Maui Land & Pineapple pany(MLP) - 2024 Q3 - Quarterly Results

Q3 2024 Financial and Operational Highlights Overall Performance Summary Maui Land & Pineapple Company achieved an 18.6% increase in total operating revenue for the nine months ended September 30, 2024, driven by a 19% rise in leased commercial area and strategic land planning for long-term value - Total operating revenue increased by 18.6% for the nine months ended September 30, 2024, compared to the same period in 2023[2][3] - The leased area in the company's commercial portfolio grew by approximately 19% during the first nine months of 2024, contributing to revenue growth[3][5] - Strategic planning is underway for over 3,500 acres in West Maui and over 600 acres in Hali'imaile, with value uplift expected over the next several years[2] Business Segment Performance All business segments experienced revenue growth in the first nine months of 2024, primarily driven by the Leasing segment's $899,000 increase due to a 19% rise in leased area, alongside growth in Land Development and Resort Amenities Segment Revenue (Nine Months Ended Sep 30, in thousands) | Segment | 2024 Revenue (in thousands) | 2023 Revenue (in thousands) | Change (in thousands) | | :--- | :--- | :--- | :--- | | Leasing | $7,148 | $6,249 | +$899 | | Resort Amenities and Other | $805 | $604 | +$201 | | Land Development and Sales | $200 | $19 | +$181 | - The Leasing segment's leased area increased by 19% in 2024, driving its revenue growth[5] - Land development operating costs increased by $161,000 due to strategic planning and engineering efforts, with $984,000 in cash expended on active projects[4] Consolidated Financial Results For the first nine months of 2024, operating revenue increased to $8.15 million, but a significant rise in operating costs, primarily from non-cash share-based compensation, led to a higher net loss of $5.48 million and a basic loss per share of ($0.28), despite an improved Adjusted EBITDA loss of ($138,000) and increased cash and investments Key Financial Metrics (Nine Months Ended Sep 30, in thousands) | Metric | 2024 | 2023 | | :--- | :--- | :--- | | Operating Revenues | $8,153,000 | $6,872,000 | | Operating Costs & Expenses | $13,669,000 | $10,774,000 | | Net Loss | ($5,484,000) | ($3,673,000) | | Net Loss per Share (Basic) | ($0.28) | ($0.19) | | Adjusted EBITDA (Non-GAAP) | ($138,000) | ($249,000) | - The increased net loss was primarily driven by non-cash share-based compensation of $4.68 million (vs. $1.74 million in 2023) and severance payments of $321,000 to the former CEO[7] - Cash and investments convertible to cash (Non-GAAP) totaled $9.24 million as of September 30, 2024, an increase of $404,000 from year-end 2023, including a $3.0 million draw on the company's credit facility[8] Strategic Initiatives and Corporate Updates Community Support and Portfolio Revitalization The company demonstrates community support by providing 50 acres of land at no cost for temporary housing for wildfire victims, while also revitalizing its commercial portfolio through new and renewed long-term leases - Agreed to a no-cost, five-year lease of approximately 50 acres of land to the State of Hawai'i for the construction of temporary housing for those displaced by the Maui wildfires[9] - The company will administer the construction of necessary infrastructure (approx. $35.5 million funded by the State) at cost, without contributing to its profits[10] - Renewed long-term commercial leases with Kapalua Ziplines and Honolua Store in West Maui, and signed a new lease with Aloha Training in Hali'imaile[12][13] Financial Statements and Non-GAAP Reconciliations Condensed Consolidated Statements of Operations For the nine months ended September 30, 2024, total operating revenues increased to $8.15 million, but a substantial rise in operating costs, primarily due to share-based compensation, led to an operating loss of $5.52 million and a net loss of $5.48 million, or ($0.28) per basic share Condensed Statement of Operations (Nine Months Ended Sep 30, in thousands) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | Total operating revenues | $8,153 | $6,872 | | Leasing | $7,148 | $6,249 | | Total operating costs and expenses | $13,669 | $10,774 | | Share-based compensation | $4,676 | $2,472 | | General and administrative | $3,336 | $2,996 | | Operating Loss | ($5,516) | ($3,902) | | Net Loss | ($5,484) | ($3,673) | | Net Loss Per Common Share-Basic | ($0.28) | ($0.19) | Condensed Consolidated Balance Sheets As of September 30, 2024, total assets increased to $45.9 million from $42.2 million at year-end 2023, driven by property and development costs, while total liabilities significantly rose to $11.9 million due to a $3.0 million credit facility draw, resulting in a slight decrease in total stockholders' equity to $34.0 million Balance Sheet Highlights (in thousands) | Account | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $6,138 | $5,700 | | Total Current Assets | $11,449 | $10,004 | | Total Assets | $45,916 | $42,223 | | Total Current Liabilities | $4,006 | $2,480 | | Line of credit | $3,000 | $0 | | Total Liabilities | $11,926 | $7,519 | | Total Stockholders' Equity | $33,990 | $34,704 | Non-GAAP Financial Measures and Reconciliations The company utilizes Adjusted EBITDA and Cash and Investments Convertible to Cash as key non-GAAP metrics, with the $5.48 million net loss for the nine months ended September 30, 2024, adjusting to an Adjusted EBITDA loss of ($138,000) after accounting for non-cash items, and total cash and investments reaching $9.24 million Reconciliation of Net Loss to Adjusted EBITDA (Nine Months Ended Sep 30, in thousands) | Line Item | 2024 | 2023 | | :--- | :--- | :--- | | Net Loss | ($5,484) | ($3,673) | | Share-based compensation | $4,676 | $2,472 | | Depreciation | $531 | $683 | | Pension & post-retirement expenses | $234 | $364 | | Other adjustments | ($95) | ($95) | | Adjusted EBITDA (Loss) | ($138) | ($249) | Cash and Investments Convertible to Cash (in thousands) | Line Item | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $6,138 | $5,700 | | Investments | $3,101 | $3,135 | | Total | $9,239 | $8,835 | - The company defines Adjusted EBITDA as net income (loss) adjusted for interest, taxes, depreciation, amortization, and other non-cash expenses like stock-based compensation[15]