Tejon Ranch Co. Files Q1 2024 10-Q Report

TL;DR

<b>Tejon Ranch Co. filed its Q1 2024 10-Q, detailing water asset accounting and segment performance.</b>

AI Summary

TEJON RANCH CO (TRC) filed a Quarterly Report (10-Q) with the SEC on May 7, 2024. Tejon Ranch Co. filed its Q1 2024 10-Q report on May 7, 2024. The report covers the period ending March 31, 2024. The company's water asset activity classification follows ASC Topic 230-10-45-22. Water purchased in prior periods was sold for $1.3 million in 2023, classified as investing activity. A profit of $0.5 million related to prior water purchases is deducted from operating activities in the current period.

Why It Matters

For investors and stakeholders tracking TEJON RANCH CO, this filing contains several important signals. The company's detailed accounting for water asset transactions provides transparency into its cash flow management and profitability related to these assets. Disclosure of segment performance (Commercial & Industrial, Mineral Resources, Farming & Agriculture, Ranch Operations, Resort & Residential Real Estate) allows investors to assess the health and contribution of each business unit.

Risk Assessment

Risk Level: low — TEJON RANCH CO shows low risk based on this filing. The filing is a standard quarterly report with no immediate red flags, indicating a low level of risk from this specific filing.

Analyst Insight

Review the detailed segment performance data within the 10-Q to identify trends and potential investment opportunities or risks.

Revenue Breakdown

Key Numbers

• 1.3 million — Water Sale Proceeds (2023) (Cash inflow from sale of water purchased in prior periods.)
• 0.5 million — Profit from Water Sale (Profit related to water purchased in prior periods, deducted from operating activities.)

Key Players & Entities

• TEJON RANCH CO (company) — Filer
• ASC Topic 230-10-45-22 (regulatory) — Accounting guidance for cash flow classification
• SEC (regulator) — Discussed accounting practices at a conference
• PCAOB (regulator) — Discussed accounting practices at a conference
• AICPA (company) — American Institute of Certified Public Accountants

FAQ

Key Dates

• 2024-03-31: End of Reporting Period — Q1 2024 financial results
• 2024-05-07: Filing Date — 10-Q filing for Q1 2024

Glossary

ASC Topic 230-10-45-22

Accounting Standards Codification guidance on classifying cash receipts and payments. (Provides the framework for Tejon Ranch Co.'s classification of water asset cash flows.)

Key Financial Figures

• $0.50 — ange on which registered Common Stock, $0.50 par value TRC New York Stock Exchange

Filing Documents

• trc-20240331.htm (10-Q) — 1376KB
• ex311section302certceoq120.htm (EX-31.1) — 11KB
• ex312section302cfoq12024.htm (EX-31.2) — 11KB
• ex32section906ceocfocaoq12.htm (EX-32) — 7KB
• trc-20240331_g1.jpg (GRAPHIC) — 17KB
• 0000096869-24-000008.txt (&nbsp;) — 7485KB
• trc-20240331.xsd (EX-101.SCH) — 64KB
• trc-20240331_cal.xml (EX-101.CAL) — 75KB
• trc-20240331_def.xml (EX-101.DEF) — 299KB
• trc-20240331_lab.xml (EX-101.LAB) — 574KB
• trc-20240331_pre.xml (EX-101.PRE) — 445KB
• trc-20240331_htm.xml (XML) — 1063KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements 4 Consolidated Balance Sheets as of March 31, 2024 (unaudited) and December 31, 2023 4 Unaudited Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 5 Unaudited Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2024 and 2023 6 Unaudited Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 7 Unaudited Consolidated Statement of Changes in Equity for the Three Months Ended March 31, 2024 and 2023 9 Notes to Unaudited Consolidated Financial Statements 10

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 27

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 42

Controls and Procedures

Item 4. Controls and Procedures 44

OTHER INFORMATION

PART II. OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 45

Risk Factors

Item 1A. Risk Factors 45

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 45

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 45

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 45

Other Information

Item 5. Other Information 45

Exhibits

Item 6. Exhibits 45

SIGNATURES

SIGNATURES 50 2 Glossary The following initialisms or acronyms may be used in this document and shall be defined as set forth below: AKIP Advance Kern Incentive Program ASC Accounting Standards Codification ASU Accounting Standards Update AVEK Antelope Valley East Kern Water Agency CFL Centennial Founders, LLC CBD Center for Biological Diversity CEQA California Environmental Quality Act CFD Community Facilities District CNPS California Native Plant Society EBITDA Earnings Before Interest Taxes Depreciation and Amortization EIR Environmental Impact Report FTZ Foreign Trade Zone GAAP Generally Accepted Accounting Principles GHG Green House Gas MV Mountain Village at Tejon Ranch NOI Net Operating Income PEF Pastoria Energy Facility, LLC RCL Revolving Credit Line RWA Tejon Ranch Conservation and Land Use Agreement SEC Securities and Exchange Commission SOFR Secured Overnight Financing Rate SWP State Water Project TCWD Tejon-Castac Water District TRCC Tejon Ranch Commerce Center TRPFFA Tejon Ranch Public Facilities Financing Authority WRMWSD Wheeler Ridge Maricopa Water Storage District 3

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS TEJON RANCH CO. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ($ in thousands, except per share data) March 31, 2024 December 31, 2023 (unaudited) ASSETS Current Assets: Cash and cash equivalents $ 35,552 $ 31,907 Marketable securities - available-for-sale 25,119 32,556 Accounts receivable 3,694 8,352 Inventories 5,821 3,493 Prepaid expenses and other current assets 4,477 3,502 Total current assets 74,663 79,810 Real estate and improvements - held for lease, net 16,559 16,609 Real estate development (includes $ 121,133 at March 31, 2024 and $ 119,788 at December 31, 2023, attributable to CFL, Note 14) 342,198 337,257 Property and equipment, net 55,172 53,985 Investments in unconsolidated joint ventures 30,075 33,648 Net investment in water assets 58,023 52,130 Other assets 4,941 4,084 TOTAL ASSETS $ 581,631 $ 577,523 LIABILITIES AND EQUITY Current Liabilities: Trade accounts payable $ 9,752 $ 6,457 Accrued liabilities and other 3,186 3,214 Deferred income 2,421 1,891 Total current liabilities 15,359 11,562 Revolving line of credit 47,942 47,942 Long-term deferred gains 11,447 11,447 Deferred tax liability 8,267 8,269 Other liabilities 15,894 15,207 Total liabilities 98,909 94,427 Commitments and contingencies (Note 11) Equity: Tejon Ranch Co. Stockholders' Equity Common stock, $ 0.50 par value per share: Authorized shares - 50,000,000 Issued and outstanding shares - 26,797,440 at March 31, 2024 and 26,770,545 at December 31, 2023 13,400 13,386 Additional paid-in capital 346,141 345,609 Accumulated other comprehensive loss ( 177 ) ( 171 ) Retained earnings 107,994 108,908 Total Tejon Ranch Co. Stockholders' Equity 467,358 467,732 Non-controlling interest 15,364 15,364 Total equity 482,722 483,096 TOTAL LIABILITIES AND EQUITY $ 581,631 $ 577,523 See accompanying notes. 4 TEJON RANCH CO. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS ($ in thousands, except per sh

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