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Limoneira lemon revenue increased 14% to $30M in third quarter

The Limoneira Company, a global agribusiness with agricultural land and operations, real estate and water rights in California, Arizona and Chile, today reported financial results for the third quarter ended July 31, 2017.

“Our recent acquisitions, expanded lemon planting efforts and focus on increasing third party fruit is expected to produce solid fiscal 2018 operating results. In addition, the efficiencies we are enjoying from our new lemon packing house are expected to continue to drive higher margins.”

Fiscal Year 2017 Third Quarter Results
For the third quarter of fiscal year 2017, total net revenue increased to $40.4 million compared to total net revenue of $39.9 million in the third quarter of the previous fiscal year. 

Agribusiness revenue was $39.1 million, compared to $38.4 million in the third quarter last year, primarily due to stronger lemon sales partially offset by lower avocado sales. 

Agribusiness revenue for the third quarter of fiscal year 2017 includes $30.0 million in lemon sales, compared to $26.2 million of lemon sales during the same period of fiscal year 2016, with the increase primarily the result of higher prices and volume of fresh lemons sold compared to the same period in fiscal year 2016. 

Approximately 919,000 cartons of fresh lemons were sold during the third quarter of fiscal year 2017 at a $28.45 average price per carton compared to approximately 846,000 cartons sold at a $27.19 average price per carton during the third quarter of fiscal year 2016. Avocado revenue for the third quarter of fiscal year 2017 was $7.5 million, compared to $9.6 million in the same period last year, primarily the result of lower volume of avocados sold partially offset by higher prices compared to the same period in fiscal year 2016. 

The avocado harvest was substantially completed during the third quarter of fiscal years 2017 and 2016. Typical volatility in avocado production resulted in approximately 5.0 million pounds sold at an average price of $1.50 per pound in the third quarter of fiscal year 2017 compared to 9.5 million pounds sold at an average price of $1.01 per pound for the same period last year. 

For the nine months ended July 31, 2017, 6.3 million pounds of avocados were sold at an average price per pound of $1.51 compared to 11.4 million pounds sold at an average price per pound of $0.95 for the same period of fiscal year 2016.

The Company recognized $1.1 million of orange revenue in the third quarter of fiscal year 2017, compared to $1.9 million in the same period of fiscal year 2016, primarily attributable to lower prices and volume of oranges sold compared to the same period in fiscal year 2016. Specialty citrus and other crop revenues were $0.4 million in the third quarter of fiscal year 2017, compared to $0.8 million in the third quarter of fiscal year 2016.

Total costs and expenses for the third quarter of fiscal year 2017 were $27.2 million, compared to $25.7 million in the third quarter of last fiscal year. The third quarter of fiscal year 2017 increase in operating expenses was primarily attributable to increases in the Company’s agribusiness costs mainly due to higher lemon volume, particularly including an increase in lemons procured from third party growers, which is consistent with the Company’s strategy. 

The higher agribusiness costs were partially offset by decreases in the Company’s real estate development expenses and selling, general and administrative expenses. In addition, lemon packing costs were $5.1 million for the third quarter of fiscal year 2017 compared to $5.6 million for the third quarter of fiscal year 2016. For the nine months ended July 31, 2017, approximately 2.8 million cartons of fresh lemons were packed at an average cost per carton of $5.87 compared to 2.4 million cartons of fresh lemons packed at an average cost of $7.19.

Operating income for the third quarter of fiscal year 2017 decreased to $13.2 million, compared to income of $14.2 million in the third quarter of the previous fiscal year, with lower avocado production a primary factor in the decrease. 

Adjusted EBITDA was $14.9 million in the third quarter of fiscal year 2017 compared to $19.3 million in the same period of fiscal year 2016. A $3.4 million gain on sale of Calavo Growers, stock is included in net income and adjusted EBITDA in the third quarter of fiscal year 2016. 

For more information: limoneira.com

Publication date: 9/12/2017


 


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