X
|
QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 FOR THE QUARTERLY PERIOD ENDED February 28, 2009
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934 FOR THE TRANSITION PERIOD FROM ______ TO
_____
|
Delaware
|
06-0868496
|
(state
or other jurisdiction of incorporation or organization)
|
(IRS
Employer Identification Number)
|
One
Rockefeller Plaza, New York, New York
|
10020
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Registrant’s
Telephone Number including Area Code
|
(212)
218-7910
|
Yes x
|
No
¨
|
Large
accelerated filer ¨
|
Accelerated
filer x
|
||
Non-accelerated
filer ¨
|
Smaller
reporting company ¨
|
Yes ¨
|
No x
|
PART
I -
|
FINANCIAL
INFORMATION
|
||
ITEM
1
|
Financial
Statements
|
||
Consolidated
Statements of Operations (unaudited)
|
|||
13
Weeks Ended February 28, 2009 and March 1, 2008
|
3
|
||
Consolidated
Balance Sheets (unaudited)
|
|||
February
28, 2009 and November 29, 2008
|
4
|
||
Consolidated
Statements of Changes in Stockholders’ Equity (unaudited)
|
|||
13
Weeks Ended February 28, 2009 and March 1, 2008
|
5
|
||
Consolidated
Statements of Cash Flows (unaudited)
|
|||
13
Weeks Ended February 28, 2009 and March 1, 2008
|
6
|
||
Notes
to Consolidated Financial Statements (unaudited)
|
7-20
|
||
ITEM
2
|
Management’s
Discussion and Analysis of
|
||
Financial
Condition and Results of Operations
|
21-28
|
||
ITEM
3
|
Quantitative
and Qualitative Disclosures About Market Risk
|
29
|
|
ITEM
4
|
Controls
and Procedures
|
29-30
|
|
PART
II -
|
OTHER
INFORMATION
|
||
ITEM
1
|
Not
Applicable
|
||
ITEM
1A
|
Risk
Factors
|
31
|
|
ITEMS
2-5
|
Not
Applicable
|
||
ITEM
6
|
Exhibits
|
31-33
|
|
SIGNATURES
|
34
|
PART
I
|
FINANCIAL
INFORMATION
|
ITEM
1.
|
FINANCIAL
STATEMENTS
|
For
the 13 Weeks Ended,
|
||||||||
February
28, 2009
|
March
1, 2008
|
|||||||
Landscape
nursery net sales
|
$ | 449 | $ | 424 | ||||
Rental
revenue and property sales
|
4,184 | 4,057 | ||||||
Total
revenue
|
4,633 | 4,481 | ||||||
Costs
of landscape nursery sales
|
419 | 438 | ||||||
Costs
related to rental revenue and property sales
|
3,478 | 3,471 | ||||||
Total
costs of goods sold and costs related to rental revenue and property
sales
|
3,897 | 3,909 | ||||||
Gross
profit
|
736 | 572 | ||||||
Selling,
general and administrative expenses
|
2,800 | 2,709 | ||||||
Operating
loss
|
(2,064 | ) | (2,137 | ) | ||||
Interest
expense
|
(808 | ) | (849 | ) | ||||
Investment
income
|
47 | 383 | ||||||
Loss
before income tax benefit
|
(2,825 | ) | (2,603 | ) | ||||
Income
tax benefit
|
(1,003 | ) | (994 | ) | ||||
Net
loss
|
$ | (1,822 | ) | $ | (1,609 | ) | ||
Basic
net loss per common share
|
$ | (0.36 | ) | $ | (0.32 | ) | ||
Diluted
net loss per common share
|
$ | (0.36 | ) | $ | (0.32 | ) |
February
28, 2009
|
November
29, 2008
|
|||||||
ASSETS
|
||||||||
Current
Assets:
|
||||||||
Cash
and cash equivalents
|
$ | 436 | $ | 4,773 | ||||
Short-term
investments, net
|
6,523 | 8,624 | ||||||
Accounts
receivable, less allowance of $139 and $148
|
1,316 | 2,071 | ||||||
Inventories,
net
|
27,940 | 24,347 | ||||||
Deferred
income taxes
|
4,405 | 3,447 | ||||||
Other
current assets
|
4,881 | 5,537 | ||||||
Total
current assets
|
45,501 | 48,799 | ||||||
Real
estate held for sale or lease, net
|
115,660 | 113,948 | ||||||
Property
and equipment, net
|
6,183 | 6,437 | ||||||
Investment
in Centaur Media, plc
|
1,454 | 3,374 | ||||||
Other
assets
|
10,291 | 9,117 | ||||||
Total
assets
|
$ | 179,089 | $ | 181,675 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
Current
Liabilities:
|
||||||||
Current
portion of long-term debt
|
$ | 8,650 | $ | 8,661 | ||||
Accounts
payable and accrued liabilities
|
7,464 | 5,240 | ||||||
Deferred
revenue
|
982 | 1,175 | ||||||
Total
current liabilities
|
17,096 | 15,076 | ||||||
Long-term
debt
|
39,551 | 39,855 | ||||||
Deferred
income taxes
|
476 | 1,257 | ||||||
Other
noncurrent liabilities
|
4,308 | 4,327 | ||||||
Total
liabilities
|
61,431 | 60,515 | ||||||
Commitments
and contingencies (Note 10)
|
||||||||
Stockholders'
Equity:
|
||||||||
Common
stock, par value $0.01 per share, 10,000,000 shares
|
||||||||
authorized,
5,463,429 and 5,455,382 shares issued,
|
||||||||
respectively,
and 5,076,463 and 5,068,416 shares outstanding,
|
||||||||
respectively
|
55 | 55 | ||||||
Additional
paid-in capital
|
104,192 | 103,997 | ||||||
Retained
earnings
|
27,558 | 29,888 | ||||||
Accumulated
other comprehensive (loss) income, net of tax
|
(721 | ) | 646 | |||||
Treasury
stock, at cost, 386,966 shares
|
(13,426 | ) | (13,426 | ) | ||||
Total
stockholders' equity
|
117,658 | 121,160 | ||||||
Total
liabilities and stockholders' equity
|
$ | 179,089 | $ | 181,675 |
Shares
of Common Stock Issued
|
Common
Stock
|
Additional Paid-in Capital
|
Retained
Earnings
|
Accumulated
Other Comprehensive (Loss) income
|
Treasury
Stock
|
Total
|
Total Comprehensive
Loss
|
|||||||||||||||||||||||||
Balance
at December 1, 2007
|
5,321,232 | $ | 53 | $ | 101,703 | $ | 40,199 | $ | 5,002 | $ | (8,054 | ) | $ | 138,903 | ||||||||||||||||||
Stock-based
compensation
|
||||||||||||||||||||||||||||||||
expense
|
- | - | 47 | - | - | - | 47 | |||||||||||||||||||||||||
Dividend
declared, $0.10 per
|
||||||||||||||||||||||||||||||||
share
|
- | - | - | (509 | ) | - | - | (509 | ) | |||||||||||||||||||||||
Net
loss
|
- | - | - | (1,609 | ) | - | - | (1,609 | ) | $ | (1,609 | ) | ||||||||||||||||||||
Other
comprehensive loss,
|
||||||||||||||||||||||||||||||||
from
Centaur Media, plc,
|
||||||||||||||||||||||||||||||||
net
of tax
|
- | - | - | - | (715 | ) | - | (715 | ) | (715 | ) | |||||||||||||||||||||
Balance
at March 1, 2008
|
5,321,232 | $ | 53 | $ | 101,750 | $ | 38,081 | $ | 4,287 | $ | (8,054 | ) | $ | 136,117 | $ | (2,324 | ) | |||||||||||||||
Balance
at November 29, 2008
|
5,455,382 | $ | 55 | $ | 103,997 | $ | 29,888 | $ | 646 | $ | (13,426 | ) | $ | 121,160 | ||||||||||||||||||
Exercise
of stock options
|
8,047 | - | 107 | - | - | - | 107 | |||||||||||||||||||||||||
Stock-based
compensation
|
||||||||||||||||||||||||||||||||
expense
|
- | - | 88 | - | - | - | 88 | |||||||||||||||||||||||||
Dividend
declared, $0.10 per
|
||||||||||||||||||||||||||||||||
share
|
- | - | - | (508 | ) | - | - | (508 | ) | |||||||||||||||||||||||
Net
loss
|
- | - | - | (1,822 | ) | - | - | (1,822 | ) | $ | (1,822 | ) | ||||||||||||||||||||
Other
comprehensive loss,
|
||||||||||||||||||||||||||||||||
from
cash flow hedging
|
||||||||||||||||||||||||||||||||
transaction,
net of tax
|
- | - | - | - | (119 | ) | - | (119 | ) | (119 | ) | |||||||||||||||||||||
Other
comprehensive loss,
|
||||||||||||||||||||||||||||||||
from
Centaur Media, plc,
|
||||||||||||||||||||||||||||||||
net of tax
|
- | - | - | - | (1,248 | ) | - | (1,248 | ) | (1,248 | ) | |||||||||||||||||||||
Balance
at February 28, 2009
|
5,463,429 | $ | 55 | $ | 104,192 | $ | 27,558 | $ | (721 | ) | $ | (13,426 | ) | $ | 117,658 | $ | (3,189 | ) | ||||||||||||||
See Notes to Consolidated Financial Statements. |
For
the 13 Weeks Ended,
|
||||||||
February
28, 2009
|
March
1, 2008
|
|||||||
Operating
activities:
|
||||||||
Net
loss
|
$ | (1,822 | ) | $ | (1,609 | ) | ||
Adjustments
to reconcile net loss to net cash
|
||||||||
used
in operating activities:
|
||||||||
Depreciation
and amortization
|
1,613 | 1,580 | ||||||
Deferred
income tax benefit
|
(1,003 | ) | (166 | ) | ||||
Stock-based
compensation expense
|
88 | 47 | ||||||
Change
in unrealized gains on trading securities
|
62 | (145 | ) | |||||
Amortization
of debt issuance costs
|
25 | 25 | ||||||
Gain
on sales of properties
|
- | (330 | ) | |||||
Provision
for bad debts
|
- | (19 | ) | |||||
Changes
in assets and liabilities:
|
||||||||
Short-term
investments
|
2,039 | 1,509 | ||||||
Accounts
receivable
|
755 | 847 | ||||||
Inventories
|
(3,593 | ) | (5,115 | ) | ||||
Other
current assets
|
656 | (259 | ) | |||||
Accounts
payable and accrued liabilities
|
1,323 | 1,086 | ||||||
Deferred
revenue
|
(309 | ) | (339 | ) | ||||
Other
noncurrent assets and noncurrent liabilities, net
|
(981 | ) | (351 | ) | ||||
Net
cash used in operating activities
|
(1,147 | ) | (3,239 | ) | ||||
Investing
activities:
|
||||||||
Additions
to real estate held for sale or lease
|
(1,998 | ) | (1,414 | ) | ||||
Additions
to property and equipment
|
(8 | ) | (165 | ) | ||||
Net
cash used in investing activities
|
(2,006 | ) | (1,579 | ) | ||||
Financing
activities:
|
||||||||
Dividends
paid to stockholders
|
(507 | ) | (509 | ) | ||||
Debt
issuance costs
|
(469 | ) | - | |||||
Payments
of debt
|
(315 | ) | (308 | ) | ||||
Exercise
of stock options
|
107 | - | ||||||
Net
cash used in financing activities
|
(1,184 | ) | (817 | ) | ||||
Net
decrease in cash and cash equivalents
|
(4,337 | ) | (5,635 | ) | ||||
Cash
and cash equivalents at beginning of period
|
4,773 | 11,120 | ||||||
Cash
and cash equivalents at end of period
|
$ | 436 | $ | 5,485 |
2.
|
Industry
Segment Information
|
For
the 13 Weeks Ended,
|
|||||||
February
28, 2009
|
March
1, 2008
|
||||||
Total
net sales and other revenue:
|
|||||||
Landscape
nursery net sales
|
$ | 449 | $ | 424 | |||
Rental
revenue and property sales
|
4,184 | 4,057 | |||||
$ | 4,633 | $ | 4,481 | ||||
Operating
(loss) profit:
|
|||||||
Landscape
nursery
|
$ | (850 | ) | $ | (971 | ) | |
Real
estate
|
6 | (68 | ) | ||||
Industry
segment totals
|
(844 | ) | (1,039 | ) | |||
General
corporate expense
|
(1,220 | ) | (1,098 | ) | |||
Operating
loss
|
(2,064 | ) | (2,137 | ) | |||
Interest
expense
|
(808 | ) | (849 | ) | |||
Investment
income
|
47 | 383 | |||||
Loss
before income tax benefit
|
$ | (2,825 | ) | $ | (2,603 | ) | |
Identifiable
assets:
|
February
28, 2009
|
November
29, 2008
|
|||||
Landscape
nursery
|
$ | 35,506 | $ | 32,984 | |||
Real
estate
|
127,823 | 125,611 | |||||
Industry
segment totals
|
163,329 | 158,595 | |||||
General
corporate
|
15,760 | 23,080 | |||||
Total
assets
|
$ | 179,089 | $ | 181,675 |
February
28, 2009
|
November
29, 2008
|
||||||
Nursery
stock
|
$ | 32,186 | $ | 30,051 | |||
Materials
and supplies
|
2,964 | 2,017 | |||||
35,150 | 32,068 | ||||||
Reserves
|
(7,210 | ) | (7,721 | ) | |||
$ | 27,940 | $ | 24,347 |
February
28, 2009
|
|||||||||||
Estimated Useful
Lives
|
Held
for Sale
|
Held
for Lease
|
Total
|
||||||||
Land
|
$ | 1,634 | $ | 7,770 | $ | 9,404 | |||||
Land
improvements
|
10
to 30 years
|
691 | 7,770 | 8,461 | |||||||
Buildings
and improvements
|
10
to 40 years
|
- | 103,659 | 103,659 | |||||||
Tenant
improvements
|
Shorter
of useful life or terms of related lease
|
- | 11,480 | 11,480 | |||||||
Development
costs
|
6,311 | 7,987 | 14,298 | ||||||||
8,636 | 138,666 | 147,302 | |||||||||
Accumulated
depreciation
|
- | (31,642 | ) | (31,642 | ) | ||||||
$ | 8,636 | $ | 107,024 | $ | 115,660 |
November
29, 2008
|
|||||||||||
Estimated Useful
Lives
|
Held
for Sale
|
Held
for Lease
|
Total
|
||||||||
Land
|
$ | 1,634 | $ | 7,770 | $ | 9,404 | |||||
Land
improvements
|
10
to 30 years
|
691 | 7,729 | 8,420 | |||||||
Buildings
and improvements
|
10
to 40 years
|
- | 103,651 | 103,651 | |||||||
Tenant
improvements
|
Shorter
of useful life or terms of related lease
|
- | 11,464 | 11,464 | |||||||
Development
costs
|
6,151 | 5,314 | 11,465 | ||||||||
8,476 | 135,928 | 144,404 | |||||||||
Accumulated
depreciation
|
- | (30,456 | ) | (30,456 | ) | ||||||
$ | 8,476 | $ | 105,472 | $ | 113,948 |
February
28, 2009
|
November
29, 2008
|
||||||||||||
Cost
|
Fair
Value
|
Cost
|
Fair
Value
|
||||||||||
U.S.
Treasury securities
|
$ | 6,508 | $ | 6,523 | $ | 8,433 | $ | 8,510 | |||||
Certificates
of deposit
|
- | - | 114 | 114 | |||||||||
Total
short-term investments
|
$ | 6,508 | $ | 6,523 | $ | 8,547 | $ | 8,624 |
|
For
the 13 Weeks Ended,
|
||||||||
February
28, 2009
|
March
1, 2008
|
|||||||
Interest
and dividend income
|
$ | 23 | $ | 37 | ||||
Net
realized gains on the sales of short-term investments
|
86 | 201 | ||||||
Changes
in unrealized gains on short-term investments
|
(62 | ) | 145 | |||||
$ | 47 | $ | 383 |
February
28, 2009
|
November
29, 2008
|
||||||
Nonrecourse
mortgages:
|
|||||||
8.54%,
due July 1, 2009
|
$ | 7,456 | $ | 7,482 | |||
6.08%,
due January 1, 2013
|
7,582 | 7,634 | |||||
6.30%,
due May 1, 2014
|
904 | 939 | |||||
5.73%,
due July 1, 2015
|
20,339 | 20,418 | |||||
8.13%,
due April 1, 2016
|
5,001 | 5,060 | |||||
7.0%,
due October 1, 2017
|
6,772 | 6,816 | |||||
Total
nonrecourse mortgages
|
48,054 | 48,349 | |||||
Capital
leases
|
147 | 167 | |||||
Total
|
48,201 | 48,516 | |||||
Less:
current portion
|
(8,650 | ) | (8,661 | ) | |||
Total
long-term debt
|
$ | 39,551 | $ | 39,855 |
For
the 13 Weeks Ended,
|
|||||||
February
28, 2009
|
March
1, 2008
|
||||||
Net
loss as reported for computation
|
|||||||
of basic and diluted per share results
|
$ | (1,822 | ) | $ | (1,609 | ) | |
Weighted
average shares outstanding for
|
|||||||
computation
of basic and diluted
|
|||||||
per
share results (a)
|
5,073,000 | 5,093,000 |
(a)
|
Incremental
shares from the assumed exercise of Griffin stock options are not included
in periods where the inclusion of such shares would be
anti-dilutive. The incremental shares from the assumed exercise
of stock options in the 2009 first quarter and 2008 first quarter would
have been 39,000 and 96,000, respectively.
|
For
the 13 Weeks Ended,
|
|||||
February
28, 2009
|
|
March
1, 2008
|
|||
Expected
volatility
|
37.7%
to 42.5%
|
41.1%
|
|||
Risk
free interest rate
|
1.6%
to 2.0%
|
3.5%
|
|||
Expected
option term
|
5
to 8.5 years
|
7
years
|
|||
Annual
dividend yield
|
$0.40
|
$0.40
|
For
the 13 Weeks Ended,
|
||||||||||||||||
February
28, 2009
|
March
1, 2008
|
|||||||||||||||
Vested
Options
|
Number
of Shares
|
Weighted
Avg. Exercise Price
|
Number
of Shares
|
Weighted
Avg. Exercise Price
|
||||||||||||
Outstanding
at beginning of period
|
89,368 | $ | 15.56 | 218,378 | $ | 14.13 | ||||||||||
Exercised
|
(8,047 | ) | $ | 13.25 | - | - | ||||||||||
Granted
and vested
|
1,749 | $ | 34.30 | - | - | |||||||||||
Outstanding
at end of period
|
83,070 | $ | 16.17 | 218,378 | $ | 14.13 |
Range
of Exercise Prices for Vested Options
|
Outstanding
at February 28, 2009
|
Weighted
Avg. Exercise Price
|
Weighted
Avg. Remaining Contractual Life
(in
years)
|
Total
Intrinsic Value
|
Total Fair Value
|
|||||||||||||
$11.00-$14.00 | 50,544 | $ | 11.99 |
1.7
|
$ | 722 | $ | 249 | ||||||||||
$15.00-$18.00 | 15,322 | $ | 16.80 | 2.6 | 145 | 98 | ||||||||||||
$24.00-$35.00 | 17,204 | $ | 27.90 | 5.9 | 11 | 239 | ||||||||||||
83,070 | $ | 16.17 | 2.7 | $ | 878 | $ | 586 |
For
the 13 Weeks Ended,
|
||||||||||||||||
February
28, 2009
|
March
1, 2008
|
|||||||||||||||
Nonvested
Options
|
Number
of Shares
|
Weighted
Avg. Exercise Price
|
Number
of Shares
|
Weighted
Avg. Exercise Price
|
||||||||||||
Nonvested
at beginning of period
|
40,684 | $ | 33.66 | 18,348 | $ | 32.62 | ||||||||||
Granted
|
60,000 | $ | 33.07 | 25,000 | $ | 34.04 | ||||||||||
Nonvested
at end of period
|
100,684 | $ | 33.31 | 43,348 | $ | 33.44 |
Range
of Exercise Prices for Nonvested Options
|
Outstanding
at February 28, 2009
|
Weighted
Avg. Exercise Price
|
Weighted
Avg. Remaining Contractual Life
(in
years)
|
Total Intrinsic Value
|
Total Fair Value
|
||||||||||||||
$30.00-$35.00 | 97,528 | $ | 33.16 | 9.1 | $ | - | $ | 1,384 | |||||||||||
Over
$35.00
|
3,156 | $ | 38.00 | 0.3 | - | 70 | |||||||||||||
100,684 | $ | 33.31 | 8.8 | $ | - | $ | 1,454 |
Number
of option holders at February 28, 2009
|
21
|
Balance
of Fiscal 2009
|
$
248
|
|||
Fiscal
2010
|
$
297
|
|||
Fiscal
2011
|
$
241
|
|||
Fiscal
2012
|
$
141
|
|||
Fiscal
2013
|
$ 56
|
|||
Fiscal
2014
|
$ 7
|
For
the 13 Weeks Ended,
|
|||||||||
February
28, 2009
|
March
1, 2008
|
||||||||
Balance
at beginning of period
|
$ | 646 | $ | 5,002 | |||||
Decrease
in fair value of Centaur Media, net of taxes of ($633)
|
|||||||||
and
($276), respectively
|
(1,176 | ) | (511 | ) | |||||
Decrease
in value of cash flow hedge, net of tax of ($64)
|
(119 | ) | - | ||||||
Decrease
in fair value of Centaur Media, due to exchange loss,
|
|||||||||
net
of taxes of ($39) and ($110), respectively
|
(72 | ) | (204 | ) | |||||
Balance
at end of period
|
$ | (721 | ) | $ | 4,287 | ||||
Accumulated
other comprehensive (loss) income is comprised of the
following:
|
|||||||||
February
28, 2009
|
November
29, 2008
|
||||||||
Change
in the value of Centaur Media, plc
|
$ | (786 | ) | $ | 462 | ||||
Change
in value of cash flow hedge
|
(119 | ) | - | ||||||
Actuarial
gain on postretirement benefit plan
|
184 | 184 | |||||||
$ | (721 | ) | $ | 646 |
Quoted
Prices in
|
Significant
|
Significant
|
||||||||
Active
Markets for
|
Observable
|
Unobservable
|
||||||||
Identical
Assets
|
Inputs
|
Inputs
|
||||||||
(Level
1)
|
(Level
2)
|
(Level
3)
|
||||||||
Trading
securities
|
$ | 6,523 | $ | - | $ | - | ||||
Available
for sale securities
|
$ | 1,454 | $ | - | $ | - | ||||
Interest
rate swap
|
$ | - | $ | (183 |
)
|
$ | - |
Quoted
Prices in
|
Significant
|
Significant
|
||||||||
Active
Markets for
|
Observable
|
Unobservable
|
||||||||
Identical
Assets
|
Inputs
|
Inputs
|
||||||||
(Level
1)
|
(Level
2)
|
(Level
3)
|
||||||||
Fixed
assets
|
$ | - | $ | - | $ | - | ||||
Severance
accrual
|
$ | - | $ | - | $ | (532 | ) | |||
Estimated Useful
Lives
|
February
28, 2009
|
November
29, 2009
|
|||||||
Land
|
$ | 715 | $ | 715 | |||||
Land
improvements
|
10
to 20 years
|
5,650 | 5,650 | ||||||
Buildings
and improvements
|
10
to 40 years
|
3,060 | 3,060 | ||||||
Machinery
and equipment
|
3
to 20 years
|
17,494 | 17,529 | ||||||
26,919 | 26,954 | ||||||||
Accumulated
depreciation
|
(20,736 | ) | (20,517 | ) | |||||
$ | 6,183 | $ | 6,437 |
ITEM
2.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL
|
CONDITION
AND RESULTS OF OPERATIONS
|
Total
Square
Footage
|
Square
Footage
Leased
|
Percentage
Leased
|
|||
As
of February 28, 2009
|
2,116,000
|
1,684,000
|
80%
|
||
As
of November 29, 2008
|
2,116,000
|
1,684,000
|
80%
|
||
As
of March 1, 2008
|
2,016,000
|
1,331,000
|
66%
|
2009
|
2008
|
|||||||||
First
Qtr.
|
First
Qtr.
|
|||||||||
(amounts
in thousands)
|
||||||||||
Rental
revenue
|
$ | 4,184 | $ | 3,636 | ||||||
Costs
related to rental revenue excluding
|
||||||||||
depreciation
and amortization expense (a)
|
(2,117 | ) | (2,153 | ) | ||||||
Profit
from leasing activities before general and
|
||||||||||
administrative
expenses and before depreciation
|
||||||||||
and
amortization expense (a)
|
2,067 | 1,483 | ||||||||
Revenue
from property sales
|
- | 421 | ||||||||
Costs
related to property sales
|
- | (91 | ) | |||||||
Gain
from property sales
|
- | 330 | ||||||||
Profit
from leasing activities and gain from property sales
|
||||||||||
before
general and administrative expenses and before
|
||||||||||
depreciation
and amortization expense (a)
|
2,067 | 1,813 | ||||||||
General
and administrative expenses excluding depreciation
|
||||||||||
and amortization expense (a)
|
(692 | ) | (645 | ) | ||||||
Profit
before depreciation and amortization expense
|
1,375 | 1,168 | ||||||||
Depreciation
and amortization expense related to costs of
|
||||||||||
rental revenue
|
(1,361 | ) | (1,227 | ) | ||||||
Depreciation
and amortization expense - other
|
(8 | ) | (9 | ) | ||||||
Operating
profit (loss)
|
$ | 6 | $ | (68 | ) |
(a)
|
The
costs related to rental revenue excluding depreciation and amortization
expense, profit from leasing activities before general and administrative
expenses and before depreciation and amortization expense, general and
administrative expenses excluding depreciation and amortization expense
and profit before depreciation and amortization expense are disclosures
not in conformity with accounting principles generally accepted in the
United State of America. They are presented because Griffin
believes they are useful financial indicators for measuring the results in
its real estate business segment. However, they should not be
considered as an alternative to operating profit as a measure of operating
results in accordance with accounting principles generally accepted in the
United States of America. The aggregate of: (i) costs related
to rental revenue excluding depreciation and amortization expense; (ii)
costs related to property sales; and (iii) depreciation and amortization
expense related to costs of rental revenue, equals the costs related to
rental revenue and property sales as reported on Griffin’s consolidated
statement of operations.
|
2009
|
2008
|
|||||||||
First
Qtr.
|
First
Qtr.
|
|||||||||
(amounts
in thousands)
|
||||||||||
Net
sales and other revenue
|
$ | 449 | $ | 424 | ||||||
Cost
of goods sold
|
419 | 438 | ||||||||
Gross
profit (loss)
|
30 | (14 | ) | |||||||
Selling,
general and administrative expenses
|
(880 | ) | (957 | ) | ||||||
Operating
loss
|
$ | (850 | ) | $ | (971 | ) |
Total
|
Due
Within One Year
|
Due
From 1-3 Years
|
Due
From 3-5 Years
|
Due
in More Than 5 Years
|
||||||||||||
(in
millions)
|
||||||||||||||||
Mortgages
|
$ | 63.1 | $ | 11.4 | $ | 7.4 | $ | 13.2 | $ | 31.1 | ||||||
Capital
Lease Obligations
|
0.2 | 0.1 | 0.1 | - | - | |||||||||||
Operating
Lease Obligations
|
1.0 | 0.2 | 0.5 | 0.3 | - | |||||||||||
Purchase
Obligations (1)
|
11.8 | 11.8 | - | - | - | |||||||||||
Other
(2)
|
1.6 | - | - | - | 1.6 | |||||||||||
$ | 77.7 | $ | 23.5 | $ | 8.0 | $ | 13.5 | $ | 32.7 |
(1)
|
Includes
obligations for the construction of the shell of a new industrial building
by Griffin Land and for the purchase of plants and raw materials by
Imperial.
|
(2)
|
Includes
Griffin’s deferred compensation plan and other postretirement benefit
liabilities.
|
ITEM
3.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
|
ITEM
4.
|
CONTROLS
AND PROCEDURES
|
PART
II
|
OTHER
INFORMATION
|
ITEM
1A.
|
RISK
FACTORS
|
ITEM
6.
|
EXHIBITS
|
|
Exhibit
No.
|
Description
|
|
3.1
|
Form
of Amended and Restated Certificate of Incorporation of Griffin Land &
Nurseries, Inc. (incorporated by reference to the Form 10 of Griffin Land
& Nurseries, Inc., filed April 8, 1997, as amended)
|
|
3.2
|
Form
of Bylaws of Griffin Land & Nurseries, Inc. (incorporated by reference
to the Form 10 of Griffin Land & Nurseries, Inc., filed April 8,
1997, as amended)
|
|
10.4
|
Form
of Agricultural Lease between Griffin Land & Nurseries, Inc. and
General Cigar Holdings, Inc. (incorporated by reference to the
Registration Statement on Form S-1 of General Cigar Holdings, Inc., filed
December 24, 1996, as amended)
|
|
10.6
|
Form
of 1997 Stock Option Plan of Griffin Land & Nurseries, Inc.
(incorporated by reference to the Form 10 of Griffin Land & Nurseries,
Inc., filed April 8, 1997, as amended)
|
|
10.7
|
Form
of 401(k) Plan of Griffin Land & Nurseries, Inc. (incorporated by
reference to the Form 10 of Griffin Land & Nurseries, Inc., filed
April 8, 1997, as amended)
|
|
10.17
|
Loan
Agreement dated June 24, 1999 (incorporated by reference to Form 10-Q
dated August 28, 1999, filed October 8, 1999)
|
|
10.21
|
Mortgage
Deed, Security Agreement, Financing Statement and Fixture Filing with
Absolute Assignment of Rents and Leases dated September 17, 2002 between
Tradeport Development I, LLC and Farm Bureau Life Insurance Company
(incorporated by reference to Form 10-Q dated August 31, 2002, filed
October 11, 2002)
|
|
10.22
|
Letter
of Agreement between Griffin Land & Nurseries, Inc. and USAA Real
Estate Company (incorporated by reference to Form 10-Q dated August 31,
2002, filed October 11, 2002)
|
|
10.23
|
Agreement
of Purchase and Sale of Partnership Interest between Griffin Land &
Nurseries, Inc. and USAA Real Estate Company dated December 3, 2002
(incorporated by reference to Form 10-K dated November 30, 2002, filed
February 28, 2003)
|
10.24
|
Mortgage
Deed and Security Agreement dated December 17, 2002 between Griffin Center
Development IV, LLC and Webster Bank (incorporated by reference to Form
10-K dated November 30, 2002, filed February 28, 2003)
|
|
10.28
|
Secured
Installment Note and First Amendment of Mortgage and Loan Documents dated
April 16, 2004 among Tradeport Development I, LLC, and Griffin Land &
Nurseries, Inc. and Farm Bureau Life Insurance Company (incorporated by
reference to Form 10-Q dated May 29, 2004, filed July 13,
2004)
|
|
10.29
|
Mortgage
Deed Security Agreement, Fixture Filing, Financing Statement and
Assignment of Leases and Rents dated July 6, 2005 by Tradeport Development
II, LLC in favor of First Sunamerica Life Insurance Company (incorporated
by reference to Form 10-Q dated May 28, 2005, filed on November 2,
2005)
|
|
10.30
|
Promissory
Note dated July 6, 2005 (incorporated by reference to Form 10-Q dated May
28, 2005, filed on November 2, 2005)
|
|
10.31
|
Guaranty
Agreement as of July 6, 2005 by Griffin Land & Nurseries, Inc. in
favor of Sunamerica Life Insurance Company (incorporated by reference to
Form 10-Q dated May 28, 2005, filed on November 2,
2005)
|
|
10.32
|
Amended
and Restated Mortgage Deed Security Agreement, Fixture Filing, Financing
Statement and Assignment of Leases and Rents dated November 16, 2006 by
Tradeport Development II, LLC in favor of First Sunamerica Life Insurance
Company (incorporated by reference to Form 10-K dated December 2, 2006,
filed February 15, 2007)
|
|
10.33
|
Amended
and Restated Promissory Note dated November 16, 2006 (incorporated by
reference to Form 10-K dated December 2, 2006, filed February 15,
2007)
|
|
10.34
|
Guaranty
Agreement as of November 16, 2006 by Griffin Land & Nurseries, Inc. in
favor of Sunamerica Life Insurance Company (incorporated by reference to
Form 10-K dated December 2, 2006, filed February 15,
2007)
|
|
10.35
|
Employment
Agreement by and between Imperial Nurseries, Inc. and Gregory Schaan dated
January 1, 2001, as amended April 9, 2008 (incorporated by reference to
Form 10-Q dated March 1, 2008, filed April 10, 2008)
|
|
10.36
*
|
Construction
Loan and Security Agreement dated February 6, 2009 by and between
Tradeport Development III, LLC, Griffin Land & Nurseries, Inc., and
Berkshire Bank
|
10.37
*
|
$12,000,000
Construction Note dated February 6, 2009
|
|
10.38
*
|
Revolving
Line of Credit Loan Agreement dated February 27, 2009 between Griffin Land
& Nurseries, Inc. and Doral Bank, FSB
|
|
10.39
*
|
$10,000,000
Promissory Note (Revolving Line of Credit) dated February 27,
2009
|
|
16.1
|
Letter
from PricewaterhouseCoopers LLP dated March 26, 2008 (incorporated by
reference to Form 8-K dated March 25, 2008, filed March 27,
2008)
|
|
21
|
Subsidiaries
of Griffin Land & Nurseries, Inc. (incorporated by reference to the
Form 10 of Griffin Land & Nurseries, Inc., filed April 8, 1997, as
amended)
|
|
31.1
*
|
Certifications
of Chief Executive Officer Pursuant to Rule 13a-14(a), as Adopted Pursuant
to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
31.2
*
|
Certifications
of Chief Financial Officer Pursuant to Rule 13a-14(a), as Adopted Pursuant
to Section 302 of the Sarbanes Oxley Act of 2002
|
|
32.1
*
|
Certifications
of Chief Executive Officer Pursuant to 18 U.S.C
|
|
Section
1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
||
32.2
*
|
Certifications
of Chief Financial Officer Pursuant to 18 U.S.C
|
|
Section
1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
GRIFFIN
LAND & NURSERIES, INC.
|
||
BY:
/s/
FREDERICK M. DANZIGER
|
||
Date: April
9, 2009
|
Frederick
M. Danziger
|
|
President
and Chief Executive Officer
|
||
BY: /s/ ANTHONY J.
GALICI
|
||
Date: April
9, 2009
|
Anthony
J. Galici
|
|
Vice
President, Chief Financial Officer and Secretary,
|
||
Chief
Accounting Officer
|