Maui Land & Pineapple Co Inc Reports Q3 2023 Results Amidst Challenges
Maui Land & Pineapple Co Inc (NYSE:MLP) reports a loss for the third quarter of 2023.
Lease revenue decreased due to the impact of August wildfires and temporary business closures.
Adjusted EBITDA and cash positions reflect the company's resilience and liquidity.
MLP focuses on community support and asset utilization for future growth.
On November 13, 2023, Maui Land & Pineapple Co Inc (NYSE:MLP) released its 8-K filing, detailing its financial results for the nine months ending September 30, 2023. The company faced a challenging quarter, reporting a loss attributed to the impacts of the August wildfires on Maui, which led to temporary business closures and reduced sales, affecting lease revenue. Additionally, one-time costs associated with leadership transition and a strategic pause on land sales contributed to the loss.
Financial Performance Overview
MLP's operating revenues for the nine months ended September 30, 2023, were $6.872 million, a significant decrease from $18.787 million in the same period in 2022. This decline was primarily due to a decrease in real estate revenue, which dropped from $11.6 million in 2022 to just $19 thousand in 2023. Leasing revenue also saw a slight decrease to $6.249 million from $6.559 million year-over-year.
The company's operating costs and expenses totaled $10.774 million, compared to $8.656 million in the previous year, leading to an operating loss of $3.902 million, a stark contrast to the operating income of $10.131 million reported in the same period last year. MLP's net loss for the nine months was $3.673 million, or $(0.19) per share, compared to a net income of $9.783 million, or $0.50 per share, in 2022.
Balance Sheet and Cash Flow Insights
MLP's balance sheet as of September 30, 2023, shows total assets of $41.446 million, a slight decrease from $42.406 million at the end of 2022. The company's cash and cash equivalents stood at $6.771 million, down from $8.499 million at the end of the previous year. Total liabilities were $9.008 million, marginally higher than the $8.634 million reported at the end of 2022.
The company's total cash and investments convertible to cash amounted to $9.856 million, a decrease from $11.492 million at the end of the previous year. This reflects the company's liquidity position and its ability to convert assets into cash in the short term.
Management Commentary and Future Outlook
CEO Race Randle commented on the company's commitment to community support and asset utilization, stating:
"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."
He further emphasized the company's efforts to advance the utilization of entitled properties, fill vacancies in commercial properties, and lease available agricultural lands for productive use.
Non-GAAP Financial Measures
MLP provided non-GAAP financial measures, including Adjusted EBITDA, which is a key measure used by the company to evaluate operating performance and make strategic decisions. Adjusted EBITDA for the nine months ended September 30, 2023, was a loss of $149 thousand, compared to a gain of $11.919 million in the same period in 2022. This measure helps investors understand the company's core operating results by excluding items such as non-cash stock-based compensation expense and pension and post-retirement expenses.
For more detailed information on Maui Land & Pineapple Company's third quarter 2023 operating results, investors and interested parties are encouraged to review the Form 10-Q filed with the Securities and Exchange Commission, which is available at mauiland.com.
As MLP navigates through the aftermath of the wildfires and the strategic decisions made in 2023, the company remains focused on its mission of stewardship and community support, with an eye towards future growth and resilience.
Explore the complete 8-K earnings release (here) from Maui Land & Pineapple Co Inc for further details.
This article first appeared on GuruFocus.
