PR Newswire
HONOLULU, Hawaii, May 5, 2016
HONOLULU, Hawaii, May 5, 2016 /PRNewswire/ -- Alexander & Baldwin, Inc. (NYSE: ALEX) ("A&B" or "Company") today announced its financial results for the three months ended March 31, 2016.
"We are very pleased with the performance of our commercial assets during the quarter and the progress we're making in repositioning the portfolio. Leasing Net Operating Income (NOI) was up 7.2% to $22.4 million1, while occupancy remained high at 94%. More importantly, we advanced the migration and expansion of our commercial assets through both the January acquisition of the 139,300-square-foot Manoa Marketplace—the second largest grocery-anchored center in urban Honolulu—and the continued identification and execution of growth opportunities in our existing Hawaii assets," said Chris Benjamin, A&B president & CEO. "A lull in real estate sales during the quarter resulted in an operating loss from our Development business, but we look forward to stronger sales later in the year, particularly the closings of units at The Collection in the fourth quarter. Our Materials & Construction segment continues to perform well, generating EBITDA in the quarter of $10.4 million1, and its outlook remains positive due to a healthy paving backlog. Notwithstanding the significant book losses related to the cessation of sugar operations, the final harvest is progressing on schedule and we continue to expect that the cessation will be neutral from a cash perspective. Additionally, we're advancing our crop trials and diversified agriculture research."
Quarter Highlights & Recent Activity
Commercial Portfolio
Development/Sales
Materials & Construction
Agribusiness
Financial/Other
Financial Performance
The Company reported a net loss for the first quarter of 2016 of $7.5 million, or $0.15 per diluted share, which included a $10.3 million after-tax loss from the Agribusiness segment, or $0.21 per diluted share, principally related to the previously disclosed cessation of sugar operations at Hawaiian Commercial & Sugar Company (HC&S). Earnings for the first quarter of 2015 were $25.3 million, or $0.51 per diluted share, and included positive after-tax earnings from the Agribusiness segment of $1.2 million, or $0.02 per diluted share. Excluding the Agribusiness impact, the largest negative variance in the quarter-over-quarter comparison relates to the first quarter 2015 closing of 328 units at the Waihonua condominium joint venture project.
Revenue for the first quarter of 2016 was $108.8 million, compared to revenue of $150.7 million for the first quarter of last year. Revenue declined due to fewer development sales, a decrease in asphalt prices and lower Agribusiness revenue due to lower sugar deliveries and power sales.
Segment results:
Corporate finance and other:
Operating Performance
The Company furthered its strategy of increasing recurring income streams by expanding its Hawaii commercial portfolio and pursuing growth opportunities within its existing portfolio.
In Development & Sales, The Collection is progressing on schedule for closings in the fourth quarter, while presales at the Company's 70-unit Keala o Wailea project, located at the Wailea Resort on Maui, have been positive. To date, 38 units have been presold under binding contract at an average price of $1.2 million. Site construction has commenced and the Company expects to begin delivering units in mid-2017. Also on Maui, presales of the first 170 units were launched in late April at Kamalani, a 630-unit master planned residential community on 95 acres in Kihei. These homes are affordably priced, beginning in the high $200,000s for a 2-bedroom home and in the mid-$300,000s for a 3-bedroom home, and are expected to be delivered in late 2017.
The Materials & Construction segment produced $10.4 million1 of EBITDA in the first quarter of 2016, compared to $9.5 million1 of EBITDA in the first quarter of 2015, primarily due to increased material sales, increased tons paved and quarrying efficiency gains. The segment's outlook continues to be positive with $226.7 million2 of construction backlog at the end of the first quarter, compared to $206.1 million2 at the end of the first quarter of 2015, and $226.5 million2 at the end of 2015.
In Agribusiness, the final sugar harvest began in March and is progressing well so far. The Company's previous full-year guidance regarding expected operating and sugar cessation book losses and the expectation that the cessation of sugar will be a cash neutral event remains unchanged. Several crop and cattle grazing trials are advancing, as is planning for the post-sugar diversified agriculture model.
In March, the Company agreed to invest $13.5 million in two solar facilities located in Mililani, Oahu totaling 6.5 megawatts. The facilities are expected to be placed in service in mid-2016 and will expand the Company's renewable energy portfolio to Oahu.
ALEXANDER & BALDWIN, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||
CONDENSED INDUSTRY SEGMENT DATA, NET INCOME (LOSS) | ||||||||||||||||||||||||||||||||||||||
(In Millions, Except Per Share Amounts, Unaudited) | ||||||||||||||||||||||||||||||||||||||
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| Three Months Ended | |||||||||||||||||||||||||||||||||||||
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Revenue: | 2016 | | 2015 | |||||||||||||||||||||||||||||||||||
Real Estate: | | | | |||||||||||||||||||||||||||||||||||
Leasing | $ | 34.8 | | $ | 32.7 | |||||||||||||||||||||||||||||||||
Development & Sales | 0.3 | | | 36.5 | ||||||||||||||||||||||||||||||||||
Reconciling item3 | — | | | (4.3) | ||||||||||||||||||||||||||||||||||
Materials & Construction | 50.7 | | | 56.9 | ||||||||||||||||||||||||||||||||||
Agribusiness | 23.0 | | | 28.9 | ||||||||||||||||||||||||||||||||||
Total revenue | $ | 108.8 | | $ | 150.7 | |||||||||||||||||||||||||||||||||
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Operating Profit (Loss): | | | | |||||||||||||||||||||||||||||||||||
Real Estate: | | | | |||||||||||||||||||||||||||||||||||
Leasing | $ | 14.1 | | $ | 13.2 | |||||||||||||||||||||||||||||||||
Development & Sales | (3.8) | | | 32.0 | ||||||||||||||||||||||||||||||||||
Materials & Construction | 8.0 | | | 7.2 | ||||||||||||||||||||||||||||||||||
Agribusiness: | | | | |||||||||||||||||||||||||||||||||||
Agribusiness operations | 1.2 | | | 1.9 | ||||||||||||||||||||||||||||||||||
HC&S cessation costs | (15.5) | | | — | ||||||||||||||||||||||||||||||||||
Total operating profit | 4.0 | | | 54.3 | ||||||||||||||||||||||||||||||||||
Interest expense | (6.9) | | | (7.1) | ||||||||||||||||||||||||||||||||||
General corporate expenses | (6.8) | | | (5.6) | ||||||||||||||||||||||||||||||||||
Reduction in KRS II carrying value | — | | | (0.1) | ||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (9.7) | | | 41.5 | ||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | (2.7) | | | 15.6 | ||||||||||||||||||||||||||||||||||
Net income (loss) | (7.0) | | | 25.9 | ||||||||||||||||||||||||||||||||||
Income attributable to noncontrolling interest | (0.5) | | | (0.6) | ||||||||||||||||||||||||||||||||||
Net income (loss) attributable to A&B shareholders | $ | (7.5) | | $ | 25.3 Werbung Mehr Nachrichten zur Alexander & Baldwin Aktie kostenlos abonnieren
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