Land sales propel MLP to $2M gain in quarter
But the pineapple and resort units both suffer losses
Maui Land & Pineapple Co. said last night it received a $6 million boost from three Upcountry Maui land sales and swung to a $2 million gain in the third quarter.
The company, which lost $2.2 million in the year-earlier period, saw its revenue increase 28 percent to $44.1 million from $34.6 million.
Earnings per share were 28 cents compared with a loss of 30 cents a share in the third quarter of 2004.
MLP said the land it sold had been earmarked as noncore to the company's strategic plan. Overall, MLP's community development segment more than tripled its operating profit to $7.5 million from $2.3 million while revenue more than doubled to $13.5 million from $5.6 million. Also contributing to the gain in the community development unit were lot sales at MLP's Honolua Ridge Phase I and Phase II agricultural subdivisions.
The company's pineapple segment, which posts losses nearly every quarter, continued that trend although it narrowed its operating loss to $2.5 million from $3.6 million a year earlier. Included in the operating loss were depreciation charges of $900,000 connected to the planned replacement of the current cannery, can plant and fresh fruit packing facility. Revenue for the segment gained 7 percent to $20.3 million from $19 million as fresh pineapple sales more than offset revenue from canned pineapple.
MLP's resort unit also had an operating loss as it widened to $2.1 million from $1.8 million. Revenue was up 2 percent to $10.3 million from $10 million.
The company said last quarter's resort performance was significantly affected by the closure of the Plantation Golf Course from April 1 through July 30 for extended green and fairway bunker renovations. MLP noted, though, that the course's closure was partially offset by increased paid rounds at the Bay and Village golf courses and higher average green fees and increased occupancies at the Kapalula Resort.
David Cole, chairman, president and chief executive of MLP, said the company's asset redeployment program has enabled the company to invest in all business segments.
"Fruit quality and channel mix in the pineapple unit are evolving as planned, while the pace of investment programs at the Kapalua Resort have been impacted by inclement weather and rising construction costs," Cole said. "The community development segment continues to execute as planned."