Royal Hawaiian Orchards, L.P. Reports First Quarter 2014 Results
14 Maggio 2014 - 8:17PM
Marketwired
Royal Hawaiian Orchards, L.P. Reports First Quarter 2014 Results
HILO, HI--(Marketwired - May 14, 2014) - Royal Hawaiian
Orchards, L.P. (OTCQX: NNUTU) reported today a net loss of
$253,000, or ($0.03) per weighted average Class A Unit for the
first quarter of 2014 on revenues of $3.6 million compared to a net
loss of $628,000 or ($0.08) per Class A Unit on revenues of $2.0
million for the same period in 2013. The increase in revenues
was attributable to $1.5 million and $300,000 in branded product
and wet-in-shell ("WIS") nut sales, respectively, over 2013, which
was offset by a $200,000 decrease in contract farming revenue.
WIS sales for the quarter ended March 31, 2014 amounted to $1.7
million compared to $1.4 for the same period in 2013, which is
attributable to increased WIS production sold of 218,000 pounds or
11% as compared to 2013. For the remainder of the year,
management anticipates that WIS revenue will be lower than
comparable prior year periods as the Partnership will retain 13
million WIS pounds for its Royal Hawaiian Orchards® macadamia snack
products in 2014 as compared to it retaining 6.5 million WIS pounds
in 2013. The production the Partnership keeps to build
inventory levels will not generate revenues until the product is
sold, which could be three to nine months after it typically would
have generated revenues selling WIS nuts. Branded products net
revenue amounted to $1.7 million for the three months ended March
31, 2014, compared to $200,000 for the same period in
2013. Revenue growth resulted from bulk kernel sales of $1.4
million, representing 76% of branded product gross sales for the
three month period ended March 31, 2014. Topline growth will
be driven by increased penetration into mainstream grocery and mass
merchandiser channels, improved product placement in stores and
eventually the introduction of new products in the Partnership's
key category. The Partnership intends to aggressively increase
the amount it spends on slotting fees in 2014 and anticipates those
and other promotional activities will continue to impact its net
sales and that changes in such activities will continue to impact
period-over period results. The decrease in contract farming
revenue resulted from no harvest activity performed at its Keaau
and Mauna Kea orchards during the first quarter of 2014. In
contrast, a longer than normal harvest season for the 2012 -
2013 crop year at its Keaau and Mauna Kea orchards, extended
the harvest into the first quarter of 2013, generating contract
farming revenue for those services.
The Partnership's gross profit margin amounted to 24% for the
three months ended March 31, 2014 as compared to 13% in the same
period last year. The increase was the result of the
Partnership harvesting 904,000 pounds more from its IASCO orchards,
which is subject to a 27% higher selling price than the nuts sold
under its non-IASCO nut purchase contract with Mauna Loa. In
addition, the gross profit margin on farming contracts increased
five percentage points. For the three month period ended March
31, 2014, branded products segment gross profit increased $452,000
over the same period in 2013. The increase was attributable to
increased sales and lower product costs. Utilizing its own
kernel resulted in cost reductions of approximately 23% as compared
to kernel purchased from third parties. In addition, slotting
fees and promotional discounts as a percentage of net revenue was
substantially lower for the three month period ended March 31,
2014, as compared to the same period in 2013.
On February 6, 2014, the Partnership completed its subscription
rights offering and raised $8.9 million after deducting
expenses. This will allow the Partnership to: fully implement
its branded product strategy of building raw materials and finished
goods inventory; extend the revenue cycle of harvested macadamias;
extend credit to its customers; repay indebtedness incurred to fund
working capital needs; fund promotional allowances, including
slotting fees charged by food retailers in order to have its
product placed on their shelves; and fund general partnership
purposes. The Partnership expects to be in 10,000 stores by
end of 2014.
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 amount of kernel produced in the Partnership's orchards segment
that will be used in its branded products, use of net proceeds from
the rights offering, increase in expenditures of slotting fees and
other promotional activities, anticipated revenues and placement of
products in stores by end of 2014. Factors that could cause
the Partnership's actual results to differ materially from the
results contemplated by such forward-looking statements include:
world market conditions relating to macadamia nuts; the weather and
local conditions in Hawaii affecting macadamia nut production;
regulatory environment, requirements or changes; general economic
conditions; the Partnership's ability to retain and attract skilled
employees; the Partnership's success in finding purchasers for its
macadamia nut production at acceptable prices; increasing
competition in the snack food market; the availability of and the
Partnership's ability to negotiate acceptable agreements with third
parties that are necessary for its business; market acceptance of
the Partnership's products in the branded segment; the availability
and cost of raw materials; and other factors discussed in the Risk
Factors section of the Partnership's Annual Report on Form 10-K for
the year ended December 31, 2013. The Partnership undertakes no
obligation to publicly correct or update the forward-looking
statements in this press release to reflect future events or
circumstances.
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. |
|
Condensed Consolidated Statements of Comprehensive Loss
(unaudited) |
|
(in thousands, except per unit data) |
|
|
|
|
|
Three months |
|
|
|
ended March 31, |
|
|
|
2014 |
|
|
2013 |
|
Orchards revenue |
|
$ |
1,923 |
|
|
$ |
1,789 |
|
Branded product sales, net |
|
|
1,677 |
|
|
|
206 |
|
|
Total revenues |
|
|
3,600 |
|
|
|
1,995 |
|
Cost of revenues |
|
|
|
|
|
|
|
|
|
Cost
of orchards revenue |
|
|
1,444 |
|
|
|
1,460 |
|
|
Cost
of branded product sales |
|
|
1,288 |
|
|
|
269 |
|
|
Total
cost of revenues |
|
|
2,732 |
|
|
|
1,729 |
|
|
Gross
profit |
|
|
868 |
|
|
|
266 |
|
|
Selling, general and administrative expenses |
|
|
986 |
|
|
|
818 |
|
|
Operating loss |
|
|
(118 |
) |
|
|
(552 |
) |
Interest expense |
|
|
(166 |
) |
|
|
(144 |
) |
Interest and other income |
|
|
79 |
|
|
|
- |
|
(Loss) gain on disposition of property and
equipment |
|
|
(13 |
) |
|
|
83 |
|
|
Loss
before income taxes |
|
|
(218 |
) |
|
|
(613 |
) |
Income tax expense |
|
|
35 |
|
|
|
15 |
|
|
Net
loss |
|
|
(253 |
) |
|
|
(628 |
) |
|
|
|
|
|
|
|
|
|
Other comprehensive income, net of tax |
|
|
|
|
|
|
|
|
|
Amortization of prior service cost |
|
|
2 |
|
|
|
2 |
|
|
Amortization of actuarial loss |
|
|
- |
|
|
|
5 |
|
|
Defined benefit pension plan expense |
|
|
2 |
|
|
|
7 |
|
|
Other
comprehensive income, net of tax |
|
|
2 |
|
|
|
7 |
|
|
Comprehensive loss |
|
$ |
(251 |
) |
|
$ |
(621 |
) |
|
|
|
|
|
|
|
|
|
Net loss per Class A Unit |
|
$ |
(0.03 |
) |
|
$ |
(0.08 |
) |
|
|
|
|
|
|
|
|
|
Cash distributions per Class A Unit |
|
$ |
- |
|
|
$ |
0.02 |
|
|
|
|
|
|
|
|
|
|
Weighted average Class A Units outstanding |
|
|
9,660 |
|
|
|
7,500 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact: Scott C. Wallace President & CEO Telephone: (949)
661-6304, Ext 101
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