ML Macadamia Orchards, L.P. (NYSE:NUT) announced yesterday that a quarterly cash distribution of nine cents ($0.09) per Class A Unit was declared at the December meeting of the Board of Directors of its general partner, ML Resources, Inc. The distribution will be paid on Thursday, February 15, 2001, to unitholders of record as of Friday, December 29, 2000.
The Partnership’s quarterly distribution rate was raised to twelve and one-half cents ($0.125) per Class A Unit at the beginning of this year. The reduced distribution rate reflects some of the effects of the November 2 storm, when over 30 inches of rain fell in just 24 hours. This sudden storm and flooding caused an estimated loss of more than two million pounds of macadamia nuts and an estimated $200,000 damage to roads, orchards and irrigation lines.
In addition, the new owner of Mauna Loa Macadamia Nut Corporation, the sole purchaser of the Partnership’s nuts, has taken the position that it should not have to pay for all of the nuts delivered to Mauna Loa pursuant to three long-standing purchase agreements. The Partnership is confident that it is legally entitled to be paid for all nuts under these agreements. However, cash flow will be reduced until this matter is settled.
This quarterly cash distribution will be the 59th consecutive distribution paid since the Partnership’s inception in 1986. In June 2001, the Partnership will celebrate its 15th anniversary of being listed on the New York Stock Exchange.
This press release contains forward-looking statements regarding future events and future performance of the Partnership that involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These include statements, among others, regarding nut production, flood damage and collection of receivables, which are based on certain assumptions and forecasts. The Partnership files documents with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K reports, which contain a description of these and other risks and uncertainties that could cause actual results to differ from current expectations and the forward-looking statements contained in this press release.
ML Macadamia Orchards, L.P. is the world’s largest grower of macadamia nuts, owning or leasing 4,169 acres of orchards on the island of Hawaii, where macadamia yields are the highest in the world.