Maui Land & Pineapple loses $30.4M amid restructuring


POSTED: Wednesday, March 10, 2010

Maui Land & Pineapple Co., which ceased its pineapple operations late last year, reported a narrower loss in 2009's final quarter than the same period in 2008.

The company posted a loss of $30.4 million, or $3.76 a share, compared with $70.6 million, or $8.86 a share, a year earlier.

For the full year the company lost $123.3 million, or $15.33 a share, versus a loss of $79.4 million, or $9.98 a share, in 2008.

The annual figure includes a $22.8 million loss due to the sale of the agricultural segment's assets, employee severance and cancellation of contracts.

In November the company discontinued its 97-year-old pineapple operations, resulting in a 45 percent reduction in work force. Since then, Haliimaile Pineapple Co. started pineapple operations and bought some of its operating equipment and supplies for about $680,000.

Chief Financial Officer John Durkin said 2009 “;was a transition year for the company,”; which will focus on keeping down costs this year.

Revenue for the fourth quarter of 2009 was $9.2 million compared with $10 million in the year-ago period. For the year, revenue slipped to $50.4 million from $51.1 million.


Other significant charges in 2009 include a $47.2 million loss from the company's equity investment in Kapalua Bay Holdings LLC and $10.6 million for the write-off of deferred developments costs.

The company's resort segment had a $4.7 million operating loss in the fourth quarter, compared with a loss of $6.6 million in 2008's fourth quarter. Revenue declined to $6.9 million from $8.5 million in the fourth quarter of 2008.

The revenue drop is reflective of a decline in visitors and visitor spending.

The company said cost reductions were responsible for the lower operating losses.

“;One small example is that we used to provide free resort shuttle for our guests,”; Durkin said.”;We've outsourced that to Speedy Shuttle, and they've replaced our old equipment and have been providing a higher level of service for a lower or similar price.”;

The company has had financial troubles recently. Last month it announced it would stop medical and life insurance payments for its nonunion retirees. The company now has more nonunion retirees than active employees, not to mention many more retired union employees.