MLP net drops in quarter

Maui Land & Pineapple Co. said yesterday that the delayed ripening of fruit at its Haliimaile plantation helped contribute to a loss of $740,000 in the first quarter.

First-quarter loss $740,000 Year-earlier net $15.7 million

David Cole, chairman, president and chief executive of MLP, said the company is accelerating plans to consolidate fresh pineapple operations at its Honolua plantation to take advantage of better growing conditions, shorter growing cycles and lower operating costs.

"Results in the agriculture segment were adversely affected by historically lower average temperatures at our Haliimaile plantation," he said.

The loss was in contrast to a $15.7 million profit in the year-earlier quarter, but those results were inflated by a $25 million sale in March 2007 of land underlying the Ritz-Carlton Kapalua hotel. The deal with Kapalua/Gengate Holdings LLC also included MLP receiving a 21.4 percent ownership interest in the hotel.

The company ended up with a loss per share of 9 cents last quarter versus a profit of $2.12 a share in the year-earlier period.

As a result of the delayed harvest, the year-earlier land transaction and the shutdown of canned pineapple products in 2007, MLP's revenue plunged 58.4 percent to $25.4 million in the first quarter from $61 million a year ago. On June 30, the company shut down its pineapple canning operation to focus on Hawaii and mainland fresh pineapple sales.

MLP's agriculture unit, which includes primarily pineapple, had an operating loss of $5.6 million, more than double the loss of $2.4 million a year earlier. Agriculture revenue, without canned-pineapple sales, fell 38.4 percent to $8.5 million from $13.7 million.

MLP's real estate segment saw operating profit plunge 72.2 percent to $8.1 million from $29.1 million due to the year-earlier land sale. Revenue in the division dropped 87 percent to $4.6 million from $35.2 million. However, within that segment, MLP had income from Kapalua Bay Holdings LLC of $9.4 million versus $1.9 million a year ago. MLP has a 51 percent interest and is the managing member of Kapalua Bay Holdings, which is constructing the 146-unit Residences at Kapalua Bay. Kapalua Bay Holdings is a joint venture between MLP, Marriott International Inc. and Exclusive Resorts LLC.

MLP's resort division had an operating loss of $2.3 million, more than double the loss of $904,000 a year earlier, due to increased operating and marketing expenses mostly tied to MLP's new Mountain outpost and Adventure Center activities. Revenue in the unit was $11.7 million, up just $36,000 from the year-earlier period.