A&B Reports 1st Quarter 2004 Earnings of $27.1 Million; Earnings Per Share Of $0.64 Up 49 Percent.Business Editors HONOLULU--(BUSINESS WIRE)--April 21, 2004 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 NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ALEX) today reported first quarter 2004 net income of $27,100,000, or $0.64 per share. Net income in the first quarter of 2003 was $17,600,000, or $0.43 per share. Revenue in the first quarter of 2004 was $344,900,000, compared with revenue of $273,400,000 in the first quarter of 2003. COMMENTS ON QUARTER, OUTLOOK "Results in the quarter were excellent," said 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:
intr.v. co·in·cid·ed, co·in·cid·ing, co·in·cides 1. To occupy the same relative position or the same area in space. 2. To happen at the same time or during the same period. 3. with favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. market conditions in 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. . Most importantly Adv. 1. most importantly - above and beyond all other consideration; "above all, you must be independent" above all, most especially , having acquired all the undeveloped land at Wailea 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. in October October: see month. 2003, we are encouraged by the strong initial sales at Golf Vistas, our first transactions at Wailea. In addition, sales performance was strong at a number of other Hawaii development projects. "Matson Matson is a surname, and may refer to:
"Improved income for food products is likely to be a one-quarter event. Sugar prices are lower than the prior year and sugar production is significantly below plan as heavy rainfall has delayed harvesting. "Overall, A&B is on track to achieve increased earnings in 2004."
TRANSPORTATION--OCEAN TRANSPORTATION
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Quarter Ended March 31
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Dollars in Millions 2004 2003 Change
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Revenue $196.5 $186.1 6%
Operating Profit $18.6 $12.1 54%
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Volume (Units)
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Hawaii Containers 39,700 39,000 2%
Hawaii Automobiles 36,300 37,500 -3%
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. improved strongly in ocean transportation. During the first quarter of 2003, Matson's expenses were higher than normal due to aftereffects aftereffects after npl → Nachwirkungen pl of West Coast labor disruptions late in 2002. The improvement this quarter was primarily due to improved cargo yield and mix, higher container volumes in the Hawaii and Guam Guam (gwäm), Chamorro Guåhan, the largest, most populous, and southernmost of the Mariana Islands (see also Northern Mariana Islands, an unincorporated territory of the United States (2005 est. pop. services, several one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. vessel revenue-charters and improved operating results from joint ventures. Partially offsetting the improvements were higher costs for longshore long·shore adj. Occurring, living, or working along a seacoast. [Short for alongshore.] services, vessel operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and depreciation. The decrease in 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 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. was primarily the result of an unusually high level of carryover carryover n. in taxation accounting, using a tax year's deductions, business losses or credits to apply to the following year's tax return to reduce the tax liability. (See: carryback) volume in early 2003, following the port disruptions on the West Coast.
TRANSPORTATION--LOGISTICS SERVICES
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Quarter Ended March 31
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Dollars in Millions 2004 2003 Change
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Revenue $74.1 $51.0 45%
Operating Profit $1.0 $0.5 100%
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Record revenue for Matson Integrated Logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. , Inc. in the first quarter of 2004 was due mainly to greater customer volume, principally in the highway sector. Along with internal growth, the revenue boost reflected an acquisition in late 2003. At $1.0 million, operating profit in the quarter doubled from the same period in 2003.
PROPERTY DEVELOPMENT & MANAGEMENT--LEASING
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Quarter Ended March 31
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Dollars in Millions 2004 2003 Change
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Revenue $20.8 $19.1 9%
Operating Profit $9.5 $8.6 10%
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Occupancy Rates
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Mainland 94% 87% 7%
Hawaii 90% 89% 1%
Growth in first quarter 2004 revenue and operating profit was primarily the result of higher occupancies in the 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. leasing portfolio and higher contributions from replacement income-producing properties acquired since the first quarter of 2003.
PROPERTY DEVELOPMENT & MANAGEMENT--SALES
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Quarter Ended March 31
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Dollars in Millions 2004 2003 Change
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Revenue(1) $40.1 $16.7 2.4X
Operating Profit(1) $19.0 $11.6 64%
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(1) Before removing amounts 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. . The first quarter of 2004 was an unusually strong period for property sales. Lots or units in residential and industrial projects were a large part of the mix, as opposed op·pose v. op·posed, op·pos·ing, op·pos·es v.tr. 1. To be in contention or conflict with: oppose the enemy force. 2. to sales of large developed or undeveloped properties. Prominent among the sales during the first quarter of 2004 were seven lots at Maui Business Park, nine lots at Mill Town Center on Oahu Oahu (ōä`h  ), island (1990 pop. 836,231), 593 sq mi (1,536 sq km), third largest and chief island of Hawaii, part of Honolulu co., between Molokai and Kauai. , seven and one-half floors at Alakea Corporate Tower
in Honolulu Honolulu (hŏn'əl`l, hōnō–), city (1990 pop. and 21 resort residential lots at Wailea Golf Vistas. A
71-acre parcel on Maui also was sold and there were 11 sales of homes at
the Kai kaiNoun NZ informal food [Maori] kai noun N.Z. (informal) food, grub (slang) provisions, fare, board, commons, eats (slang Lani joint venture on Oahu, closing out that project. Among the larger sale transactions in the first quarter of 2003 were a seven-acre commercial parcel on Maui, three lots at Maui Business Park, and five residential lots at The Summit at Kaanapali. Joint venture sales included 15 homes at Kai Lani and 17 at Holoholo Ku on the island of Hawaii.
FOOD PRODUCTS
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Quarter Ended March 31
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Dollars in Millions 2004 2003 Change
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Revenue $13.4 $14.9 - 10%
Operating Profit $2.6 $1.9 37%
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Tons Sugar Produced 11,700 18,700 - 37%
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In the first quarter of 2004, lower food products revenue resulted primarily from lower production and lower prices for raw sugar. Wet weather unfavorably affected harvest (tool, networking) Harvest - A highly scalable, customisable system for discovering resources on the Internet. Version: 1.3. http://tardis.ed.ac.uk/harvest/. operations. The improvement in operating profit was due to a combination of higher electrical power sales and greater sales of specialty sugars. COMMENTS ON TAX RATE, BALANCE SHEET Net income reflects an estimated tax Federal and state tax laws require a quarterly payment of estimated taxes due from corporations, trusts, estates, non-wage employees, and wage employees with income not subject to withholding. rate of 37.5 percent. Comparing the quarter-end balance sheets with year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 2003, the changes were relatively few and quite small. The investments account rose by $14 million, primarily reflecting investment in the Hokua luxury high-rise joint venture. The $24 million rise in shareholders equity was primarily due to income, but a portion of the increase also was due to the exercise of stock options. COMMENTS ON CASH FLOW, CAPEX Comparing the first quarters of 2004 and 2003, operating cash flows Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. increased by a net $43 million. The increase was due principally to better operating results in 2004 and, especially, the sales of real estate. Capital expenditures were $3 million lower, primarily the result of timing. Alexander & Baldwin, Inc., headquartered in Honolulu, is engaged in ocean transportation and intermodal in·ter·mod·al adj. Relating to transportation by more than one means of conveyance, as by truck and rail: intermodal transport. 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 Integrated Logistics, 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 21 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 2003 annual report to shareholders. These factors could cause actual results to differ materially from those projected in the statements.
ALEXANDER & BALDWIN, INC.
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2004 and 2003 First-Quarter Results
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2004 2003
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Three Months Ended March 31:
Revenue $344,900,000 $273,400,000
Income From Continuing Operations $26,800,000 $10,700,000
Discontinued Operations: Properties(1) $300,000 $6,900,000
Net Income $27,100,000 $17,600,000
Basic Share Earnings
Continuing Operations $0.63 $0.26
Net Income $0.64 $0.43
Diluted Share Earnings
Continuing Operations $0.62 $0.26
Net Income $0.63 $0.42
Average Shares Outstanding 42,300,000 41,400,000
(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,
--------------------
2004 2003
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Revenue:
Transportation
Ocean Transportation $196.5 $186.1
Logistics Services 74.1 51.0
Property Development & Management
Leasing 20.8 19.1
Sales 40.1 16.7
Less Amounts Reported In
Discontinued Operations - (14.4)
Food Products 13.4 14.9
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Total Revenue $344.9 $273.4
========= ==========
Operating Profit, Net Income:
Transportation
Ocean Transportation $18.6 $12.1
Logistics Services 1.0 0.5
Property Development & Management
Leasing 9.5 8.6
Sales 19.0 11.6
Less Amounts Reported In
Discontinued Operations (0.4) (11.2)
Food Products 2.6 1.9
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Total Operating Profit 50.3 23.5
Interest Expense (3.3) (2.6)
Corporate Expenses (4.1) (4.1)
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Income From Continuing Operations
Before Income Taxes 42.9 16.8
Income Taxes (16.1) (6.1)
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Income From Continuing Operations 26.8 10.7
Discontinued Operations: Properties 0.3 6.9
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Net Income $27.1 $17.6
========= ==========
Basic Earnings Per Share, Continuing Operations $0.63 $0.26
Basic Earnings Per Share, Net Income $0.64 $0.43
Average Shares 42.3 41.4
Consolidated Balance Sheets
(In Millions)
March 31, December 31,
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2004 2003
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(Unaudited)
ASSETS
Current Assets $253 $247
Investments 82 68
Real Estate Developments 82 77
Property, Net 1,061 1,079
Capital Construction Fund 165 165
Other Assets 123 124
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Total $1,766 $1,760
============= ============
LIABILITIES & EQUITY
Current Liabilities $177 $183
Long-Term Debt 320 330
Post-Retirement Benefit Obligs. 44 44
Other Long-Term Liabilities 37 36
Deferred Income Taxes 353 356
Shareholders' Equity 835 811
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Total $1,766 $1,760
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Consolidated Statements of Cash Flows
(In Millions)
Quarter Ended
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March 31,
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2004 2003
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(Unaudited)
Operating Cash Flows $50 $7
Capital Expenditures (9) (12)
CCF Withdrawals/(Deposits), Net (1) (1)
Proceeds From Issuance of (Payment of)
Debt, Net (9) 14
Dividends Paid (9) (9)
All Other, Net (7) 2
------------- ------------
Increase/(Decrease) In Cash $15 $1
============= ============
Depreciation $19 $18
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