Click here to close now.



Welcome!

News Feed Item

Royal Hawaiian Orchards, L.P. Reports First Quarter 2014 Results

HILO, HI -- (Marketwired) -- 05/14/14 -- Royal Hawaiian Orchards, L.P. (OTCQX: NNUTU) reported today a net loss of $253,000, or ($0.03) per weighted average Class A Unit for the first quarter of 2014 on revenues of $3.6 million compared to a net loss of $628,000 or ($0.08) per Class A Unit on revenues of $2.0 million for the same period in 2013. The increase in revenues was attributable to $1.5 million and $300,000 in branded product and wet-in-shell ("WIS") nut sales, respectively, over 2013, which was offset by a $200,000 decrease in contract farming revenue.

WIS sales for the quarter ended March 31, 2014 amounted to $1.7 million compared to $1.4 for the same period in 2013, which is attributable to increased WIS production sold of 218,000 pounds or 11% as compared to 2013. For the remainder of the year, management anticipates that WIS revenue will be lower than comparable prior year periods as the Partnership will retain 13 million WIS pounds for its Royal Hawaiian Orchards® macadamia snack products in 2014 as compared to it retaining 6.5 million WIS pounds in 2013. The production the Partnership keeps to build inventory levels will not generate revenues until the product is sold, which could be three to nine months after it typically would have generated revenues selling WIS nuts. Branded products net revenue amounted to $1.7 million for the three months ended March 31, 2014, compared to $200,000 for the same period in 2013. Revenue growth resulted from bulk kernel sales of $1.4 million, representing 76% of branded product gross sales for the three month period ended March 31, 2014. Topline growth will be driven by increased penetration into mainstream grocery and mass merchandiser channels, improved product placement in stores and eventually the introduction of new products in the Partnership's key category. The Partnership intends to aggressively increase the amount it spends on slotting fees in 2014 and anticipates those and other promotional activities will continue to impact its net sales and that changes in such activities will continue to impact period-over period results. The decrease in contract farming revenue resulted from no harvest activity performed at its Keaau and Mauna Kea orchards during the first quarter of 2014. In contrast, a longer than normal harvest season for the 2012 - 2013 crop year at its Keaau and Mauna Kea orchards, extended the harvest into the first quarter of 2013, generating contract farming revenue for those services.

The Partnership's gross profit margin amounted to 24% for the three months ended March 31, 2014 as compared to 13% in the same period last year. The increase was the result of the Partnership harvesting 904,000 pounds more from its IASCO orchards, which is subject to a 27% higher selling price than the nuts sold under its non-IASCO nut purchase contract with Mauna Loa. In addition, the gross profit margin on farming contracts increased five percentage points. For the three month period ended March 31, 2014, branded products segment gross profit increased $452,000 over the same period in 2013. The increase was attributable to increased sales and lower product costs. Utilizing its own kernel resulted in cost reductions of approximately 23% as compared to kernel purchased from third parties. In addition, slotting fees and promotional discounts as a percentage of net revenue was substantially lower for the three month period ended March 31, 2014, as compared to the same period in 2013.

On February 6, 2014, the Partnership completed its subscription rights offering and raised $8.9 million after deducting expenses. This will allow the Partnership to: fully implement its branded product strategy of building raw materials and finished goods inventory; extend the revenue cycle of harvested macadamias; extend credit to its customers; repay indebtedness incurred to fund working capital needs; fund promotional allowances, including slotting fees charged by food retailers in order to have its product placed on their shelves; and fund general partnership purposes. The Partnership expects to be in 10,000 stores by end of 2014.

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 amount of kernel produced in the Partnership's orchards segment that will be used in its branded products, use of net proceeds from the rights offering, increase in expenditures of slotting fees and other promotional activities, anticipated revenues and placement of products in stores by end of 2014. Factors that could cause the Partnership's actual results to differ materially from the results contemplated by such forward-looking statements include: world market conditions relating to macadamia nuts; the weather and local conditions in Hawaii affecting macadamia nut production; regulatory environment, requirements or changes; general economic conditions; the Partnership's ability to retain and attract skilled employees; the Partnership's success in finding purchasers for its macadamia nut production at acceptable prices; increasing competition in the snack food market; the availability of and the Partnership's ability to negotiate acceptable agreements with third parties that are necessary for its business; market acceptance of the Partnership's products in the branded segment; the availability and cost of raw materials; and other factors discussed in the Risk Factors section of the Partnership's Annual Report on Form 10-K for the year ended December 31, 2013. The Partnership undertakes no obligation to publicly correct or update the forward-looking statements in this press release to reflect future events or circumstances.

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.
    Condensed Consolidated Statements of Comprehensive Loss (unaudited)
                    (in thousands, except per unit data)

                                                            Three months
                                                           ended March 31,
                                                         ------------------
                                                           2014      2013
                                                         --------  --------
Orchards revenue                                         $  1,923  $  1,789
Branded product sales, net                                  1,677       206
                                                         --------  --------
   Total revenues                                           3,600     1,995
                                                         --------  --------
Cost of revenues
  Cost of orchards revenue                                  1,444     1,460
  Cost of branded product sales                             1,288       269
                                                         --------  --------
  Total cost of revenues                                    2,732     1,729
                                                         --------  --------
  Gross profit                                                868       266
  Selling, general and administrative expenses                986       818
                                                         --------  --------
  Operating loss                                             (118)     (552)
Interest expense                                             (166)     (144)
Interest and other income                                      79         -
(Loss) gain on disposition of property and equipment          (13)       83
                                                         --------  --------
  Loss before income taxes                                   (218)     (613)
Income tax expense                                             35        15
                                                         --------  --------
  Net loss                                                   (253)     (628)

Other comprehensive income, net of tax
  Amortization of prior service cost                            2         2
  Amortization of actuarial loss                                -         5
                                                         --------  --------
  Defined benefit pension plan expense                          2         7
                                                         --------  --------
  Other comprehensive income, net of tax                        2         7
                                                         --------  --------
  Comprehensive loss                                     $   (251) $   (621)
                                                         ========  ========

----------------------------------------------------------------------------
Net loss per Class A Unit                                $  (0.03) $  (0.08)
                                                         ========  ========

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

Weighted average Class A Units outstanding                  9,660     7,500
                                                         ========  ========

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

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

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 Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay 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. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Father business cycles and digital consumers are forcing enterprises to respond faster to customer needs and competitive demands. Successful integration of DevOps and Agile development will be key for business success in today’s digital economy. In his session at DevOps Summit, Pradeep Prabhu, Co-Founder & CEO of Cloudmunch, covered the critical practices that enterprises should consider to seamlessly integrate Agile and DevOps processes, barriers to implementing this in the enterprise, and pr...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
The principles behind DevOps are not new - for decades people have been automating system administration and decreasing the time to deploy apps and perform other management tasks. However, only recently did we see the tools and the will necessary to share the benefits and power of automation with a wider circle of people. In his session at DevOps Summit, Bernard Sanders, Chief Technology Officer at CloudBolt Software, explored the latest tools including Puppet, Chef, Docker, and CMPs needed to...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of 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, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
SYS-CON Events announced today that VAI, a leading ERP software provider, 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. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, 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. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
In most cases, it is convenient to have some human interaction with a web (micro-)service, no matter how small it is. A traditional approach would be to create an HTTP interface, where user requests will be dispatched and HTML/CSS pages must be served. This approach is indeed very traditional for a web site, but not really convenient for a web service, which is not intended to be good looking, 24x7 up and running and UX-optimized. Instead, talking to a web service in a chat-bot mode would be muc...
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
As someone who has been dedicated to automation and Application Release Automation (ARA) technology for almost six years now, one of the most common questions I get asked regards Platform-as-a-Service (PaaS). Specifically, people want to know whether release automation is still needed when a PaaS is in place, and why. Isn't that what a PaaS provides? A solution to the deployment and runtime challenges of an application? Why would anyone using a PaaS then need an automation engine with workflow ...