SOURCE: Royal Hawaiian Orchards, L. P.

Royal Hawaiian Orchards, L. P.

August 14, 2014 14:16 ET

Royal Hawaiian Orchards, L.P. Reports Results for Second Quarter 2014

HILO, HI--(Marketwired - Aug 14, 2014) -  Royal Hawaiian Orchards, L.P. (OTCQX: NNUTU) today reported financial results for its second quarter of 2014. 

   
Condensed Consolidated Statements of Comprehensive Loss (unaudited)  
(in thousands, except per unit data)  
                         
    Three months     Six months  
    ended June 30,     ended June 30,  
    2014     2013     2014     2013  
Revenues                                
  Orchards revenue   $ 332     $ 286     $ 2,255     $ 2,075  
  Branded product sales, net     2,100       261       3,777       467  
    Total revenues     2,432       547       6,032       2,542  
Cost of revenues                                
  Cost of orchard revenue     623       266       2,067       1,726  
  Cost of branded product sales     1,796       352       3,084       621  
    Total cost of goods and services sold     2,419       618       5,151       2,347  
    Gross profit (loss)     13       (71 )     881       195  
  Selling, general and administrative expenses     1,042       1,042       2,028       1,860  
    Operating loss     (1,029 )     (1,113 )     (1,147 )     (1,665 )
Net (loss) gain on sale of property     (1,857 )     -       (1,870 )     83  
Interest expense     (113 )     (141 )     (279 )     (285 )
Other income     1       106       80       106  
    Loss before income taxes     (2,998 )     (1,148 )     (3,216 )     (1,761 )
Income tax (benefit) expense     (19 )     3       16       18  
    Net loss     (2,979 )     (1,151 )     (3,232 )     (1,779 )
                                 
Other comprehensive income, net of tax                                
    Amortization of prior service cost     1       1       3       3  
    Amortization of actuarial loss     -       6       -       11  
    Subtotal defined benefit pension plan     1       7       3       14  
      Other comprehensive income, net of tax     1       7       3       14  
      Comprehensive loss   $ (2,978 )   $ (1,144 )   $ (3,229 )   $ (1,765 )
                                 
                                 
Net loss per Class A Unit   $ (0.27 )   $ (0.15 )   $ (0.31 )   $ (0.24 )
Cash distributions per Class A Unit   $ -     $ -     $ -     $ 0.02  
Weighted average Class A Units outstanding     11,100       7,500       10,384       7,500  
                                 

The results of operations for the three and six months ended June 30, 2014 are not comparable to prior years' results, as the Partnership retained a significantly larger portion of its macadamia nuts for manufacture into its branded products or for sale in bulk kernel form following the expiration of certain macadamia nut purchase contracts with Mauna Loa. Additionally, on June 30, 2014, the Partnership terminated its lease on its Mauna Kea orchard and sold its trees to the landlord for consideration of $1.5 million, triggering a non-cash loss of $1.8 million on the transaction. The increase in net revenues for the period was attributable primarily to an increase in branded product sales over the same period in 2013.

The Partnership is one of the leading growers and processors of macadamia nuts in the world, processing and marketing macadamia nuts in-shell, in bulk kernel form and as better for you snack products marketed under the Royal Hawaiian Orchards® brand name.

Contact Information

  • Contact:
    Scott C. Wallace
    President & CEO
    Telephone: (949) 661-6304, Ext 101