Exhibit 99.1
For Immediate Release | | Contact: Dennis J. Simonis |
| | President & CEO |
| | |
Wednesday, August 10, 2005 | | Telephone: (808) 969-8052 |
ML MACADAMIA ORCHARDS, L.P.
REPORTS 2nd QUARTER 2005 EARNINGS
Hilo, Hawaii — ML Macadamia Orchards, L.P. (NYSE: NUT), today reported a second quarter net profit of $26,000 or ($0.00) per Class A Unit, on revenues of $1.5 million. The second quarter results include a crop insurance settlement of $147,000. In the second quarter of 2004, the Partnership reported a net loss of $161,000, or ($0.02) per Class A Unit, on $800,000 in revenues. The second quarter marks the end of the harvest season and is usually one of the year’s lowest harvest periods, accounting for less than 4% of the total year’s harvest
Nut revenues were $456,000 for the three months ended June 30, 2005, compared to $153,000 in the prior year, due to slightly different weather patterns affecting the timing of the harvest. Farming service revenues were $1.0 million, or approximately 65% higher than the previous quarter, again due to the timing of the harvest.
For the first six months of 2005, revenues were $4.6 million with a modest net loss of $1,000, or ($0.00) per Class A Unit. Revenues in the first six months of 2004 were $2.8 million and the net loss was $256,000, or ($0.03) per Class A Unit.
This press release contains forward-looking statements regarding future events and future performance of the Partnership that involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These include statements, among others, regarding the Partnership’s future nut prices and the outcome of legal action, which are based on certain assumptions and forecasts. The Partnership files documents with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K reports, which contain a description of these and other risks and uncertainties that could cause actual results to differ from current expectations and the forward-looking statements contained in this press release.
# # #
Consolidated Income Statements (unaudited)
(in thousands, except per unit data)
| | Three months
ended June 30, | | Six months
ended June 30, | |
| | 2005 | | 2004 | | 2005 | | 2004 | |
| | | | | | | | | |
Macadamia nut sales | | $ | 456 | | $ | 153 | | $ | 2,624 | | $ | 1,309 | |
Contract farming revenue | | 1,045 | | 634 | | 1,933 | | 1,530 | |
Total revenues | | 1,501 | | 787 | | 4,557 | | 2,839 | |
Cost of goods and services | | | | | | | | | |
Costs of macadamia nut sales | | 296 | | 78 | | 1,924 | | 1,114 | |
Costs of contract farming services | | 987 | | 569 | | 1,788 | | 1,377 | |
Total cost of goods sold | | 1,283 | | 647 | | 3,712 | | 2,491 | |
Gross income | | 218 | | 140 | | 845 | | 348 | |
General and administrative expenses | | | | | | | | | |
Costs expensed under management contract with related party | | 68 | | 42 | | 109 | | 80 | |
Legal fees paid to related party | | 8 | | 8 | | 16 | | 18 | |
Other | | 212 | | 211 | | 421 | | 419 | |
Total general and administrative expenses | | 288 | | 261 | | 546 | | 517 | |
Extinguishment of management agreement | | — | | — | | (326 | ) | — | |
Operating income (loss) | | (70 | ) | (121 | ) | (27 | ) | (169 | ) |
Other income | | 147 | | — | | 147 | | — | |
Interest expense | | (44 | ) | (38 | ) | (94 | ) | (82 | ) |
Interest income | | 1 | | 3 | | 3 | | 7 | |
Income before tax | | 34 | | (156 | ) | 29 | | (244 | ) |
Income tax expense | | 8 | | 5 | | 30 | | 12 | |
Net income (loss) | | $ | 26 | | $ | (161 | ) | $ | (1 | ) | $ | (256 | ) |
| | | | | | | | | |
Net cash flow
(as defined in the Partnership Agreement) | | $ | (262 | ) | $ | (486 | ) | $ | 66 | | $ | (341 | ) |
| | | | | | | | | |
Net loss per Class A Unit | | $ | (0.00 | ) | $ | (0.02 | ) | $ | (0.00 | ) | $ | (0.03 | ) |
| | | | | | | | | |
Net cash flow per Class A Unit | | $ | (0.03 | ) | $ | (0.06 | ) | $ | 0.01 | | $ | (0.05 | ) |
| | | | | | | | | |
Cash distributions per Class A Unit | | $ | 0.05 | | $ | 0.05 | | $ | 0.10 | | $ | 0.10 | |
| | | | | | | | | |
Class A Units outstanding | | 7,500 | | 7,500 | | 7,500 | | 7,500 | |
