ML Macadamia Orchards, L.P. Reports 3Q 2008 Results
November 07 2008 - 5:42PM
Business Wire
ML Macadamia Orchards, L.P. (NYSE:NUT), reported third-quarter 2008
net income of $886,000 or $0.12 per Class A Unit, on total revenues
of $5.8 million, as compared to a net loss of $436,000 or ($0.06)
per Class A Unit on $2.8 million in revenues for the same period
last year. �The third quarter of 2008 marked the return to
profitability for the Partnership as a good crop of nuts enabled us
to begin the harvest early and benefit from higher nut prices, as
well as from improved operating efficiencies,� said Dennis J.
Simonis, President and CEO. �With continued positive market
conditions, we anticipate improved results for the balance of
2008.� Results for the third quarter of 2008 also included a crop
insurance recovery of $886,000 for the production year ended June
30, 2008. Net cash flow for the third quarter of 2008 was $1.7
million as compared to $14,000 for the third quarter of 2007. Nut
revenues were $4.6 million for the three months ended September 30,
2008, compared to $2.0 million in the prior year. The third quarter
harvest was 6.8 million pounds or 64% higher than the quarter ended
September 30, 2007, and significantly better than the historical
average for this period. Farming service revenues were $1.2 million
or 46% higher than the third quarter of last year, due to the
timing of farming activities. For the first nine months of 2008,
revenues were $11.0 million with a net profit of $224,000 or $0.03
per Class A Unit. Total revenues in the first nine months of 2007
were $7.4 million with a net loss of $446,000, or ($0.06) per Class
A Unit. The Partnership is required to maintain market
capitalization of at least $25 million on a 30-trading-day average
to meet the continued listing criteria of the NYSE. At this time,
the market capitalization of the Partnership is less than that
amount and the Partnership expects to�receive�formal notice of a
decision to delist the Partnership's Depositary Receipts
(representing Class A Units of limited partners� interests) from
the NYSE. While the NYSE decision to delist the Depository Receipts
is subject to appeal, the Partnership believes that it would be in
the best interest of its unitholders not to contest this action.
Therefore, the Partnership is pursuing alternatives for
repositioning itself on another exchange. In the interim,
management is making arrangements for the securities to continue to
be traded through the Over The Counter Bulletin Board (OTCBB).
Forward-Looking Statements � 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) �
� � � Three months Nine months ended September 30, ended September
30, 2008 2007 2008 2007 � Macadamia nut sales $ 4,597 $ 1,979 $
8,215 $ 4,902 Contract farming revenue 1,164 � 797 � 2,793 � 2,464
� Total revenues 5,761 � 2,776 � 11,008 � 7,366 � Cost of goods and
services Costs of macadamia nut sales 4,101 1,546 7,538 3,720 Costs
of contract farming services 1,086 � 731 � 2,591 � 2,257 � Total
cost of goods sold 5,187 � 2,277 � 10,129 � 5,977 � Gross income
574 � 499 � 879 � 1,389 � General and administrative expenses Other
483 � 874 � 1,285 � 1,744 � Total general and administrative
expenses 483 � 874 � 1,285 � 1,744 � Operating income (loss) 91
(375 ) (406 ) (355 ) Other income (loss) 885 (1 ) 897 12 Interest
expense (84 ) (44 ) (250 ) (105 ) Interest income 14 � - � 14 � 49
� Income before tax 906 (420 ) 255 (399 ) Income tax expense 20 �
16 � 31 � 47 � Net income (loss) $ 886 � $ (436 ) $ 224 � $ (446 )
� � � � � � � � � � � � � � Net cash flow (as defined in the
Partnership Agreement) $ 1,665 � $ 14 � $ 1,309 � $ 73 � � � � � �
� � � � � � � � � Net loss per Class A Unit $ 0.12 � $ (0.06 ) $
0.03 � $ (0.06 ) � Net cash flow per Class A Unit $ 0.22 � $ 0.00 �
$ 0.17 � $ 0.01 � � Cash distributions per Class A Unit $ 0.00 � $
0.05 � $ 0.00 � $ 0.15 � � Class A Units outstanding 7,500 � 7,500
� 7,500 � 7,500 �
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