POSTED: 03:04 p.m. HST, Nov 01, 2010 LAST UPDATED: 04:54 p.m. HST, Nov 01, 2010
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.
You must be subscribed to participate in discussions
By participating in online discussions you acknowledge that you have agreed to the TERMS OF SERVICE. An insightful discussion of ideas and viewpoints is encouraged, but comments must be civil and in good taste, with no personal attacks. Because only subscribers are allowed to comment, we have your personal information and are able to contact you. If your comments are inappropriate, you may receive a warning, and if you persist with such comments you may be banned from posting. To report comments that you believe do not follow our guidelines, email email@example.com.