Maui Land & Pineapple pany(MLP) - 2025 Q1 - Quarterly Results

Maui Land & Pineapple Company, Inc. Q1 2025 Results Executive Summary & Key Highlights MLP reports strong Q1 2025 revenue growth and positive Adjusted EBITDA despite a GAAP net loss - Operating revenue saw a 134% year-over-year gain, primarily driven by significant increases in occupancy and income from commercial real estate leasing[2] - The company is positioned for improved GAAP income moving forward due to a successful pension restructuring, full settlement of severance obligations to former leaders, and an expected decrease in share-based compensation expenses[2] Q1 2025 Key Financial Metrics | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Operating Revenues | $5.8M | $2.5M | +134% | | Net Loss (GAAP) | ($8.6M) | ($1.4M) | ($7.2M) | | EPS (Diluted) | ($0.44) | ($0.07) | ($0.37) | | Adjusted EBITDA (Non-GAAP) | $0.2M | ($0.2M) | +$0.4M | New Agri-Business Venture The company launched a new, scalable agricultural initiative focused on cultivating drought-tolerant Agave - MLP is launching a new scalable business initiative to cultivate Agave, a drought-tolerant, low-maintenance crop[3] - The initiative aims to accelerate the productivity of underutilized croplands, create living wage jobs, and boost environmental and economic sustainability[3] - The strategy includes potential for revenue upside from vertical integration with on-island distillation, regenerative agri-tourism, and local/global distribution[4] Detailed Financial Results (Q1 2025 vs Q1 2024) Q1 2025 saw significant revenue growth but a higher GAAP net loss due to non-cash expenses Operating Revenues Operating revenues grew 134% year-over-year, driven by new land development and increased leasing income Operating Revenues Breakdown (in thousands) | Revenue Source | Q1 2025 | Q1 2024 | Change (%) | | :--- | :--- | :--- | :--- | | Land development and sales | $2,298 | $0 | N/A | | Leasing | $3,219 | $2,216 | +45% | | Total Operating Revenues | $5,804 | $2,483 | +134% | - Land development revenue of $2,278,000 is attributed to contracting revenues from the Honokeana Homes Relief Housing Project with the State of Hawai'i[6] - The 45% increase in leasing revenue was driven by efforts to improve occupancy, bring leases to market rates, and sign new leases for renovated properties[6] Costs and Expenses Total operating costs rose significantly due to construction, leasing, G&A, and share-based compensation - Operating costs and expenses increased by $3.7 million to $7.6 million in Q1 2025[6] - Key drivers of the cost increase include: $2.3M in direct construction costs, $372k in leasing costs, $460k in G&A expenses, and $622k in non-cash share-based compensation[6] Net Loss and Profitability A large non-cash pension expense drove a GAAP net loss, while Adjusted EBITDA improved year-over-year Profitability Metrics | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Loss (GAAP) | ($8,640,000) | ($1,375,000) | | EPS (Diluted) | ($0.44) | ($0.07) | | Adjusted EBITDA (Non-GAAP) | $200,000 | ($212,000) | - A non-cash GAAP pension expense of approximately $6,800,000 was recorded due to a pension plan annuitization and is expected to be offset by a corresponding non-cash gain in Q2 2025[7] - The former CEO's severance payments have been fulfilled and will not be a recurring expense after March 31, 2025[7] Liquidity The company maintained a stable liquidity position with $9.5 million in cash and convertible investments Cash and Investments Convertible to Cash (Non-GAAP, in thousands) | Date | Amount | | :--- | :--- | | March 31, 2025 | $9,455 | | March 31, 2024 | $9,522 | Financial Statements (Unaudited) This section presents the unaudited consolidated statements of operations and balance sheets for Q1 2025 Consolidated Statements of Operations and Comprehensive Income (Loss) The statement details revenues and expenses, resulting in a net loss of $8.64 million for the quarter Consolidated Statements of Operations (in thousands) | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | 2025 | 2024 | | Total operating revenues | $5,804 | $2,483 | | Total operating costs and expenses | $7,583 | $3,882 | | OPERATING LOSS | ($1,779) | ($1,399) | | Pension and other post-retirement expenses | ($6,919) | ($78) | | NET LOSS | ($8,640) | ($1,375) | | NET LOSS PER COMMON SHARE-BASIC AND DILUTED | ($0.44) | ($0.07) | Consolidated Balance Sheets The balance sheet shows total assets of $47.2 million and total stockholders' equity of $26.7 million Consolidated Balance Sheet Highlights (in thousands) | | March 31, 2025 (unaudited) | December 31, 2024 (audited) | | :--- | :--- | :--- | | Total current assets | $12,562 | $15,127 | | TOTAL ASSETS | $47,232 | $50,139 | | Total current liabilities | $15,753 | $11,197 | | TOTAL LIABILITIES | $20,516 | $16,958 | | Total stockholders' equity | $26,716 | $33,181 | Non-GAAP Financial Measures The company uses Adjusted EBITDA and other non-GAAP metrics to clarify core performance and liquidity - The company presents Adjusted EBITDA and Cash and Investments Convertible to Cash to help investors understand financial results, condition, and performance prospects[8] - Adjusted EBITDA is defined as net income (loss) excluding interest, taxes, depreciation, amortization, and further adjusted for non-cash stock-based compensation, pension expenses, and other non-recurring items[9] Reconciliation of Net Loss to Adjusted EBITDA (in thousands) | | Three Months Ended March 31, | | | :--- | :--- | :--- | | | 2025 | 2024 | | NET LOSS | ($8,640) | ($1,375) | | Depreciation | $186 | $172 | | Share-based compensation (total) | $1,579 | $958 | | Pension and other post-retirement expenses | $6,897 | $55 | | Other adjustments | $178 | ($22) | | ADJUSTED EBITDA (LOSS) | $200 | ($212) | About the Company & Forward-Looking Statements MLP is a land stewardship company managing over 22,000 acres on Maui and provides forward-looking statements - MLP is dedicated to the stewardship of its portfolio, including over 22,000 acres of land and approximately 247,000 square feet of commercial real estate[12] - Company assets include land within the Kapalua Resort, home to luxury hotels, championship golf courses, and the Pu'u Kukui Watershed, the largest private nature preserve in Hawai'i[13] - The press release contains forward-looking statements regarding the productive use of land, the Agave venture, and future expenses, which are subject to significant uncertainties and risks[14]