HONOLULU, May 7, 2015 /PRNewswire/ -- Alexander & Baldwin, Inc. (NYSE:ALEX) ("A&B" or "Company") today announced net income for the first quarter of 2015 of $25.3 million, or $0.51 per diluted share.

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Earnings for the first quarter of 2015 were driven by strong sales activity, including the sales of 328 units at the Company's Waihonua joint venture project in Kaka'ako, a 4-acre Maui Business Park parcel and two Kahala Avenue parcels. In addition, Leasing operating profit for the first quarter of 2015 was 12% higher than last year due to improvements in same-store performance and the addition of the 204,400-square-foot Kaka'ako Commerce Center in December 2014. Materials & Construction operating profit was double that of the first quarter of 2014 due primarily to increased material sales and improved weather conditions that allowed for increased paving activity.

Earnings for the first quarter of 2014 were $0.20 per diluted share higher than the first quarter of 2015 due primarily to a large commercial property sale that occurred in the first quarter of 2014.

Revenue for the first quarter of 2015 was $150.7 million compared to revenue of $94.8 million for the first quarter of last year, as revenue from the aforementioned 2014 commercial property sale was included in discontinued operations.

"The Company performed well in the first quarter with all segments contributing to strong overall results," said Stanley M. Kuriyama, A&B chairman and chief executive officer. "First quarter results reflect the realization of value creating investments we made over the past several years in our development projects, Hawaii commercial properties and complementary businesses -- namely, the close out of sales at our Waihonua condominium project in Kaka'ako, parcel sales at Maui Business Park and Kahala Avenue, and improved performance from our Kailua Portfolio and Grace Pacific."

"We expect these positive trends in development sales and commercial property performance to continue during the year, and are optimistic that a strong Hawaii economy will continue to provide additional opportunities to realize value in the near-term and create investment opportunities for the future."

OPERATIONAL HIGHLIGHTS

Positive sales activity continues at various development projects. At the Company's next condominium project in Kaka'ako -- The Collection -- 94% of the 450 units released for sale have been sold under binding contracts. Two parcel sales totaling 13.4 acres at Maui Business Park are under binding contract: 11 acres to Lowe's, which is expected to close in the third quarter, and 2.4 acres to Pacific Pipe Co., a local pipe wholesale and retail distributor, which is scheduled to close in the second quarter. Two Kahala Avenue parcels -- an oceanfront and a mountainside -- are scheduled to close in May, which would bring total Kahala Avenue property sales to 20, for total revenue of approximately $120 million. Of the remaining 10 properties, four (nearly 70% of the portfolio's remaining saleable square footage) are oceanfront parcels. The Company continues to see positive sales activity at Kukui'ula on Kauai. In addition to three units that closed in the first quarter, the Company has binding contracts for 14 units (13 are expected to close throughout 2015 and one in the first quarter of 2016). Fifteen homes are under construction at the project under various building initiatives, and mass grading of a 26-acre site for an additional 24 custom lots and a planned 20-unit condominium project has begun.

Improved same-store performance and the addition of the 204,400-square-foot Kaka'ako Commerce Center to the portfolio in December 2014 drove an 11.9% increase in operating profit and a 6.6%(1) improvement in NOI in the first quarter of 2015 compared to the first quarter of 2014. The Company expects these trends in same-store performance to continue throughout 2015 and projects full-year 2015 NOI growth of between 6% and 8%. First quarter 2015 occupancy for both the Hawaii and Mainland portfolios were 94%, compared to 94% and 93%, respectively, for the first quarter of 2014.

Operating profit and EBITDA for the Materials & Construction segment for the first quarter of 2015 were $7.2 million and $9.5 million(1), respectively, compared to $3.4 million and $7.2 million(1), respectively, for the first quarter of 2014. The improved performance was principally the result of higher material sales and increased paving activity due in part to improved weather conditions. Grace's backlog at the end of March 2015 was $206.1 million(2), 6.1% lower than at the end of 2014 due to the timing of government bid award activity. The pace of City bid activity has recently picked up, and planned federal (military and transportation) and state highways bids are expected to provide additional opportunities to build the backlog as the year progresses.

ANALYSIS OF FINANCIAL RESULTS

REAL ESTATE

Real Estate Leasing and Development & Sales revenue and operating profit are analyzed before subtracting amounts related to discontinued operations. This is consistent with how the Company evaluates performance and makes decisions regarding capital allocation, acquisitions and dispositions. Direct year-over-year comparison of Real Estate Development & Sales results may not provide a consistent, measurable indicator of future performance because results from period to period are significantly affected by the mix and timing of property sales. Operating results, by virtue of each project's asset class, geography and timing, are inherently variable. Earnings from joint venture investments are not included in segment revenue, but are included in operating profit.



    Real Estate Leasing - First quarter of 2015 compared with 2014


                                                     Quarter Ended March 31,
                                                     -----------------------

                (dollars
                   in
               millions)                   2015                     2014           Change
               ---------                   ----                     ----           ------

    Revenue                                        $32.7                                  $31.2       4.8%

     Operating
     profit                                        $13.2                                  $11.8      11.9%

     Operating
     profit
     margin                               40.4%                             37.8%
     ---------                             ----                               ----

    NOI(1)

    Hawaii                                         $16.3                                  $15.2       7.2%

    Mainland                                4.6                                4.4              4.5%
                                            ---                                ---

    Total                                          $20.9                                  $19.6       6.6%
    -----                                          -----                                  -----        ---

     Average
     occupancy
     rates:

    Hawaii                                  94%                               94%

    Mainland                                94%                               93%

    Total                                   94%                               93%
    -----                                   ---                                ---

     Leasable
     space

     -
     at
     period
     end

     Hawaii
     improved
     (million
     sq.
     ft.)                                   2.6                                2.4

     Mainland
     improved
     (million
     sq.
     ft.)                                   2.5                                2.5

     Total
     improved
     (million
     sq.
     ft.)                                   5.1                                4.9
                                            ===                                ===

     Total
     Hawaii
     urban
     ground
     leases
     (acres)                                115                                116
     -------                                ===                                ===

Real Estate Leasing revenue and operating profit for the first quarter of 2015 were 4.8% and 11.9% higher, respectively, than 2014, primarily due to increases in same-store performance, but also due to the addition of the 204,400-square-foot Kaka'ako Commerce Center to the portfolio in December 2014.



    Real Estate Development & Sales - First quarter of 2015 compared with 2014


                                                                       Quarter Ended March 31,
                                                                       -----------------------

               (dollars in millions)                      2015                      2014             Change
               --------------------                       ----                      ----             ------

    Improved property sales
     revenue                                                         $4.3                                   $70.1      (93.9)%

    Development sales revenue                             23.2                                     -              NM

    Unimproved/other property
     sales revenue                                         9.0                                   0.9               10X
                                                           ---                                   ---

    Total revenue                                                   $36.5                                   $71.0      (48.6)%
    -------------                                                   -----                                   -----       ------

    Operating profit before
     joint ventures                                                  $9.2                                   $53.2      (82.7)%

    Earnings (losses) from
     joint ventures                                       22.8                                 (0.9)              NM
                                                          ----                                  ----

    Total operating profit                                          $32.0                                   $52.3      (38.8)%
    ----------------------                                          -----                                   -----       ------

Revenue and operating profit for the first quarter of 2015 were $36.5 million and $32.0 million, respectively, and were principally related to the sales of a 4-acre parcel at Maui Business Park, two Kahala Avenue parcels, a 46,500-square-foot retail property in Colorado, a non-core parcel on Maui and a vacant 22-acre parcel in Santa Barbara, California. Proceeds from the sale of the Colorado retail property were used to partially fund the December 2014 purchase of the Kaka'ako Commerce Center. Operating profit also included the following joint venture unit sales: all 328 remaining units at the 340-unit Waihonua condominium on Oahu (12 units closed in December 2014), two units at Ka Milo on Hawaii Island, the last unit at Kai Malu at Wailea on Maui, and three units at Kukui'ula on Kauai, partially offset by joint venture expenses. Revenue and operating profit for the first quarter of 2015 were lower than last year due to a large commercial property sale that occurred in the first quarter of 2014.

MATERIALS & CONSTRUCTION



    Materials & Construction - First quarter of 2015 compared with 2014


                                                 Quarter Ended March 31,
                                                 -----------------------

              (dollars
                 in
             millions)                 2015                     2014           Change
             ---------                 ----                     ----           ------

    Revenue                                    $56.9                                  $50.1        13.6%

     Operating
     profit                                     $7.2                                   $3.4       111.8%

     Operating
     profit
     margin                           12.7%                              6.8%

    EBITDA(1)                           9.5                                7.2              31.9%
    --------                            ---                                ---               ----



                               March 31,                  December 31,
                               ---------                  ------------

            (dollars
                in
            millions) 2015               2014        Change                    2014 Change
            --------- ----               ----        ------                    ---- ------

    Backlog(2)             $206.1             $257.4                   (19.9)%            $219.4  (6.1)%
    ---------              ------             ------                    ------             ------   -----

The Materials & Construction segment reported revenue and operating profit for the first quarter of 2015 was $56.9 million and $7.2 million, respectively, compared to $50.1 million and $3.4 million, respectively, for the first quarter of 2014. The increases were due primarily to increased material sales and increased paving activity that was in part due to improved weather compared to the first quarter of last year.

AGRIBUSINESS

The quarterly results of the Agribusiness segment are subject to fluctuations from a number of factors, including the timing of sugar deliveries, which typically commence after the first quarter of each year. Additionally, each delivery is generally priced independently, which could result in significant variations in margins between deliveries. Accordingly, quarterly results are not indicative of the results that may be achieved for a full year.



    Agribusiness - First quarter 2015 compared with 2014


                                              Quarter Ended March 31,
                                              -----------------------

              (dollars
                 in
             millions)                             2015                 2014 Change
             ---------                             ----                 ----

    Revenue                                                  $28.9            $12.9   124.0%

     Operating
     profit                                                   $1.9             $3.0  (36.7)%

     Operating
     profit
     margin                                        6.6%               23.3%
     ---------                                      ---                 ----

    Tons
     sugar
     produced                                     3,200                1,400  128.6%

    Tons
     sugar
     sold
     (raw
     and
     specialty
     sugar)                                      37,100                2,400     15X
    ----------                                   ------                -----     ---

Agribusiness revenue for the first quarter of 2015 was $16.0 million higher than the first quarter of 2014 as HC&S completed one bulk shipment of raw sugar in the first quarter of 2015, while there was no bulk shipment in the first quarter of 2014. This increase was partially offset by lower power revenues resulting from a contractual reduction in power supplied by HC&S to Maui Electric Company (MECO) during peak hours, a reduction in pricing for power sold to MECO, and a lower volume of hydro power delivered on Kauai due to a decrease in rainfall compared to the first quarter of last year.

Operating profit for the first quarter of 2015 was $1.9 million, compared to $3.0 million for the first quarter of 2014. The decline in operating profit was due primarily to lower power margins, partially offset by higher raw sugar and molasses margins due to lower operating costs and higher molasses volume.

Although sugar production for the first quarter of 2015 was higher than the same period last year, both periods were impacted by poor weather on Maui that delayed the start of the harvest. Poor weather conditions continue to impact 2015 sugar production.

OTHER INCOME STATEMENT ITEMS



                                 Quarter Ended March 31,
                                 -----------------------

           (dollars in millions)      2015               2014
           --------------------       ----               ----

    Interest expense                             $7.1           $7.2    (1.4)%

    General corporate expenses                   $5.6           $5.2      7.7%

    Income tax expense

    Continuing operations                       $15.6           $0.8       20X

    Discontinued operations              $          -         $21.9  (100.0)%

    Total income tax expense                    $15.6          $22.7   (31.3)%
    ------------------------                    -----          -----    ------

First quarter 2015 interest expense was $7.1 million, compared to $7.2 million for the first quarter of 2014. Corporate expenses were $5.6 million for the first quarter of 2015, compared to $5.2 million for the first quarter of 2014. The increase was due principally to increased professional services and compensation and benefits expenses.

Total income tax expense for the first quarter of 2015 of $15.6 million was lower than the first quarter of 2014 due to lower income.





         (1)    See pages 10 and 11 for a
                 discussion of management's use of
                 non-GAAP financial measures and
                 required reconciliations from GAAP
                 to non-GAAP measures.

         (2)    Backlog represents the amount of
                 revenue that Grace and Maui
                 Paving, LLC, a 50-percent-owned
                 non-consolidated affiliate,
                 expect to realize on contracts
                 awarded, primarily related to
                 asphalt paving and, to a lesser
                 extent, Grace's consolidated
                 revenue from its construction-
                 and traffic-control-related
                 products. Backlog includes
                 estimated revenue from the
                 remaining portion of contracts not
                 yet completed, as well as revenue
                 from approved change orders. The
                 length of time that projects
                 remain in backlog can span from a
                 few days for a small volume of
                 work to 36 months for large paving
                 contracts and contracts performed
                 in phases. Backlog as of March 31,
                 2015 and 2014, and December 31,
                 2014 included $30.2 million, $34.7
                 million, and $38.1 million,
                 respectively, of backlog from Maui
                 Paving, LLC.



                                     ALEXANDER & BALDWIN, INC. AND SUBSIDIARIES

                                    CONDENSED INDUSTRY SEGMENT DATA, NET INCOME

                                 (In Millions, Except Per Share Amounts, Unaudited)


                                                    Three Months Ended March 31,
                                                    ----------------------------

    Revenue:                                           2015                    2014
    --------                                           ----                    ----

    Real Estate3:

    Leasing                                                      $32.7                      $31.2

    Development &
     Sales                                             36.5                            71.0

    Less amounts
     reported in
     discontinued
     operations                                           -                         (70.4)

    Materials &
     Construction                                      56.9                            50.1

    Agribusiness                                       28.9                            12.9

    Reconciling item4                                 (4.3)                              -
                                                       ----                             ---

    Total revenue                                               $150.7                      $94.8
                                                                ------                      -----


    Operating profit, net income:
    -----------------------------

    Real Estate(3):

    Leasing                                                      $13.2                      $11.8

    Development &
     Sales                                             32.0                            52.3

    Less amounts
     reported in
     discontinued
     operations                                           -                         (56.2)

    Materials &
     Construction                                       7.2                             3.4

    Agribusiness                                        1.9                             3.0
                                                        ---                             ---

    Total operating
     profit                                            54.3                            14.3

    Interest expense                                  (7.1)                          (7.2)

    General corporate
     expenses                                         (5.6)                          (5.2)

    Reduction in KRS
     II carrying
     value                                            (0.1)                              -
                                                       ----                             ---

    Income from
     continuing
     operations
     before income
     taxes                                             41.5                             1.9

    Income tax
     expense                                           15.6                             0.8
                                                       ----                             ---

    Income from
     continuing
     operations                                        25.9                             1.1

    Income from
     discontinued
     operations, net
     of income taxes                                      -                           34.3
                                                        ---                           ----

    Net income                                         25.9                            35.4

    Income
     attributable to
     non-controlling
     interest                                         (0.6)                          (0.4)

    Net income
     attributable to
     A&B shareholders                                            $25.3                      $35.0
                                                                 =====                      =====


    Basic earnings per share
     attributable to A&B shareholders:
    ----------------------------------

    Continuing
     operations                                                  $0.52                      $0.01

    Net income                                                   $0.52                      $0.72


    Diluted earnings per share
     attributable to A&B shareholders:
    ----------------------------------

    Continuing
     operations                                                  $0.51                      $0.01

    Net income                                                   $0.51                      $0.71


    Weighted average number of shares
     outstanding:
    ---------------------------------

    Basic                                              48.8                            48.7

    Diluted                                            49.3                            49.2


         (3)    Prior period amounts adjusted
                 for amounts treated as
                 discontinued operations.

           4     Represents the deduction of
                 revenue from the sale of a
                 46,500-square-foot retail
                 property in Colorado that is
                 classified as "Gain on sale of
                 improved property" in the
                 Condensed Consolidated
                 Statements of Income, but
                 reflected as revenue for
                 segment reporting purposes.



                         ALEXANDER & BALDWIN, INC. AND SUBSIDIARIES

                            CONDENSED CONSOLIDATED BALANCE SHEET

                                  (In Millions, Unaudited)


                                   March 31, 2015                   December 31,
                                                                       2014
                                   --------------               -------------

    Assets

    Current
     assets                                            $179.2                        $175.9

     Investments
     in
     affiliates                             403.4                            418.6

    Real
     estate
     developments                           199.1                            224.0

    Property,
     net                                  1,296.0                          1,301.7

     Intangible
     assets,
     net                                     61.7                             63.9

    Goodwill                                102.3                            102.3

    Other
     assets                                  46.5                             43.5

                                                     $2,288.2                      $2,329.9
                                                     ========                      ========


    Liabilities & equity

    Current
     liabilities                                       $148.5                        $183.0

    Long-
     term
     debt,
     non-
     current
     portion                                589.7                            631.5

    Deferred
     income
     taxes                                  205.8                            194.0

    Accrued
     pension
     and
     post-
     retirement
     benefits                                54.7                             54.8

    Other
     non-
     current
     liabilities                             50.5                             51.8

    Equity                                1,239.0                          1,214.8

                                                     $2,288.2                      $2,329.9
                                                     ========                      ========



                              ALEXANDER & BALDWIN, INC. AND SUBSIDIARIES

                                       CONDENSED CASH FLOW TABLE

                                       (In Millions, Unaudited)


                                         Three Months Ended March 31,
                                         ----------------------------

                                            2015                    2014
                                            ----                    ----


    Cash flows
     from in
     operating
     activities:                                      $26.8                       $(29.4)


    Cash flows from investing
     activities:

    Capital
     expenditures
     for property,
     plant and
     equipment                             (8.6)                          (8.5)

    Proceeds from
     investment
     tax credits
     and grants
     related to
     Port Allen
     Solar Farm                                -                            3.5

    Proceeds from
     disposal of
     property and
     other assets                            5.1                             0.4

    Proceeds from
     disposals
     related to
     1031
     commercial
     property
     transactions                            4.6                            69.4

    Payments for
     purchases of
     investments
     in affiliates                        (11.1)                          (5.0)

    Proceeds from
     investments
     in affiliates                          33.4                             0.5

    Change in
     restricted
     cash
     associated
     with 1031
     transactions                              -                          (2.8)
                                             ---                           ----

    Net cash
     provided by
     investing
     activities                                       $23.4                         $57.5
                                                      -----                         -----


    Cash flows from financing
     activities:

    Proceeds from
     the issuance
     of long-term
     debt                                             $20.0                         $45.0

    Payments of
     long-term
     debt and
     deferred
     financing
     costs                                (68.5)                         (11.0)

    Proceeds from
     (payments of)
     line-of-
     credit
     agreements,
     net                                     3.3                          (58.0)

    Dividends paid                         (3.6)                          (1.9)

    Proceeds from
     issuance
     (repurchase)
     of capital
     stock and
     other, net                            (0.8)                              -

    Net cash used
     in financing
     activities                                     $(49.6)                      $(25.9)
                                                     ------                        ------

    Net increase
     in cash and
     cash
     equivalents                                       $0.6                          $2.2
                                                       ====                          ====

USE OF NON-GAAP FINANCIAL MEASURES

The Company presents NOI, which is a non-GAAP measure derived from Real Estate Leasing revenue (determined in accordance with GAAP, less straight-line rental adjustments) minus property operating expenses (determined in accordance with GAAP). NOI does not have any standardized meaning prescribed by GAAP, and therefore, may differ from definitions of NOI used by other companies. The Company provides this information to investors as an additional means of evaluating ongoing core operations. NOI should not be considered as an alternative to net income (determined in accordance with GAAP) as an indicator of the Company's financial performance, or as an alternative to cash flow from operating activities as a measure of the Company's liquidity. NOI is commonly used as a measure of operating performance because it is an indicator of the return on property investment, and provides a method of comparing property performance over time. NOI excludes general and administrative expenses, straight-line rental adjustments, interest income, interest expense, depreciation and amortization, and gains on sales of interests in real estate. The Company believes that the Real Estate Leasing segment's operating profit after discontinued operations is the most directly comparable GAAP measurement to NOI. A reconciliation of Real Estate Leasing operating profit to Real Estate Leasing segment NOI is as follows:



                                   Three Months Ended March 31,
                                   ----------------------------

             (dollars in millions)   2015                      2014
                                     ----                      ----

    Real Estate Leasing
     segment operating
     profit before
     discontinued
     operations                               $13.2                        $11.8

        Less amounts reported
         in discontinued
         operations (pre-
         tax)                           -                           (0.3)
                                      ---                            ----

    Real Estate Leasing
     segment operating
     profit after
     subtracting
     discontinued
     operations                               $13.2                        $11.5

        Adjustments:

        Depreciation and
         amortization                 7.2                              7.1

        Straight-line lease
         adjustments                (0.6)                           (0.5)

        General and
         administrative
         expenses                     1.1                              1.2

        Discontinued
         operations                     -                             0.3

        Real Estate Leasing
         segment NOI                          $20.9                        $19.6
                                              =====                        =====

        Percent change over
         prior comparative
         period                      6.6%
                                      ===

The Company presents EBITDA for the Materials & Construction segment, which is a non-GAAP measure. The Company uses EBITDA when evaluating operating performance for the Materials & Construction segment because management believes that it provides insight into the segment's core operating results, future cash flow generation, and the underlying business trends affecting 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 segment's 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. The Company believes that Materials & Construction operating profit is the most directly comparable GAAP measurement to the segment's EBITDA. A reconciliation of segment operating profit to EBITDA follows:



                                   Three Months        Three Months
                                       Ended                Ended
                                  -------------       -------------

            (dollars in millions) March 31, 2015      March 31, 2014
                                  --------------      --------------

    Operating profit                             $7.2                       $3.4

    Depreciation &
     amortization expense                    2.9                        4.2

    Income attributable to
     non-controlling
     interest                              (0.6)                     (0.4)
                                            ----                       ----

    EBITDA*                                      $9.5                       $7.2
                                                 ====                       ====


    *            The Company reported adjusted
                 EBITDA of $6.9 million for the
                 three months ended March 31,
                 2014, which included $0.3
                 million of negative purchase
                 price allocation adjustments of
                 EBITDA. In the second quarter
                 of 2014, the Company
                 discontinued reporting adjusted
                 EBITDA as the impacts of
                 purchase price allocation
                 adjustments on EBITDA became de
                 minimis.

ABOUT ALEXANDER & BALDWIN

Alexander & Baldwin, Inc. is a Hawaii-based public company, with interests in real estate development, commercial real estate, agriculture, materials and infrastructure construction. With ownership of over 88,000 acres in Hawaii, A&B is the state's fourth largest private landowner, and one of the state's most active real estate investors. The Company manages a portfolio comprising five million square feet of leasable space in Hawaii and on the U.S. Mainland and is the second largest owner of retail assets in the state. It owns and operates the state's only sugar plantation. A&B is also Hawaii's largest materials company and paving contractor. Additional information about A&B may be found at www.alexanderbaldwin.com.

FORWARD-LOOKING STATEMENTS

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 pages 17-30 of Alexander & Baldwin, Inc.'s 2014 Form 10-K and 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. We do not undertake any obligation to update our forward-looking statements.

Contact:
Suzy Hollinger
808.525.8422
shollinger@abinc.com

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SOURCE Alexander & Baldwin, Inc.