Limoneira Company Announces First Quarter Fiscal Year 2011 Financial Results
- Successfully Launched Direct Lemon Marketing and Sales Strategy -
- On Track to Achieve Annual Selling General and Administrative Expense Reduction -
- Later Lemon Harvest Expected to Increase 2nd Quarter Revenue -
Fiscal Year 2011 First Quarter Results
For the first quarter of fiscal year 2011, revenue was
Historically, the Company's agricultural operations have been seasonal
in nature with the least amount of revenue being generated in the first
quarter, increasing in the second quarter, peaking in the third quarter
and declining in the fourth quarter. First quarter 2011 agriculture
revenue is comprised of
Costs and expenses for the first quarter of fiscal year 2011 were
Operating loss for the fiscal year 2011 first quarter was
Adjusted EBITDA (defined as net income excluding interest expense,
income taxes, depreciation and amortization, and non-cash impairment
charges on real estate development) in the first quarter of fiscal year
2011 was (
Net loss applicable to common stock, after preferred dividends, for the
first quarter of fiscal year 2011 was
Mr. Edwards continued, "Our harvest is now in full swing and, although
it is still early, we are confident we will deliver another solid
performance for our agribusiness. While we expect avocado volume to be
lower in fiscal year 2011 compared to last year, we are seeing
significantly higher prices for the avocado crop. We also are pleased
with the launch of our direct sales and marketing program for our
lemons, which will benefit our operational results for fiscal year 2011.
In regards to our real estate business, we continue to strategically
take advantage of opportunities to monetize our real estate assets. We
sold our
Mr. Edwards concluded, "Looking ahead for our business, we expect our operating results to improve in the second quarter of fiscal year 2011 as compared to the prior year period and we are optimistic that we will deliver a strong financial performance in fiscal year 2011. We are on track with our cost reduction plan as our S, G & A expenses decreased by 14% compared to the same period last year. We remain diligently focused on maximizing our agribusiness and strategically capitalizing on opportunities with our real estate assets and enhancing shareholder value throughout the year."
Balance Sheet and Liquidity
The Company had working capital of
During the first quarter of fiscal year 2011, the Company continued to
execute its real estate development strategy capitalizing development
costs of
On
Recent Business Highlights
Prior to
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Limoneira's current expectations about future events and can be identified by terms such as "expect," "may," "anticipate," "intend," "should be," "will be," "is likely to," "strive to," and similar expressions referring to future periods.
Non-GAAP Financial Measures
Due to significant depreciable assets associated with the nature of the Company's operations and interest costs associated with its capital structure, management believes that earnings before interest expense, income taxes, depreciation and amortization ("EBITDA") and Adjusted EBITDA, which excludes impairments on real estate development assets, is an important measure to evaluate the Company's results of operations between periods on a more comparable basis. Such measurements are not prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), and should not be construed as an alternative to reported results determined in accordance with GAAP. The non-GAAP information provided is unique to the Company and may not be consistent with methodologies used by other companies. EBITDA and Adjusted EBITDA are summarized and reconciled to net income (loss), which management considers to be the most directly comparable financial measure calculated and presented in accordance with GAAP as follows:
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Three months ended January 31, |
|||||||||
| 2011 | 2010 | ||||||||
| Net loss | $ | (3,327,000 | ) | $ | (3,132,000 | ) | |||
| Total interest (income) expense | (123,000 | ) | 428,000 | ||||||
| Income taxes | (1,712,000 | ) | (1,709,000 | ) | |||||
| Depreciation and amortization | 567,000 | 587,000 | |||||||
| EBITDA | (4,595,000 | ) | (3,826,000 | ) | |||||
| Impairments of real estate development assets | - | - | |||||||
| Adjusted EBITDA | $ | (4,595,000 | ) | $ | (3,826,000 | ) | |||
|
Limoneira Company |
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|
Consolidated Balance Sheets (unaudited) |
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|
January 31,
2011 |
October 31,
2010 |
|||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 24,000 | $ | 262,000 | ||||
| Accounts receivable, net | 3,447,000 | 3,393,000 | ||||||
| Notes receivable — related parties | 9,000 | 33,000 | ||||||
| Notes receivable | 156,000 | 161,000 | ||||||
| Cultural costs | 646,000 | 1,059,000 | ||||||
| Prepaid expenses and other current assets | 1,805,000 | 1,244,000 | ||||||
| Income taxes receivable | 2,953,000 | 1,241,000 | ||||||
| Total current assets | 9,040,000 | 7,393,000 | ||||||
| Property, plant, and equipment, net | 53,137,000 | 53,283,000 | ||||||
| Real estate development | 69,372,000 | 68,412,000 | ||||||
| Equity in investments | 8,853,000 | 9,057,000 | ||||||
| Investment in Calavo Growers, Inc. | 15,348,000 | 14,564,000 | ||||||
| Notes receivable — related parties | 91,000 | 60,000 | ||||||
| Notes receivable | 2,177,000 | 2,154,000 | ||||||
| Other assets | 4,623,000 | 4,515,000 | ||||||
| Total assets | $ | 162,641,000 | $ | 159,438,000 | ||||
| Liabilities and stockholders' equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 1,885,000 | $ | 2,031,000 | ||||
| Growers payable | 1,127,000 | 871,000 | ||||||
| Accrued liabilities | 2,416,000 | 2,810,000 | ||||||
| Current portion of long-term debt | 632,000 | 626,000 | ||||||
| Total current liabilities | 6,060,000 | 6,338,000 | ||||||
| Long-term liabilities: | ||||||||
| Long-term debt, less current portion | 92,374,000 | 85,312,000 | ||||||
| Deferred income taxes | 8,908,000 | 8,444,000 | ||||||
| Other long-term liabilities | 6,614,000 | 7,248,000 | ||||||
| Total long-term liabilities | 107,896,000 | 101,004,000 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity: | ||||||||
|
Series B Convertible Preferred Stock — $100.00 par value (50,000 shares authorized: 30,000 shares issued and outstanding at January 31, 2011 and October 31, 2010) (8.75% coupon rate) |
3,000,000 | 3,000,000 | ||||||
|
Series A Junior Participating Preferred Stock — $.01 par value (50,000 shares authorized: 0 issued or outstanding at January 31, 2011 and October 31, 2010) |
- | - | ||||||
|
Common Stock — $.01 par value (19,900,000 shares authorized: 11,229,168 and 11,194,460 shares issued and outstanding at January 31, 2011 and October 31, 2010, respectively) |
112,000 | 112,000 | ||||||
| Additional paid-in capital | 34,368,000 | 34,735,000 | ||||||
| Retained earnings | 11,301,000 | 15,044,000 | ||||||
| Accumulated other comprehensive loss | (96,000 | ) | (795,000 | ) | ||||
| Total stockholders' equity | 48,685,000 | 52,096,000 | ||||||
| Total liabilities and stockholders' equity | $ | 162,641,000 | $ | 159,438,000 | ||||
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Limoneira Company |
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Consolidated Statements of Operations (unaudited) |
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Three months ended
January 31, |
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| 2011 | 2010 | |||||||
| Revenues: | ||||||||
| Agriculture | $ | 4,875,000 | $ | 5,272,000 | ||||
| Rental | 970,000 | 955,000 | ||||||
| Real estate development | 56,000 | 135,000 | ||||||
| Total revenues | 5,901,000 | 6,362,000 | ||||||
| Costs and expenses: | ||||||||
| Agriculture | 7,638,000 | 6,824,000 | ||||||
| Rental | 560,000 | 507,000 | ||||||
| Real estate development | 290,000 | 327,000 | ||||||
| Selling, general and administrative | 2,950,000 | 3,485,000 | ||||||
| Total costs and expenses | 11,438,000 | 11,143,000 | ||||||
| Operating loss | (5,537,000 | ) | (4,781,000 | ) | ||||
| Other income (expense): | ||||||||
| Interest expense | (354,000 | ) | (428,000 | ) | ||||
| Interest income related to derivative instruments | 477,000 | - | ||||||
| Interest income | 29,000 | 29,000 | ||||||
| Other income, net | 337,000 | 355,000 | ||||||
| Total other income (expense) | 489,000 | (44,000 | ) | |||||
|
Loss before income tax benefit and
equity in earnings (losses) of investments |
(5,048,000 | ) | (4,825,000 |
) |
||||
| Income tax benefit | 1,712,000 | 1,709,000 | ||||||
| Equity in earnings (losses) of investments | 9,000 | (16,000 | ) | |||||
| Net loss | (3,327,000 | ) | (3,132,000 | ) | ||||
| Preferred dividends | (66,000 | ) | (66,000 | ) | ||||
| Net loss applicable to common stock | $ | (3,393,000 | ) | $ | (3,198,000 | ) | ||
| Basic net loss per common share | $ | (0.30 | ) | $ | (0.28 | ) | ||
| Diluted net loss per common share | $ | (0.30 | ) | $ | (0.28 | ) | ||
| Dividends per common share | $ | 0.03 | $ | 0.03 | ||||
| Weighted-average common shares outstanding-basic | 11,199,000 | 11,246,000 | ||||||
| Weighted-average common shares outstanding-diluted | 11,199,000 | 11,246,000 | ||||||
Investor Contact:
ICR
Senior Managing
Director
310-954-1105
Source:
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