Alexander & Baldwin (ALEX) swung to a net profit for the quarter ended Mar. 31, 2017. The company has made a net profit of $6.30 million, or $ 0.14 a share in the quarter, against a net loss of $7.50 million, or $0.14 a share in the last year period.
Revenue during the quarter went up marginally by 1.97 percent to $93.20 million from $91.40 million in the previous year period.
Total expenses were $75.70 million for the quarter, up 2.99 percent or $2.20 million from year-ago period. Operating margin for the quarter contracted 81 basis points over the previous year period to 18.78 percent.
Operating income for the quarter was $17.50 million, compared with $17.90 million in the previous year period.
Revenue from real estate activities during the quarter declined 3.16 percent or $1.10 million to $33.70 million. Revenue from sale of real estate was $11 million for the quarter, up 83.33 percent or $5 million.
Income from operating leases during the quarter dropped 3.16 percent or $1.10 million to $33.70 million.
Other income during the quarter was $48.50 million, down 4.15 percent or $2.10 million from year-ago period.
"We made important strategic progress in the first quarter as we continued to identify and execute on growth opportunities in our Commercial Real Estate "CRE" segment and advanced our evaluation of a possible REIT conversion. Within CRE, same-store net operating income "NOI" improved compared to last year’s first quarter. In addition, we renewed two major leases on favorable terms, moved forward redevelopment projects at Lau Hala Shops and Pearl Highlands Center and, importantly, announced the development of Ho'okele Shopping Center, a 94,000-square-foot, Safeway-anchored retail center in Kahului, Maui��"all of which will advance our strategic objective of increasing recurring earnings from our commercial portfolio," said Chris Benjamin, president & chief executive officer. "REIT evaluation costs and other organizational initiatives will continue to weigh on consolidated earnings for the balance of the year, but underlying CRE performance was strong. Land Operations posted a modest loss due primarily to a noncash write down of a solar facility investment to account for tax benefits received, while Materials & Construction was challenged by lower material sales and paving margins."
Operating cash flow turns negativeAlexander & Baldwin has spent $10.60 million cash to meet operating activities during the quarter as against cash inflow of $5.50 million in the last year period. The company has spent $13.60 million cash to meet investing activities during the quarter as against cash outgo of $97.20 million in the last year period.
Cash flow from financing activities was $37.30 million for the quarter, down 60.28 percent or $56.60 million, when compared with the last year period.
Total assets declined 6.83 percent or $158.40 million to $2,160.60 million on Mar. 31, 2017. On the other hand, total liabilities were at $935.30 million as on Mar. 31, 2017, down 14 percent or $152.20 million from year-ago.
Return on assets moved up 4 basis points to 0.50 percent in the quarter. Return on equity was at 0.52 percent in the quarter against a negative 0.61 percent in the last year period.
Debt comes down significantlyTotal debt was at $511.20 million as on Mar. 31, 2017, down 25.23 percent or $172.50 million from year-ago. Shareholders equity was almost stable over the past one year at $1,214.50 million on Mar. 31, 2017. As a result, debt to equity ratio went down 14 basis points to 0.42 percent in the quarter.
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