Royal Hawaiian Orchards (NNUTU) 10-Q 14 May 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	14-May-14
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	31-Mar-14	'
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	'	11,100,000
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'

Condensed_Consolidated_Balance

Condensed Consolidated Balance Sheets (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
In Thousands, unless otherwise specified
Current assets	'	'	'
Cash and cash equivalents	$3,204	$205	$369
Accounts receivable	2,163	3,827	967
Inventories	4,903	4,658	1,894
Deferred farming costs	982	'	1,572
Other current assets	387	499	419
Total current assets	11,639	9,189	5,221
Land, orchards and equipment, net	44,854	44,844	46,419
Intangible assets, net	468	493	532
Other non-current assets	8	198	'
Total assets	56,969	54,724	52,172
Current liabilities	'	'	'
Current portion of long-term debt	1,050	1,050	1,050
Line of credit	'	5,900	'
Accounts payable	843	636	538
Cash distributions payable	'	'	150
Accrued payroll and benefits	746	1,275	700
Other current liabilities	192	173	106
Total current liabilities	2,831	9,034	2,544
Non-current pension benefits	311	311	713
Long-term debt	5,600	5,775	6,650
Deferred income tax liability	1,014	1,020	1,034
Total liabilities	9,756	16,140	10,941
Commitments and contingencies	'	'	'
Partners' capital	'	'	'
General partner	81	81	81
Class A limited partners, no par or assigned value, 11,100 units and 7,500 units authorized, issued and outstanding, respectively	47,093	38,466	41,508
Accumulated other comprehensive income (loss)	39	37	-358
Total partners' capital	47,213	38,584	41,231
Total liabilities and partners' capital	$56,969	$54,724	$52,172

Condensed_Consolidated_Balance1

Condensed Consolidated Balance Sheets (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
In Thousands, except Per Share data, unless otherwise specified
Condensed Consolidated Balance Sheets	'	'	'
Class A limited partners, units par or assigned value (in dollars per unit)	$0	$0	$0
Class A limited partners, units issued	11,100	7,500	7,500
Class A limited partners, units outstanding	11,100	7,500	7,500
Class A limited partners, units authorized	11,100	7,500	7,500

Condensed_Consolidated_Stateme

Condensed Consolidated Statements of Comprehensive Loss (USD $)	3 Months Ended
Share data in Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Condensed Consolidated Statements of Comprehensive Loss	'	'
Orchards revenue	$1,923,000	$1,789,000
Branded product sales, net	1,677,000	206,000
Total revenues	3,600,000	1,995,000
Cost of revenues	'	'
Cost of orchards revenue	1,444,000	1,460,000
Cost of branded product sales	1,288,000	269,000
Total cost of revenues	2,732,000	1,729,000
Gross profit	868,000	266,000
Selling, general and administrative expenses	986,000	818,000
Operating loss	-118,000	-552,000
Interest expense	-166,000	-144,000
Interest and other income	79,000	'
(Loss) gain on disposition of property and equipment	-13,000	83,000
Loss before income taxes	-218,000	-613,000
Income tax expense	35,000	15,000
Net loss	-253,000	-628,000
Other comprehensive income, net of tax	'	'
Amortization of prior service cost	2,000	2,000
Amortization of actuarial loss	'	5,000
Defined benefit pension plan expense	2,000	7,000
Other comprehensive income, net of tax	2,000	7,000
Comprehensive loss	($251,000)	($621,000)
Net loss per Class A Unit (in dollars per unit)	($0.03)	($0.08)
Cash distributions per Class A Unit (in dollars per unit)	'	$0.02
Weighted average Class A Units outstanding (in units)	9,660	7,500

Condensed_Consolidated_Stateme1

Condensed Consolidated Statements of Partners' Capital (USD $)	Total	Accumulated other comprehensive income (loss)	General partner	Class A limited partners
In Thousands, unless otherwise specified
Balance at Dec. 31, 2012	$42,002	($365)	$81	$42,286
Allocation of net loss:	'	'	'	'
Allocation of net loss:	-628	'	'	-628
Cash distributions:	'	'	'	'
Cash distributions:	-150	'	'	-150
Other comprehensive income:	'	'	'	'
Change in pension and severance obligations	7	7	'	'
Balance at Mar. 31, 2013	41,231	-358	81	41,508
Balance at Dec. 31, 2013	38,584	37	81	38,466
Allocation of net loss:	'	'	'	'
Allocation of net loss:	-253	'	'	-253
Units issued for cash:	'	'	'	'
Class A limited partner units (3,600 units), net of fees of $300	8,880	'	'	8,880
Other comprehensive income:	'	'	'	'
Change in pension and severance obligations	2	2	'	'
Balance at Mar. 31, 2014	$47,213	$39	$81	$47,093

Condensed_Consolidated_Stateme2

Condensed Consolidated Statements of Partners' Capital (Parenthetical) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014
Condensed Consolidated Statements of Partners' Capital	'
Class A limited partner units, units	3,600
Class A limited partner units, fees	$300

Condensed_Consolidated_Stateme3

Condensed Consolidated Statements of Cash Flows (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
Cash flows from operating activities:	'	'
Cash received from goods and services	$5,343,000	$6,894,000
Cash paid to suppliers and employees	-4,612,000	-5,193,000
Interest paid	-83,000	-89,000
Net cash provided by operating activities	648,000	1,612,000
Cash flows from investing activities:	'	'
Proceeds from sale of property and equipment	'	1,106,000
Purchase of property and equipment	-644,000	-35,000
Net cash (used in) provided by investing activities	-644,000	1,071,000
Cash flows from financing activities:	'	'
Proceeds from rights offering	9,180,000	'
Payment of rights offering fees	-110,000	'
Proceeds from drawings on line of credit	2,100,000	400,000
Repayment on line of credit	-8,000,000	-2,800,000
Payments on long term borrowings	-175,000	-175,000
Net cash provided by (used in) financing activities	2,995,000	-2,575,000
Net increase in cash and cash equivalents	2,999,000	108,000
Cash and cash equivalents at beginning of period	205,000	261,000
Cash and cash equivalents at end of period	3,204,000	369,000
Reconciliation of net loss to net cash provided by operating activities:	'	'
Net loss	-253,000	-628,000
Adjustments to reconcile net loss to cash provided by operating activities:	'	'
Depreciation and amortization	397,000	339,000
Net loss (gain) on sale of property & equipment	13,000	-83,000
Defined benefit pension plan expense	2,000	7,000
Deferred income tax credit	-6,000	-5,000
Decrease in accounts receivable	1,664,000	4,819,000
Increase in inventories	-245,000	-543,000
Increase in deferred farming costs	-733,000	-1,267,000
Increase (decrease) in other current assets	112,000	-59,000
Increase (decrease) in accounts payable	207,000	-583,000
Decrease in accrued payroll and benefits	-529,000	-331,000
Increase (decrease) in other current liabilities	19,000	-54,000
Total adjustments	901,000	2,240,000
Net cash provided by operating activities	648,000	1,612,000
Supplemental disclosure of non-cash activity:	'	'
Depreciation expense included in deferred farming costs	249,000	197,000
Offering costs netted against offering proceeds	190,000	'
Distributions declared but not paid	'	$150,000

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2014
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 condensed consolidated financial statements of Royal Hawaiian Orchards, L.P. and its subsidiaries Royal Hawaiian Resources, Inc., Royal Hawaiian Services, LLC and Royal Hawaiian Macadamia Nut, Inc. (“Royal”), include all adjustments of a normal recurring nature considered necessary to present fairly its financial position as of March 31, 2014 and 2013 and December 31, 2013 and the results of operations, changes in partners’ capital and cash flows for the three months ended March 31, 2014 and 2013.  The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results expected for the full year or for any future period.
	The Partnership’s business is highly seasonal, reflecting the general pattern of peak production and consumer demand for nut products during the months of October, November and December.  Typically, a substantial portion of the Partnership’s revenues occur during our third and fourth quarters.  The Partnership generally experiences lower revenues during its first and second quarters and may incur losses in these quarters.
	The December 31, 2013 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.  These 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 2013 Annual Report on Form 10-K.

CONSOLIDATION

CONSOLIDATION	3 Months Ended
	Mar. 31, 2014
CONSOLIDATION	'
CONSOLIDATION	'
	(2)                  CONSOLIDATION
	The consolidated financial statements include the accounts of the Partnership and its subsidiaries. All significant intercompany balances and transactions, including sales, cost of sales, management fees and distributions, have been eliminated.

SEGMENT_INFORMATION

SEGMENT INFORMATION	3 Months Ended
	Mar. 31, 2014
SEGMENT INFORMATION	'
SEGMENT INFORMATION	'
	(3)                   SEGMENT INFORMATION
	Effective for the year ended December 31, 2013, the Partnership changed the way it reports its business segments in accordance with Accounting Standards Codification 280, Segment Reporting, to align reporting with the way the chief operating decision maker evaluates and makes decisions concerning the allocation of resources and the assessment of performance.  Previously, farming operations were shown as a separate segment, but are now incorporated into the orchards segment.  For financial reporting purposes, prior year information has been presented based on the new segment reporting structure.
	The Partnership’s two reportable segments, orchards and branded products, are organized on the basis of revenues and assets.  The orchards segment derives its revenues from the sale of in-shell macadamia nuts grown in orchards owned or leased by the Partnership, macadamia nut kernel sales to Royal and revenues from the farming of macadamia orchards owned by other growers.  The branded products segment derives its revenues from the sale of branded macadamia nut products and bulk macadamia nut kernel reported under Royal.
	The chief operating decision maker evaluates the performance of each segment on the basis of operating income and topline growth.  The Partnership accounts for intersegment sales and transfers at cost plus a mark-up and such transactions are eliminated in consolidation.
	The Partnership’s reportable segments are distinct business enterprises that offer different products or services.
	The following tables summarize each reportable segment’s revenues, operating income or loss, assets and other information as of and for the three months ended March 31, 2014 and 2013.  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 March 31, 2014
		(in thousands)
		Orchards			Branded			Consolidation/			Total
					Products			Reconciliation
	Revenues
	External customers	$	1,923		$	1,677	(a)	$	—		$	3,600
	Intersegment revenue	2,218			—			(2,218		)	—
	Total revenue	$	4,141		$	1,677		$	(2,218	)	$	3,600
	Operating income (loss)
	External customers	$	115		$	(233	)	$	—		$	(118	)
	Intersegment operating income (loss)	501			(348		)	(153		)	—
	Total operating income (loss)	$	616		$	(581	)	$	(153	)	$	(118	)
	Depreciation	$	357		$	4		$	—		$	361
	Capital Expenditures	$	624		$	20		$	—		$	644
	Segment assets
	Segment assets	$	50,252		$	6,717		$	—		$	56,969
	Intersegment elimination	15,632			5,322			(20,954		)	—
	Total segment assets	$	65,884		$	12,039		$	(20,954	)	$	56,969
		Three months ended March  31, 2013
		(in thousands)
		Orchards			Branded			Consolidation/			Total
					Products			Reconciliation
	Revenues
	External customers	$	1,789		$	206	(a)	$	—		$	1,995
	Intersegment revenue	355			—			(355		)	—
	Total revenue	$	2,144		$	206		$	(355	)	$	1,995
	Operating income (loss)
	External customers	$	(30	)	$	(522	)	$	—		$	(552	)
	Intersegment operating income (loss)	95			—			(95		)	—
	Total operating income (loss)	$	65		$	(522	)	$	(95	)	$	(552	)
	Depreciation	$	312		$	4		$	—		$	316
	Capital Expenditures	$	31		$	4		$	—		$	35
	Segment assets
	Segment assets	$	50,462		$	1,710		$	—		$	52,172
	Intersegment elimination	3,159			95			(3,254		)	—
	Total segment assets	$	53,621		$	1,805		$	(3,254	)	$	52,172
	All revenues are from sources within the United States of America and Canada.
	(a)  Branded products revenue is reported net of slotting fees and trade discounts.

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2014
INVENTORIES	'
INVENTORIES	'
	(4)                   INVENTORIES
	Inventories consisted of the following (in thousands):
		March 31,					December 31,
		2014			2013		2013
	Macadamia nut kernel	$	2,558		$	789	$	1,761
	Work-in-process	1,597			233		2,055
	Finished goods	279			479		438
	Farming supplies	287			299		267
	Packaging supplies and ingredients	212			94		167
	Allowance for shrink and obsolescence	(30		)	—		(30		)
	Total	$	4,903		$	1,894	$	4,658
	Work-in-process inventory is wet-in-shell nuts recorded at production cost.

LAND_ORCHARDS_AND_EQUIPMENT

LAND, ORCHARDS AND EQUIPMENT	3 Months Ended
	Mar. 31, 2014
LAND, ORCHARDS AND EQUIPMENT	'
LAND, ORCHARDS AND EQUIPMENT	'
	(5)                   LAND, ORCHARDS AND EQUIPMENT
	Land, orchards and equipment, stated at cost, consisted of the following (in thousands):
		March 31,				December 31,
		2014		2013		2013
	Land	$	8,884	$	8,884	$	8,884
	Improvements	1,976		1,980		1,976
	Machinery and equipment	5,437		5,390		5,425
	Irrigation well and equipment	2,592		2,592		2,592
	Producing orchards	76,325		76,325		76,325
	Construction work-in-progress	812		226		190
	Subtotal land, orchards and equipment	96,026		95,397		95,392
	Less accumulated depreciation and amortization	51,172		48,978		50,548
	Land, orchards and equipment, net	$	44,854	$	46,419	$	44,844

DEFERRED_FARMING_COSTS

DEFERRED FARMING COSTS	3 Months Ended
	Mar. 31, 2014
DEFERRED FARMING COSTS	'
DEFERRED FARMING COSTS	'
	(6)                   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 revenues on management’s estimate of the costs incurred to produce macadamia nuts sold during the interim reporting period, with the difference between costs incurred-to-date and costs expensed-to-date reported on the consolidated balance sheet as deferred farming costs.  Deferred farming costs generally accumulate during the first and second quarter of the year and are expensed over the remainder of the year.

INCOME_TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2014
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 profit (net revenues less cost of revenues).
	Royal is subject to taxation as a C Corporation at the current federal tax rate of 34% and state tax rates ranging from 6.4% to 8.84% 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 March 31, 2014 was approximately $1.6 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.

CREDIT_FACILITY_DEBT

CREDIT FACILITY - DEBT

3 Months Ended

Mar. 31, 2014

CREDIT FACILITY - DEBT

'

CREDIT FACILITY - DEBT

'

(8)                   CREDIT FACILITY - DEBT

On April 23, 2014, the Partnership executed an Eighth Amendment to Revolving Loan Promissory Note and a Fifth Amendment to Fourth Amended and Restated Credit Agreement with the Partnership’s existing lender American AgCredit, PCA (“AgCredit”).  The amendments extend the maturity date of the revolving loan from May 1, 2014 to August 1, 2014.

Advances under the $5.0 million revolving credit facility bear interest at the base rate of 4% or the prime rate as published in the Wall Street Journal plus 1%, whichever is higher.  There were no outstanding amounts on the revolving credit facility as of March 31, 2014 and 2013.  The outstanding balance on the revolving credit facility as of December 31, 2013 was $5.9 million.

The Partnership also has a 10-year $10.5 million term loan with AgCredit, which was entered into on August 4, 2010.  The term loan matures on July 1, 2020, requires monthly payments, with fixed principle reductions, over the term and bears fixed interest at 6.5% per annum.  The outstanding balances of the term loan at March 31, 2014 and 2013, and December 31, 2013 amounted to $6.7 million, $7.7 million and $6.8 million, 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 AgCredit contain various financial covenants.  The Partnership was in compliance with all financial covenants at March 31, 2014 and 2013, and December 31, 2013.  For the twelve-month period ended December 31, 2013, the minimum EBITDA covenant requirement was waived.

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 estimated fair value of the Partnership’s fixed rate term loan was determined through a discounted cash flow using an estimated market interest rate of 4.25% in 2014 and 2013 with similar terms and remaining maturities to that of the current financial instruments.  The Partnership has not considered lender fees in determining the estimated fair values.

The estimated fair values of the Partnership’s financial instrument are as follows (in thousands):

March 31,

December 31,

2014

2013

2013

Carrying

Fair

Carrying

Fair

Carrying

Fair

Amount

Value

Amount

Value

Amount

Value

Long-term debt

$

6,650

$

7,089

$

7,700

$

8,279

$

6,825

$

7,286

The inputs used in determining the fair value of the long-term debt and revolving credit facility are classified as Level 3 within the fair value measurement hierarchy.

PARTNERS_CAPITAL

PARTNERS' CAPITAL	3 Months Ended
	Mar. 31, 2014
PARTNERS' CAPITAL	'
PARTNERS' CAPITAL	'
	(9)                   PARTNERS’ CAPITAL
	Net loss per Class A Unit is calculated by dividing 100% of Partnership net loss by the weighted average number of Class A Units outstanding for the period.

CASH_DISTRIBUTIONS

CASH DISTRIBUTIONS	3 Months Ended
	Mar. 31, 2014
CASH DISTRIBUTIONS	'
CASH DISTRIBUTIONS	'
	(10)            CASH DISTRIBUTIONS
	The credit agreement with AgCredit prohibits the declaration and payment of cash distributions without prior approval from the lender.    On March 26, 2013, a distribution of $0.02 per Class A unit (a total of $150,000) payable on April 12, 2013 to unit holders of record as of March 29, 2013, was declared and approved. The lender approved the distribution and provided their consent. No distributions were declared or paid during the three months ended March 31, 2014.

PENSION_PLAN

PENSION PLAN	3 Months Ended
	Mar. 31, 2014
PENSION PLAN	'
PENSION PLAN	'
	(11)            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.
	The components of net periodic benefit cost consisted of the following (in thousands):
		Pension Benefits
		Three Months Ended March 31,
		2014			2013
	Service Cost	$	16		$	22
	Interest Cost	15			13
	Expected Return on Assets	(17		)	(14		)
	Amortization of Unrecognized Prior Service Costs	2			2
	Amortization of Unrecognized Loss	—			5
	Net Periodic Pension Cost	$	16		$	28

INTERMITTENT_SEVERANCE_PLAN

INTERMITTENT SEVERANCE PLAN	3 Months Ended
	Mar. 31, 2014
INTERMITTENT SEVERANCE PLAN	'
INTERMITTENT SEVERANCE PLAN	'
	(12)            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.
	The components of net periodic benefit cost consisted of the following (in thousands):
		Intermittent Severance Benefit
		Three Months Ended March 31,
		2014		2013
	Service Cost	$	4	$	5
	Interest Cost	4		4
	Net Periodic Intermittent Severance Cost	$	8	$	9

RIGHTS_OFFERING

RIGHTS OFFERING	3 Months Ended
	Mar. 31, 2014
RIGHTS OFFERING	'
RIGHTS OFFERING	'
	(13)            RIGHTS OFFERING
	The Partnership completed its rights offering on February 6, 2014.  The rights offering allowed existing unitholders of the Partnership to purchase an aggregate of 3.6 million Units at $2.55 per Unit.  The rights offering was fully subscribed and raised net proceeds of $8.9 million after deducting offering expenses of $300,000.  Following the purchase of the Class A Units upon exercise of the rights, the Partnership has 11.1 million Units outstanding.

SEGMENT_INFORMATION_Tables

SEGMENT INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2014
SEGMENT INFORMATION	'
Summary of each reportable segment's revenues, operating income or loss, assets and other information	'
		Three months ended March 31, 2014
		(in thousands)
		Orchards			Branded			Consolidation/			Total
					Products			Reconciliation
	Revenues
	External customers	$	1,923		$	1,677	(a)	$	—		$	3,600
	Intersegment revenue	2,218			—			(2,218		)	—
	Total revenue	$	4,141		$	1,677		$	(2,218	)	$	3,600
	Operating income (loss)
	External customers	$	115		$	(233	)	$	—		$	(118	)
	Intersegment operating income (loss)	501			(348		)	(153		)	—
	Total operating income (loss)	$	616		$	(581	)	$	(153	)	$	(118	)
	Depreciation	$	357		$	4		$	—		$	361
	Capital Expenditures	$	624		$	20		$	—		$	644
	Segment assets
	Segment assets	$	50,252		$	6,717		$	—		$	56,969
	Intersegment elimination	15,632			5,322			(20,954		)	—
	Total segment assets	$	65,884		$	12,039		$	(20,954	)	$	56,969
		Three months ended March  31, 2013
		(in thousands)
		Orchards			Branded			Consolidation/			Total
					Products			Reconciliation
	Revenues
	External customers	$	1,789		$	206	(a)	$	—		$	1,995
	Intersegment revenue	355			—			(355		)	—
	Total revenue	$	2,144		$	206		$	(355	)	$	1,995
	Operating income (loss)
	External customers	$	(30	)	$	(522	)	$	—		$	(552	)
	Intersegment operating income (loss)	95			—			(95		)	—
	Total operating income (loss)	$	65		$	(522	)	$	(95	)	$	(552	)
	Depreciation	$	312		$	4		$	—		$	316
	Capital Expenditures	$	31		$	4		$	—		$	35
	Segment assets
	Segment assets	$	50,462		$	1,710		$	—		$	52,172
	Intersegment elimination	3,159			95			(3,254		)	—
	Total segment assets	$	53,621		$	1,805		$	(3,254	)	$	52,172
	All revenues are from sources within the United States of America and Canada.
	(a)  Branded products revenue is reported net of slotting fees and trade discounts.

INVENTORIES_Tables

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2014
INVENTORIES	'
Schedule of inventories	'
	Inventories consisted of the following (in thousands):
		March 31,					December 31,
		2014			2013		2013
	Macadamia nut kernel	$	2,558		$	789	$	1,761
	Work-in-process	1,597			233		2,055
	Finished goods	279			479		438
	Farming supplies	287			299		267
	Packaging supplies and ingredients	212			94		167
	Allowance for shrink and obsolescence	(30		)	—		(30		)
	Total	$	4,903		$	1,894	$	4,658

LAND_ORCHARDS_AND_EQUIPMENT_Ta

LAND, ORCHARDS AND EQUIPMENT (Tables)	3 Months Ended
	Mar. 31, 2014
LAND, ORCHARDS AND EQUIPMENT	'
Schedule of components of land, orchards and equipment, stated at cost	'
	Land, orchards and equipment, stated at cost, consisted of the following (in thousands):
		March 31,				December 31,
		2014		2013		2013
	Land	$	8,884	$	8,884	$	8,884
	Improvements	1,976		1,980		1,976
	Machinery and equipment	5,437		5,390		5,425
	Irrigation well and equipment	2,592		2,592		2,592
	Producing orchards	76,325		76,325		76,325
	Construction work-in-progress	812		226		190
	Subtotal land, orchards and equipment	96,026		95,397		95,392
	Less accumulated depreciation and amortization	51,172		48,978		50,548
	Land, orchards and equipment, net	$	44,854	$	46,419	$	44,844

CREDIT_FACILITY_DEBT_Tables

CREDIT FACILITY - DEBT (Tables)

3 Months Ended

Mar. 31, 2014

CREDIT FACILITY - DEBT

'

Schedule of estimated fair values of the Partnership's financial instrument

'

The estimated fair values of the Partnership’s financial instrument are as follows (in thousands):

March 31,

December 31,

2014

2013

2013

Carrying

Fair

Carrying

Fair

Carrying

Fair

Amount

Value

Amount

Value

Amount

Value

Long-term debt

$

6,650

$

7,089

$

7,700

$

8,279

$

6,825

$

7,286

PENSION_PLAN_Tables

PENSION PLAN (Tables) (Pension Benefits)	3 Months Ended
	Mar. 31, 2014
Pension Benefits	'
Components of net periodic benefit cost	'
Schedule of components of net periodic benefit cost	'
	The components of net periodic benefit cost consisted of the following (in thousands):
		Pension Benefits
		Three Months Ended March 31,
		2014			2013
	Service Cost	$	16		$	22
	Interest Cost	15			13
	Expected Return on Assets	(17		)	(14		)
	Amortization of Unrecognized Prior Service Costs	2			2
	Amortization of Unrecognized Loss	—			5
	Net Periodic Pension Cost	$	16		$	28

INTERMITTENT_SEVERANCE_PLAN_Ta

INTERMITTENT SEVERANCE PLAN (Tables) (Intermittent Severance Benefit)	3 Months Ended
	Mar. 31, 2014
Intermittent Severance Benefit	'
Intermittent severance plan	'
Schedule of components of net periodic benefit cost	'
	The components of net periodic benefit cost consisted of the following (in thousands):
		Intermittent Severance Benefit
		Three Months Ended March 31,
		2014		2013
	Service Cost	$	4	$	5
	Interest Cost	4		4
	Net Periodic Intermittent Severance Cost	$	8	$	9

SEGMENT_INFORMATION_Details_2

SEGMENT INFORMATION (Details 2) (USD $)	3 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Dec. 31, 2013
	segment
SEGMENT INFORMATION	'	'	'
Number of reportable segments	2	'	'
Segment Information	'	'	'
Revenues	$3,600,000	$1,995,000	'
Operating income (loss)	-118,000	-552,000	'
Depreciation	361,000	316,000	'
Capital Expenditures	644,000	35,000	'
Segment assets	56,969,000	52,172,000	54,724,000
Orchards	'	'	'
Segment Information	'	'	'
Revenues	1,923,000	1,789,000	'
Operating income (loss)	115,000	-30,000	'
Depreciation	357,000	312,000	'
Capital Expenditures	624,000	31,000	'
Segment assets	50,252,000	50,462,000	'
Branded product	'	'	'
Segment Information	'	'	'
Revenues	1,677,000	206,000	'
Operating income (loss)	-233,000	-522,000	'
Depreciation	4,000	4,000	'
Capital Expenditures	20,000	4,000	'
Segment assets	6,717,000	1,710,000	'
Operating segment | Orchards	'	'	'
Segment Information	'	'	'
Revenues	4,141,000	2,144,000	'
Operating income (loss)	616,000	65,000	'
Segment assets	65,884,000	53,621,000	'
Operating segment | Branded product	'	'	'
Segment Information	'	'	'
Revenues	1,677,000	206,000	'
Operating income (loss)	-581,000	-522,000	'
Segment assets	12,039,000	1,805,000	'
Consolidation/Reconciliation	'	'	'
Segment Information	'	'	'
Revenues	-2,218,000	-355,000	'
Operating income (loss)	-153,000	-95,000	'
Segment assets	-20,954,000	-3,254,000	'
Consolidation/Reconciliation | Orchards	'	'	'
Segment Information	'	'	'
Revenues	2,218,000	355,000	'
Operating income (loss)	501,000	95,000	'
Segment assets	15,632,000	3,159,000	'
Consolidation/Reconciliation | Branded product	'	'	'
Segment Information	'	'	'
Operating income (loss)	-348,000	'	'
Segment assets	$5,322,000	$95,000	'

INVENTORIES_Details

INVENTORIES (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
In Thousands, unless otherwise specified
Inventories	'	'	'
Macadamia nut kernel	$2,558	$1,761	$789
Work-in-process	1,597	2,055	233
Finished goods	279	438	479
Farming supplies	287	267	299
Packaging supplies and ingredients	212	167	94
Allowance for shrink and obsolescence	-30	-30	'
Total	$4,903	$4,658	$1,894

LAND_ORCHARDS_AND_EQUIPMENT_De

LAND, ORCHARDS AND EQUIPMENT (Details) (USD $)	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
In Thousands, unless otherwise specified
Land, orchards and equipment, stated at cost	'	'	'
Land, orchards and equipment (gross)	$96,026	$95,392	$95,397
Less accumulated depreciation and amortization	51,172	50,548	48,978
Land, orchards and equipment, net	44,854	44,844	46,419
Land	'	'	'
Land, orchards and equipment, stated at cost	'	'	'
Land, orchards and equipment (gross)	8,884	8,884	8,884
Improvements	'	'	'
Land, orchards and equipment, stated at cost	'	'	'
Land, orchards and equipment (gross)	1,976	1,976	1,980
Machinery and equipment	'	'	'
Land, orchards and equipment, stated at cost	'	'	'
Land, orchards and equipment (gross)	5,437	5,425	5,390
Irrigation well and equipment	'	'	'
Land, orchards and equipment, stated at cost	'	'	'
Land, orchards and equipment (gross)	2,592	2,592	2,592
Producing orchards	'	'	'
Land, orchards and equipment, stated at cost	'	'	'
Land, orchards and equipment (gross)	76,325	76,325	76,325
Construction work-in-progress	'	'	'
Land, orchards and equipment, stated at cost	'	'	'
Land, orchards and equipment (gross)	$812	$190	$226

INCOME_TAXES_Details

INCOME TAXES (Details) (USD $)	3 Months Ended
In Millions, unless otherwise specified	Mar. 31, 2014
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%
Deferred tax assets	1.6
Valuation allowance as percentage of the deferred tax asset	100.00%
Royal Hawaiian Macadamia Nut, Inc. | Minimum	'
Income taxes	'
State tax rate on the corporation's taxable income (loss) (as a percent)	6.40%
Royal Hawaiian Macadamia Nut, Inc. | Maximum	'
Income taxes	'
State tax rate on the corporation's taxable income (loss) (as a percent)	8.84%

CREDIT_FACILITY_DEBT_Details

CREDIT FACILITY - DEBT (Details) (USD $)	0 Months Ended	3 Months Ended	12 Months Ended
	Aug. 04, 2010	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
Short-Term Debt	'	'	'	'
Carrying value of debt	'	$6,650,000	$6,825,000	$7,700,000
Fair value of debt	'	7,089,000	7,286,000	8,279,000
Revolving credit facility	'	'	'	'
Short-Term Debt	'	'	'	'
Maximum borrowing capacity	'	5,000,000	'	'
Interest rate (as a percent)	'	4.00%	'	'
Base rate of interest on debt	'	'prime rate	'	'
Basis spread on variable interest rate (as a percent)	'	1.00%	'	'
Outstanding amount of borrowings	'	0	5,900,000	0
Term loan facility	'	'	'	'
Short-Term Debt	'	'	'	'
Maximum borrowing capacity	'	10,500,000	'	'
Interest rate (as a percent)	'	6.50%	'	'
Outstanding amount of borrowings	'	$6,700,000	$6,800,000	$7,700,000
Maturity period	'10 years	'	'	'
Estimated market interest rate (as a percent)	'	4.25%	4.25%	'

PARTNERS_CAPITAL_Details

PARTNERS' CAPITAL (Details)	3 Months Ended
	Mar. 31, 2014
PARTNERS' CAPITAL	'
Percentage of partnership net loss used in calculation of net loss per Class A Unit	100.00%

CASH_DISTRIBUTIONS_Details

CASH DISTRIBUTIONS (Details) (USD $)	0 Months Ended	3 Months Ended
	Apr. 12, 2013	Mar. 31, 2014	Mar. 31, 2013
CASH DISTRIBUTIONS	'	'	'
Cash distributions per Class A Unit (in dollars per unit)	$0.02	'	$0.02
Cash distribution to Class A Unit	$150,000	$0	'
Distribution paid Class A Unit	'	$0	'

PENSION_PLAN_Details

PENSION PLAN (Details) (Pension Benefits, USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Pension Benefits	'	'
Components of net periodic benefit cost	'	'
Service Cost	$16	$22
Interest Cost	15	13
Expected Return on Assets	-17	-14
Amortization of Unrecognized Prior Service Costs	2	2
Amortization of Unrecognized Loss	'	5
Net Periodic Pension Cost	$16	$28

INTERMITTENT_SEVERANCE_PLAN_De

INTERMITTENT SEVERANCE PLAN (Details) (Intermittent Severance Benefit, USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Intermittent Severance Benefit	'	'
Union Bargaining Unit Intermittent Employees Severance Plan	'	'
Service Cost	$4	$5
Interest Cost	4	4
Net Periodic Pension Cost	$8	$9

RIGHTS_OFFERING_Details

RIGHTS OFFERING (Details) (USD $)	0 Months Ended
	Feb. 06, 2014	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013
RIGHTS OFFERING	'	'	'	'
Number of units offered in right offering	3,600,000	'	'	'
Price per unit offered	$2.55	'	'	'
Offering expenses	$300,000	'	'	'
Net proceeds from rights offering after deducting offering expenses	$8,900,000	'	'	'
Units outstanding	11,100,000	11,100,000	7,500,000	7,500,000