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Consolidated-Tomoka Land Co. Reports Earnings of $1.21 Per Share for the First Quarter of 2019

By GlobeNewswire,  April 16, 2019, 04:20:00 PM EDT


DAYTONA BEACH, Fla., April 16, 2019 (GLOBE NEWSWIRE) -- Consolidated-Tomoka Land Co. (NYSE American:CTO) (the "Company") today announced its operating results and earnings for the quarter ended March 31, 2019.

QUARTER HIGHLIGHTS

Land Holdings

Closed Transaction: one land sale of approximately 10 acres for a sales price of $3.3 million, or approximately $333,000 per acre, for a gain of approximately $2.3 million, or $0.32 per share, after tax.

Land Pipeline: fifteen (15) contracts; more than 3,200 acres, or approximately 60%; potential proceeds of more than $93 million, or average sales price of approximately $29,000 per acre.

Income Property Portfolio

First quarter 2019 revenues increased approximately 16% over the same period in 2018.

Sold one multi-tenant income property, located in Sarasota, Florida for a sales price of approximately $24.6 million for a gain of approximately $6.9 million, or $0.96 per share, after tax.

Share Repurchase Program

In January 2019 the Board authorized a $10 million increase to stock buyback program.

From January 1, 2019 through March 31, 2019: Repurchased 70,708 shares for approximately $4.1 million; average purchase price of $58.34 per share.

Book Value Per Share

Book value per share totaled $39.72 as of March 31, 2019; increase of $0.77 per share, or 2%, compared to year-end 2018.

SUBSEQUENT EVENTS

On April 10, 2019, the Company repurchased 320,741 shares of the Company's common stock (the "Block Share Repurchase"), or approximately 6% of the Company's outstanding shares, for approximately $18.4 million, as part of the disposition of the entire position owned by its largest shareholder.

The Block Share Repurchase was completed outside of the Company's existing $10 million buyback program.

Income Property Update

The following table provides a summary of the Company's income property portfolio as of March 31, 2019compared with the portfolio as of March 31, 2018:

  # of Properties Total Square Feet Average Remaining Lease Term (Yrs.)
Property Type 2019 2018 2019 2018 2019 2018
Single-Tenant 40 29 1,829,276 1,561,053 9.4 9.6
Multi-Tenant 6 7 472,574 531,915 4.3 3.9
Total / Wtd. Avg. 46 36 2,301,850 2,092,968 8.4 8.0

Land Pipeline Update

As of April 15, 2019, the Company's pipeline of potential land sales transactions includes the following fifteen (15) potential transactions with thirteen (13) different buyers, representing over 3,200 acres or approximately 60% of our remaining approximately 5,400 acres of land holdings:

 



 



 



 
Transaction (Buyer) Acres Amount ($000's) Price Per Acre

($ Rounded)
Estimated Timing
1 Residential (SF) - Parcel A - West of I-95 1,599 $27.0mm $17,000 '19 - ‘20
2 Residential (SF) - ICI Homes - West of I-95 1,016 $21.5mm $21,000 ‘19
3 Commercial/Medical Office - East of I-95 32 $8.1mm $253,000 '19 - ‘20
4 Residential (MF) - East of I-95 38 $6.1mm $161,000 Q4 '19
5 Commercial/Residential - Unicorp Dev. - East of I-95 31 $4.6mm $148,000 '19 - ‘20
6 Commercial/Residential - East of I-95 12 $4.5mm $375,000 '19 - ‘20
7 Residential (MF) - East of I-95 23 $4.0mm $174,000 '19 - ‘20
8 Commercial/Residential - Unicorp Dev. - East of I-95 14 $3.8mm $271,000 '19 - ‘20
9 Commercial/Residential - NADG - East of I-95 13 $3.0mm $231,000 '19
10 Residential (Sr. Housing) - East of I-95 13 $2.6mm $200,000 '19 - ‘20
11 Residential (SF) - West of I-95 98 $2.6mm $27,000 '19 - ‘20
12 Residential (MF)/Retail - East of I-95 19 $2.0mm $105,000 ‘20
13 Residential (SF) - ICI Homes - West of I-95 146 $1.7mm $11,000 '19
14 Borrow Pit - West of I-95 149 $1.6mm $11,000  '19 - ‘20
15 Compensating Storage Pond - East of I-95 38 $0.7mm $19,000  '19
  Totals (Average) 3,241 $93.7mm $29,000  

As noted above, these agreements contemplate closing dates ranging from 2019 through fiscal year 2020, and although we anticipate that some of the transactions may close in 2019, some of the buyers may not be contractually obligated to close until after 2019. Each of the transactions are in varying stages of due diligence by the various buyers including, in some instances, making submissions to the planning and development departments of the City of Daytona Beach, pursuing permitting activities with other applicable governmental authorities including wetlands permits from the St. John's River Water Management District and the U.S. Army Corps of Engineers, conducting traffic analyses to determine potential road impact requirements with the Florida Department of Transportation, and negotiating other matters with Volusia County. In addition to other customary closing conditions, the majority of these transactions are conditioned upon the receipt of approvals or permits from those various governmental authorities, as well as other matters that are beyond our control. If such approvals are not obtained or costs to meet governmental requirements or obligations are too high, the prospective buyers may have the ability to terminate their respective agreements prior to closing. As a result, there can be no assurances regarding the likelihood or timing of any one of these potential land transactions being completed or the final terms thereof, including the sales price.

Debt Summary

The following table provides a summary of the Company's long-term debt as of March 31, 2019:

  Component of Long-Term Debt   Principal Interest Rate Maturity Date
Revolving Credit Facility   $79.84 million 30-day LIBOR +

1.50% - 2.20%
  September 2021
Mortgage Note Payable (1)   $24.39 million 3.17 % April 2021
Mortgage Note Payable   $30.00 million 4.33 % October 2034
Convertible Senior Notes   $75.00 million 4.50 % March 2020
Total Debt/Weighted-Average Rate   $209.23 million 4.13 %  



(1)  Utilized interest rate swap to achieve fixed interest rate of 3.17%

On April 10, 2019, the Company funded the Block Share Repurchase utilizing approximately $18.4 million of capacity on its Revolving Credit Facility (as part of a $20 million draw) to acquire 320,741 shares from the Company's largest shareholder.

OPERATING RESULTS

1st Quarter ended March 31, 2019 (compared to same period in 2018):

      Increase (Decrease)
    For the Quarter vs Same Period in 2018 vs Same Period in 2018 (%)
Net Income Per Share (basic)   $ 1.21 $ (0.76 ) -39 %
Operating Income ($ millions)   $ 11.72 $ (5.39 ) -32 %



      Increase (Decrease)
Operating Segment   Revenue for the Quarter

($000's)
vs Same Period in 2018

($000's)
vs Same Period in 2018 (%)
Income Properties   $ 10,724 $ 1,518   16 %
Interest Income from Commercial Loan Investments     -   (301 ) -100 %
Real Estate Operations     3,535   (10,455 ) -75 %
Total Revenues   $ 14,259 $ (9,238 ) -39 %



The operating results in the 1st Quarter ended March 31, 2019 benefited from an 11% reduction in general and administrative expenses as noted in the following summary (compared to the same period in 2018):

      Increase (Decrease)
    G&A for Vs. Same Period Vs. Same Period
    the Quarter in 2018 in 2018
General and Administrative Expenses   ($000's) ($000's) (%)
Recurring General and Administrative Expenses   $ 1,890 $   57   3 %
Non-Cash Stock Compensation       539     71   15 %
Shareholder and Proxy Matter Legal and Related Costs       73     (450 ) -86 %
Total General and Administrative Expenses   $   2,502 $   (322 ) -11 %

2019 Guidance

The following summary provides the Company's guidance for the full year ending December 31, 2019:

      Q1 2019

Actual
Guidance for

FY 2019
Earnings Per Share (Basic) (1) (2)   $ 0.25   $6.75 - $7.50  
  Earnings from Dispositions   $ 0.96   $2.25 - $2.75  
Acquisition of Income-Producing Assets     -   $80mm - $120mm  
Target Investment Yields (Initial Yield - Unlevered)     -   5.75% - 7.25 %
Disposition of Income-Producing Assets (Sales Value)     $24.6 mm $50mm - $100mm  
Target Disposition Yields     5.15 % 7.50% - 8.50 %
Land Transactions (Sales Value)     $3.3 mm $50mm - $70mm  
Leverage Target (as % of Total Enterprise Value)     39 % 40 %



(1)  Reaching full year target heavily dependent upon closing of certain land transactions
(2)  Excludes EPS from the disposition of the multi-tenant property in Sarasota, Florida completed in Q1 2019, and potential EPS from the disposition of other multi-tenant income properties included in the 2019 guidance.

1st Quarter Earnings Conference Call & Webcast

The Company will host a conference call to present its operating results for the quarter ended March 31, 2019 on Wednesday, April 17, 2019, at 9:00 a.m. eastern time. Shareholders and interested parties may access the earnings call via teleconference or webcast:

Teleconference: USA (Toll Free)      1-888-317-6003
International:   1-412-317-6061
Canada (Toll Free):    1-866-284-3684

Please dial in at least fifteen minutes prior to the scheduled start time and use the code 5412999 when prompted.

A webcast of the call can be accessed at: http://services.choruscall.com/links/cto190417.html.

To access the webcast, log on to the web address noted above or go to http://www.ctlc.com and log in at the investor relations section. Please log in to the webcast at least ten minutes prior to the scheduled time of the Earnings Call.

About Consolidated-Tomoka Land Co.

Consolidated-Tomoka Land Co. is a Florida-based publicly traded real estate company, which owns, as of April 16, 2019, a portfolio of income investments in diversified markets in the United States including approximately 2.3 million square feet of income properties, as well as approximately 5,400 acres of land in the Daytona Beach area. Visit our website at www.ctlc.com.

We encourage you to review our most recent investor presentation for the quarter ended March 31, 2019, available on our website at www.ctlc.com.

SAFE HARBOR

Certain statements contained in this press release (other than statements of historical fact) are forward-looking statements. Words such as "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. Although forward-looking statements are made based upon management's expectations and beliefs concerning future developments and their potential effect upon the Company, a number of factors could cause the Company's actual results to differ materially from those set forth in the forward-looking statements. Such factors may include the completion of 1031 exchange transactions, the modification of terms of certain land sales agreements, uncertainties associated with obtaining required governmental permits and satisfying other closing conditions, as well as the uncertainties and risk factors discussed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2018, as filed with the Securities and Exchange Commission. 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.

CONSOLIDATED-TOMOKA LAND CO.

CONSOLIDATED BALANCE SHEETS

    (Unaudited)      
    March 31,

2019
  December 31,

 2018
ASSETS            
Property, Plant, and Equipment:            
Income Properties, Land, Buildings, and Improvements   $ 392,552,156       $   392,520,783  
Other Furnishings and Equipment     730,878        728,817  
Construction in Progress     46,017         19,384  
Total Property, Plant, and Equipment     393,329,051       393,268,984  
Less, Accumulated Depreciation and Amortization     (26,737,672 )     (24,518,215 )
Property, Plant, and Equipment—Net     366,591,379       368,750,769  
Land and Development Costs     25,745,482        25,764,633  
Intangible Lease Assets—Net     42,315,994       43,555,445  
Assets Held for Sale     59,078,667       75,866,510  
Investment in Joint Venture     6,797,549       6,788,034  
Impact Fee and Mitigation Credits     447,596         462,040  
Cash and Cash Equivalents     2,682,205       2,310,489  
Restricted Cash     1,336,361         19,721,475  
Refundable Income Taxes           225,024  
Other Assets     13,512,025       12,885,453  
     Total Assets   $ 518,507,258     $ 556,329,872  
LIABILITIES AND SHAREHOLDERS' EQUITY            
Liabilities:            
Accounts Payable   $ 990,363     $ 1,036,547  
Accrued and Other Liabilities     4,268,927       5,197,884  
Deferred Revenue     6,622,253       7,201,604  
Intangible Lease Liabilities—Net     26,697,074       27,390,350  
Liabilities Held for Sale     1,641,985       1,347,296  
Income Taxes Payable     1,465,653        
Deferred Income Taxes—Net     55,880,337         54,769,907  
Long-Term Debt     206,991,712       247,624,811  
     Total Liabilities     304,558,304       344,568,399  
Commitments and Contingencies            
Shareholders' Equity:            
Common Stock - 25,000,000 shares authorized; $1 par value, 6,072,588 shares issued and 5,386,623 shares outstanding at March 31, 2019; 6,052,209 shares issued and 5,436,952 shares outstanding at December 31, 2018       6,012,993         5,995,257  
Treasury Stock - 685,965 shares at March 31, 2019; 615,257 shares at December 31, 2018     (36,470,196 )       (32,345,002 )
Additional Paid-In Capital       24,817,328         24,326,778  
Retained Earnings     219,231,100       213,297,897  
Accumulated Other Comprehensive Income       357,729         486,543  
     Total Shareholders' Equity     213,948,954       211,761,473  
     Total Liabilities and Shareholders' Equity   $ 518,507,258     $ 556,329,872  



CONSOLIDATED-TOMOKA LAND CO.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

  Three Months Ended
    March 31,

2019 
  March 31,

2018 
 Revenues        
 Income Properties $ 10,724,418   $ 9,205,727  
 Interest Income from Commercial Loan Investments   -     300,999  
 Real Estate Operations   3,534,901     13,990,517  
 Total Revenues   14,259,319     23,497,243  
 Direct Cost of Revenues        
 Income Properties     (1,932,488 )     (1,869,029 )
 Real Estate Operations     (1,625,269 )     (1,540,834 )
 Total Direct Cost of Revenues     (3,557,757 )     (3,409,863 )
 General and Administrative Expenses     (2,501,620 )     (2,823,548 )
 Depreciation and Amortization   (3,346,287 )     (3,796,823 )
Total Operating Expenses    (9,405,664 )     (10,030,234 )
             
Gain on Disposition of Assets   6,869,957     3,650,858  
Operating Income     11,723,612     17,117,867  
 Investment Income   38,755     12,312  
 Interest Expense     (2,923,229 )     (2,561,465 )
Income from Continuing Operations Before Income Tax Expense   8,839,138     14,568,714  
 



 Income Tax Expense from Continuing Operations
    (2,210,802 )     (3,558,599 )
Net Income from Continuing Operations   6,628,336     11,010,115  
Loss from Discontinued Operations (Net of Income Tax)   (160,237 )   (97,816 )
Net Income $ 6,468,099   $ 10,912,299  
         
Weighted Average Common Shares Outstanding:        
Basic   5,345,870     5,530,864  
Diluted   5,345,870     5,561,900  
         
 Per Share Information:        
Income from Continuing Operations $ 1.24   $ 1.99  
Loss from Discontinued Operations   (0.03 )   (0.02 )
Basic Net Income Per Share $ 1.21   $ 1.97  
         
Income from Continuing Operations $ 1.24   $ 1.98  
Loss from Discontinued Operations   (0.03 )   (0.02 )
 Diluted Net Income Per Share $ 1.21   $ 1.96  
         
 Dividends Declared and Paid $   0.10   $   0.06  



Contact:  Mark E. Patten, Sr. Vice President and CFO
  mpatten@ctlc.com
Phone:  (386) 944-5643
Facsimile:  (386) 274-1223

Source: Consolidated-Tomoka Land Co.

This article appears in: News Headlines

Referenced Stocks: CTO










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