Kaanapali Land LLC reported significant financial changes in its 10-Q filing for the three and nine months ended September 30, 2024. The company experienced a substantial decline in revenues, with total revenues for the three months at $402,000, down from $1,532,000 in the same period of 2023. For the nine months, revenues decreased to $1,366,000 from $4,600,000 year-over-year. This decline is primarily attributed to reduced coffee sales following the devastating Lahaina wildfire that began on August 8, 2023, which destroyed the company's 19-acre Pioneer Mill site, disrupting operations and impacting the processing and sale of coffee crops.

Total expenses for the three months ended September 30, 2024, were $1,925,000, a decrease from $5,296,000 in the prior year. However, for the nine months, total expenses increased to $7,432,000 from $3,784,000, reflecting ongoing operational challenges and increased costs associated with recovery efforts from the wildfire. The company reported an operating loss of $(1,523,000) for the third quarter, an improvement from $(3,764,000) in the same quarter of 2023, but a significant operating loss of $(6,066,000) for the nine months compared to a profit of $816,000 in the previous year.

Net loss for the three months ended September 30, 2024, was $(321,000), contrasting with a net income of $280,000 in the same period of 2023. For the nine months, net income fell to $678,000 from $3,669,000 year-over-year. The company’s cash and cash equivalents decreased slightly to $25,481,000 as of September 30, 2024, from $26,260,000 at the end of 2023.

Strategically, Kaanapali Land is navigating the aftermath of the wildfire, with ongoing insurance claims and initial payments received totaling approximately $6 million. The company has relocated its offices and is planning to move its coffee mill to Kaanapali. Additionally, Kaanapali Land is exploring alternative agricultural operations to mitigate the impact of the wildfire on its revenue streams.

The company’s property segment reported revenues of $78,000 for the three months ended September 30, 2024, down from $98,000 in 2023, while the agriculture segment saw revenues drop significantly. The company is also involved in ongoing legal matters, including a Demand for Arbitration related to an Infrastructure Improvement Agreement, which may materially impact its financial results.

Overall, Kaanapali Land LLC is facing challenges due to external market conditions and operational disruptions, while actively working on recovery and strategic adjustments to stabilize its financial performance.