Limoneira reports strong Q3 results
Agribusiness revenue for the third quarter of fiscal year 2014 includes $26.8 million in lemon sales, compared to $19.1 million of lemon sales during the same period of fiscal year 2013, primarily reflecting a higher average price per carton due to more favourable market conditions, as well as a small increase in cartons of lemons sold. The Company generated avocado sales of $6.1 million in the third quarter of fiscal year 2014, compared to $7.7 million in the same period of fiscal year 2013, reflecting lower pounds of avocados sold, partially offset by higher prices. The Company recognized $1.7 million of orange revenue in the third quarter of fiscal year 2014, compared to $1.5 million of orange revenue in the same period of fiscal year 2013, reflecting an increased number of field boxes sold at higher average prices per field box. Speciality citrus and other crop revenues were $470,000 in the third quarter of fiscal year 2014, compared to $296,000 in the third quarter of fiscal year 2013, primarily reflecting higher pistachio revenue compared to the third quarter of fiscal year 2013.
Operating income for the third quarter of fiscal year 2014 increased 34% to $13.4 million, compared to $10.0 million in the third quarter of the previous fiscal year.
Harold Edwards, President and Chief Executive Officer, stated, “We are pleased to report strong results for the third quarter, which is our seasonally strongest quarter of the year. Total revenue grew by 22%, highlighting our expanding agribusiness, particularly our lemon sales, which increased 40% on a year over year basis on higher than historical average lemon prices. Our solid operating results have generated almost a 70% increase in Adjusted EBITDA and a 100% increase in operating income for the nine months ended July 31, 2014. Our year to date operating cash flow of $17.8 million has enabled us to make significant investments into growing our business and pay down long term debt by $10 million, which strengthens our balance sheet for additional strategic investments. Based on our strong performance in quarter and outlook for the final quarter of the year, we are raising our full year guidance.
“We have recently made a number of important investments, including the acquisition of a citrus packing operation in Yuma, Arizona and our investment in Rosales S.A., a citrus packing operation in La Serena, Chile. These acquisitions strengthen the foundation of our core agribusiness and are consistent with our year-round global supplier of lemons strategy. With our increased packing capacity, we are well positioned to further improve our agribusiness sales and operating income going forward, and we remain focused on capitalizing on opportunities to expand our agribusiness acreage with selective and strategic acquisitions of orchards, both in the United States and internationally.”
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