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PRNewswire 28-Feb-2023 4:05 PM
HONOLULU, Feb. 28, 2023 /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 fourth quarter and full-year of 2022.
Chris Benjamin, A&B chief executive officer, stated: "Our high-quality portfolio of grocery-anchored retail, industrial and ground lease assets continued to perform well in the fourth quarter, closing out a year of exceptional results. During 2022, commercial real estate ("CRE") portfolio Net Operating Income ("NOI") increased by 6.3% over 2021 to $117.8 million. Leasing activity remained robust as we finished the year with total leased occupancy of 95.0%, along with 4.4% full-year re-leasing spreads."
"We made meaningful progress in advancing our strategic agenda during the year as we closed on the sale of approximately 20,200 acres of non-core landholdings. While we haven't yet sold Grace Pacific, we took the decisive step in the fourth quarter of committing to a plan to sell and classifying the business as a discontinued operation. With our business simplification process nearly complete, we are focused on utilizing our strong balance sheet to expand our premier CRE portfolio. Redevelopment options within our portfolio, as well as a pipeline of potential acquisitions, give us confidence that we will be able to capitalize on opportunities across our target markets and preferred asset classes."
"Lastly, I would like to congratulate Lance Parker on his promotion to president and chief executive officer of A&B, effective July 1. Lance will maintain a keen focus on operating and growing our CRE platform, while I work to complete the Company's strategic transformation into a CRE company. I have the utmost confidence in Lance and our entire team to demonstrate the strength of the A&B platform and create value for shareholders in 2023 and beyond."
Change in Segments and Financial Presentation
During the fourth quarter of 2022, the Company changed its segment reporting in its financial statements to reflect how it now manages its continuing operations. The specific changes were made in conjunction with the Company presenting its materials and construction operations, including Grace Pacific, as held for sale and discontinued operations in its financial statements, pursuant to which the Company eliminated the former Materials & Construction segment and reclassified its joint venture interest in a materials company to the Land Operations segment.
The impact of the changes to the Company's segment reporting has been retrospectively reflected in the financial information for the prior periods presented in this release, resulting in changes in Land Operations segment Operating Profit (Loss) of $0.1 million and $(3.3) million during the three months ended December 31, 2022 and 2021, respectively. The full-year impact to Land Operations Operating Profit (Loss) was $2.7 million and $(2.5) million for the years ended December 31, 2022 and 2021, respectively. Prepaid expenses and other assets for Land Operations increased by $26.1 million and $23.4 million as of December 31, 2022 and 2021, as a result of the change in segment reporting. Additional information about these changes is included in the appendix.
Financial Results for Q4 and FY 2022
Commercial Real Estate (CRE) Highlights for Q4 and FY 2022
CRE Redevelopment
Land Operations
Balance Sheet, Market Value, Liquidity and Adjusted EBITDA
Dividend
2023 Full-Year Guidance
• Initial outlook for 2023 includes:
Core FFO per diluted share | $1.08 to $1.13 |
CRE Same-Store NOI | 2.0% to 4.0% |
CRE Same-Store NOI, excluding prior year reserve reversals | 5.0% to 6.5% |
Environmental, Social and Governance (ESG) Activity
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, 12 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 153-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:
Clayton Chun
(808) 525-6606
investorrelations@abhi.com
ALEXANDER & BALDWIN, INC. AND SUBSIDIARIES SEGMENT DATA & OTHER FINANCIAL INFORMATION (amounts in millions, except per share data; unaudited) | ||||||||
Three Months Ended | Year Ended December 31, | |||||||
2022 | 2021 | 2022 | 2021 | |||||
Operating Revenue: | ||||||||
Commercial Real Estate | $ 48.4 | $ 46.2 | $ 187.2 | $ 174.1 | ||||
Land Operations | 22.4 | 41.4 | 43.3 | 79.9 | ||||
Total operating revenue | 70.8 | 87.6 | 230.5 | 254.0 | ||||
Operating Profit (Loss): | ||||||||
Commercial Real Estate | 21.2 | 19.6 | 81.5 | 72.6 | ||||
Land Operations | 5.7 | 29.9 | (1.4) | 53.2 | ||||
Total operating profit (loss) | 26.9 | 49.5 | 80.1 | 125.8 | ||||
Gain (loss) on disposal of commercial real estate properties, net | — | 2.6 | — | 2.8 | ||||
Interest expense | (5.3) | (6.1) | (22.0) | (26.2) | ||||
Corporate and other expense | (5.6) | (8.2) | (39.3) | (27.0) | ||||
Income (Loss) from Continuing Operations Before Income Taxes | 16.0 | 37.8 | 18.8 | 75.4 | ||||
Income tax benefit (expense) | 0.2 | 0.1 | 18.3 | — | ||||
Income (Loss) from Continuing Operations | 16.2 | 37.9 | 37.1 | 75.4 | ||||
Income (loss) from discontinued operations, net of income taxes | (87.9) | (31.5) | (86.6) | (39.6) | ||||
Net Income (Loss) | $ (71.7) | $ 6.4 | $ (49.5) | $ 35.8 | ||||
Loss (income) attributable to discontinued noncontrolling interest | 0.1 | (0.1) | (1.1) | (0.4) | ||||
Net Income (Loss) Attributable to A&B Shareholders | $ (71.6) | $ 6.3 | $ (50.6) | $ 35.4 | ||||
Basic Earnings (Loss) Per Share of Common Stock: | ||||||||
Continuing operations available to A&B shareholders | $ 0.22 | $ 0.52 | $ 0.51 | $ 1.03 | ||||
Discontinued operations available to A&B shareholders | (1.21) | (0.44) | (1.21) | (0.55) | ||||
Net income (loss) available to A&B shareholders | $ (0.99) | $ 0.08 | $ (0.70) | $ 0.48 | ||||
Diluted Earnings (Loss) Per Share of Common Stock: | ||||||||
Continuing operations available to A&B shareholders | $ 0.22 | $ 0.51 | $ 0.50 | $ 1.03 | ||||
Discontinued operations available to A&B shareholders | (1.21) | (0.43) | (1.20) | (0.55) | ||||
Net income (loss) available to A&B shareholders | $ (0.99) | $ 0.08 | $ (0.70) | $ 0.48 | ||||
Weighted-Average Number of Shares Outstanding: | ||||||||
Basic | 72.5 | 72.5 | 72.6 | 72.5 | ||||
Diluted | 72.7 | 72.7 | 72.8 | 72.6 | ||||
Amounts Available to A&B Common Shareholders: | ||||||||
Continuing operations available to A&B common shareholders | $ 16.2 | $ 37.7 | $ 36.9 | $ 75.1 | ||||
Discontinued operations available to A&B common shareholders | (87.8) | (31.6) | (87.7) | (40.0) | ||||
Net income (loss) available to A&B common shareholders | $ (71.6) | $ 6.1 | $ (50.8) | $ 35.1 | ||||
ALEXANDER & BALDWIN, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in millions; unaudited) | ||||
December 31, | December 31, | |||
2022 | 2021 | |||
ASSETS | ||||
Real estate investments | ||||
Real estate property | $ 1,598.9 | $ 1,588.2 | ||
Accumulated depreciation | (202.3) | (180.5) | ||
Real estate property, net | 1,396.6 | 1,407.7 | ||
Real estate developments | 59.9 | 65.0 | ||
Investments in real estate joint ventures and partnerships | 7.5 | 8.8 | ||
Real estate intangible assets, net | 43.6 | 51.6 | ||
Real estate investments, net | 1,507.6 | 1,533.1 | ||
Cash and cash equivalents | 33.3 | 65.4 | ||
Restricted cash | 1.0 | 1.0 | ||
Accounts receivable and retention, net | 6.1 | 2.2 | ||
Other property, net | 2.5 | 17.9 | ||
Operating lease right-of-use assets | 5.4 | 7.0 | ||
Goodwill | 8.7 | 8.7 | ||
Other receivables | 6.9 | 11.6 | ||
Prepaid expenses and other assets | 89.0 | 78.2 | ||
Assets held for sale | 126.8 | 154.7 | ||
Total assets | $ 1,787.3 | $ 1,879.8 | ||
LIABILITIES AND EQUITY | ||||
Liabilities: | ||||
Notes payable and other debt | $ 472.2 | $ 530.8 | ||
Accounts payable | 4.5 | 3.4 | ||
Operating lease liabilities | 4.9 | 6.5 | ||
Accrued pension and post-retirement benefits | 10.1 | 56.3 | ||
Deferred revenue | 68.8 | 68.3 | ||
Accrued and other liabilities | 102.1 | 95.2 | ||
Liabilities associated with assets held for sale | 81.0 | 45.8 | ||
Redeemable Noncontrolling Interest | 8.0 | 6.9 | ||
Equity | 1,035.7 | 1,066.6 | ||
Total liabilities and equity | $ 1,787.3 | $ 1,879.8 | ||
ALEXANDER & BALDWIN, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED CASH FLOWS (amounts in millions; unaudited) | ||||
Year Ended December 31, | ||||
2022 | 2021 | |||
Cash Flows from Operating Activities: | ||||
Net income (loss) | $ (49.5) | $ 35.8 | ||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operations: | ||||
Loss (income) from discontinued operations | 86.6 | 39.6 | ||
Depreciation and amortization | 38.0 | 39.6 | ||
Income tax benefit related to pension termination and other, net | (18.1) | — | ||
Loss (gain) from disposals and asset transactions, net | (54.0) | (2.9) | ||
Impairment of assets | 5.0 | — | ||
Share-based compensation expense | 4.9 | 5.9 | ||
Equity in (income) loss from affiliates, net of operating cash distributions | (0.9) | (9.0) | ||
Pension termination | 76.9 | — | ||
Changes in operating assets and liabilities: | ||||
Trade and other receivables | (3.9) | 3.9 | ||
Inventories | 0.1 | (0.2) | ||
Prepaid expenses, income tax receivable and other assets | (1.8) | (4.7) | ||
Development/other property inventory | 10.5 | 8.7 | ||
Accrued pension and post-retirement benefits | (27.1) | (3.0) | ||
Accounts payable | 0.8 | (0.5) | ||
Accrued and other liabilities | (0.3) | 4.9 | ||
Operating cash flows from continuing operations | 67.2 | 118.1 | ||
Operating cash flows from discontinued operations | (33.2) | 6.1 | ||
Net cash provided by (used in) operations | 34.0 | 124.2 | ||
Cash Flows from Investing Activities: | ||||
Capital expenditures for acquisitions | — | (16.9) | ||
Capital expenditures for property, plant and equipment | (21.7) | (30.3) | ||
Proceeds from disposal of assets | 73.1 | 3.0 | ||
Payments for purchases of investments in affiliates and other investments | (0.5) | (1.2) | ||
Distributions of capital and other receipts from investments in affiliates and other investments | 0.1 | 149.5 | ||
Investing cash flows from continuing operations | 51.0 | 104.1 | ||
Investing cash flows from discontinued operations | (6.4) | (7.6) | ||
Net cash provided by (used in) investing activities | 44.6 | 96.5 | ||
Cash Flows from Financing Activities: | ||||
Proceeds from issuance of notes payable and other debt | — | 131.0 | ||
Payments of notes payable and other debt and deferred financing costs | (23.2) | (288.8) | ||
Borrowings (payments) on line-of-credit agreement, net | (38.0) | — | ||
Cash dividends paid | (57.7) | (46.6) | ||
Repurchases of common stock and other payments | (7.3) | (1.3) | ||
Financing cash flows from continuing operations | (126.2) | (205.7) | ||
Financing cash flows from discontinued operations | 11.0 | (1.4) | ||
Net cash provided by (used in) financing activities | (115.2) | (207.1) | ||
Cash, Cash Equivalents, Restricted Cash, and Cash included in Assets Held for Sale | ||||
Net increase (decrease) in cash, cash equivalents, restricted cash, and cash included in assets | (36.6) | 13.6 | ||
Balance, beginning of period | 71.0 | 57.4 | ||
Balance, end of period | $ 34.4 | $ 71.0 |
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 December 31, | Year Ended December 31, | |||||||||||
(amounts in millions; unaudited) | 2022 | 2021 | Change1 | 2022 | 2021 | Change1 | ||||||
CRE Operating Profit (Loss) | $ 21.2 | $ 19.6 | $ 1.6 | $ 81.5 | $ 72.6 | $ 8.9 | ||||||
Plus: Depreciation and amortization | 9.1 | 9.5 | (0.4) | 36.5 | 37.7 | (1.2) | ||||||
Less: Straight-line lease adjustments | (2.6) | (1.5) | (1.1) | (6.3) | (4.4) | (1.9) | ||||||
Less: Favorable/(unfavorable) lease | (0.3) | (0.4) | 0.1 | (1.1) | (0.9) | (0.2) | ||||||
Less: Termination income | — | (0.1) | 0.1 | (0.1) | (0.2) | 0.1 | ||||||
Plus: Other (income)/expense, net | 0.2 | — | 0.2 | 0.5 | (0.6) | 1.1 | ||||||
Plus: Selling, general, administrative and other | 1.6 | 1.7 | (0.1) | 6.8 | 6.5 | 0.3 | ||||||
NOI | 29.2 | 28.8 | 0.4 | 117.8 | 110.7 | 7.1 | ||||||
Less: NOI from acquisitions, dispositions, and | (0.2) | (0.1) | (0.1) | (0.7) | (0.2) | (0.5) | ||||||
Same-Store NOI | $ 29.0 | $ 28.7 | $ 0.3 | $ 117.1 | $ 110.5 | $ 6.6 | ||||||
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:
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 | Year Ended December 31, | |||||||
(amounts in millions; unaudited) | 2022 | 2021 | 2022 | 2021 | ||||
Net Income (Loss) available to A&B common shareholders | $ (71.6) | $ 6.1 | $ (50.8) | $ 35.1 | ||||
Depreciation and amortization of commercial real estate properties | 9.1 | 9.5 | 36.5 | 37.7 | ||||
Gain on the disposal of commercial real estate properties, net | — | (2.6) | — | (2.8) | ||||
Loss from discontinued operations, net of income taxes | 87.9 | 31.5 | 86.6 | 39.6 | ||||
Income (loss) attributable to discontinued noncontrolling interest | (0.1) | 0.1 | 1.1 | 0.4 | ||||
FFO | $ 25.3 | $ 44.6 | $ 73.4 | $ 110.0 | ||||
Exclude items not related to core business: | ||||||||
Land Operations operating (profit) loss | (5.7) | (29.9) | 1.4 | (53.2) | ||||
Income tax expense (benefit) | (0.2) | (0.1) | (18.3) | — | ||||
Non-core business interest expense | 2.8 | 2.9 | 11.0 | 12.7 | ||||
Pension termination - CRE and Corporate | — | — | 14.7 | — | ||||
Core FFO | $ 22.2 | $ 17.5 | $ 82.2 | $ 69.5 |
Reconciliations of Core FFO starting from Commercial Real Estate operating profit (loss) are as follows:
Three Months Ended | Year Ended December 31, | |||||||
(amounts in millions; unaudited) | 2022 | 2021 | 2022 | 2021 | ||||
Commercial Real Estate Operating Profit (Loss) | $ 21.2 | $ 19.6 | $ 81.5 | $ 72.6 | ||||
Depreciation and amortization of commercial real estate properties | 9.1 | 9.5 | 36.5 | 37.7 | ||||
Corporate and other expense | (5.6) | (8.2) | (39.3) | (27.0) | ||||
Core business interest expense | (2.5) | (3.2) | (11.0) | (13.5) | ||||
Distributions to participating securities | — | (0.2) | (0.2) | (0.3) | ||||
Pension termination - CRE and Corporate | — | — | 14.7 | — | ||||
Core FFO | $ 22.2 | $ 17.5 | $ 82.2 | $ 69.5 |
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 "Land Operations 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. Land Operations EBITDA is calculated by adjusting Land Operations operating profit (which excludes interest expense and income taxes) to add back depreciation and amortization recorded at the Land Operations segment.
The Company also adjusts Consolidated EBITDA or Land Operations EBITDA (to arrive at "Consolidated Adjusted EBITDA" or "Land Operations 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.
As an illustrative example, the Company identified non-cash pension termination charges as a non-recurring, infrequent or unusual item that is not expected to recur in the consolidated or segment's normal operations (or in the Company's core business). By excluding these items from Segment EBITDA and Consolidated EBITDA to arrive at Segment Adjusted EBITDA or Consolidated 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:
Year Ended December 31, | ||||
(amounts in millions, unaudited) | 2022 | 2021 | ||
Net Income (Loss) | $ (49.5) | $ 35.8 | ||
Adjustments: | ||||
Depreciation and amortization | 38.0 | 39.6 | ||
Interest expense | 22.0 | 26.2 | ||
Income tax expense (benefit) | (18.3) | — | ||
Depreciation and amortization related to discontinued operations | 5.8 | 10.8 | ||
Interest expense related to discontinued operations | 0.2 | 0.1 | ||
Consolidated EBITDA | $ (1.8) | $ 112.5 | ||
Asset impairments related to the Land Operations Segment | 5.0 | — | ||
Equity method investment impairment related to discontinued operations | — | 2.9 | ||
Pension termination | 76.9 | — | ||
(Income) loss from discontinued operations, net of income taxes and excluding | 80.6 | 28.7 | ||
Consolidated Adjusted EBITDA | $ 160.7 | $ 144.1 |
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. 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, the evaluation of alternatives by the Company related to its non-core assets and 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.
APPENDIX
During the fourth quarter of 2022, the Company changed its segment reporting in its financial statements to reflect how it now manages its continuing operations. The specific changes were made in conjunction with the Company presenting its materials and construction operations, including Grace Pacific, as held for sale and discontinued operations in its financial statements, pursuant to which the Company eliminated the former Materials & Construction segment and reclassified its joint venture interest in a materials company to the Land Operations segment. Below is a reconciliation of the changes that occurred as part of the segment realignment and discontinued operations for the years ended December 31, 2022 and 2021.
Unadjusted | As Reported | ||||||
Year Ended | Segment | Discontinued | Year Ended | ||||
December 31, 2022 | Realignment | Operations | December 31, 2022 | ||||
Operating Profit (Loss): | |||||||
Commercial Real Estate | $ 81.5 | $ — | $ — | $ 81.5 | |||
Land Operations | (4.5) | 2.7 | 0.4 | (1.4) | |||
Materials & Construction | (83.0) | (2.7) | 85.7 | — | |||
Total operating profit (loss) | $ (6.0) | $ — | $ 86.1 | $ 80.1 | |||
Gain (loss) on disposal of commercial | — | — | — | — | |||
Interest expense | (22.2) | — | 0.2 | (22.0) | |||
Corporate and other expense | (39.3) | — | — | (39.3) | |||
Income (Loss) from Continuing | $ (67.5) | $ — | $ 86.3 | $ 18.8 | |||
Income tax benefit (expense) | 18.3 | — | — | 18.3 | |||
Income (Loss) from Continuing | $ (49.2) | $ — | $ 86.3 | $ 37.1 | |||
Income (loss) from discontinued | (0.3) | — | (86.3) | (86.6) | |||
Net Income (Loss) | $ (49.5) | $ — | $ — | $ (49.5) | |||
Unadjusted | As Reported | ||||||
Year Ended | Segment | Discontinued | Year Ended | ||||
December 31, 2021 | Realignment | Operations | December 31, 2021 | ||||
Operating Profit (Loss): | |||||||
Commercial Real Estate | $ 72.6 | $ — | $ — | $ 72.6 | |||
Land Operations | 55.4 | (2.5) | 0.3 | 53.2 | |||
Materials & Construction | (40.5) | 2.5 | 38.0 | — | |||
Total operating profit (loss) | $ 87.5 | $ — | $ 38.3 | $ 125.8 | |||
Gain (loss) on disposal of commercial | 2.8 | — | — | 2.8 | |||
Interest expense | (26.3) | — | 0.1 | (26.2) | |||
Corporate and other expense | (27.1) | — | 0.1 | (27.0) | |||
Income (Loss) from Continuing | $ 36.9 | $ — | $ 38.5 | $ 75.4 | |||
Income tax benefit (expense) | — | — | — | — | |||
Income (Loss) from Continuing | $ 36.9 | $ — | $ 38.5 | $ 75.4 | |||
Income (loss) from discontinued | (1.1) | — | (38.5) | (39.6) | |||
Net Income (Loss) | $ 35.8 | $ — | $ — | $ 35.8 |
Below is a reconciliation of the changes that occurred as part of the segment realignment and discontinued operations for the quarters ended December 31, 2022 and 2021.
Unadjusted | As Reported | ||||||
Quarter Ended | Segment | Discontinued | Quarter Ended | ||||
December 31, 2022 | Realignment | Operations | December 31, 2022 | ||||
Operating Profit (Loss): | |||||||
Commercial Real Estate | $ 21.2 | $ — | $ — | $ 21.2 | |||
Land Operations | 5.5 | 0.1 | 0.1 | 5.7 | |||
Materials & Construction | (87.4) | (0.1) | 87.5 | — | |||
Total operating profit (loss) | $ (60.7) | $ — | $ 87.6 | $ 26.9 | |||
Interest expense | (5.4) | — | 0.1 | (5.3) | |||
Corporate and other expense | (5.6) | — | — | (5.6) | |||
Income (Loss) from Continuing | $ (71.7) | $ — | $ 87.7 | $ 16.0 | |||
Income tax benefit (expense) | 0.2 | — | — | 0.2 | |||
Income (Loss) from Continuing | $ (71.5) | $ — | $ 87.7 | $ 16.2 | |||
Income (loss) from discontinued | (0.2) | — | (87.7) | (87.9) | |||
Net Income (Loss) | $ (71.7) | $ — | $ — | $ (71.7) | |||
Unadjusted | As Reported | ||||||
Quarter Ended | Segment | Discontinued | Quarter Ended | ||||
December 31, 2021 | Realignment | Operations | December 31, 2021 | ||||
Operating Profit (Loss): | |||||||
Commercial Real Estate | $ 19.6 | $ — | $ — | $ 19.6 | |||
Land Operations | 33.1 | (3.3) | 0.1 | 29.9 | |||
Materials & Construction | (34.3) | 3.3 | 31.0 | — | |||
Total operating profit (loss) | $ 18.4 | $ — | $ 31.1 | $ 49.5 | |||
Gain (loss) on disposal of commercial | 2.6 | — | — | 2.6 | |||
Interest expense | (6.1) | — | — | (6.1) | |||
Corporate and other expense | (8.2) | — | — | (8.2) | |||
Income (Loss) from Continuing | $ 6.7 | $ — | $ 31.1 | $ 37.8 | |||
Income tax benefit (expense) | 0.1 | — | — | 0.1 | |||
Income (Loss) from Continuing | $ 6.8 | $ — | $ 31.1 | $ 37.9 | |||
Income (loss) from discontinued | (0.4) | — | (31.1) | (31.5) | |||
Net Income (Loss) | $ 6.4 | $ — | $ — | $ 6.4 |
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SOURCE Alexander & Baldwin, Inc.