A&B Reports 2001 Earnings Per Share of $2.73; Sale of BancWest Stock Boosts 4th Quarter & Year.Business Editors HONOLULU--(BUSINESS WIRE)--Jan. 24, 2002 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 all of 2001 was $110,628,000, or $2.73 in basic earnings per share. Full-year 2000 net income was $90,574,000, or $2.21 per share. Revenue in 2001 was $1,190,073,000, compared with revenue of $1,068,646,000 in 2000. Net income in the fourth quarter of 2001 was $46,368,000, or $1.15 per share. Net income in the fourth quarter of 2000 was $14,546,000, or $0.36 per share. Revenue in the fourth quarter of 2001 was $356,056,000, compared with $261,475,000 in the fourth quarter of 2000. BANK STOCK SALES BOOST INCOME; REAL ESTATE SOLID, SHIPPING LOWER "It is rewarding to see the benefit of our long-standing long-stand·ing adj. Of long duration or existence: a long-standing friendship. long-standing Adjective existing for a long time investments in two 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. banks reflected in 2001 income," 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:
The comparison basis used to analyze the net after-tax returns on a corporate taxable bond and a municipal tax-free bond. , the sale of those stocks -- principally BancWest -- raised A&B's net income by $77.8 million, or $1.92 a share, in an otherwise difficult year. "As you look more deeply into the 2001 financial results, the effects of 9/11 and a generally weak economic environment are evident. Added to these negative economic influences have been internal operating shortfalls, primarily at Matson Matson is a surname, and may refer to:
"For background, the visitor industry is Hawaii's largest business, affecting about one third of all jobs in the State. Travel during the holidays and subsequently has shown a steady recovery in visitors arriving from the U.S. mainland. The prospects for a comparable recovery in visitors from Japan, however, remains clouded by economic issues affecting that country, as well as by the reduced purchasing power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. of the yen. "These external forces directly influence the cargo marketplace for Matson. And, even with continued favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. trends, it would take most of 2002 to regain pre- pre- word element [L.], before (in time or space). pre- pref. 1. Earlier; before; prior to: prenatal. 2. 9/11 levels for the economic measures that influence our businesses most. "In planning for 2002, we have initiated a number of actions to reduce the effects of the near-term near-term adj. Of, for, or involving a short period of time in the near future. downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. . The most significant is the reduction, from eight to seven, in the number of vessels operating in Matson's Hawaii service. Also targeted is a substantial improvement in productivity and costs at Matson's Honolulu Honolulu (hŏn'əl  `l, hōnō–), city (1990 pop. 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 , where expected benefits from a new
container-handling operation, begun in August 2001, will be fully
realized."In any case, it appears that A&B's earnings from core operations in 2002 will be lower than those in 2001, at least for the first two, and possibly three, quarters. "In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite these near-term issues, A&B stands out because of its low debt, the resulting strength of its balance sheet and its high operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. . With those advantages, we remain intent on taking actions that will increase shareholder value." CONSOLIDATED 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, REFLECTING STOCK SALES For all of 2001, A&B's consolidated operating profit was $247.6 million. That was $89.0 million, or 56 percent, higher than the $158.6 million in 2000. The increase resulted primarily from the sale of bank stock holdings and improved results from property leasing and Hawaii agribusiness agribusiness Agriculture operated by business; specifically, that part of a modern national economy devoted to the production, processing, and distribution of food and fibre products and byproducts. , offset, in part, by lower results in ocean transportation, in property sales and from a minority-owned investment in a sugar refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar business. In the fourth quarter of 2001, operating profit was $118.5 million, versus $32.2 million in the comparable period of 2000. This substantial increase resulted primarily from the sale of BancWest stock. Real estate results also were higher in the fourth quarter, but ocean transportation, Hawaii agribusiness and sugar-refining results were lower. Interest expense, both for full-year 2001 and its fourth quarter, was lower than in the corresponding periods in 2000. The decreases reflected both lower debt balances and lower rates. OCEAN TRANSPORTATION REFLECTS VOLUME, OPERATIONAL FACTORS For all of 2001, ocean transportation operating profit was $62.3 million. This was a decrease of $31.4 million, or 34 percent, from $93.7 million in 2000. The decrease resulted primarily from lower cargo volume; much higher-than-expected transitional impacts from the terminal improvement project at Sand Island in Honolulu; and substantially lower results from investments in a shipping operation in Puerto Rico Puerto Rico (pwār`tō rē`kō), island (2005 est. pop. 3,917,000), 3,508 sq mi (9,086 sq km), West Indies, c.1,000 mi (1,610 km) SE of Miami, Fla. and a stevedoring joint venture. These decreases were offset, in part, by a number of cost reduction measures. Matson's total Hawaii service container volume in 2001 was three percent lower than in 2000 and its automobile volume was seven percent lower. In the fourth quarter of 2001, ocean transportation operating profit was $1.9 million. That was a decrease of $17.9 million, from $19.8 million in the fourth quarter of 2000. The decrease resulted primarily from lower cargo volume, principally due to post- post- word element [L.], after; behind. post- pref. 1. After; later: postpartum. 2. Behind; posterior to: postaxial. 9/11 economic effects on Hawaii, and Sand Island terminal transitional impacts. Fourth quarter 2001 container volume in the Hawaii service was nine percent lower than in the 2000 fourth quarter, and its automobile volume was 22 percent lower. A&B PROPERTIES' RESULTS SUSTAINED IN A DIFFICULT PERIOD For full-year 2001, total operating profit from A&B's real estate activities was $52.1 million. This was $2.3 million, or four percent, lower than $54.3 million a year earlier. Property leasing results were higher, but operating profit from the sale of properties was lower. In the fourth quarter of 2001, total operating profit in the real estate business was $10.6 million, an increase of $3.6 million, or 51 percent, from $7.0 million in the fourth quarter of 2000. In 2001, property leasing activities generated $34.1 million in operating profit. This was $4.0 million, or 13 percent, higher than the $30.1 million in 2000. The increase was due primarily to additions to the leased property portfolio and higher occupancy levels in Hawaii properties. Occupancy levels in 2001 for U. S. mainland properties averaged 93 percent, versus 95 percent in 2000; Hawaii occupancy levels improved to 90 percent, versus 86 percent in 2000. In the fourth quarter, operating profit from property leasing was $8.0 million. This was $0.1 million, or one percent, higher than $7.9 million in the fourth quarter of 2000. Property sales revenue totaled $89.2 million in 2001, compared with $46.3 million in 2000. Operating profit resulting from these property sales, however, was $17.9 million, which was $6.3 million, or 26 percent, lower than the ten-year high of $24.2 million in 2000. The mix of sales in 2001 included more lower-margin residential property sales than in 2000. Such variability in sales revenue and operating profit is an inherent characteristic of property sales activity. Property sales totaling $11.9 million took place in the fourth quarter of 2001, compared with $3.8 million in the fourth quarter of 2000. After allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of administrative expenses, these sales produced operating profit of $2.6 million, versus 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 $0.9 million in the fourth quarter of 2000. FOOD PRODUCTS' RESULTS LOWER; 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 REDUCES HARVEST SIZE For all of 2001, food products' operating profit was $5.7 million, compared with $7.5 million in 2000. In the fourth quarter of 2001, the food products segment had an operating loss of $3.9 million, compared with operating profit of $4.6 million in the fourth quarter of 2000. The benefits of higher domestic raw sugar and molasses molasses, sugar byproduct, the brownish liquid residue left after heat crystallization of sucrose (commercial sugar) in the process of refining. Molasses contains chiefly the uncrystallizable sugars as well as some remnant sucrose. prices throughout 2001 were more than offset by a write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of the residual power generation assets of a sugar mill closed in 2000, by nine percent lower production of raw sugar, due mainly to an extended drought, and by lower results from A&B's minority investment in C&H Sugar Company, Inc. A&B's consolidated income statement consolidated income statement An income statement that combines the income statements of two or more organizations. As with other consolidated statements, a consolidated income statement eliminates any funds owed to or due from firms within the same group. also reflects 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. business revaluations in two areas that are associated with the food products segment. The value of A&B's investment in C&H was reduced from $40.1 to $11.5 million, a $28.6 million pretax pre·tax adj. Existing before tax deductions: pretax income. pretax adj [profit] → vor (Abzug der) Steuern change. This impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. reflects C&H's highly leveraged capital structure and the uncertainty of future cash flows required to meet the dividend and redemption requirements of the securities held by A&B. In addition, a panelboard business, 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 DuraGreen, was discontinued dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: in 2001, due to disappointing sales and production problems. The write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of all of the assets associated with this business is included in the after-tax charge against consolidated earnings of $9.2 million. THE "OTHER" SEGMENT: BANK STOCK SALES As announced previously, during 2001, A&B sold all of its holdings in two financial institutions that have historic roots in Hawaii. A stock holding of Pacific Century Financial Corporation (NYSE NYSE See: New York Stock Exchange :BOH BOH Bournemouth (UK) Airport Identifier BOH Bank of Hawaii BOH Board of Health BOH Back Of House BOH Board of Housing (Montana Dept of Commerce) BOH Badge of Honor BOH Bridge Of Hope BOH Bag of Holding ) was closed out in the second quarter of the year, and BNP Paribas BNP Paribas (Euronext: BNP, TYO: 8665 ) is one of the main banks in Europe and France. It was created on 23 May 2000 through the merger of Banque Nationale de Paris (BNP) and Paribas. SA purchased all of the remaining stock of BancWest Corporation (NYSE:BWE BWE Best Week Ever (TV show) BWE Bundesverband Windenergie eV (German Wind Energy Association) BWE Ballast Water Exchange BWE Braunschweig Germany (airport code) ) that it did not already own on December 20, 2001. The 749,000 shares of Pacific Century were sold for $16.2 million. The sale generated a pretax gain of $15.1 million. The 3.4 million shares of BancWest were sold for $118.5 million and that sale generated a pretax gain of $110.3 million. On an after-tax basis, these gains totaled $77.8 million, or $1.92 per share. Alexander & Baldwin, Inc., headquartered in Honolulu, 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 through Hawaiian Commercial & Sugar Company and Kauai 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" statements that involve a number of risks and uncertainties related to the economic and political effects of the events of September 11, 2001 as well as those described on page 31 of the Company's 2000 annual report to shareholders. These factors could cause actual results to differ materially from those projected in the statements. A&B webcasts live its regular quarterly conference call with financial analysts. Access to the call will be via a link called "4th Quarter and Full-Year 2001 Earnings Call, January 25, 2002, 3:00 p.m. EST P.M. also p.m. or p.m. abbr. post meridiem Usage Note: By definition, 12 a.m. " at that date and time on the home page of A&B's Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the site. The webcast and call will feature a brief discussion of the earnings release, followed by questions from professional investors invited to participate in the interactive portion of the discussion. Other parties participating in the webcast will be in a "listen-only" mode.
ALEXANDER & BALDWIN, INC.
2001 and 2000 Fourth-Quarter And Full-Year Results
2001 2000
-------------- --------------
Three Months Ended December 31:
Revenue $ 356,056,000 $ 261,475,000
Income From Continuing Operations
Before Change In Accounting $ 54,068,000 $ 14,546,000
Net Income $ 46,368,000 $ 14,546,000
Basic Share Earnings:
Income From Continuing Operations
Before Change In Accounting $ 1.34 $ 0.36
Net Income $ 1.15 $ 0.36
Diluted Earnings Per Share: $ 1.14 $ 0.36
Average Shares Outstanding 40,498,000 40,312,000
Year Ended December 31:
Revenue $1,190,073,000 $1,068,646,000
Income From Continuing Operations
Before Change In Accounting $ 119,813,000 $ 78,324,000
Net Income $ 110,628,000 $ 90,574,000
Basic Share Earnings:
Income From Continuing Operations
Before Change In Accounting $ 2.96 $ 1.92
Net Income $ 2.73 $ 2.21
Diluted Earnings Per Share: $ 2.72 $ 2.21
Average Shares Outstanding 40,535,000 40,898,000
Industry Segment Data, Net Income
(In Thousands)
Three Months Ended Year Ended
December 31, December 31,
--------------------- ---------------------
2001 2000 2001 2000
--------- --------- --------- ---------
Revenue:
Ocean Transportation $ 189,191 $ 216,124 $ 796,840 $ 850,692
Property Devel. & Mgmt
Leasing 17,996 16,778 70,685 62,105
Sales 11,854 3,848 89,156 46,322
Food Products 25,847 23,877 104,376 106,341
Other 111,168 848 129,016 3,186
--------- --------- --------- ---------
Total Revenue $ 356,056 $ 261,475 $1,190,073 $1,068,646
========= ========= ========= =========
Operating Profit, Net Income:
Ocean Transportation $ 1,851 $ 19,819 $ 62,264 $ 93,732
Property Devel. & Mgmt
Leasing 8,016 7,863 34,139 30,120
Sales 2,564 (862) 17,926 24,228
Food Products (3,886) 4,613 5,660 7,522
Other 109,921 756 127,635 2,974
--------- --------- --------- ---------
Total Operating
Profit 118,466 32,189 247,624 158,576
Writedown of Investment
in C&H (28,600) -- (28,600) --
Interest Expense (3,679) (6,285) (18,658) (24,252)
Corporate Expenses (3,301) (3,009) (13,161) (11,609)
--------- --------- --------- ---------
Income From Continuing
Operations Before
Income Taxes and
Accounting Change 82,886 22,895 187,205 122,715
Income Taxes (28,818) (8,349) (67,392) (44,391)
--------- --------- --------- ---------
Income From Continuing
Operations Before
Change In Accounting 54,068 14,546 119,813 78,324
Discontinued Operation (7,700) -- (9,185) --
Accounting Change -- -- -- 12,250
--------- --------- --------- ---------
Net Income $ 46,368 $ 14,546 $ 110,628 $ 90,574
========= ========= ========= =========
Consolidated Balance Sheets
(In Thousands)
December 31, December 31,
2001 2000
---------- ----------
(Unaudited)
ASSETS
Current Assets $ 220,014 $ 208,867
Investments 33,021 183,141
Real Estate Developments 47,840 62,628
Property, Net 977,048 954,692
Capital Construction Fund 158,737 150,405
Other Assets 107,759 106,279
---------- ----------
Total $1,544,419 $1,666,012
========== ==========
LIABILITIES & EQUITY
Current Liabilities $ 195,569 $ 153,006
Long-Term Debt 207,378 330,766
Post-Retirement Benefit Obligs. 42,915 44,752
Other Long-Term Liabilities 49,181 56,698
Deferred Income Taxes 338,709 387,139
Shareholders' Equity 710,667 693,651
---------- ----------
Total $1,544,419 $1,666,012
========== ==========
Consolidated Statements of Cash Flows
(In Thousands)
Year Ended
December 31,
2001 2000
---------- ----------
(Unaudited)
Operating Cash Flows $ 149,161 $ 104,278
Capital Expenditures (99,183) (84,201)
CCF Deposits, Net (7,854) (3,646)
Proceeds From Sale Of Bank Stocks 134,720 --
Proceeds From/(Payment of) Debt, Net (133,988) 61,000
Repurchases Of Capital Stock (2,270) (48,260)
Dividends Paid (36,488) (36,785)
All Other, Net 11,742 7,732
---------- ----------
Increase/(Decrease) In Cash $ 15,840 $ 118
========== ==========
Depreciation $ 75,433 $ 72,304
========== ==========
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