Exhibit 99.1
For Immediate Release | | Contact: Dennis J. Simonis |
| | President & CEO |
Friday, May 9, 2008 | | Telephone: (808) 969-8052 |
ML MACADAMIA ORCHARDS, L.P.
REPORTS FIRST QUARTER 2008 EARNINGS
Hilo, Hawaii — ML Macadamia Orchards, L.P. (NYSE: NUT) today reported a net loss of $264,000, or $0.04 per Class A Unit for the first quarter 2008, mainly as a result of lower production, lower nut prices and higher cost of sales. In the first quarter of 2007, the company reported net income of $346,000, or $0.05 per Class A Unit.
Total revenues in the first quarter 2008 were $3.6 million, comprised of $2.7 million from the sale of 3.7 million pounds of macadamia nuts-in-shell (wet-in-shell @ 20% and recovery of 30%), of which 2.8 million pounds were harvested in the first quarter of 2008 and 941,000 pounds were in inventory and $353,000 in macadamia kernel sales from inventory; and $963,000 in contract farming revenue. In comparison, revenues in the first quarter of 2007 were $3.4 million, $2.3 million from the sale of 3.3 million pounds of nut-in-shell and $1.0 million from contract farming.
The average nut price paid to the Partnership in the first quarter of 2008 was 67 cents as compared to 70 cents per pound in 2007 and 76 cents in the first quarter of 2006. The price that the Partnership receives for its nuts is based upon the terms and conditions of its nut purchase contracts with the various buyers. The vast majority of the Partnership’s financial results will be determined by the third and fourth quarter harvest levels and the nut prices paid under the respective nut purchase contracts.
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, 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.
ML Macadamia Orchards, L.P.
Income Statements (unaudited)
(in thousands, except per unit data)
| | For the quarters ended | |
| | March 31, | |
| | 2008 | | 2007 | |
| | | | | |
Macadamia nut sales | | $ | 2,681 | | $ | 2,324 | |
Contract farming revenue | | 963 | | 1,041 | |
Total revenues | | 3,644 | | 3,365 | |
Cost of goods and services sold | | | | | |
Costs of macadamia nut sales | | 2,510 | | 1,622 | |
Costs of contract farming revenue | | 883 | | 953 | |
Total cost of goods and services sold | | 3,393 | | 2,575 | |
Gross income | | 251 | | 790 | |
General and administrative expenses | | | | | |
Costs expensed with related party | | | | 53 | |
Other | | 414 | | 374 | |
Total general and administrative expenses | | 414 | | 427 | |
Operating income (loss) | | (163 | ) | 363 | |
Interest expense | | (91 | ) | (33 | ) |
Interest income | | — | | 30 | |
Other income (expense) | | (1 | ) | 14 | |
Income (loss) before tax | | (255 | ) | 374 | |
Gross income tax | | 9 | | 28 | |
Net income (loss) | | $ | (264 | ) | $ | 346 | |
| | | | | |
Net cash flow (as defined in the Partnership Agreement) | | $ | 1 | | $ | 752 | |
| | | | | |
Net income (loss) per Class A Unit | | $ | (0.04 | ) | $ | 0.05 | |
| | | | | |
Net cash flow (deficit) per Class A Unit (as defined in the Partnership Agreement) | | $ | 0.00 | | $ | 0.10 | |
| | | | | |
Cash distributions per Class A Unit | | $ | 0.00 | | $ | 0.05 | |
| | | | | |
Class A Units outstanding | | 7,500 | | 7,500 | |
