Maui Land & Pineapple Company Reports Third Quarter 2023 Results
KAPALUA, Hawai‘i / November 9, 2023 (BusinessWire) – Maui Land & Pineapple Company, Inc. (NYSE: MLP) today reported financial results covering the third quarter and 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 an anticipated 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. $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 severance paid to the former CEO monthly until March 31, 2025. Other costs incurred in the nine months ended September 30, 2023 that were not incurred previously were $916,000 due to stock option valuation expenses recognized for the Board of Directors.
- Net loss – Net loss was $3,426,000, or $0.17 per common share, in the nine months ended September 30, 2023, compared to net income of $ 10,251,000, or $0.52 per common share, in the nine months of 2022, as a direct result of land sales of $11,600,000 at September 30, 2022, 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 $3,527,000, Adjusted EBITDA was ($146,000).
- Cash and Liquid Investments Convertible to Cash (Non-GAAP) – Cash and liquid 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 for 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 these non-GAAP financial measures are important indicators of our operating performance because they exclude items that are unrelated to, and may not be indicative of, our core operating results. These non-GAAP financial measures, as we calculate them, may not be comparable to similarly titled measures of other companies and may not be appropriate measures for comparing the performance of other companies relative to the Company. 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 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.
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 of commercial properties. Founded as a family company in 1909, today MLP envisions a future 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.
Dylan Beesley
Ashley Takitani Leahey
