[Sign Up Now] to Receive Our FREE Daily SCVTV-SCVNews Digest by E-Mail

Santa Clarita CA
Partly sunny
Partly sunny
Today in
S.C.V. History
July 21
1952 - 7.5-magnitude Kern County earthquake devastates Tehachapi; damage spread from San Diego to Las Vegas [story]

Editor’s note: Three large housing communities are planned for the Tejon Ranch in northwestern Los Angeles County and southern Kern County. Tejon Mountain Village at Lebec is approved for 3,450 homes; the Centennial project is estimated at 17,000 homes; and Grapevine at Tejon Ranch is envisioned as a 12,000-home community (combination of single-family homes and multifamily units).


tejonranchcentennialTejon Ranch Co., a diversified real estate development and agribusiness company, released the results of operations for the fourth quarter and year ended December 31, 2015.

“During fiscal 2015, we achieved several significant milestones and made meaningful progress toward executing our overall strategic vision,” said Gregory S. Bielli, President and CEO. “With the progress we’ve made with our large-scale development projects, Mountain Village at Tejon Ranch, Centennial at Tejon Ranch and Grapevine at Tejon Ranch, we have established a strong foundation for future growth and long-term shareholder value creation. In addition, our diversified operations, including both our unique natural resources and commercial operations, continue to support our strategic initiatives. Water sales continued their strong momentum from the prior year and revenues related to our farming operations were consistent with prior year; however, we experienced lower than expected revenues from our mineral resources segment. In line with our strategy, our diversification proved beneficial as we offset the shortfall in revenues by increasing our rentable square footage in our commercial segment by 6% in 2015.”

Fourth Quarter Financial Highlights

      – Revenue from operations for the fourth quarter of 2015 was $15.6 million, an increase of $1 million, or 7%, compared to $14.6 million in revenue for the same period in 2014. The increase in revenues was mainly due to greater almond sales within the farming segment during the fourth quarter of 2015 compared to the same period in 2014.

* Net income available to common stockholders for the fourth quarter of 2015 was $1.7 million, representing earnings per common share of $0.08, compared to $1.9 million, or earnings per common share of $0.09, for the same period in 2014. The decrease in net income was partially due to a decrease in equity in earnings from unconsolidated joint ventures, in addition to an increase in corporate general and administrative expenses, as discussed below.

* Corporate general and administrative expenses for the fourth quarter of 2015 were $3.6 million, an increase of $1.2 million, or 52%, compared to $2.4 million for the same period in 2014. The increase was mainly due to a one-time non-cash pension settlement charge ($0.5 million) and other personnel related expenses ($0.4 million).

Fiscal 2015 Financial Highlights

      * Revenue from operations was $51.1 million in fiscal 2015 and 2014. Commercial revenues increased 5% year over year as rentable square footage increased by 6% during 2015. This increase was offset by a 7% decrease in mineral resources attributed to declining oil prices during 2015. Farming revenues were flat year over year, and included the following:

        * Farming revenue

          * Increase in almond revenue of $2.2 million, or 22%

* Decrease in pistachio revenue of $1.2 million, or 15%

* Increase in wine grape revenue of $0.4 million, or 9%

* Net income available to common stockholders for fiscal 2015 was $3.0 million, representing earnings per common share of $0.14, compared to $5.7 million, or earnings per common share of $0.27, for fiscal 2014. The year-over-year reduction in net income was mainly due an increase in general and administrative expenses and in farming expenses. These increases in expenses were partially offset by an improvement in equity in earnings of $1.0 million when compared to 2014.

    – Corporate general and administrative expenses for fiscal 2015 were $12.8 million, an increase of $2.2 million, or 20%, compared to $10.6 million for fiscal 2014. The increase was mainly due to increases in payroll and benefit costs as follows:

      * Increase pension and retirement plan charges of $0.9 million


        * Included within the $0.9 million is a one-time non-cash pension settlement charge of $0.5 million

* The Company also changed its performance-based bonus payment compensation from stock and cash to all cash triggering an increase in bonus expense of $0.2 million.

– Increase of $0.5 million in workers compensation and health insurance costs.

– One time charge related to employee severance of $0.6 million

– Farming expenses increased $2.7 million, or 17%, during 2015 compared to 2014. This is mainly attributed to increased cost of sales from commodities of approximately $2.2 million as well as higher fixed water costs of $0.5 million, resulting from the drought and related increases in state water costs.

Fiscal 2015 Operational Highlights

– In November 2015, the Board of Directors approved a detailed business plan guiding the near-term development and marketing of Mountain Village at Tejon Ranch, the Company’s upcoming upscale mountain residential/resort community located in the westernmost high country of Tejon Ranch. The Board has also authorized the management team to move forward with the creation of Tentative Tract Maps, the final step in the regulatory process.

– In June 2015, the Los Angeles County Board of Supervisors gave final approval for the Antelope Valley Area Plan, or AVAP, providing land use designations and zoning for the residential and commercial development of Centennial at Tejon Ranch, or Centennial, our large-scale community.

* In November 2015, the Board of Directors approved the expansion of the portfolio of industrial buildings at Tejon Ranch Commerce Center (TRCC), authorizing the 2016 construction of a 250,000 square foot building.

* Board approval of additional 4,600 square foot multi-tenant building in TRCC-East, which we completed and delivered to tenants in December 2015.

* In February 2015, parties involved in a groundwater use adjudication agreed to a settlement with respect to the rights to groundwater within the Antelope Valley basin. The settlement includes the groundwater underlying the Company’s land near the Centennial project. In December 2015, the court approved the settlement, which is currently under appeal. The Company’s water supply plan for the Centennial project anticipated reliance on, among other sources, a certain quantity of groundwater underlying the Company’s lands in the Antelope Valley.

2016 Outlook:

The Company believes its capital structure provides a solid foundation for continued investment in ongoing and future projects. As of December 31, 2015, total capital, including long-term debt, was approximately $406.1 million. The Company also had cash and securities totaling approximately $34.7 million and full availability on its $30 million line of credit.

The Company will continue to aggressively pursue development, leasing, and investment within TRCC and in its joint ventures. The Company continues to invest in its residential projects, including the completion of entitlements for Centennial and Grapevine at Tejon Ranch and in the pre-development investment for Mountain Village at Tejon Ranch.

During 2016, the Company will continue to invest funds toward obtaining entitlements for our land and for master project infrastructure and vertical development within our active commercial and industrial developments. California is one of the most highly regulated states in which to engage in real estate development and, as such, natural delays, including those resulting from litigation, can be reasonably anticipated. Accordingly, throughout the next few years, we expect net income to fluctuate from year-to-year based upon commodity prices, production within our farming segment, and the timing of sales of land and the leasing of land within our industrial developments.

The Company believes the variability of its quarterly and annual operating results will continue during 2016 due to the nature of its current farming and real estate activities. Mineral resource revenue from oil royalties is expected to be negatively impacted in 2016 due to the expectation of lower average prices for oil during 2016 as compared to 2015. Farm revenues may be adversely impacted in 2016, compared to 2015, due to recent declines in almond prices. As the spring bloom in the orchards has just begun, it is too early to make any estimate as to farm production for 2016.


About Tejon Ranch Co.

Tejon Ranch Co. (TRC) is a diversified real estate development and agribusiness company, whose principal asset is its 270,000-acre land holding located approximately 60 miles north of Los Angeles and 30 miles south of Bakersfield.

More information about Tejon Ranch Co. can be found online at http://www.tejonranch.com.



Tejon Mountain Village development starts above Gorman opposite Frazier Park and Lebec exits. Click map to enlarge
Comment On This Story
COMMENT POLICY: We welcome comments from individuals and businesses. All comments are moderated. Comments are subject to rejection if they are vulgar, combative, or in poor taste.
REAL NAMES ONLY: All posters must use their real individual or business name. This applies equally to Twitter account holders who use a nickname.


You can be the first one to leave a comment.

Leave a Comment

Latest Additions to SCVNews.com
1952 - 7.5-magnitude Kern County earthquake devastates Tehachapi; damage spread from San Diego to Las Vegas [story]
The L.A. County Superior Court on July 17 sided with Los Angeles County and dismissed a portion of Chiquita Canyon LLC's complaint, which challenged 13 conditions of the county's conditional use permit governing how the landfill operates, Supervisor Kathryn Barger announced Friday.
Court: Chiquita Landfill Must Comply with CUP, Pay County $12 Mil.
Four men allegedly stole a van and crashed it at Cinema Drive and Valencia Boulevard late Friday afternoon, breaking gas and water lines and snarling rush-hour traffic in the center of the city.
Suspected Van Thieves Crash, Rupture Gas, Water Lines in Valencia
The Los Angeles County Arts Commission has announced $4,518,000 in two-year grants to 216 nonprofit arts organizations through its Organizational Grant Program, and the Santa Clarita Philharmonic Orchestra and the Santa Clarita Shakespeare Festival are among the grantees.
Santa Clarita Philharmonic, Shakespeare Festival Win County Arts Grants
The Santa Clarita Valley Water Agency's board of directors voted in its Tuesday meeting to revise its per-diem payment policy for board members attending industry-related meetings and conferences.
SCV Water Board Trims Own Meeting Attendance Pay
College of the Canyons men's basketball player Robert Moss will continue his playing career at University of Saint Katherine after committing to join the Firebirds program.
COC Hoopster Robert Moss Commits to University of Saint Katherine
When wives earn more than their husbands, a puzzling thing can happen: Husbands say they earn more than they are and wives underreport their income, according to new Census Bureau research.
Census Research: Spouses Report Earnings Differently When Wives Earn More
Responding to a booming economy and a generous state budget, administrators on Thursday approved the first tuition decrease for the University of California system in nearly 20 years.
University of California Cuts Tuition for First Time in 20 Years
The William S. Hart Union High School District and Spirit Holding, developers of Castaic High School, will host a community kick-off event on Friday, Aug. 3, from 8 a.m. to 10 a.m. celebrating the one-year countdown to the grand opening of the new school, currently under construction.
Aug. 3: ‘Countdown to Castaic High’ Public Celebration
The next meeting of the Los Angeles County Board of Supervisors is set for Tuesday, July 24, starting at 9:30 a.m.
July 24: LA County Board of Supervisors Meeting
The Los Angeles County Health Officer has issued a Heat Alert for Monday, July 23 and Tuesday, July 24, as high temperatures have been forecast for the Santa Clarita Valley.
SCV Heat Alert Called for Monday, Tuesday
The Lancaster JetHawks jumped out to a 4-0 lead, but two late home runs from Stockton's Sandber Pimentel led the Ports to victory in a 5-4 final on Thursday night at Banner Island Ballpark.
Lancaster Can’t Stop Pimentel, Ports
The U.S. Department of Health & Human Services and Department of Justice have made public the government's plan for the court-ordered reunification of children ages 5 years and older who were separated from their parents by immigration authorities.
Feds Detail Plan to Reunite Immigrant Children with Parents
2001 - Then-Assemblyman George Runner introduces legislation to memorialize the historic Ridge Route. Enacted Oct. 4. [story]
During a press conference on Thursday at the Gerdau steel mill in Rancho Cucamonga, Chief Eric Parra announced the destruction of 3,566 weapons confiscated within in Los Angeles County. This event comes typically in July, in compliance with California Penal Code 18005(c), which calls for weapons unable to be sold to the public or returned to their owners, to be destroyed.
More than 3,500 Weapons Destroyed at Annual Destruction Event
The Summer Art Festival, at the Oaks Club of Valencia, invites you to a fun, free artists’ reception on Saturday, Aug. 11, 5:00 p.m. - 8:00 p.m.
Aug. 11: Summer Art Festival at Oaks Club
When you think "Advanced Manufacturing," Santa Clarita Valley probably isn't the first thing that comes to mind.
SCV Paves the Way for Advanced Manufacturing
(CN) – Delivering a blow to a Silicon Valley billionaire, the California Supreme Court on Wednesday erased a November ballot measure proposing to divide the Golden State in three.
State Supreme Court Tosses Ballot Measure to Split California in Three
Internationally famous Doña Oxford aka “The Goddess of Soul,” is fronting one of the hottest Blues bands of the 21st century. She has toured all over the world, bringing her amazing keyboard playing and vocals to devoted fans in Europe, Japan, Canada and the United States.
July 20: Valencia Jazz & Blues Series to Feature Doña Oxford
No business is immune from the unthinkable. Workplace violence is an increasingly important topic for organizations of all types.
Aug. 21: Active Shooter Awareness Training at VIA Luncheon
St. Kateri Tekakwitha Parish Church is holding their 2nd Annual Summer Night Car Show Friday, Aug. 24 from 6:00 p.m. - 9:30 p.m.
Aug. 24: St. Kateri 2nd Annual Summer Night Car Show
The Los Angeles County Homeless Initiative and Los Angeles Homeless Services Authority on Thursday launched the Los Angeles Homeless Outreach Portal, dubbed LA-HOP, the new Countywide Web-based portal that channels outreach support to people experiencing homelessness.
County Launches Online Portal to Combat Homelessness
LOS ANGELES - Southern California Gas Co. (SoCalGas) announced Tuesday the company is now offering $75 rebates for residential customers who purchase eligible Energy Star certified smart thermostats that help residents manage their heating and cooling costs and conserve energy.
SoCal Gas Offering Rebates for Customers with Smart Thermostats
STOCKTON – Brian Serven put together one of his best offensive performances of the season to lead the JetHakwks to a 7-2 to win over the Stockton Ports on Wednesday night at Banner Island Ballpark.
Serven Leads JetHawks to Victory in Series Opener Against Stockton
The William S. Hart Union High School District’s Governing Board voted unanimously to approve the appointment of Brad Renison to become the new Director of Transportation. Most recently, Mr. Renison has been serving as the Interim Director of Transportation.
Hart District Names Brad Renison New Transportation Director
LOS ANGELES – The Los Angeles Dodgers today acquired four-time All-Star shortstop Manny Machado from the Baltimore Orioles in exchange for Rylan Bannon, Yusniel Díaz, Dean Kremer, Zach Pop and Breyvic Valera.
Dodgers Acquire 4-Time All-Star Manny Machado
The William S. Hart Union High School District’s Governing Board voted unanimously to approve the appointment of Dr. Catherine Nicholas to become the new principal of Sequoia School.
Hart District Appoints Dr. Catherine Nicholas as New Sequoia School Principal
Welcome to paradise at a high-energy, live show coming up in Santa Clarita’s Concerts in the Park series, presented by Logix Federal Credit Union, this Saturday, July 21, at 7:00 p.m., in Central Park (27150 Bouquet Canyon Road).
July 21: Concerts in the Park to Feature Green Day Tribute Band
SCV Sheriff's Crime Prevention Unit deputies and station detectives have noted an increase in the thefts of catalytic converters from cars in Santa Clarita Valley. The favored target of thieves has been the Toyota Prius (2005-2009).
Deputies Warn of Rise in Catalytic Converter Thefts from Prius Cars
LOS ANGELES – According to the South Coast Air Quality Management District, air quality will be unhealthy Thursday for sensitive individuals in San Gabriel Valley, Santa Clarita Valley and Antelope Valley.
Air Quality Advisory Issued for SCV
Would you like to be a volunteer at beautiful Red Rock Canyon State Park? Learn about the volunteer program and the park’s natural and cultural history at our two-day volunteer training, Saturdays, Sept. 1st and 8th from 9:00 a.m. - 3:00 p.m. at the Ricardo Visitor Center (new volunteers must attend both days).
Red Rock Canyon State Park to Hold 2-Day Volunteer Training
The California Department of Transportation (Caltrans) announces the scheduled closure of the Tejon Safety Roadside Rest Areas on Interstate 5 (Golden State Freeway) to replace a water main line.
Caltrans Announces Temporary Rest Area Closure on I-5 at Tejon
1924 - Sherman Block, L.A. County's 29th Sheriff (1982-1998), born in Chicago [story]
Santa Clarita Valley Sheriff's Station deputies have arrested a Santa Clarita woman who allegedly spray-painted walls on a city park building in Saugus early Tuesday morning, also discovering she was allegedly in possession of forged checks.
Woman Charged with Defacing Park Building, Check Forgery
The Paramount Network has set Aug. 11 as the premiere date of 'I Am Paul Walker,' a new film documentary tracing the life of the late actor, who was killed in a 2013 car crash in Valencia.
Aug. 11: Paul Walker Film Doc to Debut on Paramount Network
Marston's Restaurant in Valencia is helping raise funds for Carousel Ranch, Santa Clarita Valley nonprofit organization that provides equestrian therapy for disabled and special needs children and adults.
July 15-Aug. 15: Marston’s Restaurant Fundraising for Carousel Ranch