Consolidated Tomoka Land Earnings 2020-09-30

Balance Sheet	Income Statement	Cash Flow
Assets, Equity	Rev, G Profit, Net Income	Ops, Inv, Fin

Table of Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2020

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 01-11350

CTO REALTY GROWTH, INC.

(Exact name of registrant as specified in its charter)


Florida		59-0483700
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification No.)

1140 N. Williamson Blvd., Suite 140
Daytona Beach, Florida		32114
(Address of principal executive offices)		(Zip Code)

(386) 274-2202

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class:	Trading Symbol	Name of each exchange on which registered:
COMMON STOCK, $1.00 PAR VALUE	CTO	NYSE American

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer	☐	Accelerated Filer	☒

Non-accelerated Filer	☐	Smaller Reporting Company	☐

		Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class of Common Stock Outstanding

October 30, 2020

$1.00 par value 4,716,793

Table of Contents

INDEX


		Page
		No.
PART I—FINANCIAL INFORMATION

Item 1. Financial Statements

Consolidated Balance Sheets – September 30, 2020 (Unaudited) and December 31, 2019		3

Consolidated Statements of Operations – Three and nine months ended September 30, 2020 and 2019 (Unaudited)		4

Consolidated Statements of Comprehensive Income (Loss) – Three and nine months ended September 30, 2020 and 2019 (Unaudited)		5

Consolidated Statements of Shareholders’ Equity – Three and nine months ended September 30, 2020 and 2019 (Unaudited)		6

Consolidated Statements of Cash Flows – Nine months ended September 30, 2020 and 2019 (Unaudited)		7

Notes to Consolidated Financial Statements (Unaudited)		9

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations		50

Item 3. Quantitative and Qualitative Disclosures About Market Risk		71

Item 4. Controls and Procedures		72

PART II—OTHER INFORMATION		72

Item 1. Legal Proceedings		72

Item 1A. Risk Factors		73

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		82

Item 3. Defaults Upon Senior Securities		82

Item 4. Mine Safety Disclosures		83

Item 5. Other Information		83

Item 6. Exhibits		84

SIGNATURES		85

Table of Contents

PART I—FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CTO REALTY GROWTH, INC.

CONSOLIDATED BALANCE SHEETS


	(Unaudited) September 30, 2020		December 31, 2019
ASSETS
Property, Plant, and Equipment:
Income Properties, Land, Buildings, and Improvements	$	473,126,519	$	392,841,899
Other Furnishings and Equipment		735,049		733,165
Construction in Progress		81,409		24,788
Total Property, Plant, and Equipment		473,942,977		393,599,852
Less, Accumulated Depreciation and Amortization		(28,269,448)		(23,008,382)
Property, Plant, and Equipment—Net		445,673,529		370,591,470
Land and Development Costs		7,200,397		6,732,291
Intangible Lease Assets—Net		52,746,436		49,022,178
Assets Held for Sale—See Note 23		29,413,951		833,167
Investment in Joint Ventures		55,772,263		55,736,668
Investment in Alpine Income Property Trust, Inc.		31,716,464		38,814,425
Mitigation Credits		2,220,167		2,322,596
Commercial Loan and Master Lease Investments—See Note 4		39,679,612		34,625,173
Cash and Cash Equivalents		6,351,772		6,474,637
Restricted Cash		2,425,944		128,430,049
Other Assets—See Note 12		12,231,426		9,703,549
Total Assets	$	685,431,961	$	703,286,203
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities:
Accounts Payable	$	1,705,922	$	1,385,739
Accrued and Other Liabilities—See Note 17		9,697,498		5,687,192
Deferred Revenue—See Note 18		3,684,843		5,830,720
Intangible Lease Liabilities—Net		24,910,921		26,198,248
Liabilities Held for Sale—See Note 23		831,320		831,320
Income Taxes Payable		3,597,093		439,086
Deferred Income Taxes—Net		83,105,934		90,282,173
Long-Term Debt		276,916,118		287,218,303
Total Liabilities		404,449,649		417,872,781
Commitments and Contingencies—See Note 21
Shareholders’ Equity:
Common Stock – 25,000,000 shares authorized; $1 par value, 6,105,732 shares issued and 4,710,808 shares outstanding at September 30, 2020; 6,076,813 shares issued and 4,770,454 shares outstanding at December 31, 2019		6,049,253		6,017,218
Treasury Stock – 1,394,924 shares at September 30, 2020 and 1,306,359 shares at December 31, 2019		(77,540,735)		(73,440,714)
Additional Paid-In Capital		33,502,507		26,689,795
Retained Earnings		320,690,858		326,073,199
Accumulated Other Comprehensive Income (Loss)		(1,719,571)		73,924
Total Shareholders’ Equity		280,982,312		285,413,422
Total Liabilities and Shareholders’ Equity	$	685,431,961	$	703,286,203

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

CTO REALTY GROWTH, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	Three Months Ended				Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
	2020		2019		2020		2019
Revenues
Income Properties	$	12,933,029	$	10,260,831	$	35,409,172	$	31,360,544
Management Fee Income		682,153		—		2,079,805		—
Interest Income from Commercial Loan and Master Lease Investments		413,092		855,559		2,300,331		908,324
Real Estate Operations		543,700		213,589		630,841		709,261
Total Revenues		14,571,974		11,329,979		40,420,149		32,978,129
Direct Cost of Revenues
Income Properties		(3,592,875)		(1,476,288)		(8,274,432)		(5,043,496)
Real Estate Operations		(1,681,583)		(8,484)		(3,262,584)		(94,780)
Total Direct Cost of Revenues		(5,274,458)		(1,484,772)		(11,537,016)		(5,138,276)
General and Administrative Expenses		(3,340,982)		(2,260,728)		(8,603,393)		(6,881,524)
Impairment Charges		—		—		(1,904,500)		—
Depreciation and Amortization		(4,762,057)		(4,286,836)		(14,335,715)		(11,707,710)
Total Operating Expenses		(13,377,497)		(8,032,336)		(36,380,624)		(23,727,510)
Gain on Disposition of Assets		289,736		2,187,332		7,365,594		20,869,196
Gain on Extinguishment of Debt		—		—		1,141,481		—
Other Gains and Income		289,736		2,187,332		8,507,075		20,869,196
Total Operating Income		1,484,213		5,484,975		12,546,600		30,119,815
Investment and Other Income (Loss)		(1,029,496)		33,048		(5,746,282)		86,363
Interest Expense		(2,477,232)		(3,253,908)		(8,382,792)		(9,219,195)
Income (Loss) from Continuing Operations Before Income Tax Benefit (Expense)		(2,022,515)		2,264,115		(1,582,474)		20,986,983
Income Tax Benefit (Expense) from Continuing Operations		501,011		(573,731)		409,635		(5,289,584)
Income (Loss) from Continuing Operations		(1,521,504)		1,690,384		(1,172,839)		15,697,399
Income (Loss) from Discontinued Operations (Net of Income Tax)—See Note 23		—		(204,364)		—		2,853,520
Net Income (Loss)	$	(1,521,504)	$	1,486,020	$	(1,172,839)	$	18,550,919

Per Share Information—See Note 13:
Basic and Diluted
Net Income (Loss) from Continuing Operations	$	(0.33)	$	0.35	$	(0.25)	$	3.11
Net Income (Loss) from Discontinued Operations (Net of Income Tax)		—		(0.04)		—		0.56
Basic and Diluted Net Income (Loss) per Share	$	(0.33)	$	0.31	$	(0.25)	$	3.67

Dividends Declared and Paid	$	0.40	$	0.11	$	0.90	$	0.31

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

CTO REALTY GROWTH, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)


	Three Months Ended				Nine Months Ended
	September 30, 2020		September 30, 2019		September 30, 2020		September 30, 2019
Net Income (Loss)	$	(1,521,504)	$	1,486,020	$	(1,172,839)	$	18,550,919
Other Comprehensive Income (Loss)
Cash Flow Hedging Derivative - Interest Rate Swap (Net of Income Tax Benefit (Expense) of $24,670, $(21,153), $(526,455) and $(137,543), respectively)		72,666		(62,307)		(1,793,495)		(405,138)
Total Other Comprehensive Income (Loss), Net of Income Tax		72,666		(62,307)		(1,793,495)		(405,138)
Total Comprehensive Income (Loss)	$	(1,448,838)	$	1,423,713	$	(2,966,334)	$	18,145,781

The accompanying notes are an integral part of these consolidated financial statements.

Table of Contents

CTO REALTY GROWTH, INC.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(Unaudited)

For the three months ended September 30, 2020:


									Accumulated
					Additional				Other
	Common		Treasury		Paid-In		Retained		Comprehensive		Shareholders’
	Stock		Stock		Capital		Earnings		Income (Loss)		Equity
Balance July 1, 2020	$	6,047,393	$	(77,540,735)	$	32,888,012	$	324,074,094	$	(1,792,237)	$	283,676,527
Net Loss		—		—		—		(1,521,504)		—		(1,521,504)
Stock Issuance		1,860		—		71,610		—		—		73,470
Stock Compensation Expense from Restricted Stock Grants and Equity Classified Stock Options		—		—		542,885		—		—		542,885
Cash Dividends ($0.40 per share)		—		—		—		(1,861,732)		—		(1,861,732)
Other Comprehensive Income, Net of Income Tax		—		—		—		—		72,666		72,666
Balance September 30, 2020	$	6,049,253	$	(77,540,735)	$	33,502,507	$	320,690,858	$	(1,719,571)	$	280,982,312

For the three months ended September 30, 2019:

Accumulated

Price	58.72	EPS	6
Shares	5	P/E	10
MCap	297	P/FCF	18
Net Debt	272	EBIT	42
TEV	569	TEV/EBIT	14
TTM 2019-09-30, in MM, except price, ratios

10-Q	2020-09-30	Filed 2020-11-06
10-Q	2020-06-30	Filed 2020-08-10
10-Q	2020-03-31	Filed 2020-05-11
10-K	2019-12-31	Filed 2020-03-06
10-Q	2019-09-30	Filed 2019-10-23
10-Q	2019-06-30	Filed 2019-07-31
10-Q	2019-03-31	Filed 2019-04-30
10-K	2018-12-31	Filed 2019-02-28
10-Q	2018-09-30	Filed 2018-10-26
10-Q	2018-06-30	Filed 2018-08-01
10-Q	2018-03-31	Filed 2018-05-01
10-K	2017-12-31	Filed 2018-02-28
10-Q	2017-09-30	Filed 2017-10-30
10-Q	2017-06-30	Filed 2017-08-09
10-Q	2017-03-31	Filed 2017-05-09
10-K	2016-12-31	Filed 2017-02-24
10-Q	2016-09-30	Filed 2016-10-28
10-Q	2016-06-30	Filed 2016-07-29
10-Q	2016-03-31	Filed 2016-05-03
10-K	2015-12-31	Filed 2016-03-01
10-Q	2015-09-30	Filed 2015-10-30
10-Q	2015-06-30	Filed 2015-07-31
10-Q	2015-03-31	Filed 2015-05-06
10-K	2014-12-31	Filed 2015-02-27
10-Q	2014-09-30	Filed 2014-10-28
10-Q	2014-06-30	Filed 2014-08-01
10-Q	2014-03-31	Filed 2014-04-30
10-K	2013-12-31	Filed 2014-03-10
10-Q	2013-09-30	Filed 2013-10-31
10-Q	2013-06-30	Filed 2013-07-30
10-Q	2013-03-31	Filed 2013-05-03
10-K	2012-12-31	Filed 2013-03-08
10-Q	2012-09-30	Filed 2012-11-07
10-Q	2012-06-30	Filed 2012-08-08
10-Q	2012-03-31	Filed 2012-05-09
10-K	2011-12-31	Filed 2012-03-15
10-Q	2011-09-30	Filed 2011-11-09
10-Q	2011-06-30	Filed 2011-08-09
10-Q	2011-05-09	Filed 2011-05-09
10-K	2010-12-31	Filed 2011-03-11
10-Q	2010-11-09	Filed 2010-11-09
10-Q	2010-08-16	Filed 2010-08-16
10-Q	2010-05-04	Filed 2010-05-10
10-K	2009-12-31	Filed 2010-03-12

8-K	2021-02-16	Earnings, Regulation FD, Exhibits
8-K	2020-12-21	Other Events, Exhibits
8-K	2020-12-17	Other Events, Exhibits
8-K	2020-11-20
8-K	2020-11-09
8-K	2020-10-28
8-K	2020-09-08
8-K	2020-09-03
8-K	2020-07-29
8-K	2020-07-29
8-K	2020-06-30
8-K	2020-04-29
8-K	2020-04-28
8-K	2020-04-28
8-K	2020-02-21
8-K	2020-02-12
8-K	2020-02-12
8-K	2020-02-03
8-K	2020-01-24
8-K	2019-12-09
8-K	2019-11-26
8-K	2019-10-23
8-K	2019-10-18
8-K	2019-10-16
8-K	2019-10-16
8-K	2019-10-15
8-K	2019-07-17
8-K	2019-07-17
8-K	2019-06-03
8-K	2019-05-24
8-K	2019-04-24
8-K	2019-04-24
8-K	2019-04-16
8-K	2019-04-16
8-K	2019-02-05
8-K	2019-02-05
8-K	2018-10-17
8-K	2018-10-17
8-K	2018-10-17
8-K	2018-07-18
8-K	2018-07-18
8-K	2018-06-04
8-K	2018-04-25
8-K	2018-04-25
8-K	2018-04-17
8-K	2018-04-17
8-K	2018-04-09
8-K	2018-02-21
8-K	2018-02-07
8-K	2018-02-07

EX-31.1	cto-20200930xex31d1.htm
EX-31.2	cto-20200930xex31d2.htm
EX-32.1	cto-20200930xex32d1.htm
EX-32.2	cto-20200930xex32d2.htm

CTO 10Q Quarterly Report

Consolidated Tomoka Land Earnings 2020-09-30