Maui Land and Pineapple posts $4M loss
Maui Land and Pineapple Co. said yesterday it more than doubled its fourth-quarter loss as revenues slid in its resort and agriculture segments.
For the three months ending Dec. 31, the Kahului-based company lost $4 million, or 51 cents a diluted share, compared with a $1.5 million loss, or 20 cents a diluted share, last year. Revenue dropped by 44 percent to $25.9 million from $46.5 million in 2006, the company said in a statement yesterday.
Full-year results showed modest improvement, with earnings of $8 million, or $1.03 a share, up 11 percent from $7.2 million, or $1 a share, last year. Revenue was $154.1 million, down 14 percent from $178.9 million a year earlier.
"Fourth-quarter results reflect extensive redevelopment programs in the resort segment, and restructuring costs in the agriculture segment," David Cole, chairman, president and CEO, said in a statement.
The community development segment posted an operating profit of $6.9 million for the fourth quarter, down 32 percent from $10.1 million in 2006, on revenues of $6.8 million for the quarter, nearly a third of its $18.8 million a year earlier.
Earnings were hurt by lower income from non-core land sales, partially offset by increased income from Kapalua Bay Holdings LLC, the company said.
MLP's resort segment was hurt by the closure of the Ritz-Carlton Kapalua hotel beginning in July for extensive renovations, which decreased activity at the Kapalua Resort. The closure of the Village Course and partial closure of the Bay Course for a re-seeding of the golf greens also negatively impacted revenues, the company said.
The segment reported an operating loss of $5 million for the fourth quarter, widening its loss of $3 million in 2006. Revenue declined 32 percent to $7.5 million from $11 million in 2006. For the full year, the segment had a loss of $11.7 million, nearly double its loss of $6.4 million a year earlier, on revenue of $35.8 million, down 22 percent from $46.1 million in 2006.
MLP's agriculture operations were negatively impacted by the discontinuation of the sale of processed pineapple products, as the company refocused on production of fresh pineapple.
The segment had an operating loss of $8 million in the fourth quarter, narrowing slightly from its loss of $8.9 million in 2006. Revenues in the quarter declined 28 percent to $10.1 million compared to $14 million. For the full year, the segment had an operating loss of $26.6 million compared to a loss of $18.9 million in 2006. Revenue was $47.5 million, down 27 percent from $65.2 million a year earlier.
The full-year loss includes charges of $8.5 million for contract cancellations, employee severance and equipment and supply write-offs as a result of the closure of solid-pack pineapple canning and processing operations.