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MAUNA LOA MACADAMIA PARTNERS, L.P. REPORTS SECOND QUARTER RESULTS

 MAUNA LOA MACADAMIA PARTNERS, L.P.
 REPORTS SECOND QUARTER RESULTS
 HONOLULU, Aug. 14 /PRNewswire/ -- Mauna Loa Macadamia Partners, L.P. (NYSE: NUT) today reported second quarter revenues of $0.83 million, net cash flow of $1.08 million (or $0.14 per class A unit) and a net loss of $0.03 million (or $0.00 per class A unit). For the same quarter of 1991, the partnership generated revenues of $0.18 million, net cash flow of $0.93 million (or $0.12 per class A unit) and a net loss of $0.17 million (or $0.02 per class A unit).
 Second quarter 1992 production totaled 1.18 million wet-in-shell pounds on a 25 percent equivalent moisture basis, or about five times the 0.23 million wet-in-shell pounds produced in the same quarter of 1991. This increase primarily reflects crop timing, as warmer night temperatures early last year delayed flowering and the nut drop during the 1991-92 crop year. Because of the normal seasonality of macadamia nut production, second quarter production is generally not significant and typically accounts for only about 3 percent of the total volume harvested for a crop year.
 For the full 1991-92 crop year (July 1 to June 30), nut production increased by 3 percent over the preceding crop year because of continuing tree maturation and the acquisition of a small orchard in Sept. 1991:
 Crop Year Crop Year Crop Year
 Quarter Ended 1991-92 1990-91 1989-90
 Sept. 30 3,728,000 lbs. 5,379,000 lbs. 3,664,000 lbs.
 Dec. 31 11,066,000 lbs. 9,930,000 lbs. 9,234,000 lbs.
 March 31 3,359,000 lbs. 3,314,000 lbs. 3,404,000 lbs.
 June 30 1,179,000 lbs. 234,000 lbs. 670,000 lbs.
 Total 19,332,000 lbs. 18,857,000 lbs. 16,972,000 lbs.
 Percent change +3 pct. +11 pct. +8 pct.
 Unit production costs for the 1991-92 crop year averaged $0.54 per pound, down about 4 percent from the previous crop year. This reduction was due partly to the increased production level of the 1991-92 crop year and partly to lower absolute costs in several functional areas.
 General and administrative costs were 27 percent lower in the second quarter of 1992 and 19 percent lower in the first half of 1992 than in the corresponding periods of 1991. The reductions resulted partly from the timing of tax reporting costs and partly from lower tax reporting, financial reporting and payroll costs in conjunction with a stringent cost reduction program adopted by the partnership.
 Currently, macadamia nut prices are soft because of supplies being in excess of demand as a result of Australian imports increasing supplies and the continuing softness in the U.S. economy reducing demand. However, the partnership believes that the long- term outlook is quite bright.
 Historically, the macadamia industry has doubled in size every decade. Presently very few orchards are being planted and since it takes seven years for macadamia trees to begin bearing nuts and 10 additional years to reach full commercial production, current decisions not to plant will likely create a product shortage by the end of this decade.
 Recent evidence of the health benefits of eating macadamia nuts and Mauna Loa's success in developing new products and markets has led the partnership to conclude that demand will increase resulting in a shortage of macadamia nut supplies after the year 2000, particularly if foreign sources of nuts like Australia and Costa Rica do not meet their yield objectives because of unforeseen growing conditions.
 Mauna Loa Macadamia Partners, L.P. is the world's largest grower of macadamia nuts, owning or leasing 4,027 acres of orchards on the island of Hawaii, where macadamia yields are the highest in the world. The partnership's class A units trade on the New York Stock Exchange (symbol: NUT).
 MAUNA LOA MACADAMIA PARTNERS, L.P.
 Income Statement (Unaudited)
 (In thousands, except per unit data)
 Three months Six months
 ended ended
 June 30, June 30,
 1992 1991 1992 1991
 Macademia nut sales $826 $182 $3,135 $2,755
 Cost of goods sold 650 115 2,401 1,902
 Gross income 176 67 734 853
 Administrative costs 169 231 445 552
 Operating income 7 (164) 289 301
 Interest income/(expense) (36) (2) (77) 41
 Net income ($29) ($166) $212 $342
 Net cash flow (as defined
 in the Partnership
 Agreement) $1,078 $926 $2,448 $2,562
 Net income per class A
 unit --- ($0.02) $0.03 $0.05
 Net cash flow per class
 A unit $0.14 $0.12 $0.32 $0.34
 Distributions per class
 A unit $0.20 $0.25 $0.40 $0.50
 Class A units outstanding 7,500 7,500 7,500 7,500
 Notes to financial statements:
 (a) Production costs are annualized for interim reporting purposes, with the difference between costs incurred and costs expensed reported on the balance sheet as an annualized cost adjustment.
 (b) No amounts have been accrued for income taxes, as the partnership is not currently a taxable entity.
 MAUNA LOA MACADAMIA PARTNERS L.P.
 Balance Sheet
 (Unaudited)
 (In thousands)
 June 30,
 1992 1991
 Assets
 Current assets:
 Cash and cash equivalents $18 $12
 Receivables from related party 1,977 1,439
 Annualized cost adjustment 1,445 2,120
 Prepaid expenses and other
 assets 73 68
 Total current assets 3,513 3,639
 Land, orchards and equipment 66,682 69,442
 Less accumulated depreciation
 and amortization (7,279) (5,811)
 Net land, orchards and
 equipment 59,403 63,631
 Deferred charges net of
 amortization 38 42
 Total assets $62,954 $67,312
 Liabilities and Partners'
 Capital
 Current liabilities:
 Line of credit payable $2,270 $635
 Mortgage note payable
 (current portion) 57 ---
 Accounts payable (related
 party) 1,588 1,703
 Distributions payable 1,515 1,894
 Other current and accrued
 liabilities 148 126
 Total current liabilities 5,578 4,358
 Note payable 418 ---
 Partners' capital:
 General partners 570 630
 Class A limited partners 56,388 62,324
 Total partners' capital 56,958 62,954
 Total liabilities and
 partners' capital $62,954 $67,312
 See notes to financial statements.
 -0- 8/14/92
 /CONTACT: Jack Dymond, VP and treasurer of Mauna Loa Macadamia Partners L.P., 808-536-4461/
 (NUT) CO: Mauna Loa Macadamia Partners L.P. ST: Hawaii IN: FOD SU: ERN


AL-JL -- LA026 -- 0274 08/14/92 18:30 EDT
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