ML Macadamia Orchards, L.P. Reports 3Q 2008 Results

  
    
  
  
    
      ML Macadamia Orchards, L.P. (NYSE:NUT), reported third-quarter 2008 net 
      income of $886,000 or $0.12 per Class A Unit, on total revenues of $5.8 
      million, as compared to a net loss of $436,000 or ($0.06) per Class A 
      Unit on $2.8 million in revenues for the same period last year.
    
    
      “The third quarter of 2008 marked the return 
      to profitability for the Partnership as a good crop of nuts enabled us 
      to begin the harvest early and benefit from higher nut prices, as well 
      as from improved operating efficiencies,” said 
      Dennis J. Simonis, President and CEO. “With 
      continued positive market conditions, we anticipate improved results for 
      the balance of 2008.”
    
    
      Results for the third quarter of 2008 also included a crop insurance 
      recovery of $886,000 for the production year ended June 30, 2008.
    
    
      Net cash flow for the third quarter of 2008 was $1.7 million as compared 
      to $14,000 for the third quarter of 2007.
    
    
      Nut revenues were $4.6 million for the three months ended September 30, 
      2008, compared to $2.0 million in the prior year. The third quarter 
      harvest was 6.8 million pounds or 64% higher than the quarter ended 
      September 30, 2007, and significantly better than the historical average 
      for this period. Farming service revenues were $1.2 million or 46% 
      higher than the third quarter of last year, due to the timing of farming 
      activities.
    
    
      For the first nine months of 2008, revenues were $11.0 million with a 
      net profit of $224,000 or $0.03 per Class A Unit. Total revenues in the 
      first nine months of 2007 were $7.4 million with a net loss of $446,000, 
      or ($0.06) per Class A Unit.
    
    
      The Partnership is required to maintain market capitalization of at 
      least $25 million on a 30-trading-day average to meet the continued 
      listing criteria of the NYSE. At this time, the market capitalization of 
      the Partnership is less than that amount and the Partnership expects 
      to receive formal notice of a decision to delist the Partnership's 
      Depositary Receipts (representing Class A Units of limited partners’ 
      interests) from the NYSE. While the NYSE decision to delist the 
      Depository Receipts is subject to appeal, the Partnership believes that 
      it would be in the best interest of its unitholders not to contest this 
      action. Therefore, the Partnership is pursuing alternatives for 
      repositioning itself on another exchange. In the interim, management is 
      making arrangements for the securities to continue to be traded through 
      the Over The Counter Bulletin Board (OTCBB).
    
    
      Forward-Looking Statements — 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 statements, 
      among others, regarding the Partnership’s 
      future nut prices and the outcome of legal action, which are based on 
      certain assumptions and forecasts. The Partnership files documents with 
      the Securities and Exchange Commission, such as Form 10-K, Form 10-Q and 
      Form 8-K reports, which contain a description of these and other risks 
      and uncertainties that could cause actual results to differ from current 
      expectations and the forward-looking statements contained in this press 
      release.
    
    
      
        
          
            ML Macadamia Orchards, L.P.Consolidated Income 
            Statements (unaudited)(in thousands, except per unit 
            data)
          
        
      
      
        
        
        
           
        
        
        
        
        
        
           
        
        
        
        
        
        
           
        
        
        
        
        
        
           
        
        
        
        
        
      
      
        
        
        
        
        
        
        
          Three months
        
        
        
        
        
        
          Nine months
        
      
      
        
        
        
        
        
        
        
          ended September 30,
        
        
        
        
        
        
          
            ended September 30,
          
        
      
      
        
        
        
        
        
        
        
          2008
        
        
        
        
        
        
          2007
        
        
        
        
        
        
          2008
        
        
        
        
        
        
          2007
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Macadamia nut sales
        
        
        
        
          $
        
        
          4,597
        
        
        
        
        
        
          $
        
        
          1,979
        
        
        
        
        
        
          $
        
        
          8,215
        
        
        
        
        
        
          $
        
        
          4,902
        
        
        
      
      
        
          Contract farming revenue
        
        
        
        
        
        
          1,164
        
        
           
        
        
        
        
        
        
          797
        
        
           
        
        
        
        
        
        
          2,793
        
        
           
        
        
        
        
        
        
          2,464
        
        
           
        
      
      
        
          Total revenues
        
        
        
        
        
        
          5,761
        
        
           
        
        
        
        
        
        
          2,776
        
        
           
        
        
        
        
        
        
          11,008
        
        
           
        
        
        
        
        
        
          7,366
        
        
           
        
      
      
        
          Cost of goods and services
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Costs of macadamia nut sales
        
        
        
        
        
        
          4,101
        
        
        
        
        
        
        
        
          1,546
        
        
        
        
        
        
        
        
          7,538
        
        
        
        
        
        
        
        
          3,720
        
        
        
      
      
        
          Costs of contract farming services
        
        
        
        
        
        
          1,086
        
        
           
        
        
        
        
        
        
          731
        
        
           
        
        
        
        
        
        
          2,591
        
        
           
        
        
        
        
        
        
          2,257
        
        
           
        
      
      
        
          Total cost of goods sold
        
        
        
        
        
        
          5,187
        
        
           
        
        
        
        
        
        
          2,277
        
        
           
        
        
        
        
        
        
          10,129
        
        
           
        
        
        
        
        
        
          5,977
        
        
           
        
      
      
        
          Gross income
        
        
        
        
        
        
          574
        
        
           
        
        
        
        
        
        
          499
        
        
           
        
        
        
        
        
        
          879
        
        
           
        
        
        
        
        
        
          1,389
        
        
           
        
      
      
        
          General and administrative expenses
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Other
        
        
        
        
        
        
          483
        
        
           
        
        
        
        
        
        
          874
        
        
           
        
        
        
        
        
        
          1,285
        
        
           
        
        
        
        
        
        
          1,744
        
        
           
        
      
      
        
          Total general and administrative expenses
        
        
        
        
        
        
          483
        
        
           
        
        
        
        
        
        
          874
        
        
           
        
        
        
        
        
        
          1,285
        
        
           
        
        
        
        
        
        
          1,744
        
        
           
        
      
      
        
          Operating income (loss)
        
        
        
        
        
        
          91
        
        
        
        
        
        
        
        
          (375
        
        
          )
        
        
        
        
        
        
          (406
        
        
          )
        
        
        
        
        
        
          (355
        
        
          )
        
      
      
        
          Other income (loss)
        
        
        
        
        
        
          885
        
        
        
        
        
        
        
        
          (1
        
        
          )
        
        
        
        
        
        
          897
        
        
        
        
        
        
        
        
          12
        
        
        
      
      
        
          Interest expense
        
        
        
        
        
        
          (84
        
        
          )
        
        
        
        
        
        
          (44
        
        
          )
        
        
        
        
        
        
          (250
        
        
          )
        
        
        
        
        
        
          (105
        
        
          )
        
      
      
        
          Interest income
        
        
        
        
        
        
          14
        
        
           
        
        
        
        
        
        
          -
        
        
           
        
        
        
        
        
        
          14
        
        
           
        
        
        
        
        
        
          49
        
        
           
        
      
      
        
          Income before tax
        
        
        
        
        
        
          906
        
        
        
        
        
        
        
        
          (420
        
        
          )
        
        
        
        
        
        
          255
        
        
        
        
        
        
        
        
          (399
        
        
          )
        
      
      
        
          Income tax expense
        
        
        
        
        
        
          20
        
        
           
        
        
        
        
        
        
          16
        
        
           
        
        
        
        
        
        
          31
        
        
           
        
        
        
        
        
        
          47
        
        
           
        
      
      
        
          Net income (loss)
        
        
        
        
          $
        
        
          886
        
        
           
        
        
        
        
          $
        
        
          (436
        
        
          )
        
        
        
        
          $
        
        
          224
        
        
           
        
        
        
        
          $
        
        
          (446
        
        
          )
        
      
      
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net cash flow
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          (as defined in the Partnership Agreement)
        
        
        
        
          $
        
        
          1,665
        
        
           
        
        
        
        
          $
        
        
          14
        
        
           
        
        
        
        
          $
        
        
          1,309
        
        
           
        
        
        
        
          $
        
        
          73
        
        
           
        
      
      
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net loss per Class A Unit
        
        
        
        
          $
        
        
          0.12
        
        
           
        
        
        
        
          $
        
        
          (0.06
        
        
          )
        
        
        
        
          $
        
        
          0.03
        
        
           
        
        
        
        
          $
        
        
          (0.06
        
        
          )
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Net cash flow per Class A Unit
        
        
        
        
          $
        
        
          0.22
        
        
           
        
        
        
        
          $
        
        
          0.00
        
        
           
        
        
        
        
          $
        
        
          0.17
        
        
           
        
        
        
        
          $
        
        
          0.01
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Cash distributions per Class A Unit
        
        
        
        
          $
        
        
          0.00
        
        
           
        
        
        
        
          $
        
        
          0.05
        
        
           
        
        
        
        
          $
        
        
          0.00
        
        
           
        
        
        
        
          $
        
        
          0.15
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Class A Units outstanding
        
        
        
        
        
        
          7,500
        
        
           
        
        
        
        
        
        
          7,500
        
        
           
        
        
        
        
        
        
          7,500
        
        
           
        
        
        
        
        
        
          7,500