Previous Statements by ALEX
» Alexander & Baldwin's CEO Discusses Q1 2012 Results - Earnings Call Transcript
» Alexander & Baldwin's CEO Hosts Analyst Day (Transcript)
» Alexander & Baldwin's Management Host Matson Sell-Side Analyst Day (Transcript)
» Alexander & Baldwin's CEO Discusses Q4 2011 Results - Earnings Call Transcript
Statements in this call and presentation are not guarantees of future performance, and we do not undertake any obligation to update our forward-looking statements.Management will be referring to non-GAAP financial measures when discussing results for the quarter. In particular, we will be referring to adjusted net income and diluted earnings per share that exclude the impact of separation expenses and a non-cash reduction in the carrying values of two mainland development projects. We will also be referring to cash net operating income. Included in the appendix of today's slide presentation are reconciliations of these GAAP to non-GAAP financial measures, and a statement regarding our use of these measures. Slides from this presentation are available for your download at our website www.alexanderbaldwin.com. This slide provides you an agenda for our presentation, after which we will take your questions. We'll start with Stan, who will comment on the quarter. Stan Kuriyama Thank you everyone for joining us today. As you know, this is our first call since the separation of our land and transportation businesses on June 29. We remain very excited about our company's prospects, and we are pleased by the number of positive value creating events that have occurred since the first quarter. For those of you not completely familiar with the new A&B, our overarching strategy is to leverage both our extensive track record, and experience in Hawaii, and our strong financial position to optimize the value of our substantial real estate assets, and to maximize long term growth and shareholder value. We will accomplish this through a coordinated program of building and realizing value in our historic land holdings, through our planning entitlement and sale activities; investing in high return real estate opportunities in Hawaii, building our development pipeline for market recovery, increasing the cash flow and profitability of our commercial portfolio, and over time, migrating the commercial portfolio back to Hawaii and derisking the earnings stream from our agri business segment.
We know that until we see a full recovery in our real estate markets, earnings from our development and sales activity will be relatively modest. We do however expect to create shareholder value throughout the cycle, by our investments in Hawaii and the other strategic initiatives I just mentioned and we will highlight our progress on these initiatives in our earnings calls.There were two primary separation related impacts reflected in this quarters financial results. First, most of the costs to affect the separation were incurred in the second quarter, about $4.4 million. Second, as a result of our strategic decision to focus our future development activity, almost exclusively at Hawaii, we evaluated the three development projects we have on the mainland, and recorded a non-cash write down at two of those projects. The write downs amounted to $9.8 million, leaving the two projects with a book basis of $12.9 million. The third project has a book basis of about $4.7 million. Excluding the net of tax effects of these charges, A&B's net income for the second quarter was $5.5 million or $0.13 a share. Notwithstanding our focus on separation and the resulted impact on second quarter financial results, our operations performed well in the quarter. Performance in our leasing and agribusiness segments were steady, and we achieved a number of positive milestones in our operating businesses, which Chris will highlight in his remarks. An important part of the investment thesis for A&B, is that Hawaii is at a positive inflexion point in the economic cycle. Tourism which of course is the state's primary economic driver, continues to perform at an extraordinary level. Through June 2012, total visitor expenditures were up 21%, compared to last year. Visitor arrivals were also up for the same period by 10%, with increased arrivals from all major markets. Results so far this year put tourism on track to set the stage all time high for expenditures and arrivals. Read the rest of this transcript for free on seekingalpha.com