Maui Land earnings
take hit from revamp
Maui Land & Pineapple Co. lost $2.2 million in the third quarter while results from its pineapple, resort and commercial and property divisions all came in lower than a year ago.
Revenue fell 31 percent to $34.7 million from $50.5 million.
Maui Land's net income of $9.4 million in the third quarter of 2003 included the company's $1.9 million pre-tax gain from the sale of Napili Plaza and a $13.5 million pre-tax gain from the sale of Queen Kaahumanu Center.
The net loss per share was 30 cents last quarter compared with a gain of $1.31 a share a year ago.
"Results reflect continued investment in all segments," said David Cole, chairman, president and chief executive of Maui Land.
The company's largest loss came from its pineapple unit amid a strategic shift to fresh fruit from canned pineapple and the resulting costs for seed development, planting and cultivation.
The pineapple division had an operating loss of $3.4 million in the quarter compared with a loss of $133,000 a year ago as revenues plunged 25.9 percent to $19 million from $25.7 million. Last quarter, the company wrote off $1.3 million in pineapple-related property and equipment because those assets are not needed.
MLP said its fresh-fruit emphasis resulted in a sales increase while the average volume of canned pineapple sales decreased in the quarter. Nevertheless, the average sales prices for canned pineapple was 7 percent higher than a year ago while fresh pineapple sales prices were "static" and reflected a soft market condition, according to the company.
Maui Land said it will spend an estimated $5.4 million this year for field preparation and seed development to accomplish its pineapple production shift. The company noted that because of the 18- to 23-month growing cycle for the first crop, the benefits will not be reflected in the results until next year through 2008.
MLP's resort unit's operating loss widened to $835,000 from $12,000, partially due to new union contracts and the costs of deferred maintenance of facilities. Revenues edged up 4.1 percent to $11.4 million from $11 million as hotel and condominium occupancy increased along with paid rounds of golf and higher merchandise sales.
