NEWS RELEASE
FOR RELEASE IMMEDIATELY CONTACT:
November 4, 2005 FRED W. RICKERT
808/877-3871
808/877-1614 FAX
MAUI LAND & PINEAPPLE REPORTS 2005 3rd QUARTER RESULTS
Kahului, Hawaii, November 4..Maui Land & Pineapple Company, Inc.
(AMEX: MLP) reported net income of $2.0 million ($.28 per share) for
the third quarter of 2005 compared to a net loss of $2.2 million ($.30
per share) for the third quarter of 2004. Revenues for the third
quarter of 2005 increased by 28% to $44.1 million from $34.6 million
for the third quarter of 2004.
The improved third quarter results were largely attributable to
three Upcountry Maui land sales reported by the Company's Community
Development segment, which resulted in recognized revenues of $6.0
million and pre-tax gains of $5.6 million. The land sold had been
earmarked for disposition as "non-core" to the Company's strategic
plan. Overall, the Community Development segment reported an
operating profit of $7.5 million for the third quarter of 2005
compared to $2.3 million for the third quarter of 2004. Revenues from
this operating segment were $13.5 million for the third quarter of
2005 compared to $5.6 million for the third quarter of 2004. In
addition to the non-core property sales, increased revenues and
operating profits reported by the Community Development segment
reflected the sale of lots at the Company's Honolua Ridge Phase I and
Phase II agricultural subdivisions.
"Our asset redeployment program has enabled us to invest in all
business segments," said David C. Cole, Chairman, President and CEO of
ML&P. "Fruit quality and channel mix in the Pineapple unit are
evolving as planned, while the pace of investment programs at the
Kapalua Resort have been impacted by inclement weather and rising
construction costs. The Community Development segment continues to
execute as planned."
The Pineapple segment produced an operating loss from continuing
operations of $2.5 million for the third quarter of 2005 compared to
an operating loss of $3.6 million for the third quarter of 2004.
Revenues for the third quarter of 2005 of $20.3 million were 7% higher
than the third quarter of 2004. Increased Pineapple segment revenues
were due to fresh pineapple sales more than offsetting lower revenues
from canned pineapple. Operating losses reported by the Pineapple
segment for the third quarter of 2005 include increased depreciation
charges of $900,000, related to the planned replacement of the current
cannery, can plant and fresh fruit packing facility.
The Resort segment reported an operating loss of $2.1 million for
the third quarter of 2005 compared to an operating loss of $1.8
million for the third quarter of 2004. Resort revenues of $10.3
million for the third quarter of 2005 were 2% higher than the third
quarter of 2004. The closure of the Plantation Golf Course from April
1, 2005 through July 30, 2005 for extended green and fairway bunker
renovations had a significant negative impact on the Resort operations
for the third quarter of 2005. However, increased paid rounds at the
Bay and Village golf courses and higher average green fees, along with
increased occupancies at the Resort, partially offset the negative
impact of the Plantation Golf Course closure.
For the first nine months of 2005, the Company's net income was
$9.7 million ($1.35 per share) compared to a net loss of $3.0 million
($.42 per share) for the first nine months of 2004. Revenues for the
first nine months of 2005 increased by 27% to $133.4 million from
$104.8 million for the same period in 2004.
The Community Development segment reported an operating profit of
$26.8 million for the first nine months of 2005 compared to $7.6
million for the first nine months of 2004. Revenues from this
operating segment were $48.6 million for the first nine months of 2005
compared to $14.7 million for the first nine months of 2004. The
first nine months of 2005 includes the sales of approximately 260
acres of Upcountry Maui properties, which resulted in revenues of
$20.5 million and operating profit of $16.2 million. Revenues for the
first nine months of 2005 include $23.0 million from the sale of lots
at the Honolua Ridge Phase I and II agricultural subdivisions.
Revenues and profit from these projects are being recognized using the
percentage-of-completion method as the subdivision improvements are
completed.
The Pineapple segment produced an operating loss from continuing
operations of $7.2 million for the first nine months of 2005 compared
to an operating loss of $8.2 million for the first nine months of
2004. Revenues for the first nine months of 2005 of $52.3 million
were 9% lower than the first nine months of 2004. Lower Pineapple
segment revenues in 2005 was due to a reduced volume of canned
pineapple sales, which was partially offset by increased fresh
pineapple sales volume. Operating losses reported by the Pineapple
segment in 2005 include additional depreciation charges of $2.2
million.
The Resort segment reported an operating loss of $4.0 million for
the first nine months of 2005 compared to an operating loss of $3.1
million for the first nine months of 2004. Resort revenues of $32.4
million for the first nine months of 2005 were less than 1% lower than
the same period in 2004. The four-month closure of the Plantation
Golf Course was the single largest contributor to the increased
operating losses in 2005.
* * * * *
MAUI LAND & PINEAPPLE COMPANY, INC.
Report of Consolidated Operations
(Unaudited)
(Dollars in Thousands Except Per Share Amounts)
Three Months Ended Nine Months Ended
September 30 September 30
2005 2004 2005 2004
Revenues
Pineapple $20,295 $19,008 $52,338 $57,604
Resort 10,256 10,007 32,374 32,522
Community Development 13,483 5,563 48,619 14,674
Other 68 8 102 42
Total Revenues 44,102 34,586 133,433 104,842
Operating Profit (Loss)
Pineapple (2,490) (3,626) (7,181) (8,179)
Resort (2,106) (1,800) (4,040) (3,059)
Community Development 7,535 2,254 26,777 7,601
Other (16) 10 (141) (228)
Net Operating Profit (Loss) 2,923 (3,162) 15,415 (3,865)
Interest Expense (71) (314) (308) (966)
Interest Income 158 3 188 31
Income Tax (Expense)
Benefit (1,006) 1,240 (5,552) 1,678
Income (Loss) -
Continuing Operations 2,004 (2,233) 9,743 (3,122)
Income - Discontinued
Operations -- 80 -- 114
Net Income (Loss) $ 2,004 $(2,153) $ 9,743 $(3,008)
Earnings Per Common Share
Basic $ .28 $ (.30) $ 1.35 $ (.42)
Diluted $ .27 $ (.30) $ 1.33 $ (.42)
Average Common Shares Outstanding
Basic 7,230,319 7,197,819 7,228,501 7,196,485
Diluted 7,303,749 7,197,819 7,315,657 7,196,485
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 nine 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.