KAPALUA – Financial challenges facing Maui Land & Pineapple Co. are raising a “substantial doubt about the company’s ability to continue as a going concern,” the company reports in its latest filing with the U.S. Securities & Exchange Commission.
Among a number of disclosures in the filing, a group of lenders has declared that a $280.5 million loan for the Kapalua Bay Holdings’ construction of the The Ritz-Carlton Club and Residences, Kapalua Bay is in default. ML&P has invested more than $50 million in cash and $25 million in land for the development project and has 51 percent ownership in the Bay Holdings company.
“The company’s cash outlook for the next 12 months and its ability to continue to meet its financial covenants is highly dependent on selling certain real estate assets in a difficult market,” the filing says. “If the company is unable to meet its financial covenants resulting in the borrowings becoming immediately due, the company would not have sufficient liquidity to repay such outstanding borrowings.”
While the company’s future appears ominous in its SEC filing, Tim Esaki, the company’s financial officer, said Friday that company officials “remain optimistic.”
Item 1.01 Entry into a Material Definitive Agreement.
On February 23, 2011, Maui Land & Pineapple Company, Inc. (the “Company”) entered into a Third Modification Agreement (the “Third Modification”) with Wells Fargo Bank, National Association (“Wells Fargo”). The Third Modification further amended the terms of the Company’s $30 million revolving line of credit agreement with Wells Fargo, which was modified on December 22, 2010. Significant terms of the Third Modification are as follows:
* Extends the maturity date from May 1, 2012 to May 1, 2013.
* Provides the Company with the option to further extend the maturity date to May 1, 2014, subject to the satisfactory achievement of certain pre-defined conditions as described in the Third Modification.
* Increases the revolving credit commitment from $30 million to $34.5 million and availability under the loan facility from $25 million to $34.5 million.
* Sets forth pre-established minimum release prices for each of the real property parcels pledged as collateral under the credit agreement.
Upon entry into the Third Modification, the maturity date of the Company’s $25 million term loan with American AgCredit, FLCA was automatically extended from May 1, 2012 to May 1, 2013.
The owner of the two Kapalua Resort golf courses on Maui won’t retain Maui Land & Pineapple Co. to manage the facilities after March 31.
Maui Land notified employees last week that they may be terminated as part of the change, though Maui Land said in a statement today that it hasn’t determined how many employees will lose their jobs.
Troon Golf of Scottsdale, Ariz., will assume management of the Kapalua Bay Golf Course and Plantation Course.
Maui Land, in an effort to raise cash and pay down debt, sold both courses over the last two years to an affiliate of Japan-based retailer Fast Retailing Co. Ltd. with agreements to lease back and manage the properties until March 31
(NYSE:MLP) Maui Land & Pineapple Company, Inc. belonging to Real Estate Development industry is currently trading at a price of $4.98, a dramatic change of 9.69% from its previous day’s close. MLP is currently trading at a volume of 55377 shares compared to its daily average volume of 16.79K shares. The stock is trading with a gain of 10.67% from its open . Maui Land & Pineapple Company, Inc. has done quite well being up more than 19.14% since the beginning of the week and has a market capital of approximately 93.42M. Maui Land & Pineapple Company, Inc. engages in the resort and community development businesses. The companys Community Development segment provides real estate entitlement, development, construction, sales, leasing, real estate brokerage, and water and sewage transmission services. It leases commercial and residential properties; and provides license and lease arrangements for the use of buildings, facilities, land, and trade names. Maui Land & Pineapple Companys Resort segment operates 2 championship golf courses, a tennis facility, a spa, retail outlets, a hotel, residences and clubs, a bay, 8 residential neighborhoods, a commercial space, and restaurants, as well as approximately 700 single-family residential lots, condominiums, and homes. The company was founded in 1909 and is based in Maui, Hawaii
Below are the top 10 best-performing Leisure Services stocks for the past week. One Chinese company (LONG) is on the list.
Maui Land & Pineapple Co. (NYSE:MLP) is the 1st best-performing stock last week in this segment of the market. It was up 19.14% for the past week. Its price percentage change is -10.27% year-to-date.
Shares of Maui Land & Pineapple Co Inc (NYSE: MLP) closed above its 200-day moving average on Friday. The stock has a 200-day moving average of $4.50 and last traded at $4.95.
Maui Land & Pineapple Company, Inc. consists of a landholding and operating parent company and its principal subsidiaries, including Maui Pineapple Company, Ltd. (MPC) and Kapalua Land Company, Ltd. As of March 29, 2010, the Company operated in two segments: Community Development and Resort. Revenues from its two segments, Community Development segment and Resort segment accounted for approximately 39% and 59% of its consolidated revenues respectively during the year ended December 31, 2009. On November 2, 2009, the Company ceased its agriculture operations.
Maui Land & Pineapple Co Inc (NYSE: MLP) traded up 10.13% during mid-day trading on Friday. The stock has a 52 week low of $2.05 and a 52 week high of $8.20. The company has a market cap of $93.8 million and a price-to-earnings ratio of N/A.
Maui Land & Pineapple Co. booked its first quarterly profit in two years, during the three months ended Sept. 30, though the achievement was due to recognizing a previously deferred gain from the sale of a golf course last year.
The owner of Kapalua Resort earned $20 million in the third quarter, which contrasted with a $25.5 million net loss in the same period last year.
The gain ended a string of losses that amounted to $210 million over the previous eight quarters for the Lahaina-based company.
But the turnaround in earnings was the result of Maui Land booking a $25.7 million gain from the March 2009 sale of its Plantation Golf Course.
Fundamental operations — running Kapalua Resort and developing and selling real estate around the West Maui resort — continued to be a drag on earnings.
Tim Esaki, Maui Land’s chief financial officer, said in a statement that the company continues to make progress streamlining operations and strengthening its financial position.
“While we still need to work through a number of challenges, we have a sound business plan and a solid team that is focused on building shareholder value,” he said.
Excluding the contribution from the golf course sale, Maui Land’s resort division had an operating loss of $2.2 million in the third quarter, which was an improvement from a $3.4 million operating loss in the same period a year earlier. The company’s real estate development division had an operating loss of $499,000 in the third quarter, an improvement from a $16.2 million operating loss a year earlier.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Overview of the Company
MAUI LAND & Pineapple Company, Inc. is a Hawaii corporation and the successor to a business organized in 1909. We are a landholding company. Our principal subsidiary is Kapalua Land Company, Ltd., the operator and developer of Kapalua Resort, a master-planned community in West Maui. Our reportable operating segments are Resort and Community Development. In December 2009, all of our Agriculture segment operations were ceased and the segment is reported as discontinued operations.
BY RON YOUNGBLOOD
Doug Schenk met the visitors with the kind of smile that radiates from a father showing off his newborn. In the background, Hali’imaile Pineapple Co. employees ate lunch after polishing off the morning’s work two hours ahead of schedule.
At the door of the old parts warehouse, two men who look younger than their years stood in dirty boots and T-shirts.
“These are the guys who run the operation,” Schenk said with affection. The company president is Darren Strand. Rudy Balala is the vice president. They are also partners in the farm, along with Schenk and Doug MacCluer. All are Maui Land & Pineapple Co. veterans. The other partners are Pardee Erdman and Ed Chenchin.
The aroma of plate lunches wafted out of the tin-sided warehouse. In the back of the picnic tables there’s a conference table.
“We meet every Monday to decide that week’s goals,” Strand said.
“All of our employees asked to come to work for Hali’imaile,” Schenk said. All were part of the work force when Maui Pine closed down Dec. 31, 2009. “We were still working out the details (of leasing ML&P equipment and fields) on the last day of the year. We took New Year’s Day off and were on the job the next day.”
“We’ve got the greatest people in the world,” Schenk said. “There’s no division of labor. Everyone does everything.”