Leaner Maui Land & Pine
posts profit
Maui Land & Pineapple Co. said yesterday it posted net income of $1.2 million in a fourth quarter that saw the conglomerate receive major cash infusions and take substantial write-offs.
The company, which had a loss of $2.2 million in the year-ago period, received $2.9 million last quarter from the sale of substantially all of the assets of its Costa Rican pineapple affiliate; as well as a $5.4 million cash distribution from the U.S. Customs Service.
Earnings per share were 17 cents compared with a loss of 31 cents a year ago. Revenues rose 8.1 percent in the quarter to $48.6 million from $44.9 million.
Maui Land & Pineapple's cash windfalls were offset by a $2.3 million write-off of obsolete assets, primarily relating to equipment from its fresh-cut pineapple operations; $1.3 million in employee severance costs across all business segments; and a 46 percent increase in general and administrative expenses related to the fresh-cut pineapple and severance issues.
"We acted in the fourth quarter to simplify our business," said David Cole, president and chief executive officer of Maui Land & Pineapple. "We divested our offshore pineapple operations to focus our efforts closer to home and we discontinued our fresh-cut product line to concentrate on more promising product categories."
The fresh-cut pineapple are cut chunks and spears of fresh whole pineapple that are packed in a resealable plastic container with juice surrounding it. The $5.4 million payout from the Customs Service was a result of the Continued Dumping and Subsidy Offset Act of 2000, which provides distribution of antidumping duties to injured domestic producers. Among those receiving severance payments were Don Young, who retired as president and CEO of Kapalua Land Co.; and Doug Schenk, who became a consultant after previously serving as the head of Maui's pineapple unit.
For the year, Maui Land & Pineapple posted net income of $6 million or 83 cents a share, compared with a loss of $5.7 million, or 79 cents a share, in 2002. Full-year revenues increased 14.2 percent to $168.7 million from $147.7 million.
In individual segments last quarter, the company's pineapple unit had an operating profit from continued operations of $3.3 million compared with an operating loss of $3.5 million a year ago.
Kapalua Resort had an operating loss of $1.3 million in the fourth quarter compared with an operating profit of $481,000 a year ago.
And the commercial and property segment, which was substantially reduced earlier in the year by the third-quarter sales of Queen Kaahumanu center and Napili Plaza, posted an operating loss of $470,000 in the quarter compared with an operating profit of $386,000 a year ago.
