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Tejon Ranch Co.

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FY2010 Annual Report · Tejon Ranch Co.
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Tejon Ranch Company
2010 Annual Report

 
 
Our Vision for the Fu ture

T e j o n  Ra n c h  Co m p a n y  
is a diversified real estate development and agribusiness company 

committed to responsibly using its land and resources to meet the 

housing, employment and lifestyle needs of Californians and to  

create value for its shareholders.  The Company’s Vision is guided by 

the Ranch’s historic core values of conservation and good stewardship.

2 0 0 1 :   I K E A

IKEA is the largest home furnishings and accessory retailer in the world and its decision to purchase 80 acres at the Tejon Ranch 

Commerce Center helped put our industrial/commercial center on the map.  Opened in 2001, its Western North American  

Distribution Center covers nearly 1.8 million square feet, making it one of the largest buildings in California.  With the ability  

to serve 97% of the California population within a one-day round trip, it is a living example of the real and proven advantages of 

the Tejon Ranch Commerce Center for retail and industrial companies of every size.  Soon the IKEA distribution center will serve as 

an example of renewable energy as the company plans to install a photovoltaic solar power system on its roof.

tejon ranch company 

2010 annual report  

3

Letter to Shareholders
T raditionally, an annual report is a review of  

a company’s performance and operations over 

the previous year.  It contains both a numeric review 

goal of building shareholder value over time.  A major  

catalyst behind this move was the decision by IKEA to  

acquire land at our master planned commercial/industrial 

focusing on the company’s financial position and  

development, now called the Tejon Ranch Commerce 

performance as well as a narrative reflection of the 

Center, to build its Western North American Distribution 

company’s operations – past, present and future.  The 

Center.  Land development, however, is not for the faint 

2010 Annual Report of Tejon Ranch Company will not 

hearted.  It is very capital intensive.  Significant sums would 

differ from this norm.  But this year, we also have the 

be needed to develop the necessary infrastructure at the 

unique opportunity to cast our gaze a little further back, 

Commerce Center to build more distribution centers, and 

to reflect not only on the previous year, but on the past 

to invest in feasibility and scientific studies for our planned 

ten years as we have just concluded the first decade of the 

residential communities.  In 2001, the number of planned 

21st century.  As we look back, it’s interesting to note the 

residential communities expanded as we began sharing our 

parallels and similarities between the beginning and end 

concept of a mountain resort community called Tejon 

of the decade.

Mountain Village.  However, knowing that excess debt is 

often the death of many companies, especially those that 

Back in 2001, I wrote that Tejon Ranch was on the brink 

are land-based, we were, and are still committed to  

of a new era.  That was the year we began taking bolder 

maintaining a healthy balance sheet to ensure that the value 

steps to transition Tejon Ranch Company from primarily 

we build for shareholders is real and enduring.  

an agribusiness into a land development company with the 

2 0 0 3 :  Te j o n   R a n c h  V i s i o n

Preserving California’s Legacy & Providing for California’s Future
These two phrases encapsulate the core of the Tejon Ranch Vision that we unveiled in 2003… a vision for the future that includes  

extensive conservation; continuing the Ranch’s historic farming, ranching and hunting operations; and using a small portion of our 

land to build high-quality, environmentally sensitive communities.

2 0 0 4 :   Pa s t o r i a   E n e r g y   F a c i l i t y

The Pastoria Energy Facility, owned by Calpine, sits on a 31-acre site located just east of the base of the Grapevine.  The natural  

gas-powered electrical generating facility became operational in 2004 and is among the cleanest and most efficient power plants in 

California.  It can generate enough electricity to power 750,000 households.  It also produces a significant amount of revenue for  

the Ranch each year.  On average, lease payments and royalties from the Pastoria Facility have totaled about $3.5 million per year.

tejon ranch company 

2010 annual report  

5

As a result of  this commitment, we took two significant 

increase their ownership of our stock, demonstrating their 

steps to raise the capital we would need without raising 

continued confidence in Tejon Ranch Company and its 

our level of debt.  The first was to issue a Common Stock 

future.  Not only did they acquire the 2,173,946 shares 

Rights Offering which would give all stockholders the 

initially offered, we issued an additional 434,789 shares 

right to purchase new shares in proportion to their existing 

to honor over-subscription requests, and even that wasn’t 

holdings, ensuring that no stockholder’s interest in the  

enough to satisfy all the requests. 

Company would be involuntarily diluted.  At its conclusion, 

we generated $30 million in new equity through the 

Ten years ago, Tejon Mountain Village was a concept.  

Rights Offering.

Today, it is a fully entitled community that has passed a 

significant legal hurdle.  Last November, Kern County 

In 2001, we also made the strategic decision to sell the 

Superior Court Judge Kenneth Twisselman ruled in favor 

assets in our livestock division in order to free up capital 

of Kern County, Tejon Ranch Company, and its  

to be used towards our real estate efforts.  Leasing grazing 

development partner DMB Associates, Inc., when he 

land as opposed to owning and running a cattle operation 

found that the County had properly analyzed and  

substantially lowered our risk and capital requirements 

evaluated the environmental effects of Tejon Mountain 

without reducing our average earnings.

Village.  The Kern County Board of Supervisors had 

unanimously approved the mountain resort community 

The events of 2010 had a remarkable similarity to 2001.  

in October 2009.  In an extremely detailed and thorough 

Last year we conducted our second Rights Offering of 

ruling, Judge Twisselman rejected claims made by the 

the decade, this time raising $60 million.  Shareholders 

Arizona-based Center for Biological Diversity (CBD) that 

responded enthusiastically to this new opportunity to 

the environmental impact report for Tejon Mountain  

2 0 0 5 :   R o c k e f e l l e r   P a r t n e r s h i p

This partnership, formed in 2005 as a joint venture agreement, is a marriage of two names that exemplify quality and history – 

Rockefeller Group on the East Coast and Tejon Ranch on the West.  The Rockefeller Group Development Corporation has been involved 

in the development, management and ownership of some of the most prestigious and well-known properties in the United States, most 

notably Rockefeller Center in New York City.  For the last 20 years it has also been a leader in Foreign Trade Zone development and 

management, and that experience and expertise is central to the partnership.

  6  

tejon ranch company 

2010 annual report 

Village was inadequate.  CBD has appealed his ruling, 

in Centennial.  We are continuing to make good progress 

but we are extremely confident that it will be upheld upon 

and hope to begin the Public Review process very soon, 

review by the 5th District Court of Appeals in Fresno.  

but eight years is still a long time to process an applica-

Meanwhile, we are diligently working on the  

tion.  However, in retrospect, that slow progress has 

detailed plans for the first phase of the community,  

proved to be to a benefit.  We would not have wanted to 

while at the same time filing for all the necessary state  

have hundreds of millions of dollars invested in infra-

and federal permits to ensure that we are ready to go  

structure in the midst of one of the worst and longest 

once market conditions indicate it is time to commence 

real estate recessions in most of our memories.  

with construction.

Even though we began the decade transitioning into 

Real estate development may be an arduous process 

a land development company, we are still very much 

involving many different regulatory approvals, but it is 

involved in agribusiness and 2010 was a record year for 

one that will provide considerable benefits to the region 

our farming division.  High crop yields and high prices, 

and our shareholders over time.  It is often frustrating 

especially for pistachios, led to the greatest level of farm 

and hard to be patient when dealing with the slow pace 

revenue we’ve ever experienced.

of entitling land in California, especially when that pace 

is controlled by multiple governmental agencies.  We 

As a diversified company, we also want to explore the  

filed our land use application in Los Angeles County for 

potential opportunities we have to realize the economic 

our master planned new town of Centennial in 2002.  

value associated with the Tejon Ranch brand – a brand 

We, along with our partners, Pardee Homes, the Lewis 

that’s derived from our land and heritage – and that also 

Companies and Standard Pacific, remain very confident 

represents the Company’s high corporate standards in how  

2 0 0 6 :   D M B   Pa r t n e r s h i p

In 2006, Tejon Ranch Company signed a partnership agreement with DMB Associates, Inc. to jointly plan and develop Tejon Mountain Village.  

We began sharing the concept of a premier mountain resort community back in 2001, but we knew we needed an ideal partner to turn that 

concept into reality.  DMB Associates is such a partner.  It is the leading developer of planned resort communities in the West, with a proven track 

record of building exceptional, environmentally sensitive communities in California, Arizona, Utah and Hawaii.  DMB Associates brings to 

the partnership the shared vision of developing Tejon Mountain Village into one of America’s great places, and the experience, expertise and equity 

needed to make that happen.

2 0 0 7 :   E x p a n s i o n   o f  Te j o n   R a n c h   C o m m e r c e   C e n t e r

The Tejon Ranch Commerce Center saw significant growth over the decade.  Initially approved for development only on the west side of Interstate 

5, we sought to expand the center east of I-5 to a total of 1,450 acres.  The expansion was approved by Kern County, only to be challenged in 

court.  After making a few minor changes to the Environmental Impact Report, the project was again approved, a decision upheld by the Superior 

and Appellate Courts.         The Commerce Center has proven to be a top location for retail and industrial companies, including IKEA, Famous 

Footwear, Starbucks, McDonalds, Panda Express, In-N-Out Burger, Chipotle Mexican Grill, and the Petro and TA Travel Centers.

  8 

tejon ranch company 

2010 annual report 

it operates.  What does the Tejon Ranch brand mean?  It 

means high quality, an enduring connection to California’s 

heritage, a strong stewardship ethic, and visionary thinking.   

We continue to explore ways we can monetize the Tejon 

Ranch brand and all of its attributes both on and off our land.

Any look back over the last decade should include a look at 

some of the events that shaped our world and our business 

than making decisions based 

on factors like debt-service 

requirements, economic cycles 

or world events.

Overall, 2010 and the entire 

decade that preceded it, was 

a good one for Tejon Ranch 

climate, for no company operates in a vacuum.  The first de-

Company.  Throughout these pages, we’ve tried to high-

cade of the 21st century saw its share of challenges.  It began 

light some of the more significant events and milestones 

with the terrorist attacks on September 11, 2001, and the 

that made up this first ten years of the 21st century.  

uncertainty that followed, and ended with what we now refer 

Space doesn’t permit us to focus on every event, but we 

to as “The Great Recession.”  In between, we experienced an 

trust the ones we’ve chosen are a good representation of 

energy crisis in California and have seen our country involved 

our efforts to build shareholder value through our Vision 

in two wars.  For some shareholders, such economic and geo-

of Preserving California’s Legacy and Providing for 

political upheaval is a reason to own stock in Tejon Ranch.  

California’s Future.

They value owning a tangible asset like land; “something 

they’re not making any more of,” is the often-heard refrain.  

Fortunately, the absence of debt on our land allows us to 

pursue our goal of maximizing long-term value enhancement 

Rob e rt  A.  S ti ne

for our shareholders, even if that takes some time, rather 

President and Chief Executive Officer

2 0 0 8 :   C o n s e r v a t i o n   &   L a n d   U s e   A g r e e m e n t

The Tejon Ranch Conservation and Land Use Agreement is the largest and most significant private conservation agreement in  

California history. Our accord with five respected environmental organizations, Audubon California, Endangered Habitats League, 

Natural Resources Defense Council, Planning and Conservation League and the Sierra Club, will result in the permanent  

conservation of 240,000 of the Ranch’s 270,000 acres – 90% of our property.  Under the Agreement, we will also be able to 

pursue, without opposition from the environmental groups, the creation of high-quality environmentally sensitive communities on the 

remaining ten percent of our land.        In 2009, the Agreement received California’s most prestigious environmental honor, the  

Governor’s Environmental and Economic Leadership Award.

2 0 0 9 - 2 0 1 0 :  Te j o n   M o u n t a i n  V i l l a g e   A p p r o v e d

Certainly a key highlight of the decade was the Kern County Board of Supervisors’ unanimous approval of Tejon Mountain Village in 

2009, and our mutual victory in court a year later.  During the approval hearing, the Supervisors were effusive in their praise for the 

community, noting its environmental sensitivity, the care and planning that went into its design, and the role Tejon Mountain Village 

will play as a prestigious new gateway to Kern County.         Tejon Mountain Village will feature resort and recreational facilities, 

up to 750 hotel rooms, golf and equestrian opportunities with extensive trails; up to 3,450 new homes (ranging from resort  

condominiums to multi-acre custom lots); and 160,000 square feet of publicly accessible commercial space.         A high-quality 

mountain resort community located just a short drive from both Bakersfield and the large and affluent Los Angeles market should be a 

natural draw for people who want to live in a beautiful natural setting where 80 percent of the land is preserved as open space. 

 10 

tejon ranch company 

2010 annual report 

Tejon Ranch Company Timeline

A Decade in Review

20 01

20 02

2 003

2 004

2 005

    $30 million
Rights Offering

    IKEA opens

    Construction begins 
on power plant

    Sale of  livestock

    DP Partners JV  
spec building finished

    Tejon Ranch  
Vision unveiled

    Pastoria Energy 
Facility operational

    Application filed  
in LA County for  
Centennial

    Expansion of Tejon 
Ranch Commerce  
Center initially  
approved by Kern 
County

    $55 million 
equity raised in  
private placement

    Application filed in 
Kern County for Tejon 
Mountain Village

    Partnership formed 
with Rockefeller

    Kern County approves 
amended EIR for expan-
sion of Tejon Ranch 
Commerce Center

11

2006

20 07

2 008

2 009

2010

    Partnership formed 
with DMB Associates  
to develop Tejon 
Mountain Village

    Commerce Center 
expansion approval  
upheld in Superior 
Court

    Sold DP Partners JV 
building to ProLogis

    Commerce Center 
expansion upheld by 
Appellate Court

    Conservation & 
Land Use Agreement 
signed

    Groundbreaking  
ceremony and dedica-
tion of Bakersfield 
National Cemetery

    Kern County approves 
Tejon Mountain Village

    Bakersfield National 
Cemetery opens

    Famous Footwear 
opens distribution 
center at Tejon Ranch 
Commerce Center

    TA Partnership 
opens new Travel  
Center on east side  
of I-5

    Tejon Mountain  
Village approval upheld 
in Superior Court

    $60 million Rights 
Offering

    California’s Wildlife 
Conservation Board 
authorizes funding of 
$15.8 million to purchase 
Conservation Easements 
on 62,000 acres

 
 
 12 

tejon ranch company 

2010 annual report 

consolidated balance sheets

($ in thousands) 
assets 
Current assets: 
  Cash and cash equivalents 
  Marketable securities 
  Accounts receivable 

Inventories 

  Prepaid expenses and other current assets 
  Deferred tax assets 
Total current assets 

Property and equipment, net 
Investments in unconsolidated joint ventures 
Long-term water assets 
Long-term deferred tax assets 
Other assets 
Total assets 

liabilities and stockholders’ equity 
Current liabilities: 
  Trade accounts payable 
  Other accrued liabilities 
  Deferred income 

Short-term line of credit 

  Current portion of long-term debt 
Total current liabilities 

Long-term debt, less current portion 
Long-term deferred gains 
Other liabilities 
Pension liability 

Commitments and contingencies 

equity 
  Tejon Ranch Co.’s stockholders’ equity
  Common stock, $.50 par value per share: 
  Authorized shares - 30,000,000 

Issued and outstanding shares 19,747,470  in 2010 and 17,019,428 in 2009 

  Additional paid-in capital 
  Accumulated other comprehensive loss 
  Retained earnings 
  Tejon Ranch Co.’s stockholders’ equity 
Noncontrolling interest 
Total Equity 
Total liabilities and equity 

December 31
2009

2010 

 $  22,027  
   48,985  
 9,812  
 2,982  
 5,011  
 -  
   88,817  

683 
 $ 
   30,156 
 7,117 
 1,766 
 3,929 
 691 
   44,342 

  117,275  
   48,302  
   28,774  
 3,985  
 938  
 $288,091  

  120,461 
   46,337 
   17,018 
 5,798 
 788 
 $234,744 

 $  2,187  
 1,334  
 601  
 -  
 35  
 4,157  

 $  1,363 
 560 
 1,478 
 9,550 
 33 
   12,984 

 290  
 2,277  
 3,196  
 1,519  

 325 
 2,277 
 3,323 
 1,454 

 9,874  
  183,816  
   (2,191) 
   45,215  
  236,714  
   39,938  
  276,652  
 $ 288,091  

 8,509 
  126,829 
   (2,151)
   41,040 
  174,227 
   40,154 
  214,381 
 $ 234,744 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
tejon ranch company 

2010 annual report  

13

consolidated statements of  operations

($ in thousands, except per share amounts) 
revenues 

 Real estate - commercial/industrial  
 Real estate - resort/residential  
 Farming  
 Total revenues  

costs and expenses: 

 Real estate - commercial/industrial  
 Real estate - resort/residential  
 Farming  
 Corporate expenses  
 Total expenses  
 Operating income (loss)  
other income (expense): 

 Investment income  
 Other  
 Interest expense  
 Total other income  

 Income (loss) from operations before  

 equity in earnings of unconsolidated joint ventures  

 Equity in earnings of unconsolidated joint ventures, net  
 Income (loss) before income taxes  
 Income tax provision (benefit)  
 Net income (loss)  
 Net income (loss) attributable to noncontrolling interests  
 Net income (loss) attributable to common stockholders  

 Net income (loss) attributable to common stockholders  

 Basic  
 Diluted  

Year Ended December 31
2008

2009 

2010 

 $  16,656  
 281  
   18,576  
   35,513  

 $  14,996  
 272  
   12,983  
   28,251  

 $  27,234 
 - 
   12,887
   40,121

   10,659  
 3,089  
   10,914  
 5,612  
   30,274  
 5,239  

   12,469  
 4,443  
   11,804  
 7,311  
   36,027  
   (7,776) 

   13,846 
 4,563
   11,692 
 8,539
    38,640
 1,481

 979  
 61  
 (9) 
 1,031  

 1,640  
 45  
 (70) 
 1,615  

 2,169 
 349 
 (70)
 2,448 

 6,270  

   (6,161) 

 3,929 

 541  
 6,811  
 2,852  
 3,959  
 (216) 
 $  4,175  

 374  
   (5,787) 
   (2,354) 
   (3,433) 
 (56) 
 $  (3,377) 

 2,227 
 6,156 
 2,044 
 4,112 
 - 
 $  4,112 

 $ 
 $ 

0.23  
0.22  

 $  (0.19) 
 $  (0.19) 

 $ 
 $ 

0.24 
0.24 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 14 

tejon ranch company 

2010 annual report 

consolidated statements of  stockholders’ equity

($ in thousands, except share information) 

Common 
Stock Shares 
 Outstanding 

Common 
Stock 

Additional 

Accumulated 
Other  
Paid-In  Comprehensive  
Loss  
Capital 

Total Tejon
Ranch Co.’s 
Stockholder 
Equity 

Retained  
Earnings  

Non-  
controlling 
Interest 

Total Equity

Balance, December 31, 2007 

  16,899,982  

 8,450  

   118,370  

 (2,071) 

 -    

 -    

 -    

 -    

40,305  

4,112  

 165,054  

4,112  

 -    

 -    

   165,054 

4,112 

Net income 

Changes in unrealized losses on 

available-for-sale securities, 

net of taxes of $506 

Benefit plan adjustments, 

net of taxes of $77 

SERP liabiltity adjustment, 

net of taxes $109 

Equity in other comprehensive income of  

unconsolidated joint venture, 

net of taxes of $37  

Comprehensive income 

Exercise of stock options and  

related tax benefit of $227 

Restricted stock issuance 

Stock compensation 

Balance, December 31, 2008 

Net loss  

Changes in unrealized losses on 

available-for-sale securities, 

net of taxes of $746 

Benefit plan adjustments, 

net of taxes of $179 

SERP liabiltity adjustment, 

net of taxes $44 

Equity in other comprehensive income of  

unconsolidated joint venture, 

net of taxes of $102 

Comprehensive loss 

Exercise of stock options and  

no related tax benefit 

Restricted stock issuance 

Stock compensation 

Shares withheld for taxes 

Noncontrolling interest 

Net income 

Changes in unrealized losses on 

available-for-sale securities, 

net of taxes of $1 

Benefit plan adjustments, 

net of taxes of $206 

SERP liabiltity adjustment, 

net of taxes $248 

Equity in other comprehensive income of  

unconsolidated joint venture, 

net of taxes of $39 

Comprehensive income 

Rights Offering, net expenses 

Exercise of stock options and  

 related tax benefit of $204 

Restricted stock issuance 

Stock compensation 

Shares withheld for taxes 

 -    

 -    

 -    

 -    

 -    

 -    

 -    

(765) 

 -    

 (765) 

 -    

(765)

 -    

(154) 

 -    

 (154) 

 -    

(154)

 -    

165  

 -    

165  

 -    

165 

-    

 -    

 -    

 28  

 -    

56,064  

 30,724  

 -    

 28  

 15  

 -    

 1,425  

 (15) 

3,413  

 -    

 -    

 -    

  16,986,770  

 8,493  

 123,193  

 (2,797) 

-    

 -    

 -    

 -   

 -   

 -    

 -    

 44,417  

 (3,377) 

 28  

 -  

 -  

 1,453  

 -  

 3,413  

 173,306  

 (3,377) 

 -    

 -    

 -    

 -   

28 

 3,386 

 - 

 1,453 

 - 

 3,413 

 -    

   173,306 

 (56) 

 (3,433)

-    

 -    

 -    

 -    

 -    

 -    

 -    

 1,128  

 -    

1,128  

 -    

 1,128 

 -   

 (394) 

 -    

 (394) 

 -   

 (394)

 -    

 66  

 -    

 66  

 -    

 66 

 -    

 -    

-    

(154) 

 -   

 (154) 

 -   

 11,858  

 26,636  

 -    

 (5,836) 

 -    

 6  

13  

 -    

 (3) 

 -    

 235  

(13) 

 3,557  

 (143) 

 -    

 -    

 -    

 -    

 -    

 -    

 -   

 -    

 -   

 -    

 -    

 -  

 -  

 241  

 -  

 3,557  

 (146) 

 -    

 -    

 -   

 -    

 (154)

 (2,787)

 - 

 241 

 - 

 3,557 

(146)

-    

 -    

 -    

 -    

 -    

 -    

 -   

 (2) 

 (2) 

 (2)

 -    

 (299) 

 -   

 (299) 

 -    

 (299)

 -    

330  

 -    

 330  

 -   

 330 

 -    

 -    

 -   

 (69) 

 -    

 (69) 

 -  

  2,608,735  

 1,306  

58,454  

 78,894  

 56,131  

39  

28  

1,960  

 (28) 

 -    

 -    

 (2,944) 

 (15,718) 

 (8) 

 (455) 

 -    

 -    

 -    

 -    

 -    

 -    

59,760  

 -  

1,999  

 -  

 (2,944) 

 (463) 

 -    

 -    

 -    

 -    

 -    

 -    

 -   

 -    

 -    

 -    

 (69)

 3,919 

59,760 

 - 

 1,999 

 - 

 (2,944)

(463)

Balance, December 31, 2009 

  17,019,428  

 8,509  

 126,829  

 (2,151) 

 -    

 -    

 -    

 -    

 -  

40,210  

 40,210 

 41,040  

 4,175  

 174,227  

 40,154  

   214,381 

4,175  

 (216) 

 3,959 

Balance, December 31, 2010 

  19,747,470  

9,874  

 183,816  

(2,191) 

 45,215  

   236,714  

 39,938  

 276,652 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
  
  
 
  
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
  
 
 
 
  
 
 
 
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
 
 
  
 
 
 
 
  
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
  
 
  
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
tejon ranch company 

2010 annual report  

15

consolidated statements of  cash flows

($ in thousands) 
operating activities 
  Net income (loss) 
  Adjustments to reconlcile net income (loss) 
to net cash provided by operating activities: 
  Depreciation and amortization 
  Deferred income taxes 
  Gain from sale of real estate 
  Non-cash straight line rent income 
  Non-cash expense of retirement plans 

(Gain) loss on sales of assets/investments 

  Fair market value adjustments 
  Equity in (earnings) losses of unconsolidated joint ventures, net 
  Amortization of stock compensation expense (reversal) 
  Excess tax benefit from stock-based compensation    
  Abandonment expense 

  Distribution of earnings from joint ventures 
  Changes in current assets and current liabilities: 

  Receivable, inventories,and other current assets 
  Current Liabilities, net 

Net cash provided by operating activities  
investing activities 
  Maturities of marketable securities 
  Funds invested in marketable securities 
  Reimbursement proceeds Kern County - Laval Interchange 
  Reimbursement proceeds from community facilities district 
  Proceeds from sale of real estate 
  Distribution of equity from joint ventures 
  Property and equipment expenditures 
Investments in long-term water assets 
Investment in unconsolidated joint ventures 

  Other 
Net cash used in investing activities  
financing activities 
  Payments on short-term debt 
  Borrowing of short-term debt 
  Repayment of long-term debt 
  Net proceeds from rights offering 
  Excess tax benefit from stock-based compensation 
  Exercise of stock options 
  Taxes on vested stock grant 
Net cash provided by financing activities 
Increase (decrease) in cash and cash equivalents 
Cash and cash equivalents at beginning of year 
Cash and cash equivalents at end of year 
supplemental cash flow information 

Interest paid (net of amounts capitalized) 

  Taxes paid (net of refunds) 

Year Ended December 31
2008

2009 

2010 

 $  3,959  

  $(3,433) 

 $  4,112 

 2,317  
   (1,351) 
 (559) 
 145  
800  
-  
 -  
(541) 
   (2,944) 
(227) 
 -  
 1,440  

 3,122  
   (1,072) 
 -  
153  
 900  
(114) 
113  
(374) 
   3,557  
 -  
662  
 -  

 2,885 
 (314)
   (6,219)
 (151)
 791 
 225 
 304 
   (2,227)
   3,413 
(227)
 - 
 - 

(201) 
361  
3,199  

 (135) 
   (2,018) 
   1,361  

   1,377 
   2,379 
 4,313 

  15,720  
 (34,751) 
1,613  
  10,860  
604  
4,100  
  (14,196) 
  (11,981) 
  (4,594) 
 (943) 
  (33,568) 

 (16,400) 
6,850  
(33) 
  59,760  
 -  
1,999  
(463) 
  51,713  
  21,344  
 683  
 $  22,027  

   38,400  
  (14,876) 
 -  
   2,007  
 -  
   1,866  
  (20,925) 
   (3,899) 
  (12,837) 
   (1,159) 
  (11,423) 

  (10,500) 
   17,300  
 (30) 
 -  
 -  
241  
(146) 
   6,865  
   (3,197) 
 3,880  
683  

 $ 

   42,438 
  (28,904)
 - 
 - 
   7,376 
 55 
  (20,366)
  (11,376)
   (3,828)
 (304)
  (14,909)

   (5,000)
 7,750 
 (29)
 - 
227 
   1,226 
 - 
   4,174 
   (6,422)
   9,454 
 $  3,032 

$ 
 $ 

9  
875  

 $ 
 $ 

70  
(661) 

 $ 
70 
 $  3,430 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
  
 
  
 
 
 
 
 
 
  
 
 
 
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 16 

tejon ranch company 

2010 annual report 

performance graph

The following graph is a comparison of cumulative total shareowner returns for the Company, the Dow Jones Equity 
Market Index, and the Dow Jones Real Estate Index for the period shown. 

comparison of five year cumulative total returns

s
r
a
l
l
o
d

160.00

120.00

80.00

40.00

0.00

12.31.05

12.31.06

12.31.07

12.31.08

12.31.09

12.31.10

tejon ranch 

dj equity mkt 

 dj real estate

- Assumes $100 invested on December 31, 2005
- Total return assumes reinvestment of  dividends 
- Fiscal year ending December 31

tejon ranch 
dj equity mkt 
dj real estate 

2006 
39.88% 
15.57% 
35.50% 

2007 
-26.84% 
6.01% 
-18.15% 

2008 
-39.44% 
-37.16% 
-40.07% 

2009  
18.11% 
28.79% 
30.81% 

2010
-5.72%
16.65%
26.93%

The stock price performance depicted in the above graph is not necessarily indicative of future price performance.  
The Performance Graph will not be deemed to be incorporated by reference in any filing by the Company under the 
Securities Act of 1933 or the Securities Exchange Act of  1934, except where the Company specifically incorporates the 
Performance Graph by reference.

The Dow Jones Real Estate Index, for the most part, includes companies which have revenues substantially greater  
than those of the Company. The Company is unaware of any industry or line-of-business index that is more  
nearly comparable.

common stock information

quarter 
First 
Second 
Third 
Fourth 

high 
$33.30 
$30.71 
$24.40 
$28.58 

2009 
low 
$29.06 
$23.00 
$21.15 
$21.49 

high  
$25.69 
$28.92 
$28.18 
$30.78 

2010
low
$18.40
$20.29
$24.55
$24.76

As of February 17, 2011, there were 402 owners of record of our Common Stock.

 
 
 
 
 
 
 
 
 
 
directors and executive officers

board of directors
Kent G. Snyder 
Chairman of the Board,  
Tejon Ranch Company; 
Real Estate Attorney

John L. Goolsby 
Private Investments and Real Estate

Barbara Grimm-Marshall 
Co-owner 
Grimmway Farms

Norman Metcalfe 
Real Estate and Investments

George G.C. Parker 
Dean Witter Distinguished  
Professor of Finance,  
Stanford Business School

corporate directory

corporate office 
Tejon Ranch Company 
Post Office Box 1000 
4436 Lebec Road 
Lebec, California 93243 
Telephone: (661) 248-3000

securities listing 
Tejon Ranch Company  
Common Stock is listed on  
the New York Stock Exchange  
under the ticker symbol: TRC

Geoffrey L. Stack 
Managing Director,  
SARES-REGIS Group, 
Real Estate Development  
and Management

Robert A. Stine 
President and Chief Executive Officer, 
Tejon Ranch Company

Michael H. Winer 
Portfolio Manager, Third Avenue 
Management LLC, 
Investment Management

executive officers
Robert A. Stine 
President and Chief Executive Officer

Dennis J. Atkinson 
Senior Vice President – Agriculture 

Joseph E. Drew 
Senior Vice President – Real Estate

Allen E. Lyda 
Senior Vice President, Chief Financial 
Officer and Assistant Secretary

Kathleen J. Perkinson 
Senior Vice President, 
Natural Resources and Stewardship

stock transfer agent  
and registrar 
BNY Mellon Shareowner Services 
480 Washington Boulevard 
Jersey City, NJ 07310-1900

auditors 
Ernst & Young LLP

form 10-k 
A copy of  this report and the Company’s 
Annual Report to the Securities and 
Exchange Commission on Form 10-k, 
without exhibits, will be provided without 
charge to any stockholder submitting a 
written request to the Corporate Secretary:

tejon ranch company 
Post Office Box 1000 
4436 Lebec Road 
Lebec, California 93243