Maui Land & Pineapple Co. remains in asset-sale mode, trying to sell land to help keep the company solvent.
The Kapalua-based firm on Wednesday reported a third-quarter net loss of $1.6 million, and on Thursday reminded investors that it remains "highly dependent" on selling real estate assets and refinancing debt.
Maui Land also disclosed Thursday that its stock no longer meets compliance standards for being listed on the New York Stock Exchange, though the company will have 18 months to regain compliance.
The Thursday disclosures were made in a quarterly report filed with the Securities and Exchange Commission regulating companies with publicly traded stock.
In its earnings announcement Wednesday, Maui Land said revenue rose to $3.6 million in the third quarter from $3.4 million in the same period last year. But expenses also rose, and the result was a bigger loss: $1.6 million, or 9 cents a share, compared with $1.3 million, or 7 cents a share, a year earlier.
Maui Land’s revenue primarily comes from leasing land, real estate sales, operating amenities at Kapalua Resort and running resort water and sewer utilities.
The company ceased growing pineapple in 2009, and has been plagued by losses and debt tied to its half interest in a partnership that developed the Residences at Kapalua Bay, a luxury residential project on the site of the former Kapalua Bay Hotel.
Maui Land owns about 23,400 acres on the Valley Isle, and through the last few years has relied on asset sales, including two golf courses, to avoid defaulting on its debt.
The company intends to sell 630 acres in Upcountry, and seven acres in Kahului that include part of its former pineapple cannery site.
The two properties are categorized as "assets held for sale," which means a sale is probable and the transfer of the asset is expected to be completed within a year.
Maui Land faces a maturity of about $48 million in debt in May, and said in the quarterly report that its finances are highly dependent on selling real estate in a difficult market and being able to refinance debt.
The company also is continuing efforts to lease more real estate and cut costs, it said in the report.
Shares of Maui Land stock rose 21 cents Thursday to $2.62 after the earnings announcement but before release of the quarterly report. Shares have rebounded in the last several days from a 52-week low of $1.90 on Oct. 17, following a steep decline from around $3.50 in August.
The recent trough for Maui Land stock put the company out of compliance with a requirement to maintain at least a $50 million value of total outstanding shares over 30 days. The NYSE notified Maui Land on Tuesday of the noncompliance.
Maui Land said it intends to submit a plan to the stock exchange for regaining compliance, which has to be achieved within 18 months under NYSE rules.
At Thursday’s stock price the value of all Maui Land shares was $49.2 million.
