Calavo Growers, Inc. Announces Fourth Quarter and Fiscal 2023 Financial Results
- 5.6% increase in Grown segment net sales
- Grown segment gross profit increased by $0.2 million
- Prepared segment gross profit decreased by $5.1 million
- Adjusted EBITDA for the fourth quarter was $7.0 million
- 7.9% decrease in Prepared segment net sales
- Net loss of $7.9 million for the fourth quarter
- 18.4% decrease in total net sales for fiscal year 2023
- 24.5% decrease in Grown segment net sales for fiscal year 2023
Insights
The reported financial results from Calavo Growers, Inc. present a mixed picture, with a slight decrease in total net sales but a more concerning net loss for both the quarter and the fiscal year. The decline in the Prepared segment sales by 7.9% is particularly notable, as it suggests potential issues with product demand or operational efficiency. Additionally, the increase in the Grown segment sales by 5.6% indicates a resilience in the core business of avocado sales, albeit not enough to offset losses elsewhere.
The gross profit margin contraction from 8.4% to 6.4% year-over-year for the quarter is a red flag, signaling that cost management or pricing strategies may need to be reassessed. The net loss widening from $3.3 million to $7.9 million suggests that the company's bottom line is under significant pressure, which could impact investor sentiment and the company's ability to invest in growth opportunities. The decrease in SG&A expenses indicates cost-saving measures, but these were insufficient to prevent the net loss.
From a liquidity perspective, the company's balance sheet shows a relatively high level of debt compared to cash and cash equivalents. The available liquidity of $40.0 million, while significant, must be weighed against the total debt of $46.3 million. This could affect the company's financial flexibility and its ability to respond to market changes.
The performance of Calavo Growers within the fresh food and produce industry reflects broader market trends, such as fluctuating input costs and consumer purchasing behaviors. The increase in avocado prices by 25% in the Grown segment is indicative of market conditions that may be favorable for growers but could also lead to reduced consumer demand if prices are passed on to customers. The decline in volume for the company suggests a strategic choice to prioritize margin over market share, which could have implications for long-term customer relationships and brand positioning.
The Prepared segment's struggle with higher input costs and lower volume is concerning, as it suggests a lack of pricing power or operational inefficiencies that need to be addressed. In contrast, the successful onboarding of a large national account customer indicates potential for future growth if the company can leverage this relationship to improve sales and margins.
Consumer trends reflected in syndicated retail data, with unit sales down for vegetables and turning positive for fruit, provide context for Calavo's performance. The company's focus on the upcoming Super Bowl, a significant event for avocado consumption, suggests an awareness of seasonal demand fluctuations that could provide short-term sales opportunities.
The financial results of Calavo Growers must be interpreted within the broader economic context, including factors such as foreign exchange rates, input cost inflation and consumer spending patterns. The unfavorable foreign exchange impact of $3.0 million on the Grown segment is a reminder of the risks associated with international trade and currency volatility. Companies operating globally, like Calavo, must manage these risks effectively to protect their profit margins.
The softened avocado margins due to seasonality and foreign exchange impacts, despite improved margins year-over-year, highlight the cyclical nature of agricultural commodities and the importance of timing in sales and procurement strategies. The company's acknowledgment of margin management discipline suggests a strategic approach to pricing and cost control.
The overall decline in adjusted EBITDA from $9.6 million to $7.0 million for the quarter reflects the company's operational challenges. It is important to consider the long-term implications of these trends, such as the potential need for restructuring operations or revising growth strategies to ensure sustainability and profitability in an uncertain economic environment.
SANTA PAULA, Calif., Jan. 31, 2024 (GLOBE NEWSWIRE) -- Calavo Growers, Inc. (Nasdaq-GS: CVGW), a global avocado-industry leader and provider of convenient, ready-to-eat fresh food, today reported its financial results for the fiscal fourth quarter and fiscal year ended October 31, 2023.
Fourth Quarter Financial Overview
- Total net sales of
$241.2 million , a1.0% decrease from the prior year quarter- Grown segment net sales increased
5.6% to$125.7 million - Prepared segment net sales decreased
7.9% to$116.1 million
- Grown segment net sales increased
- Gross profit of
$15.5 million , compared to$20.4 million for the prior year quarter- Grown segment gross profit increased
$0.2 million to$8.7 million - Prepared segment gross profit decreased
$5.1 million to$6.7 million
- Grown segment gross profit increased
- Net loss of
$7.9 million , or$0.45 per diluted share, compared to a net loss of$3.3 million , or$0.19 per diluted share, for the same period last year - Adjusted net loss of
$5.8 million , or$0.33 per diluted share, compared to adjusted net income of$0.6 million , or$0.03 per diluted share for the prior year quarter - Adjusted EBITDA of
$7.0 million compared to$9.6 million for the same period last year
Fiscal Year 2023 Financial Overview
- Total net sales of
$972.0 million , an18.4% decrease from the prior year- Grown segment net sales decreased
24.5% to$529.0 million - Prepared segment net sales decreased
10.3% to$445.8 million
- Grown segment net sales decreased
- Gross profit of
$70.0 million , compared to$73.8 million for the prior year- Grown segment gross profit increased
$2.0 million to$52.2 million - Prepared segment gross profit decreased
$5.9 million to$17.8 million
- Grown segment gross profit increased
- Net loss of
$8.3 million , or$0.47 per diluted share, compared to a net loss of$6.2 million , or$0.35 per diluted share, for the prior year - Adjusted net loss of
$0.2 million , or$0.01 per diluted share, compared to adjusted net income of$8.9 million , or$0.50 per diluted share for the prior year - Adjusted EBITDA of
$31.3 million compared to$35.1 million for the prior year
Adjusted net income (loss), adjusted net income (loss) per diluted share, and adjusted EBITDA are non-GAAP financial measures. See “Non-GAAP Financial Measures” below.
Management Commentary
“I am pleased with our fourth quarter results as we continued to focus on the fundamentals of our operations,” said Lee E. Cole, President and Chief Executive Officer of Calavo Growers, Inc. “We continue to work toward completing the sale of our fresh cut business to F&S Fresh Foods and will share more details when we are able. We look forward to delivering shareholder value in fiscal 2024 as we also celebrate the Company’s 100th anniversary.
“Turning to our financial performance, we generated approximately
Fourth Quarter 2023 Consolidated Financial Review
Total net sales for the fourth quarter 2023 were
Gross profit for the fourth quarter was
Selling, general and administrative (SG&A) expenses for the fourth quarter totaled
Net loss for the fourth quarter was
Adjusted net loss was
Adjusted EBITDA was
Balance Sheet and Liquidity
The Company ended the year with
Segment Performance
Grown
Grown segment gross profit was
Prepared
Prepared segment gross profit declined
Investigation into Mexico Operations
On January 16, 2024, the Company announced that its internal audit process had identified to the Audit Committee of the Board of Directors certain matters that the Board of Directors determined after the fiscal year end merited enhanced evaluation. A Special Committee of the Board of Directors (the “Special Committee”) was established to commence an investigation, with the assistance of external legal counsel and external forensic accountants. The Special Committee determined that certain of those matters related to the Company’s operations in Mexico raised potential issues under the Foreign Corrupt Practices Act (“FCPA”). The Company has voluntarily disclosed this ongoing internal investigation to the SEC and the Department of Justice ("DOJ"), and the Company intends to fully cooperate with the SEC and the DOJ in connection with these matters.
Any determination that the Company’s operations or activities were not in compliance with laws, including the FCPA, could result in the imposition of material fines and penalties and the imposition of equitable remedies. The Company cannot currently predict the timing of completion or the outcome of its internal investigation or of any actions that may be taken by the SEC, the DOJ or Mexican authorities in connection with the matters under investigation, and the Company cannot currently estimate the amount or range of loss or potential impact on its consolidated financial statements associated with these matters.
Non-GAAP Financial Measures
This press release includes non-GAAP measures EBITDA, adjusted EBITDA, adjusted net income (loss) and adjusted net income (loss) per diluted share, which are not prepared in accordance with U.S. generally accepted accounting principles, or “GAAP.”
EBITDA is defined as net income (loss) attributable to Calavo Growers, Inc. excluding (1) interest income and expense, (2) income tax (benefit) provision, (3) depreciation and amortization and (4) stock-based compensation expense. Adjusted EBITDA is EBITDA with further adjustments for (1) non-cash net losses (income) recognized from unconsolidated entities, (2) goodwill impairment, (3) write-off of long-lived assets, (4) acquisition-related costs, (5) restructuring-related costs, including certain severance costs, (6) certain litigation and other related costs, and (7) one-time items. Adjusted EBITDA is a primary metric by which management evaluates the operating performance of the business, on which certain operating expenditures and internal budgets are based. Additionally, the Company’s senior management is compensated in part on the basis of Adjusted EBITDA. The adjustments to calculate EBITDA and adjusted EBITDA are items recognized and recorded under GAAP in particular periods but might be viewed as not necessarily coinciding with the underlying business operations for the periods in which they are so recognized and recorded.
Adjusted net income (loss) is defined as net income (loss) attributable to Calavo Growers, Inc. excluding (1) non-cash net losses recognized from unconsolidated entities, (2) goodwill impairment, (3) write-off of long-lived assets, (4) acquisition-related costs, (5) restructuring-related costs, including certain severance costs, (6) certain litigation and other related costs, and (7) one-time items. Adjusted net income (loss) and the related measure of adjusted net income (loss) per diluted share exclude certain items that are recognized and recorded under GAAP in particular periods but might be viewed as not necessarily coinciding with the underlying business operations for the periods in which they are so recognized and recorded. We believe adjusted net income (loss) affords investors a different view of the overall financial performance of the Company than adjusted EBITDA and the GAAP measure of net income (loss) attributable to Calavo Growers, Inc.
Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the financial tables below.
Items are considered one-time in nature if they are non-recurring, infrequent or unusual and have not occurred in the past two years or are not expected to recur in the next two years, in accordance with SEC rules. Non-GAAP information should be considered as supplemental in nature and not as a substitute for, or superior to, any measure of performance prepared in accordance with GAAP. None of these metrics are presented as measures of liquidity. The way the Company measures EBITDA, adjusted EBITDA and adjusted net income (loss) may not be comparable to similarly titled measures presented by other companies and may not be identical to corresponding measures used in Company agreements.
About Calavo Growers, Inc.
Calavo Growers, Inc. (Nasdaq: CVGW) is a global leader in quality produce, including avocados, tomatoes and papayas, and a pioneer of healthy fresh-cut fruit, vegetables and prepared foods. Calavo products are sold under the trusted Calavo brand name, proprietary sub-brands, private label and store brands. Founded in 1924, Calavo has a rich culture of innovation, sustainable practices and market growth. The company serves retail grocery, foodservice, club stores, mass merchandisers, food distributors and wholesalers worldwide. Calavo is headquartered in Santa Paula, California, with processing plants and packing facilities throughout the U.S. and Mexico. Learn more about The Family of Fresh™ at calavo.com.
Safe Harbor Statement
This press release contains statements relating to future events and results of Calavo (including financial projections and business trends) that are “forward-looking statements,” as defined in the Private Securities Litigation Reform Act of 1995, that involve risks, uncertainties, and assumptions. These statements are based on our current expectations and are not promises or guarantees. If any of the risks or uncertainties materialize or the assumptions prove incorrect, the results of Calavo may differ materially from those expressed or implied by such forward-looking statements and assumptions. The use of words such as “anticipates,” “estimates,” “expects,” “projects,” “intends,” “plans” and “believes,” among others, generally identify forward-looking statements. Risks and uncertainties that may cause our actual results to be materially different from any future results expressed or implied by the forward-looking statements include, but are not limited to, the following: the ability of our management team to work together successfully; the impact of operational and restructuring initiatives on our business, results of operations, and financial condition, including uncertainty as to whether the desired effects will be achieved; the impact of weather on market prices and operational costs; seasonality of our business; sensitivity of our business to changes in market prices of avocados and other agricultural products and other raw materials including fuel, packaging and paper; potential disruptions to our supply chain; risks associated with potential future acquisitions, including integration; potential exposure to data breaches and other cyber-attacks on our systems or those of our suppliers or customers; dependence on large customers; dependence on key personnel and access to labor necessary for us to render services; susceptibility to wage inflation; potential for labor disputes; reliance on co-packers for a portion of our production needs; competitive pressures, including from foreign growers; risks of recalls and food-related injuries to our customers; changing consumer preferences; the impact of environmental regulations, including those related to climate change; risks associated with the environment and climate change, especially as they may affect our sources of supply; our ability to develop and transition new products and services and enhance existing products and services to meet customer needs; risks associated with doing business internationally (including possible restrictive U.S. and foreign governmental actions, such as restrictions on transfers of funds and trade protection measures such as import/export/customs duties, tariffs and/or quotas and currency fluctuations); risks associated with receivables from, loans to and/or equity investments in unconsolidated entities; volatility in the value of our common stock; the impact of macroeconomic trends and events; the effects of increased interest rates on our cost of borrowing and consumer purchasing behavior; the resolution of pending investigations, legal claims and tax disputes, including an assessment imposed by the Mexican Tax Administrative Service (the “SAT”) and our defenses against collection activities commenced by the SAT; the impact of other pending and potential internal and external investigations and legal claims; the ability of the parties to reach a binding agreement for the proposed sale of our Fresh Cut business and certain related real property, the potential that the price, structure, form of consideration (for example, cash, promissory, equity) and other material terms may be materially different than currently expected, the continuing financial and operating performance of the Fresh Cut business during the negotiation process; the possible effect of the announcement of the sale of the Fresh Cut business on our customer, vendor and supplier relationships, operating results and business generally; and if the Company enters into a binding agreement for the proposed transaction, the occurrence of any event, change or other circumstance that prevents the completion of the sale of the proposed transaction, including the failure to satisfy all closing conditions that are included in such binding agreement.
For a further discussion of these risks and uncertainties and other risks and uncertainties that we face, please see the risk factors described in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any subsequent updates that may be contained in our Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Forward-looking statements contained in this press release are made only as of the date of this press release, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
Investor Contact
Julie Kegley, Senior Vice President
Financial Profiles, Inc.
calavo@finprofiles.com
310-622-8246
| CALAVO GROWERS, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED) (in thousands) | |||||||
| October 31, | |||||||
| 2023 | 2022 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 2,091 | $ | 2,060 | |||
| Restricted cash | 761 | 1,074 | |||||
| Accounts receivable, net of allowances of | 61,376 | 59,016 | |||||
| Inventories | 39,430 | 38,830 | |||||
| Prepaid expenses and other current assets | 13,934 | 8,868 | |||||
| Advances to suppliers | 14,684 | 12,430 | |||||
| Income taxes receivable | 1,094 | 3,396 | |||||
| Total current assets | 133,370 | 125,674 | |||||
| Property, plant, and equipment, net | 112,729 | 113,310 | |||||
| Operating lease right-of-use assets | 48,033 | 54,518 | |||||
| Investments in unconsolidated entities | 2,902 | 3,782 | |||||
| Deferred income tax assets | 3,010 | 5,433 | |||||
| Goodwill | 28,653 | 28,653 | |||||
| Intangibles, net | 5,698 | 7,206 | |||||
| Other assets | 52,459 | 47,170 | |||||
| $ | 386,854 | $ | 385,746 | ||||
| Liabilities and shareholders' equity | |||||||
| Current liabilities: | |||||||
| Payable to growers | $ | 14,788 | $ | 20,223 | |||
| Trade accounts payable | 15,537 | 10,436 | |||||
| Accrued expenses | 31,108 | 51,795 | |||||
| Other current liabilities | 11,000 | 11,000 | |||||
| Current portion of term loan | 647 | — | |||||
| Current portion of operating leases | 7,062 | 6,925 | |||||
| Current portion of long-term obligations and finance leases | 1,604 | 1,574 | |||||
| Total current liabilities | 81,746 | 101,953 | |||||
| Long-term liabilities: | |||||||
| Borrowings pursuant to line of credit, long-term | 35,024 | 1,200 | |||||
| Long-term portion of term loan | 3,416 | — | |||||
| Long-term portion of operating leases | 45,393 | 52,140 | |||||
| Long-term portion of obligations and finance leases | 5,647 | 4,447 | |||||
| Deferred income tax liabilities | 746 | — | |||||
| Other long-term liabilities | 4,653 | 2,635 | |||||
| Total long-term liabilities | 94,879 | 60,422 | |||||
| Commitments and contingencies | |||||||
| Shareholders' equity: | |||||||
| Common stock ( | 18 | 18 | |||||
| Additional paid-in capital | 176,481 | 171,223 | |||||
| Noncontrolling interest | 1,392 | 1,015 | |||||
| Retained earnings | 32,338 | 51,115 | |||||
| Total shareholders' equity | 210,229 | 223,371 | |||||
| $ | 386,854 | $ | 385,746 | ||||
| CALAVO GROWERS, INC. CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share amounts) | |||||||||||||||
| Three months ended | Year ended | ||||||||||||||
| October 31, | October 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Net sales | $ | 241,180 | $ | 243,571 | $ | 971,948 | $ | 1,191,073 | |||||||
| Cost of sales | 225,718 | 223,210 | 901,992 | 1,117,228 | |||||||||||
| Gross profit | 15,462 | 20,361 | 69,956 | 73,845 | |||||||||||
| Selling, general and administrative | 14,129 | 17,078 | 66,400 | 65,482 | |||||||||||
| Expenses related to Mexican tax matters | 1,897 | 269 | 3,128 | 1,417 | |||||||||||
| Impairment and charges related to Florida facility closure | — | — | — | 959 | |||||||||||
| Operating income (loss) | (564 | ) | 3,014 | 428 | 5,987 | ||||||||||
| Interest expense | (1,013 | ) | (414 | ) | (2,495 | ) | (1,686 | ) | |||||||
| Other income, net | 59 | 84 | 921 | 1,517 | |||||||||||
| Unrealized net income (loss) on Limoneira shares | — | (2,802 | ) | — | (8,605 | ) | |||||||||
| Income (loss) before income taxes and loss from unconsolidated entities | (1,518 | ) | (118 | ) | (1,146 | ) | (2,787 | ) | |||||||
| Income tax benefit (expense) | (5,921 | ) | (3,614 | ) | (5,942 | ) | (3,251 | ) | |||||||
| Net income (loss) from unconsolidated entities | (481 | ) | 248 | (879 | ) | (564 | ) | ||||||||
| Net income (loss) | (7,920 | ) | (3,484 | ) | (7,967 | ) | (6,602 | ) | |||||||
| Add: Net loss (income) attributable to noncontrolling interest | 13 | 168 | (377 | ) | 353 | ||||||||||
| Net income (loss) attributable to Calavo Growers, Inc. | $ | (7,907 | ) | $ | (3,316 | ) | $ | (8,344 | ) | $ | (6,249 | ) | |||
| Calavo Growers, Inc.’s net income (loss) per share: | |||||||||||||||
| Basic | $ | (0.45 | ) | $ | (0.19 | ) | $ | (0.47 | ) | $ | (0.35 | ) | |||
| Diluted | $ | (0.45 | ) | $ | (0.19 | ) | $ | (0.47 | ) | $ | (0.35 | ) | |||
| Number of shares used in per share computation: | |||||||||||||||
| Basic | 17,766 | 17,664 | 17,750 | 17,663 | |||||||||||
| Diluted | 17,766 | 17,664 | 17,750 | 17,663 | |||||||||||
| CALAVO GROWERS, INC. NET SALES AND GROSS PROFIT BY BUSINESS SEGMENT (UNAUDITED) (in thousands) | |||||||||||||||
| Inter-segment | |||||||||||||||
| Grown | Prepared | Elims. | Total | ||||||||||||
| (All amounts are presented in thousands) | |||||||||||||||
| Three months ended October 31, 2023 | |||||||||||||||
| Net sales | $ | 125,740 | $ | 115,902 | $ | (462 | ) | $ | 241,180 | ||||||
| Cost of sales | 117,010 | 109,170 | (462 | ) | 225,718 | ||||||||||
| Gross profit | $ | 8,730 | $ | 6,732 | $ | — | $ | 15,462 | |||||||
| Three months ended October 31, 2022 | |||||||||||||||
| Net sales | $ | 119,098 | $ | 124,979 | $ | (506 | ) | $ | 243,571 | ||||||
| Cost of sales | 110,527 | 113,189 | (506 | ) | 223,210 | ||||||||||
| Gross profit | $ | 8,571 | $ | 11,790 | $ | — | $ | 20,361 | |||||||
| Inter-segment | |||||||||||||||
| Grown | Prepared | Elims. | Total | ||||||||||||
| (All amounts are presented in thousands) | |||||||||||||||
| Year ended October 31, 2023 | |||||||||||||||
| Net sales | $ | 529,025 | $ | 444,552 | $ | (1,629 | ) | $ | 971,948 | ||||||
| Cost of sales | 476,862 | 426,759 | (1,629 | ) | 901,992 | ||||||||||
| Gross profit | $ | 52,163 | $ | 17,793 | $ | — | $ | 69,956 | |||||||
| Year ended October 31, 2022 | |||||||||||||||
| Net sales | $ | 700,270 | $ | 492,868 | $ | (2,065 | ) | $ | 1,191,073 | ||||||
| Cost of sales | 650,105 | 469,188 | (2,065 | ) | 1,117,228 | ||||||||||
| Gross profit | $ | 50,165 | $ | 23,680 | $ | — | $ | 73,845 | |||||||
For the three months ended October 31, 2023 and 2022, intersegment sales and cost of sales of
CALAVO GROWERS, INC.
RECONCILIATION OF ADJUSTED NET INCOME (LOSS) AND ADJUSTED NET INCOME (LOSS) PER DILUTED SHARE (UNAUDITED)
(in thousands, except per share amounts)
The following table presents adjusted net income (loss) and adjusted net income (loss) per diluted share, each a non-GAAP measure, and reconciles them to net income (loss) attributable to Calavo Growers, Inc., and Diluted EPS, which are the most directly comparable GAAP measures. See “Non-GAAP Financial Measures” earlier in this release.
| Three months ended October 31, | Year ended October 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Net income (loss) attributable to Calavo Growers, Inc. | $ | (7,907 | ) | $ | (3,316 | ) | $ | (8,344 | ) | $ | (6,249 | ) | |||
| Non-GAAP adjustments: | |||||||||||||||
| Non-cash losses (income) recognized from unconsolidated entities (a) | 481 | (248 | ) | 879 | 564 | ||||||||||
| Loss from FreshRealm and other related expenses (b) | — | — | — | 580 | |||||||||||
| Net loss (income) on Limoneira shares (c) | — | 3,125 | — | 8,928 | |||||||||||
| Rent expense add back (d) | 108 | 108 | 432 | 432 | |||||||||||
| Restructure costs - consulting, management recruiting and severance (e) | 304 | 440 | 5,490 | 4,914 | |||||||||||
| Expenses related to Mexican tax matters (f) | 1,897 | 709 | 3,128 | 2,343 | |||||||||||
| Impairment, losses and charges related to property, plant and equipment (g) | — | 186 | 235 | 1,145 | |||||||||||
| Legal settlement and related expenses (h) | — | — | 700 | — | |||||||||||
| Tax impact of adjustments (i) | (697 | ) | (408 | ) | (2,716 | ) | (3,788 | ) | |||||||
| Adjusted net income (loss) attributed to Calavo Growers, Inc. | $ | (5,814 | ) | $ | 596 | $ | (196 | ) | $ | 8,869 | |||||
| Calavo Growers, Inc.’s net income (loss) per share: | |||||||||||||||
| Diluted EPS (GAAP) | $ | (0.45 | ) | $ | (0.19 | ) | $ | (0.47 | ) | $ | (0.35 | ) | |||
| Adjusted net income (loss) per diluted share | $ | (0.33 | ) | $ | 0.03 | $ | (0.01 | ) | $ | 0.50 | |||||
| Number of shares used in per share computation: | |||||||||||||||
| Diluted | 17,766 | 17,664 | 17,750 | 17,663 | |||||||||||
_______________
(a) For the three months ended October 31, 2023 and 2022, we realized losses of
(b) For the year ended October 31, 2022, we recognized a return to provision discrete tax expense of
(c) For the three and twelve months ended October 31, 2022, we recorded
(d) For the three months ended October 31, 2023 and 2022, we incurred
(e) For the three and twelve months ended October 31, 2023, we recorded
(f) For the three months ended October 31, 2023 and 2022, we incurred
(g) On April 1, 2023, we completed the divesture of our salsa business in our Prepared segment and incurred
(h) For the year ended October 31, 2023, we accrued
(i) Tax impact of non-GAAP adjustments are based on effective year-to-date tax rates.
CALAVO GROWERS, INC.
RECONCILIATION OF EBITDA AND ADJUSTED EBITDA (UNAUDITED)
(in thousands, except per share amounts)
The following table presents EBITDA and adjusted EBITDA, each a non-GAAP measure, and reconciles them to net income (loss) attributable to Calavo Growers, Inc., which is the most directly comparable GAAP measure. See “Non-GAAP Financial Measures” earlier in this release.
| Three months ended October 31, | Year ended October 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Net income (loss) attributable to Calavo Growers, Inc. | $ | (7,907 | ) | $ | (3,316 | ) | $ | (8,344 | ) | $ | (6,249 | ) | |||
| Interest Income | (125 | ) | (98 | ) | (605 | ) | (500 | ) | |||||||
| Interest Expense | 1,013 | 414 | 2,495 | 1,686 | |||||||||||
| Provision (benefit) for Income Taxes | 5,921 | 3,614 | 5,942 | 3,251 | |||||||||||
| Depreciation & Amortization | 4,467 | 4,117 | 17,282 | 16,589 | |||||||||||
| Stock-Based Compensation | 828 | 1,016 | 5,210 | 3,139 | |||||||||||
| EBITDA | $ | 4,197 | $ | 5,747 | $ | 21,980 | $ | 17,916 | |||||||
| Adjustments: | |||||||||||||||
| Non-cash losses (income) recognized from unconsolidated entities (a) | 481 | (248 | ) | 879 | 564 | ||||||||||
| Net loss (income) on Limoneira shares (c) | — | 3,125 | — | 8,928 | |||||||||||
| Rent expense add back (d) | 108 | 108 | 432 | 432 | |||||||||||
| Restructure costs - consulting and management recruiting and severance (e) | 304 | 440 | 3,930 | 4,775 | |||||||||||
| Expenses related to Mexican tax matters (f) | 1,897 | 269 | 3,128 | 1,417 | |||||||||||
| Impairment, losses and charges related to property, plant and equipment (g) | — | 186 | 235 | 1,115 | |||||||||||
| Legal settlement and related expenses (h) | — | — | 700 | — | |||||||||||
| Adjusted EBITDA | $ | 6,987 | $ | 9,627 | $ | 31,284 | $ | 35,147 | |||||||
_______________
See prior page for footnote references.
FAQ
What was the total net sales decrease for the fiscal fourth quarter and fiscal year ended October 31, 2023?
What was the net loss for the fourth quarter?
What was the Adjusted EBITDA for the fourth quarter?
What was the Grown segment net sales increase?
What was the Prepared segment net sales decrease?
