Exhibit 99.(1)
NEWS RELEASE
FOR RELEASE IMMEDIATELY | | CONTACT: |
February 17, 2006 | | FRED W. RICKERT |
| | 808/877-3871 |
| | 808/877-1614 FAX |
MAUI LAND & PINEAPPLE REPORTS 2005 4th QUARTER RESULTS
Kahului, Hawaii, February 17….Maui Land & Pineapple Company, Inc. (AMEX: MLP) reported net income of $4.8 million ($.67 per share) for the fourth quarter of 2005 compared to net income of $2.6 million ($.36 per share) for the fourth quarter of 2004. Revenues for the fourth quarter of 2005 increased by 10% to $53.2 million from $48.4 million for the fourth quarter of 2004.
For the year 2005, the Company reported net income of $14.6 million ($2.02 per share) compared to a net loss of $383,000 ($.05 per share) for 2004. Revenues for 2005 increased by 22% to $186.7 million from $153.2 million for 2004.
“In 2005, we invested in modernizing the Company’s continuing operations in all three business segments: Kapalua Resort, Agriculture, and Community Development,” said David C. Cole, Chairman, President and CEO of ML&P. “The Company recorded over $7.4 million in charges related to the restructuring of operations and commenced an asset redeployment program with over $28 million in proceeds from non-core real estate sales. Our investment programs will continue through 2006 with the re-development of the Kapalua Bay Hotel site, the completion of a fresh fruit grading & packing facility, and the expansion of our real estate operations.”
The Company’s Community Development segment reported an operating profit of $13.7 million for the fourth quarter of 2005 compared to an operating profit of $8.1 million for the fourth quarter of 2004. Revenues for the fourth quarter of 2005 were $20.0 million or 26% higher than the fourth quarter of 2004. For the year 2005, Community Development produced an operating profit of $40.5 million compared to an operating profit of $15.7 million for 2004. Revenues for the year 2005 were $68.7 million or 124% higher than 2004.
Results reported by the Community Development segment for 2005 include gains (pre-tax) of $10.9 million and $26.9 million, for the fourth quarter and the year 2005, respectively, from the sale of Upcountry Maui real estate that the Company had classified as non-core to its strategic plan. In addition to the sale of non-core assets, the results for the Community Development segment reflect revenues and operating profit from the sale of lots at the Company’s Honolua Ridge Phase I and Phase II residential subdivisions.
The Agriculture segment (previously called “Pineapple” segment) produced an operating loss of $4.2 million in the fourth quarter of 2005 compared to an operating loss of $2.6 million for the fourth quarter of 2004. Revenues for the fourth quarter were $22.2 million or about 1% less than the fourth quarter of 2004. For the year 2005, the Agriculture segment reported an operating loss of $11.4 million compared to an operating loss of $10.8 million for 2004. Revenues for 2005 from the Agriculture segment were lower by 7% compared to 2004.
The increased Agriculture segment loss for the fourth quarter and the year 2005 largely reflects increased depreciation charges and equipment write offs of $5.0 million related to the 2006 replacement of the fresh fruit packing facility and planned replacement of the Kahului cannery. For both the fourth quarter and the year 2005, lower revenues reflect a decrease in case sales volume of canned pineapple partially offset by higher average prices, and increased sales volume and prices for the Company’s fresh pineapple.
The Resort segment reported an operating loss of $1.5 million for the fourth quarters of both 2005 and 2004. Revenues for the fourth quarter of 2005 of $10.8 million were 9% higher than 2004. For the year 2005, Resort operations recorded an operating loss of $5.5 million compared to an operating loss of $4.6 million for 2004. Revenues of $43.2 million for 2005 were 2% higher than 2004. Higher average green fees and increased room rates at the Kapalua Villas, along with increased occupancies at the Resort, partially offset the negative financial effects to the Resort of the four-month closure of the Plantation Course from April through July of 2005. Higher marketing costs and operating expenses also contributed to the increased operating loss for 2005.
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MAUI LAND & PINEAPPLE COMPANY, INC.
Report of Consolidated Operations
(Unaudited)
(Dollars in Thousands Except Per Share Amounts)
| | Three Months Ended | | Twelve Months Ended | |
| | December 31 | | December 31 | |
| | 2005 | | 2004 | | 2005 | | 2004 | |
Revenues | | | | | | | | | |
Community Development | | $ | 20,043 | | $ | 15,951 | | $ | 68,662 | | $ | 30,625 | |
Agriculture | | 22,163 | | 22,399 | | 74,501 | | 80,003 | |
Resort | | 10,824 | | 9,903 | | 43,198 | | 42,425 | |
Other | | 217 | | 154 | | 319 | | 196 | |
Total Revenues | | 53,247 | | 48,407 | | 186,680 | | 153,249 | |
| | | | | | | | | |
Operating Profit (Loss) | | | | | | | | | |
Community Development | | 13,689 | | 8,136 | | 40,466 | | 15,737 | |
Agriculture | | (4,202 | ) | (2,587 | ) | (11,383 | ) | (10,766 | ) |
Resort | | (1,498 | ) | (1,506 | ) | (5,538 | ) | (4,565 | ) |
Other | | (34 | ) | (27 | ) | (175 | ) | (255 | ) |
Net Operating Profit (Loss) | | 7,955 | | 4,016 | | 23,370 | | 151 | |
Interest (Expense) Income, net | | 42 | | (201 | ) | (78 | ) | (1,136 | ) |
Income Tax (Expense) Benefit | | (3,171 | ) | (1,150 | ) | (8,723 | ) | 528 | |
| | | | | | | | | |
Income (Loss) — Continuing Operations | | 4,826 | | 2,665 | | 14,569 | | (457 | ) |
| | | | | | | | | |
Income (Loss) — Discontinued Operations | | — | | (40 | ) | — | | 74 | |
| | | | | | | | | |
Net Income (Loss) | | $ | 4,826 | | $ | 2,625 | | $ | 14,569 | | $ | (383 | ) |
| | | | | | | | | |
Earnings Per Common Share | | | | | | | | | |
Basic | | $ | .67 | | $ | .36 | | $ | 2.02 | | $ | (.05 | ) |
Diluted | | $ | .66 | | $ | .36 | | $ | 1.99 | | $ | (.05 | ) |
| | | | | | | | | |
Average Common Shares Outstanding | | | | | | | | | |
Basic | | 7,232,297 | | 7,201,770 | | 7,229,457 | | 7,197,808 | |
Diluted | | 7,291,290 | | 7,238,408 | | 7,309,043 | | 7,197,808 | |
NOTES:
The Company’s reports for interim periods utilize numerous estimates of production, general and administrative expenses, and other costs for the full year. Consequently, amounts in the interim reports are not necessarily indicative of results for the full year.
In 2005, responsibility for the real estate leasing activity that was accounted for in the Resort segment was transferred to the Community Development segment (previously called “Development” segment) and prior year amounts were restated for comparability. The Community Development segment as reorganized is comprised of all of the Company’s real estate entitlement, development, construction, sales and leasing activities. The Community Development segment also includes the Company’s 51% equity interest in Kapalua Bay Holdings LLC, the owner and operator of the Kapalua Bay Hotel. Remaining in the Resort segment are the ongoing operations of Kapalua Resort’s recreation and retail operations, the Kapalua Villas, and the water and sewage transmission utility companies operations.
As of the fourth quarter of 2005, the Pineapple segment was renamed “Agriculture” segment to reflect the Company’s initiatives to diversify the products produced by this segment.
