Tejon Ranch Targets Cost Cuts and Recurring Cash Flow in Capital Shift

Tejon Ranch Co. plans to lower costs and convert assets into recurring cash flow as it adopts a more capital-light approach. Management said debt reduction would follow cash-generating activities.

The company is also reviewing discretionary spending. Grapevine, Centennial and Mountain Village are among the projects it is advancing.

Hard Rock Casino Tejon has broken ground on a 406-room hotel.

Tejon Ranch’s third-quarter revenue was $25 million, up 70.1% from a year earlier. GAAP earnings were $0.12 per share. The company’s third-quarter results also exceeded estimates for revenue and earnings per share.

Management said some of the improved results reflected nonrecurring crop insurance proceeds and pistachio price adjustments. It said results may fluctuate with agricultural and market conditions.