UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D. C. 20549
______________
FORM
8-K
______________
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the
Securities
Exchange Act of 1934
Date of
Report (Date of earliest event reported): February 3,
2010
ALEXANDER
& BALDWIN, INC.
(Exact
name of registrant as specified in its charter)
|
Hawaii
|
000-00565
|
99-0032630
|
|
(State or other jurisdiction of
incorporation)
|
(Commission File Number)
|
(I.R.S. Employer
Identification
No.)
|
822
Bishop Street, P. O. Box 3440
Honolulu, Hawaii
96801
(Address
of principal executive office and zip code)
(808)
525-6611
(Registrant’s
telephone number, including area code)
Not
Applicable
(Former
Name or Former Address, if Changed Since Last Report)
Check the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2.):
|
o
|
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|
|
o
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
o
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
|
|
o
|
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
|
Item
2.02. Results of Operations and Financial
Condition.
Alexander &
Baldwin, Inc. issued a press release on February 3, 2010 announcing its 2009
fourth quarter earnings. This information, attached as
Exhibit 99.1, is being furnished to the SEC pursuant to Item 2.02 of
Form 8-K.
Item
9.01. Financial Statements and Exhibits.
(d) Exhibits
|
|
99.1
|
Press
Release announcing 2009 fourth quarter earnings issued on February 3,
2010.
|
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, as amended, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
Date: February
3, 2010
ALEXANDER & BALDWIN,
INC.
/s/ Christopher J.
Benjamin
Christopher J. Benjamin
Senior Vice President,
Chief Financial Officer and
Treasurer
|
For
media inquiries:
|
For
investor relations inquiries:
|
|
Meredith
J. Ching
|
Christopher
J. Benjamin
|
|
808.525.6669
|
808.525.8405
|
|
mching@abinc.com
|
invrel@abinc.com
|
|
FOR
RELEASE:
|
|
|
4:00
P.M. EASTERN STANDARD TIME
|
|
|
Wednesday,
February 3, 2010
|
A&B REPORTS 2009 NET
INCOME OF $44.2 MILLION
Honolulu (February 3, 2010) - Alexander
& Baldwin, Inc. (NYSE:ALEX) today reported that net income for the full year
2009 was $44.2 million, or $1.08 per diluted share. Net income for
the full year 2008 was $132.4 million, or $3.19 per diluted
share. Revenue for the full year 2009 was $1,404.8 million, compared
to revenue of $1,879.8 million for the full year 2008.
Net
income for the fourth quarter of 2009 was $20.1 million, or $0.49 per diluted
share. Net income in the fourth quarter of 2008 was $23.9 million, or $0.58 per
diluted share. Revenue for the fourth quarter of 2009 was $365.0
million, compared to revenue of $395.4 million in the same period of
2008.
COMMENTS
ON QUARTER & OUTLOOK
“Fourth
quarter 2009 operating profit benefitted from strong property sales and a
non-operating gain in Agribusiness, which offset the impacts on Ocean
Transportation segment results from rudder damage to one of the Company’s
vessels,” said Stan Kuriyama, president and chief executive officer of
A&B. “The Company’s modest profit in 2009 was hard earned in a very
difficult operating environment for all of our lines of business. The cost
cutting actions we took in 2008 and 2009, the investments we have continued to
make in our businesses and the Company’s firm financial footing will position us
well in 2010 as the markets we serve begin to recover. We continue to
make strategic investments and pursue opportunities throughout our businesses to
facilitate future growth, with a current emphasis on Hawaii real
estate.”
“In 2009,
sharp declines in Ocean Transportation’s Hawaii volumes and China rates more
than offset improvements in Hawaii and Guam yields. Our Logistics
Services segment suffered major reductions in both volumes and rates, driven by
trends felt across the industry. Our Agribusiness segment continued
to struggle with drought-induced lower yields in its core sugar operations and
lower rates received for power it produced and sold to the electric utilities on
Maui and Kauai. The impacts of the economic downturn were seen in
lower occupancies and rents in the leased portfolio and minimal sales from
development projects and joint ventures. These declines more than
offset the Company’s strong performance in improved property
sales. In the aggregate, the Company’s results also reflected a $24
million year-over-year negative variance in non-cash pension expense, which
impacted results in each of our segments.”
“Despite
the challenging earnings environment, the Company generated positive operating
cash flow, while improving its overall financial condition. Our
strong balance sheet, ample liquidity and modest debt position leave us well
positioned to take advantage of market opportunities. We enter the
year with the ongoing benefits of our comprehensive cost reductions and are
gaining momentum in our opportunistic investment programs. While some
of 2009’s economic challenges will persist throughout 2010, the Company is much
better positioned to create near-term earnings growth and long-term value in a
more stabilized environment.”
“Our core
business segments each face challenges and opportunities in
2010. Ocean Transportation should benefit from stabilizing volumes in
the key Hawaii trade and a firming of pricing in the China trade, but may be
challenged to achieve historical margins at lower volume
levels. Logistics Services should similarly benefit from some
recovery in domestic volumes and rates, although the disintermediation of its
international intermodal business will dampen growth
prospects. Increases in domestic sugar prices and improving yield
forecasts have positioned Agribusiness for a major improvement in
2010. Adequate access to irrigation water must be maintained to
ensure ongoing operating viability over the longer term.”
“Real
Estate Leasing will be challenged with lower revenues due to lower rents and
occupancies, and higher depreciation related to newly acquired properties, but
will continue to generate significant cash net operating
income. Demand for quality properties remains intact, which should
translate into continued strong results from improved property sales, as
evidenced by our recently completed sale of the Mililani Shopping
Center. While signs of a recovery in Hawaii’s real estate markets are
expected in 2010, no meaningful pick up in sales from development projects and
joint ventures is currently anticipated. We are seeing more rational
pricing in Hawaii real estate assets, and with two modest ‘Project X’
investments over the past two months, we have resumed making non-1031
investments in the state.”
“As
economic growth returns, we are confident that the Company’s capital resources
to support new investments, and strong franchises and market positions in our
shipping and real estate businesses, will result in shareholder value creation
and earnings growth in 2010 and beyond."
TRANSPORTATION—OCEAN
TRANSPORTATION
|
Quarter
Ended December 31,
|
||||||||||
|
(dollars
in millions)
|
2009
|
2008
|
Change
|
|||||||
|
Revenue
|
$
|
234.8
|
$
|
239.5
|
-2
|
%
|
||||
|
Operating
profit
|
$
|
13.5
|
$
|
21.1
|
-36
|
%
|
||||
|
Operating
profit margin
|
5.7
|
%
|
8.8
|
%
|
||||||
|
Volume
(Units)
|
||||||||||
|
Hawaii
containers
|
34,200
|
35,900
|
-5
|
%
|
||||||
|
Hawaii
automobiles
|
20,600
|
15,300
|
35
|
%
|
||||||
|
China
containers
|
13,500
|
11,100
|
22
|
%
|
||||||
|
Guam
containers
|
3,600
|
3,300
|
9
|
%
|
||||||
For the
fourth quarter of 2009, Ocean Transportation revenue decreased 2 percent from
the year earlier period due to lower yields in the China trade, lower fuel
surcharges and lower container volumes in the Hawaii trade, partially offset by
higher China and Guam service volumes, favorable yields in the Hawaii trade and
higher Hawaii auto volumes. Hawaii container volume continues to be
affected by the economic downturn, although the rate of decline moderated in the
fourth quarter. Operating profit was $7.6 million, or 36 percent,
lower in the fourth quarter of 2009 compared to 2008 due to lower Hawaii
volumes, lower China yields, increased vessel operating expenses related to the
MV Mokihana rudder failure discussed further below and higher fuel prices,
partially offset by improving Hawaii yields, lower operations overhead cost, and
lower general and administrative expenses.
Fourth
quarter 2009 operating profit and margins were negatively impacted by the rudder
failure on the MV Mokihana, which led to higher vessel repair expense and the
need to temporarily add a 10th ship
to the fleet to ensure that schedule and service integrity was
maintained. The estimated impact to operating profit was
approximately $6.3 million, which reduced fourth quarter operating profit margin
from 8.4 percent to 5.7 percent. By quarter’s end, repairs on the
Mokihana had been completed and the fleet returned to a 9-ship
rotation.
|
Year
Ended December 31,
|
||||||||||
|
(dollars
in millions)
|
2009
|
2008
|
Change
|
|||||||
|
Revenue
|
$
|
888.6
|
$
|
1,023.7
|
-13
|
%
|
||||
|
Operating
profit
|
$
|
58.3
|
$
|
105.8
|
-45
|
%
|
||||
|
Operating
profit margin
|
6.6
|
%
|
10.3
|
%
|
||||||
|
Volume
(Units)
|
||||||||||
|
Hawaii
containers
|
136,100
|
152,700
|
-11
|
%
|
||||||
|
Hawaii
automobiles
|
83,400
|
86,300
|
-3
|
%
|
||||||
|
China
containers
|
46,600
|
47,800
|
-3
|
%
|
||||||
|
Guam
containers
|
14,100
|
13,900
|
1
|
%
|
||||||
Ocean
Transportation revenue decreased $135.1 million, or 13 percent, in 2009 compared
to 2008. This decline was attributable to lower net volumes, lower
China yields, and lower fuel surcharges, partially offset by improving Guam and
Hawaii yields. Total Hawaii container volume declined 11 percent in
2009 compared with 2008, reflecting a broad-based decline in demand caused by
the ongoing softness in Hawaii’s economy. Matson’s Hawaii automobile
volume for the year was 3 percent lower than 2008, also reflecting economic
weakness. China container volume decreased 3 percent in 2009,
compared with 2008, principally due to weak U.S. economic conditions that have
slowed the demand for container imports.
Operating
profit decreased $47.5 million, or 45 percent, in 2009 compared to
2008. The primary reasons for the decline included declines in
overall volume, declines in China yields, higher terminal costs, higher pension
costs, emergency rudder repair-related costs, and workforce reduction
expenses. These factors were partially offset by improvements in Guam
and Hawaii yields and cargo mix, reduced vessel expenses correlating with a
smaller fleet deployment and lower general and administrative costs attributable
to headcount and other cost reduction initiatives.
TRANSPORTATION—LOGISTICS
SERVICES
|
Quarter
Ended December 31,
|
||||||||||
|
(dollars
in millions)
|
2009
|
2008
|
Change
|
|||||||
|
Intermodal
revenue
|
$
|
48.5
|
$
|
58.8
|
-18
|
%
|
||||
|
Highway
revenue
|
33.6
|
41.0
|
-18
|
%
|
||||||
|
Total
Revenue
|
$
|
82.1
|
$
|
99.8
|
-18
|
%
|
||||
|
Operating
profit
|
$
|
1.2
|
$
|
4.1
|
-71
|
%
|
||||
|
Operating
profit margin
|
1.5
|
%
|
4.1
|
%
|
||||||
Logistics
Services revenue for the fourth quarter of 2009 decreased 18 percent, or $17.7
million, from the fourth quarter of 2008, due primarily to lower rates, which
were driven largely by lower fuel surcharges and competitive pricing pressures,
and lower intermodal volume. In the fourth quarter of 2009,
intermodal volume decreased by 5 percent, as compared to the fourth quarter of
2008, with a significant reduction in international intermodal volume related to
lower U.S. import demand and a shift of carrier business directly to the rail
providers.
Logistics
Services operating profit fell by $2.9 million compared to the fourth quarter of
2008, due principally to the lower volume and lower rates cited
above.
|
Year
Ended December 31,
|
||||||||||
|
(dollars
in millions)
|
2009
|
2008
|
Change
|
|||||||
|
Intermodal
revenue
|
$
|
188.0
|
$
|
271.0
|
-31
|
%
|
||||
|
Highway
revenue
|
132.9
|
165.0
|
-19
|
%
|
||||||
|
Total
Revenue
|
$
|
320.9
|
$
|
436.0
|
-26
|
%
|
||||
|
Operating
profit
|
$
|
6.7
|
$
|
18.5
|
-64
|
%
|
||||
|
Operating
profit margin
|
2.1
|
%
|
4.2
|
%
|
||||||
Logistics
Services revenue decreased $115.1 million, or 26 percent, in 2009 compared to
2008. This decrease was principally due to lower intermodal and
highway volume and rates. The reduction in highway volume is
reflective of a general softening in the highway market as a result of the U.S.
recession. Intermodal volumes were impacted by the recession and by
competitive actions resulting from direct agreements between steamship lines and
rail providers. Partially offsetting these declines was growth in
Matson Global Distribution Services’ warehousing revenue attributable to the
full year impact of PACAM, the San Francisco Bay-area regional warehousing,
packaging and distribution company acquired in the third quarter of
2008.
Logistics
Services operating profit decreased $11.8 million, or 64 percent, in 2009
compared with 2008. Operating profit decreased principally due to
lower volume and rates previously cited, but also due to margin compression
resulting from excess capacity in the market.
REAL
ESTATE—INDUSTRY
Real
Estate Leasing and Real Estate Sales revenue and operating profit are analyzed
before discontinued operations are removed. This is consistent with
how the Company evaluates and makes investment, disposition and capital
allocation decisions.
REAL
ESTATE—LEASING
|
Quarter
Ended December 31,
|
||||||||||
|
(dollars
in millions)
|
2009
|
2008
|
Change
|
|||||||
|
Revenue
|
$
|
24.9
|
$
|
25.5
|
-2
|
%
|
||||
|
Operating
profit
|
$
|
10.0
|
$
|
10.2
|
-2
|
%
|
||||
|
Operating
profit margin
|
40.2
|
%
|
40.0
|
%
|
||||||
Real
Estate Leasing revenue for the fourth quarter of 2009 was $24.9 million, a
decrease of 2 percent from the fourth quarter of 2008, due to lower occupancies
and rents, primarily in the mainland portfolio, the net effect of property sales
and acquisitions, and the partial non-reinvestment of proceeds from a late 2008
disposition.
Operating
profit of $10.0 million was 2 percent lower than the fourth quarter of 2008 due
to the combination of lower revenue and higher depreciation expenses, partially
offset by lower insurance expenses.
|
Year
Ended December 31,
|
||||||||||
|
(dollars
in millions)
|
2009
|
2008
|
Change
|
|||||||
|
Revenue
|
$
|
103.2
|
$
|
107.8
|
-4
|
%
|
||||
|
Operating
profit
|
$
|
43.2
|
$
|
47.8
|
-10
|
%
|
||||
|
Operating
profit margin
|
41.9
|
%
|
44.3
|
%
|
||||||
|
Occupancy
Rates:
|
||||||||||
|
Mainland
|
85
|
%
|
95
|
%
|
||||||
|
Hawaii
|
95
|
%
|
98
|
%
|
||||||
|
Leasable
Space (million sq. ft.):
|
||||||||||
|
Mainland
|
7.0
|
6.6
|
6
|
%
|
||||||
|
Hawaii
|
1.3
|
1.3
|
--
|
%
|
||||||
Real Estate Leasing revenue for 2009
was 4 percent lower than the amount reported for 2008. The decrease
was principally due to lower mainland occupancies and rents, the partial
non-reinvestment of 1031 proceeds from a late 2008 disposition, and a business
interruption insurance payment received in 2008. Occupancy for the
mainland portfolio decreased 10 percentage points in 2009 as compared to 2008,
primarily due to the combination of a net addition of lower occupancy gross
leasable area (“GLA”) to the portfolio and reduced “same store” occupancy at two
industrial properties. Operating profit was 10 percent lower in 2009,
compared with 2008, principally due to the reasons cited for the revenue decline
discussed above, as well as higher depreciation and amortization
expenses.
Leasable
space increased by a net 0.4 million square feet at December 31, 2009 as
compared to December 31, 2008, due to the net effect of several acquisitions and
dispositions. Many of the properties added to the portfolio were
larger square footage industrial properties, both in Hawaii and on the
mainland. Vacancies in industrial properties affect GLA-based
occupancy level calculations disproportionately in relation to revenue,
operating profit and net operating income (“NOI”), as this asset class generally
has significantly lower rental rates per square foot.
The
Company regularly makes dispositions of commercial properties from its leasing
portfolio and land under ground leases or vacant land parcels and subsequently
reinvests proceeds, on a tax-deferred basis, in new properties. As a
result, the Company typically incurs higher depreciation expenses attributable
to the higher cost basis of its properties or to the replacement of formerly
non-depreciable property with depreciable property. Further, due to
the inherent timing lag between disposition and reinvestment, the Company incurs
a modest loss of revenue and income in these interim periods.
REAL
ESTATE—SALES
|
Quarter
Ended December 31,
|
||||||||||
|
(dollars
in millions)
|
2009
|
2008
|
Change
|
|||||||
|
Improved
property sales
|
$
|
58.1
|
$
|
30.3
|
92
|
%
|
||||
|
Development
sales
|
0.8
|
5.6
|
-86
|
%
|
||||||
|
Unimproved/other
property sales
|
5.3
|
18.5
|
-71
|
%
|
||||||
|
Total
revenue
|
$
|
64.2
|
$
|
54.4
|
18
|
%
|
||||
|
Operating
profit before joint ventures
|
$
|
20.9
|
$
|
20.6
|
-1
|
%
|
||||
|
Equity
in earnings (loss) of joint ventures
|
(0.5
|
)
|
(1.3
|
)
|
62
|
%
|
||||
|
Total
operating profit
|
$
|
20.4
|
$
|
19.3
|
6
|
%
|
||||
Fourth
quarter 2009 Real Estate Sales revenue was $9.8 million, or 18 percent, more
than the fourth quarter of 2008, as higher improved property sales offset lower
development and unimproved/other property sales. In the fourth
quarter of 2009, the Company sold its Pacific Guardian Tower office property
(Honolulu, HI) and Village at Indian Wells retail center (Indian Wells, CA) and
several unimproved parcels on Maui. In the fourth quarter of 2008,
the Company sold its Venture Oaks office building (Sacramento, CA) and several
improved properties and unimproved parcels on Maui.
Fourth
quarter 2009 operating profit was $20.4 million, 6 percent higher than in the
fourth quarter of 2008, due principally to higher commercial property sales
volume, partially offset by lower unimproved land and development sales
activity. Sales activity in the Company’s wholly-owned and joint
venture developments was limited to 5 units in the fourth quarter of 2009,
versus 12 units in the prior year’s fourth quarter.
|
Year
Ended December 31,
|
||||||||||
|
(dollars
in millions)
|
2009
|
2008
|
Change
|
|||||||
|
Improved
property sales
|
$
|
99.6
|
$
|
103.6
|
-4
|
%
|
||||
|
Development
sales
|
6.0
|
217.4
|
-97
|
%
|
||||||
|
Unimproved/other
property sales
|
20.0
|
29.2
|
-32
|
%
|
||||||
|
Total
revenue
|
$
|
125.6
|
$
|
350.2
|
-64
|
%
|
||||
|
Operating
profit before joint ventures
|
$
|
39.1
|
$
|
86.6
|
-55
|
%
|
||||
|
Equity
in earnings (loss) of joint ventures
|
--
|
9.0
|
NM
|
|||||||
|
Total
operating profit
|
$
|
39.1
|
$
|
95.6
|
-59
|
%
|
||||
For the
full year of 2009, Real Estate Sales revenue was substantially lower than the
same period in 2008, principally as a result of extensive sales in 2008 at the
Company’s Keola La’i high rise development on Oahu and its Keala’ula
single-family subdivision on Kauai, as well as higher unimproved/other property
sales. Development sales activity at the Company’s wholly-owned and
joint venture development projects was very slow in 2009, with a total of 18
units sold.
Operating
profit in 2009 was 59 percent lower than 2008, when the Company benefitted from
the Keola La’i sales, an insurance settlement received, and joint venture income
related to sales at the Kai Malu project in Wailea, Maui. Operating
profit in 2009 also included an impairment loss related to the Company’s Ka Milo
joint venture.
AGRIBUSINESS
The
Company’s Hawaiian Commercial & Sugar Company division is a member in a
cooperative that provides raw sugar marketing and transportation
services. In the fourth quarter of 2009, the cooperative’s only other
member ceased production of raw sugar, which resulted in its membership being
terminated, leaving the Company currently as the sole member in the
cooperative. Accordingly, the Company was required under generally
accepted accounting principles to consolidate the cooperative beginning in the
fourth quarter of 2009, which resulted in a $5.4 million non-operating gain in
the Company’s reported financial results for the fourth quarter and full year
2009.
|
Quarter
Ended December 31,
|
||||||||||
|
(dollars
in millions)
|
2009
|
2008
|
Change
|
|||||||
|
Revenue
|
$
|
27.6
|
$
|
28.1
|
-2
|
%
|
||||
|
Operating
loss
|
$
|
(0.8
|
)
|
$
|
(6.1
|
)
|
87
|
%
|
||
|
Tons
sugar produced
|
23,800
|
30,400
|
-22
|
%
|
||||||
Excluding
the aforementioned non-operating gain, fourth quarter 2009 Agribusiness revenue
was $22.2 million, or $5.9 million lower than a year earlier due to lower sugar
and power revenues, offset by higher specialty sugar and coffee
revenues. Operating loss, again excluding the non-operating gain, was
$6.2 million, similar to the loss incurred in the fourth quarter of
2008. Sugar production decreased 22 percent in the fourth quarter
versus the same period in 2008, due to the earlier conclusion of the scheduled
harvest.
|
Year
Ended December 31,
|
||||||||||
|
(dollars
in millions)
|
2009
|
2008
|
Change
|
|||||||
|
Revenue
|
$
|
107.0
|
$
|
124.3
|
-14
|
%
|
||||
|
Operating
loss
|
$
|
(27.8
|
)
|
$
|
(12.9
|
)
|
-2
|
X
|
||
|
Tons
sugar produced
|
126,800
|
145,200
|
-13
|
%
|
||||||
Excluding the
non-operating gain, Agribusiness revenue decreased $22.7 million in 2009
compared to 2008. The decrease was primarily due to lower power
revenues stemming from lower prices and volume, and lower raw sugar sales
volume, partially offset by higher specialty sugar volume. Power
prices, which decreased by more than 50 percent compared to the prior year, are
determined by an avoided cost calculation for the public utilities in Hawaii,
and have been negatively impacted by a reduction in fossil fuel costs as well as
by a regulatory change in the calculation method.
Operating loss,
again excluding the non-operating gain, increased $20.3 million in 2009 compared
to 2008, for the same reasons cited for revenue decline. Sugar
production in 2009 was 13 percent lower than in 2008 due to the ongoing effects
of the severe drought conditions in 2007-2008.
Following the
Company’s Board meeting on January 28, 2010, the Company announced in a press
release that it will continue sugar operations at HC&S through at least
2010.
CORPORATE
EXPENSE
Corporate
expenses of $6.3 million increased by 37 percent, or $1.7 million, in the fourth
quarter of 2009 as compared to the fourth quarter of 2008. The increase is due
principally to an increase in contributions expense to the A&B Foundation
and an increase in non-cash pension expenses. For the full year 2009, corporate
expenses were $21.8 million, or $0.8 million higher than 2008, due principally
to higher pension expenses that were partially offset by lower performance-based
compensation and lower salaries.
CONDENSED
CASH FLOW TABLE
|
Year
Ended December 31,
|
||||||||||
|
(Dollars
in millions, Unaudited)
|
2009
|
2008
|
Change
|
|||||||
|
Cash
Flow from Operating Activities
|
$
|
115
|
$
|
275
|
-58
|
%
|
||||
|
Capital
Expenditures (1)
|
||||||||||
|
Transportation
|
(13
|
)
|
(38
|
)
|
-66
|
%
|
||||
|
Real
Estate
|
(14
|
)
|
(55
|
)
|
-75
|
%
|
||||
|
Agribusiness
and other
|
(4
|
)
|
(16
|
)
|
-75
|
%
|
||||
|
Total
Capital Expenditures
|
(31
|
)
|
(109
|
)
|
-72
|
%
|
||||
|
Other
Investing Activities, Net
|
--
|
(40
|
)
|
NM
|
||||||
|
Cash
Used in Investing Activities
|
$
|
(31
|
)
|
$
|
(149
|
)
|
-79
|
%
|
||
|
Debt
Repayments
|
(34
|
)
|
(16
|
)
|
2
|
X
|
||||
|
Repurchase
of Capital Stock
|
--
|
(59
|
)
|
NM
|
||||||
|
Dividends
Paid
|
(52
|
)
|
(51
|
)
|
2
|
%
|
||||
|
Other
Financing Activities, Net
|
(1
|
)
|
2
|
NM
|
||||||
|
Cash
Used in Financing Activities
|
$
|
(87
|
)
|
$
|
(124
|
)
|
-30
|
%
|
||
|
Net
Increase (Decrease) in Cash
|
$
|
(3
|
)
|
$
|
2
|
NM
|
||||
|
(1)
|
Excludes
non-cash 1031 exchange transactions and real estate development
activity.
|
Alexander
& Baldwin, Inc. is headquartered in Honolulu, Hawaii and is
engaged in ocean transportation and logistics services through its subsidiaries,
Matson Navigation Company, Inc., Matson Integrated Logistics, Inc. and Matson
Global Distribution Services; in real estate through A&B Properties, Inc.;
and in agribusiness through Hawaiian Commercial & Sugar Company and Kauai
Coffee Company, Inc. Additional information about A&B may be found at its
web site: www.alexanderbaldwin.com.
Statements in this press release that
are not historical facts are “forward-looking statements,” within the meaning of
the Private Securities Litigation Reform Act of 1995, that involve a number of
risks and uncertainties that could cause actual results to differ materially
from those contemplated by the relevant forward-looking statement. These
forward-looking statements are not guarantees of future performance. This
release should be read in conjunction with our Annual Report on Form 10-K and
our other filings with the SEC through the date of this release, which identify
important factors that could affect the forward-looking statements in this
release.
ALEXANDER
& BALDWIN, INC.
2009 and
2008 Fourth-Quarter and Full-Year Results (Condensed)
(In
Millions, Except Per Share Amounts, Unaudited)
|
2009
|
2008
|
|||||||
|
Three Months Ended December
31:
|
||||||||
|
Revenue
|
$
|
365.0
|
$
|
395.4
|
||||
|
Income
From Continuing Operations
|
$
|
5.7
|
$
|
9.3
|
||||
|
Discontinued
Operations: Properties1
|
$
|
14.4
|
$
|
14.6
|
||||
|
Net
Income
|
$
|
20.1
|
$
|
23.9
|
||||
|
Basic
Earnings Per Share
|
||||||||
|
Continuing
Operations
|
$
|
0.14
|
$
|
0.23
|
||||
|
Net
Income
|
$
|
0.49
|
$
|
0.58
|
||||
|
Diluted
Earnings Per Share
|
||||||||
|
Continuing
Operations
|
$
|
0.14
|
$
|
0.23
|
||||
|
Net
Income
|
$
|
0.49
|
$
|
0.58
|
||||
|
Basic
Weighted Average Shares Outstanding
|
41.0
|
41.1
|
||||||
|
Diluted
Weighted Average Shares Outstanding
|
41.3
|
41.2
|
||||||
|
2009
|
2008
|
|||||||
|
Year Ended December 31:
|
||||||||
|
Revenue
|
$
|
1,404.8
|
$
|
1,879.8
|
||||
|
Income
From Continuing Operations
|
$
|
11.9
|
$
|
89.6
|
||||
|
Discontinued
Operations: Properties1
|
$
|
32.3
|
$
|
42.8
|
||||
|
Net
Income
|
$
|
44.2
|
$
|
132.4
|
||||
|
Basic
Earnings Per Share
|
||||||||
|
Continuing
Operations
|
$
|
0.29
|
$
|
2.17
|
||||
|
Net
Income
|
$
|
1.08
|
$
|
3.21
|
||||
|
Diluted
Earnings Per Share
|
||||||||
|
Continuing
Operations
|
$
|
0.29
|
$
|
2.16
|
||||
|
Net
Income
|
$
|
1.08
|
$
|
3.19
|
||||
|
Basic
Weighted Average Shares Outstanding
|
41.0
|
41.2
|
||||||
|
Diluted
Weighted Average Shares Outstanding
|
41.1
|
41.5
|
||||||
1
“Discontinued Operations: Properties” consists of sales, or intended sales, of
certain lands and
buildings
that are material and have separately identifiable earnings and cash
flows.
Industry
Segment Data, Net Income (Condensed)
(In
Millions, Except Per Share Amounts, Unaudited)
|
Three Months Ended
|
Year Ended
|
||||||||||||
|
December 31,
|
December 31,
|
||||||||||||
|
Revenue:
|
2009
|
2008
|
2009
|
2008
|
|||||||||
|
Transportation
|
|||||||||||||
|
Ocean
Transportation
|
$
|
234.8
|
$
|
239.5
|
$
|
888.6
|
$
|
1,023.7
|
|||||
|
Logistics
Services
|
82.1
|
99.8
|
320.9
|
436.0
|
|||||||||
|
Real
Estate
|
|||||||||||||
|
Leasing
|
24.9
|
25.5
|
103.2
|
107.8
|
|||||||||
|
Sales
|
64.2
|
54.4
|
125.6
|
350.2
|
|||||||||
|
Less
Amounts Reported In Discontinued Operations
|
(60.4
|
)
|
(48.3
|
)
|
(124.2
|
)
|
(151.5
|
)
|
|||||
|
Agribusiness
|
27.6
|
28.1
|
107.0
|
124.3
|
|||||||||
|
Reconciling
Items
|
(8.2
|
)
|
(3.6
|
)
|
(16.3
|
)
|
(10.7
|
)
|
|||||
|
Total
Revenue
|
$
|
365.0
|
$
|
395.4
|
$
|
1,404.8
|
$
|
1,879.8
|
|||||
|
Operating Profit, Net
Income:
|
|||||||||||||
|
Transportation
|
|||||||||||||
|
Ocean
Transportation
|
$
|
13.5
|
$
|
21.1
|
$
|
58.3
|
$
|
105.8
|
|||||
|
Logistics
Services
|
1.2
|
4.1
|
6.7
|
18.5
|
|||||||||
|
Real
Estate
|
|||||||||||||
|
Leasing
|
10.0
|
10.2
|
43.2
|
47.8
|
|||||||||
|
Sales
|
20.4
|
19.3
|
39.1
|
95.6
|
|||||||||
|
Less
Amounts Reported In Discontinued Operations
|
(23.4
|
)
|
(23.6
|
)
|
(52.3
|
)
|
(69.3
|
)
|
|||||
|
Agribusiness
|
(0.8
|
)
|
(6.1
|
)
|
(27.8
|
)
|
(12.9
|
)
|
|||||
|
Total
Operating Profit
|
20.9
|
25.0
|
67.2
|
185.5
|
|||||||||
|
Interest
Expense
|
6.7
|
6.2
|
25.9
|
23.7
|
|||||||||
|
General
Corporate Expenses
|
6.3
|
4.6
|
21.8
|
21.0
|
|||||||||
|
Income
From Continuing Operations Before Income Taxes
|
7.9
|
14.2
|
19.5
|
140.8
|
|||||||||
|
Income
Taxes
|
2.2
|
4.9
|
7.6
|
51.2
|
|||||||||
|
Income
From Continuing Operations
|
5.7
|
9.3
|
11.9
|
89.6
|
|||||||||
|
Income
from Discontinued Operations
|
14.4
|
14.6
|
32.3
|
42.8
|
|||||||||
|
Net
Income
|
$
|
20.1
|
$
|
23.9
|
$
|
44.2
|
$
|
132.4
|
|||||
|
Basic
Earnings Per Share, Continuing Operations
|
$
|
0.14
|
$
|
0.23
|
$
|
0.29
|
$
|
2.17
|
|||||
|
Basic
Earnings Per Share, Net Income
|
$
|
0.49
|
$
|
0.58
|
$
|
1.08
|
$
|
3.21
|
|||||
|
Diluted
Earnings Per Share, Continuing Operations
|
$
|
0.14
|
$
|
0.23
|
$
|
0.29
|
$
|
2.16
|
|||||
|
Diluted
Earnings Per Share, Net Income
|
$
|
0.49
|
$
|
0.58
|
$
|
1.08
|
$
|
3.19
|
|||||
|
Basic
Weighted Average Shares Outstanding
|
41.0
|
41.1
|
41.0
|
41.2
|
|||||||||
|
Diluted
Weighted Average Shares Outstanding
|
41.3
|
41.2
|
41.1
|
41.5
|
|||||||||
Consolidated
Balance Sheets (Condensed)
(In
Millions, Unaudited)
|
December 31,
|
December 31,
|
||||||||
|
2009
|
2008
|
||||||||
|
ASSETS
|
|||||||||
|
Current
Assets
|
$
|
307
|
$
|
284
|
|||||
|
Investments
in Affiliates
|
242
|
208
|
|||||||
|
Real
Estate Developments
|
88
|
78
|
|||||||
|
Property,
Net
|
1,536
|
1,590
|
|||||||
|
Other
Assets
|
207
|
190
|
|||||||
|
Total
|
$
|
2,380
|
$
|
2,350
|
|||||
|
LIABILITIES
& EQUITY
|
|||||||||
|
Current
Liabilities
|
$
|
297
|
$
|
238
|
|||||
|
Long-Term
Debt, Non-Current Portion
|
406
|
452
|
|||||||
|
Employee
Benefit Plans
|
116
|
122
|
|||||||
|
Other
Long-Term Liabilities
|
48
|
52
|
|||||||
|
Deferred
Income Taxes
|
428
|
414
|
|||||||
|
Shareholders’
Equity
|
1,085
|
1,072
|
|||||||
|
Total
|
$
|
2,380
|
$
|
2,350
|
|||||