Consolidated-Tomoka Land Co. Reports First Quarter 2014 Earnings of $0.26 Per Share

  Consolidated-Tomoka Land Co. Reports First Quarter 2014 Earnings of $0.26
  Per Share

Business Wire

DAYTONA BEACH, Fla. -- April 23, 2014

Consolidated-Tomoka Land Co. (NYSE MKT:CTO) (the “Company”) today announced
its operating results and earnings for the quarter ended March 31, 2014.


Operating results for the quarter ended March 31, 2014 (compared to the same
quarterly period in 2013):

  *Net income was $0.26 per share, an increase of $0.20 per share;
  *Revenue from Income Properties totaled approximately $3.4 million, an
    increase of 15%;
  *Revenue from Commercial Mortgage Loans totaled approximately $944,000;
  *Revenue from Real Estate Operations totaled approximately $1.3 million, an
    increase of 277%;
  *Revenue from Golf Operations decreased by 3%, while net operating results
    improved by 48%;
  *Agriculture and Other Income generated a loss of approximately $4,000; and
  *The weighted average lease duration of our income property portfolio
    equaled 10.0 years as of March 31, 2014, down from 10.4 years as of March
    31, 2013.


Other highlights for the quarter ended March 31, 2014 include the following:

  *Repurchased 25,836 shares of the Company’s stock for a total of
    approximately $928,000 at an average price of $35.92 per share;
  *Successfully foreclosed on approximately 600 acres of land west of I-95 in
    January 2014, satisfying the Company’s approximate $4.7 million claim for
    unreimbursed road costs and accrued interest;
  *The Company’s first commercial mortgage loan was paid in full and a $5.0
    million mezzanine loan on the same property was acquired;
  *Sold an approximate 3.1 acres of land for approximately $128,000 per acre;
  *Debt totaled approximately $47.2 million at March 31, 2014, a $16 million
    reduction from the approximate $63.2 million at December 31, 2013, with
    $49.2 million of available borrowing capacity on our credit facility, and
  *Total cash (excluding restricted cash) was approximately $1.1 million.

Income Property Portfolio Update

Property Acquisitions

On April 22, 2014, the Company acquired a 131,644 square-foot building
situated on 15.48 acres leased to Lowe’s Home Improvement, an S&P A- credit,
in Katy, Texas, a suburb of Houston. The lease has approximately 13 years
remaining on an initial term of 30 years. The total purchase price was
approximately $14.7 million. This is the Company’s first acquisition in Texas
in a market with strong demographics and job growth.

Self-Developed Properties

Construction of the Company’s third self-developed flex-office property,
Williamson Business Park in Daytona Beach, Florida, is expected to be
completed early in the second quarter of 2014. The Company executed a 10-year
lease for 7,700 square feet of the two-building 31,000 square-foot property
which will commence in May 2014.

The Company signed a 3-year lease for 1,905 square feet in the Concierge
Office Building in Daytona Beach, Florida for 3 years, bringing the building’s
total occupancy to approximately 83% leased.

Commercial Mortgage Loan Update

In August 2013, the Company acquired a $19.6 million performing mortgage loan,
with an interest rate of one-month LIBOR plus 450 basis points, collateralized
by an upper upscale hotel in Atlanta, Georgia, for approximately $17.5
million, a discount of approximately $2.1 million. On January 6, 2014, the
outstanding principal of $19.5 million was paid in full. The Company earned
approximately $2.6 million during the five months of its investment, $844,000
of which was recognized during the first quarter of 2014.

On January 31, 2014, the Company acquired a $5.0 million mezzanine loan
secured by the borrower’s equity interest in an upper upscale hotel in
Atlanta, Georgia, that was previously subject to the Company’s first
commercial mortgage loan investment. The Company purchased the performing loan
at par. The loan matures in February 2019 and bears a fixed interest rate of
12% per annum. The loan generated $100,000 of interest income during the first
quarter of 2014.

Land Update

During the first quarter of 2014, the Company sold approximately 3.1 acres to
Halifax Humane Society, Inc. for $391,500, or approximately $128,000 per acre,
for a gain of approximately $347,000. This parcel is located on LPGA
Boulevard, just west of I-95 in Daytona Beach, Florida, and is adjacent to an
existing property owned by Halifax Humane Society, Inc.

Financial Results


Total revenue for the quarter ended March 31, 2014 increased 46% to
approximately $7.1 million, compared to approximately $4.9 million during the
same period in 2013. This increase was primarily the result of an increase of
approximately $450,000, or 15%, in revenue generated by our income properties,
an increase of approximately $938,000, or 277%, in revenue from our real
estate operations, and approximately $944,000 in revenue from our investment
in commercial mortgage loans (including interest earned and the accretion of a
purchase discount), which we did not have in 2013. Revenue from our real
estate operations benefited from a land sale of approximately 3.1 acres, which
generated revenue of $391,500, and an increase of approximately $586,000 from
our subsurface lease that was amended in September 2013. We had no land sales
in the same period in 2013.

Net Income (Loss)

Net income for the quarter ended March 31, 2014 was approximately $1.5
million, compared to approximately $337,000 in the same period in 2013. Our
results in the first quarter of 2014 benefited from approximately $2.2
million, or 46%, in increased revenues and a decrease in operating expenses of
approximately $47,000, or 1%. Our general and administrative costs decreased
14%, or approximately $243,000, in the first quarter of 2014 compared to the
same period in 2013, due primarily to a decrease in stock compensation costs
of approximately $153,000 and a one-time separation payment of approximately
$103,000 in the first quarter of 2013. Net income for the quarter ended March
31, 2014, was $0.26 per share, compared to $0.06 per share during the same
period in 2013, an increase of $0.20 per share or 333%.

CEO and CFO Comments on Operating Results

Mark E. Patten, senior vice president and chief financial officer, stated, “We
are pleased with our operating results and the generation of substantive cash
flows reflecting the full benefit of the growth in our income property
portfolio, the income from our investment in commercial mortgage loans, and a
land transaction we closed in February.” Mr. Patten continued, “We are also
pleased that we have continued to achieve meaningful improvements in lowering
our general and administrative expenses.”

John P. Albright, president and chief executive officer, stated, “We were
delighted to have been able to repurchase almost $1 million of our common
shares at favorable values especially in light of our successes with our first
commercial loan investment, the litigation success on recapturing
approximately 600 acres of previously entitled residential land, and the
completion of another land sale in the quarter.” Mr. Albright also noted, “The
local market continues to show strength and the growing interest in our land
holdings is directly correlated to the improved market conditions.”

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 10,500 acres of land in the Daytona Beach
area. Visit our website at

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 year ended December 31, 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. 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 quarter-end
financial results are preliminary and are subject to change in connection with
the Company’s preparation and filing of its Form 10-K for the year ended
December 31, 2013. The financial information in this release reflects the
Company’s preliminary results subject to completion of the yearend review
process. The final results for the year 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 financial

                                                               December 31,
                                             March 31,         2013

Property, Plant, and Equipment:
Land, Timber, and Subsurface interests       $ 15,335,483      $ 15,291,911
Golf Buildings, Improvements, and              3,139,372         3,103,979
Income Properties, Land, Buildings, and        154,907,360       154,902,374
Other Furnishings and Equipment                964,484           955,597
Construction in Progress                      1,734,341       987,303     
Total Property, Plant, and Equipment           176,081,040       175,241,164
Less, Accumulated Depreciation and            (13,863,734 )    (13,260,856 )
Property, Plant, and Equipment - Net           162,217,306       161,980,308
Land and Development Costs                     24,085,570        23,768,914
Intangible Assets - Net                        6,190,308         6,359,438
Impact Fee and Mitigation Credits              6,008,698         6,081,433
Commercial Mortgage Loans, Held for            5,000,000         18,845,053
Cash and Cash Equivalents                      1,058,652         4,932,512
Restricted Cash                                812,593           366,645
Investment Securities                          800,442           729,814
Net Pension Asset                              436,049           407,670
Other Assets                                  3,193,216       2,711,893   
Total Assets                                 $ 209,802,834    $ 226,183,680 
Accounts Payable                             $ 1,056,967       $ 872,331
Accrued Liabilities                            4,322,918         4,726,809
Deferred Revenue                               2,338,788         3,344,351
Accrued Stock-Based Compensation               347,720           247,671
Income Taxes Payable                           1,104,153         1,044,061
Deferred Income Taxes - Net                    32,428,978        32,552,068
Long-Term Debt                                47,227,032      63,227,032  
Total Liabilities                             88,826,556      106,014,323 
Shareholders’ Equity:
Common Stock -25,000,000 shares
authorized; $1 par value, 5,881,259 shares
issued and -5,840,789 shares outstanding       5,767,192         5,767,192
at March 31, 2014; 5,866,759 shares issued
and 5,852,125 shares outstanding at
December 31, 2013
Treasury Stock – 40,470 shares at March
31, 2014; 14,634 shares at December 31,        (1,381,566  )     (453,654    )
Additional Paid-In Capital                     8,701,019         8,509,976
Retained Earnings                              108,081,712       106,581,305
Accumulated Other Comprehensive Loss          (192,079    )    (235,462    )
Total Shareholders’ Equity                    120,976,278     120,169,357 
Total Liabilities and Shareholders’ Equity   $ 209,802,834    $ 226,183,680 

                                               Three Months Ended
                                               March 31,       March 31,
                                                 2014             2013
Income Properties                              $ 3,404,359      $ 2,954,516
Interest Income from Commercial Mortgage         943,890          —
Real Estate Operations                           1,276,513        338,348
Golf Operations                                  1,417,379        1,464,685
Agriculture and Other Income                    57,844         97,677     
Total Revenues                                  7,099,985      4,855,226  
Direct Cost of Revenues
Income Properties                                (340,019   )     (229,509   )
Real Estate Operations                           (179,216   )     (121,478   )
Golf Operations                                  (1,333,026 )     (1,407,629 )
Agriculture and Other Income                    (61,413    )    (31,369    )
Total Direct Cost of Revenues                    (1,913,674 )     (1,789,985 )
General and Administrative Expenses              (1,510,434 )     (1,753,564 )
Depreciation and Amortization                   (772,008   )    (699,134   )
Total Operating Expenses                        (4,196,116 )    (4,242,683 )
Operating Income                                 2,903,869        612,543
Interest Income                                  13,947           166
Interest Expense                                (467,651   )    (337,532   )
Income from Continuing Operations
Before Income Tax Expense                        2,450,165        275,177
Income Tax (Expense) Benefit                    (949,758   )    (101,089   )
Income from Continuing Operations                1,500,407        174,088
Income from Discontinued Operations (Net of     —              162,957    
Net Income                                     $ 1,500,407     $ 337,045    
Per Share Information:
Basic and Diluted
Income from Continuing Operations              $ 0.26           $ 0.03
Income from Discontinued Operations (Net of     —              0.03       
Net Income                                     $ 0.26          $ 0.06       
Dividends Declared and Paid                    $ —             $ —          


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