ML Macadamia Orchards, L.P. Reports 2nd Quarter 2002 Earnings
HILO, Hawaii, Aug 13, 2002 (BUSINESS WIRE) -- ML Macadamia Orchards, L.P. (NYSE:NUT), today reported a second quarter net loss of $241,000 or ($0.03) per Class A Unit, on revenues of $662,000. The second quarter marks the end of the harvest season and normally accounts for less than 5% of the total year's harvest.
In 2001, net income was $702,000, or $0.09 per Class A Unit, on $2.2 million in revenues. Included in the prior year results is a revenue settlement of $1 million, resulting from a favorable ruling in litigation against Mauna Loa Macadamia Nut Corporation ("Mauna Loa"), the Partnership's exclusive customer.
Nut revenues were $88,000 for the three months ended June 30, 2002, compared to $466,000 in the prior year, due to different weather patterns affecting the timing of the harvest. Farming service revenues were $574,000, or approximately 18% lower than the previous quarter.
For the first six months of 2002, revenues were $3.3 million and the net income, a negative of $387,000, or ($0.05) per Class A Unit. Revenues in the first six months of 2001 were $5.2 million and net income was $286,000, or $0.04 per Class A Unit.
The Partnership's orchards in the Ka'u region received ample rainfall in the first six months of 2002, after three years of drought, and the crop forecast is promising. Reports of a significantly smaller Australian crop, caused by unusually harsh weather conditions, are expected to reduce global supply. The scarcity of supply should lower U.S. imports and have a favorable effect on future macadamia prices.
On January 30, 2002, the Partnership received a partial payment of $2.4 million from Mauna Loa, on a total receivable of $5.4 million, for nuts delivered in the 4th quarter of 2001. The balance has since been paid in full in the month of July. Additionally, the $1.8 million payment for nuts delivered in the first quarter of 2002 was deferred by Mauna Loa and has also been collected in full.
This press release contains forward-looking statements regarding future events and future performance of the Partnership that involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These include statements, among others, regarding the Partnership's future nut prices and the outcome of legal action, which are based on certain assumptions and forecasts. The Partnership files documents with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K reports, which contain a description of these and other risks and uncertainties that could cause actual results to differ from current expectations and the forward-looking statements contained in this press release.
ML Macadamia Orchards, L.P.
Income Statements (unaudited)
(in thousands, except per unit data)
Three months Six months
ended June 30, ended June 30,
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2002 2001 2002 2001
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Macadamia nut sales $ 88 $ 1,466 $ 1,722 $ 3,206
Contract farming
revenue 574 696 1,549 1,973
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Total revenues 662 2,162 3,271 5,179
Cost of goods and
services sold 532 929 2,849 3,694
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Gross income 130 1,233 422 1,485
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General and
administrative
expenses 307 436 657 989
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Operating
income (loss) (177) 797 (235) 496
Interest expense (78) (97) (175) (210)
Interest income 19 40 38 47
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Income (loss)
before tax (236) 740 (372) 333
Income tax expense 5 38 15 47
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Net income
(loss) $ (241) $ 702 $ (387) $ 286
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Net cash flow
(as defined in
the Partnership
Agreement) $ (568) $ 435 $ (358) $ 387
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Net income (loss)
per Class A Unit $ (0.03) $ 0.09 $ (0.05) $ 0.04
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Net cash flow per
Class A Unit $ (0.07) $ 0.06 $ (0.05) $ 0.05
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Cash distributions
per Class A Unit $ 0.05 $ 0.05 $ 0.10 $ 0.10
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Class A Units
outstanding 7,500 7,500 7,500 7,500
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CONTACT: ML Macadamia Orchards, L.P.
Dennis J. Simonis, 808/969-8052 |
