Achieves 17% increase in Same-Store NOI and
38% increase in Core FFO per share over the prior year
quarter
HONOLULU, May 5, 2022
/PRNewswire/ -- Alexander & Baldwin, Inc. (NYSE: ALEX)
("A&B" or "Company"), a Hawai'i-based company focused on owning
and operating high-quality commercial real estate in Hawai'i, today
announced financial results for the first quarter of 2022.
Chris Benjamin, A&B president
& chief executive officer stated: "Our commercial real estate
("CRE") business posted exceptional results in the first quarter,
continuing to build on the momentum experienced since early last
year. Tenant performance improved across our high-quality portfolio
of grocery-anchored retail, industrial and ground lease assets and
contributed to strong tenant collections, including collections of
previously-reserved receivable balances. Robust leasing demand
continued, with leasing spreads of 8.8% for new comparable leases,
and total leased occupancy climbed 70 basis points from one year
ago, to 94.5% at quarter end. As county and state COVID-related
restrictions came to an end during March, the outlook for the
balance of 2022 is strong."
"Progress also was made during the first quarter on our
strategic agenda as we continued to capitalize on the favorable
market for Hawai'i real estate and monetize non-CRE assets. During
the period, we closed on the sale of 3.9 acres at Maui Business
Park II and approximately 173 acres of other non-core landholdings.
At Grace Pacific, we are pleased with the improved results for the
quarter and are optimistic for continued growth in earnings.
Further, our strong and flexible balance sheet has enabled us to
pivot toward growing our CRE portfolio and we are actively
expanding our acquisitions pipeline."
"The excellent performance of our CRE business to start the year
plus a favorable full-year outlook supports a one-cent increase in our quarterly dividend and a
positive revision of our guidance. We are proud of the outstanding
work of our employees and their commitment to driving superior
portfolio performance as we focus on executing our growth
strategy."
Financial Results for Q1 2022
- Net income available to A&B common shareholders and diluted
earnings per share were $10.5 million
and $0.14 per share, respectively,
compared to $9.9 million and
$0.14 per share in the same quarter
of 2021.
- Nareit-defined Funds From Operations ("FFO") and FFO
per-diluted share were $19.7 million
and $0.27 per share, respectively,
compared to $19.2 million and
$0.26 per share in the same quarter
of 2021.
- Core FFO and Core FFO per-diluted share were $20.8 million and $0.29 per share, respectively, compared to
$15.4 million and $0.21 per share in the same quarter of 2021.
Commercial Real Estate (CRE) Highlights for Q1
2022
- CRE revenue of $46.1 million was
$6.2 million, or 15.5%, more than the
$39.9 million result in the same
quarter of 2021.
- CRE NOI of $29.8 million was $4.5
million, or 17.8%, more than the $25.3 million result in the same quarter of
2021.
- Same-Store NOI of $29.6 million
was $4.3 million, or 17.0%, more than
the $25.3 million result in the same
quarter of 2021.
- The Company executed a total of 69 standard leases, covering
approximately 362,900 square feet of gross leasable area ("GLA").
Leasing spreads for all comparable leases were 3.2% portfolio-wide
for the first quarter of 2022, and 8.8% for new comparable
leases.
- Significant standard leases executed included:
-
-
- A 180,900 square foot long-term renewal of the largest tenant
at Pearl Highlands Center, sustaining the 99.8% leased occupancy of
the property.
-
-
- Two leases at Harbor Industrial totaling approximately 33,000
square feet of GLA.
-
-
- A 26,500 square foot lease at Komohana Industrial Park,
sustaining the 100% occupancy of the property.
-
-
- Ten leases related to properties located in Kailua, including Aikahi Park Shopping Center,
totaling approximately 11,600 square feet of GLA.
- Overall leased occupancy was 94.5% as of March 31, 2022, an increase of 70 basis points
compared to March 31, 2021.
Same-Store leased occupancy was 94.4% as of March 31, 2022, an increase of 60 basis points
compared to March 31, 2021.
-
-
- Both leased and Same-Store leased occupancy in the retail
portfolio were 93.1% as of March 31,
2022, an increase of 120 basis points compared to
March 31, 2021, primarily due to
robust leasing activity at Pearl Highlands Center and The Shops at
Kukui'ula.
-
-
- Both leased and Same-Store leased occupancy in the industrial
portfolio were 98.0% as of March 31,
2022, an increase of 20 basis points compared to
March 31, 2021, primarily due to
positive incremental leasing activity at Harbor Industrial and
Kaka'ako Commerce Center.
CRE Redevelopment
- Aikahi Park Shopping Center redevelopment efforts continue on
schedule toward a fourth quarter of 2022 target stabilization, with
tenant build-out and additional refresh work underway to provide
the surrounding residents and center visitors with a vibrant mix of
community-focused dining, shopping and service options.
- Manoa Marketplace repositioning project has commenced and is in
the design phase. Plans are to improve the visitor experience at
this well-located neighborhood center while incorporating
sustainable design and building elements.
- Work has commenced on the 1.3-megawatt rooftop solar
installation at Pearl Highlands Center. This renewable energy
project aligns with the Company's ESG commitment and goal of owning
and operating sustainable properties, and represents the first of a
pipeline of solar projects across our CRE portfolio.
Land Operations
- Operating loss and Adjusted Earnings Before Interest, Taxes,
Depreciation and Amortization ("Adjusted EBITDA") were $0.1 million and $2.8
million, respectively, compared to operating profit of
$11.4 million and Adjusted EBITDA of
$11.7 million in the first quarter of
2021. First quarter 2022 results included settlement charges of
$2.3 million related to certain
benefit payments made from the master trust as a result of the
pension plan termination process.
- The Company advanced monetization efforts in the first quarter
of 2022, including the following disposition activity:
- 3.9 acres at Maui Business Park II
- Approximately 173 acres of other non-core landholdings
Materials & Construction (M&C)
- M&C operating profit was $3.2
million in the first quarter of 2022, as compared to a
$4.0 million loss in the first
quarter of 2021.
- M&C Adjusted EBITDA was $4.1
million for the first quarter of 2022, as compared to
$(1.4) million for the first quarter
of 2021, with Grace Pacific contributing Adjusted EBITDA of
$1.9 million and other M&C
business adding $2.2 million for the
quarter. The improved performance reflected the impact of higher
paving activity, as well as elevated non-recurring income from a
joint venture materials company.
- The Company continues to evaluate strategic options for the
businesses within the M&C segment.
Balance Sheet, Market Value, Adjusted EBITDA and
Liquidity
- As of March 31, 2022, the Company
had an equity market capitalization of $1.7
billion and $522.2 million in
total debt, for a total market capitalization of approximately
$2.2 billion. The Company's
debt-to-total market capitalization was 23.7% as of March 31, 2022. The Company's debt has a
weighted-average maturity of 3.9 years, with a weighted-average
interest rate of 4.1%. 100% of the Company's debt was at fixed
rates.
- The Company reported consolidated Adjusted EBITDA of
$143.1 million for the twelve-month
period ended March 31, 2022, compared
to $96.6 million for the same period
ended March 31, 2021. Net Debt to TTM
(trailing twelve months) consolidated Adjusted EBITDA was 3.4 times
as of March 31, 2022, compared to 6.4
times for the same period last year.
- As of March 31, 2022, the Company
had total liquidity of $482.6
million, consisting of cash on hand of $33.7 million and $448.9
million available on its committed line of credit.
Dividend
- The Company's Board declared a second quarter 2022 dividend of
$0.20 per share, an increase of
$0.01 per share, payable on
July 6, 2022, to shareholders of
record as of the close of business on June
17, 2022. This second consecutive quarterly dividend
increase reflects strong first quarter CRE results and expected
performance for the remainder of 2022.
2022 Full-Year Guidance
- The Company revised its annual 2022 guidance to reflect its
improved outlook as follows:
|
2022
Guidance
|
|
Revised
|
Prior
|
Core FFO per diluted
share
|
$1.01 to
$1.07
|
$0.94 to
$1.00
|
CRE Same-Store
NOI
|
2% to
4%
|
0% to 2%
|
CRE Same-Store NOI,
excluding
prior year reserve reversals
|
3% to
5%
|
2% to 4%
|
ABOUT ALEXANDER & BALDWIN
Alexander & Baldwin, Inc. (NYSE: ALEX) (A&B) is the
only publicly-traded real estate investment trust to focus
exclusively on Hawai'i commercial real estate and is the state's
largest owner of grocery-anchored, neighborhood shopping centers.
A&B owns, operates and manages approximately 3.9 million square
feet of commercial space in Hawai'i, including 22 retail centers,
11 industrial assets and four office properties, as well as 141
acres of ground leases. A&B is expanding and strengthening its
Hawai'i CRE portfolio and achieving its strategic focus on
commercial real estate by monetizing its remaining non-core assets.
Over its 152-year history, A&B has evolved with the state's
economy and played a leadership role in the development of the
agricultural, transportation, tourism, construction, residential
and commercial real estate industries. Learn more about A&B at
www.alexanderbaldwin.com.
Contact:
Brett A. Brown
(808) 525-8475
investorrelations@abhi.com
ALEXANDER &
BALDWIN, INC. AND SUBSIDIARIES
|
SEGMENT DATA &
OTHER FINANCIAL INFORMATION
|
(amounts in millions,
except per share data; unaudited)
|
|
|
|
Three Months Ended March 31,
|
|
|
2022
|
|
2021
|
Operating Revenue:
|
|
|
|
|
Commercial Real Estate
|
|
$
46.1
|
|
$
39.9
|
Land Operations
|
|
12.9
|
|
17.1
|
Materials & Construction
|
|
39.2
|
|
24.0
|
Total operating
revenue
|
|
98.2
|
|
81.0
|
Operating Profit (Loss):
|
|
|
|
|
Commercial Real Estate
|
|
20.6
|
|
15.4
|
Land Operations
|
|
(0.1)
|
|
11.4
|
Materials & Construction
|
|
3.2
|
|
(4.0)
|
Total operating profit
(loss)
|
|
23.7
|
|
22.8
|
Gain (loss) on disposal of commercial real estate properties,
net
|
|
—
|
|
0.2
|
Interest expense
|
|
(5.7)
|
|
(7.0)
|
Corporate and other expense
|
|
(7.0)
|
|
(6.0)
|
Income (Loss) from Continuing Operations Before
Income Taxes
|
|
11.0
|
|
10.0
|
Income tax benefit (expense)
|
|
—
|
|
(0.1)
|
Income (Loss) from Continuing
Operations
|
|
11.0
|
|
9.9
|
Net Income (Loss)
|
|
11.0
|
|
9.9
|
Loss (income) attributable to noncontrolling
interest
|
|
(0.5)
|
|
—
|
Net Income (Loss) Attributable to A&B
Shareholders
|
|
$
10.5
|
|
$
9.9
|
|
|
|
|
|
Basic Earnings (Loss) Per Share of Common
Stock:
|
|
|
|
|
Continuing operations available to A&B
shareholders
|
|
$
0.14
|
|
$
0.14
|
Net income (loss) available to
A&B shareholders
|
|
$
0.14
|
|
$
0.14
|
Diluted Earnings (Loss) Per Share of Common
Stock:
|
|
|
|
|
Continuing operations available to A&B
shareholders
|
|
$
0.14
|
|
$
0.14
|
Net income (loss) available to
A&B shareholders
|
|
$
0.14
|
|
$
0.14
|
|
|
|
|
|
Weighted-Average Number of Shares
Outstanding:
|
|
|
|
|
Basic
|
|
72.6
|
|
72.5
|
Diluted
|
|
72.8
|
|
72.6
|
|
|
|
|
|
Amounts Available to A&B Common
Shareholders:
|
|
|
|
|
Continuing operations available to A&B common
shareholders
|
|
$
10.5
|
|
$
9.9
|
Net income (loss) available to
A&B common shareholders
|
|
$
10.5
|
|
$
9.9
|
ALEXANDER &
BALDWIN, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(amounts in millions;
unaudited)
|
|
|
|
March 31,
|
|
December 31,
|
|
|
2022
|
|
2021
|
ASSETS
|
|
|
|
|
Real estate investments
|
|
|
|
|
Real estate property
|
|
$
1,590.9
|
|
$
1,588.2
|
Accumulated
depreciation
|
|
(187.8)
|
|
(180.5)
|
Real estate property,
net
|
|
1,403.1
|
|
1,407.7
|
Real estate
developments
|
|
61.9
|
|
65.0
|
Investments in real estate
joint ventures and partnerships
|
|
8.8
|
|
8.8
|
Real estate intangible assets,
net
|
|
49.4
|
|
51.6
|
Real estate
investments, net
|
|
1,523.2
|
|
1,533.1
|
Cash and cash equivalents
|
|
33.7
|
|
70.0
|
Restricted cash
|
|
1.0
|
|
1.0
|
Accounts receivable and retention, net
|
|
37.6
|
|
28.9
|
Inventories
|
|
26.1
|
|
20.3
|
Other property, net
|
|
83.8
|
|
83.5
|
Operating lease right-of-use assets
|
|
19.3
|
|
20.1
|
Goodwill
|
|
8.7
|
|
8.7
|
Other receivables
|
|
13.1
|
|
11.6
|
Prepaid expenses and other assets
|
|
108.1
|
|
102.6
|
Total assets
|
|
$
1,854.6
|
|
$
1,879.8
|
|
|
|
|
|
LIABILITIES AND EQUITY
|
|
|
|
|
Liabilities:
|
|
|
|
|
Notes payable and other debt
|
|
$
522.2
|
|
$
532.7
|
Accounts payable
|
|
13.2
|
|
9.9
|
Operating lease liabilities
|
|
18.9
|
|
19.4
|
Accrued pension and post-retirement benefits
|
|
56.1
|
|
56.3
|
Deferred revenue
|
|
70.0
|
|
68.5
|
Accrued and other liabilities
|
|
96.4
|
|
119.5
|
Redeemable Noncontrolling
Interest
|
|
7.4
|
|
6.9
|
Equity
|
|
1,070.4
|
|
1,066.6
|
Total liabilities and
equity
|
|
$
1,854.6
|
|
$
1,879.8
|
ALEXANDER &
BALDWIN, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED CASH FLOWS
|
(amounts in millions;
unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
2022
|
|
2021
|
Cash Flows from
Operating Activities:
|
|
|
|
|
Net
income (loss)
|
|
$
11.0
|
|
$
9.9
|
Adjustments to reconcile net income (loss) to net cash
provided by (used in) operations:
|
|
|
|
|
Depreciation and
amortization
|
|
11.3
|
|
12.6
|
Loss (gain) from disposals and asset transactions,
net
|
|
—
|
|
(0.3)
|
Share-based compensation
expense
|
|
1.5
|
|
1.4
|
Equity in (income) loss from
affiliates, net of operating cash distributions
|
|
(1.6)
|
|
(2.1)
|
Settlement charge related to
pension plan termination
|
|
3.2
|
|
—
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Trade, contracts retention, and other contract
receivables
|
|
(6.8)
|
|
5.4
|
Inventories
|
|
(5.8)
|
|
(8.8)
|
Prepaid expenses, income tax receivable and other
assets
|
|
(5.7)
|
|
(1.0)
|
Development/other property inventory
|
|
3.1
|
|
2.2
|
Accrued pension and post-retirement benefits
|
|
0.8
|
|
0.9
|
Accounts payable
|
|
2.5
|
|
0.8
|
Accrued and other liabilities
|
|
(6.2)
|
|
(0.4)
|
Net
cash provided by (used in) operations
|
|
7.3
|
|
20.6
|
|
|
|
|
|
Cash Flows from
Investing Activities:
|
|
|
|
|
Capital expenditures for property, plant and
equipment
|
|
(3.8)
|
|
(5.2)
|
Proceeds from disposal of assets
|
|
—
|
|
0.5
|
Payments for purchases of investments in affiliates and other
investments
|
|
(0.1)
|
|
(0.6)
|
Distributions of capital and other receipts from investments
in affiliates and other investments
|
|
—
|
|
15.7
|
Net cash provided by (used in)
investing activities
|
|
(3.9)
|
|
10.4
|
|
|
|
|
|
Cash Flows from
Financing Activities:
|
|
|
|
|
Payments of notes payable and other debt and deferred
financing costs
|
|
(10.5)
|
|
(37.7)
|
Borrowings (payments) on line-of-credit agreement,
net
|
|
—
|
|
4.0
|
Cash dividends paid
|
|
(27.0)
|
|
(21.8)
|
Proceeds from issuance (repurchase) of capital stock and
other, net
|
|
(2.2)
|
|
(0.7)
|
Net cash provided by (used in)
financing activities
|
|
(39.7)
|
|
(56.2)
|
|
|
|
|
|
Cash, Cash
Equivalents and Restricted Cash
|
|
|
|
|
Net
increase (decrease) in cash, cash equivalents and restricted
cash
|
|
(36.3)
|
|
(25.2)
|
Balance, beginning of period
|
|
71.0
|
|
57.4
|
Balance, end of
period
|
|
$
34.7
|
|
$
32.2
|
USE OF NON-GAAP FINANCIAL MEASURES
The Company uses non-GAAP measures when evaluating operating
performance because management believes that they provide
additional insight into the Company's and segments' core operating
results, and/or the underlying business trends affecting
performance on a consistent and comparable basis from period to
period. These measures generally are provided to investors as an
additional means of evaluating the performance of ongoing core
operations. The non-GAAP financial information presented herein
should be considered supplemental to, and not as a substitute for
or superior to, financial measures calculated in accordance with
GAAP.
NOI is a non-GAAP measure used internally in evaluating the
unlevered performance of the Company's Commercial Real Estate
portfolio. The Company believes NOI provides useful information to
investors regarding the Company's financial condition and results
of operations because it reflects only the contract-based income
and cash-based expense items that are incurred at the property
level. When compared across periods, NOI can be used to determine
trends in earnings of the Company's properties as this measure is
not affected by non-contract-based revenue (e.g., straight-line
lease adjustments required under GAAP); by non-cash expense
recognition items (e.g., the impact of depreciation and
amortization expense or impairments); or by other expenses or gains
or losses that do not directly relate to the Company's ownership
and operations of the properties (e.g., indirect selling, general,
administrative and other expenses, as well as lease termination
income). The Company believes the exclusion of these items from
operating profit (loss) is useful because the resulting measure
captures the contract-based revenue that is realizable (i.e.,
assuming collectability is deemed probable) and the direct
property-related expenses paid or payable in cash that are incurred
in operating the Company's Commercial Real Estate portfolio, as
well as trends in occupancy rates, rental rates and operating
costs. NOI should not be viewed as a substitute for, or superior
to, financial measures calculated in accordance with GAAP.
The Company reports NOI and Occupancy on a Same-Store basis,
which includes the results of properties that were owned and
operated for the entirety of the prior calendar year and current
reporting period, year-to-date. The Company believes that reporting
on a Same-Store basis provides investors with additional
information regarding the operating performance of comparable
assets separate from other factors (such as the effect of
developments, redevelopments, acquisitions or dispositions).
Reconciliations of Commercial Real Estate operating profit
(loss) to Commercial Real Estate NOI and Same-Store NOI are as
follows:
|
|
Three Months Ended
March 31,
|
|
|
(amounts in millions;
unaudited)
|
|
2022
|
|
2021
|
|
Change1
|
Commercial Real
Estate Operating Profit (Loss)
|
|
$
20.6
|
|
$
15.4
|
|
$
5.2
|
Plus: Depreciation and amortization
|
|
9.2
|
|
9.5
|
|
(0.3)
|
Less: Straight-line lease adjustments
|
|
(1.4)
|
|
(0.8)
|
|
(0.6)
|
Less: Favorable/(unfavorable) lease amortization
|
|
(0.2)
|
|
(0.2)
|
|
—
|
Plus: Other (income)/expense, net
|
|
—
|
|
(0.1)
|
|
0.1
|
Plus: Selling, general, administrative and other
expenses
|
|
1.6
|
|
1.5
|
|
0.1
|
Commercial Real
Estate NOI
|
|
29.8
|
|
25.3
|
|
4.5
|
Less: NOI from acquisitions, dispositions, and other
adjustments
|
|
(0.2)
|
|
—
|
|
(0.2)
|
Commercial Real
Estate Same-Store NOI
|
|
$
29.6
|
|
$
25.3
|
|
$
4.3
|
1 Amounts in
this table are rounded to the nearest tenth of a million, but
percentages were calculated based on thousands. Accordingly, a
recalculation of
some percentages, if based on the reported data, may be slightly
different.
|
FFO is presented by the Company as a widely used non-GAAP
measure of operating performance for real estate companies. The
Company believes that, subject to the following limitations, FFO
provides a supplemental measure to net income (calculated in
accordance with GAAP) for comparing its performance and operations
to those of other REITs. FFO does not represent an alternative to
net income calculated in accordance with GAAP. In addition, FFO
does not represent cash generated from operating activities in
accordance with GAAP, nor does it represent cash available to pay
distributions and should not be considered as an alternative to
cash flow from operating activities, determined in accordance with
GAAP, as a measure of the Company's liquidity. The Company presents
different forms of FFO:
- Core FFO represents a non-GAAP measure relevant to the
operating performance of the Company's commercial real estate
business (i.e., its core business). Core FFO is calculated by
adjusting CRE operating profit to exclude items in a manner
consistent with FFO (i.e., depreciation and amortization related to
real estate included in CRE operating profit) and to make further
adjustments to include expenses not included in CRE operating
profit but that are necessary to accurately reflect the operating
performance of its core business (i.e., corporate expenses and
interest expense attributable to this core business) or to exclude
items that are non-recurring, infrequent, unusual and unrelated to
the core business operating performance (i.e., not likely to recur
within two years or has not occurred within the prior two years).
The Company believes such adjustments facilitate the comparable
measurement of the Company's core operating performance over time.
The Company believes that Core FFO, which is a supplemental
non-GAAP financial measure, provides an additional and useful means
to assess and compare the operating performance of REITs.
- FFO represents the Nareit-defined non-GAAP measure for the
operating performance of the Company as a whole. The Company's
calculation refers to net income (loss) available to A&B common
shareholders as its starting point in the calculation of FFO.
The Company presents both non-GAAP measures and reconciles each
to the most directly-comparable GAAP measure as well as reconciling
FFO to Core FFO. The Company's FFO and Core FFO may not be
comparable to FFO non-GAAP measures reported by other REITs. These
other REITs may not define the term in accordance with the current
Nareit definition or may interpret the current Nareit definition
differently.
Reconciliations of net income (loss) available to A&B common
shareholders to FFO and Core FFO are as follows:
|
|
Three Months Ended
March 31,
|
(amounts in millions;
unaudited)
|
|
2022
|
|
2021
|
Net income (loss)
available to A&B common shareholders
|
|
$
10.5
|
|
$
9.9
|
Depreciation and amortization of commercial real estate
properties
|
|
9.2
|
|
9.5
|
Gain on the disposal of commercial real estate properties,
net
|
|
—
|
|
(0.2)
|
FFO
|
|
$
19.7
|
|
$
19.2
|
Exclude items not
related to core business:
|
|
|
|
|
Land Operations Operating (Profit) Loss
|
|
0.1
|
|
(11.4)
|
Materials & Construction Operating (Profit)
Loss
|
|
(3.2)
|
|
4.0
|
Income (loss) attributable to noncontrolling
interest
|
|
0.5
|
|
—
|
Income tax expense (benefit)
|
|
—
|
|
0.1
|
Non-core business interest expense
|
|
2.8
|
|
3.5
|
CRE
and Corporate settlement costs related to pension plan
termination
|
|
0.9
|
|
—
|
Core
FFO
|
|
$
20.8
|
|
$
15.4
|
Reconciliations of Core FFO starting from Commercial Real Estate
operating profit (loss) are as follows:
|
|
Three Months Ended
March 31,
|
(amounts in millions;
unaudited)
|
|
2022
|
|
2021
|
Commercial Real
Estate Operating Profit (Loss)
|
|
$
20.6
|
|
$
15.4
|
Depreciation and amortization of commercial real estate
properties
|
|
9.2
|
|
9.5
|
Corporate and other expense
|
|
(7.0)
|
|
(6.0)
|
CRE
and Corporate settlement costs related to pension plan
termination
|
|
0.9
|
|
—
|
Core business interest expense
|
|
(2.9)
|
|
(3.5)
|
Core
FFO
|
|
$
20.8
|
|
$
15.4
|
The Company may report various forms of Earnings Before
Interest, Taxes, Depreciation and Amortization ("EBITDA"), on a
consolidated basis or a segment basis (e.g., "Consolidated EBITDA"
or "Materials & Construction EBITDA"), as non-GAAP measures
used by the Company in evaluating the Company's and segments'
operating performance on a consistent and comparable basis from
period to period. The Company provides this information to
investors as an additional means of evaluating the performance of
the Company's and segments' ongoing operations.
Consolidated EBITDA is calculated by adjusting the Company's
consolidated net income (loss) to exclude the impact of interest
expense, income taxes and depreciation and amortization. Materials
& Construction EBITDA is calculated by adjusting Materials
& Construction operating profit (which excludes interest
expense and income taxes) to add back depreciation and amortization
recorded at the M&C segment.
The Company also adjusts Consolidated EBITDA or Materials &
Construction EBITDA (to arrive at "Consolidated Adjusted EBITDA" or
"M&C Adjusted EBITDA") for items identified as non-recurring,
infrequent or unusual that are not expected to recur in the
Company's core business or segment's normal operations. In addition
to the aforementioned adjustments, the Company further adjusts
Materials & Construction EBITDA to exclude income attributable
to noncontrolling interests as presented in its consolidated
statements of operations.
As illustrative examples, the Company identified non-cash
long-lived asset impairments recorded in different businesses
within the M&C segment as non-recurring, infrequent or unusual
items that are not expected to recur in the segment's normal
operations. By excluding these items from Materials &
Construction EBITDA to arrive at M&C Adjusted EBITDA, the
Company believes it provides meaningful supplemental information
about its core operating performance and facilitates comparisons to
historical operating results. Such non-GAAP measures should not be
viewed as a substitute for, or superior to, financial measures
calculated in accordance with GAAP.
Reconciliations of the Company's consolidated net income to
Consolidated EBITDA and Consolidated Adjusted EBITDA are as
follows:
|
|
TTM March
31,
|
(amounts in millions,
unaudited)
|
|
2022
|
|
2021
|
Net Income
(Loss)
|
|
$
36.9
|
|
$
9.5
|
Adjustments:
|
|
|
|
|
Depreciation and amortization
|
|
49.1
|
|
52.3
|
Interest expense
|
|
25.0
|
|
29.5
|
Income tax expense (benefit)
|
|
(0.1)
|
|
(0.3)
|
Consolidated
EBITDA
|
|
$
110.9
|
|
$
91.0
|
Equity method investment impairment related to the Materials
& Construction Segment
|
|
2.9
|
|
—
|
Asset impairments related to the Materials & Construction
Segment
|
|
26.1
|
|
5.6
|
Settlement costs related to pension plan
termination
|
|
3.2
|
|
—
|
Consolidated
Adjusted EBITDA
|
|
$
143.1
|
|
$
96.6
|
Reconciliations of Materials & Construction operating profit
(loss) to Materials & Construction EBITDA and Materials &
Construction Adjusted EBITDA are as follows:
|
Three Months Ended
March 31,
|
(amounts in millions;
unaudited)
|
2022
|
|
2021
|
Materials &
Construction Operating Profit (Loss)
|
$
3.2
|
|
$
(4.0)
|
Materials & Construction depreciation and
amortization
|
1.4
|
|
2.6
|
Materials &
Construction EBITDA
|
4.6
|
|
(1.4)
|
Loss (income) attributable to noncontrolling
interest
|
(0.5)
|
|
—
|
Materials &
Construction Adjusted EBITDA1
|
$
4.1
|
|
$
(1.4)
|
|
|
|
|
1 See above
for a discussion of management's use of non-GAAP financial measures
and reconciliations from GAAP to non-GAAP measures.
|
FORWARD-LOOKING STATEMENTS
Statements in this release that are not historical facts are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and involve a number of
risks and uncertainties that could cause actual results to differ
materially from those contemplated by the relevant forward-looking
statements. These forward-looking statements include, but are not
limited to, statements regarding possible or assumed future results
of operations, business strategies, growth opportunities and
competitive positions, as well as the rapidly changing challenges
with, and the Company's plans and responses to, the coronavirus
pandemic ("COVID-19") and related economic disruptions. Such
forward-looking statements speak only as of the date the statements
were made and are not guarantees of future performance.
Forward-looking statements are subject to a number of risks,
uncertainties, assumptions and other factors that could cause
actual results and the timing of certain events to differ
materially from those expressed in or implied by the
forward-looking statements. These factors include, but are not
limited to, prevailing market conditions and other factors related
to the Company's REIT status and the Company's business, risks
associated with COVID-19 and its impact on the Company's
businesses, results of operations, liquidity and financial
condition, the evaluation of alternatives by the Company related to
its materials and construction business, and the risk factors
discussed in the Company's most recent Form 10-K, Form 10-Q and
other filings with the Securities and Exchange Commission. The
information in this release should be evaluated in light of these
important risk factors. We do not undertake any obligation to
update the Company's forward-looking statements.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/alexander--baldwin-inc-reports-first-quarter-2022-results-301541266.html
SOURCE Alexander & Baldwin, Inc.