NEWS RELEASE
FOR RELEASE IMMEDIATELY CONTACT:
July 29, 2005 FRED W. RICKERT
808/877-3871
808/877-1614 FAX
MAUI LAND & PINEAPPLE REPORTS 2005 2nd QUARTER RESULTS
Kahului, Hawaii, July 29.....Maui Land & Pineapple Company, Inc.
(AMEX: MLP) reported net income of $6.5 million ($.90 per share) for
the second quarter of 2005 compared to a net loss of $2.4 million
($.33 per share) for the second quarter of 2004. For the first six
months of 2005, the Company's net income was $7.7 million ($1.07 per
share) compared to a net loss of $855,000 ($.12 per share) for the
same period in 2004. Revenues for the second quarter of 2005 were
$51.2 million compared to $29.7 million for the second quarter of
2004. For the first six months of 2005, consolidated revenues were
$89.3 million compared to $70.3 million for the first half of 2004.
In the second quarter of 2005, the Company concluded two land
sale transactions of Upcountry Maui properties and recognized revenues
of $14.5 million and pre-tax gains of $10.5 million. The first sale
included approximately 25 acres of land and improvements to the Hui
No`eau Visual Arts Center. The second sale included approximately 129
acres of Upcountry Maui land.
"We continue to re-invest our gains to improve our resort,
development and agricultural operations," said David C. Cole,
Chairman, President and CEO, of ML&P. "Our pineapple segment hit
performance targets as we work to re-size the business to address
specialty fruit markets - although the unit continues to be impacted
by additional depreciation charges linked to the planned replacement
of current plant facilities next year. Results in the Resort segment
reflect the closing of The Plantation Golf Course for replacement of
the greens and fairway bunkers, while the Community Development
segment has benefited from a robust market for residential properties
on Maui."
The Pineapple segment produced an operating loss from continuing
operations of $2.6 million for the second quarter of 2005 compared to
an operating loss of $2.8 million for the second quarter of 2004.
Revenues for the second quarter of 2005 of $16.3 million were 4% lower
than the second quarter of 2004. For the first six months of 2005,
the Pineapple segment reported an operating loss of $4.7 million
compared to an operating loss of $4.6 million for the first six months
of 2004. Revenues of $32.0 million for the first six months of 2005
were 17% lower than the first six months of 2004. The Pineapple
operating loss for the second quarter and first half of 2005 includes
$1.2 million and $1.4 million, respectively, of additional
depreciation charges due to the planned replacement of the current
cannery, can plant and fresh fruit packing facility.
Lower revenues for the second quarter and first half of 2005
largely reflect a reduction in canned sales volume following the
Company's decision to discontinue serving certain retail segments.
Average sales prices for the Company's canned and fresh pineapple
increased in the second quarter and first half of 2005 compared to the
same periods in 2004.
The Resort segment reported an operating loss of $2.3 million for
the second quarter of 2005 compared to an operating loss of $1.4
million for the second quarter of 2004. For the first six months of
2005, the Resort produced an operating loss of $1.9 million compared
to an operating loss of $1.3 million for the first six months of 2004.
Resort revenues of $8.7 million for the second quarter of 2005 were
12% lower than the second quarter of 2004; revenues for the first half
of 2005 of $22.1 million were 2% lower than the same period in 2004.
The closure of the Plantation Golf Course as of April 1, 2005 for
extensive greens and fairway bunker renovations was the single largest
contributor to the lower revenues and increased operating losses from
the Resort segment in 2005. The renovations remain on schedule and
the course is scheduled to reopen on July 31, 2005.
The Community Development segment reported an operating profit of
$15.3 million for the second quarter of 2005 compared to $1.0 million
for the second quarter of 2004. For the first six months of 2005,
Community Development had operating profit of $19.2 million compared
to $5.3 million for the first six months of 2004. Revenues from this
operating segment were $26.2 million for the second quarter of 2005
compared to $3.0 million for the second quarter of 2004. For the
first six months of 2005, revenues from this segment were $35.1
million compared to $9.1 million for the first six months of 2004.
In addition to the land sales mentioned above, revenues from the
Community Development segment for the second quarter of 2005 includes
$9.9 million from the sale of lots at the Honolua Ridge residential
subdivision. For the first six months of 2005, Community Development
revenues include $17.2 million from the sale of lots at Honolua Ridge.
Revenues and profit from Honolua Ridge are being recognized using the
percentage-of-completion method as the subdivision improvements are
completed. At the end of the second quarter of 2005, these
improvements were approximately 92% complete. Operating profit for
the second quarter and first half of 2004 includes $506,000 and $4.5
million, respectively, from the sale of real estate.
* * * * *
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
2005 2004 2005 2004
Revenues
Pineapple $16,256 $16,871 $32,043 $38,596
Resort 8,674 9,888 22,118 22,515
Community Development 26,224 2,965 35,136 9,111
Other 16 18 34 34
Total Revenues 51,170 29,742 89,331 70,256
Operating Profit (Loss)
Pineapple (2,603) (2,761) (4,691) (4,553)
Resort (2,252) (1,359) (1,934) (1,259)
Community Development 15,321 1,008 19,242 5,347
Other (57) (145) (125) (238)
Net Operating Profit (Loss) 10,409 (3,257) 12,492 (703)
Interest Expense (95) (275) (237) (652)
Interest Income 10 7 30 28
Income Tax (Expense) Benefit (3,840) 1,178 (4,546) 438
Income (Loss) - Continuing
Operations 6,484 (2,347) 7,739 (889)
Income (Loss) - Discontinued
Operations -- (26) -- 34
Net Income (Loss) $ 6,484 $(2,373) $ 7,739 $ (855)
Earnings Per Common Share
Basic .90 (.33) 1.07 (.12)
Diluted .89 (.33) 1.06 (.12)
Average Common Shares Outstanding
Basic 7,228,569 7,195,822 7,227,576 7,195,811
Diluted 7,321,733 7,195,822 7,322,835 7,195,811
NOTES:
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 2005, responsibility for the real estate leasing activity that was
accounted for in the Resort segment was transferred to the Community
Development segment (previously called "Development" segment) and
prior year amounts were restated for comparability. The Community
Development segment as reorganized is comprised of all of the
Company's real estate entitlement, development, construction, sales
and leasing activities. The Community Development segment also
includes the Company's 51% equity interest in Kapalua Bay Holdings
LLC, the owner and operator of the Kapalua Bay Hotel. Remaining in
the Resort segment are the ongoing operations of Kapalua Resort's
recreation and retail operations, the Kapalua Villas, and the water
and sewage transmission utility companies operations.
Revenues and operating profit reported for the operating segments for
the three and six months of 2004 have also been restated to conform to
a change in Statement of Operations reporting format and the
allocation practice for corporate general and administrative expenses
that the Company adopted in the fourth quarter of 2004.