USA: Maui Land & Pineapple Company, Inc. reports lower net income for 2000
For the fourth quarter of 2000, the Company reported a net loss of $2.3 million ($.33 per share) compared to net income of $1.4 million ($.19 per share) for the fourth quarter of 1999. Revenues for the fourth quarter of 2000 declined by 11% compared to the fourth quarter of 1999.
Pineapple generated an operating loss of $2.9 million for the year 2000 compared to an operating profit of $6.1 million for 1999. For the fourth quarter of 2000 these operations produced an operating loss of $2.7 million compared to an operating profit of $795,000 for the fourth quarter of 1999. Pineapple revenues were lower by 9% and 2%, respectively, for the year and fourth quarter 2000 compared to 1999. Lower case sales volume and lower prices for canned pineapple products as a result of highly competitive market conditions were primarily responsible for the decline in results from the Pineapple segment. The operating loss for the fourth quarter of 2000 was also due to higher per case cost of sales and increased marketing expenses.
The Company's Kapalua Resort segment produced an operating profit of $7.8 million for the year 2000 compared to $5.7 million for 1999. Operating profit for the fourth quarter of 2000 was $359,000 compared to $2.1 million for the fourth quarter of 1999. Resort revenues for the year 2000 exceeded 1999 by 5%; for the fourth quarter of 2000 revenues were 29% lower than a year earlier. Higher revenue and operating profit for the year 2000 are due to improved results from resort operations, in particular, merchandise sales, golf course income, revenue from the hotel ground leases and the villa operations. Lower results in the fourth quarter of 2000 compared to 1999 is due to the profit recognized on the sale of lots in Plantation Estates II in the fourth quarter of 1999.
The Commercial & Property segment reported an operating loss of $148,000 for the fourth quarter of 2000 compared to an operating profit of $3,000 a year ago. The operating loss for the year 2000 of $441,000 approximated the 1999 loss.
Interest expense for the year and fourth quarter 2000 substantially exceeded the prior year and fourth quarter because of higher average borrowings and interest rates. Higher borrowings in 2000 were primarily the result of negative cash flows from Pineapple operations and construction activity at the Kapalua Resort. The net income tax credit of $88,000 for the year 2000 is due to refundable state tax credits exceeding the federal and state provision for income taxes. Results for 1999 included the write-off of $1.1 million ($690,000 net of taxes) of deferred costs for consultants who were engaged to develop potential strategic plans for the Company.
MAUI LAND & PINEAPPLE COMPANY, INC. Report of Consolidated Operations (Dollars in Thousands Except Per Share Amounts) (Unaudited) Three Months Ended Year Ended December 31 December 31 2000 1999 2000 1999 Revenues Pineapple $ 26,619 $ 27,030 $ 85,892 $ 94,535 Resort 10,621 15,031 50,262 47,950 Commercial & Property 1,344 1,226 5,043 4,381 Other 8 34 286 132 Total Revenues 38,592 43,321 141,483 146,998 Operating Profit (Loss) Pineapple (2,663) 795 (2,891) 6,071 Resort 359 2,144 7,752 5,702 Commercial & Property (148) 3 (441) (454) Other (390) (283) (995) (2,098) Total Operating Profit (Loss) (2,842) 2,659 3,425 9,221 Interest Expense (1,047) (485) (3,061) (1,834) Income Tax (Expense) Credit 1,540 (779) 88 (2,717) Net Income (Loss) (2,349) 1,395 452 4,670 Net Income (Loss) Per Common Share $ (.33) $ .19 $ .06 $ .65 Average Common Shares Outstanding 7,195,800 7,189,849 7,195,800 7,188,840
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