Limoneira Company reported financial results for the second quarter ended April 30, 2020.
Harold Edwards, President and Chief Executive Officer of the Company, stated, “During the second fiscal quarter, our fresh lemon volume increased 13.5%; however, the effects of the COVID-19 pandemic dramatically reduced the pricing of lemons due to an oversupply in North America and reduction in overseas shipments. Foodservice restaurants and bars around the world closed due to COVID-19, offsetting the strong growth we achieved in grocery retail revenue. Avocado and orange revenues increased compared to the same period last year and our real estate development project, Harvest at Limoneira, has now closed 244 lot sales since project inception and the year to date pace of the home sales has been above expectations. The homebuilders working with us have sold 70 homes since the beginning of the calendar year, for a total of 112 homes sold out of the 244 initial lot closings.”
Mr. Edwards continued, “During the past few weeks of our third quarter of fiscal year 2020, we are continuing to experience strong volume in grocery retail and beginning to see a slow improvement in foodservice as certain states begin to open restaurants and bars on a limited basis. Given the economic uncertainty as a result of the COVID-19 pandemic, we took actions to improve our current liquidity position, including selling our position in Calavo stock, repurposing certain agriculture acreage, temporarily postponing non-essential capital expenditures, reducing operating costs, increasing our revolving line of credit and substantially reducing discretionary spending.”
Fiscal Year 2020 Second Quarter Results
For the second quarter of fiscal year 2020, total net revenue was $39.6 million, compared to total net revenue of $42.0 million in the second quarter of the previous fiscal year. Agribusiness revenue was $38.4 million, compared to $40.8 million in the second quarter of last fiscal year. Other revenue was $1.1 million, compared to $1.2 million in the second quarter of last fiscal year.
Total costs and expenses for the second quarter of fiscal year 2020 decreased to $42.4 million, compared to $43.0 million in the second quarter of last fiscal year. The second quarter of fiscal year 2020 decrease in operating expenses was primarily attributable to decreases in agribusiness costs and expenses. Costs associated with agribusiness include packing costs, harvest costs, growing costs, costs related to the fruit procured and sold for third-party growers and depreciation and amortization expense.
Adjusted EBITDA was break-even in the second quarter of fiscal year 2020, compared to a gain of $0.8 million in the same period of fiscal year 2019. A reconciliation of adjusted EBITDA to net income is provided at the end of this release.
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