Limoneira, a global agribusiness with agricultural land and operations and water rights in California, Arizona and Chile, today reported financial results for the second quarter ended April 30, 2017.
For the second quarter of fiscal year 2017, total net revenue increased 35% to $36.9 million, compared to total net revenue of $27.4 million in the second quarter of the previous fiscal year.
Agribusiness revenue was $35.4 million, compared to $25.9 million in the second quarter last year, primarily due to stronger lemon sales. Rental operations revenue was $1.5 million in the second quarter of fiscal year 2017, compared to $1.4 million in last year's second quarter. There were no real estate development revenues in the second quarter of fiscal year 2017 or 2016.
Agribusiness revenue for the second quarter of fiscal year 2017 includes $26.2 million in lemon sales, compared to $20.8 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 958,000 cartons of fresh lemons were sold during the second quarter of fiscal year 2017 at a $21.50 average price per carton compared to approximately 780,000 cartons sold at a $22.44 average price per carton during the second quarter of fiscal year 2016. Avocado revenue for the second quarter of fiscal year 2017 was $2.0 million, compared to $1.2 million in the same period last year, primarily the result of higher prices of avocados sold partially offset by lower volume compared to the same period in fiscal year 2016.
The Company recognized $4.9 million of orange revenue in the second quarter of fiscal year 2017, compared to $2.6 million in the same period of fiscal year 2016, primarily attributable to higher prices of oranges sold, partially offset by lower volume compared to the same period in fiscal year 2016. Specialty citrus and other crop revenues were $2.3 million in the second quarter of fiscal year 2017, compared to $1.3 million in the second quarter of fiscal year 2016.
Total costs and expenses for the second quarter of fiscal year 2017 were $30.7 million, compared to $25.2 million in the second quarter of last fiscal year. The second quarter of fiscal year 2017 increase in operating expenses was primarily attributable to increases in agribusiness costs, including increases in packing and third-party grower costs mainly due to higher lemon sales and harvest volumes, and consistent with the Company's strategy of increasing sales volumes for fruit procured from third-party growers.
During the second quarter of fiscal year 2017, lemon packing costs per carton sold was $5.99 compared to $7.39 for the same period last year, reflecting increased efficiencies of the new lemon packing facility, which was commissioned in March of 2016.
Operating income for the second quarter of fiscal year 2017 increased to $6.2 million, compared to income of $2.2 million in the second quarter of the previous fiscal year. Net income applicable to common stock, after preferred dividends, for the second quarter of fiscal year 2017 was $3.4 million and compares to $1.1 million in the second quarter of fiscal year 2016.
source: investor.limoneira.com