ML&P Earns Profit By Selling Land, Reducing Pension Benefits

By Sonia Isotov

The Maui Land & Pineapple Company, Inc. (ML&P) reported profits of $24.8 million in 2010, reversing a net loss of $123 million the previous year, according to a statement released by the company yesterday.

ML&P profits were achieved in 2010 primarily due to the receipt of a $26.7 million gain deferred from the March 2009 sale of the Kapalua Plantation Golf Course, $16.6 million of gains resulting from the termination of pension plans in 2010, a $47.2 million loss from the Bay Holdings investment in 2009 and $14.2 million in impairment charges in 2009.

“While significant challenges remain, we are grateful for the support of our shareholders, creditors, and the community, as we move ahead with our new business model,” said a company spokesperson.

For the fourth quarter 2010 alone, the Company reported net income of $12 million which compared to a net loss of $30.4 million for the fourth quarter of 2009 was a significant increase for the quarter, and the second consecutive quarter profits were realized.

The Kapalua Villas. Courtesy Photo.

During 2010, the Company used much of the profit to reduce its outstanding long-term debt from $94.2 million to $45.2 million and extended the maturity date on the Company’s remaining credit from March 2011 to May 2012. In February 2011, the maturity date of the Company’s credit was further extended to May 2013.

“MLP’s financial results showed continued improvement during 2010 as we strengthened our balance sheet, reduced our overhead costs and resolved several significant legacy obligations,” stated Warren H. Haruki, chairman and interim CEO. “While significant challenges remain, we are grateful for the support of our shareholders, creditors, and the community, as we move ahead with our new business model.”

Maui Land & Pineapple Company, Inc., organized in 1909, owns approximately 23,000 acres of land on Maui, which includes its master-planned resort community property, the Kapalua Resort, which encompasses 1,650 acre alone.