Royal Hawaiian Orchards (NNUTU) 10-Q 5 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	9 Months Ended
	Sep. 30, 2013	Nov. 04, 2013
Document and Entity Information	'	'
Entity Registrant Name	'ROYAL HAWAIIAN ORCHARDS, L.P.	'
Entity Central Index Key	'0000792161	'
Document Type	'10-Q	'
Document Period End Date	30-Sep-13	'
Amendment Flag	'false	'
Current Fiscal Year End Date	'--12-31	'
Entity Current Reporting Status	'Yes	'
Entity Filer Category	'Smaller Reporting Company	'
Entity Common Stock, Shares Outstanding	'	7,500,000
Document Fiscal Year Focus	'2013	'
Document Fiscal Period Focus	'Q3	'

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012
In Thousands, unless otherwise specified
Current assets	'	'	'
Cash and cash equivalents	$146	$261	$713
Accounts receivable	3,027	5,786	4,915
Inventories	2,804	1,351	914
Deferred farming costs	3,117	'	2,838
Other current assets	399	360	256
Total current assets	9,493	7,758	9,636
Land, orchards and equipment, net	45,357	48,027	48,529
Intangible assets, net	518	556	491
Other non-current assets	45	'	'
Total assets	55,413	56,341	58,656
Current liabilities	'	'	'
Current portion of long-term debt	1,050	1,050	1,050
Short-term borrowings	5,600	2,400	4,700
Accounts payable	714	1,121	1,132
Accrued payroll and benefits	1,189	1,031	825
Other current liabilities	229	160	125
Total current liabilities	8,782	5,762	7,832
Non-current pension benefits	605	713	582
Long-term debt	6,125	6,825	7,175
Deferred income tax liability	1,024	1,039	1,021
Total liabilities	16,536	14,339	16,610
Commitments and contingencies	'	'	'
Partners' capital	'	'	'
General partner	81	81	81
Class A limited partners, no par or assigned value, 7,500 units authorized, issued and outstanding	39,140	42,286	42,276
Accumulated other comprehensive loss	-344	-365	-311
Total partners' capital	38,877	42,002	42,046
Total liabilities and partners' capital	$55,413	$56,341	$58,656

Consolidated_Balance_Sheets_Pa

Consolidated Balance Sheets (Parenthetical) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012
In Thousands, except Per Share data, unless otherwise specified
Consolidated Balance Sheets	'	'	'
Class A limited partners, units par or assigned value (in dollars per unit)	$0	$0	$0
Class A limited partners, units authorized	7,500	7,500	7,500
Class A limited partners, units issued	7,500	7,500	7,500
Class A limited partners, units outstanding	7,500	7,500	7,500

Consolidated_Statements_of_Com

Consolidated Statements of Comprehensive Income (Loss) (USD $)	3 Months Ended		9 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Consolidated Statements of Comprehensive Income (Loss)	'	'	'	'
Macadamia nut sales	$3,391	$5,495	$4,805	$9,050
Contract farming revenue	570	759	1,231	1,471
Branded product sales	438	'	905	'
Total revenues	4,399	6,254	6,941	10,521
Cost of goods and services sold	'	'	'	'
Cost of macadamia nut sales	3,502	4,361	4,614	6,927
Cost of contract farming services	542	724	1,156	1,376
Cost of branded product sales	350	'	971	'
Total cost of goods and services sold	4,394	5,085	6,741	8,303
Gross income	5	1,169	200	2,218
General and administrative expenses	1,052	744	2,912	2,371
Operating income (loss)	-1,047	425	-2,712	-153
Interest expense	-169	-172	-454	-488
Other income	2	84	191	210
Income (loss) before income taxes	-1,214	337	-2,975	-431
Income tax expense	3	41	21	78
Net income (loss)	-1,217	296	-2,996	-509
Other comprehensive income, net of tax	'	'	'	'
Amortization of prior service cost	2	2	5	6
Amortization of actuarial loss	5	4	16	12
Defined benefit pension plan	7	6	21	18
Other comprehensive income, net of tax	7	6	21	18
Comprehensive income (loss)	($1,210)	$302	($2,975)	($491)
Net income (loss) per Class A Unit (in dollars per unit)	($0.16)	$0.04	($0.40)	($0.07)
Cash distributions per Class A Unit (in dollars per unit)	'	'	$0.02	'
Class A Units outstanding (in units)	7,500	7,500	7,500	7,500

Consolidated_Statements_of_Par

Consolidated Statements of Partners' Capital (USD $)	Total	Accumulated other comprehensive loss	General partner	Class A limited partners
In Thousands, unless otherwise specified
Balance at Jun. 30, 2012	$41,744	($317)	$81	$41,980
Allocation of net income (loss):	'	'	'	'
Allocation of net income (loss):	296	'	'	296
Other comprehensive income:	'	'	'	'
Change in pension and severance obligations	6	6	'	'
Balance at Sep. 30, 2012	42,046	-311	81	42,276
Balance at Dec. 31, 2011	42,537	-329	81	42,785
Allocation of net income (loss):	'	'	'	'
Allocation of net income (loss):	-509	'	'	-509
Other comprehensive income:	'	'	'	'
Change in pension and severance obligations	18	18	'	'
Balance at Sep. 30, 2012	42,046	-311	81	42,276
Balance at Dec. 31, 2012	42,002	-365	81	42,286
Allocation of net income (loss):	'	'	'	'
Allocation of net income (loss):	-2,996	'	'	-2,996
Cash distributions:	'	'	'	'
Cash distributions:	-150	'	'	-150
Other comprehensive income:	'	'	'	'
Change in pension and severance obligations	21	21	'	'
Balance at Sep. 30, 2013	38,877	-344	81	39,140
Balance at Jun. 30, 2013	40,087	-351	81	40,357
Allocation of net income (loss):	'	'	'	'
Allocation of net income (loss):	-1,217	'	'	-1,217
Other comprehensive income:	'	'	'	'
Change in pension and severance obligations	7	7	'	'
Balance at Sep. 30, 2013	$38,877	($344)	$81	$39,140

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Cash flows from operating activities:	'	'	'	'
Cash received from goods and services	$1,715	$1,911	$9,906	$11,013
Cash paid to suppliers and employees	-4,157	-3,990	-12,821	-11,642
Interest paid	-136	-94	-367	-410
Net cash used in operating activities	-2,578	-2,173	-3,282	-1,039
Cash flows from investing activities:	'	'	'	'
Proceeds from sale of property and equipment	4	'	1,111	'
Purchase of property and equipment	-101	-265	-258	-340
Net cash provided by (used in) investing activities	-97	-265	853	-340
Cash flows from financing activities:	'	'	'	'
Financing cost	'	-38	'	-38
Deferred rights offering fees	-36	'	-36	'
Proceeds from line of credit	2,900	3,900	6,000	5,600
Payments of line of credit	'	-700	-2,800	-3,300
Payments of long term borrowings	-262	-175	-700	-700
Cash distributions paid	'	'	-150	'
Net cash provided by financing activities	2,602	2,987	2,314	1,562
Net increase (decrease) in cash and cash equivalents	-73	549	-115	183
Cash and cash equivalents at beginning of period	219	164	261	530
Cash and cash equivalents at end of period	146	713	146	713
Reconciliation of net income (loss) to net cash used in operating activities:	'	'	'	'
Net income (loss)	-1,217	296	-2,996	-509
Adjustments to reconcile net income (loss) to net cash used in operating activities:	'	'	'	'
Depreciation and amortization	909	791	1,397	1,361
Net gain on sale of property & equipment	-2	'	-85	'
Pension expense	7	6	21	18
Deferred income tax credit	-5	-10	-15	-30
(Increase) decrease in accounts receivable	-2,621	-4,530	2,760	81
Increase in inventories	-1,061	-379	-1,453	-367
(Increase) decrease in deferred farming costs	796	629	-2,575	-2,319
(Increase) decrease in other current assets	1	-8	-39	77
(Increase) decrease in other non-current assets	-8	'	-8	116
Increase (decrease) in accounts payable	298	711	-407	661
Increase in accrued payroll and benefits	245	252	157	52
Increase (decrease) in other current liabilities	80	75	68	-175
Decrease in non-current accrued benefits	'	-6	-107	-5
Total adjustments	-1,361	-2,469	-286	-530
Net cash used in operating activities	($2,578)	($2,173)	($3,282)	($1,039)

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Sep. 30, 2013
BASIS OF PRESENTATION	'
BASIS OF PRESENTATION	'
	(1)         BASIS OF PRESENTATION
	Royal Hawaiian Orchards, L.P. (“the Partnership”) is a master limited partnership, organized under the laws of the State of Delaware in 1986.  In the opinion of management, the accompanying unaudited consolidated financial statements of Royal Hawaiian Orchards, L.P.  and its subsidiaries Royal Hawaiian Resources, Inc. ("General Partner"), Royal Hawaiian Services, LLC and Royal Hawaiian Macadamia Nut, Inc. (“Royal”), include all adjustments, consisting only of normal recurring adjustments, necessary to present fairly their financial position as of September 30, 2013 and 2012 and the results of operations, changes in partners’ capital and cash flows for the three and nine months then ended.  The results of operations for the three and nine months ended September 30, 2013 are not necessarily indicative of the results expected for the full year or for any future period.  The farming and orchard businesses are seasonal.  The harvest period begins in late summer and continues through the following spring.  Accordingly, revenues and cash inflows tend to follow this pattern.
	The year-end condensed consolidated balance sheet data was derived from audited consolidated financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America.  The interim consolidated financial statements should be read in conjunction with the Consolidated Financial Statements and the Notes to Consolidated Financial Statements filed with the Securities and Exchange Commission in the Partnership’s Annual Report on Form 10-K for the year ended December 31, 2012.

CONSOLIDATION

CONSOLIDATION	9 Months Ended
	Sep. 30, 2013
CONSOLIDATION	'
CONSOLIDATION	'
	(2)         CONSOLIDATION
	The consolidated financial statements include the accounts of the Partnership and its subsidiaries. All significant intercompany balances and transactions, including management fees and distributions, have been eliminated.

ADOPTION_OF_NEW_ACCOUNTING_STA

ADOPTION OF NEW ACCOUNTING STANDARDS	9 Months Ended
	Sep. 30, 2013
ADOPTION OF NEW ACCOUNTING STANDARDS	'
ADOPTION OF NEW ACCOUNTING STANDARDS	'
	(3)         ADOPTION OF NEW ACCOUNTING STANDARDS
	In February 2013, the FASB issued ASU No. 2013-02: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income, which requires an entity to provide information about the amounts reclassified out of Accumulated Other Comprehensive Income (“AOCI”) by component. In addition, an entity is required to present, either on the face of the financial statements or in the notes, significant amounts reclassified out of AOCI by the respective line items of net income, but only if the amount reclassified is required to be reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional details about those amounts. ASU 2013-02 does not change the current requirements for reporting net income or other comprehensive income in the financial statements. The Partnership adopted the provisions of ASU 2013-02 in the first quarter of 2013. The Partnership believes that adoption did not have a material impact on its financial statements, as amounts are not reclassified out of AOCI in its entirety.
	In July 2013, the FASB issued Accounting Standards Update No. 2013-11, “Income Taxes (Topic 740):  Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists,” (“ASU 2013-11”).  The update provides guidance on financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists.  This ASU applies to all entities with unrecognized tax benefits that also have tax loss or tax credit carryforwards in the same tax jurisdiction as to the reporting date.  The Partnership will adopt this standard in 2014.  The Partnership anticipates that adoption of the standard will not have a material impact on its consolidated financial statements.

SEGMENT_INFORMATION

SEGMENT INFORMATION	9 Months Ended
	Sep. 30, 2013
SEGMENT INFORMATION	'
SEGMENT INFORMATION	'
	(4)  SEGMENT INFORMATION
	The Partnership is one of the leading growers and processors of macadamia nuts in the world, processing and marketing macadamia nuts in-shell, in bulk form and as snack products marketed under the Royal Hawaiian Orchards® brand name.  The Partnership has three reportable segments which are organized on the basis of revenues and assets:  owned orchards, contract farming and branded products.  The owned-orchard segment derives its revenues primarily from the sale of wet-in-shell macadamia nuts grown in orchards owned or leased by the Partnership.  This segment also has a portion of its wet-in-shell nuts processed into macadamia kernel for sale to the branded products segment.  The contract farming segment derives its revenues from the farming of macadamia orchards it owns and orchards owned by other growers.  The contracts provide for reimbursement of actual farming cost incurred plus a mark-up fee which is a percentage of farming costs or a fixed amount per acre.  Contract farming revenues tend to be less variable than revenues from the owned-orchard segment.  The branded products segment derives its revenues from the sale of branded macadamia nut snack products and the sale of bulk macadamia nut kernel.
	Management evaluates the performance of each segment on the basis of operating income.  The Partnership’s reportable segments are distinct business enterprises that offer different products or services.  All intersegment sales and transfers are eliminated in consolidation.
	The following tables summarize each reportable segment’s revenues, operating income (loss), assets and other information as of and for the three and nine-month periods ended September 30, 2013 and 2012.  Due to the seasonality of crop patterns and the timing of nut purchase contract fulfillment, interim results are not necessarily indicative of annual performance.
		Three months ended September 30, 2013 (unaudited)
		(in thousands)
		Owned			Farming		Branded			Consolidation/			Total
		Orchards					Products			Reconciliation
	Revenues
	External customers	$	3,391		$	570	$	438		$	—		$	4,399
	Intersegment revenue	571			2,780		—			(3,351		)	—
	Total revenue	$	3,962		$	3,350	$	438		$	(3,351	)	$	4,399
	Operating income (loss)
	External customers	$	(577	)	$	28	$	(498	)	$	—		$	(1,047	)
	Intersegment operating income	164			—		(16		)	(148		)	—
	Total operating income (loss)	$	(413	)	$	28	$	(514	)	$	(148	)	$	(1,047	)
	Depreciation	$	771		$	108	$	4		$	—		$	883
	Expenditures for property & equipment	$	5		$	82	$	14		$	—		$	101
	Segment assets
	Segment assets	$	44,235		$	9,238	$	1,940		$	—		$	55,413
	Intersegment eliminations	4,813			—		321			(5,134		)	—
	Total segment assets	$	49,048		$	9,238	$	2,261		$	(5,134	)	$	55,413
		Three months ended September 30, 2012 (unaudited)
		(in thousands)
		Owned			Farming		Branded			Consolidation/			Total
		Orchards					Products			Reconciliation
	Revenues
	External customers	$	5,495		$	759	$	—		$	—		$	6,254
	Intersegment revenue	—			4,060		—			(4,060		)	—
	Total revenue	$	5,495		$	4,819	$	—		$	(4,060	)	$	6,254
	Operating income (loss)	$	537		$	35	$	(147	)	$	—		$	425
	Depreciation	$	671		$	99	$	—		$	—		$	770
	Expenditures for property & equipment	$	176		$	6	$	83		$	—		$	265
	Segment assets	$	51,014		$	7,481	$	161		$	—		$	58,656
		Nine months ended September 30, 2013 (unaudited)
		(in thousands)
		Owned			Farming		Branded			Consolidation/			Total
		Orchards					Products			Reconciliation
	Revenues
	External customers	$	4,805		$	1,231	$	905		$	—		$	6,941
	Intersegment revenue	1,220			4,416		—			(5,636		)	—
	Total revenue	$	6,025		$	5,647	$	905		$	(5,636	)	$	6,941
	Operating income (loss)
	External customers	$	(1,204	)	$	75	$	(1,583	)	$	—		$	(2,712	)
	Intersegment operating income	337			—		(16		)	(321		)	—
	Total operating income (loss)	$	(867	)	$	75	$	(1,599	)	$	(321	)	$	(2,712	)
	Depreciation	$	982		$	329	$	12		$	—		$	1,323
	Expenditures for property & equipment	$	57		$	155	$	46		$	—		$	258
	Segment assets
	Segment assets	$	44,235		$	9,238	$	1,940		$	—		$	55,413
	Intersegment eliminations	4,813			—		321			(5,134		)	—
	Total segment assets	$	49,048		$	9,238	$	2,261		$	(5,134	)	$	55,413
		Nine months ended September 30, 2012 (unaudited)
		(in thousands)
		Owned			Farming		Branded			Consolidation/			Total
		Orchards					Products			Reconciliation
	Revenues
	External customers	$	9,050		$	1,471	$	—		$	—		$	10,521
	Intersegment revenue	—			7,551		—			(7,551		)	—
	Total revenue	$	9,050		$	9,022	$	—		$	(7,551	)	$	10,521
	Operating income (loss)	$	202		$	95	$	(450	)	$	—		$	(153	)
	Depreciation	$	1,001		$	301	$	—		$	—		$	1,302
	Expenditures for property & equipment	$	200		$	57	$	83		$	—		$	340
Segment assets	$	51,014		$	7,481	$	161		$	—		$	58,656
All revenues are from sources within the United States of America.
The Partnership has reclassified its September 30, 2012 segment information to conform to the current period presentation.

DEFERRED_FARMING_COSTS

DEFERRED FARMING COSTS	9 Months Ended
	Sep. 30, 2013
DEFERRED FARMING COSTS	'
DEFERRED FARMING COSTS	'
	(5)  DEFERRED FARMING COSTS
	Orchard costs (e.g. irrigation, fertilizer, pruning, etc.) related to nuts sold under nut purchase contracts and services provided under farming contracts are expensed to cost of goods sold and cost of services provided based on management’s estimate of the production costs related to macadamia nuts sold during the interim reporting period.  The difference between costs incurred-to-date and costs expensed-to-date is reported on the consolidated balance sheet as deferred farming costs.  Deferred farming costs generally accumulate during the first and second quarters of the year and are expensed over the remainder of the year.

INVENTORIES

INVENTORIES	9 Months Ended
	Sep. 30, 2013
INVENTORIES	'
INVENTORIES	'
	(6)  INVENTORIES
	Inventories consisted of the following (in thousands):
		September 30,				December 31,
		2013		2012		2012
		(unaudited)
	Kernel	$	1,012	$	601	$	721
	Work-in-process (nut-in-shell)	993		—		—
	Finished goods	290		14		285
	Packaging supplies and ingredients	210		64		98
	Farming supplies	299		235		247
		$	2,804	$	914	$	1,351
	All inventories are stated at the lower of cost or market.   Work in process inventory is wet-in-shell nuts recorded at production cost.  The cost to produce the related nut and the kernel processing costs are reclassified on a first in first out basis to kernel inventory.  Management regularly evaluates its inventory for any impairment and has determined that an inventory valuation allowance is not required at this time.  Macadamia kernel, packaging, ingredients and nut-in-shell inventories will be used to manufacture branded products.  Farming supplies will be used in the owned orchard and contract farming segments to generate nut sales and contract farming revenue.

INCOME_TAXES

INCOME TAXES	9 Months Ended
	Sep. 30, 2013
INCOME TAXES	'
INCOME TAXES	'
	(7)  INCOME TAXES
	The Partnership is subject to a gross income tax as a result of its election to continue to be taxed as a partnership rather than a corporation, as allowed by the Taxpayer Relief Act of 1997.  This tax is calculated at 3.5% on partnership gross income.
	Royal is subject to taxation as a C Corporation at the current federal tax rate of 34% and state tax rate of 8.34% on the corporation’s taxable income (loss).  As a result of the cumulative tax losses of Royal, the balance of the Partnership’s deferred tax asset on Royal’s net operating loss carry-forwards at September 30, 2013 was $1.1 million, against which the Partnership has recorded a valuation allowance equal to 100% of the deferred tax asset due to the uncertainty regarding future realization.
	Losses from the branded product segment of the Partnership's business conducted by Royal cannot be used to offset taxable income in the owned orchards and contract farming segments.

GENERAL_EXCISE_TAXES

GENERAL EXCISE TAXES	9 Months Ended
	Sep. 30, 2013
GENERAL EXCISE TAXES	'
GENERAL EXCISE TAXES	'
	(8)  GENERAL EXCISE TAXES
	The Partnership records Hawaii general excise taxes when goods and services are sold on a gross basis as components of revenues and expenses.  For the three months ended September 30, 2013 and 2012, Hawaii general excise taxes charged or passed on to customers and reflected in revenues and expenses amounted to $9,000 and $13,000, respectively.   For the nine months ended September 30, 2013 and 2012, Hawaii general excise taxes charged or passed on to customers and reflected in revenues and expenses amounted to $21,000 and $25,000, respectively.

CREDIT_FACILITY_DEBT

CREDIT FACILITY - DEBT	9 Months Ended
	Sep. 30, 2013
CREDIT FACILITY - DEBT	'
CREDIT FACILITY - DEBT	'
	(9)  CREDIT FACILITY - DEBT
	On August 27, 2013, the Partnership executed a Sixth Amendment to Revolving Loan Promissory Note and a Third Amendment to Fourth Amended and Restated Credit Agreement with the Partnership’s existing lender, American AgCredit, PCA.  Under these documents the amount that is available for borrowing under the Partnership's revolving credit facility increased from $5.0 million to $7.0 million until December 31, 2013, at which time the revolving credit facility will be reduced to $5.0 million and any balance in excess of that amount must be repaid.  In addition, the interest rate on any portion of the additional $2.0 million revolver amount that is drawn upon increases by 50 basis points over the interest rate for the first $5.0 million loan which is the higher of (i) a base rate of 4% and (ii) the prime rate as published in the Wall Street Journal plus 1%,.   Other modifications include the reduction of the minimum EBITDA covenant to zero for the four quarters ended September 30, 2013 and certain definitional and technical changes.  The Partnership’s revolving credit facility with American AgCredit, PCA expires on May 1, 2014, and, therefore, indebtness under the revolving credit facility is classified as short-term on the Partnership's balance sheet as of September 30, 2013.  The Partnership had $5.6 million outstanding on the revolving credit facility at September 30, 2013, including $5.0 million with interest on revolving advances at 4.25% interest per annum and $600,000 with interest on advances at 4.75% interest per annum.  The Partnership had $4.7 million outstanding on the line of credit at September 30, 2012, with interest on revolving advances at 4.25% per annum.
	In addition to the revolving credit facility, the Partnership has a 10-year $10.5 million term loan with American AgCredit, PCA, which was entered into on August 4, 2010.  The term loan matures on July 1, 2020, requires equal monthly payments over the term and bears fixed interest at 6.5% per annum.  The Partnership had $7.2 million and $8.2 million outstanding on the term loan at September 30, 2013 and 2012, respectively.
	Both the revolving credit facility and the term loan are collateralized by all personal and real property assets of the Partnership and its subsidiaries.
	The credit agreements with American AgCredit, PCA, contain various financial covenants.  The Partnership was in compliance with all financial covenants at September 30, 2013 and 2012.
	The fair value of the line of credit is approximately the carrying value due to the variability of the interest rate and frequency that the interest rate resets.  The 10-year term loan has a fixed rate and has a fair value of approximately $7.7 million compared to a carrying value of $7.2 million as of September 30, 2013.  The inputs used in determining the fair value of the line of credit and loan are classified as Level 3 within the fair value measurement hierarchy.
	The estimated fair value of the Partnership’s fixed rate term loan was determined using an estimated market interest rate of 4.25% over a life equal to the remaining maturity.  The Partnership has not considered lender fees in determining the estimated fair value.

PARTNERS_CAPITAL

PARTNERS' CAPITAL	9 Months Ended
	Sep. 30, 2013
PARTNERS' CAPITAL	'
PARTNERS' CAPITAL	'
	(10)  PARTNERS’ CAPITAL
	Net income (loss) per Class A Unit is calculated by dividing 100% of Partnership net income (loss) by the average number of Class A Units outstanding for the period.

CASH_DISTRIBUTIONS

CASH DISTRIBUTIONS	9 Months Ended
	Sep. 30, 2013
CASH DISTRIBUTIONS	'
CASH DISTRIBUTIONS	'
	(11)  CASH DISTRIBUTIONS
	On April 12, 2013, a distribution of $0.02 per Class A Unit (a total of $150,000) was paid to unit holders of record as of March 29, 2013.  The credit agreement with American AgCredit, PCA prohibits the declaration and payment of cash distributions without prior approval from the lender.  The lender approved the distribution.  No distributions were declared or paid during the three and nine-month periods ended September 30, 2012.

PENSION_PLAN

PENSION PLAN	9 Months Ended
	Sep. 30, 2013
PENSION PLAN	'
PENSION PLAN	'
	(12) PENSION PLAN
	The Partnership sponsors a defined benefit pension plan covering employees that are members of a union bargaining unit.  The Partnership’s funding policy is to contribute an amount to the plan sufficient to meet the minimum funding requirements set forth in the Employee Retirement Income Security Act of 1974.
	Components of net periodic benefit cost are as follows (in thousands):
		Pension Benefits
		Three months						Nine months
		ended September 30,						ended September 30,
		2013			2012			2013			2012
	Service Cost	$	22		$	18		$	67		$	55
	Interest Cost	14			12			40			36
	Expected Return on Assets	(13		)	(11		)	(41		)	(35		)
	Amortization of Unrecognized Prior Service Costs	2			2			5			6
	Amortization of Unrecognized Loss	5			4			16			12
	Net Periodic Pension Cost	$	30		$	25		$	87		$	74

INTERMITTENT_SEVERANCE_PLAN

INTERMITTENT SEVERANCE PLAN	9 Months Ended
	Sep. 30, 2013
INTERMITTENT SEVERANCE PLAN	'
INTERMITTENT SEVERANCE PLAN	'
	(13)  INTERMITTENT SEVERANCE PLAN
	The Partnership sponsors a defined intermittent severance benefit plan covering employees that are members of a union bargaining unit and not covered by the defined benefit pension plan.  Payment of the severance benefit is made when covered employees cease employment with the Partnership under certain terms and conditions as defined in the union bargaining agreement.  Components of net periodic benefit cost are as follows (in thousands):
		Intermittent Severance Benefits
		Three months				Nine months
		ended September 30,				ended September 30,
		2013		2012		2013		2012
	Service Cost	$	5	$	4	$	15	$	12
	Interest Cost	4		3		11		10
	Net Periodic Intermittent Severance Cost	$	9	$	7	$	26	$	22

EMPLOYEES

EMPLOYEES	9 Months Ended
	Sep. 30, 2013
EMPLOYEES	'
EMPLOYEES	'
	(14)  EMPLOYEES
	The Partnership has two bargaining agreements with the ILWU Local 142.  These agreements cover all production, maintenance, and agricultural employees of the Ka’u Orchard Division and the Keaau and Mauna Kea Orchard Division.  On June 20, 2013 the Partnership and the ILWU Local 142 agreed to three year contracts, which are effective June 1, 2013 through May 31, 2016.  The Partnership believes that relations with its employees and the ILWU are good.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	9 Months Ended
	Sep. 30, 2013
SUBSEQUENT EVENTS	'
SUBSEQUENT EVENTS	'
	(15)  SUBSEQUENT EVENTS
	On the date hereof, the Partnership filed a registration statement on Form S-1 with the Securities and Exchange Commission in connection with a proposed distribution of non-transferable subscription rights to holders of the Partnership’s depositary receipts representing Class A Units of limited partnership interests (“Depositary Receipts”), to purchase up to 3,000,000 new Depositary Receipts.  After the registration statement becomes effective under the Securities Act of 1933, as amended, the Partnership intends to distribute one subscription right for each Depositary Receipt held with each subscription right entitling the holder to purchase .4 new Depositary Receipts, on the terms and conditions set forth in the registration statement.
	Assuming the subscription rights offering is completed, the Partnership intends to use the net proceeds to (1) fund increases in working capital including kernel inventory, finished goods inventory, and accounts receivable related to its branded product strategy; (2) repay indebtedness incurred to fund working capital needs; (3) fund promotional allowances including slotting fees related to its branded product strategy; and (4) for general Partnership purposes.

SEGMENT_INFORMATION_Tables

SEGMENT INFORMATION (Tables)	9 Months Ended
	Sep. 30, 2013
SEGMENT INFORMATION	'
Summary of each reportable segment's revenues, operating income (loss), assets and other information	'
		Three months ended September 30, 2013 (unaudited)
		(in thousands)
		Owned			Farming		Branded			Consolidation/			Total
		Orchards					Products			Reconciliation
	Revenues
	External customers	$	3,391		$	570	$	438		$	—		$	4,399
	Intersegment revenue	571			2,780		—			(3,351		)	—
	Total revenue	$	3,962		$	3,350	$	438		$	(3,351	)	$	4,399
	Operating income (loss)
	External customers	$	(577	)	$	28	$	(498	)	$	—		$	(1,047	)
	Intersegment operating income	164			—		(16		)	(148		)	—
	Total operating income (loss)	$	(413	)	$	28	$	(514	)	$	(148	)	$	(1,047	)
	Depreciation	$	771		$	108	$	4		$	—		$	883
	Expenditures for property & equipment	$	5		$	82	$	14		$	—		$	101
	Segment assets
	Segment assets	$	44,235		$	9,238	$	1,940		$	—		$	55,413
	Intersegment eliminations	4,813			—		321			(5,134		)	—
	Total segment assets	$	49,048		$	9,238	$	2,261		$	(5,134	)	$	55,413
		Three months ended September 30, 2012 (unaudited)
		(in thousands)
		Owned			Farming		Branded			Consolidation/			Total
		Orchards					Products			Reconciliation
	Revenues
	External customers	$	5,495		$	759	$	—		$	—		$	6,254
	Intersegment revenue	—			4,060		—			(4,060		)	—
	Total revenue	$	5,495		$	4,819	$	—		$	(4,060	)	$	6,254
	Operating income (loss)	$	537		$	35	$	(147	)	$	—		$	425
	Depreciation	$	671		$	99	$	—		$	—		$	770
	Expenditures for property & equipment	$	176		$	6	$	83		$	—		$	265
	Segment assets	$	51,014		$	7,481	$	161		$	—		$	58,656
		Nine months ended September 30, 2013 (unaudited)
		(in thousands)
		Owned			Farming		Branded			Consolidation/			Total
		Orchards					Products			Reconciliation
	Revenues
	External customers	$	4,805		$	1,231	$	905		$	—		$	6,941
	Intersegment revenue	1,220			4,416		—			(5,636		)	—
	Total revenue	$	6,025		$	5,647	$	905		$	(5,636	)	$	6,941
	Operating income (loss)
	External customers	$	(1,204	)	$	75	$	(1,583	)	$	—		$	(2,712	)
	Intersegment operating income	337			—		(16		)	(321		)	—
	Total operating income (loss)	$	(867	)	$	75	$	(1,599	)	$	(321	)	$	(2,712	)
	Depreciation	$	982		$	329	$	12		$	—		$	1,323
	Expenditures for property & equipment	$	57		$	155	$	46		$	—		$	258
	Segment assets
	Segment assets	$	44,235		$	9,238	$	1,940		$	—		$	55,413
	Intersegment eliminations	4,813			—		321			(5,134		)	—
	Total segment assets	$	49,048		$	9,238	$	2,261		$	(5,134	)	$	55,413
		Nine months ended September 30, 2012 (unaudited)
		(in thousands)
		Owned			Farming		Branded			Consolidation/			Total
		Orchards					Products			Reconciliation
	Revenues
	External customers	$	9,050		$	1,471	$	—		$	—		$	10,521
	Intersegment revenue	—			7,551		—			(7,551		)	—
	Total revenue	$	9,050		$	9,022	$	—		$	(7,551	)	$	10,521
	Operating income (loss)	$	202		$	95	$	(450	)	$	—		$	(153	)
	Depreciation	$	1,001		$	301	$	—		$	—		$	1,302
	Expenditures for property & equipment	$	200		$	57	$	83		$	—		$	340
	Segment assets	$	51,014		$	7,481	$	161		$	—		$	58,656

INVENTORIES_Tables

INVENTORIES (Tables)	9 Months Ended
	Sep. 30, 2013
INVENTORIES	'
Schedule of inventories	'
	Inventories consisted of the following (in thousands):
		September 30,				December 31,
		2013		2012		2012
		(unaudited)
	Kernel	$	1,012	$	601	$	721
	Work-in-process (nut-in-shell)	993		—		—
	Finished goods	290		14		285
	Packaging supplies and ingredients	210		64		98
	Farming supplies	299		235		247
		$	2,804	$	914	$	1,351

PENSION_PLAN_Tables

PENSION PLAN (Tables) (Pension Benefits)	9 Months Ended
	Sep. 30, 2013
Pension Benefits	'
Components of net periodic benefit cost	'
Schedule of components of net periodic benefit costs	'
	Components of net periodic benefit cost are as follows (in thousands):
		Pension Benefits
		Three months						Nine months
		ended September 30,						ended September 30,
		2013			2012			2013			2012
	Service Cost	$	22		$	18		$	67		$	55
	Interest Cost	14			12			40			36
	Expected Return on Assets	(13		)	(11		)	(41		)	(35		)
	Amortization of Unrecognized Prior Service Costs	2			2			5			6
	Amortization of Unrecognized Loss	5			4			16			12
	Net Periodic Pension Cost	$	30		$	25		$	87		$	74

INTERMITTENT_SEVERANCE_PLAN_Ta

INTERMITTENT SEVERANCE PLAN (Tables) (Intermittent Severance Benefits)	9 Months Ended
	Sep. 30, 2013
Intermittent Severance Benefits	'
Intermittent severance plan	'
Schedule of components of net periodic benefit costs	'
	Components of net periodic benefit cost are as follows (in thousands):
		Intermittent Severance Benefits
		Three months				Nine months
		ended September 30,				ended September 30,
		2013		2012		2013		2012
	Service Cost	$	5	$	4	$	15	$	12
	Interest Cost	4		3		11		10
	Net Periodic Intermittent Severance Cost	$	9	$	7	$	26	$	22

SEGMENT_INFORMATION_Details

SEGMENT INFORMATION (Details) (USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Dec. 31, 2012
			segment
SEGMENT INFORMATION	'	'	'	'	'
Number of reportable segments	'	'	3	'	'
Segment Information	'	'	'	'	'
Revenues	$4,399	$6,254	$6,941	$10,521	'
Operating income (loss)	-1,047	425	-2,712	-153	'
Depreciation	883	770	1,323	1,302	'
Expenditures for property & equipment	101	265	258	340	'
Segment assets	55,413	58,656	55,413	58,656	56,341
Owned orchards	'	'	'	'	'
Segment Information	'	'	'	'	'
Revenues	3,391	5,495	4,805	9,050	'
Operating income (loss)	-577	537	-1,204	202	'
Depreciation	771	671	982	1,001	'
Expenditures for property & equipment	5	176	57	200	'
Segment assets	44,235	51,014	44,235	51,014	'
Farming	'	'	'	'	'
Segment Information	'	'	'	'	'
Revenues	570	759	1,231	1,471	'
Operating income (loss)	28	35	75	95	'
Depreciation	108	99	329	301	'
Expenditures for property & equipment	82	6	155	57	'
Segment assets	9,238	7,481	9,238	7,481	'
Branded product	'	'	'	'	'
Segment Information	'	'	'	'	'
Revenues	438	'	905	'	'
Operating income (loss)	-498	-147	-1,583	-450	'
Depreciation	4	'	12	'	'
Expenditures for property & equipment	14	83	46	83	'
Segment assets	1,940	161	1,940	161	'
Operating segment | Owned orchards	'	'	'	'	'
Segment Information	'	'	'	'	'
Revenues	3,962	5,495	6,025	9,050	'
Operating income (loss)	-413	'	-867	'	'
Segment assets	49,048	'	49,048	'	'
Operating segment | Farming	'	'	'	'	'
Segment Information	'	'	'	'	'
Revenues	3,350	4,819	5,647	9,022	'
Operating income (loss)	28	'	75	'	'
Segment assets	9,238	'	9,238	'	'
Operating segment | Branded product	'	'	'	'	'
Segment Information	'	'	'	'	'
Revenues	438	'	905	'	'
Operating income (loss)	-514	'	-1,599	'	'
Segment assets	2,261	'	2,261	'	'
Consolidation/Reconciliation	'	'	'	'	'
Segment Information	'	'	'	'	'
Revenues	-3,351	-4,060	-5,636	-7,551	'
Operating income (loss)	-148	'	-321	'	'
Segment assets	-5,134	'	-5,134	'	'
Consolidation/Reconciliation | Owned orchards	'	'	'	'	'
Segment Information	'	'	'	'	'
Revenues	571	'	1,220	'	'
Operating income (loss)	164	'	337	'	'
Segment assets	4,813	'	4,813	'	'
Consolidation/Reconciliation | Farming	'	'	'	'	'
Segment Information	'	'	'	'	'
Revenues	2,780	4,060	4,416	7,551	'
Consolidation/Reconciliation | Branded product	'	'	'	'	'
Segment Information	'	'	'	'	'
Operating income (loss)	-16	'	-16	'	'
Segment assets	$321	'	$321	'	'

INVENTORIES_Details

INVENTORIES (Details) (USD $)	Sep. 30, 2013	Dec. 31, 2012	Sep. 30, 2012
In Thousands, unless otherwise specified
INVENTORIES	'	'	'
Kernel	$1,012	$721	$601
Work-in-process (nut-in-shell)	993	'	'
Finished goods	290	285	14
Packaging supplies and ingredients	210	98	64
Farming supplies	299	247	235
Total	$2,804	$1,351	$914

INCOME_TAXES_Details

INCOME TAXES (Details) (USD $)	9 Months Ended
In Millions, unless otherwise specified	Sep. 30, 2013
Income taxes	'
Federal income tax rate (as a percent)	3.50%
Royal Hawaiian Macadamia Nut, Inc.	'
Income taxes	'
Federal tax rate on the entity's operating income (loss) (as a percent)	34.00%
State tax rate on the corporation's taxable income (loss) (as a percent)	8.34%
Deferred tax assets	1.1
Valuation allowance as percentage of the deferred tax asset	100.00%

GENERAL_EXCISE_TAXES_Details

GENERAL EXCISE TAXES (Details) (USD $)	3 Months Ended		9 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
GENERAL EXCISE TAXES	'	'	'	'
General excise taxes	$9,000	$13,000	$21,000	$25,000

CREDIT_FACILITY_DEBT_Details

CREDIT FACILITY - DEBT (Details) (USD $)	0 Months Ended	9 Months Ended	12 Months Ended						0 Months Ended	9 Months Ended
	Aug. 27, 2013	Sep. 30, 2013	Sep. 30, 2013	Jan. 01, 2014	Aug. 26, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2013	Aug. 04, 2010	Sep. 30, 2013	Sep. 30, 2012
	Revolving credit facility	Revolving credit facility	Revolving credit facility	Revolving credit facility	Revolving credit facility	Revolving credit facility	Revolving advances at 4.25% interest	Advances at 4.75% interest	Term loan facility	Term loan facility	Term loan facility
Credit facility - debt	'	'	'	'	'	'	'	'	'	'	'
Maximum borrowing capacity	$7,000,000	'	'	$5,000,000	$5,000,000	'	'	'	'	'	'
Additional revolver amount	2,000,000	'	'	'	'	'	'	'	'	'	'
Additional basis spread on variable interest rate (as a percent)	0.50%	'	'	'	'	'	'	'	'	'	'
Maximum borrowing capacity	'	5,000,000	5,000,000	'	'	'	'	'	10,500,000	'	'
Interest rate (as a percent)	'	4.00%	4.00%	'	'	'	'	'	'	6.50%	'
Base rate of interest on debt	'	'prime rate	'	'	'	'	'	'	'	'	'
Basis spread on variable interest rate (as a percent)	'	1.00%	'	'	'	'	'	'	'	'	'
Minimum quarterly consolidated EBITDA	'	'	0	'	'	'	'	'	'	'	'
Outstanding amount of borrowings	'	5,600,000	5,600,000	'	'	4,700,000	5,000,000	600,000	'	'	'
Interest rate on revolving advances (as a percent)	'	'	'	'	'	4.25%	4.25%	4.75%	'	'	'
Maturity period	'	'	'	'	'	'	'	'	'10 years	'	'
Outstanding amount of debt	'	'	'	'	'	'	'	'	'	7,200,000	8,200,000
Fair value of debt	'	'	'	'	'	'	'	'	'	7,700,000	'
Carrying value of debt	'	'	'	'	'	'	'	'	'	$7,200,000	'
Estimated market interest rate (as a percent)	'	'	'	'	'	'	'	'	'	4.25%	'

PARTNERS_CAPITAL_Details

PARTNERS' CAPITAL (Details)	9 Months Ended
	Sep. 30, 2013
PARTNERS' CAPITAL	'
Percentage of partnership net income (loss) used in calculation of net income (loss) per Class A Unit	100.00%

CASH_DISTRIBUTIONS_Details

CASH DISTRIBUTIONS (Details) (USD $)	0 Months Ended	9 Months Ended
	Apr. 12, 2013	Sep. 30, 2013
CASH DISTRIBUTIONS	'	'
Cash distribution per Class A Unit (in dollars per unit)	$0.02	$0.02
Cash distribution to Class A Unit	$150,000	'

PENSION_PLAN_Details

PENSION PLAN (Details) (Pension Benefits, USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Pension Benefits	'	'	'	'
Components of net periodic benefit cost	'	'	'	'
Service Cost	$22	$18	$67	$55
Interest Cost	14	12	40	36
Expected Return on Assets	-13	-11	-41	-35
Amortization of Unrecognized Prior Service Costs	2	2	5	6
Amortization of Unrecognized Loss	5	4	16	12
Net Periodic Pension Cost	$30	$25	$87	$74

INTERMITTENT_SEVERANCE_PLAN_De

INTERMITTENT SEVERANCE PLAN (Details) (Intermittent Severance Benefits, USD $)	3 Months Ended		9 Months Ended
In Thousands, unless otherwise specified	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012
Intermittent Severance Benefits	'	'	'	'
Intermittent severance plan	'	'	'	'
Service Cost	$5	$4	$15	$12
Interest Cost	4	3	11	10
Net Periodic Intermittent Severance Cost	$9	$7	$26	$22

EMPLOYEES_Details

EMPLOYEES (Details)	0 Months Ended	9 Months Ended
	Jun. 01, 2013	Sep. 30, 2013
		item
EMPLOYEES	'	'
Number of bargaining agreements with ILWU Local 142	'	2
Term of bargaining agreement	'3 years	'

SUBSEQUENT_EVENTS_Details

SUBSEQUENT EVENTS (Details) (Subsequent event, Depositary receipts, Proposal for distribution of subscription rights to limited partners, Subscription rights for depositary receipts, USD $)	Nov. 04, 2013
Subsequent events	'
Number of subscription rights to be distributed to holder of each Depositary Receipt	$1
Number of new Depositary Receipts that can be purchased by the holder of each subscription right	0.4
Maximum	'
Subsequent events	'
Number of new Depositary Receipts that can be purchased	3,000,000