Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2019shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q2 |
Trading Symbol | CPTP |
Entity Registrant Name | CAPITAL PROPERTIES INC /RI/ |
Entity Central Index Key | 0000202947 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Non-accelerated Filer |
Entity Small Business | true |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Current Reporting Status | Yes |
Entity File Number | 001-08499 |
Entity Tax Identification Number | 050386287 |
Entity Address, Address Line One | 5 Steeple Street, Unit 303 |
Entity Address, City or Town | Providence |
Entity Address, State or Province | Rhode Island |
Entity Address, Postal Zip Code | 02903 |
City Area Code | 401 |
Local Phone Number | 435-7171 |
Entity Common Stock, Shares Outstanding | 6,599,912 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Properties and equipment (net of accumulated depreciation) | $ 6,899,000 | $ 6,951,000 |
Cash and cash equivalents | 2,568,000 | 1,147,000 |
Prepaid and other | 182,000 | 297,000 |
Deferred income taxes associated with discontinued operations | 218,000 | 132,000 |
Total assets | 9,867,000 | 8,527,000 |
Liabilities: | ||
Property taxes | 157,000 | 224,000 |
Other | 554,000 | 402,000 |
Income taxes payable | 198,000 | |
Deferred income taxes, net | 287,000 | 338,000 |
Liabilities associated with discontinued operations (Note 7) | 805,000 | 490,000 |
Total liabilities | 2,001,000 | 1,454,000 |
Shareholders’ equity: | ||
Class A common stock, $.01 par; authorized 10,000,000 shares; issued and outstanding 6,599,912 shares | 66,000 | 66,000 |
Capital in excess of par | 782,000 | 782,000 |
Retained earnings | 7,018,000 | 6,225,000 |
Total shareholders' equity | 7,866,000 | 7,073,000 |
Total liabilities and shareholders' equity | $ 9,867,000 | $ 8,527,000 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 6,599,912 | 6,599,912 |
Common stock, shares outstanding | 6,599,912 | 6,599,912 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Shareholders' Equity | USD ($)$ / shares |
Revenue and other income: | |
Leasing revenue | $ 2,650,000 |
Other income, interest | 42,000 |
Revenue and other income | 2,692,000 |
Expenses: | |
Operating | 496,000 |
General and administrative | 862,000 |
Total expenses | 1,358,000 |
Income from continuing operations before income taxes | 1,334,000 |
Income tax expense (benefit): | |
Current | 385,000 |
Deferred | (48,000) |
Total Income tax expense | 337,000 |
Income from continuing operations | 997,000 |
Gain (loss) on sale of discontinued operations, net of taxes | 613,000 |
Net income | 1,610,000 |
Retained earnings, beginning at Dec. 31, 2017 | 11,762,000 |
Income tax expense (benefit): | |
Dividends on common stock ($.07 per share) based upon 6,599,912 shares outstanding | (924,000) |
Retained earnings, ending at Jun. 30, 2018 | 12,448,000 |
Shareholders' equity, ending at Jun. 30, 2018 | $ 13,296,000 |
Basic income (loss) per common share based upon 6,599,912 shares outstanding: | |
Continuing operations | $ / shares | $ 0.15 |
Discontinued operations | $ / shares | 0.09 |
Total basic income per common share | $ / shares | $ 0.24 |
Leasing revenue | $ 1,378,000 |
Other income, interest | 29,000 |
Revenue and other income | 1,407,000 |
Operating | 214,000 |
General and administrative | 492,000 |
Total expenses | 706,000 |
Income from continuing operations before income taxes | 701,000 |
Current | 223,000 |
Deferred | (55,000) |
Total Income tax expense | 168,000 |
Income from continuing operations | 533,000 |
Gain (loss) on sale of discontinued operations, net of taxes | (16,000) |
Net income | 517,000 |
Retained earnings, beginning at Mar. 31, 2018 | 12,393,000 |
Income tax expense (benefit): | |
Dividends on common stock ($.07 per share) based upon 6,599,912 shares outstanding | (462,000) |
Retained earnings, ending at Jun. 30, 2018 | 12,448,000 |
Shareholders' equity, ending at Jun. 30, 2018 | $ 13,296,000 |
Basic income (loss) per common share based upon 6,599,912 shares outstanding: | |
Continuing operations | $ / shares | $ 0.08 |
Discontinued operations | $ / shares | 0 |
Total basic income per common share | $ / shares | $ 0.08 |
Class A common stock | $ 66,000 |
Capital in excess of par | 782,000 |
Class A common stock | 66,000 |
Capital in excess of par | 782,000 |
Leasing revenue | 2,690,000 |
Other income, interest | 40,000 |
Revenue and other income | 2,730,000 |
Operating | 257,000 |
General and administrative | 641,000 |
Total expenses | 898,000 |
Income from continuing operations before income taxes | 1,832,000 |
Current | 568,000 |
Deferred | (50,000) |
Total Income tax expense | 518,000 |
Income from continuing operations | 1,314,000 |
Gain (loss) on sale of discontinued operations, net of taxes | 403,000 |
Net income | 1,717,000 |
Retained earnings, beginning at Dec. 31, 2018 | 6,225,000 |
Income tax expense (benefit): | |
Dividends on common stock ($.07 per share) based upon 6,599,912 shares outstanding | (924,000) |
Retained earnings, ending at Jun. 30, 2019 | 7,018,000 |
Shareholders' equity, ending at Jun. 30, 2019 | $ 7,866,000 |
Basic income (loss) per common share based upon 6,599,912 shares outstanding: | |
Continuing operations | $ / shares | $ 0.20 |
Discontinued operations | $ / shares | 0.06 |
Total basic income per common share | $ / shares | $ 0.26 |
Leasing revenue | $ 1,444,000 |
Other income, interest | 6,000 |
Revenue and other income | 1,450,000 |
Operating | 124,000 |
General and administrative | 311,000 |
Total expenses | 435,000 |
Income from continuing operations before income taxes | 1,015,000 |
Current | 307,000 |
Deferred | (19,000) |
Total Income tax expense | 288,000 |
Income from continuing operations | 727,000 |
Gain (loss) on sale of discontinued operations, net of taxes | (261,000) |
Net income | 466,000 |
Retained earnings, beginning at Mar. 31, 2019 | 7,014,000 |
Income tax expense (benefit): | |
Dividends on common stock ($.07 per share) based upon 6,599,912 shares outstanding | (462,000) |
Retained earnings, ending at Jun. 30, 2019 | 7,018,000 |
Shareholders' equity, ending at Jun. 30, 2019 | $ 7,866,000 |
Basic income (loss) per common share based upon 6,599,912 shares outstanding: | |
Continuing operations | $ / shares | $ 0.11 |
Discontinued operations | $ / shares | (0.04) |
Total basic income per common share | $ / shares | $ 0.07 |
Class A common stock | $ 66,000 |
Capital in excess of par | $ 782,000 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Income and Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Statement [Abstract] | ||||
Dividends on common stock, per share | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 |
Common stock, shares outstanding | 6,599,912 | 6,599,912 | 6,599,912 | 6,599,912 |
Basic income (loss) per common share, shares outstanding | 6,599,912 | 6,599,912 | 6,599,912 | 6,599,912 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Income from continuing operations | $ 1,314,000 | $ 997,000 |
Adjustments to reconcile income from continuing operations to net cash provided by operating activities, continuing operations: | ||
Depreciation | 52,000 | 92,000 |
Deferred income taxes | (50,000) | (48,000) |
Income taxes payable | 198,000 | 38,000 |
Other, net changes in prepaids, property tax payable and other | 151,000 | (187,000) |
Net cash provided by operating activities, continuing operations | 1,665,000 | 892,000 |
Cash flows from investing activities: | ||
Continuing operations, purchase of investments | (2,012,000) | |
Deposit liability, Parcel 20 | 49,000 | |
Discontinued operations, sale of assets | 862,000 | 862,000 |
Net cash (used in) discontinued operations | (231,000) | (317,000) |
Net cash provided by (used in) investing activities | 680,000 | (1,467,000) |
Cash flows from financing activities, payment of dividends | (924,000) | (924,000) |
Increase (decrease) in cash and cash equivalents | 1,421,000 | (1,499,000) |
Cash and cash equivalents, beginning | 1,147,000 | 5,202,000 |
Cash and cash equivalents, ending | 2,568,000 | 3,703,000 |
Supplemental disclosures: | ||
Continuing operations | 233,000 | 340,000 |
Discontinued operations, sale of assets | 198,000 | 185,000 |
Income Taxes Paid, Net, Total | $ 431,000 | $ 525,000 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (Parenthetical) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Non-cash transaction: | |
Office equipment, written off | $ 28,000 |
Accumulated depreciation | $ 25,000 |
Description of business
Description of business | 6 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Description of business | 1. Description of business: Capital Properties, Inc. and its wholly-owned subsidiaries, Tri-State Displays, Inc., Capital Terminal Company and Dunellen, LLC (collectively referred to as “the Company”) for many years operated in two segments, leasing and petroleum storage. On February 10, 2017, the Company sold its petroleum storage facility and related assets (the “Terminal”) owned or controlled by the Company’s subsidiaries, Capital Terminal Company and Dunellen, LLC to Sprague Operating Resources, LLC (“Sprague”). The sale of the Terminal results in the segment being classified as discontinued operations for all periods presented. See Note 7 to the condensed consolidated financial statements. With the sale of the Terminal, the Board determined that there was no longer a need to maintain Capital Terminal Company and Dunellen, LLC, and at its April 24, 2018 regularly scheduled Board meeting, it voted to liquidate and dissolve these two companies. The dissolution of Capital Terminal Company and Dunellen, LLC was completed as of July 16, 2019. As a result of the sale of the Terminal, the Company’s operations consist of the long-term leasing of certain of its real estate interests in downtown Providence, Rhode Island (upon the commencement of which the tenants have been required to construct buildings thereon, with the exception of the parking garage and Parcel 6C), the leasing of a portion of its building (“Steeple Street Building”) under short-term leasing arrangements through December 1, 2018 and the leasing of locations along interstate and primary highways in Rhode Island and Massachusetts to Lamar Outdoor Advertising, LLC (“Lamar”) which has constructed outdoor advertising boards thereon. The Company anticipates that the future development of its remaining properties in and adjacent to the Capital Center area will consist primarily of long-term ground leases. Pending this development, the Company leases these parcels for public parking to Metropark, Ltd. |
Principles of consolidation and
Principles of consolidation and basis of presentation | 6 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Principles of consolidation and basis of presentation | 2. The accompanying condensed consolidated financial statements include the accounts and transactions of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying condensed consolidated balance sheet as of December 31, 2018 has been derived from audited financial statements. The unaudited interim condensed consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and the notes thereto included in the Company’s latest Form 10-K for the year ended December 31, 2018. In the opinion of management, the accompanying condensed consolidated financial statements contain all adjustments (consisting solely of normal recurring adjustments) necessary to present fairly the financial position as of June 30, 2019 and the results of operations for the three and six months ended June 30, 2019 and 2018, and cash flows for the six months ended June 30, 2019 and 2018. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Environmental incidents: The Company accrues a liability when an environmental incident has occurred and the costs are estimable. The Company does not record a receivable for recoveries from third parties for environmental matters until it has determined that the amount of the collection is reasonably assured. The accrued liability is relieved when the Company pays the liability or a third party assumes the liability. Upon determination that collection is reasonably assured or a third party assumes the liability, the Company records the amount as a reduction of expense. Recent accounting pronouncements: In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update No. 2016-02, which requires lessors to classify leases as sales-type, direct financing, or operating leases. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No, 2018-11, Targeted Improvements. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of the five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all of the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type or direct financing leases are operating leases. The new standard was effective for the Company on January 1, 2019. A modified retrospective transition approach was required by applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented as its date of initial application. The Company adopted the new standard on January 1, 2019 and used the effective date as our date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of practical expedients in transition. The Company elected the “package of practical expedients”, which permits the Company not to reassess under the new standard prior conclusions about lease identification, lease classification and initial direct costs. While most of our leases will continue to be classified as operating leases in accordance with the package of practical expedients, leases that commence on or after the effective date of the new standard, and that would be classified as operating leases under prior GAAP, may be classified as a sales-type lease under the new standard. We do not expect the adoption of the new standard will have a significant impact on our leasing activities. For additional information on the Company’s leases, see Note 5 to the condensed consolidated financial statements. Reclassification of Prior Period Presentation: The loss from discontinued operations, net of taxes for prior periods has been reclassified for consistency purposes and is now included in gain (loss) on sale of discontinued operations, net of taxes. This reclassification had no effect on reported net income. On the condensed consolidated statements of cash flows, this change increased net cash provided by operating activities and increased net cash used in investing activities by $317,000 for the six months ended June 30, 2018. |
Use of estimates
Use of estimates | 6 Months Ended |
Jun. 30, 2019 | |
Text Block [Abstract] | |
Use of estimates | 3. Use of estimates: The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Estimates also affect the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. |
Properties and equipment
Properties and equipment | 6 Months Ended |
Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Properties and equipment | 4. Properties and equipment: Properties and equipment consist of the following: June 30, 2019 December 31, 2018 Properties on lease or held for lease, land and land improvements $ 4,010,000 $ 4,010,000 Office equipment 67,000 95,000 Steeple Street property under contract, net (see Note 5) 2,969,000 3,011,000 7,046,000 7,116,000 Less accumulated depreciation: Properties on lease or held for lease 83,000 79,000 Office equipment 64,000 86,000 147,000 165,000 $ 6,899,000 $ 6,951,000 |
Description of leasing arrangem
Description of leasing arrangements | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Description of leasing arrangements | 5 . Description of leasing arrangements: Long-term land leases: As of June 30, 2019, the Company had entered into ten long-term land leases. Seven of the ten parcels have completed construction of improvements thereon. On Parcel 6B, construction of a 169-unit residential complex commenced in November 2016 and is substantially complete. Parcel 6C is being used as a construction staging area for the construction on Parcel 6B. On September 28, 2017, the Company entered into a long-term ground lease of Parcel 20. Under the terms of the lease until the tenant took possession, the Company received all rents from the existing tenants and paid all expenses with respect to Parcel 20. On May 4, 2018, the Company and the lessee entered into an Amended and Restated Ground Lease (“Restated Lease”). The lessee took possession of Parcel 20 on December 1, 2018 and the Company conveyed title to the existing building. In addition to the ground lease rent, for 360 months following December 1, 2018, the lessee will pay acquisition period rent consisting of monthly payments of $7,471 for the first thirty-six months and monthly payments thereafter of $8,488 plus an amount equal to 1/12 th The Restated Lease for Parcel 20, as it relates specifically to the Steeple Street Building, was accounted for as a sales-type lease due to the transfer of the Steeple Street Building to the lessee. The land directly under the Steeple Street Building was allocated in the determination of the value of the property transferred in accordance with ASC 360-20, Property, Plant and Equipment - Real Estate Sales Under the ten land leases, the tenants may negotiate tax stabilization treaties or other arrangements, appeal any changes in real property assessments, and must pay real property taxes assessed on land and improvements under these arrangements. Accordingly, with the exception of Parcel 20 through December 1, 2018, real property taxes payable by the tenants are excluded from leasing revenues and leasing expenses on the accompanying condensed consolidated statements of income and shareholders’ equity. Real property taxes attributable to the Company’s land under these leases totaled $341,000 and $682,000 for the three and six months ended June 30, 2019 and $308,000 and $617,000 for the three and six months ended June 30, 2018. Under two of the long-term land leases, the Company receives contingent rentals (based on a fixed percentage of gross revenue received by the tenants) which totaled $35,000 and $63,000 for the three and six months ended June 30, 2019, and $25,000 and $54,000 for the three and six months ended June 30, 2018. With respect to the Parcel 6C, the lessee has the right to terminate its lease at any time during the remaining term of the lease upon thirty days’ notice. To date, no notice of termination has been received by the Company. The current annual rent on Parcels 6C is $200,000 and annual real estate taxes paid by the lessee equals $311,000. Lamar lease: The Company, through a wholly-owned subsidiary, leases 23 outdoor advertising locations containing 44 billboard faces along interstate and primary highways in Rhode Island and Massachusetts to Lamar under a lease which expires in 2045. The Lamar lease provides, among other things, for the following: (1) the base rent will increase annually at the rate of 2.75% for each leased billboard location on June 1 of each year, and (2) in addition to base rent, for each 12-month period commencing each June 1 (each 12-month period a “Lease Year”), Lamar must pay to the Company within thirty days after the close of the Lease Year 30% of the gross revenues from each standard billboard and 20% of the gross revenues from each electronic billboard for such 12-month period, reduced by the sum of (a) commissions paid to third parties and (b) base monthly rent for each leased billboard display for each 12-month period. For the lease years ended May 31, 2019 and 2018, the percentage rent totaled $210,000 and $100,000, respectively, which amounts are included in leasing revenue on the accompanying condensed consolidated statements of income and shareholders’ equity. Parking lease: The Company leases the undeveloped parcels of land in the Capital Center area and, through December 1, 2018 the undeveloped Parcel 20 land, for public parking purposes to Metropark under a ten year lease. The lease is cancellable as to all or any portion of the leased premises at any time on thirty day’s written notice in order for the Company or any new tenant of the Company to develop all or any portion of the leased premises. The parking lease provides for contingent rentals (based on a fixed percentage of gross revenue in excess of the base rent) which totaled $24,000 and $71,000 for the three and six months ended June 30, 2019 (inclusive of an additional $23,000 in 2019 for contingent rent in excess of the 2018 estimate), and $18,000 and $36,000 for the three and six months ended June 30, 2018. Parcel 20, Steeple Street: With the execution of the Parcel 20 lease, effective December 1, 2018, the lessee receives all rental income associated with the Steeple Street building and the Parcel 20 undeveloped land leased to Metropark pending its development. At June 30, 2018 the Company had four tenants occupying 49 percent of the Steeple Street Building under short-term leases of five years or less at an annual rental of $95,000 and the Company reported as revenue tenant reimbursements for common area costs and real property taxes in the amount of $20,000 through June 30, 2018. |
Income taxes, continuing operat
Income taxes, continuing operations | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income taxes, continuing operations | 6 . Income taxes, continuing operations: Deferred income taxes are recorded based upon differences between financial statement and tax basis amounts of assets and liabilities. The tax effects of temporary differences for continuing operations which give rise to deferred tax assets and liabilities are as follows: June 30, 2019 December 31, 2018 Gross deferred tax liabilities: Property having a financial statement basis in excess of tax basis $ 365,000 $ 364,000 Insurance premiums and accrued leasing revenues 26,000 25,000 391,000 389,000 Less deferred tax assets (104,000 ) (51,000 ) $ 287,000 $ 338,000 |
Discontinued operations
Discontinued operations | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued operations | 7. Discontinued operations: On February 10, 2017 the Company sold the Terminal to Sprague for $23 Million subject to certain adjustments. Presentation of Financial Statements – Discontinued Operations Pursuant to the Sale Agreement, the Sale Price was reduced by $1,040,000, the estimated cost of a breasting dolphin to be constructed by Sprague adjacent to the Pier in order that the Pier can berth Panamax sized vessels; $1,725,000 of the Sale Price was placed in escrow to secure the Company’s indemnity obligations under the Sale Agreement and $441,000 in normal closing adjustments, transfer taxes, investment banking and other fees, other than federal and state income taxes. The net proceeds delivered to the Company amounted to $19.8 Million. In accordance with the Sale Agreement, the Company has agreed to retain and pay for the environmental remediation costs associated with a 1994 storage tank fuel oil leak which allowed the escape of a small amount of fuel oil. Since 1994, the Company and its consultants have continued to worked with the Rhode Island Department of Environmental Management (“RIDEM”) through the various phases of remediation and are now working to complete the final remediation plan. At December 31, 2017 the total accrual for the cost of remediation was $434,000. In 2018, the Company incurred costs of $111,000 and increased the amount accrued by $167,000 resulting in a remediation liability of $490,000 at December 31, 2018. Through June 30, 2019, the Company incurred costs of $43,000 which reduced the total accrual to $447,000. Based upon the current remediation plan, the amount accrued was increased by $358,000 resulting in a remediation liability of $805,000 at June 30, 2019. Any subsequent increases or decreases to the expected cost of remediation will be recorded in gain (loss) on sale of discontinued operations, net of taxes. The Sale Agreement also contains a cost sharing provision for the breasting dolphin whereby any variance from the initial estimate of $1,040,000 will be borne equally by Sprague and the Company subject to certain limitations. In May 2018 the Company received notice from Sprague that Sprague had received bids for the breasting dolphin and that the cost of the Project was estimated at $1,923,284. Sprague requested that the Company acknowledge that it was obligated to pay 50% of the cost in excess of $1,040,000, or $441,642. The Company replied that pursuant to the letter agreement between the Company and Sprague (the “Letter Agreement”) the Company’s obligation cannot exceed $104,000 assuming, among other things, that Sprague had been timely in securing bids for the breasting dolphin and the scope of the work as bid was consistent with the Letter Agreement. In April 2019, Sprague notified the Company that construction change orders to date were within the amount of the contract contingency originally included in the estimate of $1,923,284. At June 30, 2019 construction is substantially complete. The Company continues to assert that its obligation cannot exceed $104,000. In February 2019 and 2018, the Company received 50 percent of the aforementioned escrow ($862,000 in each year), which amounts are included in gain (loss) on sale of discontinued operations, net of taxes. Interest income includes $23,000 related to these funds in 2019. Gain (loss) on sale of discontinued operations for the three and six months ended June 30, 2019 and 2018 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Indemnification escrow proceeds $ - $ - $ 862,000 $ 862,000 Environmental remediation expense 358,000 17,000 359,000 64,000 Gain (loss) from discontinued operations before income taxes (358,000 ) (17,000 ) 503,000 798,000 Income tax expense (benefit): Current (6,000 ) 186,000 182,000 Deferred (91,000 ) (1,000 ) (86,000 ) 3,000 (97,000 ) (1,000 ) 100,000 185,000 Gain (loss) from discontinued operations, net of taxes $ (261,000 ) $ (16,000 ) $ 403,000 $ 613,000 |
Fair value of financial instrum
Fair value of financial instruments | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | 8 . Fair value of financial instruments: The Company believes that the fair values of its financial instruments, including cash and cash equivalents, receivables and payables, approximate their respective book values because of their short-term nature. The fair values described herein were determined using significant other observable inputs (Level 2) as defined by GAAP. |
Subsequent event
Subsequent event | 6 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent event | 9 . Subsequent event: At its July 30, 2019 regularly scheduled quarterly Board meeting, the Board of Directors voted to declare a quarterly dividend of $.07 per share for shareholders of record on August 16, 2019, payable August 30, 2019. On July 16, 2019, Capital Terminal Company was dissolved. |
Principles of consolidation a_2
Principles of consolidation and basis of presentation (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Environmental incidents | Environmental incidents: The Company accrues a liability when an environmental incident has occurred and the costs are estimable. The Company does not record a receivable for recoveries from third parties for environmental matters until it has determined that the amount of the collection is reasonably assured. The accrued liability is relieved when the Company pays the liability or a third party assumes the liability. Upon determination that collection is reasonably assured or a third party assumes the liability, the Company records the amount as a reduction of expense. |
Recent accounting pronouncements | Recent accounting pronouncements: In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update No. 2016-02, which requires lessors to classify leases as sales-type, direct financing, or operating leases. Topic 842 was subsequently amended by ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842; ASU No. 2018-10, Codification Improvements to Topic 842, Leases; and ASU No, 2018-11, Targeted Improvements. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of the five criteria are met, but two additional criteria are both met, indicating that the lessor has transferred substantially all of the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type or direct financing leases are operating leases. The new standard was effective for the Company on January 1, 2019. A modified retrospective transition approach was required by applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented as its date of initial application. The Company adopted the new standard on January 1, 2019 and used the effective date as our date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before January 1, 2019. The new standard provides a number of practical expedients in transition. The Company elected the “package of practical expedients”, which permits the Company not to reassess under the new standard prior conclusions about lease identification, lease classification and initial direct costs. While most of our leases will continue to be classified as operating leases in accordance with the package of practical expedients, leases that commence on or after the effective date of the new standard, and that would be classified as operating leases under prior GAAP, may be classified as a sales-type lease under the new standard. We do not expect the adoption of the new standard will have a significant impact on our leasing activities. For additional information on the Company’s leases, see Note 5 to the condensed consolidated financial statements. |
Reclassification of Prior Period Presentation | Reclassification of Prior Period Presentation: The loss from discontinued operations, net of taxes for prior periods has been reclassified for consistency purposes and is now included in gain (loss) on sale of discontinued operations, net of taxes. This reclassification had no effect on reported net income. On the condensed consolidated statements of cash flows, this change increased net cash provided by operating activities and increased net cash used in investing activities by $317,000 for the six months ended June 30, 2018. |
Use of estimates | The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements. Estimates also affect the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates. |
Fair value of financial instruments | The Company believes that the fair values of its financial instruments, including cash and cash equivalents, receivables and payables, approximate their respective book values because of their short-term nature. The fair values described herein were determined using significant other observable inputs (Level 2) as defined by GAAP. |
Properties and equipment (Table
Properties and equipment (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Property Plant And Equipment [Abstract] | |
Properties and Equipment | Properties and equipment consist of the following: June 30, 2019 December 31, 2018 Properties on lease or held for lease, land and land improvements $ 4,010,000 $ 4,010,000 Office equipment 67,000 95,000 Steeple Street property under contract, net (see Note 5) 2,969,000 3,011,000 7,046,000 7,116,000 Less accumulated depreciation: Properties on lease or held for lease 83,000 79,000 Office equipment 64,000 86,000 147,000 165,000 $ 6,899,000 $ 6,951,000 |
Income taxes, continuing oper_2
Income taxes, continuing operations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Deferred Tax Assets and Liabilities | The tax effects of temporary differences for continuing operations which give rise to deferred tax assets and liabilities are as follows: June 30, 2019 December 31, 2018 Gross deferred tax liabilities: Property having a financial statement basis in excess of tax basis $ 365,000 $ 364,000 Insurance premiums and accrued leasing revenues 26,000 25,000 391,000 389,000 Less deferred tax assets (104,000 ) (51,000 ) $ 287,000 $ 338,000 |
Discontinued operations (Tables
Discontinued operations (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Summary of Gain (Loss) on Sale of Discontinued Operations | Gain (loss) on sale of discontinued operations for the three and six months ended June 30, 2019 and 2018 are as follows: Three Months Ended June 30, Six Months Ended June 30, 2019 2018 2019 2018 Indemnification escrow proceeds $ - $ - $ 862,000 $ 862,000 Environmental remediation expense 358,000 17,000 359,000 64,000 Gain (loss) from discontinued operations before income taxes (358,000 ) (17,000 ) 503,000 798,000 Income tax expense (benefit): Current (6,000 ) 186,000 182,000 Deferred (91,000 ) (1,000 ) (86,000 ) 3,000 (97,000 ) (1,000 ) 100,000 185,000 Gain (loss) from discontinued operations, net of taxes $ (261,000 ) $ (16,000 ) $ 403,000 $ 613,000 |
Description of Business - Addit
Description of Business - Additional Information (Detail) | Apr. 24, 2018Company | Feb. 09, 2017Segment |
Business Description [Line Items] | ||
Number of segments | Segment | 2 | |
Number of companies liquidated | Company | 2 | |
Capital Terminal Company and Dunellen, LLC [Member] | ||
Business Description [Line Items] | ||
Partnership dissolution date | Jul. 16, 2019 |
Principles of consolidation a_3
Principles of consolidation and basis of presentation - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Net cash provided by operating activities | $ 1,665,000 | $ 892,000 |
Net cash provided by (used in) investing activities | $ 680,000 | (1,467,000) |
Restatement Adjustment [Member] | ||
Organization, Consolidation and Presentation of Financial Statements [Line Items] | ||
Net cash provided by operating activities | 317,000 | |
Net cash provided by (used in) investing activities | $ (317,000) |
Properties and Equipment - Prop
Properties and Equipment - Properties and Equipment (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Properties and equipment gross | $ 7,046,000 | $ 7,116,000 |
Less accumulated depreciation | 147,000 | 165,000 |
Properties and equipment net | 6,899,000 | 6,951,000 |
Steeple Street Property Under Contract, Net [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties and equipment gross | 2,969,000 | 3,011,000 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties and equipment gross | 67,000 | 95,000 |
Less accumulated depreciation | 64,000 | 86,000 |
Properties on Lease or Held for Lease [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Less accumulated depreciation | 83,000 | 79,000 |
Properties on Lease or Held for Lease [Member] | Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Properties and equipment gross | $ 4,010,000 | $ 4,010,000 |
Description of Leasing Arrang_2
Description of Leasing Arrangements - Additional Information (Detail) | Dec. 31, 2018USD ($) | Dec. 01, 2018USD ($) | Jun. 30, 2019USD ($)Billboard_FaceLandLeaseParcel | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)Billboard_FaceLandLeaseParcelBuildingLocation | Jun. 30, 2018USD ($)Tenant | May 31, 2019USD ($) | May 31, 2018USD ($) |
Operating Leased Assets [Line Items] | ||||||||
Number of long-term land leases | LandLease | 10 | 10 | ||||||
Number of parcels upon which improvements have been completed | Parcel | 7 | 7 | ||||||
Estimated real property taxes attributable to the company land | $ 341,000 | $ 308,000 | $ 682,000 | $ 617,000 | ||||
Number of long-term land leases with contingent rent receivable | LandLease | 2 | 2 | ||||||
Contingent revenue from leasing of parcel of land | $ 35,000 | 25,000 | $ 63,000 | 54,000 | ||||
Parcel (6B) [Member] | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Number of parcels upon which construction has commenced | Parcel | 1 | 1 | ||||||
Number of residential units commenced construction | Building | 169 | |||||||
Parcel 20 [Member] | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Lessee option to extend | 360 months | |||||||
Impairment loss | $ 1,832,000 | |||||||
Parcel 20 [Member] | First 36 Months [Member] | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Monthly rent receivable | $ 7,471 | |||||||
Parcel 20 [Member] | After 36 Months [Member] | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Monthly rent receivable | $ 8,488 | |||||||
Lessee, payment terms and conditions | monthly payments thereafter of $8,488 plus an amount equal to 1/12th of the product of (a) 5.5% and the difference between (x) $2,750,000 and (y) the aggregate of the prior monthly payments of $8,488. The Restated Lease is a triple net lease. | |||||||
Building and related improvements sold to tenant | $ 2,750,000 | |||||||
Lease principal payments interest percentage | 5.50% | |||||||
Parcel (6C) [Member] | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Notice period of lease | 30 days | |||||||
Annual rent | $ 200,000 | $ 200,000 | ||||||
Real estate taxes paid by the lessee | $ 311,000 | |||||||
Lamar Lease [Member] | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Number of advertising locations | Location | 23 | |||||||
Number of billboard faces along interstate and primary highways leased | Billboard_Face | 44 | 44 | ||||||
Lease expiration year | 2045 | |||||||
Annual increment in base rent of lease, percentage | 2.75% | |||||||
Period for advance receipt of percentage of gross revenue on leases | 12 months | |||||||
Period to recognize specified lease revenue | 30 days | |||||||
Percentage of revenue due in proportion of gross revenues from each standard billboard | 30.00% | |||||||
Percentage of revenue due in proportion of gross revenues from each electronic billboard | 20.00% | |||||||
Percentage rents | $ 210,000 | $ 100,000 | ||||||
Metropark Ltd [Member] | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Contingent revenue from leasing of parcel of land | $ 24,000 | 18,000 | $ 71,000 | 36,000 | ||||
Term of leases | 10 years | 10 years | ||||||
Notice period of lease | 30 days | |||||||
Additional to contingent rent in excess of estimate | $ 23,000 | |||||||
Steeple Street Building [Member] | ||||||||
Operating Leased Assets [Line Items] | ||||||||
Annual rent | $ 95,000 | $ 95,000 | ||||||
Number of tenants occupying building | Tenant | 4 | |||||||
Percentage of building occupied by tenants | 49.00% | |||||||
Term of short term leases | Five years or less | |||||||
Tenant reimbursement revenue | $ 20,000 |
Income Taxes, Continuing Oper_3
Income Taxes, Continuing Operations - Deferred Tax Assets and Liabilities (Detail) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Gross deferred tax liabilities: | ||
Property having a financial statement basis in excess of tax basis | $ 365,000 | $ 364,000 |
Insurance premiums and accrued leasing revenues | 26,000 | 25,000 |
Gross deferred tax liabilities | 391,000 | 389,000 |
Less deferred tax assets | (104,000) | (51,000) |
Deferred tax liabilities, net of deferred tax assets | $ 287,000 | $ 338,000 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) | Feb. 10, 2017 | Apr. 30, 2019 | Feb. 28, 2019 | May 31, 2018 | Feb. 28, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Proceeds from sale of assets | $ 862,000 | $ 862,000 | |||||||||
Costs incurred related to environmental remediation | $ 358,000 | $ 17,000 | 359,000 | 64,000 | |||||||
Escrow deposit release | 862,000 | $ 862,000 | |||||||||
Environmental Incident 1994 [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Accrual for environmental loss contingencies, period increase | 358,000 | $ 167,000 | |||||||||
Remediation costs accrued | 447,000 | 447,000 | |||||||||
Environmental remediation | $ 805,000 | 805,000 | 490,000 | $ 434,000 | |||||||
Costs incurred related to environmental remediation | 43,000 | $ 111,000 | |||||||||
Sale of Petroleum Segment [Member] | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Sales price | $ 23,000,000 | ||||||||||
Reduced sales price | 1,040,000 | $ 1,040,000 | |||||||||
Amount of purchase price held in escrow | 1,725,000 | ||||||||||
Other expenses related to sales agreement | 441,000 | ||||||||||
Proceeds from sale of assets | $ 19,800,000 | ||||||||||
Estimated cost of the project | $ 1,923,284 | $ 1,923,284 | |||||||||
Percentage of obligation on cost in excess of estimated cost | 50.00% | ||||||||||
Entities obligation on cost in excess of initial estimated cost | $ 441,642 | ||||||||||
Maximum additional obligation | $ 104,000 | $ 104,000 | |||||||||
Escrow deposit release | $ 862,000 | $ 862,000 | |||||||||
Percentage Of Escrow Deposit Receivable, After twelve months | 50.00% | 50.00% | |||||||||
Interest income | $ 23,000 |
Discontinued Operations - Summa
Discontinued Operations - Summary of Gain (Loss) on Sale of Discontinued Operations (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Discontinued Operations And Disposal Groups [Abstract] | ||||
Indemnification escrow proceeds | $ 862,000 | $ 862,000 | ||
Environmental remediation expense | $ 358,000 | $ 17,000 | 359,000 | 64,000 |
Gain (loss) from discontinued operations before income taxes | (358,000) | (17,000) | 503,000 | 798,000 |
Income tax expense (benefit): | ||||
Current | (6,000) | 186,000 | 182,000 | |
Deferred | (91,000) | (1,000) | (86,000) | 3,000 |
Income tax (benefit) from discontinued operation | (97,000) | (1,000) | 100,000 | 185,000 |
Gain (loss) from discontinued operations, net of taxes | $ (261,000) | $ (16,000) | $ 403,000 | $ 613,000 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Detail) - $ / shares | Jul. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Subsequent Event [Line Items] | |||||
Dividends on common stock, per share | $ 0.07 | $ 0.07 | $ 0.07 | $ 0.07 | |
Dividend declared date | Jul. 30, 2019 | ||||
Dividend record date | Aug. 16, 2019 | ||||
Dividend payable date | Aug. 30, 2019 | ||||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Dividends on common stock, per share | $ 0.07 |