Real estate sales pump up profits for Maui Land
Maui Land & Pineapple Co.'s net income soared 83.8 percent in the fourth quarter, when the company received $10.9 million in pretax gains from the sale of Upcountry Maui real estate.
Although MLP continues to lose money in its pineapple operations, the company said that largely reflects increased depreciation charges and equipment write-offs of $5 million related to this year's replacement of its fresh-fruit packing facility and the planned replacement of its Kahului cannery.
Overall, net income for the quarter rose to $4.8 million, or 67 cents a share, from $2.6 million, or 36 cents a share, a year earlier. Revenue increased 10 percent to $53.2 million from $48.4 million.
For the year, MLP's earnings swung to a gain of $14.6 million, or $2.02 a share, from a loss of $383,000, or 5 cents a share, in 2004. Full-year revenue increased 21.8 percent to $186.7 million from $153.2 million.
MLP recorded more than $7.4 million in charges last year related to the restructuring of operations and began an asset redeployment program with more than $28 million in proceeds from real estate sales. The company had a pretax gain for the year of $26.9 million from the sales of Upcountry Maui real estate, which the company decided was not core to its strategic plan.
"Our investment programs will continue through 2006 with the redevelopment of the Kapalua Bay Hotel site, the completion of a fresh-fruit grading and packing facility, and the expansion of our real estate operations," said David Cole, chairman, president and chief executive of MLP.
Bolstered by the Upcountry Maui real estate sales, MLP's operating profit from its development segment jumped 70.5 percent in the fourth quarter to $13.7 million from $8.1 million. Revenue rose 25.7 percent to $20 million from $16 million.
The company's pineapple unit, now called the agriculture segment, had its operating loss widen to $4.2 million from $2.6 million a year earlier. Revenue fell 1.1 percent to $22.2 million from $22.4 million as sales volume of canned pineapple decreased.
The company's resort segment had an operating loss of $1.5 million, which was virtually even with the year-ago quarter. Revenue gained 9.3 percent to $10.8 million from $9.9 million.