TEJON RANCH CO
For the period ended Dec 31, 2023. Filed Mar 6, 2024.
View on SEC.govAbout this filing
A company's yearly report to the SEC, with audited financial statements. It is the fullest account a company gives of its business, its finances and the risks it sees.
FY2023 · Filed Mar 6, 2024
TRC$17.55-1.1%Stored close · as of Nov 10, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
See the whole filing, with its images and exhibitsContents
Consolidated Statements of Cash Flows - Years Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
| Twelve Months Ended December 31, | |||
|---|---|---|---|
| 2023 | 2022 | 2021 | |
| Operating Activities | |||
| Net income | $3,265 | $15,810 | $5,342 |
| Adjustments to reconcile net income to net cash provided by operating activities: | |||
| Depreciation and amortization | 4,806 | 4,628 | 4,594 |
| Amortization of (discount) premium on marketable securities | (691) | 87 | 111 |
| Equity in earnings of unconsolidated joint ventures, net | (6,868) | (7,752) | (9,202) |
| Non-cash retirement plan expense | 462 | 110 | 99 |
| Loss (gain) on sale of real estate/assets | 6 | (1,140) | (12) |
| Non-cash profits recognized from land contribution | — | (3,012) | (2,784) |
| Profit from water sale1 | (490) | (2,229) | (3,442) |
| Profit from land sales | — | (18,372) | (3,139) |
| Deferred income taxes | 1,121 | 2,865 | 1,134 |
| Stock compensation expense | 3,252 | 2,877 | 4,271 |
| Excess tax (benefit) loss of stock-based compensation | (723) | (105) | 48 |
| Abandonment expense | 189 | 85 | — |
| Inventory write down | 423 | 1,050 | — |
| Distribution of earnings from unconsolidated joint ventures | 13,511 | 11,793 | 5,892 |
| Changes in operating assets and liabilities: | |||
| Receivables, inventories, prepaids and other assets, net | (4,476) | 3,244 | (814) |
| Current liabilities, net | (132) | (1,408) | 718 |
| Net cash provided by operating activities | 13,655 | 8,531 | 2,816 |
| Investing Activities | |||
| Maturities and sales of marketable securities | 134,083 | 41,135 | 6,249 |
| Purchase of marketable securities | (132,317) | (63,882) | (14,586) |
| Real estate and equipment expenditures | (21,328) | (22,602) | (20,879) |
| Reimbursement proceeds from Communities Facilities District | — | 5,950 | 135 |
| Proceeds from sale of real estate/assets | 77 | — | 63 |
| Proceeds from sale of land | — | 24,950 | 4,413 |
| Investment in unconsolidated joint ventures | (4,500) | (800) | (2,900) |
| Distribution of equity from unconsolidated joint ventures | 10,978 | 8,166 | 5,734 |
| Investments in long-term water assets | (6,034) | (988) | (2,415) |
| Proceeds from water sales1 | 1,324 | 6,180 | 9,534 |
| Interest rate swap settlement2 | 3,715 | — | — |
| Net cash used in investing activities | (14,002) | (1,891) | (14,652) |
| Financing Activities | |||
| Borrowings on line of credit | 47,942 | — | — |
| Borrowings of long-term debt | — | 49,080 | — |
| Repayments of long-term debt | (50,357) | (51,708) | (4,295) |
| Deferred financing costs | (1,097) | (181) | — |
| Interest rate swap settlement3 | — | 1,123 | — |
| Taxes on vested stock grants | (3,353) | (2,733) | (1,791) |
| Net cash used in financing activities | (6,865) | (4,419) | (6,086) |
| (Decrease) increase in cash, cash equivalents, and restricted cash | (7,212) | 2,221 | (17,922) |
| Cash, cash equivalents, and restricted cash at beginning of year | 39,619 | 37,398 | 55,320 |
| Cash, cash equivalents, and restricted cash at end of year | $32,407 | $39,619 | $37,398 |
| Twelve Months Ended December 31, | ||
| 2023 | 2022 | 2021 |
| Reconciliation to amounts on consolidated balance sheets: | |||
|---|---|---|---|
| Cash and cash equivalents | $31,907 | $39,119 | $36,195 |
| Restricted cash (recorded in other assets) | 500 | 500 | 1,203 |
| Total cash, cash equivalents, and restricted cash | $32,407 | $39,619 | $37,398 |
| Non-cash investing activities | |||
|---|---|---|---|
| Accrued capital and water expenditures included in current liabilities | $2,091 | $1,847 | $1,342 |
| Contribution to unconsolidated joint venture | $— | $8,501 | $8,464 |
| Long term deferred profit on land contribution | $— | $3,012 | $2,785 |
| 1In determining the classification of cash inflows and outflows related to water asset activity, the Company’s practices are supported by Accounting Standards Codification (“ASC”) 230-10-45-22, which provides that “Certain cash receipts and payments have aspects of more than one class of cash flows…. If so, the appropriate classification shall depend on the activity that is likely to be the predominant source of cash flows for the item.” Also, at the 2006 American Institution of Certified Public Accountants Conference on Current SEC and PCAOB Developments, the Securities and Exchange Commission, or SEC staff discussed that an entity should be consistent in how it classifies cash outflows and inflows related to an asset’s purchase and sale and noted that when cash flow classification is unclear, registrants must use judgment and analysis that considers the nature of the activity and the predominant source of cash flow for these items.Given the nature of our water assets and the aforementioned authoritative guidance, the Company estimates the appropriate classification of water assets purchased based on the timing of the sale of the water. Water purchased in prior periods that was classified as investing was sold for $1.32 million in 2023, this cash inflow is appropriately classified in the Company’s investing activities. The profit of $0.5 million related to the water purchased in prior periods is appropriately being deducted from operating activities for the current period. The Company has and will continue to apply this methodology to water asset transactions that meet this fact pattern. | |||
| 2The Company had an interest rate swap agreement with Bank of America, N.A. to reduce its exposure to fluctuations in the floating interest rate tied to SOFR under the term note. The hedging relationship qualified as an effective cash flow hedge and was recorded at fair value. On October 23, 2023, the Company terminated the interest rate swap, and received a $3,715,000 cash termination fee from Bank of America, N.A. | |||
| 3The Company had an interest rate swap agreement with Wells Fargo Bank, N.A. to reduce its exposure to fluctuations in the floating interest rate tied to the London Inter-Bank Rate, or LIBOR under a term note with Wells Fargo. The hedging relationship qualified as an effective cash flow hedge and was recorded at fair value. On June 27, 2022, the Company terminated the interest rate swap, and received a $1,123,000 cash termination fee from Wells Fargo. | |||
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.