Limoneira first quarter lemon sales increase 19% to $26 Million
For the first quarter of fiscal year 2017, revenue increased 12% to $28.1 million, compared to revenue of $25.0 million in the first quarter of the previous fiscal year. Agribusiness revenue was $26.8 million, compared to $23.6 million in the first quarter last year, primarily due to stronger lemon sales. Rental operations revenue was $1.3 million in the first quarter of fiscal year 2017, which compared to $1.4 million in last year's first quarter. There were no real estate development revenues in the first quarter of fiscal year 2017 or 2016.
Agribusiness revenue for the first quarter of fiscal year 2017 includes $26.0 million in lemon sales, compared to $21.9 million of lemon sales during the same period of fiscal year 2016, with the increase primarily the result of higher volume of fresh lemons sold, partially offset by lower prices compared to the same period in fiscal year 2016. Approximately 909,000 cartons of fresh lemons were sold during the first quarter of fiscal year 2017 at a $23.10 average price per carton compared to approximately 753,000 cartons sold at a $23.46 average price per carton during the first quarter of fiscal year 2016.
As anticipated due to the seasonality of the avocado crop, the Company recognized no avocado revenue in the first quarter of fiscal year 2017, compared to minimal revenues in last year's first quarter. The Company recognized $0.5 million of orange revenue in the first quarter of fiscal year 2017, compared to $1.0 million in the same period of fiscal year 2016, due largely to the increased rainfall which curtailed the available harvesting days in January. Specialty citrus and other crop revenues were similarly impacted by the rainfall and delayed harvest, resulting in revenues of $0.3 million in the first quarter of fiscal year 2017, compared to $0.7 million in the first quarter of fiscal year 2016.
Costs and expenses for the first quarter of fiscal year 2017 were similar to the prior year period at $31.3 million. Slight increases in agribusiness costs were offset by a decrease in real estate development costs during the quarter.
Operating loss for the first quarter of fiscal year 2017 improved to $3.2 million, compared to a $6.3 million loss in the first quarter of the previous fiscal year. Net loss applicable to common stock, after preferred dividends, for the first quarter of fiscal year 2017 was $2.2 million and compares to a net loss applicable to common stock of $4.1 million in the first quarter of fiscal year 2016.
Harold Edwards, President and Chief Executive Officer, stated, "We achieved record lemon sales for the first quarter of fiscal 2017 and the efficiencies from our recently completed packing facility also benefited our first quarter results. Over the past few years, we have made many strategic investments including the purchase of additional citrus acreage, expansion of our One World of Citrus™ marketing program and increased partner relationships throughout the world which are enabling us to expand our share of the global citrus market."
Mr. Edwards concluded, "As we enter the second quarter of fiscal 2017, we are excited about the drivers of our top and bottom line growth. These drivers include anticipated increase in avocado pricing and better than expected lemon revenues. Based on our first quarter results and an improved outlook for the year, we are raising our full year fiscal 2017 earnings guidance."
For more information:
John Mills
ICR
Tel: +1 646 277 1254