A&B 2nd Quarter 2000 Earnings Per Share Up 28%; Property Transactions, Ocean Transportation Led Improvement.Business Editors HONOLULU--(BUSINESS WIRE)--July 20, 2000 Alexander & Baldwin Baldwin, cities, United States Baldwin. 1 Uninc. city (1990 pop. 22,719), Nassau co., SE N.Y., on the south shore of Long Island, on Baldwin Bay; settled 1640s. A fishing center and summer resort, it has varied manufactures. , Inc. (Nasdaq:ALEX) today reported that its second quarter 2000 net income increased 21 percent, to $28,243,000, and that its second quarter earnings per share increased 28 percent, to $0.69 per share, on fewer shares outstanding. Net income in the second quarter of 1999 was $23,249,000, or $0.54 per share. Revenue in the second quarter of 2000 was $276,368,000, compared with revenue of $263,843,000 in the second quarter of 1999. After an accounting change, net income for the first half of 2000 was $54,674,000, or $1.32 per share, versus $39,087,000, or $0.90 per share in the first half of 1999. The accounting change resulted in a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. , non-cash increase to first quarter 2000 earnings of $12,250,000. Revenue in the first half of 2000 was $496,259,000, compared with $461,285,000 in the first half of 1999. Second Quarter Results Very Good "Results for the second quarter were very good," said W. Allen Al·len , Edgar 1892-1943. American anatomist who is noted for his studies of hormones and for the discovery (1923) of estrogen. Doane Doane is a surname, and may refer to:
adj. Being between 10 and 99 percent: double-digit inflation. growth in property leasing income. As we had expected, the negatives in the quarter were low sugar prices and a continuing drought drought, abnormally long period of insufficient rainfall. Drought cannot be defined in terms of inches of rainfall or number of days without rain, since it is determined by such variable factors as the distribution in time and area of precipitation during and before in the state of Hawaii Hawaii, island, United States Hawaii, island (1990 pop. 120,217), 4,037 sq mi (10,456 sq km), largest and southernmost island of the state of Hawaii and coextensive with Hawaii co.; known as the Big Island. , which hurt food products results. "Hawaii's economy continues to show improvement and the outlook for next year indicates moderate growth in the State, after years of little, or no growth. The strength of the U.S. economy appears to be the principal contributor to Hawaii's re-emerging economic growth." Consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: Operating Profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. Higher In 2nd Quarter, 1st Half In the second quarter of 2000, A&B's consolidated operating profit was $53.1 million. That was $8.8 million, or 20-percent, higher than the $44.4 million operating profit in the second quarter of 1999. For the first half, operating profit was $83.7 million, an increase of $5.8 million, or seven percent, versus $77.9 million in the first half of 1999. In both the second quarter and first half of 2000, operating profit improved in ocean transportation and in property development and management, but operating results for the food products segment were lower. Interest expense in both periods of 2000 was higher than in the corresponding periods in 1999, reflecting both higher rates and increased debt balances. Corporate expenses were lower in both periods. Matson Operating Profit Up 10 Percent In the second quarter of 2000, ocean transportation operating profit was $27.9 million. That was an increase of $2.6 million, or 10 percent, from $25.3 million in the second quarter of 1999. The improvement was made in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite a virtual doubling of bunker bunk, bunker large storage bin. bunk forage forage, usually ensilage stored in a large storage bunk and made available to cattle or other livestock along a face of the storage. fuel prices from the year-earlier quarter, and it was due primarily to higher Hawaii auto volume, an improved mix of cargo and better results for non-Hawaii operations. Second quarter 2000 Hawaii service container (1) Software that acts as a parent program to hold and execute a set of commands or to run other software routines. (2) A data structure that holds one or more different types of data. See metafile and OLE. volume was about the same as in the 1999 second quarter, but automobile automobile, self-propelled vehicle used for travel on land. The term is commonly applied to a four-wheeled vehicle designed to carry two to six passengers and a limited amount of cargo, as contrasted with a truck, which is designed primarily for the transportation of volume was 34-percent higher. In the first half of 2000, ocean transportation operating profit was $47.8 million. This was an increase of $4.2 million, also 10 percent, from $43.6 million in the first half of 1999. Matson's first half 2000 Hawaii service container volume was two-percent higher than in the 1999 first half, but automobile volume was 49-percent higher. Sale of Maui Maui (mou`ē), island (1990 est. pop. 82,500), 728 sq mi (1,886 sq km), second largest island in the state of Hawaii, separated from the island of Hawaii by the Alenuihaha Channel and from Molokai by the Pailolo Channel. Property Highlights Quarter A&B Properties, Inc. (Properties) carries out the property management and development activities of A&B. In the second quarter of 2000, Properties operating profit was $26.5 million, an increase of $10.2 million, or 62 percent, from $16.3 million a year earlier. For the first half of 2000, operating profit of $34.4 million was up $4.9 million, or 17 percent, from $29.5 million a year earlier. In the second quarter, operating profit from property leasing was $7.6 million. This was $1.2 million, or 19-percent, higher than $6.4 million in the second quarter of 1999. The increase was due primarily to additions to the property portfolio in the latter part of 1999 and higher occupancies. In the first half of 2000, property leasing operating profit was $14.8 million. This was six-percent higher than the $14.0 million earned in the first half of 1999. The first half of 1999 had benefited from the one-time buyout Buyout The purchase of a company or a controlling interest of a corporation's shares. Notes: A leveraged buyout is accomplished with borrowed money or by issuing more stock. of a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. ground lease. Year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. 2000 occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy levels for Mainland Mainland. 1 Island (1991 pop. 14,150), 178 sq mi (461 sq km), N Scotland. The largest of the Orkney Islands, it is also called Pomona. Kirkwall, the seat of the Orkney Islands council area, is on the island. properties averaged 96 percent, versus 93 percent in the first half of 1999. Average occupancy levels for Hawaii properties improved to 85 percent, versus 73 percent in the comparable period of 1999. Property sales revenue totaled $25.0 million in the second quarter of 2000, compared with $27.2 million in the second quarter of 1999. In the second quarter of 2000, operating profit resulting from property sales was $18.9 million, nearly twice the second quarter 1999 operating profit of $9.9 million. Results in the second quarter of 2000 included the planned sale of a ground lease under a Costco Costco Wholesale Corporation (NASDAQ: COST) is the largest membership warehouse club chain in the world based on sales volume, headquartered in Issaquah, Washington, United States,[1] with its flagship warehouse in nearby Seattle. store in Kahului, Maui. Property sales revenue totaled $28.0 million in the first half of 2000, compared with $35.1 million in the first half of 1999. In the first half of 2000, operating profit resulting from property sales was $19.6 million. This was $4.1 million, or 27 percent, higher than the $15.5 million in the first half of 1999. Low Sugar Prices, Drought Impact Food Products' Results In the second quarter of 2000, the food products segment had an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $2.1 million, compared with $2.0 million of operating profit in the second quarter of 1999. In the first half of 2000, food products broke even on an operating basis, compared with operating profit of $3.5 million in the first half of 1999. The primary reasons for the unfavorable comparison were low U.S. raw sugar prices and continuing drought conditions "Drought Conditions" is episode 126 of The West Wing. Plot Senator Rafferty, a new presidential candidate garnered much media attention with a ground-breaking speech about health care. that have lowered sugar production. Alexander & Baldwin, Inc., headquartered in Honolulu Honolulu (hŏn'əl  `l, hōnō–), city (1990 pop. , is
engaged in ocean transportation, through its subsidiary, Matson
Navigation Company Matson Navigation Company, a subsidiary of Alexander & Baldwin, is a private ocean transportation company with roots extending into the late 19th century. It is credited with introducing mass tourism to Hawaii with the opening of the Moana Hotel (now known as the Moana Surfrider Hotel) , Inc, in property development and management, through
A&B Properties, Inc., and in food products. Additional information
about A&B may be found at its web site: www.alexanderbaldwin.com.
Statements in this press release that are not historical facts are
"forward-looking for·ward-look·ingadj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. " statements that involve a number of risks and uncertainties described on page 29 of the Company's 1999 annual report to shareholders. These factors could cause actual results to differ materially from those projected in the statements.
ALEXANDER & BALDWIN, INC.
2000 and 1999 Second-Quarter And First-Half Results
2000 1999
Three Months Ended June 30:
Revenue $276,368,000 $263,843,000
Net Income $ 28,243,000 $ 23,249,000
Basic & Diluted Share Earnings $ 0.69 $ 0.54
Average Shares Outstanding 40,722,000 43,318,000
Six Months Ended June 30:
Revenue $496,259,000 $461,285,000
Income Before Accounting Change $ 42,424,000 $ 39,087,000
Net Income $ 54,674,000 $ 39,087,000
Basic & Diluted Share Earnings:
Income Before Accounting Change $ 1.03 $ 0.90
Net Income $ 1.32 $ 0.90
Average Shares Outstanding 41,427,000 43,438,000
Industry Segment Data, Net Income
(In Thousands)
Three Months Ended Six Months Ended
June 30, June 30,
2000 1999 2000 1999
Revenue:
Ocean Transportation $204,670 $187,836 $395,183 $357,031
Property Devel. & Mgmt.
Leasing 12,409 10,833 24,305 22,420
Sales 24,987 27,179 28,039 35,111
Food Products 33,504 37,269 47,170 45,271
Other 798 726 1,562 1,452
Total Revenue $276,368 $263,843 $496,259 $461,285
Operating Profit, Net Income:
Ocean Transportation $ 27,914 $ 25,318 $ 47,807 $ 43,583
Property Devel. & Mgmt.
Leasing 7,606 6,394 14,790 14,016
Sales 18,917 9,949 19,618 15,489
Food Products (2,060) 2,019 8 3,490
Other 764 690 1,473 1,340
Total Operating Profit 53,141 44,370 83,696 77,918
Interest Expense (5,959) (4,369) (11,306) (8,896)
Corporate Expenses (2,706) (3,100) (6,208) (6,980)
Income Before Taxes
& Accounting Change 44,476 36,901 6,182 62,042
Income Taxes (16,233) (13,652) (23,758) (22,955)
Income Before Acctg. Change 28,243 23,249 42,424 39,087
Cumulative Effect of
Acctg. Change -- -- 12,250 --
Net Income $ 28,243 $ 23,249 $ 54,674 $39,087
ALEXANDER & BALDWIN, INC.
Consolidated Balance Sheets
(In Thousands)
June 30, December 31,
2000 1999
(unaudited)
ASSETS
Current Assets $ 185,841 $ 202,450
Investments 143,703 158,726
Real Estate Developments 62,585 60,810
Property, Net 940,269 928,627
Capital Construction Fund 142,380 145,391
Other Assets 98,595 65,456
Total $ 1,573,373 $ 1,561,460
LIABILITIES & EQUITY
Current Liabilities $ 141,413 $ 142,645
Long-Term Debt 329,249 277,570
Post-Retirement Benefit Obligs. 47,182 60,767
Other Long-Term Liabilities 45,466 51,161
Deferred Income Taxes 364,028 358,354
Shareholders' Equity 646,035 670,963
Total $ 1,573,373 $ 1,561,460
Consolidated Statements of Cash Flows
(In Thousands, Unaudited)
Six Months Ended
June 30,
2000 1999
Operating Cash Flows $ 50,265 $ 49,235
Capital Expenditures (51,764) (27,854)
CCF Withdrawals, Net 1,807 1,466
Proceeds From/
(Payment of) Debt, Net 56,500 (67,430)
Repurchases of Capital Stock (43,294) (15,792)
Dividends Paid (18,625) (19,539)
All Other, Net 808 2,102
Decrease in Cash $ (4,303) $(77,812)
Depreciation $ 34,478 $ 38,973
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