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
Artificial Intelligence has the potential to massively disrupt IoT. In his session at 18th Cloud Expo, AJ Abdallat, CEO of Beyond AI, will discuss what the five main drivers are in Artificial Intelligence that could shape the future of the Internet of Things. AJ Abdallat is CEO of Beyond AI. He has over 20 years of management experience in the fields of artificial intelligence, sensors, instruments, devices and software for telecommunications, life sciences, environmental monitoring, process...
In his session at 18th Cloud Expo, Sagi Brody, Chief Technology Officer at Webair Internet Development Inc., will focus on real world deployments of DDoS mitigation strategies in every layer of the network. He will give an overview of methods to prevent these attacks and best practices on how to provide protection in complex cloud platforms. He will also outline what we have found in our experience managing and running thousands of Linux and Unix managed service platforms and what specifically c...
Increasing IoT connectivity is forcing enterprises to find elegant solutions to organize and visualize all incoming data from these connected devices with re-configurable dashboard widgets to effectively allow rapid decision-making for everything from immediate actions in tactical situations to strategic analysis and reporting. In his session at 18th Cloud Expo, Shikhir Singh, Senior Developer Relations Manager at Sencha, will discuss how to create HTML5 dashboards that interact with IoT devic...
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
We’ve worked with dozens of early adopters across numerous industries and will debunk common misperceptions, which starts with understanding that many of the connected products we’ll use over the next 5 years are already products, they’re just not yet connected. With an IoT product, time-in-market provides much more essential feedback than ever before. Innovation comes from what you do with the data that the connected product provides in order to enhance the customer experience and optimize busi...
Many private cloud projects were built to deliver self-service access to development and test resources. While those clouds delivered faster access to resources, they lacked visibility, control and security needed for production deployments. In their session at 18th Cloud Expo, Steve Anderson, Product Manager at BMC Software, and Rick Lefort, Principal Technical Marketing Consultant at BMC Software, will discuss how a cloud designed for production operations not only helps accelerate developer...
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
A critical component of any IoT project is the back-end systems that capture data from remote IoT devices and structure it in a way to answer useful questions. Traditional data warehouse and analytical systems are mature technologies that can be used to handle large data sets, but they are not well suited to many IoT-scale products and the need for real-time insights. At Fuze, we have developed a backend platform as part of our mobility-oriented cloud service that uses Big Data-based approache...
Peak 10, Inc., has announced the implementation of IT service management, a business process alignment initiative based on the widely adopted Information Technology Infrastructure Library (ITIL) framework. The implementation of IT service management enhances Peak 10’s current service-minded approach to IT delivery by propelling the company to deliver higher levels of personalized and prompt service. The majority of Peak 10’s operations employees have been trained and certified in the ITIL frame...
trust and privacy in their ecosystem. Assurance and protection of device identity, secure data encryption and authentication are the key security challenges organizations are trying to address when integrating IoT devices. This holds true for IoT applications in a wide range of industries, for example, healthcare, consumer devices, and manufacturing. In his session at @ThingsExpo, Lancen LaChance, vice president of product management, IoT solutions at GlobalSign, will teach IoT developers how t...
As the rapid adoption of containers continues, companies are finding that they lack the operational tools to understand the behavior of applications deployed in these containers, and how to identify issues in their application infrastructure. For example, how are multiple containers within an application impacting each other’s performance? If an application’s service is degraded, which container is to blame? In the case of an application outage, what was the root cause of the outage?
Digital payments using wearable devices such as smart watches, fitness trackers, and payment wristbands are an increasing area of focus for industry participants, and consumer acceptance from early trials and deployments has encouraged some of the biggest names in technology and banking to continue their push to drive growth in this nascent market. Wearable payment systems may utilize near field communication (NFC), radio frequency identification (RFID), or quick response (QR) codes and barcodes...
SYS-CON Events announced today that CollabNet (www.collabnet.com) a global leader in enterprise software development and delivery solutions that help customers create high-quality applications at speed, 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 CEO of CollabNet Flint Brenton will also present about DevOps challenges in today’s global, open, and heterogeneous world of software development.
SYS-CON Events announced today that Peak 10, Inc., a national IT infrastructure and cloud services 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. Peak 10 provides reliable, tailored data center and network services, cloud and managed services. Its solutions are designed to scale and adapt to customers’ changing business needs, enabling them to lower costs, improve performance and focus inter...
Much of the value of DevOps comes from a (renewed) focus on measurement, sharing, and continuous feedback loops. In increasingly complex DevOps workflows and environments, and especially in larger, regulated, or more crystallized organizations, these core concepts become even more critical. In his session at @DevOpsSummit at 18th Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, will show how, by focusing on 'metrics that matter,' you can provide objective, transparent, and meaningfu...