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Maui Land and Pineapple Company Inc Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: May 5, 2011 06:20AM

Maui Land and Pineapple Company Inc (MLP) filed Quarterly Report for the period ended 2011-03-31. Maui Land & Pineapple Co. has a market cap of $94.8 million; its shares were traded at around $5.05 with a P/E ratio of 10.9 and P/S ratio of 2.3.



Highlight of Business Operations:

For the first quarter of 2011, we reported net income of $12.4 million compared to a net loss of $2.7 million for the same period in 2010. Net income for 2011 includes a $15.1 million gain from the September 2010 sale of the Bay Course that was recognized as of March 31, 2011 upon termination of the golf course leaseback agreement (Note 5 to condensed consolidated financial statements). As of April 1, 2011, management of the two championship golf courses at the Kapalua Resort was awarded to Troon Golf of Scottsdale, Arizona (Troon). Cash used in operating activities for the first three months of 2011 was $1.9 million. In February 2011, we completed the restructuring of our debt, increasing our available borrowing capacity by $9.5 million and extending the maturity of our two credit agreements to May 2013. In April 2011, we were informed by the New York Stock Exchange (NYSE) that we would be removed from the NYSE watch list and be considered to be in compliance with the continued listing standards of the NYSE.

Consolidated revenues were $6.4 million for the first quarter of 2011 compared to $7.6 million for the first quarter of 2010. Lower revenues for 2011 were primarily due to lower sales of real estate inventories. We reported net income of $12.4 million ($0.67 per share) for the first quarter of 2011 compared to a net loss of $2.7 million ($0.33 per share) for the first quarter of 2010. Net income for the first quarter of 2011 was primarily due to recognition of $15.1 million gain from the September 2010 sale of the Bay Course (Note 5 to condensed consolidated financial statements).

Consolidated general and administrative expenses were $1.9 million for the first quarter of 2011 compared to $1.3 million for the first quarter of 2010. The increase in general and administrative expense is due primarily to the curtailment and settlement gains recorded in the first quarter of 2010 for termination of our postretirement life insurance plan for all retirees in January 2010 and elimination of retiree medical insurance benefits for non-bargaining retirees in February 2010. These actions resulted in curtailment and settlement gains totaling $3.3 million of which $1.0 million was recorded as a credit to general and administrative expense in the first quarter of 2010 and $2.3 million was credited to discontinued operations. Salaries and other employee benefit costs decreased by over 30% in the first quarter of 2011 compared to the first quarter of 2010 because of lower staffing levels. We expect that salaries and employee benefits will continue to decrease in 2011 because of the elimination of administrative and other support positions as a result of the cessation of our golf operations at the end of March 2011.

Revenues from the Community Development segment were $2.5 million for the first quarter of 2011 compared to $3.9 million for the first quarter of 2010; and the segment reported an operating loss of $611,000 for the first quarter of 2011, compared to an operating profit of $806,000 for the first quarter of 2010. Lower revenues and the operating loss in the first quarter of 2011 are due to lower sales of real estate inventories, partially offset by a 12% increase in revenues from lease and license agreements as we continue to focus greater effort towards utilization of our real estate assets. In the first quarter of 2010, we sold approximately 128 acres of land in Upcountry Maui and recognized revenues of $1.7 million and pre-tax profit of approximately $1.5 million. There were no sales of real estate inventories in the first quarter of 2011.

At March 31, 2011, our total debt, including capital leases, was $47.0 million, compared to $45.4 million at December 31, 2010, and we had approximately $11.7 million available under our revolving line of credit and $1.3 million in cash and cash equivalents. Cash used in operating activities was $1.9 million for the first quarter of 2011. At March 31, 2011, and we had an excess of current liabilities over current assets of $3.4 million and a deficiency in stockholders’ equity (total liabilities exceeded total assets) of $11.7 million.

In the first three months of 2011, consolidated net cash used in operating activities was $1.9 million compared to net cash provided by operating activities of $3.3 million for the first three months of 2010. Operating cash flows for the first three months of 2011 include income tax refunds of $47,000 and interest payments of $351,000; compared to income tax refunds of $5.5 million and interest payments of $2.1 million for the first three months of 2010. Cash flows for the first three months of 2010 also included $1.5 million from the sale of real estate inventory and $830,000 from membership deposits for the Kapalua Club.

Read the The complete Report



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