Maui Land & Pineapple Reports 2003 4th Quarter Results.Business Editors KAHULUI, Hawaii--(BUSINESS WIRE)--Feb. 12, 2004 Maui Land & Pineapple pineapple, common name for one member of and for the Bromeliaceae, a family of chiefly epiphytic herbs and small shrubs native to the American tropics and subtropics. Company, Inc. (AMEX AMEX See: American Stock Exchange :MLP (Meridian Lossless Packing) The compression technique used in DVD-Audio that provides the highest audio quality. It delivers two channels at 192 kHz with 24-bit samples or six channels at 96 kHz. ) today reported fourth quarter 2003 net income of $1.2 million or $.17 per share. For the fourth quarter of 2002, ML&P incurred a net loss of $2.2 million ($.31 per share). Consolidated revenues for the fourth quarter of 2003 were higher than the fourth quarter of 2002 by 8%. The improved fourth quarter results include the $2.9 million gain from the sale of substantially all of the assets of the Company's Costa Rican pineapple affiliate in December 2003 and a $5.4 million cash distribution that the Company received in December 2003 from the U.S. Customs Service. The cash distribution was made pursuant to the Continued Dumping dumping, selling goods at less than the normal price, usually as exports in international trade. It may be done by a producer, a group of producers, or a nation. and Subsidy subsidy, financial assistance granted by a government or philanthropic foundation to a person or association for the purpose of promoting an enterprise considered beneficial to the public welfare. Offset Act of 2000, which allows for distribution of antidumping an·ti·dump·ing adj. Intended to discourage importation and sale of foreign-made goods at prices substantially below domestic prices for the same items. duties to injured in·jure tr.v. in·jured, in·jur·ing, in·jures 1. To cause physical harm to; hurt. 2. To cause damage to; impair. 3. domestic producers. Partially offsetting these positive factors for the fourth quarter was a 46% increase in consolidated general and administrative expenses largely due to $2.3 million in the write-off of obsolete OBSOLETE. This term is applied to those laws which have lost their efficacy, without being repealed, 2. A positive statute, unrepealed, can never be repealed by non-user alone. 4 Yeates, Rep. 181; Id. 215; 1 Browne's Rep. Appx. 28; 13 Serg. & Rawle, 447. assets, in particular from the pineapple segment, and $1.3 million of employee severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs across all business segments. David C. Cole David C. Cole (born September 24, 1952) is an entrepreneur and philanthropist. He has been active worldwide in the publishing, communications, software, online services, and consumer products industries. , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. said, "We acted in the fourth quarter of 2003 to simplify our business. We divested our offshore pineapple operations to focus our efforts closer to home and we 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: our fresh-cut product line to concentrate on more promising product categories. Also, following a comprehensive review of our newly installed integrated accounting system, we elected to abandon the use of certain components. Collectively, these and other actions resulted in significant write offs of fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → , inventories and supplies." For the year 2003, ML&P reported net income of $6.0 million or $.83 per share compared to a net loss of $5.7 million ($.79 per share) for 2002. Consolidated revenues for 2003 increased by 14% compared to 2002. General and administrative expenses increased by 35% in 2003 compared to 2002 with the largest increases being $2.3 million for the write off of obsolete assets, $3.0 million for employee severance costs, $1 million increase in pension expense and $1 million increase in depreciation expense. The Company's Pineapple segment reported 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. from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the of $3.3 million compared to 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. from continuing operations of $3.5 million for the fourth quarter of 2002. The Pineapple segment had an operating profit from discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of $2.2 million for the fourth quarter of 2003 compared to $238,000 for the fourth quarter of 2002. The operating results of the Company's Costa Rican affiliate prior to the December 2003 sale and the gain of $2.9 million from the sale have been reported as discontinued operations. Prior period amounts have been restated for comparability. For the year 2003, the Pineapple segment produced an operating loss from continuing operations of $921,000 compared to a loss of $8.5 million for 2002. Pineapple operating profit from discontinued operations was $2.2 million for the year 2003 compared to $567,000 for 2002. Revenues from continuing Pineapple operations increased by 25% and 14%, respectively for the fourth quarter and the year 2003 as compared to 2002. The receipt from U.S. Customs of $5.4 million in December of 2003 was the primary reason for the improved operating results from Pineapple continuing operations for the fourth quarter and the full-year 2003. Also contributing to the improved full year results from continuing operations are improved sales prices for processed pineapple products and $2.9 million of non-recurring revenue related to a legal issue. Kapalua Resort produced an operating loss of $1.3 million for the fourth quarter of 2003 compared to an operating profit of $481,000 for the fourth quarter of 2002. For the year 2003, the Resort segment reported an operating loss of $1.2 million compared to an operating profit of $2.8 million for the year 2002. The lower results were principally due to fewer sales of new real estate product in 2003 and to higher employment-related, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . The Company's Commercial & Property segment reported an operating loss of $470,000 for the fourth quarter of 2003 compared to an operating profit of $386,000 for the fourth quarter of 2002. For the year 2003, this segment reported an operating profit of $15.0 million compared to an operating loss of $91,000 for 2002. Operating results for the year 2003 include the third quarter sales of both the Napili Plaza and the Queen Kaahumanu Center. Kaahumanu Center Associates (the joint venture that owned Queen Kaahumanu Center) was dissolved dis·solve v. dis·solved, dis·solv·ing, dis·solves v.tr. 1. To cause to pass into solution: dissolve salt in water. 2. upon the sale of Queen Kaahumanu Center, which resulted in the reversal of the Company's accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. losses from the joint venture in excess of its investment in the third quarter of 2003. The reversal of these accumulated losses was responsible for $11.8 million of the operating profit from this segment for 2003. The operating results for Napili Plaza prior to the sale and the $1.9 million gain from the sale have been reported as discontinued operations and prior period amounts have been restated for comparability.
MAUI LAND & PINEAPPLE COMPANY, INC.
Report of Consolidated Operations
(Dollars in Thousands Except Per Share Amounts)
(Unaudited)
Three Months Ended Year Ended
December 31 December 31
2003 2002 2003 2002
---------- ---------- ---------- ----------
Revenues
Pineapple $45,104 $32,049 $117,589 $99,153
Less discontinued
operations (7,563) (1,943) (12,551) (6,625)
Resort 10,792 12,633 45,568 49,757
Commercial & Property 245 2,423 20,628 6,520
Less discontinued
operations (3) (281) (2,591) (1,100)
Other (8) 33 23 35
---------- ---------- ---------- ----------
Total Revenues 48,567 44,914 168,666 147,740
========== ========== ========== ==========
Operating Profit (Loss)
Pineapple 5,457 (3,289) 1,266 (7,935)
Less discontinued
operations (2,159) (238) (2,187) (567)
Resort (1,283) 481 (1,169) 2,830
Commercial & Property (470) 386 15,041 (91)
Less discontinued
operations (11) (21) (1,982) (61)
Unallocated corporate
expenses (569) (330) (1,965) (1,508)
---------- ---------- ---------- ----------
Total Operating Income
(Loss) 965 (3,011) 9,004 (7,332)
Interest Expense (511) (605) (2,526) (2,389)
Income Tax (Expense)
Benefit (740) 1,256 (2,612) 3,697
---------- ---------- ---------- ----------
Income (Loss) - Continuing
Operations (286) (2,360) 3,866 (6,024)
Income - Discontinued
Operations 1,493 140 2,131 315
---------- ---------- ---------- ----------
Net Income (Loss) $1,207 $(2,220) $5,997 $(5,709)
========== ========== ========== ==========
Per Common Share - Basic
and Diluted
Income (Loss) -
Continuing Operations (.03) (.33) .54 (.83)
Income - Discontinued
Operations .21 .02 .29 .04
---------- ---------- ---------- ----------
Net Income (Loss) $.17 $(.31) $.83 $(.79)
========== ========== ========== ==========
Average Common Shares
Outstanding 7,195,800 7,195,800 7,195,800 7,195,800
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