Maui Land & Pineapple pany(MLP) - 2025 Q2 - Quarterly Results

Fiscal Second Quarter 2025 Results Overview Management Commentary Management highlighted strong H1 2025 financial performance, attributing growth to maximizing land productivity and strategic asset management - CEO Race Randle stated that the strong financial performance validates the company's strategy to unlock value by maximizing the productivity of its land and commercial properties[2] - Key strategic actions in Q2 include: - Selling non-strategic parcels to fund projects - Investing in an agave venture by planting blue weber agave on underutilized croplands - Reinvesting in asset management, resulting in a 46% increase in leasing revenue over the same six-month period last year[3] - CFO Wade Kodama explained that the strategic decision to annuitize former employees' pensions temporarily impacted GAAP earnings in Q2, but this will be offset by a comprehensive gain in Q3[4] Financial Highlights H1 2025 operating revenues surged 103% to $10.4 million, with net GAAP loss widening to $9.6 million from a non-cash pension expense Key Financial Metrics (Six Months Ended June 30) | Metric | 2025 | 2024 | Change | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Operating Revenues | $10,406,000 | $5,128,000 | +$5,278,000 | +103% | | Net Loss | ($9,639,000) | ($3,247,000) | -$6,392,000 | -197% | | Net Loss Per Share | ($0.49) | ($0.16) | -$0.33 | -206% | | Adjusted EBITDA (Non-GAAP) | ($192,000) | ($247,000) | +$55,000 | +22% | Detailed Financial Performance Analysis Operating Revenues H1 2025 operating revenues more than doubled to $10.4 million, driven by land development sales and a 46% rise in leasing revenue Operating Revenues Breakdown (Six Months Ended June 30) | Revenue Source | 2025 (in thousands) | 2024 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Land development and sales | $3,442 | $200 | +1621% | | Leasing | $6,421 | $4,388 | +46% | | Total Operating Revenues | $10,406 | $5,128 | +103% | - Land development and sales revenue growth was mainly attributed to $3.1 million from the Honokeana Homes Relief Housing Project with the State of Hawai'i[4] - The 46% increase in leasing revenue resulted from focused efforts to improve occupancy, update leases to market rates, and lease underutilized croplands[4] Operating Costs and Expenses H1 2025 operating costs increased by $4.5 million to $12.9 million, primarily from land development and sales costs for the Honokeana Homes project Operating Costs Breakdown (Six Months Ended June 30) | Cost Category | 2025 (in thousands) | 2024 (in thousands) | Change (%) | | :--- | :--- | :--- | :--- | | Land development and sales | $3,300 | $450 | +633% | | Leasing | $3,367 | $2,114 | +59% | | General and administrative | $2,514 | $2,178 | +15% | | Total Operating Costs | $12,897 | $8,409 | +53% | - The increase in operating costs was primarily due to $3.16 million in direct construction costs for the Honokeana Homes project[4] - Water and conservation costs rose by 77% (or $544 thousand), driven by increased operations, maintenance, and higher electricity costs for groundwater wells[4] Profitability and Other Items H1 2025 net loss significantly increased to $9.6 million, primarily due to a $7.3 million rise in pension expenses from plan annuitization Profitability Metrics (Six Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Operating Loss | ($2,491) | ($3,281) | | Pension and other post-retirement expenses | ($7,501) | ($156) | | Net Loss | ($9,639) | ($3,247) | | Net Loss Per Share | ($0.49) | ($0.16) | - Pension expenses increased by $7.345 million, of which approximately $6.397 million is a non-cash GAAP expense due to the pension plan annuitization[5] - The large pension expense is expected to be offset by a corresponding non-cash gain reported as other comprehensive gain in the third quarter of 2025[5] Liquidity and Capital Resources As of June 30, 2025, Cash and Investments Convertible to Cash totaled $7.0 million, a $2.5 million decrease from pension contributions and capital expenditures Cash and Investments Convertible to Cash (Non-GAAP) | Date | Amount (in thousands) | | :--- | :--- | | June 30, 2025 | $7,028 | | December 31, 2024 | $9,522 | - The primary uses of cash included $1.06 million for pension termination contributions and $2.104 million for development activities, capital expenditures, and the agave venture[5] Consolidated Financial Statements Consolidated Statements of Operations The unaudited H1 2025 statement of operations shows a net loss of $9.6 million, with $10.4 million in revenues and $12.9 million in costs Consolidated Statements of Operations (Unaudited, in thousands) | | Six Months Ended June 30, | | :--- | :--- | :--- | | | 2025 | 2024 | | Total operating revenues | $10,406 | $5,128 | | Total operating costs and expenses | $12,897 | $8,409 | | OPERATING LOSS | ($2,491) | ($3,281) | | Other income | $455 | $193 | | Pension and other post-retirement expenses | ($7,501) | ($156) | | Interest expense | ($103) | ($3) | | NET LOSS | ($9,639) | ($3,247) | | NET LOSS PER COMMON SHARE | ($0.49) | ($0.16) | Consolidated Balance Sheets As of June 30, 2025, total assets decreased to $45.7 million, liabilities increased to $19.4 million, and stockholders' equity declined to $26.3 million Consolidated Balance Sheet Highlights (Unaudited, in thousands) | | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total current assets | $11,398 | $15,127 | | TOTAL ASSETS | $45,739 | $50,139 | | Total current liabilities | $14,747 | $11,197 | | TOTAL LIABILITIES | $19,445 | $16,958 | | Total stockholders' equity | $26,294 | $33,181 | | TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $45,739 | $50,139 | Non-GAAP Financial Measures Definitions and Use The company uses non-GAAP measures like Adjusted EBITDA and Cash and Investments Convertible to Cash to provide additional insights into financial results and liquidity - Adjusted EBITDA is defined as net income (loss) excluding interest, taxes, depreciation, amortization, non-cash stock-based compensation, pension expenses, and bad debt[7] - Cash and Investments Convertible to Cash is defined as cash and cash equivalents plus investments that can be converted to cash within 48 hours[8] Reconciliation of Non-GAAP Measures H1 2025 Adjusted EBITDA loss improved to $191 thousand, reconciled from a GAAP net loss of $9.6 million by adding back non-cash expenses Reconciliation of Net Loss to Adjusted EBITDA (Unaudited, in thousands) | | Six Months Ended June 30, | | :--- | :--- | :--- | | | 2025 | 2024 | | NET LOSS | ($9,639) | ($3,247) | | Depreciation | $541 | $344 | | Share-based compensation | $2,321 | $2,582 | | Bad debt expense | $252 | $5 | | Pension and other post-retirement expenses (non-cash) | $6,397 | $133 | | Other non-cash items | ($63) | ($64) | | ADJUSTED EBITDA (LOSS) | ($191) | ($247) | Other Information About Maui Land & Pineapple Company Maui Land & Pineapple Company manages over 22,000 acres and 247,000 square feet of commercial real estate on Maui, focused on community stewardship - The company's portfolio includes over 22,000 acres of land and approximately 247,000 square feet of commercial real estate[10] - Assets include land for future development within the Kapalua Resort and the Pu'u Kukui Watershed nature preserve[11] Forward-Looking Statements This section cautions that forward-looking statements regarding future events and performance are subject to significant business, economic, and competitive risks - The press release contains forward-looking statements regarding the company's ability to put its land into productive use, cultivate and commercialize Agave, resolve legacy obligations, sell non-strategic parcels, and reduce share-based compensation expenses[12]