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Maui Land & Pineapple Company Reports Fiscal 2024 Second Quarter Results

KAPALUA, Hawaii, Aug. 19, 2024 (GLOBE NEWSWIRE) — Maui Land & Pineapple Company, Inc. (NYSE: MLP) today reported financial results covering the six month period ended June 30, 2024.

“Maui Land & Pineapple Company’s mid-year results reflect positive momentum as we activate our vast portfolio of prime assets into productive use, thus supporting improved economic stability for the company and value creation for shareholders. With our mission of meeting the critical needs of our Maui community, combined with a profound sense of urgency, our team is focused on supporting local businesses and improving the quality of life on Maui,” said CEO, Race Randle.

Second Quarter 2024 Highlights

Strategic investments to reposition our commercial centers with a focus on supporting businesses impacted by the August 2023 Maui wildfires has contributed to a 24% increase in commercial real estate occupancy over the past year. Due to this improved occupancy, recent land sales of non-strategic parcels, and operational improvements of resort amenities, the company has experienced and a 7.5% growth in overall operating revenue.

Business Segment Results:

Overall Results:

Revitalizing MLPs Commercial Town Centers

Maui Land & Pineapple Company has prioritized repositioning and reinvigorating its commercial centers in West Maui and Hali‘imaile during the first half of 2024. As part of these efforts, the Company has been actively pursuing new opportunities to optimize existing tenancy and execute new leases for available commercial space.

West Maui Leasing

Hali‘imaile Town Leasing

New Leaders Hired to Advance Asset Optimization & Development

Maui Land & Pineapple Company added two senior leaders to the team who are responsible for advancing efforts to maximize the productive use of the Company’s assets.

Land Improvements: Mark Matsuda, a veteran Civil Engineer on Maui, as Director of Engineering. Mark will allow MLP to accelerate concurrent land improvements across the portfolio, including planning, engineering, permitting, subdivision, and infrastructure design.

Land and Asset Management: Kainoa Casco, a local leader from Lahaina, as Vice President of Land Productivity & Asset Management. Kainoa will develop and execute strategies to increase the productivity and value creation from over 20,000 acres of unimproved land, primarily in West Maui.

“A mission to place tens of thousands of acres of prime land into active use is both a tremendous opportunity and an incredible responsibility. Mark and Kainoa bring valuable local expertise, from the completion of large-scale land and infrastructure improvements, to the leasing and management of land for agriculture and renewable energy,” said Randle. “We’re honored to welcome these local leaders to our team as we embark on our journey to meet the critical needs of the community.”

Non-GAAP Financial Measures

Certain non-GAAP financial measures are presented in this press release, including Adjusted EBITDA and Cash and Investments Convertible to Cash, to provide information that may assist investors in understanding the Company’s financial results and financial condition and assessing its prospects for future performance. 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 are important indicators of liquidity because it includes items that are convertible into cash in the short term. These non-GAAP financial measures 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, 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. The inclusion of the convertible investments to cash better describes the overall liquidity of the company as convertible investments convert to cash within forty-eight hours of authorization to liquidate the investment portfolio.

Additional Information

More information about Maui Land & Pineapple Company’s fiscal year 2023 operating results are available in the Form 10-K filed with the Securities and Exchange Commission on March 28, 2024 and posted at mauiland.com.

About Maui Land & Pineapple Company 

Maui Land & Pineapple Company, Inc. (NYSE: MLP) is dedicated to the thoughtful stewardship of their portfolio including over 22,300 acres of land and 266,000 square feet of commercial real estate. The Company envisions a future where people can thrive in resilient communities with sufficient housing supply, economic stability, food and water security and deep connections between people and place. For over a century, the Company has built a legacy of authentic innovation through conservation, agriculture, community building and land management. The Company continues this legacy today with a mission to thoughtfully maximize the productive use of its assets to meet the current critical needs and those of future generations.

The Company’s assets include land for future residential and mixed-use projects 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 Company’s ability to repurpose its land for productive use, increase Maui’s housing supply and improve tenanting of the village centers, and fill the vacancies in our commercial properties. These forward-looking statements are based on 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 because of new information, future developments or otherwise.

CONTACT
Investors: Wade Kodama | Chief Financial Officer | Maui Land & Pineapple Company
e: wade@mauiland.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)
 
    Six Months Ended
June 30,
 
    2024     2023  
    (in thousands except  
    per share amounts)  
OPERATING REVENUES                
Land development and sales   $ 200     $ 19  
Leasing     4,388       4,318  
Resort amenities and other     540       433  
Total operating revenues     5,128       4,770  
                 
OPERATING COSTS AND EXPENSES                
Land development and sales     450       418  
Leasing     2,114       1,833  
Resort amenities and other     741       911  
General and administrative     2,178       2,059  
Share-based compensation     2,582       1,772  
Depreciation     344       491  
Total operating costs and expenses     8,409       7,484  
                 
OPERATING LOSS     (3,281 )     (2,714 )
                 
Other income     193       479  
Pension and other post-retirement expenses     (156 )     (243 )
Interest expense     (3 )     (3 )
NET LOSS   $ (3,247 )   $ (2,481 )
Other comprehensive income – pension, net     136     164  
                 
TOTAL COMPREHENSIVE LOSS   $ (3,111 )   $ (2,317 )
                 
NET LOSS PER COMMON SHARE-BASIC   $ (0.17 )   $ (0.13 )
                 
NET LOSS PER COMMON SHARE-DILUTED   $ (0.16 )   $ (0.13 )
MAUI LAND & PINEAPPLE COMPANY, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
 
    June 30, 2024     December 31,
2023
 
    (unaudited)     (audited)  
    (in thousands except share data)  
ASSETS                
CURRENT ASSETS                
Cash and cash equivalents   $ 3,733     $ 5,700  
Accounts receivable, net     1,337       1,166  
Investments, current portion     2,949       2,671  
Prepaid expenses and other assets     644       467  
Total current assets     8,663       10,004  
                 
PROPERTY & EQUIPMENT, NET     16,319       16,059  
                 
OTHER ASSETS                
Investments, net of current portion     278       464  
Investment in joint venture     1,627       1,608  
Deferred development costs     13,363       12,815  
Other noncurrent assets     1,686       1,273  
Total other assets     16,954       16,160  
TOTAL ASSETS   $ 41,936     $ 42,223  
                 
LIABILITIES & STOCKHOLDERS’ EQUITY                
LIABILITIES                
CURRENT LIABILITIES                
Accounts payable   $ 1,310     $ 1,154  
Payroll and employee benefits     431       502  
Accrued retirement benefits, current portion     142       142  
Deferred revenue, current portion     513       217  
Other current liabilities     517       465  
Total current liabilities     2,913       2,480  
                 
LONG-TERM LIABILITIES                
Accrued retirement benefits, net of current portion     1,506       1,550  
Deferred revenue, net of current portion     1,300       1,367  
Deposits     1,968       2,108  
Other noncurrent liabilities     30       14  
Total long-term liabilities     4,804       5,039  
TOTAL LIABILITIES     7,717       7,519  
                 
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; 19,650,489 and 19,615,350 shares issued and outstanding at June 30, 2024 and December 31, 2023, respectively     85,369       84,680  
Additional paid-in-capital     12,475       10,538  
Accumulated deficit     (56,864 )     (53,617 )
Accumulated other comprehensive loss     (6,761 )     (6,897 )
Total stockholders’ equity     34,219       34,704  
TOTAL LIABILITIES & STOCKHOLDERS’ EQUITY   $ 41,936     $ 42,223  
MAUI LAND & PINEAPPLE COMPANY, INC. AND SUBSIDIARIES
SUPPLEMENTAL FINANCIAL INFORMATION
(NON-GAAP) UNAUDITED

 
  Six Months Ended June 30,
    2024       2023  
  (in thousands except per share amounts)
       
NET LOSS $ (3,247 )   $ (2,481 )
Add: Non-cash income and expenses      
       Interest expense   3       3  
       Depreciation   344       491  
       Amortization of licensing fee revenue   (67 )     (67 )
       Share-based compensation      
          Vesting of Incentive Stock for former CEO and VP upon separation       730  
          Vesting of Stock Options granted to Board Chair and Directors   1,541       473  
          Vesting of Stock Compensation granted to Board Chair and Directors   274      
          Vesting of Stock Options granted to CEO   397      
          Vesting of employee Incentive Stock   370       569  
       Pension and other post-retirement expenses   156       243  
       
ADJUSTED EBITDA (LOSS) $ (229 )   $ (39 )
    June 30, 2024
  December 31, 2023
    (unaudited)
  (audited)
    (in thousands)
         
CASH AND INVESTMENTS        
         
Cash and cash equivalents   $ 3,733   $ 5,700
Investments, current portion     2,949     2,671
Investment, net of current potion     278     464
         
TOTAL CASH AND INVESTMENTS CONVERTIBLE TO CASH   $ 6,960   $ 8,835


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