EX-99.(1) 2 a06-5451_1ex99d1.htm EXHIBIT 99

 

Exhibit 99.(1)

 

 

 

 

NEWS RELEASE

 

 

FOR RELEASE IMMEDIATELY

 

CONTACT:

February 17, 2006

 

FRED W. RICKERT

 

 

808/877-3871

 

 

808/877-1614 FAX

 

 

MAUI LAND & PINEAPPLE REPORTS 2005 4th QUARTER RESULTS

Kahului, Hawaii, February 17….Maui Land & Pineapple Company, Inc. (AMEX: MLP) reported net income of $4.8 million ($.67 per share) for the fourth quarter of 2005 compared to net income of $2.6 million ($.36 per share) for the fourth quarter of 2004. Revenues for the fourth quarter of 2005 increased by 10% to $53.2 million from $48.4 million for the fourth quarter of 2004.

 

For the year 2005, the Company reported net income of $14.6 million ($2.02 per share) compared to a net loss of $383,000 ($.05 per share) for 2004. Revenues for 2005 increased by 22% to $186.7 million from $153.2 million for 2004.

 

“In 2005, we invested in modernizing the Company’s continuing operations in all three business segments: Kapalua Resort, Agriculture, and Community Development,” said David C. Cole, Chairman, President and CEO of ML&P. “The Company recorded over $7.4 million in charges related to the restructuring of operations and commenced an asset redeployment program with over $28 million in proceeds from non-core real estate sales. Our investment programs will continue through 2006 with the re-development of the Kapalua Bay Hotel site, the completion of a fresh fruit grading & packing facility, and the expansion of our real estate operations.”

 

The Company’s Community Development segment reported an operating profit of $13.7 million for the fourth quarter of 2005 compared to an operating profit of $8.1 million for the fourth quarter of 2004. Revenues for the fourth quarter of 2005 were $20.0 million or 26% higher than the fourth quarter of 2004. For the year 2005, Community Development produced an operating profit of $40.5 million compared to an operating profit of $15.7 million for 2004. Revenues for the year 2005 were $68.7 million or 124% higher than 2004.

 

 


 

 

Results reported by the Community Development segment for 2005 include gains (pre-tax) of $10.9 million and $26.9 million, for the fourth quarter and the year 2005, respectively, from the sale of Upcountry Maui real estate that the Company had classified as non-core to its strategic plan. In addition to the sale of non-core assets, the results for the Community Development segment reflect revenues and operating profit from the sale of lots at the Company’s Honolua Ridge Phase I and Phase II residential subdivisions.

 

The Agriculture segment (previously called “Pineapple” segment) produced an operating loss of $4.2 million in the fourth quarter of 2005 compared to an operating loss of $2.6 million for the fourth quarter of 2004. Revenues for the fourth quarter were $22.2 million or about 1% less than the fourth quarter of 2004. For the year 2005, the Agriculture segment reported an operating loss of $11.4 million compared to an operating loss of $10.8 million for 2004. Revenues for 2005 from the Agriculture segment were lower by 7% compared to 2004.

 

The increased Agriculture segment loss for the fourth quarter and the year 2005 largely reflects increased depreciation charges and equipment write offs of $5.0 million related to the 2006 replacement of the fresh fruit packing facility and planned replacement of the Kahului cannery. For both the fourth quarter and the year 2005, lower revenues reflect a decrease in case sales volume of canned pineapple partially offset by higher average prices, and increased sales volume and prices for the Company’s fresh pineapple.

 

The Resort segment reported an operating loss of $1.5 million for the fourth quarters of both 2005 and 2004. Revenues for the fourth quarter of 2005 of $10.8 million were 9% higher than 2004. For the year 2005, Resort operations recorded an operating loss of $5.5 million compared to an operating loss of $4.6 million for 2004. Revenues of $43.2 million for 2005 were 2% higher than 2004. Higher average green fees and increased room rates at the Kapalua Villas, along with increased occupancies at the Resort, partially offset the negative financial effects to the Resort of the four-month closure of the Plantation Course from April through July of 2005. Higher marketing costs and operating expenses also contributed to the increased operating loss for 2005.

 

 

*        *        *        *        *

 

2


 

 

MAUI LAND & PINEAPPLE COMPANY, INC.

Report of Consolidated Operations

(Unaudited)

(Dollars in Thousands Except Per Share Amounts)

 

 

 

 

Three Months Ended

 

Twelve Months Ended

 

 

 

December 31

 

December 31

 

 

 

2005

 

2004

 

2005

 

2004

 

Revenues

 

 

 

 

 

 

 

 

 

Community Development

 

$

20,043

 

$

15,951

 

$

68,662

 

$

30,625

 

Agriculture

 

22,163

 

22,399

 

74,501

 

80,003

 

Resort

 

10,824

 

9,903

 

43,198

 

42,425

 

Other

 

217

 

154

 

319

 

196

 

Total Revenues

 

53,247

 

48,407

 

186,680

 

153,249

 

 

 

 

 

 

 

 

 

 

 

Operating Profit (Loss)

 

 

 

 

 

 

 

 

 

Community Development

 

13,689

 

8,136

 

40,466

 

15,737

 

Agriculture

 

(4,202

)

(2,587

)

(11,383

)

(10,766

)

Resort

 

(1,498

)

(1,506

)

(5,538

)

(4,565

)

Other

 

(34

)

(27

)

(175

)

(255

)

Net Operating Profit (Loss)

 

7,955

 

4,016

 

23,370

 

151

 

Interest (Expense) Income, net

 

42

 

(201

)

(78

)

(1,136

)

Income Tax (Expense) Benefit

 

(3,171

)

(1,150

)

(8,723

)

528

 

 

 

 

 

 

 

 

 

 

 

Income (Loss) — Continuing Operations

 

4,826

 

2,665

 

14,569

 

(457

)

 

 

 

 

 

 

 

 

 

 

Income (Loss) — Discontinued Operations

 

—

 

(40

)

—

 

74

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss)

 

$

4,826

 

$

2,625

 

$

14,569

 

$

(383

)

 

 

 

 

 

 

 

 

 

 

Earnings Per Common Share

 

 

 

 

 

 

 

 

 

Basic

 

$

.67

 

$

.36

 

$

2.02

 

$

(.05

)

Diluted

 

$

.66

 

$

.36

 

$

1.99

 

$

(.05

)

 

 

 

 

 

 

 

 

 

 

Average Common Shares Outstanding

 

 

 

 

 

 

 

 

 

Basic

 

7,232,297

 

7,201,770

 

7,229,457

 

7,197,808

 

Diluted

 

7,291,290

 

7,238,408

 

7,309,043

 

7,197,808

 

 

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.

 

As of the fourth quarter of 2005, the Pineapple segment was renamed “Agriculture” segment to reflect the Company’s initiatives to diversify the products produced by this segment.