NEWS RELEASE
FOR RELEASE IMMEDIATELY CONTACT:
AUGUST 5, 2003 PAUL J. MEYER
808/877-3871
808/877-1614 FAX
MAUI LAND & PINEAPPLE REPORTS 2003 2ND QUARTER RESULTS
Kahului, Hawaii, August 5...Maui Land & Pineapple Company,
Inc. (AMEX:MLP) today reported a net loss of $4.0 million ($.56
per share) for the second quarter of 2003 compared to a net loss
of $2.1 million ($.29 per share) for the second quarter of 2002.
Consolidated revenues for the second quarter of 2003 were $36.5
million compared to $33.6 million for the second quarter of 2002.
For the first half of 2003, the Company had a net loss of $4.7
million ($.65 per share) compared to a net loss of $1.3 million
($.18 per share) for the first half of 2002. Consolidated
revenues for the first half of 2003 were $73.8 million compared
to $69.8 million for the same period in 2002.
Increased losses for the second quarter and first half of
2003 were due to lower net results from the Company's major
business segments, Pineapple and Resort, and increased general
and administrative expenses, in particular related to management
changes, employee layoffs in the Pineapple segment, legal fees
and other consultant costs, depreciation expense and pension
expense. The Commercial & Property segment produced improved
results for the second quarter and first half of 2003.
Pineapple operations produced an operating loss of $2.9
million for the second quarter of 2003 compared to an operating
loss of $1.3 million for the second quarter of 2002. For the
first half of 2003 the operating loss from Pineapple was $4.4
million compared to $2.5 million for the first half of 2002.
Revenues for the second quarter and first half of 2003 were $23.9
million and $44.8 million, respectively, an increase of
approximately 8% for both the quarter and six month period versus
the comparable periods in 2002. Increased revenues for the
second quarter and the first six months of 2003 were due
primarily to higher volume and prices of pineapple sales from
Costa Rica by the Company's 100% owned subsidiary, Royal Coast
Tropical Fruit Company, Inc. and increased sales volume of
Hawaiian Gold (trademark), fresh whole pineapple grown on Maui.
Increased revenues for the first six months of 2003 also reflected
higher average sales prices for the Company's canned pineapple
products. Sales volume of the Company's canned pineapple products
was lower in the second quarter and first half of 2003
primarily due to increased general and administrative costs as
described above. General and administrative costs charged to
Pineapple segment operations increased by $2.1 million for the
second quarter and $3.4 million for the first half of 2003
compared to the same periods in 2002.
Kapalua Resort reported an operating loss for the second
quarter of 2003 of $1.0 million compared to an operating loss of
$400,000 for the second quarter of 2002. For the first half of
2003 Kapalua produced an operating profit of $266,000 compared to
an operating profit of $2.6 million for the first half of 2002.
The increased operating loss for the second quarter of 2003 and
the reduction in operating profit for the first half of 2003 were
due to fewer sales of new real estate product in 2003, primarily
reflecting a lower inventory of product available for sale,
higher operating costs and higher general and administrative
expenses. Revenues for the second quarter of 2003 were 2% higher
than the second quarter of 2002. For the first half of 2003,
revenues of $23.8 million were 7% lower than the same period in
2002. Increased revenues for the second quarter of 2003 compared
to the second quarter of 2002 were attributable to increased
hotel and villa room occupancies at Kapalua, an increased number
of paid rounds of golf, higher green fees and improved
merchandise sales. For the first half of 2003, the overall room
occupancy at the Resort and paid rounds of golf were lower than
the first half of 2002.
Commercial & Property operations reported an operating loss
of $139,000 for the second quarter of 2003 compared to an
operating loss of $458,000 for the second quarter of 2002. For
the first half of 2003 the Commercial & Property operations
produced an operating profit of $210,000 compared to an operating
loss of $139,000 for the same period in 2002. Revenues from
these operations were $2,105,000 for the second quarter of 2003
compared to $1,088,000 for the second quarter of 2002; and
$5,184,000 for the first half of 2003 compared to $2,811,000 for
the first half of 2002. Higher revenues and improved net
operating results for the second quarter and first half of 2003
were primarily due to lot sales at the Kapua Village employee
subdivision. Revenues and operating profit for the first half of
2002 included a $624,000 gain on the sale of a land parcel.
On August 1, 2003, the sale of Napili Plaza to A&B
Properties, Inc., the real estate subsidiary of Alexander &
Baldwin, Inc. (NASDAQ:ALEX), closed escrow. The Company's gain
from this sale of approximately $2 million will be included in
third quarter 2003 results.
* * * * *
MAUI LAND & PINEAPPLE COMPANY, INC.
Report of Consolidated Operations
(Unaudited)
(Dollars in Thousands Except Per Share Amounts)
Three Months Ended Six Months Ended
June 30 June 30
2003 2002 2003 2002
Revenues
Pineapple $23,876 $22,163 $44,774 $41,505
Resort 10,529 10,309 23,824 25,529
Commercial & Property 2,105 1,088 5,184 2,811
Other (20) 1 (19) 1
Total Revenues 36,490 33,561 73,763 69,846
Operating Profit (Loss)
Pineapple (2,879) (1,322) (4,416) (2,463)
Resort (1,028) (400) 266 2,556
Commercial & Property (139) (458) 210 (139)
Other (763) (368) (1,170) (728)
Total Operating Loss (4,809) (2,548) (5,110) (774)
Interest Expense (655) (572) (1,289) (1,153)
Income Tax Benefit 1,432 1,054 1,741 637
Net Loss (4,032) (2,066) (4,658) (1,290)
Net Loss Per Common Share $ (.56) $ (.29) $ (.65) $ (.18)
Average Common
Shares Outstanding 7,195,800 7,195,800 7,195,800 7,195,800
NOTE:
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.