Calavo Growers, Inc. Announces Fourth Quarter and Fiscal Year 2024 Financial Results
Calavo Growers (NASDAQ: CVGW) reported its fiscal Q4 and full-year 2024 results, showing significant growth in its continuing operations following the divestiture of its Fresh Cut business in August 2024. Full-year total net sales increased 11.4% to $661.5 million, with the Grown segment up 13.3% to $597.6 million, while the Prepared segment decreased 4.2% to $63.9 million.
For Q4 2024, total net sales rose 19.5% to $170.0 million, though the company reported a net loss from continuing operations of $2.5 million, or $(0.14) per share. The Grown segment showed strong performance with a 23.4% increase in net sales, while the Prepared segment experienced a 9.4% decrease.
The company ended the year with $57.0 million in cash and $108.8 million in available liquidity, with minimal debt of $5.1 million. Management expects double-digit growth in avocado and guacamole sales volumes for fiscal 2025, focusing on operational optimization and organic growth opportunities.
Calavo Growers (NASDAQ: CVGW) ha riportato i risultati del quarto trimestre fiscale e dell'intero anno 2024, mostrando una significativa crescita nelle sue operazioni continuative dopo la dismissione della sua attività di Fresh Cut nell'agosto 2024. Le vendite nette totali per l'intero anno sono aumentate dell'11,4% raggiungendo i $661,5 milioni, con il segmento Grown in crescita del 13,3% a $597,6 milioni, mentre il segmento Prepared è diminuito del 4,2% a $63,9 milioni.
Per il quarto trimestre 2024, le vendite nette totali sono aumentate del 19,5% a $170,0 milioni, anche se l'azienda ha riportato una perdita netta dalle operazioni continuative di $2,5 milioni, o $(0,14) per azione. Il segmento Grown ha mostrato una forte performance con un incremento delle vendite nette del 23,4%, mentre il segmento Prepared ha subito una diminuzione del 9,4%.
L'azienda ha chiuso l'anno con $57,0 milioni in contante e $108,8 milioni in liquidità disponibile, con un debito minimo di $5,1 milioni. La direzione prevede una crescita a doppia cifra nei volumi di vendita di avocado e guacamole per l'anno fiscale 2025, concentrandosi sull'ottimizzazione operativa e sulle opportunità di crescita organica.
Calavo Growers (NASDAQ: CVGW) informó sus resultados del cuarto trimestre fiscal y del año completo 2024, mostrando un crecimiento significativo en sus operaciones continuas tras la desinversión de su negocio de Fresh Cut en agosto de 2024. Las ventas netas totales del año completo aumentaron un 11.4% alcanzando los $661.5 millones, con el segmento Grown en alza del 13.3% a $597.6 millones, mientras que el segmento Prepared disminuyó un 4.2% a $63.9 millones.
Para el Q4 2024, las ventas netas totales subieron un 19.5% a $170.0 millones, aunque la compañía reportó una pérdida neta de operaciones continuas de $2.5 millones, o $(0.14) por acción. El segmento Grown mostró un sólido rendimiento con un aumento del 23.4% en las ventas netas, mientras que el segmento Prepared experimentó una disminución del 9.4%.
La compañía terminó el año con $57.0 millones en efectivo y $108.8 millones en liquidez disponible, con una deuda mínima de $5.1 millones. La dirección espera un crecimiento de dos dígitos en los volúmenes de ventas de aguacate y guacamole para el año fiscal 2025, enfocándose en la optimización operativa y en oportunidades de crecimiento orgánico.
Calavo Growers (NASDAQ: CVGW)는 2024 회계년도 4분기 및 연간 실적을 발표하며, 2024년 8월 Fresh Cut 사업부 분할 이후 지속적인 운영에서 знач적인 성장을 보였습니다. 전체 연매출이 11.4% 증가하여 $661.5백만에 달했습니다, Grown 부문은 13.3% 증가하여 $597.6백만에 이르렀고, Prepared 부문은 4.2% 감소하여 $63.9백만으로 집계되었습니다.
2024년 4분기 동안, 전체 매출은 19.5% 증가하여 $170.0백만에 달했지만, 회사는 지속적인 운영에서 순손실이 $2.5백만, 즉 주당 $(0.14)라고 보고했습니다. Grown 부문은 순매출이 23.4% 증가했으며, Prepared 부문은 9.4% 감소했습니다.
회사는 $57.0백만의 현금과 $108.8백만의 사용 가능한 유동성을 보유하고 있으며, 부채는 최소한의 $5.1백만입니다. 경영진은 2025 회계년도에 아보카도와 과카몰레의 판매량이 두 자릿수 성장할 것으로 예상하며, 운영 최적화와 유기적 성장 기회에 주력할 계획입니다.
Calavo Growers (NASDAQ: CVGW) a annoncé ses résultats du quatrième trimestre et de l'année fiscale 2024, affichant une croissance significative de ses opérations continues après la cession de son activité Fresh Cut en août 2024. Les ventes nettes totales pour l'année ont augmenté de 11,4 % pour atteindre 661,5 millions de dollars, avec le segment Grown en hausse de 13,3 % pour atteindre 597,6 millions de dollars, tandis que le segment Prepared a diminué de 4,2 % pour passer à 63,9 millions de dollars.
Pour le 4ème trimestre 2024, les ventes nettes totales ont augmenté de 19,5 % pour atteindre 170,0 millions de dollars, bien que la société ait reporté une perte nette des opérations continues de 2,5 millions de dollars, soit $(0,14) par action. Le segment Grown a montré une performance solide avec une augmentation des ventes nettes de 23,4 %, tandis que le segment Prepared a subi une diminution de 9,4 %.
L'entreprise a terminé l'année avec 57,0 millions de dollars en liquidités et 108,8 millions de dollars en liquidités disponibles, avec une dette minime de 5,1 millions de dollars. La direction s'attend à une croissance à deux chiffres des volumes de ventes d'avocats et de guacamole pour l'exercice fiscal 2025, en se concentrant sur l'optimisation opérationnelle et les opportunités de croissance organique.
Calavo Growers (NASDAQ: CVGW) hat seine Ergebnisse für das vierte Quartal des Geschäftsjahrs 2024 und das gesamte Geschäftsjahr veröffentlicht, wobei ein signifikantes Wachstum in den fortgeführten Geschäften nach der Veräußerung des Bereichs Fresh Cut im August 2024 zu verzeichnen ist. Die gesamten Nettoumsätze für das Gesamtjahr stiegen um 11,4% auf $661,5 Millionen, wobei der Bereich Grown um 13,3% auf $597,6 Millionen zulegte, während der Bereich Prepared um 4,2% auf $63,9 Millionen zurückging.
Im 4. Quartal 2024 stiegen die gesamten Nettoumsätze um 19,5% auf $170,0 Millionen, obwohl das Unternehmen einen Nettoverlust aus fortgeführten Geschäften von $2,5 Millionen oder $(0,14) pro Aktie berichtete. Der Bereich Grown zeigte eine starke Leistung mit einem Anstieg der Nettoumsätze um 23,4%, während der Bereich Prepared einen Rückgang um 9,4% verzeichnete.
Das Unternehmen schloss das Jahr mit $57,0 Millionen in bar und $108,8 Millionen an verfügbaren liquiden Mitteln ab, bei minimalen Schulden von $5,1 Millionen. Das Management erwartet für das Geschäftsjahr 2025 ein zweistelliges Wachstum bei den Verkaufsvolumina von Avocados und Guacamole und konzentriert sich auf betriebliche Optimierung und organische Wachstumschancen.
- Full-year net sales increased 11.4% to $661.5 million
- Q4 net sales grew 19.5% to $170.0 million
- Grown segment gross profit increased 24.1% in Q4
- Full-year adjusted net income increased to $1.05 per share from $0.64
- Strong liquidity position with $57.0 million cash and $108.8 million available
- Minimal debt of $5.1 million
- Q4 net loss of $2.5 million from continuing operations
- Prepared segment Q4 sales decreased 9.4%
- Prepared segment Q4 gross profit declined 27.6%
- Higher SG&A expenses in Q4, increasing to 7.7% of net sales from 6.5%
Insights
The fiscal year 2024 results demonstrate a solid performance with total net sales increasing 11.4% to
Key positives include improved operational efficiency, strong balance sheet with
Looking ahead to 2025, management's projection of double-digit growth in avocado and guacamole sales volumes, coupled with operational optimization initiatives, suggests potential for improved profitability.
The strategic decision to divest the Fresh Cut business and focus on core avocado and guacamole operations positions Calavo for stronger market performance. The company's enhanced supply chain capabilities and global sourcing strategies provide competitive advantages in meeting growing avocado demand, particularly during high-consumption periods like the Super Bowl.
The
Despite USDA inspection limitations and pest challenges in Michoacan, Calavo's robust supply chain management ensures adequate avocado volume for peak Super Bowl demand. The company's expanded global sourcing strategy mitigates regional supply risks and supports projected volume growth. The stabilization of fruit costs following summer price surges indicates improving cost management in the supply chain.
The operational streamlining post-Fresh Cut divestiture has enhanced efficiency and reduced structural costs. The focus on operational optimization and deeper penetration within existing accounts suggests potential for improved margins through economies of scale. The combination of new customer acquisition and product innovations positions Calavo well for sustainable growth in the competitive fresh produce market.
SANTA PAULA, Calif., Jan. 14, 2025 (GLOBE NEWSWIRE) -- Calavo Growers, Inc. (Nasdaq-GS: CVGW), a global avocado-industry leader and provider of value-added fresh food, today reported its financial results for the fiscal fourth quarter and fiscal year ended October 31, 2024.
Introductory Note: In the first quarter of 2024, we concluded that the Fresh Cut (formerly RFG) business met the requirements to be classified as held for sale and discontinued operations. As a result, the financial results of that business are reported as discontinued operations in this press release. The divestiture of the Fresh Cut business occurred on August 15, 2024. Prior to the decision to divest our Fresh Cut business, the Company’s Prepared reporting segment included the Fresh Cut business unit and our guacamole business. The Fresh Cut business unit is no longer included in our Prepared business segment in this press release. Retrospective reclassifications have been made to prior period financial statements and commentary in this press release to present the Fresh Cut business unit as a discontinued operation. Unless otherwise noted, the amounts and commentary included in this press release relate to our continuing operations.
Fiscal Year 2024 Financial Overview
- Total net sales increased
11.4% to$661.5 million from the prior year- Grown segment net sales increased
13.3% to$597.6 million - Prepared segment net sales decreased
4.2% to$63.9 million
- Grown segment net sales increased
- Total gross profit increased
8.3% to$67.8 million from the prior year- Grown segment gross profit increased
9.4% to$55.3 million - Prepared segment gross profit increased
3.8% to$12.5 million
- Grown segment gross profit increased
- Net income from continuing operations of
$6.8 million , or$0.38 per diluted share, compared to net income from continuing operations of$5.1 million , or$0.26 per diluted share, for the prior year. - Adjusted net income of
$18.7 million , or$1.05 per diluted share, compared to adjusted net income of$11.5 million , or$0.64 per diluted share, for the prior year - Adjusted EBITDA of
$37.0 million , compared to$33.2 million for the prior year
Fourth Quarter Financial Overview
- Total net sales increased
19.5% to$170.0 million from the prior year quarter- Grown segment net sales increased
23.4% to$154.6 million - Prepared segment net sales decreased
9.4% to$15.3 million
- Grown segment net sales increased
- Total gross profit increased
14.2% to$16.3 million from the prior year quarter- Grown segment gross profit increased
24.1% to$14.3 million - Prepared segment gross profit decreased
27.6% to$2.0 million
- Grown segment gross profit increased
- Net loss from continuing operations of
$2.5 million , or$(0.14) per diluted share, compared to a net loss from continuing operations of$4.7 million , or$(0.26) per diluted share, for the prior year quarter - Adjusted net income of
$0.8 million , or$0.05 per diluted share, compared to an adjusted net loss of$0.4 million , or$(0.02) per diluted share, for the prior quarter - Adjusted EBITDA of
$6.7 million compared to$8.0 million for the prior year quarter
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
“We made good progress in 2024 improving our financial performance and executing our strategy,” said Lee Cole, President and Chief Executive Officer of Calavo Growers, Inc. “Both our top and bottom-line results grew compared to 2023, with net sales increasing approximately
“In the first quarter of 2024, we made the strategic decision to sharpen our focus on our core avocado and guacamole operations, leading to the sale of our Fresh Cut business, which we finalized in August 2024. By divesting Fresh Cut, we enhanced our core operations and streamlined our corporate structure to deliver meaningful reductions in SG&A expenses. The sale of Fresh Cut also strengthened our balance sheet by reducing debt and generating a strong cash position, which helped us to reward investors with a higher dividend that we plan to maintain in 2025.”
“Turning to our financial performance for the fourth fiscal quarter, we saw our net loss from continuing operations improve by approximately
“We are entering fiscal 2025 with strong momentum. Our strategic focus on operational optimization, disciplined execution, and leveraging organic growth opportunities positions us well for sustained success. With double-digit growth anticipated in avocado and guacamole sales volumes, as well as overall revenue, we believe that our initiatives will drive meaningful value creation for shareholders in fiscal 2025 as compared to fiscal 2024. Our confidence is grounded in the strength of our growth drivers — new customer acquisition, product innovations, deeper penetration within existing accounts, and expanded global sourcing strategies. We believe the scalability of our supply chain gives us an advantage in delivering the sales volume growth. Supported by a focus on cost discipline and efficiencies in SG&A expenses, these factors position us for a strong year of revenue growth, profitability, and enhanced shareholder returns in 2025.”
Fourth Quarter 2024 Consolidated Financial Review
Total net sales for the fourth quarter of 2024 were
Gross profit for the fourth quarter was
Selling, general and administrative (SG&A) expenses for the fourth quarter totaled
Net loss from continuing operations for the fourth quarter was
Adjusted net income was
Adjusted EBITDA was
Segment Performance
Grown
Gross profit in the Grown segment increased to
Prepared
Gross profit in the Prepared segment declined to
Balance Sheet and Liquidity
The Company ended the year with cash and cash equivalents of
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) from continuing operations 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, internal investigation and other related costs, (7) foreign currency gain (loss) and (8) one-time items. We believe adjusted EBITDA affords investors a different view of the overall financial performance of the Company than adjusted net income (loss) and the GAAP measure of net income (loss) from continuing operations. 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) from continuing operations 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, internal investigation and other related costs, (7) foreign currency loss (gain) and (8) 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) from continuing operations.
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 the processing and distribution of avocados, tomatoes, papayas and guacamole. 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 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. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including, but not limited to, any projections of revenue, gross profit, expenses, income/(loss) from unconsolidated entities, earnings, earnings per share, tax provisions, cash flows and currency exchange rates; the impact of acquisitions or debt or equity investments or other financial items; any statements of the plans, strategies and objectives of management for future operations, including execution of restructuring and integration (including information technology systems integration) plans; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on Calavo and its financial performance; statements regarding pending internal or external investigations, legal claims or tax disputes; and any statements of expectation or belief; any statements about future risks associated with doing business internationally (including possible restrictive U.S. and foreign governmental actions, such as restrictions on transfers of funds, restrictions as a result of trade protection measures such as import/export/customs duties, tariffs and/or quotas).
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 weather on market conditions; 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; changes or actions associated with USDA-APHIS and the Mexican Secretary of Agriculture, Secretariat of Agriculture and Rural Development (SADER) phytosanitary regulations (certification regulation for the importation of Hass avocados to the United States); 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, including but not limited to the new guacamole products referenced in this press release; risks associated with doing business internationally (including possible non-compliance with U.S. and foreign laws applicable to international trade and dealings and 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 internal and external 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; and our ability to realize the expected expense savings from the sale of the Fresh Cut business.
For 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 because of new information, future events or otherwise.
| CALAVO GROWERS, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands) | ||||||||
| October 31, | ||||||||
| 2024 | 2023 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 57,031 | $ | 2,091 | ||||
| Restricted cash | — | 761 | ||||||
| Accounts receivable, net of allowances of | 41,909 | 33,897 | ||||||
| Inventories | 34,157 | 31,571 | ||||||
| Prepaid expenses and other current assets | 9,976 | 11,739 | ||||||
| Advances to suppliers | 14,570 | 14,684 | ||||||
| Current assets held for sale | — | 37,533 | ||||||
| Income taxes receivable | 936 | 1,094 | ||||||
| Total current assets | 158,579 | 133,370 | ||||||
| Property, plant, and equipment, net | 54,200 | 60,924 | ||||||
| Operating lease right-of-use assets | 18,316 | 18,357 | ||||||
| Investments in unconsolidated entities | 2,424 | 2,902 | ||||||
| Deferred income tax assets | 7,473 | 3,010 | ||||||
| Goodwill | 10,211 | 10,211 | ||||||
| Non-current assets held for sale | — | 105,424 | ||||||
| Intangibles, net | — | 275 | ||||||
| Other assets | 49,916 | 52,381 | ||||||
| $ | 301,119 | $ | 386,854 | |||||
| Liabilities and shareholders' equity | ||||||||
| Current liabilities: | ||||||||
| Payable to growers | $ | 18,377 | $ | 14,788 | ||||
| Trade accounts payable | 8,742 | 5,097 | ||||||
| Accrued expenses | 28,149 | 15,809 | ||||||
| Current liabilities held for sale | — | 29,911 | ||||||
| Income tax payable | 2,767 | — | ||||||
| Other current liabilities | 11,000 | 11,000 | ||||||
| Current portion of term loan | — | 647 | ||||||
| Current portion of operating leases | 3,296 | 3,663 | ||||||
| Current portion of long-term obligations and finance leases | 874 | 831 | ||||||
| Total current liabilities | 73,205 | 81,746 | ||||||
| Long-term liabilities: | ||||||||
| Borrowings pursuant to line of credit, long-term | — | 35,024 | ||||||
| Long-term liabilities held for sale | — | 29,295 | ||||||
| Long-term portion of term loan | — | 3,416 | ||||||
| Long-term portion of operating leases | 17,476 | 17,328 | ||||||
| Long-term portion of obligations and finance leases | 4,274 | 4,645 | ||||||
| Deferred income tax liabilities | — | 746 | ||||||
| Other long-term liabilities | 4,388 | 4,425 | ||||||
| Total long-term liabilities | 26,138 | 94,879 | ||||||
| Commitments and contingencies | ||||||||
| Shareholders' equity: | ||||||||
| Common stock ( | 18 | 18 | ||||||
| Additional paid-in capital | 177,973 | 176,481 | ||||||
| Noncontrolling interest | 1,444 | 1,392 | ||||||
| Retained earnings | 22,341 | 32,338 | ||||||
| Total shareholders' equity | 201,776 | 210,229 | ||||||
| $ | 301,119 | $ | 386,854 | |||||
| CALAVO GROWERS, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share amounts) | ||||||||||||||||
| Three months ended | Year ended | |||||||||||||||
| October 31, | October 31, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net sales | $ | 169,959 | $ | 142,204 | $ | 661,544 | $ | 594,102 | ||||||||
| Cost of sales | 153,669 | 127,936 | 593,740 | 531,490 | ||||||||||||
| Gross profit | 16,290 | 14,268 | 67,804 | 62,612 | ||||||||||||
| Selling, general and administrative | 13,045 | 9,279 | 50,038 | 47,276 | ||||||||||||
| Expenses related to Mexican tax matters | 233 | 1,897 | 1,043 | 3,128 | ||||||||||||
| Operating income | 3,012 | 3,092 | 16,723 | 12,208 | ||||||||||||
| Foreign currency gain (loss) | (3,041 | ) | (3,057 | ) | (5,840 | ) | 1,378 | |||||||||
| Interest income | 680 | 242 | 1,020 | 605 | ||||||||||||
| Interest expense | (274 | ) | (984 | ) | (2,893 | ) | (2,371 | ) | ||||||||
| Other income (expense), net | 80 | (201 | ) | 641 | 260 | |||||||||||
| Income (loss) before income taxes and loss from unconsolidated entities | 457 | (908 | ) | 9,651 | 12,080 | |||||||||||
| Income tax expense | (2,803 | ) | (3,297 | ) | (2,325 | ) | (6,148 | ) | ||||||||
| Net loss from unconsolidated entities | (104 | ) | (481 | ) | (478 | ) | (879 | ) | ||||||||
| Net income (loss) from continuing operations | (2,450 | ) | (4,686 | ) | 6,848 | 5,053 | ||||||||||
| Net income (loss) from discontinued operations (refer to Note 16) | 2,346 | (3,234 | ) | (7,872 | ) | (13,020 | ) | |||||||||
| Net loss | (104 | ) | (7,920 | ) | (1,024 | ) | (7,967 | ) | ||||||||
| Add: Net loss (income) attributable to noncontrolling interest | (35 | ) | 13 | (52 | ) | (377 | ) | |||||||||
| Net loss attributable to Calavo Growers, Inc. | $ | (139 | ) | $ | (7,907 | ) | $ | (1,076 | ) | $ | (8,344 | ) | ||||
| Calavo Growers, Inc.’s net income (loss) per share: | ||||||||||||||||
| Basic | ||||||||||||||||
| Continuing Operations | $ | (0.14 | ) | $ | (0.26 | ) | $ | 0.38 | $ | 0.26 | ||||||
| Discontinued Operations | $ | 0.13 | $ | (0.18 | ) | $ | (0.44 | ) | $ | (0.73 | ) | |||||
| Net loss attributable to Calavo Growers, Inc | $ | (0.01 | ) | $ | (0.45 | ) | $ | (0.06 | ) | $ | (0.47 | ) | ||||
| Diluted | ||||||||||||||||
| Continuing Operations | $ | (0.14 | ) | $ | (0.26 | ) | $ | 0.38 | $ | 0.26 | ||||||
| Discontinued Operations | $ | 0.13 | $ | (0.18 | ) | $ | (0.44 | ) | $ | (0.73 | ) | |||||
| Net loss attributable to Calavo Growers, Inc | $ | (0.01 | ) | $ | (0.45 | ) | $ | (0.06 | ) | $ | (0.47 | ) | ||||
| Number of shares used in per share computation: | ||||||||||||||||
| Basic | 17,802 | 17,766 | 17,801 | 17,750 | ||||||||||||
| Diluted | 17,871 | 17,766 | 17,863 | 17,854 | ||||||||||||
| CALAVO GROWERS, INC. NET SALES AND GROSS PROFIT BY BUSINESS SEGMENT (UNAUDITED) (in thousands) |
Prior to the decision to divest our Fresh Cut business (formerly RFG), the Company’s Prepared reporting segment included the Fresh Cut business unit and our guacamole business. As a result, the Fresh Cut business unit is no longer included in our Prepared business segment and is not included in the tables below. All segment information included herein reflects these changes.
| Grown | Prepared | Total | ||||||||
| (All amounts are presented in thousands) | ||||||||||
| Three months ended October 31, 2024 | ||||||||||
| Net sales | $ | 154,625 | $ | 15,334 | $ | 169,959 | ||||
| Cost of sales | 140,315 | 13,354 | 153,669 | |||||||
| Gross profit | $ | 14,310 | $ | 1,980 | $ | 16,290 | ||||
| Three months ended October 31, 2023 | ||||||||||
| Net sales | $ | 125,277 | $ | 16,927 | $ | 142,204 | ||||
| Cost of sales | 113,742 | 14,194 | 127,936 | |||||||
| Gross profit | $ | 11,535 | $ | 2,733 | $ | 14,268 | ||||
| Grown | Prepared | Total | ||||||||
| (All amounts are presented in thousands) | ||||||||||
| Three months ended July 31, 2024 | ||||||||||
| Net sales | $ | 163,218 | $ | 16,378 | $ | 179,596 | ||||
| Cost of sales | 145,043 | 14,460 | 159,503 | |||||||
| Gross profit | $ | 18,175 | $ | 1,918 | $ | 20,093 | ||||
| Three months ended July 31, 2023 | ||||||||||
| Net sales | $ | 144,069 | $ | 16,787 | $ | 160,856 | ||||
| Cost of sales | 124,734 | 14,118 | 138,852 | |||||||
| Gross profit | $ | 19,335 | $ | 2,669 | $ | 22,004 | ||||
| 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 to net income (loss) from continuing operations, and Diluted EPS from continuing operations, 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, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income (loss) from continuing operations | $ | (2,450 | ) | $ | (4,686 | ) | $ | 6,848 | $ | 5,053 | ||||||
| Add: Net loss (income) attributable to noncontrolling interest | (35 | ) | 13 | (52 | ) | (377 | ) | |||||||||
| Net income (loss) from continuing operations attributable to Calavo Growers, Inc. | (2,485 | ) | (4,673 | ) | 6,796 | 4,676 | ||||||||||
| Non-GAAP adjustments: | ||||||||||||||||
| Non-cash loss recognized from unconsolidated entities (a) | 104 | 481 | 478 | 879 | ||||||||||||
| Impairment, losses and charges related to property, plant and equipment (b) | — | — | — | 235 | ||||||||||||
| Restructure costs - consulting, management recruiting and severance (c) | — | 304 | 1,037 | 5,490 | ||||||||||||
| Expenses related to Mexican tax matters (d) | 233 | 1,897 | 1,043 | 3,128 | ||||||||||||
| Legal settlement and related expenses (e) | — | — | — | 700 | ||||||||||||
| Professional fees related to internal investigation (f) | 1,013 | — | 7,444 | — | ||||||||||||
| Foreign currency loss (gain) (g) | 3,041 | 3,057 | 5,840 | (1,378 | ) | |||||||||||
| Tax impact of adjustments (h) | (1,097 | ) | (1,435 | ) | (3,960 | ) | (2,264 | ) | ||||||||
| Adjusted net income (loss) | $ | 809 | $ | (369 | ) | $ | 18,678 | $ | 11,466 | |||||||
| Calavo Growers, Inc.’s continuing operations net income (loss) per share: | ||||||||||||||||
| Diluted EPS from continuing operations (GAAP) | $ | (0.14 | ) | $ | (0.26 | ) | $ | 0.38 | $ | 0.26 | ||||||
| Adjusted net income (loss) per diluted share | $ | 0.05 | $ | (0.02 | ) | $ | 1.05 | $ | 0.64 | |||||||
| Number of shares used in per share computation: | ||||||||||||||||
| Diluted | 17,871 | 17,766 | 17,863 | 17,854 | ||||||||||||
| (a) | For the three months ended October 31, 2024 and 2023, we realized losses of |
| (b) | On April 1, 2023, we completed the divesture of our salsa business in our Prepared segment and incurred |
| (c) | For the year ended October 31, 2024, we incurred |
| For the three and twelve months ended October 31, 2023, we recorded | |
| (d) | For the three and twelve months ended October 31, 2024, we incurred |
| For the three and twelve months ended October 31, 2023, we incurred | |
| (e) | For the three and twelve months ended October 31, 2023, we accrued |
| (f) | For the three and twelve months ended October 31, 2024, we incurred |
| (g) | Due to the change in the Mexican peso to the U.S. dollar exchange rates, foreign currency remeasurement losses, net of gains, for the three and twelve months ended October 31, 2024 were |
| (h) | Tax impacts 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) |
The following table presents EBITDA and adjusted EBITDA, each a non-GAAP measure, and reconciles them to net income (loss) from continuing operations, 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, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income (loss) from continuing operations | $ | (2,450 | ) | $ | (4,686 | ) | $ | 6,848 | $ | 5,053 | ||||||
| Add: Net loss (income) attributable to noncontrolling interest | (35 | ) | 13 | (52 | ) | (377 | ) | |||||||||
| Net income (loss) from continuing operations attributable to Calavo Growers, Inc. | (2,485 | ) | (4,673 | ) | 6,796 | 4,676 | ||||||||||
| Interest Income | (680 | ) | (242 | ) | (1,020 | ) | (605 | ) | ||||||||
| Interest Expense | 274 | 984 | 2,893 | 2,371 | ||||||||||||
| Provision for Income Taxes | 2,803 | 3,297 | 2,325 | 6,148 | ||||||||||||
| Depreciation and Amortization | 1,959 | 2,049 | 8,080 | 8,097 | ||||||||||||
| Stock-Based Compensation | 424 | 812 | 2,160 | 5,010 | ||||||||||||
| EBITDA | $ | 2,295 | $ | 2,227 | $ | 21,234 | $ | 25,697 | ||||||||
| Adjustments: | ||||||||||||||||
| Non-cash loss recognized from unconsolidated entities (a) | 104 | 481 | 478 | 879 | ||||||||||||
| Impairment, losses and charges related to property, plant and equipment (b) | — | — | — | 235 | ||||||||||||
| Restructure costs - consulting and management recruiting and severance (c) | — | 304 | 967 | 3,930 | ||||||||||||
| Expenses related to Mexican tax matters (d) | 233 | 1,897 | 1,043 | 3,128 | ||||||||||||
| Legal settlement and related expenses (e) | — | — | — | 700 | ||||||||||||
| Professional fees related to internal investigation (f) | 1,013 | — | 7,444 | — | ||||||||||||
| Foreign currency loss (gain) (g) | 3,041 | 3,057 | 5,840 | (1,378 | ) | |||||||||||
| Adjusted EBITDA | $ | 6,686 | $ | 7,966 | $ | 37,006 | $ | 33,191 | ||||||||
| See prior page for footnote references |
| Investor Contact |
| Julie Kegley, Senior Vice President |
| Financial Profiles, Inc. |
| calavo@finprofiles.com |
| 310-622-8246 |
FAQ
What was Calavo Growers' (CVGW) revenue growth in fiscal year 2024?
How did CVGW's Grown segment perform in Q4 2024?
What was CVGW's cash position at the end of fiscal 2024?
When did CVGW complete the sale of its Fresh Cut business?
What was CVGW's earnings per share for Q4 2024?
