A&B Reports 1st Quarter 2003 Earnings Per Share of $0.43.Business Editors HONOLULU--(BUSINESS WIRE)--April 22, 2003 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 net income for the first quarter of 2003 was $17,600,000, or $0.43 per basic share. Net income in the first quarter of 2002 was $9,800,000, or $0.24 per share. Revenue in the first quarter of 2003 was $273,400,000, compared with $235,000,000 in 2002. Comments on Quarter, Outlook "There was no question that our earnings in the first quarter of 2003 would be better than the depressed results in the first quarter of 2002, when the effects of 9/11 were still being felt at Matson Matson is a surname, and may refer to:
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:
"Results of the first quarter were generally consistent with that outlook. The winding-down of military activity in Iraq Iraq or Irak (both: ēräk`, ĭrăk`), officially Republic of Iraq, republic (2005 est. pop. 26,075,000), 167,924 sq mi (434,924 sq km), SW Asia. creates more favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. conditions for tourism, a key driver of Hawaii's economy. Asian tourism, however, has been beset be·set tr.v. be·set, be·set·ting, be·sets 1. To attack from all sides. 2. To trouble persistently; harass. See Synonyms at attack. 3. by a number of challenges that will continue to dampen Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and visitation VISITATION. The act of examining into the affairs of a corporation. 2. The power of visitation is applicable only to ecclesiastical and eleemosynary corporations. 1 Bl. Com. 480; 2 Kid on Corp. 174. to 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. . Current indicators suggest a soft second quarter in Hawaii tourism, with strengthening occurring in the third quarter. "The first quarter did produce solid results. Matson's freight volumes were strong, its pricing environment stable and productivity improvements had a positive impact at the Sand Island terminal in Honolulu Honolulu (hŏn'əl  `l, hōnō–), city (1990 pop. . Real estate results were favorable, with a large
property sale on 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. most notable. Our real estate acquisition activity
also was favorable for the quarter. As noted in prior communications,
pension costs will offset a portion of the improvements in operating
performance anticipated during 2003. The first quarter increase in
pension cost reduced earnings per share by $0.05, compared with
2002."
Transportation -- Ocean Transportation Dollars in Millions 2003 Q1 2002 Q1 Change ------------------------------------------------------------------- Revenue $186.1 $155.3 20% Operating Profit $12.1 $2.4 5.0x ------------------------------------------------------------------- Improved revenue and 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. in the first quarter of 2003 compared with the first quarter of 2002 were due mainly to the recovery of cargo volumes as compared with the period that followed the events of 9/11, rate actions taken during 2002 and 2003, and productivity improvements at the Sand Island container terminal A container terminal is a facility where cargo containers are transhipped between different transport vehicles, for onward transportation. The transhipment may be between ships and land vehicles, for example trains or trucks, in which case the terminal is described as a . These favorable factors were offset partially by increased vessel operating costs operating costs npl → gastos mpl operacionales following the re-introduction Noun 1. re-introduction - a proposal of something previously rejected; "they avoided a re-introduction of the old terminology" proposal - something proposed (such as a plan or assumption) , in late 2002, of an eighth vessel in the Hawaii service, and higher pension costs. Continued operation of the additional vessel during the first quarter helped to accommodate additional container and 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 demand. Numbers of Units 2003 Q1 2002 Q1 Change ------------------------------------------------------------------- Hawaii Service: Total Containers 39,000 35,700 9% Total Automobiles 37,500 24,500 53% ------------------------------------------------------------------- In the Hawaii service, greater total container and automobile volumes reflected the recovery of cargo demand from the period following the events of 9/11 and the carriage carriage, wheeled vehicle, in modern usage restricted to passenger vehicles that are drawn or pushed, especially by animals. Carriages date from the Bronze Age; early forms included the two-wheeled cart and four-wheeled wagon for transporting goods. of automobiles No invention has so transformed the landscape of the United States as the automobile, and no other country has so thoroughly adopted the automobile as its favorite means of transportation. that had been deferred during longshore long·shore adj. Occurring, living, or working along a seacoast. [Short for alongshore.] labor disruptions late in 2002. Transportation -- Intermodal in·ter·mod·al adj. Relating to transportation by more than one means of conveyance, as by truck and rail: intermodal transport. Services Dollars in Millions 2003 Q1 2002 Q1 Change ------------------------------------------------------------------- Revenue $51.0 $40.3 27% Operating Profit $0.5 $0.1 5.0x ------------------------------------------------------------------- Growth in revenue and operating profit for Matson Intermodal Services, Inc. was mainly the result of business added during 2002. Revenue for intermodal services includes the total amount billed to customers for transportation services. The primary costs consist of purchased transportation for that cargo. As a result, the profit margins in this business are lower than in other A&B operations. Property Development & Management -- Leasing Dollars in Millions 2003 Q1 2002 Q1 Change ------------------------------------------------------------------- Revenue $19.1 $17.8 7% Operating Profit $8.6 $8.2 5% ------------------------------------------------------------------- Prior to excluding properties treated as discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. (described further below), growth in revenue and operating profit from property leasing activities in the first quarter of 2003 was the result of higher occupancies for Hawaii properties and the purchase of income-producing properties during 2002 and 2003, partially offset by lower occupancy rates Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) 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 and sales of properties. The lower Mainland The Lower Mainland is the name that residents of British Columbia apply to the region surrounding the City of Vancouver. According to the 2001 census, over 2.2 million people live in the region; sixteen of the province's thirty most populous municipalities are located there occupancy rate was due mainly to a large vacancy VACANCY. A place which is empty. The term is principally applied to cases where an office is not filled. 2. By the constitution of the United States, the president has the power to fill up vacancies that may happen during the recess of the senate. that occurred at the end of 2002, but which was filled during the first quarter of 2003. Occupancy Rates 2003 Q1 2002 Q1 Change ------------------------------------------------------------------- Mainland 87% 91% -4% Hawaii 89% 87% 2% ------------------------------------------------------------------- Property Development & Management -- Sales Dollars in Millions 2003 Q1 2002 Q1 Change ------------------------------------------------------------------- Revenue $16.7 $37.3 -55% Operating Profit $11.6 $8.9 30% ------------------------------------------------------------------- Prior to treating several properties as discontinued operations, property sales in the first quarter of 2003 consisted of five commercial properties (including a seven-acre parcel on Maui), three lots at Maui Business Park and residential resort homes and home lots on Maui. Sales in the first quarter of 2002 included a seven-building distribution complex in Texas, smaller commercial properties, one lot at Maui Business Park and residential resort homes and lots on Maui. Variability in sales revenue and operating profit is an inherent characteristic of property sales activity. The sales of certain income-producing assets -- even individual buildings within a real estate portfolio -- are reported as "discontinued operations" if their earnings and cash flows are separately identifiable and are material. The after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. gains on those sales, and the current and historical earnings of all of these properties, are classified in the financial statements under the caption "Discontinued Operations: Properties." Food Products Dollars in Millions 2003 Q1 2002 Q1 Change ------------------------------------------------------------------- Revenue $14.9 $16.6 -10% Operating Profit $1.9 $2.1 -10% ------------------------------------------------------------------- Revenue and operating profit decreases in the first quarter of 2003 were mainly due to lower raw sugar sales, which resulted from lower production, and higher operating costs. The lower sales were partially offset by higher prices for raw sugar. A later-than-normal startup (STARTing UP) "At startup" means when the computer is first turned on or when a program is first loaded. See Startup folder. of the sugar factory, following off-season maintenance, and wet harvesting conditions were the primary reasons for lower sugar production. Balance Sheet Comments During the first quarter of 2003, the Company contributed land and improvements with a carrying cost Noun 1. carrying cost - the opportunity cost of unproductive assets; the expense incurred by ownership carrying charge opportunity cost - cost in terms of foregoing alternatives of $27.7 million to the Kukui'Ula joint venture. This transfer reduced Real Estate Developments and raised Investments. A portion of the $28.9 million increase in long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. was due to $14.6 million of debt assumed as part of a real estate purchase. Cash Flow Comment Higher cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses was due principally to the timing of payments for income taxes during the 2002 first quarter, higher net income, and the timing of real estate sales and expenditures for real estate projects that are treated as inventory and classified as current assets Current Assets Appearing on a company's balance sheet, it represents cash, accounts receivable, inventory, marketable securities, prepaid expenses, and other assets that can be converted to cash within one year. . Alexander & Baldwin, Inc., headquartered in Honolulu, is engaged in ocean transportation and intermodal services, through its subsidiaries, 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. and Matson Intermodal System, Inc.; in property development and management, through A&B Properties, Inc.; and in food products, through Hawaiian Hawaiian, member of the Polynesian group of the Austronesian family of languages. Of the fewer than 10,000 people who speak Hawaiian, only a few hundred are native speakers, but the language is taught in some Hawaiian schools and remains important as a symbol of Commercial & Sugar Company and Kauai Kauai (kou'wī`), circular island (1990 pop. 51,177), 549 sq mi (1,422 sq km), 32 mi (52 km) in diameter, N Hawaii, separated from Oahu island to the southeast by Kauai Channel. Lihue (1990 pop. Coffee Company, Inc. 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·ing adj. 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 19 of the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , which is included in the Company's 2002 annual report to shareholders, and in subsequent filings of Forms 10-Q. These factors could cause actual results to differ materially from those projected in the statements.
ALEXANDER & BALDWIN, INC.
2003 and 2002 First-Quarter Results
2003 2002
------------- -------------
Three Months Ended March 31:
----------------------------
Revenue $273,400,000 $235,000,000
Income From Continuing Operations $10,700,000 $4,600,000
Discontinued Operations: Properties(1) $6,900,000 $5,200,000
Net Income $17,600,000 $9,800,000
Basic Share Earnings
Continuing Operations $0.26 $0.11
Net Income $0.43 $0.24
Diluted Share Earnings
Continuing Operations $0.26 $0.11
Net Income $0.42 $0.24
Average Shares Outstanding 41,400,000 40,600,000
(1) "Discontinued Operations: Properties" consists of sales, or
intended sales, of certain lands and buildings that are material
and have separately identifiable earnings and cash flows.
Industry Segment Data, Net Income
(In Millions, Except Per Share Amounts, Unaudited)
Three Months Ended
----------------------
March 31,
----------------------
2003 2002
----------- ----------
Revenue:
-------------------------------------
Transportation
Ocean Transportation $186.1 $155.3
Intermodal Services 51.0 40.3
Property Development & Management
Leasing 19.1 17.8
Sales 16.7 37.3
Less Amounts Reported In
Discontinued Operations (14.4) (32.3)
Food Products 14.9 16.6
----------- ----------
Total Revenue 273.4 235.0
=========== ==========
Operating Profit, Net Income:
-------------------------------------
Transportation
Ocean Transportation 12.1 2.4
Intermodal Services 0.5 0.1
Property Development & Management
Leasing 8.6 8.2
Sales 11.6 8.9
Less Amounts Reported In
Discontinued Operations (11.2) (8.2)
Food Products 1.9 2.1
----------- ----------
Total Operating Profit 23.5 13.5
Interest Expense (2.6) (3.0)
Corporate Expenses (4.1) (2.9)
----------- ----------
Income From Continuing Operations
Before Income Taxes 16.8 7.6
Income Taxes (6.1) (3.0)
----------- ----------
Income From Continuing Operations 10.7 4.6
Discontinued Operations: Properties 6.9 5.2
----------- ----------
Net Income $17.6 $9.8
=========== ==========
Basic Earnings Per Share, Continuing
Operations $0.26 $0.11
Basic Earnings Per Share, Net Income $0.43 $0.24
Average Shares 41.4 40.6
Consolidated Balance Sheets
-------------------------------------
(In Millions)
March 31, December 31,
----------- ----------
2003 2002
----------- ----------
(Unaudited)
ASSETS
Current Assets 258.5 233.7
Investments 55.4 32.9
Real Estate Developments 21.9 42.0
Property,
Net 960.0 942.6
Capital Construction Fund 209.7 208.4
Other
Assets 132.1 138.0
----------- ----------
Total 1,637.6 1,597.6
=========== ==========
LIABILITIES & EQUITY
Current Liabilities 154.5 151.1
Long-Term Debt 276.7 247.8
Post-Retirement Benefit Obligs. 42.8 42.6
Other Long-Term Liabilities 95.5 94.6
Deferred Income Taxes 340.9 337.8
Shareholders' Equity 727.2 723.7
----------- ----------
Total 1,637.6 1,597.6
=========== ==========
Consolidated Statements of Cash Flows
-------------------------------------
(In Millions)
Quarter Ended
----------------------
March 31,
----------------------
2003 2002
----------- ----------
(Unaudited)
Operating Cash Flows $6.9 $(38.3)
Capital Expenditures (11.7) (8.2)
CCF Deposits, Net (1.3) (13.0)
Proceeds From Issuance of
(Payment of) Debt, Net 14.3 44.5
Dividends Paid (9.3) (9.1)
All Other, Net 1.8 17.0
----------- ----------
Increase/(Decrease) In Cash $0.7 $(7.1)
=========== ==========
Depreciation $(17.7) $(17.9)
=========== ==========
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