PICO Holdings, Inc. News
PICO Holdings, Inc. Announces Results for the First Quarter of 2008
Commenting on the quarter, PICO's President and Chief Executive Officer,
"During the first quarter, winter weather delayed the construction of a surge tank, which was the final phase of the Fish Springs Ranch pipeline project to deliver 8,000 acre-feet of water annually to the northern valleys of
"In western
"Vidler has submitted additional hydro-geological studies to support applications for new water rights in the Tule Desert Groundwater Basin, which were jointly filed by Vidler and the Lincoln County Water District. We expect a decision on the award of further water rights later in 2008.
"In the Real Estate Operations segment, we activated a new business, Union Community Partners, LLC, during the first quarter. UCP aims to acquire attractive, well-located finished lots, partially-developed lots, and un- entitled land in select
"In April, we sold our 22.5% interest in Jungfraubahn Holding AG for net proceeds of
"As a result of purchasing our holding in Jungfraubahn at an attractive valuation, and Jungfraubahn's improved operating and financial performance, assisted in part by our participation on the Board, we estimate that we realized a total annual compound rate of return of approximately 20%, in U.S. dollar terms including dividends received, over the 12 year period since we first started to acquire our interest.
"Our decision to redeploy our capital was based in part on the opportunities that we continue to see in our core water and land businesses.
"The sale of Jungfraubahn will be recorded in the second quarter of our 2008 financial year, ending
NET BOOK VALUE
The following summary is provided as a supplement to the financial statements contained in PICO's 10-Q, to illustrate the relative size of the Company's assets and activities.
Segment Net Book Value Percentage Water Resource and Water Storage $201.8 million 38.4% Real Estate Operations 73.5 million 14.0% Business Acquisitions and Financing Operations 144.6 million 27.6% Insurance Operations in \"Run Off\" 105.2 million 20.0% Shareholders' Equity $525.1 million 100.0%
FIRST QUARTER SEGMENT RESULTS OF OPERATIONS
In the first quarter of 2008, PICO incurred a net loss of
Our first quarter segment results of operations are: 2008 2007 Income (Loss) Before Taxes & Minority Interest By Operating Segment: Water Resource and Water Storage Operations $(960,000) $(381,000) Real Estate Operations 422,000 2,200,000 Business Acquisitions and Financing 1,344,000 (2,075,000) Insurance Operations in \"Run Off\" 1,209,000 1,701,000 Income Before Taxes & Minority Interest $2,015,000 $1,445,000 Income tax provision (3,967,000) (924,000) Minority interest 305,000 Net Income (Loss) $(1,647,000) $521,000
PICO is a diversified holding company. PICO seeks to acquire, build, and operate businesses where significant value can be created from the development of unique assets, and to acquire businesses which we identify as undervalued and where our management participation in operations can aid in the recognition of the business's fair value, as well as create additional value.
Our objective is to maximize long-term shareholder value. We manage our operations to achieve a superior return on net assets over the long term, as opposed to short-term earnings. Currently our two major businesses are Vidler Water Company, a water resource development business, and Nevada Land & Resource Company, one of the largest private landowners in the state of
OTHER INFORMATION AND WHERE TO FIND IT
At
Given the size and diversity of our asset base, this release only summarizes the most significant elements in our first quarter 2008 results. For fuller information on our principal activities and assets, recent developments, and the current outlook, we encourage all investors to read our Form 10-Q report for the first quarter of 2008, which has already been filed with the SEC. The report can be accessed on-line via our web-site (www.picoholdings.com), or you can call
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements", that is statements related to future, not past, events. In this context, forward- looking statements often address our current expected future business and financial performance, and often contain words such as "expects", "anticipates", "intends", "plans", "believes", "seeks", or "will". By their nature, forward-looking statements address matters that are, to different degrees, uncertain. These uncertainties may cause our actual future results to be materially different than those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements, and undue reliance should not be placed on forward-looking statements, which speak only as of the day they are made. Such statements include, but are not limited to, statements regarding the completion of the Fish Springs pipeline project on budget and on schedule; the timeline for delivery of water through the Fish Springs pipeline; the trend for increasing water demands in the northern valleys of
SOURCE PICO Holdings, Inc.
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