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Maui Land & Pineapple Company Reports Third Quarter 2023 Results

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Maui Land & Pineapple Company, Inc. (NYSE: MLP) reported a loss for the third quarter of 2023 due to decreased lease revenue after the Maui wildfires and one-time costs related to the leadership transition. The company aims to advance property utilization and fill vacancies to recover from the impacts.
Positive
  • The company is actively addressing the needs of the community post-Maui wildfires, focusing on housing supply, food and water security, and connections of people and place.
  • The majority of current tenants have reopened their businesses following the fires, indicating resilience in the face of adversity.
  • Efforts to advance the utilization of entitled properties and fill vacancies in commercial properties demonstrate proactive measures to recover from the impacts of the wildfires and reduce the negative effects on lease revenues.
Negative
  • Net loss for the nine months ended September 30, 2023, was $3,673,000, compared to net income of $9,783,000 in the same period of 2022, primarily due to the absence of land sales in the current year and increased operating costs.
  • Adjusted EBITDA for the nine months ending September 30, 2023, was ($149,000), indicating a negative operating performance after adjusting for non-cash expenses.
  • Cash and investments convertible to cash totaled $9,856,000 on September 30, 2023, a decrease of $1,636,000 compared to the previous year, with $778,000 attributed to one-time expenses due to employment separations and onboarding transitions.

KAPALUA, Hawaii, Nov. 13, 2023 (GLOBE NEWSWIRE) -- Maui Land & Pineapple Company, Inc. (NYSE: MLP) today reported financial results covering the nine months ended September 30, 2023.

“Following the August wildfires on Maui, we continue to focus on resiliency by supporting current and future needs of the community through an increased housing supply, food and water security, and renewed connections of people and place.

As the stewards of land and commercial property on Maui, our mission is to meet these critical needs by carefully ensuring our assets are actively used to their fullest potential.

Nearly all our current tenants have reopened their businesses following the fires; however, the impacts from their temporary closures and reduced sales caused a decrease in lease revenue for the company in the third quarter. This, combined with one-time costs related to our leadership transition in 2023 and a strategic pause on land sales, has resulted in a loss for the quarter.

As we look ahead, our team is advancing the utilization of our entitled properties, filling existing vacancies in our commercial properties, and leasing available agricultural lands for productive use.” – Race Randle, CEO of Maui Land & Pineapple Company.

Third Quarter 2023 Highlights

  • Revenues - Excluding land sales, the total operating revenues decreased by $334,000 for the nine months ended September 30, 2023, compared to the nine months ended September 30, 2022 primarily due to a reduction in percentage rent as a result of the Maui wildfires impact on the local economy. Including land sales, for the nine months ended September 30, 2023, the total operating revenues decreased by $11,915,000 to $6,872,000 compared to the same period last year as a direct result of two land sales closed in the prior year in the amount of $11,600,000.
  • Costs and expenses – Operating costs and expenses totaled $10,774,000 for the nine months ended September 30, 2023, an increase of $2,118,000 compared to the nine-month period ended September 30, 2022. The operating costs for the nine months ended September 30, 2023, included $1,508,000 of the operating costs and expenses were related to one-time costs of the leadership transition due to $1,258,000 for severance, accelerated vesting of incentive stock for departing executives and related legal and consulting fees for document preparation, and $250,000 for onboarding costs of new executive team. These costs are not anticipated to recur in the upcoming quarters with the exception of the monthly severance paid to the former CEO monthly through March 31, 2025. Other costs incurred in the nine months ended September 30, 2023 that were not incurred previously included $916,000 due to stock option valuation recognized for issued options recognized for the Board of Directors.
  • Net loss – Net loss was $3,673,000, or $0.19 per common share, in the nine months ended September 30, 2023, compared to net income of $9,783,000, or $0.50 per common share, in the nine months of 2022, as a direct result of land sales of $11,600,000 during the same period last year, versus no land sales in the current year, and increased operating costs.
  • Adjusted EBITDA (Non-GAAP) – For the nine months ending September 30, 2023, after adjusting for non-cash expenses of $3,524,000, Adjusted EBITDA was ($149,000).
  • Cash and Investments Convertible to Cash (Non-GAAP) – Cash and investments convertible to cash totaled $9,856,000 on September 30, 2023, a decrease of $1,636,000 compared to $11,492,000 at September 30, 2022. $778,000 of the decrease in cash is attributable to one-time expenses due to employment separations of the former CEO and Vice President and onboarding transition of the new CEO and Board Chairman realized in the nine months ended September 30, 2023.

Non-GAAP Financial Measures

Certain non-GAAP financial measures are presented in this press release, including Adjusted EBITDA, to provide information that may assist investors in understanding the Company's financial results and assessing its prospects for future performance. We believe we believe that Adjusted EBITDA is an important indicator of our operating performance because it excludes items that are unrelated to, and may not be indicative of, our core operating results. We believe cash and investments convertible to cash is an important indicator of liquidity because it includes items that are convertible into cash in the short term. These non-GAAP financial results are not intended to represent and should not be considered more meaningful measures than, or alternatives to, measures of operating performance or liquidity as determined in accordance with GAAP. To the extent we utilize such non-GAAP financial measures in the future, we expect to calculate them using a consistent method from period to period.

EBITDA is a non-GAAP financial measure defined as net income (loss) excluding interest, taxes, and depreciation and amortization. Adjusted EBITDA is further adjusted for non-cash stock-based compensation expense and pension and post-retirement expenses. Adjusted EBITDA is a key measure used by the Company to evaluate operating performance, generate future operating plans and make strategic decisions for the allocation of capital. The Company presents Adjusted EBITDA to provide information that may assist investors in understanding its financial results. However, Adjusted EBITDA is not intended to be a substitute for net income (loss). A reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure is provided further below.

Cash and investments convertible to cash is a non-GAAP financial measure defined as cash and cash equivalents plus restricted cash and investments. Cash and cash investments convertible to cash is a key measure used by the Company to evaluate internal liquidity.

Additional Information
More information about Maui Land & Pineapple Company’s second quarter 2023 operating results is available in the Form 10-Q filed with the Securities and Exchange Commission and posted at mauiland.com/.

About Maui Land & Pineapple Company
Maui Land & Pineapple Company, Inc. (NYSE: MLP) is dedicated to the thoughtful stewardship of over 22,000 acres of land along with approximately 260,000 square feet where Maui residents thrive in more resilient communities with additional housing opportunities, food and water security, and renewed connections of people and place. For over a century MLP has built a legacy of authentic innovation through conservation, agriculture, community building and land management. Our mission is to carefully maximize the use of our assets in a way that honors the past, meets the critical needs of the present, and enables a thriving future.

Company assets include land for future residential communities within the world-renowned Kapalua Resort, home to luxury hotels such as The Ritz-Carlton Maui and Montage Kapalua Bay, two championship golf courses, pristine beaches, a network of walking and hiking trails and the Pu‘u Kukui Watershed, the largest private nature preserve in Hawai‘i. 

Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to statements regarding the utilization of our entitled properties, filling the vacancies on our commercial properties, the Company's ability to lease its agricultural lands, and the recurrence of severance costs. These forward-looking statements are based upon the current beliefs and expectations of management and are inherently subject to significant business, economic and competitive uncertainties and contingencies, many of which are beyond the control of the Company. In addition, these forward-looking statements are subject to assumptions with respect to future business strategies and decisions that are subject to change. Actual results may differ materially from the anticipated results discussed in these forward-looking statements because of possible uncertainties. Factors that could cause actual results to differ materially from those expressed in the forward-looking statements are discussed in the Company's reports (such as Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K) filed with the SEC and available on the SEC's Internet site (http://www.sec.gov). We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

CONTACT 
Investors:Wade Kodama | Chief Financial Officer | Maui Land & Pineapple Company
 e: wkodama@kapalua.com
  
Media:Ashley Takitani Leahey | Vice President | Maui Land & Pineapple Company
 e: ashley@mauiland.com
  
 Dylan Beesley | Senior Vice President | Bennet Group Strategic
 Communications
 e: dylan@bennetgroup.com
  

 

 

MAUI LAND & PINEAPPLE COMPANY, INC. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS)
 
(UNAUDITED)
      
 Nine Months Ended
September 30,
 
 2023  2022 
 (in thousands except   
 per share amounts)   
OPERATING REVENUES     
Real estate$19  $11,600 
Leasing6,249  6,559 
Resort amenities and other604  628 
Total operating revenues6,872  18,787 
      
OPERATING COSTS AND EXPENSES     
Real estate526  913 
Leasing2,984  2,608 
Resort amenities and other1,113  1,170 
General and administrative2,996  2,177 
Share-based compensation2,472  958 
Depreciation683  830 
Total operating costs and expenses10,774  8,656 
      
OPERATING INCOME (LOSS)(3,902) 10,131 
      
Other income598  - 
Pension and other post-retirement expenses(364) (343)
Interest expense(5) (5)
NET INCOME (LOSS)$(3,673) $9,783 
Other comprehensive income - pension, net247  468 
      
TOTAL COMPREHENSIVE INCOME (LOSS)$(3,426) $10,251 
      
NET INCOME (LOSS) PER COMMON SHARE-BASIC AND DILUTED$(0.19) $0.50 
      

 

MAUI LAND & PINEAPPLE COMPANY, INC. AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED BALANCE SHEETS
 
 September 30, 2023 December 31, 2022
 (unaudited) (audited)
 (in thousands except share data)
ASSETS   
CURRENT ASSETS   
Cash and cash equivalents$6,771  $8,499 
Restricted cash -   10 
Accounts receivable, net 869   892 
Investments, current portion 2,752   2,432 
Prepaid expenses and other assets 739   368 
Assets held for sale 3,131   3,019 
Total current assets 14,262   15,220 
    
PROPERTY & EQUIPMENT, NET 16,049   15,878 
    
OTHER ASSETS   
Investments, net of current portion 333   551 
Deferred development costs 9,585   9,566 
Other noncurrent assets 1,217   1,191 
Total other assets 11,135   11,308 
TOTAL ASSETS$41,446  $42,406 
    
LIABILITIES & STOCKHOLDERS' EQUITY   
LIABILITIES   
CURRENT LIABILITIES   
Accounts payable$1,129  $589 
Payroll and employee benefits 783   869 
Accrued retirement benefits, current portion 142   142 
Deferred revenue, current portion 289   227 
Other current liabilities 467   480 
Total current liabilities 2,810   2,307 
    
LONG-TERM LIABILITIES   
Accrued retirement benefits, net of current portion 2,633   2,612 
Deferred revenue, net of current portion 1,400   1,500 
Deposits 2,148   2,185 
Other noncurrent liabilities 17   30 
Total long-term liabilities 6,198   6,327 
TOTAL LIABILITIES 9,008   8,634 
    
COMMITMENTS AND CONTINGENCIES   
    
STOCKHOLDERS' EQUITY   
Preferred stock--$0.0001 par value; 5,000,000 shares authorized;   
   no shares issued and outstanding -   - 
Common stock--$0.0001 par value; 43,000,000 shares authorized;   
   19,604,509 and 19,476,671 shares issued and outstanding   
   at September 30, 2023 and December 31, 2022, respectively 84,570   83,392 
Additional paid-in-capital 10,098   9,184 
Accumulated deficit (54,210)  (50,537)
Accumulated other comprehensive loss (8,020)  (8,267)
Total stockholders' equity 32,438   33,772 
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY$41,446  $42,406 
    


MAUI LAND & PINEAPPLE COMPANY, INC. AND SUBSIDIARIES
 
SUPPLEMENTAL FINANCIAL INFORMATION (NON-GAAP) UNAUDITED
     
 Nine Months Ended
September 30,
 2023 2022
 (in thousands)
     
NET INCOME (LOSS)$(3,673) $9,783 
     
Add: Non-cash expenses  
Interest expense 5   5 
Depreciation 683   830 
Share-based compensation   
Vesting of Incentive Stock for former CEO and Vice President upon separation 730    
Vesting of Stock Options granted to Board Chair and Directors 915    
Vesting of Stock Compensation granted to Board Chair and Directors 478   641 
Vesting of employee Incentive Stock 349   317 
Pension and other post-retirement expenses 364   343 
     
ADJUSTED EBITDA (LOSS)$(149) $11,919 
     
     
     
     
 September 30, 2023 December 31, 2022
 (unaudited)
 (audited)
 (in thousands)
CASH AND LIQUID INVESTMENTS CONVERTIBLE TO CASH 
     
Cash and cash equivalents$6,771  $8,499 
Restricted cash -   10 
Investments, current portion 2,752   2,432 
Investments, net of current portion 333   551 
     
TOTAL CASH AND INVESTMENTS CONVERTIBLE TO CASH$9,856  $11,492 
     

FAQ

What were the key factors contributing to the net loss in the third quarter of 2023?

The net loss was primarily due to the absence of land sales in the current year, increased operating costs, and decreased lease revenue following the Maui wildfires.

How did the Maui wildfires impact the company's revenues?

The Maui wildfires resulted in a reduction in percentage rent and a decrease in operating revenues by $334,000 for the nine months ended September 30, 2023, compared to the same period in 2022.

What measures is the company taking to recover from the impacts of the Maui wildfires?

The company is advancing the utilization of entitled properties, filling vacancies in commercial properties, and leasing available agricultural lands for productive use to recover from the impacts of the wildfires.

What were the one-time costs related to the leadership transition in 2023?

The one-time costs included severance, accelerated vesting of incentive stock for departing executives, related legal and consulting fees, and onboarding costs of the new executive team, totaling $1,508,000.

What is the company's strategy to address the needs of the community post-Maui wildfires?

The company is focusing on housing supply, food and water security, and renewed connections of people and place to support the community post-Maui wildfires.

Maui Land & Pineapple Co.

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