Tejon Ranch (TRC) - 2022 Q3 - Quarterly Report

Revenue Performance - Commercial/industrial revenues for Q3 2022 reached $22,352,000, a significant increase from $2,466,000 in Q3 2021, representing a growth of 804%[87] - The Company recognized land sales revenue of $19,627,000 from the sale of 58.0 acres of industrial land in Q3 2022, with deferred revenues of $2,373,000[86] - The Mineral Resources segment generated revenues of $3,139,000 in Q3 2022, down from $4,774,000 in Q3 2021, reflecting a decrease of 34.3%[89] - Farming segment revenues for Q3 2022 were $4,776,000, a decline of 29% compared to $6,726,000 in Q3 2021[90] - The Ranch Operations segment reported revenues of $1,208,000 in Q3 2022, an increase from $996,000 in Q3 2021, marking a growth of 21.3%[91] - Total revenues for the nine months ended September 30, 2022, increased to $149.867 million, up from $110.156 million in 2021, representing a growth of 36%[98] - Petro Travel Plaza Holdings, LLC reported revenues of $136.905 million for the nine months ended September 30, 2022, compared to $97.583 million in 2021, reflecting a 40% increase[98] - Centennial Founders, LLC, a joint venture, reported revenues of $0.379 million for the nine months ended September 30, 2022, slightly up from $0.377 million in 2021[98] Segment Performance - The Resort/Residential segment incurred losses of $372,000 in Q3 2022, compared to losses of $322,000 in Q3 2021[88] - The Company’s Ranch Operations segment achieved operating results of $65,000 in Q3 2022, a recovery from a loss of $186,000 in Q3 2021[91] Investments and Joint Ventures - The Company’s investment in unconsolidated joint ventures was $38,605,000 as of September 30, 2022, with equity in earnings of $4,867,000 for the nine months ended September 30, 2022[92] - The total equity in earnings for joint ventures increased to $7.965 million for the nine months ended September 30, 2022, compared to $4.482 million in 2021, marking a 77% rise[98] Debt and Financing - The outstanding balance of the term note for TRCC/Rock Outlet Center LLC was $27.982 million as of September 30, 2022, after a reduction of $4.6 million due to a loan extension[97] - The Company has long-term debt consisting of two term loans, with one having a balance of $48.833 million tied to the daily SOFR rate plus a margin of 1.55 percentage points[205] - The weighted average interest rate for the New Term Loan is fixed at 4.62%, while the second term loan has a fixed rate of 4.25%[205] - Long-term debt from the $4.75 million note is expected to increase from $254 million in 2022 to $560 million by 2026, totaling $1.947 billion[211] - Long-term debt from the $70 million note is projected to rise from $4.221 billion in 2022 to $27.700 billion by 2026, with a total of $50.837 billion[211] - The weighted average interest rate for long-term debt remains stable at 4.25% across all years[211] Marketable Securities and Investment Strategy - Marketable securities amounted to $31.529 million as of September 30, 2022, with a weighted average interest rate of 2.12%[209] - The Company’s investment activities aim to preserve principal while maximizing yields, limiting investments to securities with a maturity of less than five years[203] - Marketable securities decreased from $9.834 billion in 2022 to $0.756 billion in 2023, with a total of $10.590 billion projected[211] Market Risks - The Company is exposed to market risks related to interest rates and commodity prices, which may impact financial position and cash flows[201] - Farming inventories are exposed to adverse price fluctuations, with no receivables subject to commodity price fluctuations reported for 2022 due to no pistachio yields[212]