MLP’s profit rises in second quarter

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Maui Land & Pineapple Co. said yesterday it swung to a profit in the second quarter on increased income from sales at the Residences at Kapalua Bay project on a percentage of completion basis.

SECOND-QUARTER NET: $272,000 YEAR-EARLIER LOSS: $3.5 million

The Kahului-based company posted $272,000 in net income, or 3 cents a share, for the quarter, compared to a net loss of $3.5 million, or 44 cents per share, in the same period a year ago.

Revenue was $17.6 million, compared to $38.7 million in 2007.

Financials were released after the market closed.

"Results reflect rising energy related costs in the agriculture segment and falling visitor arrivals in the resort segment," David Cole, president and CEO, said in a statement.

The company, whose operations include pineapple production, ownership of the Kapalua Resort and land development, cut 274 positions after the quarter ended June 30 to reduce annual costs by about $11 million.

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A week after announcing mass layoffs, Maui Land & Pineapple Co. reported a second-quarter profit of $272,000, or 3 cents per share, for this year's second quarter.

That compares to a net loss of $3.5 million, or 44 cents per share, in the same period a year ago. MLP's shares closed at $27.18 on the New York Stock Exchange yesterday, down 4.6 percent. Financials were released after the market closed.

The Kahului-based company had revenues $17.6 million, compared to $38.7 million in 2007.

The earnings reflect rising energy expenses in agricultural operations and lower visitor arrivals in the resort segment, said David Cole, company chairman, president and chief executive officer.

After the end of the quarter June 30, the company restructured its agriculture segment, cutting 204 positions in that business, 46 employees at the Kapalua Resort and 24 workers from corporate services and community development to reduce annual costs by $11 million.

MLP's community development business was the only segment to report a profit in the quarter. It posted an operating profit of $11 million, compared to $8.1 million in the same period last year, from higher income through sales at the Residences at Kapalua Bay.

The company's resort segment posted an operating loss of $5.2 million, up from a loss of $2.8 million a year earlier. Revenue was $8.2 million, or 8 percent lower than $8.9 million a year ago.

A reduction in visitor arrivals and occupancy coupled with higher operating costs were the main reasons for the losses, the company said.

MLP's agriculture operations posted a loss of $4.6 million, down from a $10.6 million loss for last year's second quarter, which includes $5.4 million in charges related to restructuring pineapple operations. Revenue fell 60 percent to $5.3 million from $13.2 million a year ago, primarily due to a reduction in the sales of processed products.

The company, which said this week it raised $40 million by selling convertible notes, or corporate securities exchangeable for common shares, expects continued operating losses for the year as a result of significant increases in energy costs and weather-related problems that have impacted product quality and yield.