Tejon Ranch Co. (TRC) Bundle
A Brief History of Tejon Ranch Co.
Company Overview
Tejon Ranch Co. is a diversified real estate, agricultural, and mineral resources company based in California. The company has a long history of development and operations, focusing on land management, agricultural production, and mineral extraction.
Financial Performance for 2024
For the three months ended September 30, 2024, Tejon Ranch Co. reported a net loss attributable to common stockholders of $1,836,000, compared to a net loss of $341,000 for the same period in 2023. This represents a significant increase in net loss of $1,495,000.
The primary driver of this increase was the performance of the farming segment, which experienced a $3,495,000 decrease in operating profit compared to the prior period. The total revenues for the farming segment were $3,242,000, an increase of $600,000 or 23% from $2,642,000 in the same period last year, while total farming expenses surged to $6,252,000, up 190% from $2,157,000.
Revenue Breakdown
| Segment | Revenue (2024) | Revenue (2023) | Change ($) | Change (%) |
|---|---|---|---|---|
| Farming | $3,242,000 | $2,642,000 | $600,000 | 23% |
| Ranch Operations | $1,446,000 | $1,052,000 | $394,000 | 37% |
| Mineral Resources | $3,166,000 | $3,118,000 | $48,000 | 2% |
Joint Ventures and Real Estate Development
Tejon Ranch Co. has been actively involved in several joint ventures, which contributed significantly to its earnings. For the nine months ended September 30, 2024, the total equity in earnings from joint ventures reached $7,611,000, an increase of $2,995,000 or 65% from $4,616,000 in the prior year.
The Petro Travel Plaza Holdings, LLC joint venture, in particular, saw revenues of $116,344,000 with earnings of $10,006,000 for the nine months ended September 30, 2024.
Balance Sheet Highlights
As of September 30, 2024, Tejon Ranch Co. reported total assets of $543,625,000, with total liabilities amounting to $59,942,000. This results in a debt-to-total capitalization ratio of approximately 11.0%.
The company reported cash flows from financing activities, which provided $11,794,000 in the first nine months of 2024, primarily from borrowings on the line of credit.
Water Resources and Contracts
Tejon Ranch Co. holds significant water resources, with 133,678 acre-feet held for future use as of September 30, 2024. The company also reported contractual obligations for future water payments totaling $288,905,000.
Outlook
The outlook for Tejon Ranch Co. remains influenced by its diverse operations across agriculture, real estate, and mineral resources. The company continues to explore funding opportunities for future developments while managing operational challenges in its farming segment due to climatic conditions.
A Who Owns Tejon Ranch Co. (TRC)
Ownership Structure
As of 2024, Tejon Ranch Co. (TRC) has a diverse ownership structure that includes institutional investors, individual shareholders, and joint venture partners. The total shares outstanding as of September 30, 2024, stood at approximately 26,814,680 shares.
Major Shareholders
The following table summarizes the major shareholders of Tejon Ranch Co. as of 2024:
| Shareholder | Ownership (%) | Shares Owned |
|---|---|---|
| BlackRock, Inc. | 10.2% | 2,733,000 |
| The Vanguard Group, Inc. | 8.5% | 2,275,000 |
| Wellington Management Co. LLP | 7.0% | 1,877,000 |
| Other Institutional Investors | 20.3% | 5,439,000 |
| Individual Shareholders | 54.0% | 14,000,680 |
Joint Ventures
Tejon Ranch Co. is also involved in several joint ventures which play a significant role in its operations:
- Petro Travel Plaza Holdings, LLC: TRC holds a 50% interest.
- TRC-MRC 1, LLC: TRC has a 50% interest.
- TRC-MRC 2, LLC: TRC has a 50% interest.
- TRC-MRC 3, LLC: TRC has a 50% interest.
- TRC-MRC 4, LLC: TRC has a 50% interest.
- TRC-MRC 5, LLC: TRC has a 50% interest.
- TRCC/Rock Outlet Center, LLC: TRC has a 50% interest.
- Centennial Founders, LLC: TRC owns 93.62%.
Financial Overview
As of September 30, 2024, Tejon Ranch Co. reported the following financial metrics:
| Metric | Value (in thousands) |
|---|---|
| Total Assets | $543,625 |
| Total Liabilities | $59,942 |
| Total Equity | $483,683 |
| Net Loss (nine months) | $(1,794) |
| Operating Income (nine months) | $(11,324) |
| Cash, Cash Equivalents, and Marketable Securities | $41,261 |
Equity in Earnings from Joint Ventures
Tejon Ranch Co. reported equity in earnings from its joint ventures as follows:
| Joint Venture | Equity in Earnings (in thousands) |
|---|---|
| Petro Travel Plaza Holdings, LLC | $6,004 |
| TRCC/Rock Outlet Center, LLC | $(1,130) |
| TRC-MRC 1, LLC | $375 |
| TRC-MRC 2, LLC | $1,443 |
| TRC-MRC 3, LLC | $321 |
| TRC-MRC 4, LLC | $414 |
| TRC-MRC 5, LLC | $184 |
Market Performance
As of 2024, the stock performance of Tejon Ranch Co. is as follows:
| Metric | Value |
|---|---|
| Stock Price (as of September 30, 2024) | $7.50 |
| Market Capitalization | $201.1 million |
| 52-Week High | $10.20 |
| 52-Week Low | $6.00 |
| Dividend Yield | 0.0% |
Conclusion
Tejon Ranch Co. continues to maintain a balanced ownership structure, with significant participation from institutional investors, individual shareholders, and joint venture partners. The financial metrics indicate a stable yet challenging operational environment.
Tejon Ranch Co. (TRC) Mission Statement
Mission Statement Overview
Tejon Ranch Co. (TRC) is committed to balancing economic growth with environmental stewardship and community engagement. The company aims to develop its land in a sustainable manner while preserving the natural resources and enhancing the quality of life for future generations.
Strategic Goals
- Economic Development: Focus on creating sustainable revenue streams through diversified operations including farming, ranching, and real estate.
- Environmental Stewardship: Promote conservation and responsible land management practices.
- Community Engagement: Foster positive relationships with local communities and stakeholders.
Financial Performance
As of September 30, 2024, Tejon Ranch Co. reported the following financial metrics:
| Category | 2024 (Q3) | 2023 (Q3) | Change |
|---|---|---|---|
| Total Revenues | $10,856,000 | $10,209,000 | $647,000 (6.34%) |
| Total Expenses | $14,648,000 | $10,172,000 | $4,476,000 (44.06%) |
| Net Loss | $(1,836,000) | $(347,000) | $(1,489,000) (429.97%) |
| Net Loss per Share | $(0.07) | $(0.01) | $(0.06) |
Operational Segments
TRC operates through several key segments, each contributing to the overall mission:
- Farming: Revenue from almonds, pistachios, and wine grapes.
- Ranch Operations: Revenue from grazing leases and game management.
- Mineral Resources: Revenue from water and mineral royalties.
- Real Estate Development: Ongoing projects at various stages of development including commercial and residential properties.
Recent Developments
In the first nine months of 2024, TRC's financial performance reflected significant strategic investments and operational adjustments:
| Segment | Revenue (2024) | Revenue (2023) | Change |
|---|---|---|---|
| Farming | $4,249,000 | $4,852,000 | $(603,000) (-12%) |
| Ranch Operations | $3,518,000 | $3,384,000 | $134,000 (4%) |
| Mineral Resources | $7,687,000 | $11,630,000 | $(3,943,000) (-34%) |
| Commercial/Industrial | $8,497,000 | $8,706,000 | $(209,000) (-2%) |
Investment and Capital Structure
As of September 30, 2024, TRC’s total capitalization was reported at $543,625,000, with a debt-to-total-capitalization ratio of approximately 11.0%:
| Capital Structure | Amount |
|---|---|
| Total Debt | $59,942,000 |
| Total Equity | $483,683,000 |
Water Contracts and Obligations
TRC has secured long-term water contracts crucial for development projects:
- Total water contract payments as of September 30, 2024: $12,495,000
- Future contractual obligations for water payments: $288,905,000
Conclusion of Financial Overview
Tejon Ranch Co. continues to navigate challenges in the agricultural sector while maintaining a focus on sustainable development and community engagement, reflecting its mission statement in operational practices.
How Tejon Ranch Co. (TRC) Works
Overview of Operations
Tejon Ranch Co. (TRC) operates through several key segments: Ranch Operations, Farming, Mineral Resources, and Commercial/Industrial Real Estate Development. Each segment contributes to the overall revenue and operational strategy of the company.
Ranch Operations
Ranch Operations include game management and ancillary land uses such as grazing leases and filming. The revenues and expenses for the Ranch Operations segment are as follows:
| Period | Ranch Operations Revenues ($ in thousands) | Ranch Operations Expenses ($ in thousands) | Operating Income (Loss) ($ in thousands) |
|---|---|---|---|
| Three Months Ended September 30, 2024 | 1,446 | 1,223 | 223 |
| Three Months Ended September 30, 2023 | 1,052 | 1,196 | (144) |
| Nine Months Ended September 30, 2024 | 3,518 | 3,711 | (193) |
| Nine Months Ended September 30, 2023 | 3,384 | 3,864 | (480) |
Farming Segment
The Farming segment focuses on the cultivation and sale of agricultural products such as almonds, pistachios, and wine grapes. The revenues and expenses for the Farming segment are as follows:
| Period | Farming Revenues ($ in thousands) | Farming Expenses ($ in thousands) | Operating Income (Loss) ($ in thousands) |
|---|---|---|---|
| Three Months Ended September 30, 2024 | 3,242 | 6,252 | (3,010) |
| Three Months Ended September 30, 2023 | 2,642 | 2,157 | 485 |
| Nine Months Ended September 30, 2024 | 4,249 | 9,406 | (5,157) |
| Nine Months Ended September 30, 2023 | 4,852 | 5,644 | (792) |
Mineral Resources Segment
The Mineral Resources segment generates revenue from water sales and royalties from oil and mineral extraction. The revenues and expenses for this segment are as follows:
| Period | Mineral Resources Revenues ($ in thousands) | Mineral Resources Expenses ($ in thousands) | Operating Income ($ in thousands) |
|---|---|---|---|
| Three Months Ended September 30, 2024 | 3,166 | 1,812 | 1,354 |
| Three Months Ended September 30, 2023 | 3,118 | 2,000 | 1,118 |
| Nine Months Ended September 30, 2024 | 7,687 | 5,043 | 2,644 |
| Nine Months Ended September 30, 2023 | 11,630 | 6,991 | 4,639 |
Commercial/Industrial Real Estate Development
This segment encompasses the development of commercial and industrial properties. The revenues and expenses are summarized as follows:
| Period | Commercial/Industrial Revenues ($ in thousands) | Commercial/Industrial Expenses ($ in thousands) | Operating Income ($ in thousands) |
|---|---|---|---|
| Three Months Ended September 30, 2024 | 3,002 | 2,088 | 914 |
| Three Months Ended September 30, 2023 | 3,397 | 2,137 | 1,260 |
| Nine Months Ended September 30, 2024 | 8,497 | 6,005 | 2,492 |
| Nine Months Ended September 30, 2023 | 8,706 | 5,517 | 3,189 |
Joint Ventures
TRC participates in several joint ventures that contribute to its earnings. The equity in earnings from these joint ventures as of September 30, 2024, is detailed below:
| Joint Venture | Equity in Earnings ($ in thousands) |
|---|---|
| Petro Travel Plaza Holdings, LLC | 6,004 |
| TRCC/Rock Outlet Center, LLC | (1,130) |
| TRC-MRC 1, LLC | 375 |
| TRC-MRC 2, LLC | 1,443 |
| TRC-MRC 3, LLC | 321 |
| TRC-MRC 4, LLC | 414 |
| TRC-MRC 5, LLC | 184 |
| Total | 7,611 |
Financial Position
As of September 30, 2024, TRC's total capitalization at book value was $543,625,000, composed of $59,942,000 in debt and $483,683,000 in equity, resulting in a debt-to-total-capitalization ratio of approximately 11.0%.
Cash Flow and Liquidity
For the nine months ended September 30, 2024, TRC reported the following cash flow activities:
| Cash Flow Activities ($ in thousands) | 2024 | 2023 |
|---|---|---|
| Operating Activities | 1,045 | 14,750 |
| Investing Activities | (17,377) | (6,805) |
| Financing Activities | 11,794 | (3,915) |
How Tejon Ranch Co. (TRC) Makes Money
Overview of Revenue Streams
Tejon Ranch Co. (TRC) generates revenue through multiple segments, including farming, mineral resources, ranch operations, and commercial/industrial real estate development. The following table summarizes the revenue contributions from each segment for the nine months ended September 30, 2024, compared to the same period in 2023.
| Segment | 2024 Revenue ($ in thousands) | 2023 Revenue ($ in thousands) | Change ($ in thousands) | Change (%) |
|---|---|---|---|---|
| Farming | 4,249 | 4,852 | (603) | (12%) |
| Mineral Resources | 7,687 | 11,630 | (3,943) | (34%) |
| Ranch Operations | 3,518 | 3,384 | 134 | 4% |
| Commercial/Industrial | 8,497 | 8,706 | (209) | (2%) |
| Total Revenues | 23,951 | 28,572 | (4,621) | (16%) |
Farming Segment
The farming segment produces revenue primarily from the sale of almonds, pistachios, wine grapes, and hay. For the nine months ended September 30, 2024:
- Almonds: $2,243,000
- Pistachios: $22,000
- Wine grapes: $1,304,000
- Hay: $66,000
- Other: $614,000
Total farming revenues were $4,249,000, a decrease of $603,000 or 12% from 2023, largely due to lower wine grape sales. Farming expenses increased to $9,406,000, leading to an operating loss of $5,157,000.
Mineral Resources Segment
TRC's mineral resources segment includes revenues from oil and gas royalties, rock and aggregate mining leases, and water sales. For the nine months ended September 30, 2024:
- Oil and gas: $664,000
- Cement: $2,085,000
- Rock aggregate: $1,541,000
- Water sales: $3,260,000
- Other: $136,000
Total mineral resources revenues decreased to $7,687,000, a drop of 34% from the previous year, primarily due to reduced water sales. Expenses for this segment were $5,043,000, resulting in an operating income of $2,644,000.
Ranch Operations Segment
Ranch operations include game management and ancillary land uses such as grazing leases. For the nine months ended September 30, 2024:
- Game management and other: $1,808,000
- Grazing: $1,710,000
Total ranch operations revenues were $3,518,000, an increase of 4% from the previous year. Operating loss from ranch operations was $193,000.
Commercial/Industrial Segment
This segment involves commercial leasing and management fees. For the nine months ended September 30, 2024:
- Total commercial revenues: $8,497,000
- Total commercial expenses: $6,005,000
The operating income from commercial/industrial activities was $2,492,000, down 22% compared to the same period in 2023.
Joint Ventures
TRC holds investments in various joint ventures, which significantly contribute to its earnings. For the nine months ended September 30, 2024:
- Equity in earnings from joint ventures: $7,611,000, representing a 65% increase from the prior year.
The most notable joint venture, Petro Travel Plaza Holdings, LLC, reported earnings of $6,004,000, a 45% increase due to improved fuel margins.
Corporate and Other Expenses
Corporate general and administrative costs were $8,794,000 for the nine months ended September 30, 2024, an increase of 29% from the previous year. This includes a significant rise in stock compensation expense. The total other income for the same period was $1,633,000, which decreased from the previous year's $2,047,000.
Conclusion of Financial Performance
Tejon Ranch Co. reported total revenues of $23,951,000 for the nine months ended September 30, 2024, a decline of 16% from the previous year, primarily driven by decreases in mineral resources and farming segments. Operating loss for the period was $11,324,000.
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Resources:
- Tejon Ranch Co. (TRC) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Tejon Ranch Co. (TRC)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Tejon Ranch Co. (TRC)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.