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Tejon Ranch Co.

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FY2011 Annual Report · Tejon Ranch Co.
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Tejon Ranch Company        2011 Annual Report

T e j o n  R a n c h  C o 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.

Th e   B e a l e   A d o b e ,  named for the founder of Tejon Ranch, Gen. Edward F. Beale, is located in the southern portion of 

the Ranch in the original La Liebre land grant.  Built in the 1860s, it is the oldest building in the Antelope Valley.

Tejon Ranch stretches from 
an elevation of 413 feet above 
sea level on the floor of the 
San Joaquin Valley to nearly 
6,800 feet in the Tehachapi 
Mountains, and captures– in 
one location–much of  the 
widely divergent beauty of 
California.  Comprised of 
a region reaching eastward 
from the Temblor Range to 
the Sierra Nevada, northward 
from the Angeles National 
Forest to the Tehachapi 
Mountains, and across Cali-
fornia’s great Central Valley, 
Tejon Ranch is the only place 
in California that encompass-
es four major ecoregions.  

A trip through our property 
reveals a dramatic tapestry 
of rugged mountains, steep 
canyons, oak-covered rolling 
hills, wetlands, broad valleys, 
lakes and streams. Ancient 
blue oak woodlands can be 
found on Tejon Ranch land, 
as can conifer forests, Joshua 
trees, and spectacular spring 
displays of wildflowers as far 
as the eye can see.  For those 
of you who are statistically-
minded, you will be interest-
ed to note that Tejon Ranch 
supports at least 23 vegetation 
communities and one-third 

To Our Shareholders

S o m e o n e posed a  
challenging question the oth-
er day.  If  we had to choose 
a single word to describe 
our life, what word would 
we select?  That’s a hard one.  
Determining the one solitary 
word that captures all that we 
are – our values, motivations, 
priorities, accomplishments; 
how we view ourselves and 
how we believe we appear to 
others, is not an easy task.  
While difficult, it certainly 
is a worthwhile exercise, 
for it causes us to examine 
ourselves and the direction 
our life is taking.  It makes 
us evaluate what’s really im-
portant and whether our lives 
reflect a clear commitment to 
our highest priorities.

The same exercise is also 
beneficial for a company or 
organization.  It’s impor-
tant to understand who we 
are—and who we are not.   
In our case, the exercise is 
two-fold, for Tejon Ranch is 
both an expanse of land and 
a company. 

If asked to come up with a 
single word to best describe 
Tejon Ranch–the land, there 
are many to choose from:  
large, historic, majestic, 
beautiful. Even though 
Tejon Ranch is all of these 
and more, I think perhaps 
the best and most descrip-
tive word that captures the 
breadth and depth of our 
landholdings is diverse.

Robert A. Stine
President & 
Chief Executive Officer

Tejon Ranch Co.  Annual Report 2011  Shareholders Letter

3.

 
Te j o n   R a n c h   features a diverse landscape, from conifer forests in the higher elevations to steep canyons with oak-studded hillsides.

It’s only appropriate that  
Caterpillar heavy equipment is 
being used to prepare the site for 
the new Caterpillar parts distri-
bution center at the Tejon Ranch 
Commerce Center.

of California’s oak species 
can be found on the Ranch.  
Tejon Ranch is incredibly and 
undeniably diverse.

The same word—“diverse,” 
is also an excellent descrip-
tion of Tejon Ranch—the 
company.  Not only do we 
employ a diverse workforce, 
we are also engaged in many 
different revenue generat-
ing operations.  In fact, our 
mission statement describes 
Tejon Ranch Company as “a 
diversified real estate develop-
ment and agribusiness com-
pany.”  The diversified nature 
of our operation is very 
evident in our financial state-
ment.  In 2011, we generated 
$ 63 million in revenue from 
a wide variety of operations, 
ranging from real estate and 
agriculture to oil and film 
production.  While one could 
make the case that virtually 
all of our business operations 
are connected in some way or 
another to our landholdings, 
these operations are nonethe-
less very diverse.

Perhaps the best way for me 
to describe the diverse nature 
of our operation would be 
to share with you a typi-
cal day in the life of  Tejon 
Ranch.  So let’s take a look at 

March 1, 2012, and the variety 
of activities taking place in 
different areas of the Ranch 
that day. 

Tejon Ranch Commerce 
Center

The Tejon Ranch Com-
merce Center, our 1,450-acre 
master planned commercial/
industrial development, is 
alive with activity.  Trucks 
are bringing product both 
in and out of IKEA and 
Famous Footwear’s distribu-
tion centers.  Next door to 
IKEA, workers are racing 
to complete extensive ten-
ant improvements to the 
606,000-square-foot building 
Dollar General Corpora-
tion leased at the end of last 
year from our joint venture 
partnership with Rockefeller 
Group Development Corpo-
ration.  Meanwhile, Dollar 
General is busy conducting 
interviews with potential 
employees as it needs to hire 
some 200 people or more 
before beginning operations 
in April.  

Over on the east side of the 
Commerce Center, teams 
of construction workers are 
busy preparing the 46-acre 
site for Caterpillar Inc.’s new 
400,000-square-foot parts 
distribution facility.  
The Commerce Center’s 
parking lots are also full as 
people stop for a break—
and gas and food--before 
continuing north or south 
on Interstate 5.  Research we 
conducted last year indicates 
that nearly a quarter of all 
residents in Southern  

The Tejon Ranch Commerce 
Center had a very successful year 
in 2011, with deals inked on the 
industrial side with Caterpillar 
and Dollar General. The center 
had several new retail offerings 
as well, including Del Taco, 
Yogurtland, and a new Microtel 
lodging facility.

Tejon Ranch Co.  Annual Report 2011  Shareholders Letter

Calpine’s Pastoria Energy Facility 
continues to be a strong performer, 
generating much-needed electricity 
for California and more than 3.5 
million dollars in annual revenue 
for Tejon Ranch.

Tejon Ranch’s oil and gas 
revenue in 2011 was 1,574% 
higher than a decade ago.

California make the Tejon 
Ranch Commerce Center a 
regular stop as they travel 
the state.  It’s no wonder 
that many of the stores 
located here are top national 
performers.

Energy Production

Less than a half mile to the 
east of the Tejon Ranch 
Commerce Center, Vintage 
Petroleum, a subsidiary of 
Occidental Petroleum, is 
drilling another oil well—its 
fourth on a footprint of just 
6.5 acres.  Vintage is just one 
of many companies en-
gaged in oil production and 
exploration on Tejon Ranch.  
In 2011, it drilled 14 wells on 
Tejon Ranch lands, all of 
which are in production. 

Oil production is nothing 
new to Tejon as it’s been 
an important part of our 
business since the Company 
incorporated back 1936, but 
we are seeing a significant 
increase in activity.  The 
oil industry is much more 
advanced than it was in the 
days wells were first drilled in 
the Tejon fields.  New seismic 
and imaging techniques are 
helping geologists better 
pinpoint potential reserves.  
In fact, Sojitz Corporation 
of America’s Energy and 
Mineral Resources Division 
has leased the balance of  
our oil and gas interests in 
the Southern San Joaquin 
Valley and is conducting 
tests and drilling operations 
to determine if there are any 
previously unknown reserves 
that could be developed.  
Advanced recovery meth-
ods, including slant drilling, 
are enabling companies to 
economically recover reserves 
that were previously consid-

ered infeasible, bringing new 
life and vitality to legacy oil 
fields such as those on Tejon.  
These new state-of-the-art 
techniques, combined with 
strong prices for Kern River 
Crude, helped the Company 
increase revenues from its oil 
and gas operations by 107 
percent compared to 2010, 
and 1,574 percent compared 
to ten years ago.

Nearby, Calpine’s Pastoria 
Energy Facility, a natural 
gas fueled power plant, is in 
full operation, generating 
hundreds of  megawatts of 
electricity every day – and 
approximately $3.5 million 
in annual revenue for our 
Company.

Over on the south side of the 
Ranch, just north of the fu-
ture site of  Centennial, tech-
nicians with Aurora Solar, a 
subsidiary of international 
power producer Iberdrola,  
are conducting isolation tests 
to determine the rate of 
solar activity in preparation 
of a permit application it 
will submit to Kern County 
to build an industrial-sized 
photovoltaic solar facility on 
the 692 acres it’s leasing on 
Tejon.

Agriculture

The almond orchards on 
the Ranch are in full-bloom 
this March day.  Last year, 
almonds led us to record 
another outstanding year of 
farming revenues as strong 
prices and excellent yields 
boosted our revenue by $21 
million.  Like oil production, 

Tejon Ranch Co.  Annual Report 2011  Shareholders Letter

7.

 
 
Th i s   e n t r a n c e  to Rising Canyon will be one of the entrances to Tejon Mountain Village.

 Tejon Ranch’s almond orchards 
are in full bloom by early spring.

end, we enjoy excellent 
relationships with premiere 
international companies who 
share our commitment to 
quality, companies such as 
Paramount, Gallo, and the 
Wine Group.  Our vision is 
international, and you’ll find 
Tejon Ranch products being 
used throughout the world.

Residential Community 
Development

Though we are not currently 
under construction, every day 
we are actively involved in 
a number of efforts lead-
ing toward the securing of 
entitlements for our planned 
residential communities—
Tejon Mountain Village and 
Centennial.  In the case of 
Centennial, our sustainable 
master planned new town 
in Los Angeles County, that 
involves working with the 
Department of Regional 
Planning, monitoring changes 
in laws and regional growth 
plans, updating scientific and 
technical reports in prepara-
tion for the pending release 
of the draft environmental 
impact report, and engaging 
with the local community to 
continue building support for 
Centennial.

Now that Tejon Mountain 
Village, our mountain resort/
residential community, has 
been approved by Kern 
County, much of the daily 

farming has historically been 
an important component 
of our business operations.  
And like the oil industry, ad-
vances in technology and new 
state-of-the-art practices are 
producing greater yields per 
acre, are making fields more 
productive, and are improving 
the quality of the almonds, 
pistachios and wine grapes we 
grow on the Ranch.

Many of  our orchards and 
vineyards have been in 
production for more than 
forty years.  Using advanced 
techniques in drip irrigation, 
integrated pest management, 
and fertilizer application, 
we’ve been able to improve 
the yields of these mature 
fields.  And as we have 
opportunity, we plant new 
vineyards and orchards, as 
we’ve done recently with a 
new section of rubired grapes 
and a 300-acre pistachio 
orchard.  We are able to use 
new hybrid root stock, can 
space the plants for optimal 
growth, and integrate a drip 
irrigation system into the 
field that supplies the exact 
amount of water needed—
just when it’s needed.  All 
of these practices combined 
produce significantly better 
yields.  Our new vineyards, 
for example, are producing al-
most twice as much fruit per 
acre as those they replaced.

But having a successful and 
profitable farming opera-
tion involves more than just 
growing the crops.  They 
also must be sold.  To that 

Tejon Ranch’s Farming Division 
achieved record revenues in 2011 of 
$21 million.

Tejon Ranch Co.  Annual Report 2011  Shareholders Letter

 
 
 
Tejon Mountain Village, the excep-
tional mountain resort community 
being developed by the partnership 
of Tejon Ranch Company and 
DMB Pacific Ventures, will feature 
some dramatic landscapes.

on short, intermediate, and 
long-range horizons.  The 
fact that Tejon Ranch has no 
appreciable debt affords us 
the opportunity to have this 
long range vision.

I want to assure you the 
management of Tejon Ranch 
Company never loses sight of 
its stewardship responsibil-
ity.  We are both stewards 
of the remarkable landscape 
entrusted to our care, and 
stewards of your financial 
investment in the Company.  
We are committed to be-
ing good stewards in both 
regards, and appreciate your 
continued confidence and 
support as we endeavor to 
grow the Company—and 
shareholder value.  

Robert A. Stine
President & 
Chief Executive Officer

activity involves preparing 
the detailed engineering 
needed to begin phase one of 
construction.  We’re also pro-
cessing the remaining state 
and federal permits we need 
to move forward.  Meanwhile, 
attorneys for the partnership 
between Tejon Ranch Co. and 
DMB Pacific Ventures are 
monitoring the 5th District 
Court of Appeals awaiting 
word of the court’s decision 
regarding the continued legal 
challenge to the community’s 
environmental impact report.  
The Superior Court clearly 
affirmed the legality and 
sufficiency of the EIR and 
we are hopeful the appellate 
court will confirm the lower 
court’s decision.

There’s much more I could 
point to in terms of the 
diversity of our business 
operations, but as you can 
see from this small slice of  a 
typical day on Tejon Ranch, 
diversified is a very apt word to 
describe what and who we are 
as a company.

I n   c l o s i n g , you 
should also know that “diverse” 
also describes the manner in 
which we pursue our primary 
goal of building shareholder 
value.  Not only do we use 
diverse means, but we also 
have a diverse timeframe 
when it comes to creating 
value.  We have a long range 
vision and want to build en-
during value in the land and 
in the Company.  We are not 
interested in forfeiting long 
term growth for the sake of 
short term profit.  Accord-
ingly, as we analyze oppor-
tunities and plans, we focus 

Tejon Ranch Co.  Annual Report 2011  Shareholders Letter

11.

 
  
 
 
 
Year Ended December 31
2010
2011 

$  

18,372  
68,566  
7,832  
3,587  
4,317  
1,099 
 103,773 
128,430 
53,893  
28,336  
6,845  
699  
$   321,976  

 $  

2,447 
3,074 
 2,484  
2,125  
37  
10,167 

253  
2,664  
5,474  
2,979  

$  

22,027
48,985
9,812
2,982
5,011
 -
 88,817
 117,275
48,302
28,774
3,985
938
$   288,091

 $ 

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

290
2,277
3,196
1,519

9,988  
194,273  
(4,756)  
61,109  
260,614  
39,825  
300,439  
$   321,976  

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

C o n s o l i d a t e d   B a l a n c e   S h e e t s

($ 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  

Income taxes 
  Deferred income  
  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. stockholders’equity
  Common stock, $.50 par value per share:
  Authorized shares - 30,000,000

Issued and outstanding shares - 19,975,706 in 2011
and 19,747,470 in 2010  

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

Tejon Ranch Co. and Subsidiaries

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
C o n s o l i d a t e d   S t a t e m e n t s   o f   O p e r a t i o n s

($ 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 loss attributable to noncontrolling interests  
 Net income (loss) attributable to common stockholders  

 Net income (loss) attributable to common stockholders  

 Basic     
 Diluted  

2011 

25,952  
 16,134  
 21,012  
 63,098  

 13,430  
 3,942  
 12,575  
 12,277  
 42,224  
 20,874  

 1,260  
 98  
 -  
 1,358  

 22,232  

 916  
 23,148  
 7,367  
 15,781  
 (113) 
15,894  

0.80  
0.80  

 $ 

 $ 

$ 
$ 

C o n s o l i d a t e d   S t a t e m e n t s   o f   C o m p r e h e n s i v e   I n c o m e   ( L o s s )

($ in thousands) 
 Net income (loss)  

 Other comprehensive income (loss) :   
 Unrealized gains (losses) on available for sale   

securities 

 Benefit plan adjustments  
 SERP liability adjustment  
 Equity in other comprehensive income of   

 unconsolidated joint venture  

 Other comprehensive income (loss) before taxes  
 Provisions for income taxes related to other comprehensive   

income (loss) items 

 Other comprehensive income (loss)  

 Comprehensive income (loss)  
 Comprehensive income (loss) attributable to  

non-controlling interests  

 Comprehensive income (loss) attributable to  

common stockholders 

2011 
15,781  

$ 

 (82) 
 (2,574) 
 (1,825) 

 217  

 (4,264) 

 1,699  
 (2,565) 

 13,216  

 113  

$ 

 $ 

$ 
$ 

$ 

Year Ended December 31
2009

2010 

16,656  
281  
 18,576  
 35,513  

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

 979  
 61  
 (9) 
 1,031  

 6,270  

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

0.23  
0.22  

$ 

 $ 

$ 
$ 

14,996 
 272 
 12,983 
 28,251 

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

 1,640 
 45 
 (70)
 1,615 

 (6,161)

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

(0.19)
(0.19)

Year Ended December 31
2009
(3,433)

2010 
3,959  

$ 

(3) 
 (505) 
 578  

 (108) 

 (38) 

 (2) 
 (40) 

 3,919  

 216  

1,874 
 (573)
 110 

 (256)

 1,155 

 (509)
 646 

 (2,787)

 56 

 $ 

13,329  

$ 

4,135  

$  

 $(2,731)

Tejon Ranch Co. and Subsidiaries

13.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
C o n s o l i d a t e d   S t a t e m e n t s   o f   E q u i t y

Common   
  Stock Shares   
  Outstanding   

  16,986,770    
 -    

 -    

-    

-    

 -    

Common   
Stock   
 -    
 8,493    
 -    

 -    

 -    

 -    

 -    

    Additional   

    Accumulated   
Other   
Paid-In   Comprehensive   
Loss   
Capital   

    Total Tejon 
     Ranch Co.’s 
Retained    Stockholders’ 
Equity 
Earnings   

Non-    

controlling 
Interest 

Total 
Equity

 - 

 123,193    
 -    

 (2,797)   
 -    

44,417    
 (3,377)   

 173,306    
(3,377)   

 -      
 (56)    

173,306 
(3,433)

 -    

 -    

 -    

 1,128    

 (394)  

 66    

 -    

 -    

 -    

 1,128    

 -     

 1,128 

 (394)   

 -     

 (394)

 66    

 -     

 66 

 -    

 (154)  

 -    

 (154)   

 -     

 (154)

 11,858     
 26,636     
 -    
 (5,836)  
 -    
 17,019,428     
 -    

6    
13    
 -    
 (3)  
 -    
8,509     
 -    

 235    
 (13)  
 3,557    
 (143)  
 -    
126,829     
 -    

 -    

 -    

 -    

 -    

 -    

 -    

 -    

 -    

 -    

 -    
 2,608,735     

 -    
1,306    

 -    
 58,454    

78,894     
 56,131    
 -    
 (15,718)   
 19,747,470     
 -    

39     
 28     
 -    
(8)  
9,874    
 -    

1,960    
(28)  
 (2,944)  
 (455)   
 183,816     
 -    

 -    

 -    

 -    

 -    

 -    

 -    

 -    

 -    

 -    

 -    

 -    

 -    

 205,165     
 52,069     
 -    
 (28,998)   
 19,975,706    

103     
26    
 -    
(15)   
 9,988     

5,773    
 (26)   
 5,507    
(797)  
194,273     

 -    
 -    
 -    
 -    
 -    
(2,151)   
 -    

 (2)  

 (299)  

 330    

 (69)   
 -    

 -    
 -    
 -    
-    
(2,191)   
 -    

 (49)  

 (1,548)   

 (1,098)   

 130     
 -    

 -    
-    
 -    
 -    
(4,756)  

 -    
 -    
 -    
 -    
 -    
41,040     
 4,175     

 241    
 -    
 3,557    
 (146)   
 -     
174,227     
4,175    

 -     
 -     
 -      
 -     
40,210     
40,154     
 (216)    

 241 
 - 
3,557 
 (146)
40,210 
214,381 
3,959 

 (2)   

 (299)    

 330    

 (69)   
 59,760    

 1,999    
 -    
 (2,944)   
 (463)   
236,714     
15,894     

 (2)

(299)

330 

-      

 -      

 -      
 -     

(69)
 59,760 

 -     
 -      
 -      
 -      
39,938     
(113)    

 1,999 
- 
(2,944)
(463)
276,652 
15,781 

 -    

 -    

-    
 -    

 -    
 -    
 -    
 -    
45,215     
 15,894     

(49)   

 (49)

 (1,548)    

-      

(1,548)

 (1,098)   

 -     

 (1,098)

 130     
 -    

-     
 -     

 130 
 - 

-    

-    

-    
 -    

 -    
 -    
 -    
 -    
 61,109     

 5,876    
 -    
 5,507    
 (812)   
260,614     

 -     
 -     
 -      
 -      
39,825     

 5,876 
 - 
5,507 
(812)
300,439 

($ in thousands, except share information) 

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 

Exercise of stock options and  
no related tax benefit 
Restricted stock issuance 
Stock compensation 
Shares withheld for taxes 
Noncontrolling interest 
Balance, December 31, 2009 
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 

Rights Offering, net expenses 
Exercise of stock options and  
 related tax benefit of $204 

Restricted stock issuance 
Stock compensation 
Shares withheld for taxes 
Balance, December 31, 2010 
Net income 
Changes in unrealized losses on  

available-for-sale  
securities, net of taxes of $33 

Benefit plan adjustments,  
net of taxes of $1,026 
SERP liabiltity adjustment,  

net of taxes $727 

Equity in other comprehensive  

income of unconsolidated joint  
venture, net of taxes of $87 

Rights Offering, net expenses 
Exercise of stock options and  
 related tax benefit of $634 

Restricted stock issuance 
Stock compensation 
Shares withheld for taxes 
Balance, December 31, 2011 

Tejon Ranch Co. and Subsidiaries

 
 
 
 
 
   
   
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
   
   
   
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
   
   
   
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
   
   
 
  
 
 
 
 
 
 
 
 
   
   
   
 
 
 
    
 
 
 
 
 
 
 
 
 
 
 
   
   
   
 
   
   
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
C o n s o l i d a t e d   S t a t e m e n t s   o f   C a s h   F l o w s

($ in thousands) 
Operating Activities 
  Net income (loss) 
  Adjustments to reconcile net income (loss)  

to net cash provided by 
operating activities: 
  Depreciation and amortization 
  Deferred income taxes 
  Gain from sale of real estate 
  Gain from sale of easements 
  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 
Proceeds from sale of easements 

  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 
  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) 

2011 

Year Ended December 31
2009

2010 

$ 

15,781  

$ 

3,959  

 $ 

(3,433)

 4,270  
 (162) 
 (4,058) 
 (15,750) 
 60  
 528  
 -  
 -  

(916) 
5,340  
(634) 
 -  
 -  

2,510  
 2,515  
9,484  

 19,143  
 (39,448) 
 -  
 -  
 4,988  
 15,750  
 -  
 (13,649) 
 -  
 (4,457) 
 (495) 
(18,168) 

 -  
 -  
 (35) 
 -  
 5,876  
 (812) 
5,029  
(3,655) 
22,027  
18,372  

-    
5,002  

$ 

$ 
$ 

 $ 

 $ 
 $ 

2,317  
 (1,351) 
 (559) 
 -  
 145  
 800  
 -  
 -  

 (541) 
 (2,944) 
 (227) 
 -  
 1,440  

 (201) 
 361  
3,199  

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  

9  
875  

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

(374)
 3,557 
 - 
 662 
 - 

 (135)
 (2,018)
 1,361 

 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 

70 
(661)

 $ 

 $ 
 $ 

Tejon Ranch Co. and Subsidiaries

15.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
  
 
  
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
  
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
  
  
 
 
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
  
 
  
 
 
 
 
 
 
P e r f o r m a n c e   G r a p h

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

12.31.06

12.31.07

12.31.08

12.31.09

12.31.10

12.31.11

tejon ranch 

dj equity mkt 

 dj real estate

- Assumes $100 invested on December 31, 2006
- Total return assumes reinvestment of dividends 
- Fiscal year ending December 31

tejon ranch 
dj equity mkt 
dj real estate 

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% 

2011
-11.14%
1.34%
6.05%

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.

quarter	
First 
Second 
Third 
Fourth 

high	
$36.97 
$37.70 
$37.00 
$27.47 

2011	
low	
$25.24 
$32.31 
$23.71 
$22.80 

high		
$33.30 
$30.71 
$24.40 
$28.58 

2010
low
$29.06
$23.00
$21.15
$21.49

As of February 17, 2012, there were 380 owners of  record of our Common Stock. 

 
 
 
	
	
	
	
 
 
directors  

executive officers

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

John L. Goolsby 
Private Investments and Real Estate

Norman Metcalfe 
Real Estate and Investments

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

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

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

Daniel R. Tisch  
Managing Member, 
Tower View LLC, 
Investment Management

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

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

Gregory J. Tobias 
Vice President, 
General Counsel & Secretary

corporate directory

Corporate Office

Stock Transfer Agent & Registrar

Form 10-k

Tejon Ranch Company 
Post Office Box 1000 
4436 Lebec Road 
Tejon Ranch, 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

Computershare Shareowner Services LLC 
480 Washington Boulevard 
Jersey City, NJ 07310-1900

Auditors

Ernst & Young LLP

A copy of  this report and the Company’s 
Annual Report to the Securities and Ex-
change 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 
Tejon Ranch, California 93243

 
 
 
 
 
 
 
 
 
 
        
w w w. t e j o n r a n c h . c o m