DAYTONA BEACH, Fla., Aug. 16 /PRNewswire-FirstCall/ -- Consolidated-Tomoka Land Co., (NYSE Amex: CTO) issued a press release on July 21, 2010, announcing its earnings for the second quarter and first six months of 2010. Subsequent to the press release management became aware of an accounting error with respect to 2009 second quarter land sales to Volusia County, primarily for right-of-way acquisition, and an unrecorded $1,125,000 commitment to fund a portion of the road construction costs. The appropriate accounting would have been to record the road construction contribution, as a reduction of the land sales price. The $1,125,000 funding commitment was previously disclosed in the Company's second quarter 2009 Form 10-Q and 2009 Form 10-K. After evaluating the quantitative and qualitative aspects of the misstatement in accordance with applicable guidance of the Securities and Exchange Commission, the Company determined the correction was not material to the quarters ended June 30, 2009 and 2010 and the year ended December 31, 2009. As a result, the accounting correction was made in the quarter ended June 30, 2010. The effect of the correction was to reduce revenues and profits from real estate sales by $1,125,000, in addition to reducing income tax expense and deferred income taxes by 405,000. The adjustment had the effect of decreasing net income by $720,000 during the quarter, equivalent to $.13 per share.

This press release sets forth the updated version of the previously announced earnings after taking into account the accounting error.

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 currently generates over $9 million annually before tax cash flow from its income property 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 quarter ended June 30, 2010, 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.

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,
                                              2010               2009


    REVENUES                            $2,682,061         $5,263,530
                                        ==========         ==========



    NET INCOME (LOSS)                    ($593,171)          $187,809
                                         =========           ========


    BASIC & DILUTED EARNINGS (LOSS) PER
     SHARE:
      NET INCOME (LOSS)                     ($0.10)             $0.03
                                            ======              =====



                                            SIX MONTHS ENDED
                                        JUNE 30,           JUNE 30,
                                              2010               2009


    REVENUES                            $6,387,940         $9,109,457
                                        ==========         ==========



    NET INCOME (LOSS)                    ($515,352)          $510,015
                                         =========           ========


    BASIC & DILUTED EARNINGS (LOSS) PER
     SHARE:
      NET INCOME (LOSS)                     ($0.09)             $0.09
                                            ======              =====

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

                                                      QUARTER ENDED
                                              JUNE 30,           JUNE 30,
                                                    2010               2009
    NET INCOME (LOSS)                            ($593,171)          $187,809

    ADD BACK:

        DEPRECIATION & AMORTIZATION                686,897            685,270

        DEFERRED TAXES                            (320,980)           260,631

    EARNINGS (LOSS) BEFORE DEPRECIATION,
     AMORTIZATION
         AND DEFERRED TAXES                    ($227,254)        $1,133,710

    BASIC WEIGHTED AVERAGE SHARES OUTSTANDING  5,723,872          5,723,268
                                               =========          =========

    BASIC EBDDT PER SHARE                         ($0.04)             $0.20
                                                  ======              =====



                                                  SIX MONTHS ENDED
                                              JUNE 30,           JUNE 30,
                                                    2010               2009
    NET INCOME (LOSS)                          ($515,352)          $510,015

    ADD BACK:

        DEPRECIATION & AMORTIZATION            1,379,800          1,368,157

        DEFERRED TAXES                          (322,158)           113,863

    EARNINGS (LOSS) BEFORE DEPRECIATION,
     AMORTIZATION
         AND DEFERRED TAXES                     $542,290         $1,992,035

    BASIC WEIGHTED AVERAGE SHARES OUTSTANDING  5,723,607          5,724,879
                                               =========          =========

    BASIC EBDDT PER SHARE                          $0.09              $0.35
                                                   =====              =====

    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

                                             (UNAUDITED)
                                               JUNE 30,        DECEMBER 31,
                                                     2010              2009
    ASSETS                                              $                 $
       Cash                                       116,175           266,669
       Investment Securities                      5,030,410         4,966,864
       Land and Development Costs                24,182,700        26,700,494
       Intangible Assets                          4,378,064         4,588,649
       Other Assets                               8,640,057         6,067,023
                                               42,347,406        42,589,699

      Property, Plant and Equipment:
       Land, Timber and Subsurface Interests     14,517,130        13,960,019
       Golf Buildings, Improvements and
        Equipment                              11,859,667        11,798,679
       Income Properties Land, Buildings and
        Improvements                          119,844,094       119,800,091
       Other Building, Equipment and Land
        Improvements                            3,262,345         3,262,345
        Total Property, Plant and Equipment    149,483,236       148,821,134
       Less, Accumulated Depreciation and
        Amortization                          (16,004,916)     (14,835,701)
        Net -Property, Plant and Equipment    133,478,320       133,985,433

          TOTAL ASSETS                        175,825,726       176,575,132

    LIABILITIES
       Accounts Payable                           512,719           864,186
       Accrued Liabilities                      8,603,871         7,385,250
       Accrued Stock Based Compensation           795,850         1,428,641
       Pension Liability                        1,418,138         1,377,719
       Deferred Income Taxes                   33,953,210        34,275,368
       Notes Payable                           13,087,562        13,210,389

          TOTAL LIABILITIES                    58,371,350        58,541,553

    SHAREHOLDERS' EQUITY
       Common Stock                             5,723,980         5,723,268
       Additional Paid in Capital               5,155,438         5,131,246
       Retained Earnings                      108,009,402       108,639,227
       Accumulated Other Comprehensive Loss     (1,434,444)       (1,460,162)

          TOTAL SHAREHOLDERS' EQUITY          117,454,376       118,033,579

          TOTAL LIABILITIES AND
          SHAREHOLDERS' EQUITY                175,825,726       176,575,132
                                              ===========       ===========

SOURCE Consolidated-Tomoka Land Co.