Y O U R B R A N D O F O P P O R T U N I T Y
w w w. t e j o n r a n c h . c o m
TEJON RANCH CO MPA NY
2 01 3 A N N UA L R E P O R T
Tejon Ranch, California 93243
Post Office Box 1000
Tejon Ranch Company
to the Corporate Secretary:
any stockholder submitting a written request
exhibits, will be provided without charge to
change Commission on Form 10-k, without
Annual Report to the Securities and Ex-
A copy of this report and the Company’s
Computershare Shareowner Services LLC
Jersey City, NJ 07310-1900
480 Washington Boulevard
Ernst & Young LLP
under the ticker symbol: TRC
the New York Stock Exchange
Common Stock is listed on
Tejon Ranch Company
Auditors
Securities Listing
Telephone: (661) 248-3000
Tejon Ranch, California 93243
4436 Lebec Road
Post Office Box 1000
Tejon Ranch Company
Corporate Directory
Form 10-k
Stock Transfer Agent & Registrar
Corporate Office
99108_Tejon 2013 Cover Final6_R2.indd 1
3/17/14 5:07 PM
Di rectors
Executive Of ficer s
President and Chief Executive Officer,
Robert A. Stine
Kent G. Snyder
Chairman of the Board,
Tejon Ranch Company;
Real Estate Attorney
Gregory S. Bielli
Tejon Ranch Company
John L. Goolsby
Private Investments and Real Estate
Anthony L. Leggio
President,
Bolthouse Properties LLC
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
Retired 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
Gregory S. Bielli
President and
Chief Executive Officer
Allen E. Lyda
Executive Vice President,
Chief Financial Officer
and Assistant Secretary
Dennis J. Atkinson
Senior Vice President – Agriculture
Joseph E. Drew
Senior Vice President – Real Estate
Gregory J. Tobias
Vice President,
General Counsel & Secretary
Yo u r B r a n d
o f O p p o r t u n i t y
for future growth. Strategically
two additional master planned
located in the center of the state
communities in the process of
along interstate 5, California’s
being entitled. In addition, Tejon
The 270,000-acre Tejon Ranch
principal north-south highway.
Ranch operates a successful
is the largest contiguous piece
Tejon Ranch already boasts a
agribusiness and possesses oil and
of private property in the state
thriving commercial/industrial
other mineral assets.
of California. Owned by Tejon
center, a major upscale retail
Ranch Co., this historic land,
operation in the soon-to-open
which dates back to 1843, repre-
Outlets at Tejon, 26,000 acres of
sents an unparalleled opportunity
entitled land that will become
home to California’s finest resi-
dential/resort community, and
O n t h e C o v e r
Construction activity continues
on The Outlets at Tejon, with the
hills overlooking the new Grape-
vine master planned community
development area providing a
dramatic background.
99108_Tejon 2013 Cover Final6_R2.indd 2
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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 share-
holders. The Company’s Vision is guided by the Ranch’s historic core values of conservation
and good stewardship.
To Our Valued Shareholders
Gregory S. Bielli
President &
Chief Executive Officer
20 13 was a year o f g rowth, and
a year of transition for Tejon Ranch Company. The
growth was evident in several places. We began
construction on The Outlets at Tejon, the $90 million
outlet retail center we’re developing in partnership with
The Rockefeller Group. It is slated to open in August,
and at the time of this writing, everything is on track
in terms of construction and leasing. Interest in the
center is very strong from both a retailer and consumer
point of view, and we are confident it will open to
great crowds of shoppers.
With the filing of our application with Kern County,
we also initiated the formal entitlement process for a
third master planned community on Tejon Ranch.
Referred to in the planning documents as the
Grapevine Development Community, the approximate
8,000-acre mixed use community is planned for the
area of the ranch located along both sides of Interstate
5, adjacent to and just south of the Tejon Ranch
Commerce Center. It will consist of 12,000 residen-
tial units and 10.7 million square feet of commercial,
industrial, retail and institutional space. Designed as a
series of villages connected by an extensive trail system,
the new community will emphasize and embody sus-
tainability—from design and construction to the type
of lifestyle residents will enjoy.
In anticipation of Grapevine, and to serve other needs
on the Ranch, we solidified our water position in 2013
with the purchase of water rights to nearly 6,700 acre
feet of guaranteed water owned by the Nickel Family,
LLC. Given the tight water environment in California,
we’ve made similar acquisitions through the years in an
effort to build our water assets for both internal use
and investment purposes.
Late last year, we also received the final permit needed
to clear the way for the eventual construction of Tejon
Mountain Village. We’ve been working diligently with
our partners from DMB Pacific to finalize a develop-
ment and phasing plan for the community.
2013 was also a year of transition, evidenced by the
fact that I’m writing this as your new president and
Chief Executive Officer. Early in the year, Bob Stine
announced that he would be retiring at the end of
2013. His 17-year tenure at the helm of Tejon Ranch
Company is the longest in Company history. In a
“what have you done for me lately” world, Bob had the
unenviable task of transforming a company that was
primarily focused on ranching and farming into one
that was prepared and positioned to create long term
shareholder value. I can say without a doubt, he did
his job very well.
I am proud and humbled to follow in his footsteps.
As we made the transition at the end of the year and as
Bob handed over the reigns of the Company to me, we
had a chance to sit down and talk about his experiences
and impressions over the last 17 years of running the
Company, as well as the outlook for the future. I’d like
to take the remaining pages of this Annual Report to
share that conversation with you.
Thank you for your confidence and support. May
2014 be a year of growth and prosperity for us all.
Gregory S. Bielli
President & Chief Executive Officer
Tejon Ranch Co. Annual Report 2013 Shareholders Letter
3.
In the late 1990s, Tejon Ranch made
the strategic decision to divest itself
of its cattle operation, choosing to use
the capital necessary to operate such
a business in its real estate assets
instead. By leasing its land to outside
ranchers, Tejon has realized a more
stable income stream less subject to the
swings in revenue inherent in operating
a cattle business.
Almonds and pistachios continue to
provide significant revenue for Tejon
Ranch’s agribusiness operation. World-
wide demand for these high-margin
crops continues to grow.
In addition to almonds and pistachios,
Tejon Ranch also devotes substantial
acreage to the growing of wine grapes.
While most of the grapes are grown for
major wine producers in California,
Tejon Ranch is planning on producing
and marketing its own estate wine.
Questi ons & Answers
with Greg Bielli and Bob Stine—
Greg Bielli
Bob Stine
Gre g Bielli: Bob, when you arrived at Tejon Ranch in
1996, the Company was very different than it is today. Can
you describe Tejon Ranch Company 1996 versus Tejon Ranch
Company 2013?
Bob Stine: It’s a very different company. In 1996 it
was an agri-business company on the American Stock
Exchange with very little trading volume. The focus
of the Company was principally on the cattle business
and its farming activity. Today it’s a New York Stock
Exchange company, with significantly higher trading
volume. The Company now is focused on its land, its
real estate assets. Farming is still an important com-
ponent, but the Company has gotten heavily involved
in the water business, more active in oil and gas, and
is beginning to develop some of its real estate assets.
Its role in the cattle business is now as a lessor, with
no capital investment involved and with an income
stream that’s about the same as when we were actively
involved in running cattle. The Company and Board
of Directors are now much more real estate-oriented,
as opposed to 17 years ago.
Gre g Bielli: When the Board hired you, they gave you
a specific task: transform the company into an organization
that could unlock the value inherent in the land. How did you
go about accomplishing that?
Bob Stine: The first several months were spent
trying to understand the land. I spent a lot of time
out of the office with different managers, getting out
to different parts of the ranch, physically seeing what it
was like and learning about the different businesses we
were in. I determined fairly quickly, that from a long-
range point of view, we really didn’t want to be in the
cattle business. Considering the money tied up owning
the cattle, the risks of raising cattle, feeding the cattle,
selling the cattle and so forth, it didn’t make good
business sense. So, I took a number of months just to
get to understand the land and the company itself and
then we went about developing and building a business
plan. That began, obviously, with an annual budget,
but also included a five-year plan focused on where and
how we could unlock the inherent value in the land.
Gre g Bi elli: What do you think are the biggest chal-
lenges associated with doing business in California? And how
do those obstacles impact and influence value creation, and/or
could these obstacles really ultimately be opportunities for the
Company?
Bo b St ine: They’re definitely both—obstacles and
opportunities. In California, getting your land from
an existing “raw” condition to having it zoned and
permitted to be able to build something or to use it—
to put it to beneficial use—is extremely complicated. I
think it’s made even more challenging for Tejon Ranch
Company because, as the largest private land owner in
the state, we’ve become a large target—a bulls eye for
those who oppose any potential development. The
obstacles from a local, regional, and state standpoint,
as well as potential federal issues relating to the clean
water act, endangered species act or other kinds of
regulations, make land entitlement extremely compli-
cated, very expensive, and an extraordinarily lengthy
process. It’s taken us many, many years to get it done.
Given how difficult it is to entitle land in California,
the opportunity resides in the fact that we already have
several of our potential community or project areas
either fully entitled or are well under way. That means
we are that much closer to unlocking the value in the
land. Many real estate investors and home builders
don’t want to—or can’t—take the risk and the time to
invest in getting the land zoned. As a result, Califor-
nia’s regulatory environment creates a scarcity of land
that can be used to accommodate the state’s future
growth. Even though there’s a big push for urban
infill, and a certain amount of growth will certainly
occur there, and it should, not everyone wants to live
in dense, urban areas. Having entitled, or soon-to-be-
entitled land, in a state where buildable land is scarce,
is a real opportunity for Tejon Ranch.
6. Tejon Ranch Co. Annual Report 2013 Questions & Answers
In 2013, Tejon Ranch continued to in-
vest in its water infrastructure. Even
in the midst of drought conditions in
California, Tejon Ranch has the water
resources necessary for current and
future use.
7.
Continuing its real estate develop-
ment efforts in 2013, Tejon Ranch
initiated the formal entitlement
process for the Grapevine Develop-
ment Area. This 8,000-acre
master planned community will
provide much needed housing for the
thousands of employees at the Tejon
Ranch Commerce Center.
Tejon Ranch Co. Annual Report 2011 Shareholders Letter
We call the Tejon Ranch Commerce
Center “California’s Favorite
Stopping Center” for good reason.
Million of motorists stop there
every year. In fact, the Starbucks
at TRCC is one of the top five in
the country.
The Pastoria Energy Facility is a
great example of how Tejon Ranch
monetizes it land assets. The land
lease on this 31-acre site produces
millions of dollars in annual
revenue.
Gre g Bielli: Bob tell us about your first day in the
office. What was it like?
Bob Stine: Well, it was both exciting and awkward.
I arrived in my dark blue suit, that I had been wearing
for the previous 20-some years in business, with a crisp
white shirt and tie and I think the employees wondered
who the heck I was, and did I realize that I was at a
ranch?
Gre g Bielli: What do you consider to be the highlights
of your seventeen year career at Tejon Ranch?
Bob Stine: I think one would be the donation of
five hundred acres of our land for a new national cem-
etery. I think it was great the Company had the ability
to do that, given the amount of land that we own, and
it was a good thing from a patriotic standpoint. It also
demonstrated the values of the Company in that we
donated the land rather than trying to sell it. Another
would be the conservation agreement with the environ-
mental resource groups that proved to be an important,
major step in helping to unlock the value in the land.
We could move forward instead of spending years and
years, maybe decades, in litigation with environmental
groups. Additionally, I think attracting partners who
were willing to invest their money in our land, in both
our commercial and residential developments, would
also be a highlight.
Gre g Bielli: What do you think is the biggest miscon-
ception that people and/or investors have about Tejon Ranch?
Bob Stine: People in general, particularly those
who are driving back and forth on either a frequent
or infrequent basis on Interstate 5 over the Grapevine,
probably have little or no idea what Tejon Ranch is.
To them, it’s a sign on the Grapevine, they can see
some cattle, and now they can see development at the
base of the Grapevine, but I doubt the average person
knows very much about the company or the land and
its history. I think investors have developed a much
better understanding about the Company and its long-
run investment potential, because over the last ten to
fifteen years, starting with the Third Avenue Fund in
1997, we’ve attracted a lot of sophisticated institutional
investors. We have major investors who are very keen
on our oil potential and others on the land value po-
tential. I think it’s sometimes the smaller investor who
doesn’t have the resources to do the necessary home-
work or research that may have some misconceptions
about the Ranch, but I think the sophisticated ones
who have made major investments are probably pretty
knowledgeable about the company.
Gre g Bi elli: Bob, in your seventeen years at Tejon
Ranch, you have successfully put the company into a position
where it can create long-term shareholder value, now that
you’ve moved away from day-to-day management, but are
still remaining on the Board of Directors, what do you see to
be the future of Tejon Ranch from a Board perspective?
Bo b St ine: I think that my years as the CEO
could potentially be described as the entitlement years;
getting a business plan in place, putting the financial
house in order, and negotiating a conservation agree-
ment that allowed us to move forward with entitlement
on up to 30,000 acres. Some of it’s completed and
some of it’s coming down the home stretch. From the
Board’s perspective, Greg, I think you are arriving at
the beginning of the execution stage. We can see that
with The Outlets at Tejon currently under construction
and opening in August; we are also getting closer to
an actual development plan on Mountain Village, and
continuing to entitle the Grapevine and Centennial ar-
eas. We’re definitely in a transition from the entitlement
phase to the execution phase. It will be an exciting time
for our shareholders and the Board of Directors and
I’m confident in your ability to lead that process.
Tejon Ranch Co. Annual Report 2013 Questions & Answers
9.
Oil and gas production-and
revenue-has risen sharply in the
last decade. Tejon Ranch is also
seeing a marked increase in oil
exploration activities.
Gre g Bielli: Finally, Bob, what advice would you give
me as the incoming CEO?
Bo b St ine: Tell us about your background and experience
and how you believe it’s prepared you for this role?
Bob Stine: You’ve got a great team of people who
are committed to the business plan the Company
has developed. My guess is that during the execu-
tion phase, you may need to bring in some additional
experienced real estate people and I think you’re the
right person to find those people. You’re going to find
full support from your Board of Directors, and as you
personally transition from a private company to a pub-
lic one, just as I did 17 years ago, I would be diligent
in making sure you keep your Board informed so they
can provide the guidance and oversight the sharehold-
ers expect. And I hope you enjoy the journey as much
as I did.
Bob Stine: Greg, I think the Board made an excel-
lent choice in hiring you to be the next CEO of Tejon Ranch
Company. What attracted you to the position and the Company
in the first place?
Gre g Bielli: There are a number of reasons why
I thought becoming CEO of Tejon Ranch Company
would be the perfect job for me and why the Company
would be an ideal organization to work for, beginning
first with the diversity of its operations. From farming
and oil production to real estate development, Tejon
offered a tremendous professional opportunity. The
second reason would have to be the people. The Board
members who handled the search did so in a very
professional manner, and the many welcoming Tejon
staff members I met through the process impressed
me with their talents and character. I was also frankly
motivated by the opportunity, at this point in my
career, to establish my own legacy by continuing to
build upon Tejon Ranch Company’s rich legacy and
heritage, both as a publicly traded company and as a
California landmark.
Gre g Bi elli: I have been very fortunate in my
career to have many people help me along the way and
put me in positions, both in the private and public
sectors, to learn and grow. Professionally, my 25 years
in real estate, principally developing master planned
communities, has exposed me to many aspects of enti-
tling and executing major real estate projects. This will
be beneficial in regard to the entitlement efforts that
are still before us at the ranch, as well as those develop-
ment projects we’re in the process of executing—the
Tejon Ranch Commerce Center and The Outlets at
Tejon—or, in the case of Tejon Mountain Village,
those fully entitled developments we’re in the process
of positioning for future execution. With my extensive
public policy experience, from being an elected official
to participating in many public policy issues over the
years, I’ll be able to help the Company address those
problematic, complicated issues that are only becoming
increasingly more difficult to resolve.
Bo b St ine: You’ve only been here a few short months, but
what do you envision to be the short and long-range future of
Tejon Ranch?
Gre g Bi elli: In the short term, we need to
continue to focus on completing The Outlets at Tejon,
expand the opportunities at the Commerce Center,
invest in our agricultural business, support our oil
and gas lessees, and entitle our remaining communi-
ties. Long term, we’ll continue our investment in water
resources, expand and execute our real estate oppor-
tunities, support our existing team members and look
to expand our talent pool for the future. Bottom line,
we’ll always be looking for opportunities to grow our
brand and our business so that we’re continually
creating long-term value in the Company for the
benefit of our shareholders.
10. Tejon Ranch Co. Annual Report 2013 Questions & Answers
Con soli dated Balance Sheets
($ in thousands)
ASSET S
Current Assets:
Cash and cash equivalents
Marketable securities - available-for-sale
Accounts receivable
Inventories
Prepaid expenses and other current assets
Deferred tax assets
Total current assets
Property and equipment - net of depreciation
(includes $74,726 at December 31, 2013 and $72,115 at
December 31, 2012,
attributable to Centennial Founders LLC, Note 15)
Investments in unconsolidated joint ventures
Long-term water assets
Long-term deferred tax assets
Other assets
TOTAL AS S ETS
LIABILI TIES AN D EQU ITY
Current Liabilities:
Trade accounts payable
Accrued liabilities and other
Income taxes payable
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
Total liabilities
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 - 20,563,023 at December 31, 2013
and 20,085,865 at December 31, 2012
Additional paid-in capital
Accumulated other comprehensive loss
Retained earnings
Total Tejon Ranch Co. Stockholders’ Equity
Non-controlling interest
Total equity
TOTAL LIAB ILIT IES AN D E QU I T Y
12 Tejon Ranch Co. and Subsidiaries
december 31
2012
2013
$
9,031 $
55,436
7,108
3,510
7,707
452
83,244
7,219
65,049
8,768
3,839
4,881
997
90,753
146,542
62,604
46,754
1,592
2,143
146,590
54,022
28,565
5,376
2,550
$ 342,879 $ 327,856
$
5,028 $
2,647
—
865
234
8,774
4,459
2,248
6,518
693
22,692
3,845
2,132
—
1,195
41
7,213
212
2,248
6,508
3,416
19,597
10,043
10,282
198,117
210,848
(5,118)
(3,333)
65,550
62,785
268,592
280,582
39,667
39,605
320,187
308,259
$ 342,879 $ 327,856
Con soli dated Statements of O per ation s
($ in thousands, except per share amounts)
REV E NU ES
Real estate - commercial/industrial
Real estate - resort/residential
Mineral resources
Farming
Total revenues
CO STS AND EXPEN S ES :
Real estate - commercial/industrial
Real estate - resort/residential
Mineral resources
Farming
Corporate expenses
Total expenses
Operating income
OTH ER IN C OME:
Investment income
Interest income (expense)
Other income
Total other income
Income from operations before equity in earnings of unconsolidated joint ventures
Equity in earnings of unconsolidated joint ventures, net
Income before income tax expense
Income tax expense
Net income
Net loss attributable to non-controlling interest
Net income attributable to common stockholders
Net income per share attributable to common stockholders, basic
Net income per share attributable to common stockholders, diluted
$
$
$
year ended december 31
2011
2012
2013
$
11,148 $
1,266
10,242
22,682
45,338
9,941 $
583
14,012
22,553
47,089
13,746
16,134
12,206
21,012
63,098
13,221
3,942
209
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
12,902
3,351
462
14,806
12,641
44,162
1,176
12,271
4,761
334
13,323
13,272
43,961
3,128
941
—
66
1,007
2,183
4,006
6,189
2,086
4,103
(62)
4,165 $
0.21 $
0.20 $
1,242
(12)
113
1,343
4,471
2,535
7,006
2,723
4,283
(158)
4,441 $
0.22 $
0.22 $
Con soli dated Statements of Comprehensive In come
($ in thousands)
Net income
Other comprehensive income (loss):
Unrealized gains (losses) on available for sale securities
Benefit plan adjustments
SERP liability adjustments
Equity in other comprehensive income of unconsolidated joint venture
Other comprehensive loss before taxes
Benefit for income taxes related to other comprehensive loss items
Other comprehensive loss
Comprehensive income
Comprehensive loss attributable to non-controlling interests
Comprehensive income attributable to common stockholders
$
$
year ended december 31
2011
15,781
2012
4,283 $
2013
4,103 $
(348)
2,218
1,098
—
2,968
(1,183)
1,785
5,888
(62)
5,950 $
182
(922)
(12)
152
(600)
238
(362)
3,921
(158)
4,079 $
(82)
(2,574)
(1,825)
217
(4,264)
1,699
(2,565)
13,216
(113)
13,329
13.
Con soli dated S tatements o f Equity
Common
Stock Shares
Outstanding
Common
Stock
Other
Compre-
Additional
Paid-In
hensive
Capital Income (Loss)
Total
Retained Stockholders’
Equity
Earnings
Non-
controlling
Interest
Total
Equity
19,747,470 $
9,874 $ 183,816 $
(2,191) $ 45,215 $ 236,714 $ 39,938
—
—
—
(2,565)
15,894
—
15,894
(2,565)
276,652
15,781
(2,565)
(113)
—
($ in thousands, except share information)
Balance, December 31, 2010
Net income (loss)
Other comprehensive income
Exercise of stock options and
related tax benefit of $634
Restricted stock issuance
Stock compensation
Shares withheld for taxes
Balance, December 31, 2011
Net income
Other comprehensive income
Exercise of stock options and
related tax benefit of $8
Restricted stock issuance
Stock compensation
Shares withheld for taxes
Balance, December 31, 2012
Net income
Other comprehensive income
Exercise of stock options and
related tax benefit of $3
Restricted stock issuance
Common stock issued for
water purchase
Stock compensation
Shares withheld for taxes and
tax benefit of vested shares
Warrants issued as
—
—
205,165
52,069
—
(28,998)
19,975,706
—
—
13,641
179,172
—
(82,654)
20,085,865
—
—
7,567
391,555
251,876
—
—
—
103
26
—
(15)
5,773
(26)
5,507
(797)
9,988
—
—
194,273
—
—
7
89
—
(41)
363
(89)
5,832
(2,262)
10,043
—
—
198,117
—
—
4
196
126
—
207
(196)
9,244
1,223
(173,840)
(87)
(4,677)
—
—
—
—
(4,756)
—
(362)
—
—
—
—
(5,118)
—
1,785
—
—
—
—
61,109
4,441
—
—
—
—
—
65,550
4,165
—
5,876
—
5,507
(812)
260,614
4,441
(362)
370
—
5,832
(2,303)
268,592
4,165
1,785
—
—
—
—
39,825
(158)
—
—
—
—
—
39,667
(62)
—
5,876
—
5,507
(812)
300,439
4,283
(362)
370
—
5,832
(2,303)
308,259
4,103
1,785
—
—
—
—
—
—
—
—
211
—
9,370
1,223
(4,764)
—
—
—
—
211
—
9,370
1,223
(4,764)
—
—
(3,333) $ 62,785 $ 280,582 $ 39,605 $ 320,187
(6,930)
—
—
dividends (3,000,000 warrants)
—
—
6,930
Balance, December 31, 2013
20,563,023 $ 10,282 $ 210,848 $
14 Tejon Ranch Co. and Subsidiaries
Con soli dated Statements of Cash Flows
($ in thousands)
OPER ATING ACTI VITIE S
Net income
Adjustments to reconcile net income to net cash provided by
(used in) operating activities:
Depreciation and amortization
Amortization of premium/discount of marketable securities
Equity in earnings
Non-cash retirement plan expense
Gain on sale of real estate/assets
Gain on sale of easements
Deferred income taxes
Amortization of stock compensation expense
Excess tax benefit from stock-based compensation
Distribution of earnings from unconsolidated joint ventures
Changes in operating assets and liabilities:
Receivables, inventories and other assets, net
Current liabilities, net
Net cash provided by operating activities
IN V ES TIN G ACTIV I TI ES
Maturities and sales of marketable securities
Funds invested in marketable securities
Property and equipment expenditures
Reimbursement of outlet center costs
Reimbursement proceeds from Communities Facilities District
Proceeds from sale of real estate
Proceeds from sale of easements
Investment in unconsolidated joint ventures
Distribution of equity from unconsolidated joint ventures
Investments in long-term water assets
Other
Net cash used in investing activities
F INAN CIN G ACTI V ITIES
Borrowings of short-term debt
Repayments of short-term debt
Borrowings of long-term debt
Repayments of long-term debt
Proceeds from exercise of stock options
Taxes on vested stock grants
Net cash provided by (used in) financing activities
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
CA S H AN D CA S H EQUIVAL EN TS AT E N D OF Y E AR
S U PPLEM ENTA L CAS H FLOW INF ORM AT I ON
Accrued capital expenditures included in current liabilities
Sale of assets accounted as direct finance leases
Taxes paid (net of refunds)
Common stock issued for water purchase
twelve months ended december 31
2011
2012
2013
$
4,103 $
4,283 $ 15,781
4,226
879
(4,006)
865
(46)
—
(8)
929
—
—
4,954
874
(2,535)
1,047
(676)
—
1,810
5,440
8
7,200
3,629
641
(916)
528
(4,058)
(15,750)
(162)
5,340
(634)
—
3,712
(1,118)
9,536
(1,761)
(6,552)
14,092
2,570
2,515
9,484
29,779
(21,392)
(21,558)
512
17,809
—
—
(3,415)
1,000
(9,635)
(711)
(7,611)
19,809
19,143
(16,984) (39,448)
(20,669) (13,649)
—
—
4,988
15,750
(4,457)
—
—
(495)
(23,273) (18,168)
—
—
—
—
(6,154)
1,512
(797)
10
—
—
4,750
(310)
211
(4,764)
(113)
1,812
7,219
9,031 $
—
1,500
—
(1,500)
—
—
(35)
(39)
5,876
370
(812)
(2,303)
5,029
(1,972)
(3,655)
(11,153)
18,372
22,027
7,219 $ 18,372
2,058 $
— $
15 $
9,370 $
2,293 $
913 $
4,021 $
— $
590
—
5,002
—
$
$
$
$
$
15.
Pe rfor mance 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.
s
r
a
l
l
o
d
250
225
200
175
150
125
100
75
50
25
0
12/31/08
12/31/09
12/31/10
12/30/11
12/30/12
12/30/13
tejon ranch dj equity market d j real estate
- Assumes $100 invested on December 31, 2008
- Total return assumes reinvestment of dividends
- Fiscal year ending December 31
Tejon Ranch
DJ Equity Market
DJ Real Estate
2009
18.11%
28.59%
30.81%
2010
-5.72%
17.51%
26.93%
2011
-11.14%
1.07%
6.05%
2012
14.71%
16.38%
18.91%
2013
30.91%
33.47%
1.79%
The stock price performance depicted in the above graph is not necessarily indicative of future price per-
formance. 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
$30.81
$31.00
$34.23
$38.79
2013
low
$28.44
$26.66
$28.58
$29.49
high
$31.64
$30.94
$31.08
$30.78
2012
low
$24.33
$25.10
$25.25
$25.70
As of February 28, 2014, there were 342 registered owners of record of our Common Stock.
16 Tejon Ranch Co. and Subsidiaries
Directors
Executive Of ficers
Kent G. Snyder
Chairman of the Board,
Tejon Ranch Company;
Real Estate Attorney
Gregory S. Bielli
President and Chief Executive Officer,
Tejon Ranch Company
John L. Goolsby
Private Investments and Real Estate
Anthony L. Leggio
President,
Bolthouse Properties LLC
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
Retired 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
Gregory S. Bielli
President and
Chief Executive Officer
Allen E. Lyda
Executive Vice President,
Chief Financial Officer
and Assistant Secretary
Dennis J. Atkinson
Senior Vice President – Agriculture
Joseph E. Drew
Senior Vice President – Real Estate
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
Computershare Shareowner Services LLC
480 Washington Boulevard
Jersey City, NJ 07310-1900
Securities Listing
Auditors
Tejon Ranch Company
Common Stock is listed on
the New York Stock Exchange
under the ticker symbol: TRC
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
Yo u r B r a n d
o f O p p o r t u n i t y
for future growth. Strategically
two additional master planned
located in the center of the state
communities in the process of
along interstate 5, California’s
being entitled. In addition, Tejon
The 270,000-acre Tejon Ranch
principal north-south highway.
Ranch operates a successful
is the largest contiguous piece
Tejon Ranch already boasts a
agribusiness and possesses oil and
of private property in the state
thriving commercial/industrial
other mineral assets.
of California. Owned by Tejon
center, a major upscale retail
Ranch Co., this historic land,
operation in the soon-to-open
which dates back to 1843, repre-
Outlets at Tejon, 26,000 acres of
sents an unparalleled opportunity
entitled land that will become
home to California’s finest resi-
dential/resort community, and
O n t h e C o v e r
Construction activity continues
on The Outlets at Tejon, with the
hills overlooking the new Grape-
vine master planned community
development area providing a
dramatic background.
99108_Tejon 2013 Cover Final6_R2.indd 2
3/17/14 5:07 PM
Y O U R B R A N D O F O P P O R T U N I T Y
w w w. t e j o n r a n c h . c o m
T EJON RANCH COMPANY
2 01 3 A N N UA L R E P O R T
Tejon Ranch, California 93243
Post Office Box 1000
Tejon Ranch Company
to the Corporate Secretary:
any stockholder submitting a written request
exhibits, will be provided without charge to
change Commission on Form 10-k, without
Annual Report to the Securities and Ex-
A copy of this report and the Company’s
Computershare Shareowner Services LLC
Jersey City, NJ 07310-1900
480 Washington Boulevard
Ernst & Young LLP
under the ticker symbol: TRC
the New York Stock Exchange
Common Stock is listed on
Tejon Ranch Company
Auditors
Securities Listing
Telephone: (661) 248-3000
Tejon Ranch, California 93243
4436 Lebec Road
Post Office Box 1000
Tejon Ranch Company
Corporate Directory
Form 10-k
Stock Transfer Agent & Registrar
Corporate Office
99108_Tejon 2013 Cover Final6_R2.indd 1
3/17/14 5:07 PM