DAYTONA BEACH, Fla., April 21 - Consolidated- Tomoka Land Co. (Amex: CTO) today reported net income of $2,180,831 or $.38 basic per share earnings and earnings before depreciation, amortization and deferred taxes (EBDDT) of $3,892,547 or $.69 per share for the quarter ended March 31, 2006. The comparable numbers for the first quarter of 2005 were net income of $9,082,433 or $1.61 basic per share and EBDDT of $14,480,653 or $2.56 per share.
EBDDT is being provided to reflect the impact of the Company's business strategy of investing in income properties utilizing tax deferred exchanges. This strategy generates significant amounts of depreciation and deferred taxes. The Company believes EBDDT is useful, along with net income, to understand the Company's operating results.
William H. McMunn, president and chief executive officer, stated, "Operating results for the first three months reflect a continuing healthy commercial real estate market in the Daytona Beach, Florida area. The Company has a significant backlog of contracts expected to close during 2006. It is important for our shareholders to understand that the timing and size of real estate sales can and do vary significantly from quarter to quarter. Operating results from the Company's growing portfolio of net lease income properties rose over 30% compared to last year's same period. First quarter net income includes a $216,000 or $.04 per basic share one-time charge net of income taxes reflecting a mandated change in accounting for stock options."
Consolidated-Tomoka Land Co. is a Florida-based Company primarily engaged in converting Company owned agricultural lands into a portfolio of income properties strategically located throughout the Southeast, and development, management and sale of targeted real estate properties. Visit our website at http://www.consolidatedtomoka.com .
EARNINGS NEWS RELEASE
QUARTER ENDED
MARCH 31, MARCH 31,
2006 2005
REVENUES $8,388,718 $23,329,993
NET INCOME BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE $2,396,924 $9,082,433
CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE
(NET OF INCOME TAX) ($216,093)(1) --
NET INCOME $2,180,831 $9,082,433
BASIC EARNINGS PER SHARE:
NET INCOME BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE $0.42 $1.61
CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE
(NET OF INCOME TAX) ($0.04)(1) --
NET INCOME $0.38 $1.61
DILUTED EARNINGS PER SHARE:
NET INCOME BEFORE CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING PRINCIPLE $0.42 $1.59
CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE
(NET OF INCOME TAX) ($0.04)(1) --
NET INCOME $0.38 $1.59
(1) THE CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE REPRESENTS
THE CHANGE IN ACCOUNTING FOR STOCK OPTIONS WITH THE ADOPTION OF FINANCIAL
ACCOUNTING STANDARDS BOARD STATEMENT NO. 123 (REVISED 2004).
RECONCILIATION OF NET INCOME TO EARNINGS BEFORE
DEPRECIATION, AMORTIZATION AND DEFERRED TAXES
QUARTER ENDED
MARCH 31, MARCH 31,
2006 2005
NET INCOME $2,180,831 $9,082,433
ADD BACK:
DEPRECIATION & AMORTIZATION 499,600 399,731
DEFERRED TAXES 1,212,116 4,998,489
EARNINGS BEFORE DEPRECIATION,
AMORTIZATION AND DEFERRED TAXES $3,892,547 $14,480,653
WEIGHTED AVERAGE SHARES OUTSTANDING 5,670,400 5,649,799
EBDDT PER SHARE $0.69 $2.56
EBDDT -- EARNINGS BEFORE DEPRECIATION, AMORTIZATION, AND DEFERRED TAXES.
EBDDT IS NOT A MEASURE OF OPERATING RESULTS OR CASH FLOWS FROM OPERATING
ACTIVITIES AS DEFINED BY U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.
FURTHER, EBDDT IS NOT NECESSARILY INDICATIVE OF CASH AVAILABILITY TO FUND
CASH NEEDS AND SHOULD NOT BE CONSIDERED AS AN ALTERNATIVE TO CASH FLOW AS
A MEASURE OF LIQUIDITY. THE COMPANY BELIEVES, HOWEVER, THAT EBDDT
PROVIDES RELEVANT INFORMATION ABOUT OPERATIONS AND IS USEFUL, ALONG WITH
NET INCOME, FOR AN UNDERSTANDING OF THE COMPANY'S OPERATING RESULTS.
EBDDT IS CALCULATED BY ADDING DEPRECIATION, AMORTIZATION AND DEFERRED
INCOME TAXES TO NET INCOME AS THEY REPRESENT NON-CASH CHARGES.
CONSOLIDATED BALANCE SHEETS
MARCH 31, DECEMBER 31,
2006 2005
ASSETS $ $
Cash 235,381 1,127,143
Restricted Cash 8,796,611 7,840,167
Investment Securities 11,782,150 14,341,097
Land and Development
Costs 9,780,249 9,142,551
Intangible Assets 4,516,641 4,591,944
Other Assets 4,922,247 5,205,415
40,033,279 42,248,317
Property, Plant & Equipment:
Land, Timber and
Subsurface Interests 2,440,540 2,280,355
Golf Buildings,
Improvements & Equipment 11,393,245 11,382,515
Income Properties Land,
Buildings & Improvements 91,686,967 91,656,972
Other Building, Equipment
and Land Improvements 1,973,062 1,769,407
Total Property, Plant
and Equipment 107,493,814 107,089,249
Less, Accumulated
Depreciation and
Amortization (6,503,387) (6,079,090)
Net - Property, Plant and
Equipment 100,990,427 101,010,159
TOTAL ASSETS 141,023,706 143,258,476
LIABILITIES
Accounts Payable 274,447 248,698
Accrued Liabilities 9,357,317 6,083,047
Income Taxes Payable 1,098,915 5,157,171
Deferred Income Taxes 25,371,190 24,159,074
Deferred Profit 3,899,613 5,345,006
Notes Payable 7,240,189 7,297,593
TOTAL LIABILITIES 47,241,671 48,290,589
SHAREHOLDERS' EQUITY
Common Stock 5,671,749 5,667,796
Additional Paid in
Capital 1,147,641 4,168,865
Retained Earnings 87,162,369 85,435,246
Accumulated Other
Comprehensive Loss (199,724) (304,020)
TOTAL SHAREHOLDERS'
EQUITY 93,782,035 94,967,887
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 141,023,706 143,258,476
"Safe Harbor"
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, 2006, and thereafter include many factors that are beyond the Company's ability to control or estimate precisely. These risks and uncertainties include, but are not limited to, the strength of the real estate market in the City of Daytona Beach in Volusia County, Florida; the ability to successfully execute acquisition or development strategies; any loss of key management personnel; changes in local, regional and national economic conditions affecting the real estate development business and income properties; the impact of environmental and land use regulations; the impact of competitive real estate activity; variability in quarterly results due to the unpredictable timing of land sales; the loss of any major income property tenants; and the availability of capital. Additional information concerning these and other factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the Company's Securities and Exchange Commission filings, including, but not limited to, the Company's 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 first quarter financial results are preliminary and are subject to change in connection with the Company's preparation and filing of its Form 10-Q for the quarter ended March 31, 2006. The financial information in this release reflects the Company's preliminary results subject to completion of the quarterly 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 financial statements.
This release refers to certain non-GAAP financial measures. As required by the SEC, the Company has provided a reconciliation of these measures to the most directly comparable GAAP measures with this release. Non-GAAP measures as the Company has calculated them may not be comparable to similarly titled measures reported by other companies.
