Maui Land & Pineapple loses $25.5M


POSTED: Saturday, October 31, 2009

Maui Land & Pineapple Co., struggling amid the economic downturn, posted a $25.5 million loss in the third quarter and has now lost more in nine months than it did in all of 2008.

The Kahului-based company, which booked a $22.8 million equity loss last quarter for its investment in Kapalua Bay Holdings LLC, extended its losses for 2009 to $92.9 million, topping the $79.4 million it lost in 2008.

A year ago, MLP had a loss of $8.7 million, or $1.09 a share, in the third quarter. The loss per share last quarter was $3.17.

Despite the loss, revenue rose 39.4 percent to $26.7 million from $19.1 million, primarily due to the sale of two properties that resulted in revenue of $11.7 million and pretax profit of about $6.8 million.

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

        Third-quarter loss
        $25.5 million
        Year-earlier loss
        $8.7 million

MLP posted an operating loss of $16.9 million in its community development segment, which includes Kapalua Bay Holdings, compared with operating income of $2.5 million in the year-earlier quarter. Revenue for the division, however, jumped sixfold to $13.8 million from $2.2 million.

The company's resort segment narrowed its operating loss to $2.7 million from $5.7 million but saw its revenue fall 16.5 percent to $7.6 million from $9.1 million, reflecting lower revenue from the primary resort operations, gold retail and villas.

MLP's agriculture segment, which is predominantly pineapple, had an operating loss of $4.1 million compared with a loss of $9.5 million a year ago. Revenue decreased 31.7 percent to $4.9 million from $7.2 million due to lower average prices and lower case sales volume.