NEW YORK, Feb. 10 /PRNewswire-FirstCall/ -- Griffin Land &
Nurseries, Inc. (NASDAQ:GRIF) ("Griffin") today reported a 2009
fourth quarter operating loss of ($971,000) on total revenue of
$7,084,000, as compared to an operating loss of ($7,625,000) on
total revenue of $11,137,000 for the 2008 fourth quarter. For the
2009 full year, Griffin reported an operating loss of ($5,360,000)
on total revenue of $39,199,000, as compared to an operating loss
of ($11,203,000) on total revenue of $44,546,000 for the 2008 full
year. Griffin reported a 2009 fourth quarter net loss of
($1,282,000) and a basic and diluted net loss per share of ($0.25)
as compared to a 2008 fourth quarter net loss of ($5,030,000) and a
basic and diluted net loss per share of ($0.99). For the 2009 full
year, Griffin reported a net loss of ($5,513,000) and a basic and
diluted net loss per share of ($1.09) as compared to a net loss of
($8,285,000) and a basic and diluted net loss per share of ($1.64)
for the 2008 full year. Total revenue and operating profit at
Griffin Land, Griffin's real estate business, decreased in the 2009
fourth quarter and 2009 full year versus the comparable 2008
periods, reflecting the absence of property sales in 2009. Revenue
from property sales was $3.5 million and $4.6 million in the 2008
fourth quarter and 2008 full year, respectively, and Griffin Land's
gain on property sales was $2.1 million and $3.0 million in the
2008 fourth quarter and 2008 full year, respectively. Partially
offsetting the lack of property sales in 2009 was an increase in
rental revenue and profit from Griffin Land's leasing operations in
the 2009 fourth quarter and 2009 full year. The increase in rental
revenue and profit from its leasing operations reflects Griffin
Land having more space leased during 2009 than 2008, including the
completion and lease commencement of a new approximate 304,000
square foot build-to-suit warehouse in New England Tradeport,
Griffin Land's industrial park in Windsor and East Granby,
Connecticut. Griffin's landscape nursery business, Imperial
Nurseries, Inc. ("Imperial"), had lower operating losses in the
2009 fourth quarter and 2009 full year as compared to the 2008
fourth quarter and 2008 full year due to inclusion in the 2008
fourth quarter of pretax charges totaling $8.9 million for the
shutdown of Imperial's Florida farm. Excluding that charge,
Imperial's operating loss in the 2009 fourth quarter was slightly
lower than the 2008 fourth quarter, however, Imperial's operating
loss for the 2009 full year was higher than the 2008 full year,
principally due to increased charges for unsaleable inventories,
which increased from $1.1 million in the 2008 full year to $2.1
million in the 2009 full year. Imperial's net sales and other
revenue declined in the 2009 fourth quarter and 2009 full year as
compared to the 2008 fourth quarter and 2008 full year due to lower
pricing in the current year and the effect on sales of closing the
Florida farm in 2009. The lower pricing is attributed to the weak
economy, particularly in the housing sector, which has led to an
oversupply of product in the marketplace, thus depressing prices as
growers attempt to reduce their inventories. As a result of
recently enacted legislation, Griffin expects to be able to carry
back its fiscal 2009 taxable loss five years (instead of two years
as was previously allowed). This change is expected to result in
Griffin receiving a tax refund of approximately $6.0 million in the
latter part of fiscal 2010. As previously reported, in January
2010, Griffin Land closed on the purchase of an approximate 120,000
square foot industrial building in Breinigsville, Pennsylvania. The
building was purchased for $6.4 million (before acquisition
expenses) and is under a full building lease, now extended through
December 2025, to Olympus Corporation of the Americas. Griffin Land
also recently closed on a $4.3 million nonrecourse mortgage on that
building. The mortgage has a fixed interest rate of 6.5% and a
ten-year term with payments based on a twenty-five year
amortization period. Griffin operates its real estate business,
Griffin Land, and Imperial, its landscape nursery business. Griffin
also has investments in Centaur Media plc, a public company based
in the United Kingdom and listed on the London Stock Exchange, and
Shemin Nurseries Holdings 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, particularly with respect to factors
described in Griffin's Securities and Exchange Commission filings,
including the "Business," "Risk Factors" and "Forward-Looking
Information" sections in Griffin's Annual Report on Form 10-K for
the fiscal year ended November 28, 2009. 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) Fourth Quarter Ended,
Fiscal Year Ended, -------------------- ----------------- Nov. 28,
Nov. 29, Nov. 28, Nov. 29, 2009 2008 2009 2008 --------- ---------
--------- --------- Revenue Landscape nursery net sales and other
revenue $2,524 $3,336 $22,069 $24,637 Rental revenue and property
sales 4,560(1) 7,801(1) 17,130(1) 19,909(1) ------- --------
-------- --------- Total revenue 7,084 11,137 39,199 44,546 -----
------ ------ ------ Operating (loss) profit: Landscape nursery
business (1,413)(2) (10,461)(3) (3,636)(2) (11,711)(3) Real estate
business 1,064 (1) 2,988 (1) 2,260 (1) 3,980 (1) General corporate
expense (622) (152) (3,984) (3,472) ---- ---- ------ ------ Total
operating loss (971) (7,625) (5,360) (11,203) Interest expense
(1,016) (838) (3,522) (3,261) Investment income 30 410 182 1,085 --
--- --- ----- Loss before taxes (1,957) (8,053) (8,700) (13,379)
Income tax benefit 675 3,023 3,187 5,094 --- ----- ----- ----- Net
loss $(1,282) $(5,030) $(5,513) $(8,285) ======= ======= =======
======= Basic net loss per common share $(0.25) $(0.99) $(1.09)
$(1.64) ====== ====== ====== ====== Diluted net loss per common
share $(0.25) $(0.99) $(1.09) $(1.64) ====== ====== ====== ======
Weighted average common shares outstanding for computation of basic
per share results 5,086 5,063 5,080 5,060 ===== ===== ===== =====
Weighted average common shares outstanding for computation of
diluted per share results 5,086 5,063 5,080 5,060 ===== ===== =====
===== (1) Revenue and operating profit at Griffin Land were as
follows: Fourth Quarter Ended, Fiscal Year Ended,
-------------------- ------------------ Nov. 28, Nov. 29, Nov. 28,
Nov. 29, 2009 2008 2009 2008 -------- -------- -------- ---------
Revenue from leasing operations $4,560 $4,321 $17,130 $15,348
Revenue from property sales - 3,480 - 4,561 ----- ----- ------
----- Total revenue at Griffin Land $4,560 $7,801 $17,130 $19,909
====== ====== ======= ======= Operating profit from leasing
operations $1,064 $931 $2,260 $1,020 Operating profit from property
sales - 2,057 - 2,960 ---- ----- ----- ----- Total operating profit
at Griffin Land $1,064 $2,988 $2,260 $3,980 ====== ====== ======
====== Operating profit from leasing operations includes
depreciation and amortization expense of $1.5 million and $1.4
million in the 2009 and 2008 fourth quarters, respectively, and
$5.6 million and $5.1 million in the 2009 and 2008 fiscal years,
respectively. (2) Includes charges for unsaleable inventories and
to increase inventory reserves of $0.8 million and $2.1 million in
the 2009 fourth quarter and 2009 fiscal year, respectively. (3)
Includes charges totaling $8.9 million for inventory reserves, the
write down of fixed assets and severance costs related to the
decision to shut down Imperial's farm in Quincy, Florida. The
shutdown of Imperial's operations at that facility was completed in
2009. DATASOURCE: Griffin Land & Nurseries, Inc. CONTACT:
Anthony Galici, Chief Financial Officer of Griffin Land &
Nurseries, Inc., +1-860-653-4541
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