Florida
(State
or other jurisdiction of incorporation or organization)
|
0-5556
(Commission
File Number)
|
59-0483700
(IRS
Employer Identification No.)
|
||
1530
Cornerstone Boulevard, Suite 100
Daytona
Beach, Florida
(Address
of principal executive offices)
|
32117
(Zip
Code)
|
|||
Registrant’s
telephone number, including area code: (386)
274-2202
|
||||
Not
Applicable
(Former
name, former address, and former fiscal year if changed since last
report.)
|
||||
Large accelerated filer o | Accelerated filer x |
Non-accelerated filer o
(Do not
check if a smaller reporting company)
|
Smaller reporting company o |
PART I - FINANCIAL INFORMATION | Page No. |
|
|
7-11
|
|
12-15
|
|
|
|
(Unaudited)
MARCH
31,
|
DECEMBER
31,
|
||||||
|
|
|
2008
|
|
|
2007
|
|
ASSETS
|
|||||||
Cash
|
$
|
164,547
|
$
|
863,826
|
|||
Restricted Cash
|
9,510,980
|
10,387,550
|
|||||
Investment Securities
|
6,590,756
|
10,193,094
|
|||||
Notes Receivable
|
4,703,693
|
5,164,421
|
|||||
Land and Development Costs
|
15,249,071
|
15,654,456
|
|||||
Intangible Assets
|
4,621,213
|
4,717,699
|
|||||
Other Assets
|
8,240,955
|
7,899,810
|
|||||
49,081,215
|
54,880,856
|
||||||
Property,
Plant, and Equipment:
|
|||||||
Land, Timber and Subsurface Interests
|
8,660,652
|
7,793,594
|
|||||
Golf Buildings, Improvements, and Equipment
|
11,718,993
|
11,713,046
|
|||||
Income Properties Land, Buildings, and Improvements
|
104,819,695
|
104,819,695
|
|||||
Other Furnishings and Equipment
|
3,081,596
|
2,910,009
|
|||||
Construction in Process | 2,059,089 | -- | |||||
Total Property, Plant, and Equipment
|
130,340,025
|
127,236,344
|
|||||
Less,
Accumulated Depreciation and Amortization
|
(10,813,114
|
)
|
(10,284,670
|
)
|
|||
Net - Property, Plant, and Equipment
|
119,526,911
|
116,951,674
|
|||||
TOTAL
ASSETS
|
$
|
168,608,126
|
$
|
171,832,530
|
|||
LIABILITIES
|
|||||||
Accounts Payable
|
$
|
268,201
|
$
|
452,090
|
|||
Accrued Liabilities
|
8,678,323
|
8,684,175
|
|||||
Accrued Stock Based Compensation
|
3,011,753
|
3,277,821
|
|||||
Income Taxes Payable
|
1,083,131
|
3,058,049
|
|||||
Deferred Income Taxes
|
32,449,382
|
32,882,399
|
|||||
Notes Payable
|
6,926,375
|
6,807,388
|
|||||
TOTAL
LIABILITIES
|
52,417,165
|
55,161,922
|
|||||
SHAREHOLDERS'
EQUITY
|
|||||||
Common Stock
|
5,727,515
|
5,725,806
|
|||||
Additional Paid in Capital
|
5,217,955
|
5,130,574
|
|||||
Retained Earnings
|
106,595,582
|
107,012,038
|
|||||
Accumulated Other Comprehensive Loss
|
(1,350,091
|
)
|
(1,197,810
|
)
|
|||
TOTAL
SHAREHOLDERS' EQUITY
|
116,190,961
|
116,670,608
|
|||||
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY
|
$
|
168,608,126
|
$
|
171,832,530
|
|
(Unaudited)
Three
Months Ended
|
||||||
|
March
31,
2008
|
March
31,
2007
|
|||||
Income
|
|||||||
Real
Estate Operations:
|
|||||||
Real
Estate Sales
|
|||||||
Sales and Other Income
|
$
|
74,844
|
$
|
4,676,566
|
|||
Costs and Other Expenses
|
( 417,778
|
)
|
(3,767,016
|
)
|
|||
(342,934
|
) |
909,550
|
|||||
Income
Properties
|
|||||||
Leasing Revenues and Other Income
|
2,173,473
|
2,160,785
|
|||||
Costs and Other Expenses
|
(429,243
|
)
|
(425,216
|
)
|
|||
1,744,230
|
1,735,569
|
||||||
Golf
Operations
|
|||||||
Sales and Other Income
|
1,379,551
|
1,566,207
|
|||||
Costs and Other Expenses
|
(1,616,968
|
)
|
(1,857,213
|
)
|
|||
(237,417
|
)
|
(291,006
|
)
|
||||
Total Real Estate Operations
|
1,163,879
|
2,354,113
|
|||||
Profit
on Sales of Other
|
|||||||
Real Estate Interests
|
8,000
|
34,744
|
|||||
Interest
and Other Income
|
302,628
|
150,709
|
|||||
Operating
Income
|
1,474,507
|
2,539,566
|
|||||
General
and Administrative Expenses
|
(1,221,000
|
)
|
(3,484,705
|
)
|
|||
Income
(Loss) before Income Taxes
|
253,507 | (945,139 | ) | ||||
Income
Taxes
|
(97,383
|
) |
361,327
|
|
|||
Net
Income (Loss)
|
$
|
156,124
|
|
$
|
(583,812
|
) | |
Per
Share Information:
|
|||||||
Basic
and Diluted Income (Loss) Per Share
|
$ | 0.03 | $ | ($0.10 | ) | ||
Dividends
|
$
|
0.10
|
$
|
0.09
|
|
Common
|
|
|
Additional
Paid-
In
|
|
|
Retained
|
|
|
Accumulated
Other
Comprehensive
|
|
|
Total
Shareholders'
|
|
|
Comprehensive
|
|||
|
Stock
|
|
|
Capital
|
|
|
Earnings
|
|
|
Income
|
|
|
Equity
|
|
|
Income
|
|||
Balance,
December 31, 2007
|
$
|
5,725,806
|
$
|
5,130,574
|
$
|
107,012,038
|
$
|
(1,197,810
|
)
|
$
|
116,670,608
|
||||||||
Net
Income
|
156,124
|
|
156,124
|
|
$
|
156,124
|
|
||||||||||||
Other
Comprehensive Loss: Cash Flow
|
|||||||||||||||||||
Hedging Derivative, Net of Tax
|
(152,281
|
)
|
(152,281
|
)
|
(152,281
|
)
|
|||||||||||||
Comprehensive
Income
|
$
|
3,843
|
|
||||||||||||||||
Exercise
of Liability Classified Stock Options
|
1,709
|
87,381
|
89,090
|
||||||||||||||||
Cash
Dividends ($.10 per share)
|
(572,580
|
)
|
(572,580
|
)
|
|||||||||||||||
Balance,
March 31, 2008
|
$
|
5,727,515
|
$
|
5,217,955
|
$
|
106,595,582
|
$
|
(1,350,091
|
)
|
$
|
116,190,961
|
(Unaudited)
|
|||||||
Three
Months Ended
|
|||||||
|
March
31,
|
March
31,
|
|||||
2008
|
2007
|
||||||
Cash
Flow from Operating Activities
|
|||||||
Net Income
|
$
|
156,124
|
|
$
|
(583,812
|
) | |
Adjustments
to Reconcile Net Income to Net Cash
|
|||||||
Provided By (Used in) Operating Activities:
|
|||||||
Depreciation and Amortization
|
624,930
|
609,793
|
|||||
Deferred Income Taxes
|
(433,017
|
) |
307,229
|
||||
Non Cash Compensation
|
(182,068
|
) |
1,849,184
|
||||
(
Increase) Decrease in Assets:
|
|||||||
Notes Receivable | 460,728 | -- | |||||
Land and Development Costs
|
405,385
|
622,064
|
|
||||
Refundable Income Taxes
|
--
|
|
(1,011,626
|
) | |||
Other Assets
|
(341,145
|
) |
321,548
|
||||
Increase
(Decrease) in Liabilities:
|
|||||||
Accounts Payable
|
(183,889
|
) |
421,158
|
||||
Accrued Liabilities and Accrued Stock Based Compensation
|
(158,133
|
) |
219,803
|
|
|||
Deferred Profit
|
--
|
|
(135,839
|
)
|
|||
Income Taxes Payable
|
(1,974,918
|
) |
--
|
|
|||
Net Cash (Used In) Provided By Operating Activities
|
(1,626,003
|
) |
2,619,502
|
|
|||
Cash
Flow From Investing Activities:
|
|||||||
Acquisition of Property, Plant and Equipment
|
(3,103,681
|
)
|
(556,343
|
)
|
|||
Increase in Restricted Cash for Acquisitions
|
|||||||
Through the Like-Kind Exchange Process
|
876,570
|
|
(732,965
|
)
|
|||
Net (Increase) Decrease In Investment Securities
|
3,602,338
|
|
(505,908
|
) | |||
Net Cash (Used In) Provided By Investing Activities
|
1,375,227
|
|
(1,795,216
|
) | |||
Cash
Flow from Financing Activities:
|
|||||||
Proceeds from Notes Payable
|
3,170,000
|
--
|
|||||
Payments on Notes Payable
|
(3,051,013
|
)
|
(61,767
|
)
|
|||
Cash Proceeds from Exercise of Stock Options
|
5,090
|
13,747
|
|||||
Cash Used to Settle Stock Appreciation Rights
|
--
|
|
(173,023
|
)
|
|||
Dividends Paid
|
(572,580
|
)
|
(512,371
|
)
|
|||
Net Cash Used in Financing Activities
|
(448,503
|
)
|
(733,414
|
)
|
|||
Net (Decrease) Increase
in Cash
|
(699,279
|
) |
90,872
|
|
|||
Cash,
Beginning of Year
|
863,826
|
738,264
|
|||||
Cash,
End of Period
|
$
|
164,547
|
$
|
829,136
|
|
Three
Months Ended
|
||||||
|
MARCH
31,
|
MARCH
31,
|
|||||
2008
|
2007
|
||||||
Income
Available to Shareholders:
|
|||||||
Net Income (Loss)
|
$ |
156,124
|
|
$
|
(583,812
|
) | |
Weighted
Average Shares Outstanding
|
5,726,182
|
5,704,068
|
|||||
Common
Shares Applicable to Stock
|
|||||||
Options Using the Treasury Stock Method
|
--
|
--
|
|||||
Total
Shares Applicable to Diluted Earnings Per Share
|
5,726,182
|
5,704,068
|
|||||
Per
Share Information:
|
|||||||
Basic and Diluted Income Per Share
|
|||||||
Net Income (Loss)
|
$ |
0.03
|
|
$
|
(0.10
|
) | |
No impact was considered on the conversion of stock options during the periods as the effect would be antidilultive. |
|
March
31, 2008
|
||||||
|
Total
|
Due
Within
One
Year
|
|||||
$20,000,000
Line of Credit
|
$
|
187,000
|
$
|
187,000
|
|||
Notes
Payable
|
6,739,375
|
254,389
|
|||||
Total
|
$
|
6,926,375
|
$
|
441,389
|
2009
|
$
|
441,389
|
||
2010
|
297,714
|
|||
2011
|
320,349
|
|||
2012
|
344,703
|
|||
2013
& thereafter
|
5,522,220
|
|||
|
$
|
6,926,375
|
|
Shares
|
Wtd
Avg
Ex.
Price
|
Wtd.
Avg. Remaining
Contractual
Term
(Years)
|
|
Aggregate
Intrinsic
Value
|
||||||||
Outstanding
December 31, 2007
|
179,800
|
$
|
59.04
|
||||||||||
Granted
|
20,000
|
$
|
52.73
|
||||||||||
Exercised
|
(3,200
|
)
|
$
|
25.88
|
|||||||||
Expired
|
--
|
--
|
|||||||||||
Outstanding
March 31, 2008
|
196,600
|
$
|
58.94
|
7.75
|
$
|
1,328,004
|
|||||||
Exercisable
at March 31, 2008
|
61,600
|
$
|
52.02
|
7.00
|
$
|
722,272
|
|
Shares
|
Wtd.Avg.
Fair
Value
|
Wtd.
Avg.
Remaining
Contractual
Term
(Years)
|
|
Aggregate
Intrinsic
Value
|
||||||||
Outstanding
December 31, 2007
|
179,800
|
$
|
13.60
|
||||||||||
Granted
|
20,000
|
$
|
10.52
|
||||||||||
Exercised
|
(3,200
|
)
|
$
|
16.34
|
|||||||||
Expired
|
--
|
--
|
|||||||||||
Outstanding
March 31, 2008
|
196,600
|
$
|
8.40
|
7.75
|
$
|
715,079
|
|||||||
Exercisable
at March 31, 2008
|
61,600
|
$
|
9.89
|
7.00
|
$
|
388,916
|
Three
Months Ended
|
|||||||
March
31,
2008
|
March
31,
2007
|
||||||
|
|||||||
Service
Cost
|
$
|
84,092
|
$
|
72,716
|
|||
Interest
Cost
|
108,800
|
100,683
|
|||||
Expected
Return on Plan Assets
|
(130,116
|
)
|
(126,296
|
)
|
|||
Net
Amortization
|
19,879
|
12,497
|
|||||
Net
Periodic Benefit Cost
|
$
|
82,655
|
$
|
59,600
|
|
Three
Months Ended
|
||||||
|
March
31,
|
March
31,
|
|||||
2008
|
2007
|
||||||
Revenues:
|
|
||||||
Real Estate
|
$
|
75
|
$
|
4,677
|
|||
Income Properties
|
2,173
|
2,161
|
|||||
Golf
|
1,380
|
1,566
|
|||||
General, Corporate and Other
|
310
|
185
|
|||||
$
|
3,938
|
$
|
8,589
|
||||
Income
(Loss):
|
|||||||
Real Estate
|
$
|
(343
|
) |
$
|
909
|
||
Income Properties
|
1,744
|
1,736
|
|||||
Golf
|
(237
|
)
|
(291
|
)
|
|||
General, Corporate and Other
|
(910
|
)
|
(3,299
|
)
|
|||
$
|
254
|
|
$
|
(945
|
) | ||
Identifiable
Assets:
|
|
||||||
Real Estate
|
$
|
33,449
|
22,789
|
||||
Income Properties
|
107,109
|
106,240
|
|||||
Golf
|
8,254
|
8,631
|
|||||
General, Corporate and Other
|
19,796
|
17,458
|
|||||
$
|
168,608
|
$ |
155,118
|
||||
Depreciation
and Amortization:
|
|||||||
Real Estate
|
$
|
92
|
83
|
||||
Income Properties
|
380
|
381
|
|||||
Golf
|
125
|
120
|
|||||
General, Corporate and Other
|
28
|
26
|
|||||
$
|
625
|
$ |
610
|
||||
Capital
Expenditures:
|
|||||||
Real Estate
|
$
|
938
|
$ |
442
|
|||
Income Properties
|
2,059
|
--
|
|||||
Golf
|
6
|
29
|
|||||
General, Corporate and Other
|
101
|
85
|
|||||
$
|
3,104
|
$ |
556
|
|
Three
Months Ended
|
||||||
March
31,
|
March
31,
|
||||||
2008
|
2007
|
||||||
Net
Income
|
$
|
156,124
|
|
$
|
(583,812
|
) | |
Add
Back:
|
|||||||
Depreciation
and Amortization
|
624,930
|
609,793
|
|||||
Deferred
Taxes
|
(433,017
|
) |
307,229
|
||||
Earnings
before Depreciation,
|
|||||||
Amortization
and Deferred Taxes
|
$
|
348,037
|
$
|
333,210
|
Date:
May 8, 2008
|
By:/s/William H.
McMunn
William
H. McMunn
President
and CEO
|
Date:
May 8, 2008
|
By:/s/ Bruce W.
Teeters
Bruce
W. Teeters,
Senior
VP Finance &
Treasurer
|
1.
|
I
have reviewed this Form 10-Q of Consolidated-Tomoka Land Co.;
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
|
3.
|
Based on my knowledge, the financial statements, and
other financial information included in this report, fairly present in all
material
respects the financial condition, results of operations and cash flows of
the registrant as of, and for, the periods presented in this report;
|
4.
|
The
registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control
over financial reporting (as defined in Exchange Act Rules 13a-15(f) and
15d-15(f) for the Registrant and
have:
|
(a) |
Designed
such disclosure controls and procedures, or caused such disclosure
controls and
procedures to be designed under our supervision, to ensure that material
information
relating to the registrant, including its consolidated subsidiaries,
is
made known to us by others within those entities, particularly during the
period
in
which this report is being prepared;
|
(b) |
Designed
such internal control over financial reporting, or caused such internal
control
over financial reporting to be designed under our supervision, to provide
reasonable
assurance regarding the reliability of financial reporting and the
preparation
of financial statements for external purposes in accordance with
generally
accepted accounting principles;
|
(c) |
Evaluated
the effectiveness of the registrant's disclosure controls and procedures
and
presented in this report our conclusions about the effectiveness of the
disclosure
controls and procedures, as of the end of the period covered by this
report
based on such evaluation; and
|
(d) |
Disclosed
in this report any change in the registrant's internal control over
financial
reporting that occurred during the registrant's most recent fiscal quarter
that
has materially affected, or is reasonably likely to materially
affect,
the registrant's internal
control over financial reporting; and
|
5.
|
The
registrant's other certifying officer and I have disclosed, based on our
most recent evaluation of internal control over financial reporting, to
the registrant's auditors and the audit committee of the registrant's
board of directors:
|
(a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information; and
|
(b) |
Any fraud, whether or not material, that involves management or other
employees who
have a significant role in the registrant's internal control over
financial reporting.
|
1. |
I
have reviewed this Form 10-Q of Consolidated-Tomoka Land Co.;
|
2.
|
Based
on my knowledge, this report does not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the
period covered by this report;
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3.
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Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the
registrant as of, and for, the periods presented in this
report;
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4.
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The
registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e) and internal control
over financial reporting (as defined in Exchange Act Rules 13a-15(f) and
15d-15(f) for the Registrant and
have:
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(a) |
Designed
such disclosure controls and procedures, or caused such disclosure
controls and
procedures to be designed under our supervision, to ensure that
material
information
relating to the registrant, including its consolidated subsidiaries,
is
made known to us by others within those entities, particularly during the
period
in
which this report is being prepared;
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(b) |
Designed
such internal control over financial reporting, or caused such internal
control
over financial reporting to be designed under our supervision, to
provide
reasonable
assurance regarding the reliability of financial reporting and the
preparation
of financial statements for external purposes in accordance with
generally
accepted accounting principles;
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(c ) |
Evaluated the effectiveness of the registrant's
disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of
the
disclosure
controls and procedures, as of the end of the period covered by
this report
based on such evaluation; and
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(d) |
Disclosed
in this report any change in the registrant's internal control over
financial
reporting that occurred during the registrant's most recent fiscal
quarter
that
has materially affected, or is reasonably likely to materially affect, the
registrant's
internal control over financial reporting; and
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5.
|
The
registrant's other certifying officer and I have disclosed, based on our
most recent evaluation of
internal control over financial reporting,
to
the registrant's auditors and the audit committee of the registrant's
board of directors:
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(a) |
All
significant deficiencies and material weaknesses in the design or
operation of internal
control over financial reporting which are reasonably likely to
adversely
affect
the registrant's ability to record, process, summarize and report
financial information;
and
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(b) |
Any
fraud, whether or not material, that involves management or other
employees who have
a significant role in the registrant's internal control over
financial
reporting.
|
(1) |
The
Report fully complies with the requirements of Section 13(a) or
15(d)
of the Securities Exchange Act of 1934;
and
|
(2) |
The
information contained in the Report fairly presents, in all material
respects, the financial condition and results of
operations
of the Company.
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