Maui Land & Pineapple Co. Inc. continued to sell assets to help improve finances during the second quarter, but only managed to narrow a net loss compared with a year earlier.
SECOND-QUARTER LOSS
$2.5 million
YEAR-EARLIER LOSS
$4.6 million |
The Kapalua-based company released its earnings on Wednesday for the April-June period, and reported a $2.5 million net loss compared with a $4.6 million loss in the same period last year.
Revenue was down to $5.2 million in the second quarter from $6.3 million a year earlier.
During the quarter, Maui Land sold a portion of its former pineapple cannery site in Kahului for $9.8 million. Proceeds were used in part for working capital and to pay down debt. The company also set aside $4.1 million from sale proceeds to settle obligations related to former operations including pineapple farming.
Maui Land in recent quarters has been relying on asset sales, including two golf courses and a former headquarters building in Kahului, to help reverse roughly $210 million in losses over two years tied to farming and real estate development investments.
The golf course sales at Kapalua Resort helped the company string together three straight profitable quarters until the recent quarter. And for the first half of this year, Maui Land had a profit of $10 million. But core operations — namely running Kapalua Resort and developing and selling real estate around the West Maui resort — remain under financial strain.
Revenue in the second quarter was lower in four areas reported by Maui Land — resort services, leases, retail sales and utility revenue/other revenue.
Tim Esaki, Maui Land’s chief financial officer, said in a statement that the company, which quit growing pineapple in 2009, continues to work on the turnaround effort.
"While the company still faces many challenges, we continue to make steady progress towards resolving our legacy issues, and restructuring and streamlining our operations," he said.
Maui Land released its earnings report after the stock market closed. Shares of Maui Land closed Wednesday on the New York Stock Exchange at $5.02, up 32 cents from Tuesday. Shares over the past 52 weeks have traded as high as $7.40 on Feb. 11 and as low as $3.87 on Nov. 23.
