Maui Land narrows
loss to $2.4M
Maui Land & Pineapple Co. pared its second-quarter loss nearly in half from a year ago as it improved operating results and cut expenses while continuing to reshape its business.
The net loss was $2.4 million, or 33 cents a share, compared with a net loss of $4 million, or 56 cents a share, a year ago.
Despite the better results, the company's operating losses were absorbed across the board with MLP's pineapple segment contributing the brunt with a $2.5 million shortfall. The resort business was down $186,000; the development segment off $33,000; and the commercial and property unit, which largely has been discontinued since Queen Kaahumanu Center and Napili Plaza were sold in the third quarter of 2003, lost $10,000.
Revenues declined 7.6 percent to $30 million from $32.5 million, partially because of $801,000 in lost business from the two shopping outlets, but mostly because pineapple sales were off $3.2 million.
"Results are largely in line with expectations as we re-engineer our pineapple, hospitality and development units," said David Cole, chairman, president and chief executive officer of MLP.
He said the company has hired a design firm to develop plans for a new processing facility that will replace the present pineapple canner and provide a food-processing facility for other local farmers.
MLP said it received better average pricing for its canned and fresh pineapple products in the second quarter even though sales volume was lower for both than a year ago. Total revenues fell 16 percent to $16.9 million from $20.2 million.
The company said its shipping costs were reduced in the quarter because improved post-harvest practices put into place earlier this year resulted in an extended shelf life for fresh pineapple. That allowed the company to use surface shipment to the West Coast rather than costlier air shipment.
Other initiatives that MLP undertook in the second quarter were the signing of an agreement to purchase the 196-room Kapalua Bay Hotel resort, and the beginning of infrastructure improvements for the next phase of Plantation Estates.
The resort segment boosted revenues 14.2 percent to $12 million from $10.5 million last quarter as room occupancies at Kapalua rose 12 points over a year ago. The higher room occupancies resulted in increased golf play, merchandise sales, hotel ground lease revenues and income from the Kapalua Villas residential rental program. The Kapalua Realty operations also lifted revenues because of an increase in the number of residential units being resold and a gain in the average price of the units.
