Royal Hawaiian Orchards, L.P. Reports Third Quarter 2013 Earnings
05 Novembre 2013 - 8:23PM
Marketwired
Royal Hawaiian Orchards, L.P. Reports Third Quarter 2013 Earnings
HILO, HI--(Marketwired - Nov 5, 2013) - Royal Hawaiian Orchards,
L.P. (OTCQX: NNUTU) today reported a net loss of $1.2 million, or
($0.16) per Class A Unit for the third quarter of 2013 on revenues
of $4.4 million as compared to net income of $296,000, or $0.04 per
Class A Unit on revenues of $6.3 million for the third quarter of
2012. This loss was attributable to: 1) 8%, or 689,000 fewer
pounds WIS produced to date. Weather conditions this fall at
Ka'u affected the rate and density of the mature nut drop which
reduced the available pounds for harvest during the
quarter. The result was the Ka'u orchard had 41% fewer pounds
than the same quarter last year. A significant number of these
pounds will become harvestable in the fourth quarter of 2013 and
the first quarter of 2014, 2) macadamia nuts held in inventory
rather than sold as WIS, which will be sold by the Partnership for
its branded products, 3) the added selling, general and
administrative costs of our branded product segment, and 4) the
increase in the average cost per pound based on the Partnership's
lower forecasted annual production estimate and its method of
accounting for interim financial purposes.
For the nine-month period ended September 30, 2013, the
Partnership incurred a net loss of $3.0 million from revenues of
$6.9 million compared to a net loss of $509,000 from revenues of
$10.5 million during the same period in 2012. This was the
result of lower production in 2013 as compared to 2012 and our
investment in our branded product strategy. Lower 2013
production was the result of the Partnership accelerating its 2012
harvest which contributed to lower harvest levels in 2013, as the
accelerated harvesting shifted the nut production and related
revenue into 2012 rather than the first quarter of 2013. This
combined with lower third quarter 2013 yields due to adverse
weather and other conditions mentioned above, has caused nut
production to decrease.
Branded product sales for the three and nine months ended
September 30, 2013, amounted to $438,000 and $905,000,
respectively, which are reported net of trade discounts and new
product distribution expenses. The Partnership estimates that Royal
Hawaiian Orchards® products are now distributed in 3,000 retail
stores in the continental U.S. and Hawaii. Further, it
believes the 'universe' of Grocery, Natural Food, Drug, Mass, Club
and Specialty stores is in excess of 90,000 in the U.S. according
to trade industry publications. Plans are to continue
aggressively expanding Royal Hawaiian Orchards® brand products into
more retail stores during the balance of 2013 and into
2014. This retail expansion will require that the Partnership
hold macadamias as kernel in inventory to support year round
sales. The effect of holding inventory previously sold as WIS
will be a reduction in macadamia nut sales and an increase in
inventory. The Partnership expects a year to year reduction in
sales until kernel held in inventory is sold and branded sales meet
or exceed current macadamia nut sales, the timing of which is
unknown. For this reason, the Partnership believes its results
going forward will not be comparable with prior years.
As the Partnership expands its sales in its branded segment, it
intends to convert more macadamia nuts previously sold as WIS into
inventory and, it will incur additional new product distribution
costs. While this inventory build and investment in retail shelf
space will negatively impact near term financial performance, the
Partnership believes that the benefits it will enjoy from its
branded business will more than offset these short term
costs.
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, among others, statements regarding
the potential market for our Royal Hawaiian Orchards® products,
expansion and future sales of our branded segment and the benefits
of investing in the branded product segment, which statements 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.
The Partnership is one of the leading growers and processors of
macadamia nuts in the world, processing and marketing macadamia
nuts in-shell, in bulk kernel form and as better for you
snack products marketed under the Royal Hawaiian Orchards® brand
name.
|
|
Royal Hawaiian Orchards, L.P. |
|
Consolidated Statements of Comprehensive Income (Loss)
(unaudited) |
|
(in thousands, except per unit data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, |
|
|
Nine months ended September 30, |
|
|
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Macadamia nut sales |
|
$ |
3,391 |
|
|
$ |
5,495 |
|
|
$ |
4,805 |
|
|
$ |
9,050 |
|
Contract farming revenue |
|
|
570 |
|
|
|
759 |
|
|
|
1,231 |
|
|
|
1,471 |
|
Branded product sales |
|
|
438 |
|
|
|
- |
|
|
|
905 |
|
|
|
- |
|
|
Total revenues |
|
|
4,399 |
|
|
|
6,254 |
|
|
|
6,941 |
|
|
|
10,521 |
|
Cost of goods and services sold |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of macadamia nut sales |
|
|
3,502 |
|
|
|
4,361 |
|
|
|
4,614 |
|
|
|
6,927 |
|
|
Cost of contract farming services |
|
|
542 |
|
|
|
724 |
|
|
|
1,156 |
|
|
|
1,376 |
|
|
Cost of branded product sales |
|
|
350 |
|
|
|
- |
|
|
|
971 |
|
|
|
- |
|
|
|
Total cost of goods and services sold |
|
|
4,394 |
|
|
|
5,085 |
|
|
|
6,741 |
|
|
|
8,303 |
|
|
|
Gross income |
|
|
5 |
|
|
|
1,169 |
|
|
|
200 |
|
|
|
2,218 |
|
|
General and administrative expenses |
|
|
1,052 |
|
|
|
744 |
|
|
|
2,912 |
|
|
|
2,371 |
|
|
|
Operating income (loss) |
|
|
(1,047 |
) |
|
|
425 |
|
|
|
(2,712 |
) |
|
|
(153 |
) |
Interest expense |
|
|
(169 |
) |
|
|
(172 |
) |
|
|
(454 |
) |
|
|
(488 |
) |
Other income |
|
|
2 |
|
|
|
84 |
|
|
|
191 |
|
|
|
210 |
|
|
|
Income (loss) before income taxes |
|
|
(1,214 |
) |
|
|
337 |
|
|
|
(2,975 |
) |
|
|
(431 |
) |
Income tax expense |
|
|
3 |
|
|
|
41 |
|
|
|
21 |
|
|
|
78 |
|
|
|
Net income (loss) |
|
|
(1,217 |
) |
|
|
296 |
|
|
|
(2,996 |
) |
|
|
(509 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income, net of tax |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of prior service cost |
|
|
2 |
|
|
|
2 |
|
|
|
5 |
|
|
|
6 |
|
|
|
Amortization of actuarial loss |
|
|
5 |
|
|
|
4 |
|
|
|
16 |
|
|
|
12 |
|
|
|
Defined benefit pension plan |
|
|
7 |
|
|
|
6 |
|
|
|
21 |
|
|
|
18 |
|
|
|
|
Other
comprehensive income, net of tax |
|
|
7 |
|
|
|
6 |
|
|
|
21 |
|
|
|
18 |
|
|
|
|
Comprehensive income (loss) |
|
$ |
(1,210 |
) |
|
$ |
302 |
|
|
$ |
(2,975 |
) |
|
$ |
(491 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss) per Class A Unit |
|
$ |
(0.16 |
) |
|
$ |
0.04 |
|
|
$ |
(0.40 |
) |
|
$ |
(0.07 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash distributions per Class A Unit |
|
$ |
- |
|
|
$ |
- |
|
|
$ |
0.02 |
|
|
$ |
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class A Units outstanding |
|
|
7,500 |
|
|
|
7,500 |
|
|
|
7,500 |
|
|
|
7,500 |
|
|
|
Contact: Scott Wallace President Telephone: (949) 661-6304
Grafico Azioni Hawaiian Macadamia Nut O... (GM) (USOTC:NNUTU)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Hawaiian Macadamia Nut O... (GM) (USOTC:NNUTU)
Storico
Da Lug 2023 a Lug 2024