Limoneira Company Announces Second Quarter 2010 Financial Results
SANTA PAULA, CA, Jun 14, 2010 (MARKETWIRE via COMTEX News Network) -- Limoneira Company (NASDAQ: LMNR), a leading agribusiness with prime agricultural land and operations, real estate and water rights throughout California, today reported financial results for fiscal 2010 the second quarter and six-months ended April 30, 2010.
Fiscal 2010 Second Quarter
For the second quarter of fiscal 2010, revenue increased 70% to $13.2 million from revenue of $7.8 million in the second quarter last year. Both of the Company's main revenue sources -- agriculture and rental -- contributed to this period-over-period revenue growth. Agriculture revenue was $12.2 million, compared to $6.8 million in the second quarter last year. Rental revenue was $962,000 in the second quarter, up from $955,000 in the second quarter last year.
The 80% year-over-year increase in the Company's agriculture revenue reflects higher revenue in all varieties of our crops for the fiscal 2010 second quarter compared to the second quarter last year. Revenue from lemon sales increased to $7.9 million in the second quarter of fiscal 2010 from $5.3 million in the second quarter last year. This increase resulted from a $6.00 per carton increase in sales price in the 2010 second quarter compared to the second quarter of 2009. Revenue from avocado sales was $2.7 million in the second quarter of fiscal 2010 compared to $0.1 million in the second quarter last year. This increase was due to a higher volume of fruit harvested in the second quarter of 2010 compared to the second quarter of 2009. Navel and Valencia orange revenue was $0.8 million for the second quarter of 2010 compared to $0.7 million for the second quarter last year. Specialty citrus revenue was $0.8 million for the second quarter of 2010 compared to $0.7 million for the second quarter last year.
Costs and expenses for the second quarter of fiscal 2010 were $12.2 million, compared to $9.3 million in the second quarter last year. The increase was primarily due to higher sales volume for the Company's Agriculture business. As a percent of revenues, cost and expenses decreased due to higher agriculture margins and leverage achieved in S,G&A.
Operating income for the fiscal 2010 second quarter improved to $1.0 million, compared to operating loss of $1.6 million in the second quarter last year.
For the fiscal second quarter of 2010, net income applicable to common stock, after preferred dividends and including a $564,000 non-cash charge for the mark-to-market adjustment on our interest rate swaps, was $47,000, or $0.00 per share, compared to net loss of ($990,000), or ($0.09) per share, in the second quarter last year. Weighted average shares outstanding were 11.2 million in the second quarter fiscal 2010, compared to 11.3 million in the second quarter last year.
"We are pleased with the progress of our business in the second quarter of fiscal 2010," said Harold Edwards, President and Chief Executive Officer. "Our agribusiness revenue growth benefitted from more favorable harvests in all of our agricultural varieties during the second quarter of 2010. In addition, our improved operating income reflects higher lemon prices, more efficient lemon packaging as well as leverage in our overall sales, general and administrative cost. We expect continued quarterly improvement in our operating results as we enter the back half of fiscal 2010."
"In May, we successfully listed our securities on the NASDAQ Global Market. This event marked a major milestone in Limoneira's long and distinguished history and will allow us to enhance the long-term value of the company," continued Mr. Edwards. "We will remain diligently focused on improving our core agribusiness while taking advantage of opportunities to drive top and bottom line growth by capitalizing on our extensive real estate and water assets."
Fiscal 2010 First Six-Months Results
For the six-months ended April 30, 2010, revenue increased 54% to $19.6 million, from $12.7 million for the same period last year. Operating loss for the first six-months of fiscal 2010 was ($3.8 million), compared to an operating loss of ($5.4 million) in the same period last year. Net loss for common stock, after preferred dividends for the first six-months of fiscal 2010 was ($3.2 million), or ($0.28) per share, compared to a loss of ($3.1 million), or ($0.28) per share, in the same period last year. The six-month weighted average shares outstanding were approximately 11.2 million for both periods.
About Limoneira Company
Limoneira Company, a 117-year old international agribusiness headquartered in Santa Paula, California, has grown to become one of the premier integrated agribusinesses in the world. Limoneira (pronounced le mon'ara), is a dedicated sustainability company with approximately 7,300 acres of rich agricultural lands, real estate properties and water rights throughout California. The Company is a leading producer of lemons, avocados, oranges, and other specialty crops that are enjoyed throughout the world. For more about Limoneira Company, visit www.limoneira.com.
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.
Limoneira believes the expectations reflected in the forward-looking statements are reasonable but cannot guarantee future results, level of activity, performance or achievements. Actual results may differ materially from those expressed or implied in the forward-looking statements. Therefore, Limoneira cautions you against relying on any of these forward-looking statements. Factors which may cause future outcomes to differ materially from those foreseen in forward-looking statements include, but are not limited to: changes in laws, regulations, rules, quotas, tariffs, and import laws; weather conditions that affect production, transportation, storage, import and export of fresh product; increased pressure from disease, insects and other pests; disruption of water supplies or changes in water allocations; pricing and supply of raw materials and products; market responses to industry volume pressures; pricing and supply of energy; changes in interest and currency exchange rates; availability of financing for land development activities; political changes and economic crises; international conflict; acts of terrorism; labor disruptions, strikes or work stoppages; loss of important intellectual property rights; inability to pay debt obligations; inability to engage in certain transactions due to restrictive covenants in debt instruments; government restrictions on land use; increased costs from becoming a public company; and market and pricing risks due to concentrated ownership of stock. Other risks and uncertainties include those that are described in Limoneira's SEC filings, which are available on the SEC's website at http://www.sec.gov. Limoneira undertakes no obligation to subsequently update or revise the forward-looking statements made in this press release, except as required by law.
Limoneira Company
Consolidated Condensed Balance Sheets (unaudited)
April 30 October 31
2010 2009
-------------- --------------
Assets
Current assets:
Cash and cash equivalents $ 11,000 $ 603,000
Accounts receivable 6,981,000 3,735,000
Notes receivable - related parties - 1,519,000
Inventoried cultural costs 529,000 858,000
Prepaid expenses and other current assets 1,618,000 894,000
Income taxes receivable 1,669,000 -
Current assets of discontinued operations 5,000 9,000
-------------- --------------
Total current assets 10,813,000 7,618,000
Property, plant, and equipment, net 53,964,000 53,817,000
Real estate development 64,531,000 53,125,000
Assets held for sale 6,774,000 6,774,000
Equity in investments 8,834,000 1,635,000
Investment in Calavo Growers, Inc. 11,531,000 11,870,000
Notes receivable-related parties 94,000 284,000
Notes receivable 2,109,000 2,000,000
Other assets 4,471,000 4,307,000
Noncurrent assets of discontinued
operations 438,000 438,000
-------------- --------------
Total assets $ 163,559,000 $ 141,868,000
============== ==============
Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 1,048,000 $ 970,000
Growers payable 2,616,000 988,000
Accrued liabilities 2,947,000 2,764,000
Current portion of long-term debt 613,000 465,000
Current liabilities of discontinued
operations - 2,000
-------------- --------------
Total current liabilities 7,224,000 5,189,000
Long-term liabilities:
Long-term debt, less current portion 95,609,000 69,251,000
Deferred income taxes 8,469,000 8,764,000
Other long-term liabilities 5,172,000 6,903,000
-------------- --------------
Total long-term liabilities 109,250,000 84,918,000
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 April 30, 2010 and October
31, 2009) (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
April 30, 2010 and October 31, 2009) - -
Common Stock - $.01 par value (19,900,000
shares authorized: 11,194,460 and
11,262,880 shares issued and outstanding
at April 30, 2010 and October 31, 2009,
respectively) 112,000 113,000
Additional paid-in capital 33,817,000 34,718,000
Retained earnings 12,534,000 16,386,000
Accumulated other comprehensive loss (2,378,000) (2,456,000)
-------------- --------------
Total stockholders' equity 47,085,000 51,761,000
-------------- --------------
Total liabilities and stockholders' equity $ 163,559,000 $ 141,868,000
============== ==============
Limoneira Company
Consolidated Condensed Statements of Operations (unaudited)
Three months ended Six months ended
April 30 April 30
2010 2009 2010 2009
------------ ------------ ------------ ------------
Revenues:
Agriculture $ 12,202,000 $ 6,797,000 $ 17,474,000 $ 10,802,000
Rental 962,000 955,000 1,917,000 1,866,000
Other 45,000 8,000 180,000 8,000
------------ ------------ ------------ ------------
Total revenues 13,209,000 7,760,000 19,571,000 12,676,000
Costs and
expenses:
Agriculture 8,791,000 6,995,000 15,684,000 13,633,000
Rental 584,000 480,000 1,091,000 1,061,000
Other 396,000 58,000 723,000 141,000
Selling, general,
and
administrative 2,413,000 1,784,000 5,829,000 3,262,000
Loss on sale of
assets - 3,000 - 3,000
------------ ------------ ------------ ------------
Total cost and
expenses 12,184,000 9,320,000 23,327,000 18,100,000
------------ ------------ ------------ ------------
Operating income
(loss) 1,025,000 (1,560,000) (3,756,000) (5,424,000)
Other income
(expense):
Other
Other income
(expense), net 1,000 (22,000) 364,000 314,000
Interest income 29,000 86,000 58,000 123,000
Interest expense (955,000) (88,000) (1,383,000) (301,000)
------------ ------------ ------------ ------------
Total other income
(expense) (925,000) (24,000) (961,000) 136,000
------------ ------------ ------------ ------------
Income (loss) from
continuing
operations before
income tax
(provision)
benefit and
equity in
investments 100,000 (1,584,000) (4,717,000) (5,288,000)
Income tax
(provision)
benefit (48,000) 739,000 1,661,000 2,391,000
Equity in earnings
(losses) of
investments 64,000 (75,000) 48,000 (99,000)
------------ ------------ ------------ ------------
Income (loss) from
continuing
operations 116,000 (920,000) (3,008,000) (2,996,000)
Loss from
discontinued
operations, net
of income taxes (4,000) (5,000) (12,000) (6,000)
------------ ------------ ------------ ------------
Net income (loss) 112,000 (925,000) (3,020,000) (3,002,000)
Preferred
dividends (65,000) (65,000) (131,000) (131,000)
------------ ------------ ------------ ------------
Net income (loss)
applicable to
common stock $ 47,000 $ (990,000) $ (3,151,000) $ (3,133,000)
============ ============ ============ ============
Per common share-
basic:
Continuing
operations 0.00 (0.09) (0.28) (0.28)
Discontinued
operations (0.00) (0.00) (0.00) (0.00)
------------ ------------ ------------ ------------
Basic net income
(loss) per share $ 0.00 $ (0.09) $ (0.28) $ (0.28)
============ ============ ============ ============
Per common share-
diluted:
Continuing
operations 0.00 (0.09) (0.28) (0.28)
Discontinued
operations (0.00) (0.00) (0.00) (0.00)
------------ ------------ ------------ ------------
Diluted net income
(loss) per share $ 0.00 $ (0.09) $ (0.28) $ (0.28)
============ ============ ============ ============
Dividends per
common share $ 0.03 $ - $ 0.06 $ 0.03
============ ============ ============ ============
Weighted-average
shares
outstanding -
basic 11,194,000 11,263,000 11,194,000 11,224,000
Weighted-average
shares
outstanding -
diluted 11,194,000 11,263,000 11,194,000 11,247,000
Investor Contact: John Mills Senior Managing Director ICR 310.954.1105
SOURCE: Limoneira
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