Attached files
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| 8-K - 8-K - ROYAL HAWAIIAN ORCHARDS, L.P. | a10-20770_18k.htm |
Exhibit 99.1
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For Immediate Release |
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Contact: Dennis J. Simonis |
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President & CEO |
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Monday, November 8, 2010 |
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Telephone: (808) 969-8052 |
ML MACADAMIA ORCHARDS, L.P.
REPORTS 3rd QUARTER 2010 EARNINGS
Hilo, Hawaii — ML Macadamia Orchards, L.P. (OTCQX: NNUT), reported a third quarter net loss of $308,000 or ($0.04) per Class A Unit, on total revenues of $4.7 million, as compared to a net loss of $42,000 or ($0.01) per Class A Unit on $5.7 million in revenues for the same period last year. The lower earnings are the result of lower nut production and costs associated with the acquisition of the IASCO orchards in August 2010. The lower production is attributable to drought conditions in the Ka’u orchards in the southern region of Hawaii. The third quarter reflects acquisition costs of $125,000, a write-off of goodwill in the amount of $306,000 and a bargain purchase gain of $120,000. Net cash flow for the third quarter of 2010 was $320,000 as compared to $645,000 for the third quarter of 2009.
Nut revenues were $4.1 million for the three months ended September 30, 2010, compared to $4.4 million in the prior year. The third quarter harvest was 5.4 million pounds or 14% lower than the quarter ended September 30, 2009 and overall production is expected to be down between 10-15% for the full year 2010. Farming service revenues included were $600,000 or 51% lower than the third quarter of last year, with IASCO farming revenue included for only the month of July 2010.
For the first nine months of 2010, revenues were $7.7 million with a net loss of $451,000 or ($0.06) per Class A Unit. Total revenues in the first nine months of 2009 were $9.7 million with a net profit of $99,000, or $0.01 per Class A Unit.
This press release contains forward-looking statements regarding future events and future performance of the Partnership that involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements. These include statements, among others, regarding the Partnership’s future nut prices and the outcome of legal action, which are based on certain assumptions and forecasts. The Partnership files documents with the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and Form 8-K reports, which contain a description of these and other risks and uncertainties that could cause actual results to differ from current expectations and the forward-looking statements contained in this press release.
ML Macadamia Orchards, L.P.
Consolidated Income Statements (unaudited)
(in thousands, except per unit data)
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Three months |
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Nine months |
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ended September 30, |
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Ended September 30, |
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2010 |
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2009 |
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2010 |
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2009 |
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Macadamia nut sales |
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$ |
4,087 |
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$ |
4,425 |
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$ |
5,259 |
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$ |
6,717 |
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Contract farming revenue |
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615 |
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1,266 |
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2,417 |
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2,970 |
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Total revenues |
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4,702 |
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5,691 |
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7,676 |
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9,687 |
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Cost of goods and services |
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Costs of macadamia nut sales |
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3,682 |
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4,112 |
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4,578 |
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5,892 |
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Costs of contract farming services |
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567 |
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1,143 |
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2,225 |
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2,684 |
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Total cost of goods sold |
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4,249 |
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5,255 |
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6,803 |
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8,576 |
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Gross income |
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453 |
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436 |
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873 |
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1,111 |
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Total general and administrative expenses |
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517 |
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583 |
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1,264 |
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1,404 |
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Operating income (loss) |
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(64 |
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(147 |
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(391 |
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(293 |
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Other income (loss) |
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(88 |
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157 |
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124 |
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498 |
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Interest expense |
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(140 |
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(42 |
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(153 |
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(72 |
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Interest income |
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— |
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5 |
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— |
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5 |
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Income before tax |
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(292 |
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(27 |
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(420 |
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138 |
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Income tax expense |
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16 |
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15 |
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31 |
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39 |
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Net income (loss) |
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$ |
(308 |
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$ |
(42 |
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$ |
(451 |
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$ |
99 |
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Net cash flow (as defined in the Partnership Agreement) |
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$ |
320 |
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$ |
645 |
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$ |
(509 |
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$ |
654 |
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Net income (loss) per Class A Unit |
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$ |
(0.04 |
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$ |
(0.01 |
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$ |
(0.06 |
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$ |
0.01 |
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Net cash flow per Class A Unit |
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$ |
0.04 |
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$ |
0.09 |
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$ |
(0.07 |
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$ |
0.09 |
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Cash distributions per Class A Unit |
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$ |
0.00 |
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$ |
0.00 |
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$ |
0.00 |
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$ |
0.00 |
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Class A Units outstanding |
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7,500 |
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7,500 |
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7,500 |
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7,500 |
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