ALEXANDER & BALDWIN REPORTS FULL-YEAR 2015 RESULTS
Leasing Net Operating Income (NOI) grows 8.5%1 in 2015
Sales at Waihonua, Maui Business Park & Kahala Avenue drive $65.0 million of 2015 Development & Sales operating profit
Materials & Construction segment produces $41.0 million1 of EBITDA, up 7.9%1 in 2015
Previously announced sugar losses and cessation charges negatively impacted reported earnings
Honolulu (February 25, 2016) -- Alexander & Baldwin, Inc. (NYSE:ALEX) ("A&B" or "Company") today announced full-year 2015 net income of $29.6 million, or $0.545 per diluted share, which includes a previously reported loss for the Agribusiness segment of $33.9 million, or $0.69 per diluted share, principally arising from operating losses for Hawaiian Commercial & Sugar Company (HC&S) and costs related to the planned 2016 cessation of sugar operations. Earnings for 2014 were $61.4 million, or $1.25 per diluted share, which included $5.7 million, or $0.12 per diluted share, of Agribusiness segment losses. Excluding the Agribusiness losses, which primarily reflect the impact of the soon-to-be-ceased sugar operations, and results from commercial property sales, which are generated primarily in connection with property exchanges, adjusted net income rose from $32.8 million1 in 2014 to $64.7 million1 in 2015, reflecting the high-quality of earnings provided by the Real Estate and Materials & Construction segments. Revenue for 2015 was $570.5 million, compared to revenue of $560.0 million in the prior year.
"Aside from the challenges in our sugar operation, our Company performed well in 2015. Leading the way was our Leasing segment, which posted an 8.5%1 increase in NOI, resulting primarily from the strength of the Hawaii economy and our successful migration of assets from the Mainland to Hawaii," said Chris Benjamin, A&B president and chief executive officer. "Not only are we now generating roughly 80% of our commercial portfolio's NOI from Hawaii properties, but our Hawaii assets are performing well, validating our investment thesis. Additionally, we achieved solid sales across our development portfolio in 2015, including 18.4 acres at Maui Business Park, five Kahala Avenue properties, and 22 units at Kukui'ula, plus binding presales of all 450 high-rise and mid-rise units at The Collection condominium project," added Benjamin. "And, our Materials & Construction business finished strongly in 2015, producing $12 million1 of EBITDA in the fourth quarter, for a total of $41 million1 for the full year."
"Strong operating performance and cash flows from our Real Estate and Materials & Construction businesses helped us lower our debt levels by 17%, or $118 million, during 2015, strengthening our financial position as we head into 2016. Already this year we have furthered our asset migration and expanded our grocery-anchored retail presence with the acquisition of the well-performing, 139,000-square-foot, Safeway- and CVS/Longs-anchored
The following information was filed by Alexander Baldwin, Inc. (ALEX) on Thursday, February 25, 2016 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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Ticker: ALEX CIK: 1545654 Form Type:10-K Annual Report Accession Number: 0001545654-16-000058 Submitted to the SEC: Mon Feb 29 2016 7:26:02 AM EST Accepted by the SEC: Mon Feb 29 2016 Period: Thursday, December 31, 2015 Industry: Real Estate Investment Trusts