Consolidated-Tomoka Land Co.
Reports 2008 Earnings

DAYTONA BEACH, FLORIDA - Consolidated-Tomoka Land Co. (NYSE Alternext US:CTO) today reported net income of $4,834,900 or $0.84 earnings per basic share for the year ended December 31, 2008, and earnings before depreciation, amortization, and deferred taxes (EBDDT) of $7,924,025 or $1.38 per  share for such period.  The comparable numbers for 2007 were net income of $13,532,838 or $2.37 earnings per basic share and EBDDT of $19,390,631 or $3.39 per share.  For the three months ended December 31, 2008, net income totaled $2,402,338 or $0.42 earnings per basic share compared with net income of $10,898,146 or $1.91 earnings per basic share for the same period in 2007.
           
EBDDT is being provided to reflect the impact of the Company’s business strategy of investing in income properties utilizing tax deferred exchanges.  This strategy generates significant amounts of depreciation and deferred taxes.  The Company believes EBDDT is useful, along with net income, to understanding the Company’s operating results.  EBDDT for 2008 includes a reduction for deferred income taxes of $780,125 or $.14 per share associated with increased pension liabilities charged to shareholder equity.

            William H. McMunn, president and chief executive officer, stated, “I am pleased to report that the Company was profitable in 2008 despite lower real estate land sales.  Although our performance was lower compared to prior years, we believe our results were significantly better than most if not all of our industry peers.  We are well-positioned to remain profitable in 2009 and thereafter, despite the current downturn in the local and national real estate and financial markets. We do not foresee much improvement during the next twenty-four months.  In the interim, the Company will continue to minimize debt, manage our portfolio of income properties, complete current capital projects, and focus on enhancing shareholder value by pursuing new land entitlements in preparation of a return to a more predictable real estate market.”

About Consolidated-Tomoka Land Co.
Consolidated-Tomoka Land Co. is a Florida-based company primarily engaged in converting Company owned agricultural lands into a portfolio of net lease income properties strategically located in the Southeast, through the efficient utilization of 1031 tax-deferred exchanges.  The Company has low long-term debt and generates over $9 million in annual before tax cash flow from its real estate portfolio.  The Company also engages in selective self-development of targeted income properties. The Company’s adopted strategy is designed to provide the financial strength and cash flow to weather difficult real estate cycles.  Visit our website at www.ctlc.com.

 

“Safe Harbor”

Certain statements contained in this press release (other than statements of historical fact) are forward-looking statements.  The words “believe,” “estimate,” “expect,” “intend,” “anticipate,” “will,” “could,” “may,” “should,” “plan,” “potential,” “predict,” “forecast,” “project,” and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made.  Forward-looking statements are made based upon management’s expectations and beliefs concerning future developments and their potential effect upon the Company.  There can be no assurance that future developments will be in accordance with management’s expectations or that the effect of future developments on the Company will be those anticipated by management.

The Company wishes to caution readers that the assumptions which form the basis for forward-looking statements with respect to or that may impact earnings for the year ended December 31, 2008, and thereafter include many factors that are beyond the Company’s ability to control or estimate precisely.  These risks and uncertainties include, but are not limited to, the strength of the real estate market in the City of Daytona Beach in Volusia County, Florida; our ability to successfully execute acquisition or development strategies; any loss of key management personnel; changes in local, regional and national economic conditions affecting the real estate development business and income properties; the impact of environmental and land use regulations; the impact of competitive real estate activity; variability in quarterly results due to the unpredictable timing of land sales; the loss of any major income property tenants; and the availability of capital.  Additional information concerning these and other factors that could cause actual results to differ materially from those forward-looking statements is contained from time to time in the Company’s Securities and Exchange Commission filings, including, but not limited to, the Company’s Annual Report on Form 10-K. Copies of each filing may be obtained from the Company or the SEC.

While the Company periodically reassesses material trends and uncertainties affecting its results of operations and financial condition, the Company does not intend to review or revise any particular forward-looking statement referenced herein in light of future events.

 

Date: February 20, 2009
Contact: Bruce W. Teeters, Sr. Vice President
Phone: (386) 274-2202
Facsimile: (386) 274-1223