A&B Reports First-Quarter 2000 Income.Business Editors HONOLULU--(BUSINESS WIRE)--April 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 first-quarter 2000 net income of $26,431,000, or $0.63 per share, after an accounting change. 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, or $0.29 per share. Excluding this change, first-quarter income was $14,181,000, or $0.34 per share. In the first quarter of 1999, income was $15,838,000, or $0.36 per share. Revenue in the first quarter of 2000 was $219,891,000, compared with revenue of $197,442,000 in the first quarter of 1999. First-Quarter Results Favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. ; Sugar Prices Remain An Issue "The first quarter's results were slightly above our expectations, when the accounting change is removed from the figures," 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:
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. cargo volume improvements were significant, but fuel prices have more than doubled since early 1999. Real estate results in the quarter reflected the normal ebb and flow the alternate ebb and flood of the tide; often used figuratively. See also: Ebb of sales transactions, with smaller transactions occurring in the first quarter of 2000; however, the outlook for property sales and leasing is good for the year. We continue to monitor, with concern, domestic raw sugar prices and the government's attempt to bring order back into the domestic market. "Hawaii's economy continues to improve, with U.S. mainland travelers an ongoing source of visitor industry growth and some recovery showing up in construction activity. Although the progress of Japan's economy has varied in recent quarters, the decline in visitors from that country seems to have moderated." Matson Matson is a surname, and may refer to:
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. in the first quarter of 2000 was $30.6 million, $3.0 million, or nine percent, lower than in the first quarter of 1999. Improvements in first-quarter 2000 results were realized in ocean transportation and food products. As anticipated, property sales were lower. There also was a modest reduction in the results from property leasing. Interest expense was higher, due to higher debt balances and rates, but corporate expenses were lower. The accounting change in the first quarter of 2000 related to the treatment of vessel drydocking costs. The Company changed its method of accounting for these costs from the accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. method to the deferral deferral - Waiting for quiet on the Ethernet. method. Drydocking costs had been accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. as an expense and liability on an estimated basis, in advance of the next scheduled drydocking. Under the deferral method, actual drydocking costs are capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. when incurred and amortized over the period to the next drydocking. The new method amortizes the costs over the period of benefit and eliminates the uncertainty in estimating these costs. This change was made to conform with prevailing industry accounting practices. Cargo Gains Boost Ocean Transportation Total ocean transportation operating profit of $19.9 million increased $1.6 million, or nine percent, from the first quarter of 1999. The improvement was due primarily to higher cargo volume in the Hawaii service, resulting from competitive gains, partially offset by higher operating costs operating costs npl → gastos mpl operacionales , principally for fuel, container handling and container repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. . Adjustments to a 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 surcharge An overcharge or additional cost. A surcharge is an added liability imposed on something that is already due, such as a tax on tax. It also refers to the penalty a court can impose on a fiduciary for breaching a duty. should help to offset unfavorable fuel cost variances in the future, and container inventory imbalances resulting from labor disruptions in the fall of 1999 have been significantly reduced. Matson's first-quarter 2000 Hawaii service container volume was five-percent higher than in the 1999 first quarter; Hawaii automobile volume was 72-percent higher. Real Estate: Fewer Sales In First Quarter First quarter 2000 real estate revenue of $15.0 million was $4.6 million, or 23 percent, lower than in the first quarter of 1999. Real estate operating profit of $7.9 million was $5.3 million lower than in the first quarter of 1999. The leased property portfolio contributed $7.2 million to operating profit, a decrease of $0.4 million, or six percent, from the first quarter of 1999. The decrease was primarily due to a 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 in the first quarter of 1999, partially offset by first-quarter 2000 improvements resulting from recently acquired properties and higher portfolio occupancy levels. First-quarter 2000 occupancy levels for Mainland properties averaged 95 percent, versus 92 percent in the first quarter of 1999. Occupancy levels for Hawaii properties averaged 84 percent in the first quarter of 2000, versus 72 percent in the comparable period of 1999. Total first-quarter 2000 property sales revenue of $3.1 million was $4.9 million less than in the first quarter of 1999. Sales in the first quarter of 2000 included nine residential properties and two lots in a business park. Sales activity in the first quarter of 1999 included three business parcels and eight residential properties. Operating profit from property sales in the first quarter was $0.7 million, versus $5.5 million in the first quarter last year. Greater sales activity is expected later on in the year. Food Products: Low Sugar Prices a Concern Total operating profit for the food products segment of $2.1 million increased $0.6 million from the first quarter of 1999. Despite this improvement, results for the remainder of the year are expected to lag those of 1999, due to lower raw sugar prices. 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" 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 First-Quarter Results
2000 1999
Three Months Ended March 31: ---- ----
---------------------------
Revenue $219,891,000 $197,442,000
Income Before Accounting Change $14,181,000 $15,838,000
Net Income $26,431,000 $15,838,000
Basic & Diluted Share Earnings:
Income Before Accounting Change $0.34 $0.36
Net Income $0.63 $0.36
Average Shares Outstanding 42,131,000 43,559,000
Industry Segment Data, Net Income
(In Thousands)
Three Months Ended
March 31,
2000 1999
---- ----
Revenue:
-------
Ocean Transportation $190,513 $169,195
Property Devel. & Mgmt.
Leasing 11,896 11,587
Sales 3,052 7,932
Food Products 13,666 8,002
Other 764 726
------- -------
Total Revenue $219,891 $197,442
------- -------
Operating Profit, Net Income:
----------------------------
Ocean Transportation $19,893 $18,265
Property Devel. & Mgmt.
Leasing 7,184 7,622
Sales 701 5,540
Food Products 2,068 1,471
Other 709 650
------- -------
Total Operating Profit 30,555 33,548
Interest Expense (5,347) (4,527)
Corporate Expenses (3,502) (3,880)
------- -------
Income Before Taxes
& Accounting Change 21,706 25,141
Income Taxes (7,525) (9,303)
------- -------
Income Before Accounting Change 14,181 15,838
Cumulative Effect of Acctg. Change 12,250 --
------- -------
Net Income $26,431 $15,838
------- -------
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