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
The past few years have brought a sea change in the way applications are architected, developed, and consumed—increasing both the complexity of testing and the business impact of software failures. How can software testing professionals keep pace with modern application delivery, given the trends that impact both architectures (cloud, microservices, and APIs) and processes (DevOps, agile, and continuous delivery)? This is where continuous testing comes in. D
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
The “Digital Era” is forcing us to engage with new methods to build, operate and maintain applications. This transformation also implies an evolution to more and more intelligent applications to better engage with the customers, while creating significant market differentiators. In both cases, the cloud has become a key enabler to embrace this digital revolution. So, moving to the cloud is no longer the question; the new questions are HOW and WHEN. To make this equation even more complex, most ...
In his session at 21st Cloud Expo, Raju Shreewastava, founder of Big Data Trunk, provided a fun and simple way to introduce Machine Leaning to anyone and everyone. He solved a machine learning problem and demonstrated an easy way to be able to do machine learning without even coding. Raju Shreewastava is the founder of Big Data Trunk (www.BigDataTrunk.com), a Big Data Training and consulting firm with offices in the United States. He previously led the data warehouse/business intelligence and B...
Blockchain is a shared, secure record of exchange that establishes trust, accountability and transparency across business networks. Supported by the Linux Foundation's open source, open-standards based Hyperledger Project, Blockchain has the potential to improve regulatory compliance, reduce cost as well as advance trade. Are you curious about how Blockchain is built for business? In her session at 21st Cloud Expo, René Bostic, Technical VP of the IBM Cloud Unit in North America, discussed the b...
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone in...
With tough new regulations coming to Europe on data privacy in May 2018, Calligo will explain why in reality the effect is global and transforms how you consider critical data. EU GDPR fundamentally rewrites the rules for cloud, Big Data and IoT. In his session at 21st Cloud Expo, Adam Ryan, Vice President and General Manager EMEA at Calligo, examined the regulations and provided insight on how it affects technology, challenges the established rules and will usher in new levels of diligence arou...
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: imple...
Nordstrom is transforming the way that they do business and the cloud is the key to enabling speed and hyper personalized customer experiences. In his session at 21st Cloud Expo, Ken Schow, VP of Engineering at Nordstrom, discussed some of the key learnings and common pitfalls of large enterprises moving to the cloud. This includes strategies around choosing a cloud provider(s), architecture, and lessons learned. In addition, he covered some of the best practices for structured team migration an...
The 22nd International Cloud Expo | 1st DXWorld Expo has announced that its Call for Papers is open. Cloud Expo | DXWorld Expo, to be held June 5-7, 2018, at the Javits Center in New York, NY, brings together Cloud Computing, Digital Transformation, Big Data, Internet of Things, DevOps, Machine Learning and WebRTC to one location. With cloud computing driving a higher percentage of enterprise IT budgets every year, it becomes increasingly important to plant your flag in this fast-expanding busin...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.
Modern software design has fundamentally changed how we manage applications, causing many to turn to containers as the new virtual machine for resource management. As container adoption grows beyond stateless applications to stateful workloads, the need for persistent storage is foundational - something customers routinely cite as a top pain point. In his session at @DevOpsSummit at 21st Cloud Expo, Bill Borsari, Head of Systems Engineering at Datera, explored how organizations can reap the bene...