Limoneira Provides Fiscal Year 2019 Business Update
-Company Continues to Expect Record Revenue, Operating Income and EBTIDA in FY 2019-
-Company Reiterates Fiscal 2019 Expectations for Record Domestic and International Fresh Lemon Volume-
-Recent Chile and Argentina Acquisitions and Domestic Packing House Performing In-line with Previous FY 2019 Expectations-
-Company to Receive
-Announces Date of Fiscal Second Quarter 2019
Fiscal Year 2019 Business and Update and Fiscal Second Quarter 2019 Insight
Excessive rains in
For fiscal year 2019, the Company and its international affiliates are
reiterating volume expectations and continue to expect to sell 8.4 to
9.0 million cartons of fresh lemons globally. Due to the competitive
nature of international business, the Company is not providing average
price projections for international lemon sales. Included in the
global cartons estimate, is the Company’s domestic cartons which it
expects to sell between 5.2 and 5.5 million. The Company is reducing
pricing expectations for its approximately 2 million cartons of fresh
domestic lemons to an average price of approximately
$24.00compared to previous guidance of $26.00.
The Company continues to expect to sell approximately 1.7 to 2.0
million pounds of avocados at approximately
Due to excessive heat in the summer of 2018, the Company expects
minimal revenue from avocados in fiscal year 2019. Offsetting this
temporary event will be the benefit of crop insurance for
$2.5 millioncalculated on actual avocado harvest in fiscal year 2019. The Company expects a meaningful increase in avocado revenue in fiscal 2020.
- For fiscal 2019, the current unfavorable domestic conditions for oranges has resulted in significantly lower than expected pricing in the orange market.
The Company now expects operating income for fiscal year 2019 to be
$14.5 million to $17.5 millioncompared to previous expectations of $20.0 million to $23.0 million.
Fiscal year 2019 Adjusted EBITDA is now expected to be in the range of
$23.5 million to $27.5 million, compared to previous range of $28.0 million to $32.0 million.
The Company now expects fiscal year 2019 earnings per share to be in
the range of
$0.65 to $0.75per diluted share with an estimated 18.4 million diluted shares outstanding. Adjusted earnings per diluted share are expected to be in the range of $0.55 to $0.65, compared to the previous range of $0.75 to $0.85. Adjusted EPS guidance for fiscal year 2019 excludes estimated equity earnings from Harvest at Limoneiraand the potential impact of mark to market changes in the value of its 250,000 shares of Calavo. Beginning in fiscal year 2019, the Company is required to measure the changes in fair value of this investment on its statement of operations.
The company expects diluted earnings per share to be in the range of
$0.10 to $0.15and adjusted loss per share to be in the range of $(0.08) to $(0.13)for the second quarter FY 2019.
In addition, not included in adjusted earnings per share is a second
quarter FY 2019 benefit of
$2.3 millionof equity earnings from its real estate development, Harvest at Limoneira.
As more fully described at the end of this release under "Non-GAAP Financial Measures," the Company is unable to reconcile without unreasonable effort the above forward-looking non-GAAP measures, and the variability of the changes excluded from these non-GAAP measures may have a significant and potentially unpredictable impact on its future GAAP financial results.
Longer-Term Growth Pipeline
Fiscal year 2019 outlook estimates do not include equity earnings
benefits from the Harvest at
Looking beyond 2019, the Company has an additional 1,200 acres of
non-bearing lemons that are estimated to become full-bearing over the
next four years, which will enable the Company to achieve strong organic
growth for many years to come. The Company expects the first 300 acres
of the 1,200 acres to become full-bearing in fiscal year 2020. Beyond
these 1,200 acres,
Mr. Edwards continued, "Our real estate venture, Harvest at
The Company will report its full second quarter and fiscal year 2019
Conference Call Information
The Company will host a conference call to discuss its financial results
This press release contains forward-looking statements, including
guidance for fiscal year 2019, 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
Non-GAAP Financial Measures
Due to significant depreciable assets associated with the nature of our operations and interest costs associated with our capital structure, management believes that earnings before interest, income taxes, depreciation and amortization (“EBITDA”) and adjusted EBITDA, which excludes impairments on real estate development assets when applicable, and Adjusted EPS, are important measures to evaluate our Company’s results of operations between periods on a more comparable basis. Such measures are widely used by analysts, investors and lenders as well as by management in assessing our Company’s financial performance and business trends relating to our results of operations and financial condition. These 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 our Company and may not be consistent with methodologies used by other companies. With respect to our expectations under " Fiscal Year 2019 Business Update " above, the Company has not provided a reconciliation of forward-looking non-GAAP measures, primarily due to variability and difficulty in making accurate forecasts and projections, as not all the information necessary for a quantitative reconciliation is available to the Company without unreasonable efforts.
John Mills, 646-277-1254
John Chamberlain, 805-525-5541 ext. 1056