Consolidated Tomoka Announces Second Quarter Earnings

DAYTONA BEACH, Fla., July 16  /PRNewswire-FirstCall/ -- Consolidated-Tomoka Land Co. (NYSE Amex: CTO) today reported net income of $187,809 or $.03 earnings per basic share for the quarter ended June 30, 2009, compared with net income of $2,171,192 or $.38 earnings per basic share for the same period in 2008.  Earnings before depreciation, amortization and deferred taxes (EBDDT) totaled $.20 per basic share in 2009's second quarter, compared with $.71 per basic share in the corresponding period in 2008.  For the six months ended June 30, 2009, net income totaled $510,015 or $.09 earnings per basic share and EBDDT totaled $.35 per basic share.  The comparable numbers for the first six months of 2008 were net income of $2,327,316 or $.41 earnings per basic share and EBDDT of $.77 per basic share.

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.

William H. McMunn, president and chief executive officer, stated, "The Company was able to generate a profit for the quarter despite having only one land sale because of its established business plan. The plan emphasizes low debt and stable income produced by an income properties portfolio of net-lease credit tenants.  We believe our strategy, when compared to that of our peers, best protects long-term shareholder value.  Quarterly results were negatively impacted by increased proxy contest expenses and stock option expenses resulting primarily from our stock's price increase, which collectively totaled over $2.5 million, or approximately $.27 per basic share, net of tax, compared with 2008's same period. We believe that our Company is well-positioned to weather the current real estate and overall economic downturns. Management continues to position the Company for the eventual economic upturn by focusing on long-range land planning and land use improvements."

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 annually 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 http://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, 2009, 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; the impact of a prolonged recession or further downturn in economic conditions; 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.

Disclosures in this press release regarding the Company's current quarter's financial results are preliminary and are subject to change in connection with the Company's preparation and filing of its Form 10-Q for the quarter ended June 30, 2009.  The financial information in this release reflects the Company's preliminary results subject to completion of the quarterly review process.  The final results for the quarter may differ from the preliminary results discussed above due to factors that include, but are not limited to, risks associated with final review of the results and preparation of financial statements.

This release refers to certain non-GAAP financial measures.  As required by the SEC, the Company has provided a reconciliation of these measures to the most directly comparable GAAP measures with this release.  Non-GAAP measures as the Company has calculated them may not be comparable to similarly titled measures reported by other companies.

                            EARNINGS NEWS RELEASE

                                                 QUARTER ENDED
                                           JUNE 30,         JUNE 30,
                                             2009             2008


  REVENUES                                $5,263,530      $6,133,734



  NET INCOME                               $187,809       $2,171,192


  BASIC & DILUTED EARNINGS PER SHARE:
     NET INCOME                               $0.03            $0.38


                                               SIX MONTHS
                                                  ENDED
                                         JUNE 30,          JUNE 30,
                                           2009              2008


  REVENUES                               $9,109,457      $10,072,230


  NET INCOME                               $510,015       $2,327,316

  BASIC & DILUTED EARNINGS PER SHARE:
     NET INCOME                               $0.09            $0.41



  RECONCILIATION OF NET INCOME TO EARNINGS BEFORE
  DEPRECIATION,  AMORTIZATION AND DEFERRED TAXES

                                            QUARTER ENDED
                                     JUNE 30,           JUNE 30,
                                       2009               2008
  NET INCOME                         $187,809         $2,171,192

  ADD BACK:

      DEPRECIATION & AMORTIZATION     685,270            664,831

      DEFERRED TAXES                  260,631          1,248,616

  EARNINGS BEFORE DEPRECIATION,
   AMORTIZATION AND DEFERRED TAXES $1,133,710         $4,084,639

  BASIC WEIGHTED AVERAGE SHARES
   OUTSTANDING                      5,723,268          5,727,515

  BASIC EBDDT PER SHARE                 $0.20              $0.71


              RECONCILIATION OF NET INCOME TO EARNINGS BEFORE
               DEPRECIATION,  AMORTIZATION AND DEFERRED TAXES

                                         SIX MONTHS ENDED
                                     JUNE 30,           JUNE 30,
                                       2009               2008
  NET INCOME                         $510,015         $2,327,316

  ADD BACK:

      DEPRECIATION & AMORTIZATION   1,368,157          1,289,761

      DEFERRED TAXES                  113,863            815,599

  EARNINGS BEFORE DEPRECIATION,
   AMORTIZATION AND DEFERRED TAXES $1,992,035         $4,432,676

  BASIC WEIGHTED AVERAGE SHARES
   OUTSTANDING                      5,724,879          5,726,848

  BASIC EBDDT PER SHARE                 $0.35              $0.77


  EBDDT - EARNINGS BEFORE DEPRECIATION, AMORTIZATION, AND DEFERRED TAXES.
  EBDDT IS NOT A MEASURE OF OPERATING RESULTS OR CASH FLOWS FROM OPERATING
  ACTIVITIES AS DEFINED BY U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES.
  FURTHER, EBDDT IS NOT NECESSARILY INDICATIVE OF CASH AVAILABILITY TO FUND
  CASH NEEDS AND SHOULD NOT BE CONSIDERED AS AN ALTERNATIVE TO CASH FLOW AS
  A MEASURE OF LIQUIDITY.  THE COMPANY BELIEVES, HOWEVER, THAT EBDDT
  PROVIDES RELEVANT INFORMATION ABOUT OPERATIONS AND IS USEFUL, ALONG WITH
  NET INCOME, FOR AN UNDERSTANDING OF THE COMPANY'S OPERATING RESULTS.

  EBDDT IS CALCULATED BY ADDING DEPRECIATION, AMORTIZATION  AND THE CHANGE
  IN DEFERRED INCOME TAXES TO NET INCOME AS THEY REPRESENT NON-CASH CHARGES.



                              CONSOLIDATED BALANCE SHEETS

                                        JUNE 30,       DECEMBER 31,
                                         2009               2008
  ASSETS                              $               $
     Cash                                712,735            388,787
     Restricted Cash                          --            462,765
     Investment Securities             4,948,011          5,260,868
     Refundable Income Taxes             413,344                 --
     Notes Receivable                  4,003,693          4,153,693
     Land and Development Costs       19,821,489         18,973,138
     Intangible Assets                 4,799,234          5,009,819
     Other Assets                      5,661,464          6,048,126
                                      40,359,970         40,297,196

  Property, Plant & Equipment:
    Land, Timber and Subsurface
     Interests                        13,196,544          12,643,391
    Golf Buildings, Improvements
     & Equipment                      11,777,719         11,750,711
    Income Properties Land,
      Buildings & Improvements       119,285,746         116,517,534
    Other Building, Equipment and
     Land Improvements                 3,224,292          3,207,845
    Construction in Process                   --          1,217,549
      Total Property, Plant and
       Equipment                     147,484,301        145,337,030
    Less, Accumulated Depreciation
     and Amortization                (13,642,811)       (12,488,163)
     Net - Property, Plant and
      Equipment                      133,841,490        132,848,867

        TOTAL ASSETS                 174,201,460        173,146,063

  LIABILITIES
     Accounts Payable                    134,035            706,095
     Accrued Liabilities               7,408,839          7,204,749
     Accrued Stock Based Compensation  1,545,988          1,190,725
     Pension Liability                 2,847,605          3,127,230
     Income Taxes Payable                     --          1,236,206
     Deferred Income Taxes            33,430,299         33,316,436
     Notes Payable                    11,632,843          8,550,315

        TOTAL LIABILITIES             56,999,609         55,331,756

  SHAREHOLDERS' EQUITY
     Common Stock                      5,723,268          5,727,515
     Additional Paid in Capital        5,131,246          5,217,955
     Retained Earnings               108,920,998        109,556,103
     Accumulated Other Comprehensive
      Loss                            (2,573,661)        (2,687,266)

        TOTAL SHAREHOLDERS' EQUITY   117,201,851        117,814,307

        TOTAL LIABILITIES AND
         SHAREHOLDERS' EQUITY        174,201,460        173,146,063


DATASOURCE: Consolidated-Tomoka Land Co.



CONTACT:  Bruce W. Teeters, Sr. Vice President, Phone: [phone],

Facsimile: [phone]



Web Site:  http://www.ctlc.com/ 

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