NEWS RELEASE
FOR RELEASE IMMEDIATELY CONTACT:
APRIL 27, 2004 PAUL J. MEYER
808/877-3871
808/877-1614 FAX
MAUI LAND & PINEAPPLE REPORTS 2004 1ST QUARTER RESULTS
Kahului, Hawaii, April 27...Maui Land & Pineapple Company,
Inc. (AMEX:MLP) today reported net income of $1.5 million ($.21
per share) for the first quarter of 2004 compared to a net loss
of $600,000 ($.09 per share) for the first quarter of 2003. The
sale of a 6.5-acre conservation-zoned parcel at Kapalua in March
2004 contributed $2.5 million to net income for the first quarter
of 2004.
Consolidated revenues increased by $5.9 million (17%) to
$40.3 million for the first quarter of 2004, compared to $34.4
million for the first quarter of 2003. The Pineapple, Resort and
Development segments all contributed to the increased revenues.
Revenues from the Commercial & Property segment declined in 2004
because of the sale of the Queen Ka`ahumanu Center in 2003 and
because of the reclassification of revenues to the Development
segment as a result of the reorganization of the Company's
business segments in 2004. Consolidated general and
administrative expenses increased by $1.1 million in the first
quarter of 2004 compared to the first quarter of 2003 primarily
due to employee severance costs. Interest expense decreased by
$223,000 in the first quarter of 2004 compared to the first
quarter of 2003 primarily due to lower average debt in 2004. Cash
from asset sales and other cash receipts late in 2003 were
applied to reduce the Company's debt.
The operating loss from the Pineapple segment's continuing
operations decreased by $580,000 (29%) to $1.4 million for the
first quarter of 2004 compared to an operating loss of $2.0
million for the first quarter of 2003. Revenues from this
segment increased by $3.5 million (19%) to $21.8 million for the
first quarter of 2004 compared to $18.3 million for the first
quarter of 2003.
Price increases contributed to the Pineapple segment's
improved results for the first quarter of 2004. In addition,
increased marketing efforts resulted in higher sales volume of
canned pineapple to the U.S. government and higher sales volume
of fresh pineapple. Improved post-harvest practices implemented
in 2004 resulted in an extended shelf life for the Company's
fresh pineapple, which allows for greater use of surface shipment
to the West Coast, rather than more costly air shipment.
Significantly higher than normal rainfall in the first quarter of
2004 delayed the Company's pineapple planting schedule. This
setback may increase the Pineapple segment's costs for 2004 as
scheduling and tonnage is adjusted.
The Resort segment produced an operating profit of $1.2
million for the first quarters of both 2004 and 2003. Revenues
from the Resort segment increased by $1.8 million (14%) to $14.4
million for the first quarter of 2004, compared to $12.6 million
for the first quarter of 2003.
Room occupancies at the Kapalua Resort increased by 14% in
the first quarter of 2004 compared to the first quarter of 2003.
Increased occupancies in the first quarter of 2004 were largely
responsible for the higher revenues and were reflected in
increased golf play, merchandise sales and increased revenues
from hotel ground leases. Higher operating expenses and higher
allocated general and administrative expenses offset the first
quarter 2004 revenue increases. Rainfall at the Resort during
the first quarter of 2004 was up to 300% higher than the average
for the prior five years and negatively affected the Resort
segment's operating results.
The Development segment reported an operating profit of $3.5
million for the first quarter of 2004 compared to an operating
profit of $636,000 for the first quarter of 2003. Revenues from
this segment were $4.1 million for the first quarter of 2004
compared to $2.7 million for the first quarter of 2003. The
improved results were primarily due to the land sale transaction
referred to above that added $3.9 million to operating profit.
In the first quarter of 2003, the Development segment's operating
results included the sale of one lot in the Pineapple Hill
Estates subdivision at Kapalua, and 21 lots in the Company's
Kapua Village employee subdivision.
* * * * *
MAUI LAND & PINEAPPLE COMPANY, INC.
Report of Consolidated Operations
(Unaudited)
(Dollars in Thousands Except Per Share Amounts)
Three Months Ended
March 31
2004 2003
Revenues
Pineapple $ 21,772 $ 18,329
Resort 14,387 12,630
Development 4,134 2,687
Commercial & Property 16 764
Other -- 1
Total Revenues 40,309 34,411
Operating Profit (Loss)
Pineapple (1,419) (1,999)
Resort 1,172 1,152
Development 3,458 636
Commercial & Property 8 (220)
Other (primarily unallocated
corporate expense) (644) (424)
Total Operating Profit (Loss) 2,575 (855)
Interest Expense (377) (600)
Income Tax (Expense) Benefit (740) 481
Income (Loss) - Continuing
Operations 1,458 (974)
Income - Discontinued Operations 60 348
Net Income (Loss) $ 1,518 $ (626)
Per Common Share - Basic and Diluted
Income (Loss) - Continuing
Operations .20 (.14)
Income - Discontinued Operations .01 .05
Net Income (Loss) $ .21 $ (.09)
Average Common Shares Outstanding
Basic 7,195,800 7,195,800
Diluted 7,395,928 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.
In 2004, the Company reorganized its reportable business segments
and prior year amounts were restated for comparability. The new
Development segment is primarily comprised of all of the
Company's real estate entitlement, development, construction and
sales activity. These activities were previously reported as
part of the Resort segment or the Commercial & Property segment.
The Resort segment now includes the operation of recreation and
retail facilities and utility companies and property management
activities at the Kapalua Resort.