News Column

Maui Land & Pineapple Co. halves its first-quarter loss

May 2, 2014

By Andrew Gomes, The Honolulu Star-Advertiser



May 02--Maui Land & Pineapple Co. cut in half a net loss for the first three months of this year compared with the same period a year earlier despite less revenue from operations amid a difficult turnaround effort.

The Kapalua-based company announced Wednesday that it lost $900,000 in the first quarter, down from a $1.8 million loss a year earlier.

Revenue slipped to $2.5 million in the quarter from $2.6 million a year ago.

Most of the company's revenue came from leasing land, which generated

$1.3 million in the recent quarter. The company also derived $722,000 from utility operations that include providing water and sewer service at Kapa?lua Resort and farmland irrigation water. Another $352,000 came from operating a membership club that provides resort guests with access to amenities.

Maui Land also announced Wednesday that it extended maturity dates on about $49 million of debt with two banks. The debt previously was due Thursday but will now mature Aug. 1, 2016.

Maui Land, which was once a major resort operator and pineapple producer, has struggled financially over the past several years after a disasterous investment in a resort development proj?ect during the recession and its 2009 exit from pineapple farming.

The company, which owns about 23,000 acres on Maui, has managed to generate some profit in recent past quarters by selling real estate. There were no real estate sales in the first quarter of this year or last year.

Shares of Maui Land stock rose 19 cents after the earnings announcement to $8.02 Thursday from $7.83 on Wednesday. Over the past 52 weeks, shares have traded between a low of $3.98 on July 24 and a high of $9 on April 7.

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(c)2014 The Honolulu Star-Advertiser

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Source: Honolulu Star-Advertiser (HI)


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