
increase in direct costs of those revenues of approximately $271,000, offset
by increases in our depreciation and amortization of approximately $229,000,
attributable to our larger income property portfolio, and increased interest
expense of approximately $357,000. Our increased net income also benefited
from lower general and administrative expenses, which decreased by
approximately $1.1 million with such decrease reflecting a decrease in our
stock compensation costs of approximately $195,000 and decreased legal
expenses of approximately $104,000 while the September 30, 2012, general and
administrative expenses were also impacted by a charge taken in the third
quarter of 2012 of approximately $612,000 pertaining to a legal reserve and
approximately $145,000 related to a one-time payment to a retiring senior
executive. Net income for the quarter ended September 30, 2013, was $0.22 per
share, compared to a $0.10 per share loss during the same period in 2012. The
impact on net income from the $1.0 million in revenue from the payment related
to the amendment of the Company’s oil exploration lease was $0.11 per share.

Net income for the nine months ended September 30, 2013, was approximately
$1.8 million, compared to net income of approximately $537,000 in the same
period of 2012, an increase of approximately $1.3 million or 241%.
Contributing to the increase in net income of approximately $1.3 million was
the after tax results of the aforementioned increases in our revenues of $3.8
million, or 31%, net of the increase in direct costs of those revenues of
approximately $365,000 offset by increases in our depreciation and
amortization of approximately $638,000, attributable to our larger income
property portfolio, and increased interest expense of approximately $841,000
and a $616,000 impairment charge taken on certain land of which a portion was
previously under contract. Our increased net income also benefited from lower
general and administrative expenses, which decreased by approximately $849,000
with such decrease primarily due to the September 30, 2012, general and
administrative expenses including the impact of a charge taken in the third
quarter of 2012 of approximately $612,000 pertaining to a legal reserve and
approximately $145,000 related to a one-time payment to a retiring senior
executive. In addition, the net income for the nine months ended September 30,
2012, benefited from the aforementioned land transaction and the resolution of
the Dunn Avenue extension obligation, an after tax impact of $0.14 per share,
offset by an impairment loss totaling approximately $616,000, an after tax
impact of $0.07 per share. Net income for the nine months ended September 30,
2013, was $0.32 per share, compared to $0.09 per share during the same period
in 2012.

Income Property Portfolio Update

On July 25, 2013, the Company acquired a 16,280-square-foot building leased to
a subsidiary of Rite Aid Corp. in Renton, Washington, a suburb of Seattle. The
total purchase price was approximately $6.6 million. On the acquisition date,
the remaining term of the lease was 13 years, with lease escalations during
the six 5-year renewal option periods.

On September 13, 2013, the Company acquired a 25,600-square-foot building
leased to Big Lots in Germantown, Maryland. The total purchase price was
approximately $5.0 million. On the acquisition date, the remaining term of the
lease was approximately 10.4 years, with three 5-year renewal option periods.

On October 14, 2013, the Company executed a purchase and sale agreement to
sell its interest in the 15,120-square-foot building under lease to Walgreens,
located in Orlando, Florida. As a result, this property’s operating results
were included in discontinued operations for each of the three and nine month
periods ending September 30, 2013, and 2012, respectively.

Land Update

We expect to close on the transaction we have with a convenience store
operator for the 3.4-acre pad site at the southeast corner of LPGA and
Williamson Boulevards in the fourth quarter of 2013.

We also expect to close on a two-acre pad site along LPGA Boulevard, on the
east side of Interstate 95, late in the fourth quarter.

During the quarter, the 3.21-acre site on the west side of Interstate 95 that
was under contract in the second quarter was terminated by the buyer.

CEO and CFO Comments on Operating Results

Mark E. Patten, senior vice president and chief financial officer, stated, “We
are pleased with the results of our operating segments, especially the cash
flow generated in our real estate operations from the amendment to our oil
exploration lease with Kerogen.” Mr. Patten continued, “In addition, our golf
operations continue to trend positively over the prior year as did our general
and administrative expenses.” Mr. Patten further noted, “Considering our
active investment levels in the third quarter, we ended the quarter with
continued modest leverage and ample liquidity under our credit facility.”

John P. Albright, president and chief executive officer, stated, “Our
investments in the quarter totaling approximately $29.3 million further
strengthen the foundation of our income producing investment portfolio which
are starting to produce attractive cash flows, and are also reflected in our
best earnings performance in approximately five years.” Mr. Albright
continued, “We are particularly pleased to have achieved these results without
the benefit of income from land sales, although we hope to close two land
transactions in the fourth quarter of this year.”

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 September 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 third quarter and nine months ended September 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 September 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)
                                           September 30,       December 31,
                                             2013                2012
ASSETS
Cash and Cash Equivalents                  $ 743,424           $ 1,301,739
Restricted Cash                              322,562             —
Refundable Income Tax                        —                   239,720
Commercial Mortgage Loan, Held for           18,006,024          —
Investment
Land and Development Costs                   26,520,183          27,848,525
Intangible Assets – Net                      6,616,419           4,527,426
Assets Held for Sale                         3,203,100           3,433,500
Other Assets                                8,654,440         8,254,399   
                                                               
                                            64,066,152        45,605,309  
                                                               
Property, Plant, and Equipment:
Land, Timber, and Subsurface Interests       15,241,501          15,194,901
Golf Buildings, Improvements, and            3,013,856           2,879,263
Equipment
Income Properties, Land, Buildings,          158,189,373         132,202,887
and Improvements
Other Furnishings and Equipment              920,703             906,441
Construction in Process                     51,215            —           
                                                               
Total Property, Plant, and Equipment         177,416,648         151,183,492
Less, Accumulated Depreciation and          (12,758,397 )      (12,091,901 )
Amortization
                                                               
Property, Plant, and Equipment – Net        164,658,251       139,091,591 
                                                               
TOTAL ASSETS                               $ 228,724,403      $ 184,696,900 
                                                               
LIABILITIES
Accounts Payable                           $ 453,883           $ 440,541
Accrued Liabilities                          5,499,913           6,121,392
Deferred Revenue                             4,199,583           850,951
Accrued Stock-Based Compensation             346,418             265,311
Pension Liability                            1,225,932           1,317,683
Income Taxes Payable                         1,356,638           —
Deferred Income Taxes – Net                  31,646,987          32,357,505
Long-Term Debt                              66,727,032        29,126,849  
                                                               
TOTAL LIABILITIES                           111,456,386       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 September 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 held at September 30, 2013 and        (453,654    )       (453,654    )
December 31, 2012
Additional Paid-In Capital                   8,292,677           6,939,023
Retained Earnings                            104,901,682         103,242,643
Accumulated Other Comprehensive Loss        (1,237,480  )      (1,237,480  )
                                                               
TOTAL SHAREHOLDERS’ EQUITY                  117,268,017       114,216,668 
                                                               
TOTAL LIABILITIES AND SHAREHOLDERS’        $ 228,724,403      $ 184,696,900 
EQUITY
                                                                             


CONSOLIDATED-TOMOKA LAND CO.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)
                                                    
                   Three Months Ended                    Nine Months Ended
                   September 30,    September 30,      September 30,     September 30,
                     2013               2012               2013                2012
Revenues
Income             $ 3,356,937        $ 2,177,895        $ 9,621,147         $ 6,390,847
Properties
Interest
Income from          644,198            —                  644,198             —
Commercial
Mortgage Loan
Real Estate          1,369,397          421,983            2,010,722           2,417,367
Operations
Golf                 981,118            861,326            3,758,629           3,443,984
Operations
Agriculture
and Other           20,845           95,971           149,028           146,629     
Income
                                                                             
Total Revenues      6,372,495        3,557,175        16,183,724        12,398,827  
                                                                             
Direct Cost of
Revenues
Income               (427,341   )       (199,710   )       (1,038,922  )       (518,904    )
Properties
Real Estate          (174,411   )       (143,138   )       (480,152    )       (531,913    )
Operations
Golf                 (1,321,337 )       (1,314,428 )       (4,154,338  )       (4,210,961  )
Operations
Agriculture
and Other           (33,821    )      (28,530    )      (120,275    )      (166,420    )
Income
                                                                             
Total Direct
Cost of              (1,956,910 )       (1,685,806 )       (5,793,687  )       (5,428,198  )
Revenues
                                                                             
General and
Administrative       (1,207,593 )       (2,311,448 )       (4,221,831  )       (5,070,383  )
Expenses
Impairment           —                  —                  (616,278    )       —
Charges
Depreciation
and                  (738,537   )       (509,242   )       (2,146,515  )       (1,508,801  )
Amortization
Gain on
Disposition of      —                (33,513    )      —                 242,051     
Assets
                                                                             
Total
Operating           (3,903,040 )      (4,540,009 )      (12,778,311 )      (11,765,331 )
Expenses
                                                                             
Operating            2,469,455          (982,834   )       3,405,413           633,496
Income
                                                                             
Interest             —                  453                391                 820
Income
Interest             (509,898   )       (152,847   )       (1,316,026  )       (475,449    )
Expense
Loss on Early
Extinguishment      —                —                —                 (245,726    )
of Debt
                                                                             
Income (Loss)
from
Continuing
Operations
Before Income        1,959,557          (1,135,228 )       2,089,778           (86,859     )
Tax Expense
Income Tax
(Expense)           (755,918   )      433,244          (796,738    )      36,656      
Benefit
                                                                             
Income (Loss)
from                 1,203,639          (701,984   )       1,293,040           (50,203     )
Continuing
Operations
Income from
Discontinued        38,665           145,378          538,079           587,584     
Operations
(Net of Tax)
                                                                             
Net Income         $ 1,242,304       $ (556,606   )     $ 1,831,119        $ 537,381     
(Loss)
                                                                             
                                                                             
Per Share
Information:
Basic and
Diluted
Income (Loss)
from               $ 0.21             $ (0.13      )     $ 0.23              $ (0.01       )
Continuing
Operations
Income from
Discontinued        0.01             0.03             0.09              0.10        
Operations
(Net of Tax)
                                                                             
Net Income         $ 0.22            $ (0.10      )     $ 0.32             $ 0.09        
(Loss)
                                                                             
Dividends
Declared and       $ —               $ —               $ 0.03             $ 0.02        
Paid
                                                                                           

Contact:

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