MLP has another bad quarter


POSTED: Tuesday, August 04, 2009

Maui Land & Pineapple Co., which has been downsizing in the wake of an economic slowdown and its struggling pineapple operations, lost $54.2 million in the second quarter while taking $37.4 million in charges.

The Kahului-based company, which lost $79.4 million in 2008 and $13.2 million in the first quarter of this year, said yesterday it incurred losses in all three of its business segments: community development, resort and agriculture.

In the year-earlier quarter, MLP had net income of $272,000. The loss per share last quarter was $6.75 versus a net of 3 cents a share a year earlier.

“;The downturn in visitor arrivals and slow real estate markets, combined with losses in our agriculture segment, have negatively impacted the business results of the company,”; MLP Chief Financial Officer John Durkin said.

In the last two years, MLP has laid off hundreds of workers, replaced its top management and saw two chief executive officers resign, sold its Plantation Golf Course in Kapalua for $50 million, then leased it back, cut employee wages 10 percent and ceased its canned-pineapple operations to focus on the fresh fruit.





        2nd-quarter loss

        $54.2 million

Year-earlier net


MLP's write-offs included a charge of $21.3 million for the decrease in value of the company's investment in Kapalua Bay Holdings LLC, $14.2 million for development plans that are no longer considered feasible due to changes in market conditions, and $1.9 million for an adjustment to estimated fair value of real estate that the company has classified as held for sale.

The company's revenue last quarter fell 24.4 percent to $13.3 million from $17.6 million.

MLP's community development segment had an operating loss of $41 million compared with a profit of $11 million a year ago. Revenue for the division fell 51.1 percent to $1.8 million from $3.7 million.

The resort segment had an operating loss of $4.6 million versus a loss of $5.2 million a year ago, while revenue decreased 18.1 percent to $6.7 million from $8.2 million.

MLP's agriculture unit posted an operating loss of $5 million compared with a loss of $4.6 million a year ago, while revenue declined 14.2 percent to $4.5 million from $5.3 million.

“;On a year-over-year basis, despite the lower ... revenues in our resort and agriculture businesses, we were able to reduce the cash outflow from our operating activities,”; Durkin said. “;Profitability at our community development segment was impacted by the downturn in real estate markets, which resulted in further impairment to our investments.”;