Maui Land & Pineapple Co. reported a net loss of $1.6 million on revenues of $3.6 million for the three months that ended Sept. 30, the company said Thursday.
That compares to a loss of $1.3 million on revenues of $3.4 million reported for the same quarter of 2011.
The breakdown of revenues for the third quarter amounted to:
* Leasing: $1.4 million. The company said leasing activities include real property leasing, license fees and royalties for the use of certain trademarks and brand names, and the cost of maintaining the company's real estate assets.
* Utilities: $1.09 million. This category includes operations of Kapalua Water Co. and Kapalua Waste Treatment Co., which service the Kapalua Resort. It also includes management of ditch, reservoir and well systems that provide nonpotable irrigation water to West and Upcountry Maui areas.
* Resort amenities: $1.03 million. This segment includes the company's management of a spa, beach club and membership program within the Kapalua Resort.
* Real estate: $90,000 in commissions, zero from sales.
Maui Land & Pineapple reported total operating expenses of $4.5 million for the quarter, an increase of 9 percent over the same quarter last year.
Year to date through September, the company reported a loss of $2.9 million on total revenues of $12.4 million.
That compares to the $8.6 million in net income reported on revenues of $11 million for the same nine-month period in 2011. That gain reflected the $15 million sale of the Kapalua Bay Golf Course last year.
The increased revenues year to date are credited to the January sale of an 89-acre parcel for $1.5 million, the company said.
Although not reflected in this quarter's losses, the company cites some of its financial troubles stemming from its majority interest in Kapalua Bay Holdings LLC, which controls the entity that developed the Ritz-Carlton Club and Residences at Kapalua Bay.
While ML&P has written down to zero the "carrying value" of its investment in the project, it said that debts for the project, combined with the company's mounting pension liabilities, "raise substantial doubt about our ability to continue as a going concern," according to a filing Thursday with the U.S. Securities and Exchange Commission.
The lenders for the Ritz-Carlton project in June foreclosed on project developer Kapalua Bay LLC - a joint venture among affiliates of Maui Land & Pineapple Co., Exclusive Resorts and Marriott International. The entity owes more than $304 million in principal and interest on the property, which opened in mid-2009.
Dozens of luxury condominiums and hundreds of time-share interests at the property are scheduled to be auctioned off Dec. 3 in Honolulu as part of the foreclosure case.
ML&P had previously agreed to purchase from Kapalua Bay the project's spa, beach club and sundry store at actual construction costs of about $35 million, but it said in the SEC filing that it does not have sufficient liquidity to do so.
It said "if the amenities are subsequently acquired, they will be evaluated for impairment and could result in a loss."
"We are subject to several commitments and contingencies that could negatively impact our future cash flows, including purchase commitments up to $35 million related to our investment in Kapalua Bay Holdings . . . and funding requirements related to our defined benefit pension plans," the company said. "The aforementioned circumstances raise substantial doubt about our ability to continue as a going concern."
"In response to these circumstances, we continue to undertake significant efforts to generate cash flow by employing our real estate assets in leasing and other arrangements, by the sale of several real estate assets and by continued cost reduction efforts. We are actively working with our lenders to extend the maturity dates of our credit facilities," the company said.
Shares of ML&P's stock closed at $2.62 Thursday, up 21 cents, or 9 percent, for the day.
* Nanea Kalani can be reached at nkalani@mauinews.com.
