PRESS RELEASE
For Immediate Release
Date: July 18, 2006
Contact: Bruce W. Teeters, Sr. Vice President
Phone: (386) 274-2202
Facsimile: (386) 274-1223
CONSOLIDATED TOMOKA ANNOUNCES SECOND QUARTER EARNINGS
DAYTONA BEACH FLORIDA - Consolidated-Tomoka Land Co. (AMEX-CTO)
today reported net income of $3,791,933 or $.67 per basic share for the
quarter ended June 30, 2006, compared with net income of $851,126 or
$.15 per basic share for 2005's same period. Earnings before
depreciation, amortization and deferred taxes (EBDDT) totaled $.77 per
share in 2006's second quarter, compared with a negative $.20 per share
in 2005. For the six months ended June 30, 2006, net income totaled
$1.05 per basic share and EBDDT totaled $1.46 per share. The
comparable numbers for the first six months of 2005 were net income
of $1.76 per basic share and EBDDT of $2.36 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 understanding the Company's
operating results.
William H. McMunn, president and chief executive officer, stated,
"Operating results for the second quarter reflect higher land sales
profit including recognition of approximately $2,590,000 of profit
deferred from prior period sales. Profits from income properties rose
25% compared to last year's same period. In mid-June, the Company
acquired stores leased by Best Buy and Dick's Sporting Goods in
Atlanta, Georgia, increasing the portfolio of net-lease properties to
twenty-five. Also, positively impacting second quarter profits were
decreased stock option expense accruals compared with 2005. Management
continues to focus on closing a backlog of pending contracts during the
balance of the year."
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 www.consolidatedtomoka.com
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EARNINGS NEWS RELEASE
QUARTER ENDED
----------------------------
JUNE 30, JUNE 30,
2006 2005
------------ ------------
REVENUES $8,734,237 $6,367,019
============ ============
NET INCOME BEFORE DISCONTINUED OPERATIONS AND
CUMMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE $3,543,479 853,309
DISCONTINUED OPERATIONS (NET OF INCOME TAX) $248,454 ($2,183)
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE -- --
(NET OF INCOME TAX)
----------- ------------
NET INCOME $3,791,933 $851,126
=========== ============
BASIC EARNINGS PER SHARE:
NET INCOME BEFORE DISCONTINUED OPERATIONS AND
CUMMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE $0.63 $0.15
DISCONTINUED OPERATIONS (NET OF INCOME TAX) $0.04 --
CULULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
(NET OF INCOME TAX) -- --
----------- ------------
NET INCOME $0.67 $0.15
=========== ============
DILUTED EARNINGS PER SHARE:
NET INCOME BEFORE DISCONTINUED OPERATIONS AND
CUMMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE $0.63 $0.14
DISCONTINUED OPERATIONS (NET OF INCOME TAX) $0.04 --
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
(NET OF INCOME TAX) -- --
----------- ------------
NET INCOME $0.67 $0.14
=========== ============
SIX MONTHS ENDED
----------------------------
JUNE 30, JUNE 30,
2006 2005
----------- ------------
REVENUES $17,122,955 $29,673,941
=========== ============
NET INCOME BEFORE DISCONTINUED OPERATIONS AND
CUMMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE $5,948,381 $9,924,462
DISCONTINUED OPERATIONS (NET OF INCOME TAX) $240,476 $9,097
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE
(NET OF INCOME TAX) ($216,093) (1)
----------- ------------
NET INCOME $5,972,764 $9,993,559
=========== ============
BASIC EARNINGS PER SHARE:
NET INCOME BEFORE DISCONTINUED OPERATIONS AND
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE $1.05 $1.76
DISCONTINUED OPERATIONS (NET OF INCOME TAX) $0.04 --
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE ($0.04) (1) --
(NET OF INCOME TAX)
----------- ------------
NET INCOME $1.05 $1.76
=========== ============
DILUTED EARNINGS PER SHARE:
NET INCOME BEFORE DISCONTINUED OPERATIONS AND
CUMMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE $1.05 $1.73
DISCONTINUED OPERATIONS (NET OF INCOME TAX) $1.04 --
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE ($0.04) (1) --
----------- ------------
NET INCOME $1.05 $1.73
=========== ============
(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).
PAGE> 2
RECONCILIATION OF NET INCOME TO EARNINGS BEFORE
DEPRECIATION, AMORTIZATION, AND DEFERRED TAXES
QUARTER ENDED
-----------------------
JUNE 30, JUNE 30,
2006 2005
------------ ----------
Net Income $3,791,933 $ 851,126
Add Back:
Depreciation and Amortization 526,509 425,342
Deferred Taxes 99,038 (2,383,638)
Earnings Before Depreciation, ----------- ------------
Amortization, and Deferred Taxes $ 4,417,480 ($1,107,170)
=========== ============
WEIGHTED AVERAGE SHARES OUTSTANDING 5,675,911 5,663,898
=========== ============
EBDDT PER SHARE $0.77 ($0.20)
=========== ============
SIX MONTHS ENDED
--------------------------
JUNE 30, JUNE 30,
2006 2005
----------- ------------
Net Income $5,972,764 $9,933,559
Add Back:
Depreciation and Amortization 1,026,109 825,073
Deferred Taxes 1,311,154 2,614,851
----------- ------------
Earnings Before Depreciation,
Amortization, and Deferred Taxes $8,310,027 $13,373,483
=========== ===========
WEIGHTED AVERAGE SHARES OUTSTANDING 5,681,631 5,656,888
=========== ===========
EBDDT Per Share $1.46 $2.36
===== =====
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 accounting principles generally accepted in the United States of
America. Further, EBDDT is not accepted in the United States of America
Further, EBDDT is not necessarily indicative of cash availability to fund
cash needs and should not be considered as an alternative to fund 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.
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CONSOLIDATED-TOMOKA LAND CO.
CONSOLIDATED BALANCE SHEET
JUNE 30, DECEMBER 31,
2006 2005
------------ -----------
ASSETS
Cash $ 191,967 $ 1,127,143
Restricted Cash 0 7,840,167
Investment Securities 8,759,227 14,341,097
Land and Development Costs 10,848,455 9,142,551
Intangible Assets 5,296,617 4,591,944
Other Assets 5,760,919 5,205,415
---------- ----------
$ 30,857,185 $42,248,317
---------- ----------
Property, Plant and Equipment:
Land, Timber and Subsurface Interests $ 2,629,265 $ 2,280,355
Golf Buildings, Improvements and Equipment 11,430,972 11,382,515
Income Properties Land, Buildings and Improvements 104,819,695 91,656,972
Other Building, Equipment and Land Improvements 2,219,273 1,769,407
---------- ----------
Total Property, Plant and Equipment 121,099,205 107,089,249
Less Accumulated Depreciation and Amortization (6,845,322) (6,079,090)
---------- ----------
Net - Property, Plant and Equipment 114,253,883 101,010,159
---------- ----------
TOTAL ASSETS $145,111,068 $143,258,476
=========== ===========
LIABILITIES
Accounts Payable $ 1,461,429 $ 248,698
Accrued Liabilities 7,555,922 6,083,047
Income Taxes Payable 1,915,892 5,157,171
Deferred Income Taxes 25,470,228 24,159,074
Deferred Profit 2,272,918 5,345,006
Notes Payable 7,863,051 7,297,593
---------- ----------
TOTAL LIABILITIES $ 46,539,440 $ 48,290,589
---------- ----------
SHAREHOLDERS' EQUITY
Common Stock 5,687,949 5,667,796
Additional Paid in Capital 2,506,182 4,168,865
Retained Earnings 90,499,266 85,435,246
Accumulated Other Comprehensive Loss ( 121,769) ( 304,020)
---------- ----------
TOTAL SHAREHOLDERS' EQUITY 98,571,628 94,967,887
---------- ----------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $145,111,068 $143,258,476
=========== ===========
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