Welcome!

News Feed Item

Royal Hawaiian Orchards, L.P. Reports 2013 Operating Results

HILO, HI -- (Marketwired) -- 03/28/14 -- Royal Hawaiian Orchards, L.P. (OTCQX: NNUTU) today reported a net loss of $3.7 million, or ($0.49) per Class A Unit for the year ended 2013 on revenues of $13.9 million as compared to a net loss of $499,000, or ($0.07) per Class A Unit on revenues of $20.1 million for the year ended 2012. The loss in 2013 was attributable to: 1) the poor crop, which was the second lowest harvest in the past 20 years, resulting in a 21% decrease, or 5.8 million fewer wet-in-shell ("WIS") pounds than in 2012; 2) reduction of sales of WIS pounds sold by the Partnership in order to build inventory for branded product sales in 2014; and 3) the increase in selling, general and administrative costs of our branded product segment as we seek to invest in that segment and grow revenues.

In 2013, the Partnership produced 21.7 million WIS pounds compared to 27.5 million WIS pounds in 2012. The lower 2013 production resulted from inadequate rainfall in Ka´u during key nut development stages; the impact of the Macadamia Felted Coccid, which has reduced our 2013 WIS production by an estimated 500,000 pounds, as compared to 2012; and the acceleration of our 2012 fourth quarter harvest, which contributed to lower harvest levels in 2013. The lower 2013 production resulted in a WIS cost per pound of $0.61 compared to $0.53 in 2012.

Macadamia nut sales were $9.9 million in 2013 compared to sales of $18.0 million in 2012. The decrease in sales was due to lower production and the Partnership retaining 6.1 million WIS pounds for the expansion of its Royal Hawaiian Orchards® macadamia snack products. This retail expansion will require that the Partnership hold macadamias as kernel in inventory to support year round sales. The effect of holding inventory previously sold as WIS is a reduction in macadamia nut sales and an increase in inventory. The inventory will not generate revenues until the branded products are sold, which could be three to nine months after the Partnership would typically have generated revenues selling WIS nuts. In 2014, approximately 13.0 million WIS pounds will be retained and used by the Partnership for the manufacturing of its macadamia snack products. 2013 branded product sales increased to $2.1 million as compared to $91,000 in 2012, which are reported net of trade discounts and new product distribution expenses. The Partnership estimates that Royal Hawaiian Orchards® products are now distributed in 3,000 retail stores in the continental U.S. and Hawaii and expects to be in 10,000 stores by the end of 2014. The Partnership expects a year-to-year reduction in sales until kernel held in inventory is sold and branded sales meet or exceed current macadamia nut sales, the timing of which is unknown. For this reason, the Partnership believes its results going forward will not be comparable to prior years.

In order to fully implement its branded products strategy, in February 2014, the Partnership completed its subscription rights offering and raised proceeds of $8.9 million, after deducting expenses, which will be used over the next two years to build raw materials and finished goods inventories; extend the revenue cycle of harvested macadamias and extend credit to our customers; to repay indebtedness incurred to fund working capital needs; to fund promotional allowances, including slotting fees charged by food retailers in order to have our product placed on their shelves; and for general partnership purposes.

As the Partnership expands its sales in its branded segment, it intends to convert more macadamia nuts previously sold as WIS into inventory and, it will incur additional new product distribution costs. While this inventory build and investment in retail shelf space will negatively impact near term financial performance, the Partnership believes that the benefits it will enjoy from its branded business will more than offset these short term costs.

For the fourth quarter 2013, the Partnership incurred a net loss of $674,000 on revenues of $6.9 million compared to a net income of $10,000 on revenues of $9.6 million for the fourth quarter 2012. The net loss in the fourth quarter 2013 was mainly attributable to 17.8% or 2.4 million fewer WIS pounds produced in the fourth quarter 2013 and the higher cost per WIS pound, compared to the same period in 2012.

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, among others, statements regarding the potential market for our Royal Hawaiian Orchards® products, expansion and future sales of our branded segment, the benefits of investing in the branded product segment, use of nut-in-shell inventories, use of net proceeds from the rights offering and nut forecasts, which statements 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.

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.



                       Royal Hawaiian Orchards, L.P.
     Consolidated Statements of Comprehensive Income (Loss) (unaudited)
                    (in thousands, except per unit data)

                                        Three months          Full year
                                     ended December 31,  ended December 31,
                                     ------------------  ------------------
                                       2013      2012      2013      2012
                                     --------  --------  --------  --------

Macadamia nut sales                  $  5,111  $  8,993  $  9,916  $ 18,043
Contract farming revenue                  634       502     1,865     1,973
Branded product sales                   1,167        91     2,072        91
                                     --------  --------  --------  --------
  Total revenues                        6,912     9,586    13,853    20,107
                                     --------  --------  --------  --------
Cost of goods and services sold
  Cost of macadamia nut sales           4,903     7,659     9,517    14,586
  Cost of contract farming services       587       465     1,743     1,841
  Cost of branded product sales           971        84     1,942        84
                                     --------  --------  --------  --------
    Total cost of goods and services
     sold                               6,461     8,208    13,202    16,511
                                     --------  --------  --------  --------
    Gross income                          451     1,378       651     3,596
Selling, general and administrative
 expenses                                 919     1,179     3,831     3,550
                                     --------  --------  --------  --------
    Operating income (loss)              (468)      199    (3,180)       46
Interest expense                         (182)     (176)     (636)     (664)
Interest and other income                   -        35       191       245
                                     --------  --------  --------  --------
    Income (loss) before income
     taxes                               (650)       58    (3,625)     (373)
Income tax expense                        (24)      (48)      (45)     (126)
                                     --------  --------  --------  --------
    Net income (loss)                    (674)       10    (3,670)     (499)

Other comprehensive income (loss),
 net of tax
    Amortization of prior service
     cost                                   2         1         7         7
    Amortization of actuarial loss        379       (55)      395       (43)
                                     --------  --------  --------  --------
    Defined benefit pension plan          381       (54)      402       (36)
                                     --------  --------  --------  --------
      Other comprehensive income
       (loss), net of tax                 381       (54)      402       (36)
                                     --------  --------  --------  --------
      Comprehensive loss             $   (293) $    (44) $ (3,268) $   (535)
                                     ========  ========  ========  ========

----------------------------------------------------------------------------

Net income (loss) per Class A Unit   $  (0.09) $   0.00  $  (0.49) $  (0.07)
                                     ========  ========  ========  ========

Cash distributions per Class A Unit  $      -  $      -  $   0.02  $      -
                                     ========  ========  ========  ========

Class A Units outstanding               7,500     7,500     7,500     7,500
                                     ========  ========  ========  ========

----------------------------------------------------------------------------

Contact:
Scott Wallace
President
Telephone: (949) 661-6304

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, will discuss the importance of WebRTC and how it enables companies to fo...
As machines are increasingly connected to the internet, it’s becoming easier to discover the numerous ways Industrial IoT (IIoT) is helping to shape the business world. This is exactly why we have decided to take a closer look at this pervasive movement and to examine the desire to connect more things! Now if you need a refresher on IIoT and how it is changing the world, take a moment and listen to Greg Gorbach with ARC Advisory Group. Gorbach believes, "IIoT will significantly change the worl...
SYS-CON Events announced today the Docker Meets Kubernetes – Intro into the Kubernetes World, being held June 9, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Register for 'Docker Meets Kubernetes Workshop' Here! This workshop led by Sebastian Scheele, co-founder of Loodse, introduces participants to Kubernetes (container orchestration). Through a combination of instructor-led presentations, demonstrations, and hands-on labs, participants learn ...
The IoT is changing the way enterprises conduct business. In his session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, discuss how businesses can gain an edge over competitors by empowering consumers to take control through IoT. We'll cite examples such as a Washington, D.C.-based sports club that leveraged IoT and the cloud to develop a comprehensive booking system. He'll also highlight how IoT can revitalize and restore outdated business models, making them profitable...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
In his session at 18th Cloud Expo, Andrew Cole, Director of Solutions Engineering at Peak 10, will discuss how the newest technology advances are reducing the cost and complexity of traditional business continuity and disaster recovery solutions. Attendees will: Learn why having a full disaster recovery strategy is more important now than ever before Explore the key drivers of a successful disaster recovery solution Achieve measurable operational and business value from a disaster recovery ...
SYS-CON Events announced today the How to Create Angular 2 Clients for the Cloud Workshop, being held June 7, 2016, in conjunction with 18th Cloud Expo | @ThingsExpo, at the Javits Center in New York, NY. Angular 2 is a complete re-write of the popular framework AngularJS. Programming in Angular 2 is greatly simplified. Now it’s a component-based well-performing framework. The immersive one-day workshop led by Yakov Fain, a Java Champion and a co-founder of the IT consultancy Farata Systems and...
How will your company move to the cloud while ensuring a solid security posture? Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is ...
SYS-CON Events announced today that Hanu Software will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Leveraging best-in-class people, processes, and technologies, Hanu provides high-quality, high-value software development and business process outsourcing services to independent software vendors (ISVs) and enterprises.
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.