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Tejon Ranch Co.

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FY2014 Annual Report · Tejon Ranch Co.
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B U I L D I N G   T H E   L E G A C Y

A N N U A L   R E P O R T   2 0 1 4

F O U N D E R   O F   T E J O N   R A N C H

T O   O U R 

V A L U E D   S H A R E H O L D E R S

Annual Report 2014  

T E J O N   R A N C H   C O .

page one

As I reflect on my first full year as president and 

explorer, humanitarian, rancher, politician, and dip-

CEO of  Tejon Ranch Co., it’s clear that we’re not 

lomat—the friend of presidents—a man regarded as 

the same company we were a year ago.  It’s been a 

“Mr. California” during his lifetime.  

year of  change, progress, and accomplishment; a 

year of  expanded goals and making the transition 

We’ve highlighted just a few of  Beale’s exploits in 

into a fully integrated real estate development 

the pages of this annual report, but in pursuing 

company.  My first year at the helm of  Tejon 

adventure, wealth and status, Beale mirrored the 

Ranch Co. has also provided me the opportunity 

dreams of countless Americans of his day.  Al-

to learn more about the history of  the Ranch, 

though Beale’s ambition was large, it was not the sin-

and it’s interesting to see the many parallels be-

gular driving force of his life.  He was devoted to his 

tween the Tejon Ranch of  170 years ago and the 

family; was a friend to Native Americans; spoke out 

Tejon Ranch of  today.

about the mistreatment of the Chinese and African 

Americans and publicly called for them to be given 

The history of Tejon Ranch is a rich and storied 

the right to vote.  Beale was well-regarded by those 

one, and the same can certainly be said about the 

who worked for him.   

personal history of the Ranch’s founder, Edward 

Fitzgerald Beale.

But above all, Edward F. Beale was a man of action—

careful, measured action—but action nonetheless.  

Beale was described by his biographer, University 

Whether in concert with others or on his own initiative, 

of Toledo historian Gerald Thompson, as “a major 

Beale was willing to do what it took to pursue his dreams 

figure in the history of the American West.”  Even 

and vision.  He took control of his destiny. That was 

a cursory glance at Beale’s life and accomplishments 

his DNA.  More than a century-and-a-half later, I can 

confirm that assessment.   He was a naval officer, 

confidently say that is still the DNA of Tejon Ranch Co.

E D W A R D   F I T Z G E R A L D   B E A L E

December 1846

m o m e n t s   t h a t   m a d e   m r .   c a l i f o r n i a

War Hero

During the Mexican-American War, then-Navy midshipman Edward F. Beale and Kit Carson escaped through 
enemy lines during the battle of San Pasqual in order to bring reinforcements to help the besieged troops 
commanded by General Stephen W. Kearny.  The trip was dangerous and arduous and Beale spent many months 
recovering from the injuries he suffered.  But as a result of his bravery, Beale was recognized as a hero of that 
important battle.

 
page two

T E J O N   R A N C H   C O .

Annual Report 2014  

t o   o u r   v a l u e d   s h a r e h o l d e r s

A look back at 2014 provides many examples, begin-

opening.  The event sold out weeks in advance and all 

ning with the successful opening of the Outlets at 

told, we raised $100,000 for local charity groups in 

Tejon.  Based upon the very promising consumer and 

Los Angeles and Bakersfield through the event.

market research, and the great response we were seeing 

from the top brands in outlet retail, we decided to 

The Outlets at Tejon also demonstrates our growth 

move forward with the Outlets at Tejon in the first 

as a fully integrated real estate development company.  

quarter of 2013.  We broke ground in May of that 

Not only did we build the center, we are responsible 

year, went vertical in November, and opened to the 

for all the property management functions related to 

public ten months later—a remarkable achievement 

the center.  We are also in the planning and evaluation 

due in no small part to the cooperation and assistance 

process for a potential Phase II of the outlets, which 

of county government in business-friendly Kern 

would add another 160,000 square feet of space and 

County.  The 365,000 square-foot upscale outlet 

approximately 30 more tenants.

retail center opened 100% leased and saw more than 

200,000 shoppers pour into the center during its 

This joint venture development with The Rock-

four-day grand opening August 7-10, and business 

efeller Group is more than just a business venture 

has been strong ever since.  Our high-profile tenant 

for us.  It’s a physical opportunity to showcase the 

roster includes the only Pottery Barn outlet store in 

rugged elegance that’s an integral part of  the Tejon 

California, as well as apparel and accessories retailers 

Ranch brand.  Countless shoppers and merchants 

Michael Kors, Coach, Banana Republic, J. Crew, Nike, 

have reported to us that the Outlets at Tejon far ex-

Brooks Brothers, Polo, and dozens of others.  We are 

ceeded their expectations in terms of  the look and 

strong believers in supporting the community and 

feel and overall quality of  the center, describing 

used the opportunity of the grand opening to create 

it as more akin to a high-end lifestyle center in an 

a ticketed preview party the night before the official 

upscale neighborhood than to what they had envi-

July 1848

m o m e n t s   t h a t   m a d e   m r .   c a l i f o r n i a

Go ld  Bearer

In 1848, on his own initiative, Beale made the perilous journey across Mexico on horseback to bring news—and 
evidence—of  the discovery of gold in California back to the East Coast-- the first person to do so.  His efforts 
to promote California’s gold strike help spur the gold rush and led to one of the greatest mass migrations in 
American history.

Map of  Rancho El Tejon  circa 1865

 
Annual Report 2014  

T E J O N   R A N C H   C O .

page five

t o   o u r   v a l u e d   s h a r e h o l d e r s

sioned an outlet shopping center would be.  Those 

Tejon Mountain Village, one of three master planned 

same qualities led the San Fernando Valley Business 

residential communities we’re developing on the 

Journal to award the Outlets at Tejon a gold medal 

ranch.  We purchased our former partner’s interest in 

in the periodical’s 2015 Commercial Real Estate 

the joint venture development for $70 million, which 

Awards competition.  The Outlets at Tejon is the 

represents the value of the cash they put into the 

new benchmark for quality retail development in 

venture.  Tejon Mountain Village is a vital part of our 

our area and is a tangible example of  the Tejon 

residential real estate vision.  Fully entitled for 3,450 

Ranch brand in action.

residential units, 750 hotel keys and 160,000 square 

feet of commercial development-- and poised to enter 

The Outlets at Tejon is also serving as a catalyst for 

the next stages of implementation—we believed it 

other retail development within the Tejon Ranch 

was important that Tejon Ranch Co. lead the effort.  

Commerce Center.  Our joint-venture partnership 

In the last year we’ve put a new leadership team in 

with TA opened a Black Bear Diner, a sit down res-

place, updated our market and consumer research to 

taurant located between the outlet center and the TA 

be sure our development plan is based on what the 

Travel Center.  Nearby we’ve also constructed a multi-

consumer wants and is willing to buy, and are moving 

tenant building housing a Starbucks and a Pieology 

full steam ahead toward the eventual commencement 

Pizzeria, a quick-serve restaurant featuring flash-fired 

of construction.

artisan pizzas, and CKE corporate is also opening a 

Carl’s Jr. restaurant near the center.  A new gas station 

We also achieved a significant milestone with respect 

and convenience store are also under construction.

to Centennial, our master planned community located 

The desire to become a fully integrated real estate 

November 2014, with a unanimous vote, the Los An-

company led us in 2014 to acquire full ownership of 

geles County Board of Supervisors approved and di-

in the Los Angeles County portion of the ranch.  In 

May 1856

m o m e n t s   t h a t   m a d e   m r .   c a l i f o r n i a

General Beale

In 1852, Beale became California’s first superintendent of Indian Affairs.  His treatment of Native Americans 
during his tenure gained him the respect of tribes throughout the state. Following his controversial removal from 
office, Beale was appointed a brigadier general in the state militia to broker peace between tribes and settlers in 
the San Joaquin Valley, and in so doing, helped defuse a major uprising.  Though he was, by commission, a navy 
lieutenant, Beale liked the title “General,” and went by that designation the rest of his life.

The Outlets at Tejon  present day

page six

T E J O N   R A N C H   C O .

Annual Report 2014  

t o   o u r   v a l u e d   s h a r e h o l d e r s

rected the County Counsel’s office to prepare findings 

Our most recent master planned residential com-

and resolutions for a new Antelope Valley Area Plan, 

munity, which we’re labeling “Grapevine” for 

a plan designed to guide future development and con-

entitlement purposes, is the perfect complement to 

servation in that northern-most region of unincorpo-

the Tejon Ranch Commerce Center and the nearly 

rated Los Angeles County.  The Plan designates three 

4,000 jobs that already exist there.  Planned for the 

areas where future development would be directed.  

area at the base of the Grapevine, just south of the 

Known as Economic Opportunity Areas, these areas 

Commerce Center and along both the east and west 

contain the appropriate zoning designations needed 

sides of Interstate 5, we’re envisioning a series of 

for both residential, commercial and employment 

close-knit communities that will serve as a magnet 

development.  The western Economic Opportunity 

for residents both north and south who want to be 

Area is located along Highway 138 and encompasses 

both part of, and enjoy prime access to Tejon Ranch.  

the vast majority of Centennial’s proposed bounda-

These are separate but connected communities 

ries.  We are now moving forward with the prepara-

whose lifestyle reflects the interests and values of 

tion of a Specific Plan, the next step in the process 

the region’s rich agricultural heritage.  As currently 

towards receiving full entitlement to build.  It’s been 

planned, the communities of Grapevine at Tejon 

a long haul, but we’re pleased to see progress with 

Ranch will offer about 12,000 residential units in 

Centennial.  It’s worth the effort.  Throughout his 

total and approximately 10 million square feet of 

life and career, Edward Beale certainly demonstrated 

commercial development.  Critics of residential 

perseverance.  Given the complexities and challenges 

development often complain about the jobs-housing 

of modern real estate development in California, the 

balance being too heavily weighted on the housing 

ability and willingness to persevere is a requirement.  

side.  That’s not the case here.  The Tejon Ranch 

Centennial is a case in point.

Commerce Center already has a substantial job base 

and that number is expected to grow significantly 

January 1864

m o m e n t s   t h a t   m a d e   m r .   c a l i f o r n i a

Mo narch  of  All  He Surveyed

In 1861, President Abraham Lincoln appointed Beale surveyor general of California, and Beale eventually used 
his position—and the knowledge gained from it-- to secure title to Rancho El Tejon, and the three other land 
grants that today make up the modern Tejon Ranch.  It is said that Lincoln described his surveyor general as a 
“monarch of  all he surveyed.”

Tejon Mountain Village Area  present day

Annual Report 2014  

T E J O N   R A N C H   C O .

page ni ne

t o   o u r   v a l u e d   s h a r e h o l d e r s

over the years.  The communities of Grapevine will 

years we’ve been purchasing water for our future use—

provide much-needed housing where there currently 

or sale in the interim.  The water we’ve purchased will 

is none available.

ultimately be used to continue the development of our 

commercial/industrial land, residential development, 

As for the entitlement process for Grapevine, we 

and farming.  But until that water is needed for our in-

are currently finishing up the technical studies that 

ternal uses, we’ve begun selling portions of the water to 

will be part of Kern County’s draft environmental 

third party users on an annual basis.  In 2014, revenue 

impact report.  The County has been great to work 

from water sales was nearly $8 million.

with and its latest schedule calls for hearings before 

the Planning Commission and the Board of Super-

As we continue growing into a fully integrated 

visors before the end of the year.

real estate development company, we recognize the 

importance of  bringing the right talent on board 

General Beale was a big thinker, a visionary; but 

to help us advance and execute our business plan.  

someone who also knew that visions just don’t hap-

We’ve added senior staff  in the vital areas of  Real 

pen—they take planning and preparation.  He also 

Estate, Marketing, and Finance.  

understood that on the way toward realizing a vision, 

opportunities may arise that you must be ready to 

Let me share with you one final comparison with 

pursue.  Such is the case with our efforts in regards to 

Ranch founder General Beale.  He was, at heart, 

water acquisition and sales.  As the master developer 

an explorer.  Beale was all about discovering new 

of all that is Tejon Ranch, we’ve long understood the 

territory and experiencing different landscapes.  We 

importance of water to our business plan.  In addition 

think that spirit of discovery and connection to the 

to our groundwater assets and our long-term water 

land is a critical part of the Tejon Ranch experi-

contracts with various local water districts, in recent 

ence.  Those who have been here, who have seen the 

1870 - 1890

m o m e n t s   t h a t   m a d e   m r .   c a l i f o r n i a

Adventurer and Diplomat

In the 1870s and 80s,Beale devoted himself to a variety of projects, investments and adventures, including 
championing the effort to build a shipping canal through Central America.  All the while, he was expanding the 
sheep and cattle ranching business at Ranchos El Tejon, as it was called in those days.  Beale would eventually be 
named minister to Austria-Hungary by his old friend, President Ulysses S. Grant.

Site of  Grapevine Master Planned Community 
present day

page ten

T E J O N   R A N C H   C O .

Annual Report 2014  

t o   o u r   v a l u e d   s h a r e h o l d e r s

beautiful views and experienced Tejon’s remarkable 

Legacy and Providing for California’s Future” to a 

landscape—these are the people who understand 

single theme line of “Building the Legacy.”  That’s 

the value and exclusivity that will be part of calling 

what Tejon Ranch Co. is all about.  For the benefit of 

Tejon Ranch their home.  We believe it’s important 

you, our shareholders, we’re continuing to build upon 

for many more people to touch the ranch and have 

the remarkable legacy launched years ago by General 

those experiences, so we’re opening up the ranch and 

Edward Fitzgerald Beale.

developing an on-going series of events that will 

give people the opportunity to enjoy all that Tejon 

Thank you for your trust and confidence as together 

Ranch has to offer.  Through hunting programs, 

we share in the legacy of Tejon Ranch.

trail rides, hiking and mountain biking, outdoor 

dinners featuring Tejon Ranch wine and locally 

sourced ingredients, astronomy, concerts, opportuni-

ties with the Tejon Ranch Conservancy, and more—

Greg Bielli

we’ll be offering ways for people to experience and 

President and 

explore Tejon Ranch, just like General Beale did 

Chief Executive Officer

more than 150 years ago.  We certainly hope you’ll 

be able to join us for some of these events.

Tejon Ranch has a remarkable legacy, but it’s certainly 

not a finished one.  Our legacy is on-going and I’m 

convinced our best days are still ahead.  That’s why 

we’ve made a subtle change to our brand theme line.  

We’ve transitioned from “Preserving California’s 

present day

b u i l d i n g   t h e   l e g a c y

O ur  Missio n

Tejon Ranch Company 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.

State Water Project Through Tejon  present day

page twelve

T E J O N   R A N C H   C O .

Annual Report 2014  

Annual Report 2014  

T E J O N   R A N C H   C O .

page thirteen

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

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

($ in thousands) 
A s s e t 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 $77,131 at December 31,

2014 and $74,726 at December 31, 2013, attributable to Centennial Founders LLC, Note 17) 

Investments in unconsolidated joint ventures 
Long-term water assets 
Long-term deferred tax assets 
Other assets 
Total assets 

L i a b i l i t i e s   a n d   E q u i t y  
Current Liabilities: 

  Trade accounts payable 
  Accrued liabilities and other 

Income taxes payable 

  Deferred income 
  Revolving line of credit 
  Current maturities of long-term debt 

Total current liabilities 

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

  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 - 20,636,478 at December 31, 2014 and 20,563,023 at December 31, 2013   

  Additional paid-in capital 
  Accumulated other comprehensive loss 
  Retained earnings 

  Total Tejon Ranch Co. Stockholders’ Equity 
  Non-controlling interest 
  Total equity 
  Total liabilities and equity 

$  

2014 

5,638  
42,140  
8,506  
4,098  
4,456  
1,089  
65,927  

282,974  
32,604  
45,349  
3,487  
1,774  
$   432,115  

$  

3,347  
2,774  
1,703 
1,164 
6,850  
244  
16,082  

74,215  
3,683  
13,802  
107,782  

December 31
2013

$  

9,031
55,436
7,108
3,510
7,707
452
83,244

146,542
62,604
46,754
1,592
2,143
$   342,879

$  

5,028
2,647
 —
 865
—
234
8,774

4,459
2,248
7,211
22,692

10,318  
212,763  
(6,899)  
68,439  
284,621  
39,712  
324,333  
$   432,115  

10,282
210,848
(3,333)
62,785
280,582
39,605
320,187
$   342,879

($ in thousands, except per share amounts) 
R e v e n u e s :    
  Real estate - commercial/industrial  
  Real estate - resort/residential  
  Mineral resources  

Farming  
  Total revenues  

C o s t s   a n d   E x p e n s e s :  
  Real estate - commercial/industrial  
  Real estate - resort/residential  
  Mineral resources  

Farming  

  Corporate expenses  
  Total expenses  
Operating income  

O t h e r   I n c o m e :  
Investment income  
Interest 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 income/(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  

2014 

11,379  
183  
16,255  
23,435  
51,252  

13,204  
2,608  
6,418  
16,250 
10,646  
49,126  
2,126  

696  
—  
343  
1,039  

3,165  
5,294  
8,459  
2,697  
5,762  
107  
5,655  

0.27  

0.27  

$  

$  

$  

$  

Year Ended December 31
2012
2013 

$  

$  

$  

$  

11,148  
338  
10,242  
23,610  
45,338  

12,902  
2,231 
1,277  
 15,926  
11,826  
44,162  
1,176  

941 
—  
66  
1,007  

2,183  
4,006  
6,189  
2,086  
4,103  
(62) 
4,165 

0.21  

0.20  

$  

 $  

$ 

$  

9,941
—
14,012
23,136
47,089

12,271
 3,697
1,042
14,387
12,564
43,961
3,128

 1,242
(12)
113
1,343

4,471
2,535
7,006
2,723
4,283
 (158)
4,441

 0.22

0.22

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  
  Other comprehensive income/(loss):

  Unrealized gains/(losses) on available for sale securities  

Benefit plan adjustments  
Benefit plan reclassification for losses included in net income  
SERP liability adjustments  

  Equity in other comprehensive income of unconsolidated joint venture 
  Unrealized interest rate swap losses  
  Other comprehensive income/(loss) before taxes  

(Provision) benefit for income taxes related to other

comprehensive loss items  
  Other comprehensive income/(loss)  

Comprehensive income  
Comprehensive income/(loss) attributable to non-controlling interests  
Comprehensive income attributable to common stockholders  

2014 
5,762  

$  

Year Ended December 31
2012
2013 
4,283
4,103  

$  

$  

(208)  
(3,168)  
407 
(1,003)  
 —  
(2,227)  
(6,199)  

2,644 
(3,555)  
2,207  
107 
$ 2,100  

(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

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
page fourteen

T E J O N   R A N C H   C O .

Annual Report 2014  

Annual Report 2014  

T E J O N   R A N C H   C O .

page fi fteen

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

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

Common   
  Stock Shares   
  Outstanding   

  19,975,706  
— 
—  

Common   
Stock   
 -    
9,988  
 — 
— 

$  

    Additional   

    Accumulated   
Other   
Paid-In   Comprehensive   
Capital   Income (Loss)   

Total 
Retained    Stockholders’ 
Equity 
Earnings   

Non-    

controlling 
Interest 

Total 
Equity

 - 
$   194,273  
 —  
 — 

  $ (4,756)   $   61,109  
4,441  
 —  

—  
 (362) 

$   260,614 
4,441  
(362)  

 $   39,825  
(158)  
— 

  300,439
4,283
 (362)

($ in thousands, except share information) 

Ba lanc e, Decembe r 31, 201 1  
Net income (loss)  
Other comprehensive income  
Exercise of stock options and related 

tax benefit of $8  
Restricted stock issuance  
Stock compensation  
Shares withheld for taxes and 

tax benefit of vested shares 
Ba lanc e, Decembe r 31, 201 2  
Net income  
Other comprehensive income  
Exercise of stock options and related  

13,641  
179,172  
—  

7  
89  
—  

363  
(89)  

5,832 

 (82,654)  
  20,085,865  

(41)  
10,043  

(2,262) 
  198,117  

tax benefit of $3  
Restricted stock issuance  
Common stock issued for water purchase   
Stock compensation  
Shares withheld for taxes and 

7,567  
391,555  
251,876  

4  
196  
126  

207  
(196) 
9,244  
1,223  

tax benefit of vested shares 

 (173,840) 

 (87)  

(4,677)  

Warrants issued as 

dividends (3,000,000 warrants)  
Ba lanc e, Decembe r 31, 201 3  
Net income  
Other comprehensive income  
Restricted stock issuance  
Stock compensation  
Shares withheld for taxes and 

tax benefit of vested shares  

Warrants exercised  
Balance, December 31, 2014  

—  
  20,563,023  
—  
—  
94,014  

—  
10,282  
—  
—  
47  

(20,559)  

(11)  

  20,636,478  

  $ 10,318  

6,930  
  210,848  
—  
—  
(47)  
2,564  

(603)  
1 
 $ 212,763  

— 
— 
 — 

 — 
(5,118)  
—  
1,785  

—  
 — 
—  
—  

—  

—  
(3,333)  
—  
(3,555)  
—  
—  

 —  
 — 
 — 

370 
 — 
 5,832 

 —  
 — 
 —  

370
 —
5,832

 — 
65,550  
4,165  
—  

 (2,303) 
  268,592  
4,165  
1,785 

 —  
39,667  
(62) 
 —  

(2,303)
  308,259
 4,103
1,785

—  
 —  
—  
—  

—  

211 
—  
9,370  
1,223  

(4,764) 

 — 
—  
—  
—  

 —  

 211
—
9,370
1,223

(4,764)

(6,930) 
62,785  
5,655  
—  
—  
—  

 — 
  280,582  
5,655  
(3,555) 
—  
2,564  

 — 
39,605  
107  
 —  
—  
—  

 —
  320,187
5,762
(3,555)
—
2,564

(11)  
 — 

  $ (6,899)  

—  
 (1)  
  $ 68,439  

(625)  
—  
 $ 284,621 

—  
—  
  $ 39,712 

(625)
—
  $ 324,333

($ in thousands) 
O p e r a t i n g   A c t i v i t i e s  
  Net income  
  Adjustments to reconcile net income to net cash provided by operating activities:

2014 

Year Ended December 31
2011

2013 

$  

5,762  

$  

4,103  

$  

4,283

  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 
  Deferred income taxes  

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, prepaids and other assets, net  
  Current liabilities, net  

Net cash provided by operating activities  

I n v e s t i n g   A c t i v i t i e s  
  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  
Investment in unconsolidated joint ventures  
Purchase of partner interest in TMV LLC  

  Distribution of equity from unconsolidated joint ventures  

Investments in long-term water assets 

  Other   
Net cash used in investing activities  

F i n a n c i n g   A c t i v i t i e s  
Borrowings of line of credit  
  Repayments of line of credit  
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  
Cash and cash equivalents at end of year  
S u p p l e m e n t a l   c a s h   f l o w   i n f o r m a t i o n  

Increase in construction in progress attributable to the reclassification of equity

in investment of TMV LLC  
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  

4,871  
769  
(5,294) 
164  
 —  
112 
3,534  
—  
— 

2,291  
1,009  
13,218  

20,844  
(8,525)  
 (24,775)  
—  
—  
—  
(9,656)  
(70,000)  
—  
 (480) 
—  
(92,592) 

31,050  
(24,200) 
 70,000  
 (244)  
—  
(625)  

75,981 
(3,393)  
9,031  
 5,638  

44,950  
1,096  
 — 
(2,384) 
—  

$ 

$  
$  
$ 
 $  
$  

4,226  
879  
 (4,006)  
865  
(46)  
 (8)  
929  
—  
 —  

3,712  
(1,118)  
9,536  

29,779  
(21,392)  
(21,558)  
512  
17,809  
—  
(3,415)  
—  
1,000  
 (9,635)  
(711)  
 (7,611)  

—  
 — 
4,750 
(310) 
211 
(4,764)  
 (113) 
1,812  
7,219  
9,031  

— 
2,058  
 — 
15  
9,370  

$  

$  
$  
 $ 
 $  
$  

4,954
874
(2,535)
1,047
(676)
1,810
5,440
8
7,200

(1,761)
(6,552)
14,092

19,809
(16,984)
(20,669)
—
—
—
(6,154)
—
1,512
(797)
10
(23,273)

1,500
 (1,500)
 —
 (39)
 370
(2,303)
 (1,972)
(11,153)
18,372
7,219

 —
 2,293
 913
4,021
 —

$  

 $ 
$ 
 $ 
$  
$ 

 
 
 
 
 
   
   
   
 
 
 
 
 
 
    
 
 
  
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
   
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
page sixteen

T E J O N   R A N C H   C O .

Annual Report 2014  

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

250.00

200.00

s
r
a
l
l
o
d

150.00

100.00

50.00

12.31.09

12.31.10

12.30.11

12.30.12

12.30.13

12.30.14

tejon ranch 

dj equity mkt 

 dj real estate

- Assumes $100 invested on December 31, 2009
- Total return assumes reinvestment of dividends 
- Fiscal year ending December 31

tejon ranch 
dj equity mkt 
dj real estate 

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% 

2014
-19.86%
12.48%
27.24%

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	
 $36.98  
 $35.23  
$33.08  
 $31.44  

2014	
low	
 $32.14  
 $29.54  
 $27.95  
 $27.86  

high		
 $30.81  
 $31.00  
 $34.23  
 $38.79  

2013
low
 $28.44 
 $26.66 
 $28.58 
 $29.49 

As of February 26, 2015, there were 321 registered owners of record of our Common Stock. 

e x e c u t i v e 
o f f i c e r s

Gregory S. Bielli
President and Chief Executive Officer

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

Joseph N. Rentfro
Executive Vice President,
Real Estate

Dennis J. Atkinson
Senior Vice President,
Agriculture

Hugh F. McMahon
Senior Vice President
Commercial and Industrial Real Estate

Gregory J. Tobias
Vice President,
General Counsel & Secretary

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

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

Frederick C. Tuomi
Chief Operating Officer,
Colony American Homes, Inc.

Daniel R. Tisch
Managing Member,
TowerView LLC,
Investment Management

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

d i r e c t o r s

Norman Metcalfe
Chairman of the Board,
Tejon Ranch Co.;
Real Estate and Investments

Robert A. Alter
President, 
Seaview Investors, LLC

Steven A. Betts
President,
Chanen Development Company

Gregory S. Bielli
President and Chief Executive Officer,
Tejon Ranch Co.

John L. Goolsby
Private Investments and Real Estate

Anthony L. Leggio
President,
Bolthouse Properties LLC

c o r p o r a t e 
d i r e c t o r y

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

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