Florida
(State
or other jurisdiction of incorporation or organization)
|
59-0483700
(IRS
Employer Identification No.)
|
|||
1530
Cornerstone Boulevard, Suite 100
Daytona
Beach, Florida
(Address
of principal executive offices)
|
32117
(Zip
Code)
|
|||
(386)
274-2202
(Registrant’s
telephone number, including area code)
|
||||
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.
|
Item
1. Financial Statements
|
|
June 30, 2008 (Unaudited) and December 31, 2007
|
3
|
Three Months and Six-Months ended June 30, 2008 and 2007
|
|
(Unaudited)
|
4
|
|
|
Comprehensive Income -
|
|
Six Months Ended June 30, 2008
|
|
(Unaudited)
|
5
|
Six
Months Ended June 30, 2008 and 2007
|
|
(Unaudited)
|
6
|
7-10
|
|
11-15
|
|
15
|
|
15
|
|
16
|
|
16
|
|
16 | |
16
|
|
Exhibit
3.1
Exhibit 3.2
|
|
17
|
JUNE
30,
|
|
|
DECEMBER
31,
|
|
|||
|
|
|
2008
|
|
|
2007
|
|
ASSETS
|
|||||||
Cash
|
$
|
533,569
|
$
|
863,826
|
|||
Restricted Cash
|
--
|
10,387,550
|
|||||
Investment Securities
|
6,447,664
|
10,193,094
|
|||||
Notes Receivable
|
4,203,693
|
5,164,421
|
|||||
Land and Development Costs
|
16,208,954
|
15,654,456
|
|||||
Intangible Assets, Net
|
5,220,405
|
4,717,699
|
|||||
Other Assets
|
7,750,483
|
7,899,810
|
|||||
40,364,768
|
54,880,856
|
||||||
Property,
Plant, and Equipment:
|
|||||||
Land, Timber and Subsurface Interests
|
9,479,729
|
7,793,594
|
|||||
Golf Buildings, Improvements, and Equipment
|
11,736,143
|
11,713,046
|
|||||
Income Properties Land, Buildings, and Improvements
|
113,830,870
|
104,820,647
|
|||||
Other Building, Equipment, and Land Improvements
|
3,215,209
|
2,909,057
|
|||||
Construction in Process | 2,393,767 | -- | |||||
Total Property, Plant, and Equipment
|
140,655,718
|
127,236,344
|
|||||
Less, Accumulated Depreciation and Amortization
|
(11,356,762
|
)
|
(10,284,670
|
)
|
|||
Net - Property, Plant, and Equipment
|
129,298,956
|
116,951,674
|
|||||
TOTAL ASSETS
|
$
|
169,663,724
|
$
|
171,832,530
|
|||
LIABILITIES
|
|||||||
Accounts Payable
|
$
|
524,057
|
$
|
452,090
|
|||
Accrued Liabilities
|
8,773,701
|
8,684,175
|
|||||
Accrued Stock Based Compensation
|
1,614,762
|
3,277,821
|
|||||
Income Taxes Payable
|
422,232
|
3,058,049
|
|||||
Deferred Income Taxes
|
33,697,998
|
32,882,399
|
|||||
Notes Payable
|
6,671,682
|
6,807,388
|
|||||
TOTAL LIABILITIES
|
51,704,432
|
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
|
108,194,023
|
107,012,038
|
|||||
Accumulated Other Comprehensive Loss
|
(1,180,201
|
)
|
(1,197,810
|
)
|
|||
TOTAL SHAREHOLDERS' EQUITY
|
117,959,292
|
116,670,608
|
|||||
TOTAL LIABILITIES AND
|
|||||||
SHAREHOLDERS' EQUITY
|
$
|
169,663,724
|
$
|
171,832,530
|
(Unaudited)
|
(Unaudited)
|
|||||||||||||||
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
June
30,
|
June
30,
|
|||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Income
|
|
|
|
|
||||||||||||
Real
Estate Operations:
|
||||||||||||||||
Real
Estate Sales
|
||||||||||||||||
Sales
and Other Income
|
$ |
2,186,210
|
$ |
1,189,294
|
$ |
2,261,054
|
$ |
5,865,860
|
||||||||
Costs
and Other Expenses
|
(469,075 | ) | (439,160 | ) | (886,853 | ) | (4,206,176 | ) | ||||||||
1,717,135
|
750,134
|
1,374,201
|
1,659,684
|
|||||||||||||
Income
Properties
|
||||||||||||||||
Leasing
Revenues and Other Income
|
2,320,993
|
2,169,889
|
4,494,466
|
4,330,674
|
||||||||||||
Costs
and Other Expenses
|
(464,693 | ) | (427,866 | ) | (893,936 | ) | (853,082 | ) | ||||||||
1,856,300
|
1,742,023
|
3,600,530
|
3,477,592
|
|||||||||||||
Golf
Operations
|
||||||||||||||||
Sales
and Other Income
|
1,288,152
|
1,410,975
|
2,667,703
|
2,977,182
|
||||||||||||
Costs
and Other Expenses
|
(1,768,806 | ) | (1,801,926 | ) | (3,385,774 | ) | (3,659,139 | ) | ||||||||
(480,654 | ) | (390,951 | ) | (718,071 | ) |
(681,957
|
) | |||||||||
Total
Real Estate Operations
|
3,092,781
|
2,101,206
|
4,256,660
|
4,455,319
|
||||||||||||
Profit
on Sales of Other
|
||||||||||||||||
Real
Estate Interests
|
196,257
|
550,000
|
204,257
|
584,744
|
||||||||||||
Interest
and Other Income
|
142,122
|
150,084
|
444,750
|
300,793
|
||||||||||||
Operating
Income
|
3,431,160
|
2,801,290
|
4,905,667
|
5,340,856
|
||||||||||||
General
and Administrative Expenses
|
76,058 | (996,286 | ) | (1,144,942 | ) | (4,480,991 | ) | |||||||||
Income
Before Income Taxes
|
3,507,218 | 1,805,004 | 3,760,725 | 859,865 | ||||||||||||
Income
Taxes
|
(1,336,026
|
) |
(689,064
|
) |
(1,433,409
|
) |
(327,737
|
) | ||||||||
Net
Income
|
$ |
2,171,192
|
$ |
1,115,940
|
$ |
2,327,316
|
$ |
532,128
|
||||||||
Per
Share Information:
|
||||||||||||||||
Basic
and Diluted Income Per Share
|
$ | 0.38 | $ | 0.20 | $ | 0.41 | $ | 0.09 | ||||||||
Dividends
|
$ |
0.10
|
$ |
0.09
|
$ |
0.20
|
$ |
0.18
|
|
Common
Stock
|
|
|
Additional
Paid-
In Capital
|
|
|
Retained
Earnings
|
|
|
Accumulated
Other
Comprehensive Income
|
|
|
Total
Shareholders' Equity
|
|
|
Comprehensive
Income
|
|||
Balance,
December 31, 2007
|
$
|
5,725,806
|
$
|
5,130,574
|
$
|
107,012,038
|
$
|
(1,197,810
|
)
|
$
|
116,670,608
|
||||||||
Net
Income
|
2,327,316
|
|
2,327,316
|
|
$
|
2,327,316
|
|
||||||||||||
Other
Comprehensive Income: Cash Flow
|
|||||||||||||||||||
Hedging Derivative, Net of Tax
|
17,609
|
|
17,609
|
|
17,609
|
|
|||||||||||||
Comprehensive
Income
|
$
|
2,344,925
|
|
||||||||||||||||
Exercise
of Liability Classified Stock
Options
|
1,709
|
87,381
|
89,090
|
||||||||||||||||
Cash
Dividends ($.20 per share)
|
(1,145,331
|
)
|
(1,145,331
|
)
|
|||||||||||||||
Balance,
June 30, 2008
|
$
|
5,727,515
|
$
|
5,217,955
|
$
|
108,194,023
|
$
|
(1,180,201
|
)
|
$
|
117,959,292
|
(Unaudited)
Six
Months Ended
|
|||||||
|
June
30,
|
June
30,
|
|||||
2008
|
2007
|
||||||
Cash
Flow from Operating Activities
|
|||||||
Net Income
|
$
|
2,327,316
|
|
$
|
532,128
|
||
Adjustments
to Reconcile Net Income to Net Cash
|
|||||||
Provided By Operating Activities:
|
|||||||
Depreciation and Amortization
|
1,289,761
|
1,231,250
|
|||||
Loss on Sale of Property, Plant, and Equipment | 11,743 | 110,608 | |||||
Deferred Income Taxes
|
815,599
|
190,537
|
|||||
Non-Cash Compensation
|
(1,542,744
|
) |
1,725,103
|
||||
Decrease
(Increase) in Assets:
|
|||||||
Notes Receivable | 960,728 | -- | |||||
Land and Development Costs
|
(554,498
|
) |
620,870
|
|
|||
Refundable Income Taxes
|
--
|
|
(282,717
|
) | |||
Other Assets
|
149,327
|
(891,352
|
) | ||||
Increase
(Decrease) in Liabilities:
|
|||||||
Accounts Payable
|
71,967
|
81,653
|
|||||
Accrued Liabilities and Accrued Stock Based Compensation
|
107,135
|
606,977
|
|
||||
Deferred Profit
|
--
|
|
(563,467
|
)
|
|||
Income Taxes Payable
|
(2,635,817
|
) |
--
|
|
|||
Net Cash Provided By Operating Activities
|
1,000,517
|
3,361,590
|
|
||||
Cash
Flow From Investing Activities:
|
|||||||
Acquisition of Property, Plant, and Equipment
|
(13,447,007
|
)
|
(2,942,376
|
)
|
|||
Acquisition of Intangible Assets | (704,485 | ) | -- | ||||
Decrease (Increase) in Restricted Cash for Acquisitions
|
|||||||
Through the Like-Kind Exchange Process
|
10,387,550
|
|
(124,598
|
)
|
|||
Decrease In Investment Securities
|
3,745,430
|
|
2,531,245
|
||||
Net Cash Used in Investing Activities
|
(18,512
|
)
|
(535,729
|
) | |||
Cash
Flow from Financing Activities:
|
|||||||
Proceeds from Notes Payable
|
4,898,000
|
1,776,000
|
|||||
Payments on Notes Payable
|
(5,033,706
|
)
|
(1,900,677
|
)
|
|||
Cash Proceeds from Exercise of Stock Options
|
5,090
|
13,747
|
|||||
Cash Used to Settle Stock Appreciation Rights
|
(36,315
|
)
|
(933,352
|
)
|
|||
Dividends Paid
|
(1,145,331
|
)
|
(1,026,800
|
)
|
|||
Net Cash Used in Financing Activities
|
(1,312,262
|
)
|
(2,071,082
|
)
|
|||
Net
(Decrease) Increase in Cash
|
(330,257
|
) |
754,779
|
|
|||
Cash,
Beginning of Year
|
863,826
|
738,264
|
|||||
Cash,
End of Period
|
$
|
533,569
|
$
|
1,493,043
|
Three Months Ended Six Months Ended | ||||||||||||||||
June
30,
|
June
30,
|
June
30,
|
June
30,
|
|||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Income
Available to Common Shareholders:
|
||||||||||||||||
Net
Income
|
$ |
2,171,192
|
$ |
1,115,940
|
$ |
2,327,316
|
$ |
532,128
|
||||||||
Weighted
Average Shares Outstanding
|
5,726,848
|
5,715,885
|
5,726,848
|
5,710,009
|
||||||||||||
Common
Shares Applicable to Stock
|
|
|||||||||||||||
Options
Using the Treasury Stock Method
|
--
|
--
|
--
|
20,207
|
||||||||||||
Total
Shares Applicable to Diluted Earnings Per Share
|
$ |
5,726,848
|
$ |
5,715,885
|
$ |
5,726,848
|
$ |
5,730,216
|
||||||||
Per
Share Information:
|
||||||||||||||||
Basic
and Diluted Income Per Share
|
||||||||||||||||
Net
Income
|
$ |
0.38
|
$ |
0.20
|
$ |
0.41
|
$ |
0.09
|
||||||||
|
June
30, 2008
|
||||||
|
Total
|
Due
Within
One
Year
|
|||||
$20,000,000
Line of Credit
|
$
|
--
|
$
|
--
|
|||
Notes
Payable
|
6,671,682
|
259,092
|
|||||
Total
|
$
|
6,671,682
|
$
|
259,092
|
2009
|
$
|
259,092
|
||
2010
|
303,218
|
|||
2011
|
326,271
|
|||
2012
|
5,783,101
|
|||
2013
& thereafter
|
--
|
|||
|
$
|
6,671,682
|
|
Shares
|
Wtd
Avg
Ex.
Price
|
Wtd.
Avg. Remaining
Contractual
Term
(Years)
|
|
Aggregate
Intrinsic
Value
|
||||||||
Outstanding
December 31, 2007
|
179,800
|
$
|
59.04
|
||||||||||
Granted
|
63,000
|
$
|
54.45
|
||||||||||
Exercised
|
(3,200
|
)
|
$
|
25.88
|
|||||||||
Expired
|
--
|
--
|
|||||||||||
Outstanding
June 30, 2008
|
239,600
|
$
|
58.27
|
7.91
|
$
|
410,248
|
|||||||
Exercisable
at June 30, 2008
|
61,600
|
$
|
52.02
|
6.75
|
$
|
306,048
|
|
Shares
|
Wtd.Avg.
Fair
Value
|
Wtd.
Avg.
Remaining
Contractual
Term
(Years)
|
|
Aggregate
Intrinsic
Value
|
||||||||
Outstanding
December 31, 2007
|
179,800
|
$
|
13.60
|
||||||||||
Granted
|
63,000
|
$
|
5.61
|
||||||||||
Exercised
|
(3,200
|
)
|
$
|
10.52
|
|||||||||
Expired
|
--
|
--
|
|||||||||||
Outstanding
June 30, 2008
|
239,600
|
$
|
4.50
|
7.91
|
$
|
220,903
|
|||||||
Exercisable
at June 30, 2008
|
61,600
|
$
|
5.18
|
6.75
|
$
|
164,795
|
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
June
30,
|
June
30,
|
|||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Service
Cost
|
$ |
84,092
|
$ |
72,716
|
$ |
168,184
|
$ |
145,432
|
||||||||
Interest
Cost
|
108,800
|
100,683
|
217,600
|
201,366
|
||||||||||||
Expected
Return on Plan Assets
|
(130,116 | ) | (126,296 | ) | (260,232 | ) | (252,592 | ) | ||||||||
Net
Amortization
|
19,879
|
12,497
|
39,758
|
24,994
|
||||||||||||
Net
Periodic Benefit Cost
|
$ |
82,655
|
$ |
59,600
|
$ |
165,310
|
$ |
119,200
|
||||||||
It
is anticipated that contributions in 2008 will approximate $600,000 to
$700,000
|
NOTE 6. BUSINESS
SEGMENT DATA (continued)
|
||||||||||||||||
Three
Months Ended
|
Six
Months Ended
|
|||||||||||||||
June
30,
|
June
30,
|
June
30,
|
June
30,
|
|||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Revenues:
|
||||||||||||||||
Real
Estate
|
$ |
2,186
|
$ |
1,189
|
$ |
2,261
|
$ |
5,866
|
||||||||
Income
Properties
|
2,321
|
2,170
|
4,494
|
4,331
|
||||||||||||
Golf
|
1,288
|
1,411
|
2,668
|
2,977
|
||||||||||||
General,
Corporate & Other
|
339
|
700
|
649
|
885
|
||||||||||||
$ |
6,134
|
$ |
5,470
|
$ |
10,072
|
$ |
14,059
|
|||||||||
Income
(Loss):
|
||||||||||||||||
Real
Estate
|
$ |
1,717
|
$ |
750
|
$ |
1,374
|
$ |
1,660
|
||||||||
Income
Properties
|
1,856
|
1,742
|
3,601
|
3,478
|
||||||||||||
Golf
|
(481 | ) | (391 | ) | (718 | ) | (682 | ) | ||||||||
General,
Corporate & Other
|
415 | (296 | ) | (496 | ) | (3,596 | ) | |||||||||
$ |
3,507
|
$ |
1,805
|
$ |
3,761
|
$ |
860
|
|||||||||
June
30,
|
||||||||||||||||
2008
|
||||||||||||||||
Identifiable
Assets
|
$ | |||||||||||||||
Real
Estate
|
34,622
|
|||||||||||||||
Income
Properties
|
116,552
|
|||||||||||||||
Golf
|
8,080
|
|||||||||||||||
General, Corporate & Other
|
10,410
|
|||||||||||||||
$ |
169,664
|
|||||||||||||||
Depreciation
and Amortization
|
||||||||||||||||
Real
Estate
|
$ |
192
|
||||||||||||||
Income
Properties
|
791
|
|||||||||||||||
Golf
|
250
|
|||||||||||||||
General, Corporate & Other
|
57
|
|||||||||||||||
$ |
1,290
|
|||||||||||||||
Capital
Expenditures
|
||||||||||||||||
Real
Estate
|
$ |
1,937
|
||||||||||||||
Income
Properties
|
11,405
|
|||||||||||||||
Golf
|
22
|
|||||||||||||||
General, Corporate & Other
|
83
|
|||||||||||||||
$ |
13,447
|
|||||||||||||||
Income represents income (loss) from continuing operations before income taxes. | ||||||||||||||||
Identifiable
assets by segment are those assets that are used in the Company's
operations in each segment.
|
||||||||||||||||
General
corporate
assets and assets used in the Company's other operations consist primarily
of cash,
|
||||||||||||||||
investment securities, and property, plant, and equipment.
|
Three
Months Ended
|
||||||||
June
30,
|
June
30,
|
|||||||
2008
|
2007
|
|||||||
Net
Income
|
$ |
2,171,192
|
$ |
1,115,940
|
||||
Add
Back:
|
||||||||
Depreciation
and Amortization
|
664,831
|
621,457
|
||||||
Deferred
Taxes
|
1,248,616 |
(116,692
|
) | |||||
Earnings
before Depreciation,
|
||||||||
Amortization
and Deferred Taxes
|
$ |
4,084,639
|
$ |
1,620,705
|
Six
Months Ended
|
||||||||
June
30,
|
June
30,
|
|||||||
2008
|
2007
|
|||||||
Net
Income
|
$ |
2,327,316
|
$ |
532,128
|
||||
Add
Back:
|
||||||||
Depreciation
and Amortization
|
1,289,761
|
1,231,250
|
||||||
Deferred
Taxes
|
815,599
|
190,537
|
||||||
Earnings
before Depreciation,
|
||||||||
Amortization
and Deferred Taxes
|
$ |
4,432,676
|
$ |
1,953,915
|
Pursuant to the
requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its
behalf by
the undersigned
thereunto
duly authorized.
|
CONSOLIDATED-TOMOKA
LAND CO.
(Registrant)
|
Date
August 11, 2008 By: /s/ William H.
McMunn
William H.
McMunn
President and
Chief Executive Officer
|
Date
August 11, 2008 By: /s/ Bruce W.
Teeters
Bruce W. Teeters
Senior Vice
President-Finance and
Treasurer
|