NEW YORK, Oct. 8 /PRNewswire-FirstCall/ — Griffin Land & Nurseries,
Inc. (Nasdaq: GRIF) (”Griffin”) today reported a 2008 third quarter
operating loss of ($1,482,000) on total revenue of $7,864,000, as compared
to an operating profit of $1,686,000 on total revenue of $12,148,000 for
the 2007 third quarter. For the 2008 nine month period, Griffin reported an
operating loss of ($3,578,000) on total revenue of $33,409,000, as compared
to an operating profit of $7,409,000 on total revenue of $48,630,000 for
the 2007 nine month period. The lower net sales and lower operating results
in the 2008 third quarter and nine month period, versus the comparable 2007
periods, principally reflect the prior year results including revenue and
gains from significant property sales completed in those periods by Griffin
Land, Griffin’s Connecticut and Massachusetts based real estate business,
and greater operating losses incurred in the current year periods by
Imperial Nurseries, Inc. (”Imperial”), Griffin’s subsidiary in the
landscape nursery business. There were no property sales completed thus far
in fiscal 2008. Property sales occur periodically and changes in revenue
and gains from these transactions may not be indicative of any trends in
the real estate business.
Griffin reported a 2008 third quarter net loss of ($1,269,000) and a
basic and diluted net loss per share of ($0.25) as compared to 2007 third
quarter net income of $2,283,000 and basic and diluted net income per share
of $0.44 and $0.43, respectively. For the 2008 nine month period, Griffin
reported a net loss of ($3,255,000) and a basic and diluted net loss per
share of ($0.64) as compared to net income of $6,968,000 and basic and
diluted net income per share of $1.35 and $1.32, respectively, for the 2007
nine month period. The lower net income in the 2008 third quarter and nine
month period versus the comparable 2007 periods principally reflects the
effect of the lack of property sales at Griffin Land, lower operating
results at Imperial and the inclusion in last year’s results of gains on
the sale of a portion of Griffin’s common stock holdings of Centaur Media,
plc (”Centaur Media”) and dividend income from Shemin Nurseries Holding
Corp. (”SNHC”). Griffin has not sold any of its Centaur Media common stock
thus far this year nor has Griffin received any dividend income from SNHC.
Operating profit at Griffin Land was lower in the 2008 third quarter
and nine month period than the comparable 2007 periods due to the decrease
in revenue and gain from property sales. The 2007 third quarter and 2007
nine month period included revenue of $3.8 million and $13.9 million,
respectively, from property sales. The gain on property sales included in
Griffin Land’s 2007 third quarter and 2007 nine month period operating
profit was $2.9 million and $11.3 million, respectively. In the 2008 third
quarter and 2008 nine month period, revenue from property sales was $0.3
million and $1.1 million, respectively, and the gain on property sales in
those periods was $0.3 million and $0.9 million, respectively. The revenue
and gain from property sales in the 2008 third quarter and 2008 nine month
period principally reflects the recognition of previously deferred revenue
and gain on the sale of undeveloped land to Walgreen Co. which closed in
2006 and is being accounted for under the percentage of completion method.
Results of Griffin Land’s leasing operations improved in the 2008 third
quarter and 2008 nine month period over the comparable 2007 periods due
principally to an increase in rental revenue, as more space was leased in
Griffin Land’s light industrial and warehouse buildings in New England
Tradeport, Griffin Land’s industrial park in Windsor and East Granby,
Connecticut. Most of the new leasing took place in the latter part of last
year, with most of the additional space leased principally in two new
buildings completed and placed in service in the second half of 2007.
Market activity for leasing of industrial and office space softened in the
second half of last year and has not shown any meaningful recovery thus far
this year.
At Imperial, operating losses in the 2008 third quarter and 2008 nine
month period were greater than the operating losses incurred in the
comparable 2007 periods, reflecting lower gross profit in the current year
periods, partially offset by lower selling, general and administrative
expenses in the nine month period. The decrease in gross profit in the 2008
third quarter and 2008 nine month period versus the comparable 2007 periods
principally reflects lower sales volume and lower pricing, which may be a
result of the weakened economy this year, and increased delivery costs. The
lower selling, general and administrative expenses in the nine month period
principally reflect lower selling expense, related to the decline in sales,
and the inclusion in the 2007 nine month period of expenses related to a
lawsuit that was settled last year.
Griffin’s results in the 2007 third quarter and 2007 nine month period
included pretax gains of $0.5 million and $2.9 million, respectively, from
the sale of 1.2 million of the approximately 6.5 million shares of common
stock of Centaur Media that Griffin held. Griffin has not sold any of its
Centaur Media common stock thus far in fiscal 2008. Griffin’s results in
the 2007 third quarter and 2007 nine month period also included $1.6
million of investment income from a dividend received from Shemin Nurseries
Holding Corp. Griffin has not received any dividends from Shemin in fiscal
2008.
Griffin operates a real estate business, Griffin Land, and Imperial
Nurseries, its landscape nursery business. Griffin also has investments in
Centaur Media, a public company based in the United Kingdom and listed on
the London Stock Exchange, and Shemin Nurseries Holding Corp., a private
company that operates a landscape nursery distribution business through its
subsidiary, Shemin Nurseries, Inc.
Forward-Looking Statements:
This Press Release includes “forward-looking statements” within the
meaning of Section 27A of the Securities Act and Section 21E of the
Exchange Act. Although Griffin believes that its plans, intentions and
expectations reflected in such forward-looking statements are reasonable,
it can give no assurance that such plans, intentions or expectations will
be achieved. The projected information disclosed herein is based on
assumptions and estimates that, while considered reasonable by Griffin as
of the date hereof, are inherently subject to significant business,
economic, competitive and regulatory uncertainties and contingencies, many
of which are beyond the control of Griffin.
Griffin Land & Nurseries, Inc.
Consolidated Condensed Statements of Operations
(amounts in thousands, except per share data)
(unaudited)
Third Quarter Ended, Nine Months Ended,
Aug. 30, Sept. 1, Aug. 30, Sept. 1,
2008 2007 2008 2007
Revenue
Landscape nursery
net sales $3,824 $4,861 $21,301 $24,294
Rental revenue and
property sales 4,040 (1) 7,287 (1) 12,108 (1) 24,336 (1)
Total revenue 7,864 12,148 33,409 48,630
Operating profit
(loss):
Landscape nursery
business (1,096) (679) (1,250) (884)
Real estate
business 606 (2)(3) 3,192 (2)(3) 992 (2)(3) 11,701 (2)(3)
General corporate
expense
(992) (827) (3,320) (3,408)
Total operating
(loss) profit (1,482) 1,686 (3,578) 7,409
Gain on sale of
Centaur Media
common stock - 476 - 2,873
Interest expense (762) (793) (2,423) (2,339)
Investment income 106 2,105 (4) 675 3,018 (4)
(Loss) income
before taxes (2,138) 3,474 (5,326) 10,961
Income tax
(benefit)
provision (869) 1,191 (2,071) 3,993
Net (loss) income $(1,269) $2,283 $(3,255) $6,968
Basic net (loss)
income per common
share $(0.25) $0.44 $(0.64) $1.35
Diluted net (loss)
income per common
share $(0.25) $0.43 $(0.64) $1.32
Weighted average
common shares
outstanding
for computation
of basic per share
results 5,044 5,151 5,060 5,145
Weighted average
common shares
outstanding
for computation
of diluted per
share results 5,044 5,254 5,060 5,274
(1) Includes revenue from property sales of $0.3 million and $3.8 million
in the 2008 and 2007 third quarters, respectively, and $1.1 million
and $13.9 million in the 2008 and 2007 nine month periods,
respectively.
(2) Includes gain from property sales of $0.3 million and $2.9 million in
the 2008 and 2007 third quarters, respectively, and $0.9 million and
$11.3 million in the 2008 and 2007 nine month periods, respectively.
(3) Includes depreciation and amortization expense, principally related to
real estate properties, of $1.2 million and $1.1 million in the 2008
and 2007 third quarters, respectively, and $3.7 million and $3.3
million in the 2008 and 2007 nine month periods, respectively.
(4) Includes dividend income of $1.6 million from Griffin’s investment in
Shemin Nurseries Holding Corp. (”SNHC”). There were no dividends from
SNHC received in the first nine months of fiscal 2008.
See Also:
[Via Real Estate Newswire]
