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
The need for greater agility and scalability necessitated the digital transformation in the form of following equation: monolithic to microservices to serverless architecture (FaaS). To keep up with the cut-throat competition, the organisations need to update their technology stack to make software development their differentiating factor. Thus microservices architecture emerged as a potential method to provide development teams with greater flexibility and other advantages, such as the abili...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life settle...
Blockchain. A day doesn’t seem to go by without seeing articles and discussions about the technology. According to PwC executive Seamus Cushley, approximately $1.4B has been invested in blockchain just last year. In Gartner’s recent hype cycle for emerging technologies, blockchain is approaching the peak. It is considered by Gartner as one of the ‘Key platform-enabling technologies to track.’ While there is a lot of ‘hype vs reality’ discussions going on, there is no arguing that blockchain is b...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
As Marc Andreessen says software is eating the world. Everything is rapidly moving toward being software-defined – from our phones and cars through our washing machines to the datacenter. However, there are larger challenges when implementing software defined on a larger scale - when building software defined infrastructure. In his session at 16th Cloud Expo, Boyan Ivanov, CEO of StorPool, provided some practical insights on what, how and why when implementing "software-defined" in the datacent...
ChatOps is an emerging topic that has led to the wide availability of integrations between group chat and various other tools/platforms. Currently, HipChat is an extremely powerful collaboration platform due to the various ChatOps integrations that are available. However, DevOps automation can involve orchestration and complex workflows. In his session at @DevOpsSummit at 20th Cloud Expo, Himanshu Chhetri, CTO at Addteq, will cover practical examples and use cases such as self-provisioning infra...
As DevOps methodologies expand their reach across the enterprise, organizations face the daunting challenge of adapting related cloud strategies to ensure optimal alignment, from managing complexity to ensuring proper governance. How can culture, automation, legacy apps and even budget be reexamined to enable this ongoing shift within the modern software factory? In her Day 2 Keynote at @DevOpsSummit at 21st Cloud Expo, Aruna Ravichandran, VP, DevOps Solutions Marketing, CA Technologies, was jo...
You know you need the cloud, but you’re hesitant to simply dump everything at Amazon since you know that not all workloads are suitable for cloud. You know that you want the kind of ease of use and scalability that you get with public cloud, but your applications are architected in a way that makes the public cloud a non-starter. You’re looking at private cloud solutions based on hyperconverged infrastructure, but you’re concerned with the limits inherent in those technologies.
Leading companies, from the Global Fortune 500 to the smallest companies, are adopting hybrid cloud as the path to business advantage. Hybrid cloud depends on cloud services and on-premises infrastructure working in unison. Successful implementations require new levels of data mobility, enabled by an automated and seamless flow across on-premises and cloud resources. In his general session at 21st Cloud Expo, Greg Tevis, an IBM Storage Software Technical Strategist and Customer Solution Architec...
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 use of containers by developers -- and now increasingly IT operators -- has grown from infatuation to deep and abiding love. But as with any long-term affair, the honeymoon soon leads to needing to live well together ... and maybe even getting some relationship help along the way. And so it goes with container orchestration and automation solutions, which are rapidly emerging as the means to maintain the bliss between rapid container adoption and broad container use among multiple cloud host...
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...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, discussed the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, application p...
Imagine if you will, a retail floor so densely packed with sensors that they can pick up the movements of insects scurrying across a store aisle. Or a component of a piece of factory equipment so well-instrumented that its digital twin provides resolution down to the micrometer.
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...