Limoneira Company, a diversified citrus growing, packing, selling and marketing company with related agribusiness activities and real estate development operations, reported financial results for the fiscal fourth quarter and full year ended October 31, 2023.
Harold Edwards, President and Chief Executive Officer of the Company, stated, “I am pleased with our performance in fiscal year 2023 as we achieved our full year avocado and revised lemon volume guidance despite harsh weather conditions and softer pricing throughout most of the year. We ended the year with fresh lemon pricing improving year-over-year in the seasonally soft fourth quarter to the highest level since 2019. Additionally, our Company’s strategic shift towards an “asset-lighter” business model progressed this year and is reflected in our latest results with brokered lemons and other lemon sales growing year-over-year for the second quarter in a row in the fourth quarter and our farm management revenue reaching close to $10 million this fiscal year.
"We made progress monetizing or eliminating certain non-strategic assets, with the sale of our Northern Properties for $98 million in net cash proceeds, extending a water fallowing program in Yuma, AZ for expected annual proceeds of $1.3 million and exiting our unprofitable farming operations in Cadiz. All of these actions have positioned our Company to be in a much stronger financial position with our balance sheet rightsized and our year-end net debt position at the lowest level since becoming a publicly traded company. This has led us to commence the exploration of a range of strategic alternatives that management and the board believe may maximize value for our stockholders.”
Fiscal Year 2023 Fourth Quarter Results
For the fourth quarter of fiscal year 2023, total net revenue increased 4% to $41.4 million, compared to total net revenue of $39.7 million in the fourth quarter of the previous fiscal year. Agribusiness revenue was $40.1 million, compared to $38.2 million in the fourth quarter of last fiscal year. Other operations revenue was $1.3 million, compared to $1.4 million in the fourth quarter of fiscal year 2022.
Agribusiness revenue in the fourth quarter of fiscal year 2023 includes $11.3 million in fresh lemon sales, compared to $13.1 million of fresh lemon sales during the same period of fiscal year 2022. Approximately 550,000 cartons of U.S. packed fresh lemons were sold in aggregate during the fourth quarter of fiscal year 2023 at a $20.39 average price per carton, compared to approximately 680,000 cartons sold at a $19.33 average price per carton during the fourth quarter of fiscal year 2022. Brokered lemons and other lemon sales were $14.4 million and $12.7 million, in the fourth quarter of fiscal years 2023 and 2022, respectively.
The Company recognized no avocado revenue in the fourth quarter of fiscal year 2023, compared to nominal avocado revenue during the same period of fiscal year 2022. The Company recognized $1.9 million of orange revenue in the fourth quarter of fiscal year 2023, compared to $2.7 million in the same period of fiscal year 2022. Approximately 69,000 cartons of oranges were sold during the fourth quarter of fiscal year 2023 at a $28.32 average price per carton, compared to approximately 86,000 cartons sold at a $31.22 average price per carton during the fourth quarter of fiscal year 2022. The decline in volume was primarily due to the sale of the Northern Properties in the first quarter of fiscal year 2023. Specialty citrus and other revenue was $5.4 million for the fourth quarter of fiscal year 2023, compared to $5.5 million in the same period of fiscal year 2022. Farm management revenues were $3.1 million in the fourth quarter of fiscal year 2023, primarily due to the Northern Properties farming, management and operations services. There were no farm management revenues in the fourth quarter of fiscal year 2022.
Total costs and expenses in the fourth quarter of fiscal year 2023 were $51.1 million, compared to $41.5 million in the fourth quarter of last fiscal year. The increase of $9.6 million was primarily due to farm management costs expensed in fiscal year 2023 but capitalized as cultural costs in fiscal year 2022 and decreased gain on asset disposals.
Operating loss for the fourth quarter of fiscal year 2023 was $9.7 million, compared to operating loss of $1.9 million in the fourth quarter of the previous fiscal year, primarily due to increased costs and expenses as described above.
Net loss applicable to common stock, after preferred dividends, for the fourth quarter of fiscal year 2023 was $3.6 million, compared to net loss applicable to common stock of $2.8 million in the fourth quarter of fiscal year 2022. Net loss per diluted share for the fourth quarter of fiscal year 2023 was $0.20, compared to net loss per diluted share of $0.16 for the same period of fiscal year 2022.
Adjusted net loss for diluted EPS in the fourth quarter of fiscal year 2023 was $2.6 million or $0.15 per diluted share, compared to the fourth quarter of fiscal year 2022 of $5.7 million or $0.32 per diluted share, based on approximately 17.6 million and 17.5 million, respectively, adjusted weighted average diluted common shares outstanding. A reconciliation of net (loss) income attributable to Limoneira Company to adjusted net loss for diluted EPS is provided at the end of this release.
Adjusted EBITDA was a loss of $1.3 million in the fourth quarter of fiscal year 2023, compared to a loss of $3.8 million in the same period of fiscal year 2022. A reconciliation of net (loss) income attributable to Limoneira Company to adjusted EBITDA is provided at the end of this release.
Fiscal Year 2023 Results
For the fiscal year ended October 31, 2023, revenues were $179.9 million, compared to $184.6 million in fiscal year 2022. Operating income for fiscal year 2023 was $10.8 million, compared to operating income of $2.2 million in the prior fiscal year. Net income applicable to common stock was $8.9 million for fiscal year 2023, compared to net loss applicable to common stock of $737,000 for fiscal year 2022. Net income per diluted share for fiscal year 2023 was $0.50, compared to net loss per diluted share of $0.04 for fiscal year 2022.
For fiscal year 2023, adjusted net loss for diluted EPS was $7.6 million compared to adjusted net loss for diluted EPS of $1.3 million for fiscal year 2022. In fiscal year 2023, adjusted net loss per diluted share was $0.43, compared to adjusted net loss per diluted share of $0.08 for fiscal year 2022, based on approximately 17.6 million and 17.5 million adjusted weighted average diluted common shares outstanding for fiscal years 2023 and 2022, respectively.
Adjusted EBITDA for fiscal year 2023 was a loss of $224,000, compared to income of $11.9 million in the prior fiscal year.
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