Tejon Ranch Co. 10-Q: Water Asset Cash Flow Guidance
Ticker: TRC · Form: 10-Q · Filed: Aug 6, 2024 · CIK: 96869
| Field | Detail |
|---|---|
| Company | Tejon Ranch Co (TRC) |
| Form Type | 10-Q |
| Filed Date | Aug 6, 2024 |
| Risk Level | low |
| Pages | 16 |
| Reading Time | 19 min |
| Key Dollar Amounts | $0.50 |
| Sentiment | neutral |
Sentiment: neutral
Topics: 10-Q, accounting, real-estate, water-assets
TL;DR
TRC 10-Q out: They're using judgment for water asset cash flow classification based on predominant source.
AI Summary
Tejon Ranch Co. filed its 10-Q for the period ending June 30, 2024. The filing details the company's financial activities and disclosures, including its accounting practices for water asset activity, which are guided by ASC Topic 230-10-45-22. The company uses judgment to classify cash flows related to water assets based on the predominant source of cash flow.
Why It Matters
This filing clarifies how Tejon Ranch Co. accounts for cash flows related to its water assets, providing transparency for investors on how these significant operational aspects are reported.
Risk Assessment
Risk Level: low — The filing is a standard quarterly report and does not indicate any immediate or significant new risks.
Key Players & Entities
- TEJON RANCH CO (company) — Filer of the 10-Q
- ASC Topic 230-10-45-22 (guidance) — Accounting standard referenced for cash flow classification
- 20240630 (date) — End of the reporting period
FAQ
What is the primary accounting guidance Tejon Ranch Co. follows for classifying cash flows related to water assets?
Tejon Ranch Co. follows ASC Topic 230-10-45-22, which provides guidance on classifying cash receipts and payments that have aspects of more than one class of cash flows.
How does Tejon Ranch Co. determine the classification of cash flows for water assets when it's unclear?
The company uses judgment and analysis, considering the nature of the activity and the predominant source of cash flow, as discussed at the 2006 AICPA Conference on Current SEC and PCAOB Developments.
What is the reporting period covered by this 10-Q filing?
The 10-Q filing covers the period ending June 30, 2024.
Where is Tejon Ranch Co. headquartered?
Tejon Ranch Co. is headquartered at 4436 Lebec Road, PO Box 1000, Lebec, CA 93243.
What is the Standard Industrial Classification (SIC) code for Tejon Ranch Co.?
The Standard Industrial Classification code for Tejon Ranch Co. is 6500, categorized under Real Estate.
Filing Stats: 4,771 words · 19 min read · ~16 pages · Grade level 16 · Accepted 2024-08-06 13:09:13
Key Financial Figures
- $0.50 — ange on which registered Common Stock, $0.50 par value TRC New York Stock Exchange
Filing Documents
- trc-20240630.htm (10-Q) — 1731KB
- ex311section302certceoq220.htm (EX-31.1) — 11KB
- ex312section302cfoq22024.htm (EX-31.2) — 11KB
- ex32section906ceocfocaoq22.htm (EX-32) — 7KB
- trc-20240630_g1.jpg (GRAPHIC) — 17KB
- 0000096869-24-000011.txt ( ) — 8538KB
- trc-20240630.xsd (EX-101.SCH) — 64KB
- trc-20240630_cal.xml (EX-101.CAL) — 77KB
- trc-20240630_def.xml (EX-101.DEF) — 302KB
- trc-20240630_lab.xml (EX-101.LAB) — 669KB
- trc-20240630_pre.xml (EX-101.PRE) — 499KB
- trc-20240630_htm.xml (XML) — 1248KB
FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION
Financial Statements
Item 1. Financial Statements 4 Consolidated Balance Sheets as of June 30, 2024 (unaudited) and December 31, 2023 4 Unaudited Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2024 and 2023 5 Unaudited Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2024 and 2023 6 Unaudited Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 7 Unaudited Consolidated Statement s of Changes in Equity for the Three and Six Months Ended June 30, 2024 and 2023 9 Notes to Unaudited Consolidated Financial Statements 11
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 28
Quantitative and Qualitative Disclosures About Market Risk
Item 3. Quantitative and Qualitative Disclosures About Market Risk 45
Controls and Procedures
Item 4. Controls and Procedures 47
OTHER INFORMATION
PART II. OTHER INFORMATION
Legal Proceedings
Item 1. Legal Proceedings 48
Risk Factors
Item 1A. Risk Factors 48
Unregistered Sales of Equity Securities and Use of Proceeds
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 48
Defaults Upon Senior Securities
Item 3. Defaults Upon Senior Securities 48
Mine Safety Disclosures
Item 4. Mine Safety Disclosures 48
Other Information
Item 5. Other Information 48
Exhibits
Item 6. Exhibits 48
SIGNATURES
SIGNATURES 53 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 Greenhouse 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) June 30, 2024 December 31, 2023 (unaudited) ASSETS Current Assets: Cash and cash equivalents $ 33,032 $ 31,907 Marketable securities - available-for-sale 16,533 32,556 Accounts receivable 2,359 8,352 Inventories 9,001 3,493 Prepaid expenses and other current assets 3,567 3,502 Total current assets 64,492 79,810 Real estate and improvements - held for lease, net 16,426 16,609 Real estate development (includes $ 122,329 at June 30, 2024 and $ 119,788 at December 31, 2023, attributable to CFL (Note 14)) 357,574 337,257 Property and equipment, net 56,074 53,985 Investments in unconsolidated joint ventures 32,134 33,648 Net investment in water assets 57,800 52,130 Other assets 6,334 4,084 TOTAL ASSETS $ 590,834 $ 577,523 LIABILITIES AND EQUITY Current Liabilities: Trade accounts payable $ 13,234 $ 6,457 Accrued liabilities and other 3,871 3,214 Deferred income 1,681 1,891 Total current liabilities 18,786 11,562 Revolving line of credit 51,942 47,942 Long-term deferred gains 11,447 11,447 Deferred tax liability 8,267 8,269 Other liabilities 15,809 15,207 Total liabilities 106,251 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 - 26,806,409 at June 30, 2024 and 26,770,545 at December 31, 2023 13,404 13,386 Additional paid-in capital 347,040 345,609 Accumulated other comprehensive loss ( 175 ) ( 171 ) Retained earnings 108,951 108,908 Total Tejon Ranch Co. Stockholders' Equity 469,220 467,732 Non-controlling interest 15,363 15,364 Total equity 484,583 483,096 TOTAL LIABILITIES AND EQUITY $ 590,834 $ 577,523 See accompanying notes. 4 TEJON RANCH CO. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS ($ in thousands, except per sh