CORRECTING and REPLACING Limoneira Company Announces First Quarter Fiscal Year 2020 Financial Results
- Company Updates Guidance for Fiscal Year 2020 -
The corrected release reads:
LIMONEIRA COMPANY ANNOUNCES FIRST QUARTER FISCAL YEAR 2020 FINANCIAL RESULTS
- Company Updates Guidance for Fiscal Year 2020 -
Management Comments
Fiscal Year 2020 First Quarter Results
For the first quarter of fiscal year 2020, total net revenue was
Agribusiness revenue for the first quarter of fiscal year 2020 includes
The Company recognized
Total costs and expenses for the first quarter of fiscal year 2020 increased to
Operating loss for the first quarter of fiscal year 2020 was
Net loss applicable to common stock, after preferred dividends, for the first quarter of fiscal year 2020 was
Excluding the non-cash unrealized loss on stock in Calavo Growers, Inc. (“Calavo”) and equity in earnings of
Adjusted EBITDA was a loss of
Balance Sheet and Liquidity
During the first quarter of fiscal year 2020, net cash used in operating activities was
Long-term debt as of
Real Estate Development
The Company’s joint venture with
In the first quarter of fiscal year 2020, the Company entered into an agreement to sell its
Updated Fiscal Year 2020 Outlook
For fiscal year 2020, the Company is providing adjusted EBITDA guidance and lemon volume guidance by cartons and will not be providing earnings per share guidance going forward. The Company believes adjusted EBITDA can facilitate a more complete analysis and greater transparency into its ongoing results of operations and remove certain non-cash items that create fluctuations in its earnings per share. These items include:
- Depreciation and amortization, which will be increasing on an annual basis from recent and expected future acquisitions,
- The requirement to mark-to-market the price of Calavo stock in net income, and
-
The expected equity in earnings generated from Harvest at
Limoneira .
For fiscal year 2020, the Company is updating adjusted EBITDA expectations, due to the negative impact COVID-19 is having on consumer demand in Asian countries and supply chain disruptions. Excluding the non-cash mark-to-market on stock in Calavo and equity in earnings from Harvest at
For fiscal year 2020, the Company and its international affiliates continue to expect to sell 7.5 to 9.5 million cartons of fresh lemons globally. Included in the global cartons estimate are 5.0 to 6.0 million cartons the Company expects to sell domestically.
Longer-Term Growth Pipeline
Looking into fiscal year 2020 and beyond, the Company has an additional 1,200 acres of non-bearing lemons 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 300 of the 1,200 acres to become full bearing in fiscal year 2021. Beyond these 1,200 acres,
Conference Call Information
The Company will host a conference call to discuss its financial results today at
About
Forward-Looking Statements
This press release contains forward-looking statements, including guidance for fiscal year 2020, 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.
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CONSOLIDATED BALANCE SHEETS (UNAUDITED) ($ in thousands, except share amounts) |
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|
|
|
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Assets |
|
|
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Current assets: |
|
|
||||
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Cash |
$ |
874 |
|
$ |
616 |
|
|
Accounts receivable, net |
|
26,524 |
|
|
18,099 |
|
|
Cultural costs |
|
3,455 |
|
|
7,223 |
|
|
Prepaid expenses and other current assets |
|
11,681 |
|
|
8,153 |
|
|
Income taxes receivable |
|
979 |
|
|
979 |
|
|
Total current assets |
|
43,513 |
|
|
35,070 |
|
|
|
|
|
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|
Property, plant and equipment, net |
|
248,193 |
|
|
248,114 |
|
|
Real estate development |
|
17,515 |
|
|
17,602 |
|
|
Equity in investments |
|
60,785 |
|
|
58,223 |
|
|
Investment in Calavo Growers, Inc. |
|
15,322 |
|
|
17,346 |
|
|
|
|
1,839 |
|
|
1,839 |
|
|
Intangible assets, net |
|
12,122 |
|
|
12,407 |
|
|
Other assets |
|
9,359 |
|
|
9,266 |
|
|
Total assets |
$ |
408,648 |
|
$ |
399,867 |
|
|
|
|
|
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Liabilities and stockholders’ equity |
|
|
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Current liabilities: |
|
|
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Accounts payable |
$ |
8,193 |
|
$ |
4,974 |
|
|
Growers payable |
|
9,400 |
|
|
14,500 |
|
|
Accrued liabilities |
|
10,271 |
|
|
9,167 |
|
|
Current portion of long-term debt |
|
2,998 |
|
|
3,023 |
|
|
Total current liabilities |
|
30,862 |
|
|
31,664 |
|
|
Long-term liabilities: |
|
|
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Long-term debt, less current portion |
|
126,604 |
|
|
105,892 |
|
|
Deferred income taxes |
|
21,328 |
|
|
24,346 |
|
|
Other long-term liabilities |
|
6,227 |
|
|
5,467 |
|
|
Total liabilities |
|
185,021 |
|
|
167,369 |
|
|
Commitments and contingencies |
— |
|
— |
|
||
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|
|
|
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Series B Convertible Preferred Stock – |
|
1,479 |
|
|
1,479 |
|
|
Series B-2 Convertible Preferred Stock – |
|
9,331 |
|
|
9,331 |
|
|
|
|
|
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Stockholders’ equity: |
|
|
||||
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Series A Junior Participating Preferred Stock – |
— |
|
— |
|
||
|
Common Stock – |
|
179 |
|
|
178 |
|
|
Additional paid-in capital |
|
160,869 |
|
|
160,254 |
|
|
Retained earnings |
|
45,199 |
|
|
53,089 |
|
|
Accumulated other comprehensive loss |
|
(8,387 |
) |
|
(7,255 |
) |
|
Noncontrolling interest |
|
14,957 |
|
|
15,422 |
|
|
Total stockholders’ equity |
|
212,817 |
|
|
221,688 |
|
|
Total liabilities and stockholders’ equity |
$ |
408,648 |
|
$ |
399,867 |
|
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CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) ($ in thousands, except share amounts) |
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Three Months Ended
|
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2020 |
|
2019 |
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Net revenues: |
|
|
|
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Agribusiness |
$ |
40,483 |
|
|
$ |
40,800 |
|
|
Other |
|
1,173 |
|
|
|
1,218 |
|
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Total net revenues |
|
41,656 |
|
|
|
42,018 |
|
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Costs and expenses: |
|
|
|
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Agribusiness |
|
42,543 |
|
|
|
38,916 |
|
|
Other operations |
|
1,269 |
|
|
|
1,107 |
|
|
Selling, general and administrative |
|
6,310 |
|
|
|
5,015 |
|
|
Total costs and expenses |
|
50,122 |
|
|
|
45,038 |
|
|
Operating loss |
|
(8,466 |
) |
|
|
(3,020 |
) |
|
Other expense: |
|
|
|
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Interest income, net |
|
55 |
|
|
|
147 |
|
|
Equity in (loss) earnings of investments |
|
(120 |
) |
|
|
42 |
|
|
Unrealized loss on stock in Calavo Growers, Inc. |
|
(2,024 |
) |
|
|
(3,910 |
) |
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Other income, net |
|
515 |
|
|
|
304 |
|
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Total other expense |
|
(1,574 |
) |
|
|
(3,417 |
) |
|
|
|
|
|
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Loss before income tax benefit |
|
(10,040 |
) |
|
|
(6,437 |
) |
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Income tax benefit |
|
3,136 |
|
|
|
1,761 |
|
|
Net loss |
|
(6,904 |
) |
|
|
(4,676 |
) |
|
Net loss (income) attributable to noncontrolling interest |
|
477 |
|
|
|
(17 |
) |
|
Net loss attributable to |
|
(6,427 |
) |
|
|
(4,693 |
) |
|
Preferred dividends |
|
(125 |
) |
|
|
(125 |
) |
|
Net loss attributable to common stock |
$ |
(6,552 |
) |
|
$ |
(4,818 |
) |
|
|
|
|
|
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Basic net loss per common share |
$ |
(0.37 |
) |
|
$ |
(0.28 |
) |
|
|
|
|
|
||||
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Diluted net loss per common share |
$ |
(0.37 |
) |
|
$ |
(0.28 |
) |
|
|
|
|
|
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Weighted-average common shares outstanding-basic |
|
17,577,000 |
|
|
|
17,488,000 |
|
|
Weighted-average common shares outstanding-diluted |
|
17,577,000 |
|
|
|
17,488,000 |
|
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, income taxes, depreciation and amortization ("EBITDA") and adjusted EBITDA, which excludes unrealized loss on stock in Calavo, LLCB earnings in equity investment and impairments on real estate development assets when applicable, is an important measure to evaluate the Company’s results of operations between periods on a more comparable basis. In addition, we have presented adjusted net loss attributable to
EBITDA and adjusted EBITDA are summarized and reconciled to net loss attributable to
|
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Three Months Ended |
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|
2020 |
|
2019 |
||||
|
Net loss attributable to |
$ |
(6,427 |
) |
|
$ |
(4,693 |
) |
|
Interest income, net |
|
(55 |
) |
|
|
(147 |
) |
|
Income tax benefit |
|
(3,136 |
) |
|
|
(1,761 |
) |
|
Depreciation and amortization |
|
2,565 |
|
|
|
2,126 |
|
|
EBITDA |
|
(7,053 |
) |
|
|
(4,475 |
) |
|
Unrealized loss on stock in Calavo Growers, Inc. |
|
2,024 |
|
|
|
3,910 |
|
|
LLCB earnings in equity investment |
|
(55 |
) |
|
— |
|
|
|
Adjusted EBITDA |
$ |
(5,084 |
) |
|
$ |
(565 |
) |
The following is a reconciliation of net loss attributable to
|
|
Three Months Ended |
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|
|
2020 |
|
2019 |
||||
|
Net loss attributable to |
$ |
(6,427 |
) |
|
$ |
(4,693 |
) |
|
Preferred dividends and effect of unvested, restricted stock |
|
(142 |
) |
|
|
(141 |
) |
|
Net loss for basic EPS |
|
(6,569 |
) |
|
|
(4,834 |
) |
|
Unrealized loss on stock in Calavo (net of tax) |
|
1,372 |
|
|
|
2,839 |
|
|
LLC earnings in equity investment (net of tax) |
|
(37 |
) |
|
— |
|
|
|
Adjusted net loss attributable to |
$ |
(5,234 |
) |
|
$ |
(1,995 |
) |
|
|
|
|
|
||||
|
Adjusted net loss for diluted EPS |
$ |
(5,234 |
) |
|
$ |
(1,995 |
) |
|
|
|
|
|
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|
Actual: |
|
|
|
||||
|
Basic net loss per common share |
$ |
(0.37 |
) |
|
$ |
(0.28 |
) |
|
Diluted net loss per common share |
$ |
(0.37 |
) |
|
$ |
(0.28 |
) |
|
|
|
|
|
||||
|
Weighted-average common shares outstanding-basic |
|
17,577,000 |
|
|
|
17,488,000 |
|
|
Weighted-average common shares outstanding-diluted |
|
17,577,000 |
|
|
|
17,488,000 |
|
|
Adjusted: |
|
|
|
||||
|
Basic net (loss) income per common share |
$ |
(0.30 |
) |
|
$ |
(0.11 |
) |
|
Diluted net (loss) income per common share |
$ |
(0.30 |
) |
|
$ |
(0.11 |
) |
|
|
|
|
|
||||
|
Weighted-average common shares outstanding-basic |
|
17,577,000 |
|
|
|
17,488,000 |
|
|
Weighted-average common shares outstanding-diluted |
|
17,577,000 |
17,488,000 |
|
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Supplemental Information
|
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Agribusiness Segment Information for the three months ended |
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|
|
Fresh
|
Lemon
|
Eliminations |
Avocados |
Other
|
Total
|
||||||||||||
|
External customers |
$ |
32,057 |
|
$ |
4,094 |
|
$ |
— |
|
$ |
168 |
|
$ |
4,164 |
|
$ |
40,483 |
|
|
Intersegment revenue |
— |
|
|
7,105 |
|
(7,105 |
) |
— |
|
— |
|
— |
|
|||||
|
Total net revenues |
|
32,057 |
|
|
11,199 |
|
|
(7,105 |
) |
|
168 |
|
|
4,164 |
|
|
40,483 |
|
|
Costs and expenses |
|
34,351 |
|
|
8,609 |
|
|
(7,105 |
) |
|
473 |
|
|
3,931 |
|
|
40,259 |
|
|
Depreciation and amortization |
— |
|
— |
|
— |
|
— |
|
— |
|
|
2,284 |
|
|||||
|
Operating income (loss) |
$ |
(2,294 |
) |
$ |
2,590 |
|
$ |
— |
|
$ |
(305 |
) |
$ |
233 |
|
$ |
(2,060 |
) |
|
Fresh Lemons |
Q1 2020 |
Q12019 |
|
Lemon Packing |
Q1 2020 |
Q12019 |
||||||||
|
|
|
|
|
Cartons sold |
|
1,280 |
|
|
1,272 |
|
||||
|
|
|
|
|
|
|
|
||||||||
|
Acres harvested |
|
4,100 |
|
|
3,800 |
|
|
Revenue |
$ |
11,199 |
|
$ |
11,147 |
|
|
|
|
574 |
|
|
515 |
|
|
Direct Costs |
|
8,609 |
|
|
8,784 |
|
|
Third-party grower cartons sold |
|
706 |
|
|
757 |
|
|
Operating income |
$ |
2,590 |
|
$ |
2,363 |
|
|
Average price per carton |
$ |
21.12 |
|
$ |
24.30 |
|
|
|
|
|
||||
|
|
|
|
|
Avocados |
Q1 2020 |
Q12019 |
||||||||
|
|
|
|
|
|
|
|
||||||||
|
Acres harvested |
|
1,200 |
|
— |
|
|
Pounds sold |
|
125 |
|
— |
|
||
|
Cartons sold |
— |
|
— |
|
|
Average price per pound |
$ |
1.34 |
|
— |
|
|||
|
Average price per carton |
— |
|
— |
|
|
|
|
|
||||||
|
|
|
|
|
Other Agribusiness |
Q1 2020 |
Q12019 |
||||||||
|
Lemon shipping and handling |
$ |
4,100 |
|
$ |
4,100 |
|
|
Orange cartons sold |
|
196 |
|
|
124 |
|
|
Lemon by-product sales |
$ |
1,000 |
|
$ |
2,000 |
|
|
Average price per carton |
$ |
6.71 |
|
$ |
7.63 |
|
|
Other lemon sales |
$ |
3,400 |
|
$ |
1,100 |
|
|
Specialty citrus cartons sold |
|
139 |
|
|
81 |
|
|
Chilean/ |
$ |
600 |
|
$ |
400 |
|
|
Average price per carton |
$ |
13.61 |
|
$ |
15.49 |
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
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|
|
|
|
|
|
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|
Agribusiness costs and expenses |
Q1 2020 |
Q12019 |
|
*FY 2020 Guidance |
Current |
Previous |
||||||||
|
Packing costs |
$ |
9,156 |
|
$ |
8,784 |
|
|
Adjusted EBITDA |
$ |
17,500 |
|
$ |
24,000 |
|
|
Harvest costs |
|
6,248 |
|
|
4,565 |
|
|
|
|
|
||||
|
Growing costs |
|
9,779 |
|
|
7,613 |
|
|
|
|
5,500 |
|
|
5,500 |
|
|
Third-party grower costs |
|
15,076 |
|
|
16,086 |
|
|
International affiliates |
|
3,000 |
|
|
3,000 |
|
|
Depreciation and amortization |
|
2,284 |
|
|
1,868 |
|
|
|
|
|
||||
|
Agribusiness costs and expenses |
$ |
42,543 |
|
$ |
38,916 |
|
|
Avocado pounds |
|
5,000 |
|
|
5,000 |
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
*represents mid-range of guidance |
|
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View source version on businesswire.com: https://www.businesswire.com/news/home/20200311005675/en/
Investor Contact:
Managing Partner
ICR 646-277-1254
Source: