Calavo Growers, Inc. Announces Third Quarter 2024 Financial Results, Dividend Increase
Calavo Growers, Inc. (CVGW) reported its Q3 2024 financial results, showing a 11.7% increase in total net sales to $179.6 million. The Grown segment saw a 13.3% rise in net sales to $163.2 million, while the Prepared segment experienced a 2.4% decrease to $16.4 million. Despite this growth, total gross profit decreased by 8.7% to $20.1 million. The company reported net income of $5.4 million, or $0.30 per diluted share, compared to $8.7 million, or $0.48 per diluted share, in the prior year quarter. Adjusted net income was $10.2 million, or $0.57 per diluted share. Notably, Calavo increased its quarterly dividend by $0.10 to $0.20 per share.
Calavo Growers, Inc. (CVGW) ha riportato i risultati finanziari del terzo trimestre 2024, mostrando un aumento del 11.7% delle vendite nette totali a 179.6 milioni di dollari. Il segmento Grown ha registrato un aumento del 13.3% delle vendite nette a 163.2 milioni di dollari, mentre il segmento Prepared ha visto un calo del 2.4% a 16.4 milioni di dollari. Nonostante questa crescita, il profitto lordo totale è diminuito dell'8.7% a 20.1 milioni di dollari. L'azienda ha riportato un reddito netto di 5.4 milioni di dollari, ovvero 0.30 dollari per azione diluita, rispetto a 8.7 milioni di dollari, o 0.48 dollari per azione diluita, nell'anno precedente. Il reddito netto rettificato è stato di 10.2 milioni di dollari, ovvero 0.57 dollari per azione diluita. È degno di nota che Calavo ha aumentato il suo dividendo trimestrale di 0.10 dollari a 0.20 dollari per azione.
Calavo Growers, Inc. (CVGW) anunció sus resultados financieros del tercer trimestre de 2024, mostrando un aumento del 11.7% en las ventas netas totales a 179.6 millones de dólares. El segmento Grown vio un aumento del 13.3% en las ventas netas a 163.2 millones de dólares, mientras que el segmento Prepared experimentó una disminución del 2.4% a 16.4 millones de dólares. A pesar de este crecimiento, el beneficio bruto total disminuyó un 8.7% a 20.1 millones de dólares. La empresa reportó un ingreso neto de 5.4 millones de dólares, o 0.30 dólares por acción diluida, en comparación con 8.7 millones de dólares, o 0.48 dólares por acción diluida, en el trimestre del año anterior. El ingreso neto ajustado fue de 10.2 millones de dólares, o 0.57 dólares por acción diluida. Cabe destacar que Calavo aumentó su dividendo trimestral en 0.10 dólares a 0.20 dólares por acción.
Calavo Growers, Inc. (CVGW)는 2024년 3분기 재무 결과를 발표하며 총 순매출이 11.7% 증가한 1억 7,960만 달러를 기록했다고 전했습니다. 'Grown' 부문은 순매출이 13.3% 증가하여 1억 6,320만 달러를 기록했으며, 'Prepared' 부문은 2.4% 감소하여 1,640만 달러를 기록했습니다. 이러한 성장에도 불구하고 총 총 이익은 8.7% 감소하여 2,010만 달러로 나타났습니다. 회사는 5.4백만 달러의 순이익, 즉 희석 주식당 0.30달러를 보고했으며, 이는 전년도 동기 대비 8.7백만 달러, 즉 0.48달러의 감소입니다. 조정된 순이익은 1천만 2백만 달러, 즉 희석 주식당 0.57달러로 나타났습니다. 특히, Calavo는 분기 배당금을 0.10달러 인상하여 주식당 0.20달러로 조정했습니다.
Calavo Growers, Inc. (CVGW) a annoncé ses résultats financiers pour le troisième trimestre 2024, montrant une augmentation de 11,7% des ventes nettes totales à 179,6 millions de dollars. Le segment Grown a connu une augmentation de 13,3% des ventes nettes à 163,2 millions de dollars, tandis que le segment Prepared a enregistré une diminution de 2,4% à 16,4 millions de dollars. Malgré cette croissance, le bénéfice brut total a diminué de 8,7% pour atteindre 20,1 millions de dollars. L'entreprise a déclaré un bénéfice net de 5,4 millions de dollars, soit 0,30 dollars par action diluée, comparé à 8,7 millions de dollars, soit 0,48 dollars par action diluée, au cours du trimestre de l'année précédente. Le bénéfice net ajusté était de 10,2 millions de dollars, soit 0,57 dollars par action diluée. Il convient de noter que Calavo a augmenté son dividende trimestriel de 0,10 dollars à 0,20 dollars par action.
Calavo Growers, Inc. (CVGW) hat seine finanziellen Ergebnisse für das 3. Quartal 2024 veröffentlicht und zeigt einen Umsatzanstieg von 11.7% auf insgesamt 179.6 Millionen Dollar. Der Grown-Segment verzeichnete einen Anstieg der Nettoumsätze um 13.3% auf 163.2 Millionen Dollar, während der Prepared-Segment einen Rückgang um 2.4% auf 16.4 Millionen Dollar erfuhr. Trotz dieses Wachstums ging der Gesamterlös um 8.7% auf 20.1 Millionen Dollar zurück. Das Unternehmen berichtete von einem Nettogewinn von 5.4 Millionen Dollar, also 0.30 Dollar pro verwässerter Aktie, verglichen mit 8.7 Millionen Dollar oder 0.48 Dollar pro verwässerter Aktie im Vorjahresquartal. Der bereinigte Nettogewinn betrug 10.2 Millionen Dollar, oder 0.57 Dollar pro verwässerter Aktie. Bemerkenswert ist, dass Calavo seine Quartalsdividende um 0.10 Dollar auf 0.20 Dollar pro Aktie erhöht hat.
- Total net sales increased 11.7% to $179.6 million
- Grown segment net sales increased 13.3% to $163.2 million
- Adjusted net income increased to $10.2 million, or $0.57 per diluted share
- Quarterly dividend doubled to $0.20 per share
- Reduced net debt position by $9.5 million during the third quarter
- Strong avocado margins despite temporary supply disruptions from Mexico
- Guacamole business volume increased 7%
- Total gross profit decreased 8.7% to $20.1 million
- Net income decreased to $5.4 million from $8.7 million in the prior year quarter
- Prepared segment net sales decreased 2.4% to $16.4 million
- $4.2 million foreign currency remeasurement loss compared to a $2.0 million gain in the prior year quarter
- Higher fruit input costs impacted guacamole business margins
Insights
Calavo Growers' Q3 2024 results show mixed performance. The 11.7% increase in total net sales to
The increase in adjusted EBITDA to
The avocado market dynamics are important for Calavo's performance. The 25% increase in average selling price of avocados, coupled with improved margins, offset the 4.5% volume decline. This suggests strong demand and pricing power in the avocado market. However, the temporary supply disruptions from Mexico highlight the vulnerability of the supply chain.
The 7% volume increase in the guacamole business despite higher fruit input costs demonstrates market expansion opportunities. The planned launch of innovative guacamole products in Q4 could drive growth in fiscal 2025. The company's focus on its core avocado and guacamole businesses, post-divestiture of Fresh Cut, aligns with market trends favoring healthy, plant-based foods.
The $4.2 million foreign currency remeasurement loss compared to a
The reduction in net debt by $9.5 million during Q3 and subsequent debt retirement using Fresh Cut sale proceeds significantly improves the company's financial position. This lowers interest expenses and financial risk. However, the $9.3 million goodwill impairment charge related to the Fresh Cut business sale indicates potential overvaluation of assets, which warrants scrutiny of future acquisition strategies and valuation practices.
SANTA PAULA, Calif., Sept. 09, 2024 (GLOBE NEWSWIRE) -- Calavo Growers, Inc. (Nasdaq-GS: CVGW), a global leader in the processing and distribution of avocados, tomatoes, papayas, and guacamole, today reported its financial results for the fiscal third quarter ended July 31, 2024.
Third Quarter Financial Overview
Introductory Note: In the first quarter of 2024, we concluded that the Fresh Cut (formerly RFG) business meets 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, amounts and commentary included in this press release relate to our continuing operations.
- Total net sales increased
11.7% to$179.6 million from the prior year quarter- Grown segment net sales increased
13.3% to$163.2 million - Prepared segment net sales decreased
2.4% to$16.4 million
- Grown segment net sales increased
- Total gross profit decreased
8.7% to$20.1 million from the prior year quarter- Grown segment gross profit decreased
$1.2 million to$18.2 million - Prepared segment gross profit decreased
$0.8 million to$1.9 million
- Grown segment gross profit decreased
- Net income of
$5.4 million , or$0.30 per diluted share, compared to net income of$8.7 million , or$0.48 per diluted share for the prior year quarter - Adjusted net income of
$10.2 million , or$0.57 per diluted share, compared to adjusted net income of$7.7 million , or$0.43 per diluted share for the prior year quarter - Adjusted EBITDA of
$13.5 million compared to$13.0 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.
Third Quarter Highlights
- Third consecutive quarter of year-over-year improvement in adjusted EBITDA
- Grown gross profit performance is attributed to strong avocado margins despite temporary supply disruptions from Mexico
- Results include
$4.2 million of foreign currency remeasurement loss compared to a$2.0 million gain in the prior year quarter - Reduced net debt position by
$9.5 million during the third quarter; subsequently retired remaining debt balance using Fresh Cut sale proceeds - The Board of Directors increased the cash dividend by
$0.10 per share to$0.20 per share to be paid on October 30, 2024, to shareholders of record on October 2, 2024
Management Commentary
“Our third quarter results reflect continued momentum in our flagship avocado business,” said Lee Cole, President and Chief Executive Officer of Calavo Growers, Inc. “Despite temporary industry supply disruptions from Mexico during the quarter, we generated strong financial results due to our operational flexibility and our resilient team. Although our guacamole business experienced headwinds from higher fruit input costs compared to the third quarter last year, our volume increased
“Our momentum has carried into the fourth quarter, and we look forward to delivering solid financial results for the fourth quarter and fiscal year. We intend to deploy the cash that we generated from the sale of our Fresh Cut business by investing in our core avocado and guacamole businesses and by returning cash to shareholders over time. Given the renewed focus on our core operations, improvements in our financial performance, and our confidence in our operational execution going forward, I am pleased to share that we have doubled the quarterly dividend to
Third Quarter 2024 Consolidated Financial Review for Continuing Operations
Total net sales for the third quarter were
Gross profit for the third quarter was
Selling, general and administrative (SG&A) expenses for the third quarter totaled
Net income for the third quarter was
Adjusted net income was
Adjusted EBITDA was
On August 15, 2024, the Company closed the sale of its Fresh Cut business for
As previously disclosed, the company voluntarily disclosed to the Securities and Exchange Commission (SEC) and the Department of Justice (DOJ) an internal investigation into potential issues under the FCPA. The company currently is cooperating with, and responding to requests from, the SEC and the DOJ.
Balance Sheet and Liquidity
The Company ended the quarter with
Segment Performance
Grown
Grown segment gross profit was
Prepared
Prepared segment gross profit was
Non-GAAP Financial Measures
This press release includes non-GAAP measures EBITDA from continuing operations, adjusted EBITDA from continuing operations, adjusted net income (loss) from continuing operations and adjusted net income (loss) from continuing operations per diluted share, which are not prepared in accordance with U.S. generally accepted accounting principles, or “GAAP.” EBITDA from continuing operations 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 and other related costs, (7) foreign currency gain (loss) and (8) one-time items. Adjusted EBITDA from continuing operations 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 from continuing operations and adjusted EBITDA from continuing operations 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) from continuing operations 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 and other related costs, (7) foreign currency loss (gain) and (8) one-time items. Adjusted net income (loss) from continuing operations and the related measure of adjusted net income (loss) from continuing operations 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) from continuing operations 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 from continuing operations 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 from continuing operations, adjusted EBITDA from continuing operations and adjusted net income (loss) from continuing operations 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.
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, including but not limited to the new guacamole products referenced in this press release; 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; and our ability to realize the expected expense savings from the sale of the Fresh Cut business.
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 BALANCE SHEETS (UNAUDITED) (in thousands) | ||||||
July 31, | October 31, | |||||
2024 | 2023 | |||||
Assets | ||||||
Current assets: | ||||||
Cash and cash equivalents | $ | 1,126 | $ | 2,091 | ||
Restricted cash | — | 761 | ||||
Accounts receivable, net of allowances of | 51,845 | 33,897 | ||||
Inventories | 31,822 | 31,571 | ||||
Prepaid expenses and other current assets | 8,855 | 11,739 | ||||
Advances to suppliers | 12,828 | 14,684 | ||||
Current assets held for sale | 128,213 | 37,533 | ||||
Income taxes receivable | 3,611 | 1,094 | ||||
Total current assets | 238,300 | 133,370 | ||||
Property, plant, and equipment, net | 55,894 | 60,924 | ||||
Operating lease right-of-use assets | 19,244 | 18,357 | ||||
Investments in unconsolidated entities | 2,528 | 2,902 | ||||
Deferred income tax assets | 3,010 | 3,010 | ||||
Goodwill | 10,211 | 10,211 | ||||
Non-current assets held for sale | — | 105,424 | ||||
Intangibles, net | 275 | 275 | ||||
Other assets | 52,964 | 52,381 | ||||
$ | 382,426 | $ | 386,854 | |||
Liabilities and shareholders' equity | ||||||
Current liabilities: | ||||||
Payable to growers | $ | 26,377 | $ | 14,788 | ||
Trade accounts payable | 9,819 | 5,097 | ||||
Accrued expenses | 16,962 | 15,809 | ||||
Current liabilities held for sale | 47,254 | 29,911 | ||||
Other current liabilities | 11,000 | 11,000 | ||||
Current portion of term loan | 814 | 647 | ||||
Current portion of operating leases | 3,480 | 3,663 | ||||
Current portion of long-term obligations and finance leases | 886 | 831 | ||||
Total current liabilities | 116,592 | 81,746 | ||||
Long-term liabilities: | ||||||
Borrowings pursuant to line of credit, long-term | 29,919 | 35,024 | ||||
Long-term liabilities held for sale | — | 29,295 | ||||
Long-term portion of term loan | 2,804 | 3,416 | ||||
Long-term portion of operating leases | 18,242 | 17,328 | ||||
Long-term portion of obligations and finance leases | 4,514 | 4,645 | ||||
Deferred income tax liabilities | 746 | 746 | ||||
Other long-term liabilities | 4,432 | 4,425 | ||||
Total long-term liabilities | 60,657 | 94,879 | ||||
Commitments and contingencies | ||||||
Shareholders' equity: | ||||||
Total shareholders' equity | 205,177 | 210,229 | ||||
$ | 382,426 | $ | 386,854 |
CALAVO GROWERS, INC. CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except share and per share amounts) | ||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||
July 31, | July 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net sales | $ | 179,596 | $ | 160,856 | $ | 491,585 | $ | 451,898 | ||||||||
Cost of sales | 159,503 | 138,852 | 440,071 | 403,554 | ||||||||||||
Gross profit | 20,093 | 22,004 | 51,514 | 48,344 | ||||||||||||
Selling, general and administrative | 10,510 | 12,994 | 36,993 | 37,997 | ||||||||||||
Expenses (recovery) related to Mexican tax matters | 225 | (1,203 | ) | 810 | 1,231 | |||||||||||
Operating income | 9,358 | 10,213 | 13,711 | 9,116 | ||||||||||||
Foreign currency gain (loss) | (4,203 | ) | 2,019 | (2,799 | ) | 4,435 | ||||||||||
Interest expense | (833 | ) | (766 | ) | (2,619 | ) | (1,387 | ) | ||||||||
Other income, net | 181 | 177 | 901 | 824 | ||||||||||||
Income before income taxes and loss from unconsolidated entities | 4,503 | 11,643 | 9,194 | 12,988 | ||||||||||||
Income tax benefit (expense) | 1,441 | (2,408 | ) | 478 | (2,851 | ) | ||||||||||
Net loss from unconsolidated entities | (579 | ) | (498 | ) | (374 | ) | (398 | ) | ||||||||
Net income from continuing operations | 5,365 | 8,737 | 9,298 | 9,739 | ||||||||||||
Net loss from discontinued operations | (6,127 | ) | (2,029 | ) | (10,218 | ) | (9,786 | ) | ||||||||
Net income (loss) | (762 | ) | 6,708 | (920 | ) | (47 | ) | |||||||||
Add: Net loss (income) attributable to noncontrolling interest | 30 | (82 | ) | (17 | ) | (390 | ) | |||||||||
Net income (loss) attributable to Calavo Growers, Inc. | $ | (732 | ) | $ | 6,626 | $ | (937 | ) | $ | (437 | ) | |||||
Calavo Growers, Inc.’s net income (loss) per share: | ||||||||||||||||
Basic | ||||||||||||||||
Continuing Operations | $ | 0.30 | $ | 0.49 | $ | 0.52 | $ | 0.53 | ||||||||
Discontinued Operations | $ | (0.34 | ) | $ | (0.11 | ) | $ | (0.57 | ) | $ | (0.55 | ) | ||||
Net income (loss) attributable to Calavo Growers, Inc | $ | (0.04 | ) | $ | 0.37 | $ | (0.05 | ) | $ | (0.02 | ) | |||||
Diluted | ||||||||||||||||
Continuing Operations | $ | 0.30 | $ | 0.48 | $ | 0.52 | $ | 0.52 | ||||||||
Discontinued Operations | $ | (0.34 | ) | $ | (0.11 | ) | $ | (0.57 | ) | $ | (0.55 | ) | ||||
Net income (loss) attributable to Calavo Growers, Inc | $ | (0.04 | ) | $ | 0.37 | $ | (0.05 | ) | $ | (0.02 | ) | |||||
Number of shares used in per share computation: | ||||||||||||||||
Basic | 17,801 | 17,756 | 17,800 | 17,746 | ||||||||||||
Diluted | 17,842 | 17,856 | 17,848 | 17,835 |
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 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 | ||||
Grown | Prepared | Total | ||||||||
(All amounts are presented in thousands) | ||||||||||
Nine months ended July 31, 2024 | ||||||||||
Net sales | $ | 442,999 | $ | 48,586 | $ | 491,585 | ||||
Cost of sales | 402,041 | 38,030 | 440,071 | |||||||
Gross profit | $ | 40,958 | $ | 10,556 | $ | 51,514 | ||||
Nine months ended July 31, 2023 | ||||||||||
Net sales | $ | 402,119 | $ | 49,779 | $ | 451,898 | ||||
Cost of sales | 363,120 | 40,434 | 403,554 | |||||||
Gross profit | $ | 38,999 | $ | 9,345 | $ | 48,344 | ||||
For the three months ended July 31, 2023, intercompany sales and cost of sales of
CALAVO GROWERS, INC.
RECONCILIATION OF ADJUSTED NET INCOME FROM CONTINUING OPERATIONS
AND EPS FROM CONTINUING OPERATIONS (UNAUDITED)
(in thousands, except share and per share amounts)
The following table presents adjusted net income (loss) from continuing operations and adjusted diluted EPS from continuing operations, each a non-GAAP measure, and reconciles them 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 July 31, | Nine months ended July 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net income from continuing operations | $ | 5,365 | $ | 8,737 | $ | 9,298 | $ | 9,739 | ||||||||
Add: Net loss (income) attributable to noncontrolling interest | 30 | (82 | ) | (17 | ) | (390 | ) | |||||||||
Net income from continuing operations attributable to Calavo Growers, Inc. | 5,395 | 8,655 | 9,281 | 9,349 | ||||||||||||
Non-GAAP adjustments: | ||||||||||||||||
Non-cash loss recognized from unconsolidated entities (a) | 579 | 498 | 374 | 398 | ||||||||||||
Impairment, losses and charges related to property, plant and equipment (b) | — | — | — | 235 | ||||||||||||
Restructure costs - consulting, management recruiting and severance (c) | — | 1,426 | 1,037 | 5,186 | ||||||||||||
Expenses (recovery) related to Mexican tax matters (d) | 225 | (1,203 | ) | 810 | 1,231 | |||||||||||
Legal settlement and related expenses (e) | — | — | — | 700 | ||||||||||||
Professional fees related to internal investigation (f) | 1,395 | — | 6,431 | — | ||||||||||||
Foreign currency loss (gain) (g) | 4,203 | (2,019 | ) | 2,799 | (4,435 | ) | ||||||||||
Tax impact of adjustments (h) | (1,601 | ) | 325 | (2,863 | ) | (829 | ) | |||||||||
Adjusted net income from continuing operations | $ | 10,197 | $ | 7,682 | $ | 17,869 | $ | 11,835 | ||||||||
Calavo Growers, Inc.’s continuing operations per share: | ||||||||||||||||
Diluted EPS from continuing operations (GAAP) | $ | 0.30 | $ | 0.48 | $ | 0.52 | $ | 0.53 | ||||||||
Adjusted net income from continuing operations per diluted share | $ | 0.57 | $ | 0.43 | $ | 1.00 | $ | 0.66 | ||||||||
Number of shares used in per share computation: | ||||||||||||||||
Diluted | 17,842 | 17,856 | 17,848 | 17,835 |
(a) | For the three months ended July 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 nine months ended July 31, 2024, we incurred |
For the three and nine months ended July 31, 2023, we recorded | |
(d) | For the three and nine months ended July 31, 2024, we incurred |
For the three and nine months ended July 31,2023, we recorded a recovery of | |
(e) | For the three and nine months ended July 31, 2023, we accrued |
(f) | For the three and nine months ended July 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 nine months ended July 31, 2024 were |
(h) | Tax impact of non-GAAP adjustments are based on effective year-to-date tax rates. |
CALAVO GROWERS, INC.
RECONCILIATION OF EBITDA FROM CONTINUING OPERATIONS AND ADJUSTED EBITDA FROM CONTINUING OPERATIONS (UNAUDITED)
(in thousands)
The following table presents EBITDA from continuing operations and adjusted EBITDA from continuing operations, 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 July 31, | Nine months ended July 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net income from continuing operations | $ | 5,365 | $ | 8,737 | $ | 9,298 | $ | 9,739 | ||||||||
Add: Net loss (income) attributable to noncontrolling interest | 30 | (82 | ) | (17 | ) | (390 | ) | |||||||||
Net income from continuing operations attributable to Calavo Growers, Inc. | 5,395 | 8,655 | 9,281 | 9,349 | ||||||||||||
Interest Income | (100 | ) | (117 | ) | (340 | ) | (363 | ) | ||||||||
Interest Expense | 833 | 766 | 2,619 | 1,387 | ||||||||||||
Provision for Income Taxes | (1,441 | ) | 2,408 | (478 | ) | 2,851 | ||||||||||
Depreciation and Amortization | 2,011 | 2,024 | 6,121 | 6,048 | ||||||||||||
Stock-Based Compensation | 388 | 893 | 1,736 | 4,198 | ||||||||||||
EBITDA from continuing operations | $ | 7,086 | $ | 14,629 | $ | 18,939 | $ | 23,470 | ||||||||
Adjustments: | ||||||||||||||||
Non-cash (income) loss recognized from unconsolidated entities (a) | 579 | 498 | 374 | (100 | ) | |||||||||||
Impairment, losses and charges related to property, plant and equipment (b) | — | — | — | 235 | ||||||||||||
Restructure costs - consulting and management recruiting and severance (c) | — | 1,096 | 967 | 3,626 | ||||||||||||
Expenses (recovery) related to Mexican tax matters (d) | 225 | (1,203 | ) | 810 | 1,231 | |||||||||||
Legal settlement and related expenses (e) | — | — | — | 700 | ||||||||||||
Professional fees related to internal investigation (f) | 1,395 | — | 6,431 | — | ||||||||||||
Foreign currency loss (gain) (g) | 4,203 | (2,019 | ) | 2,799 | (4,435 | ) | ||||||||||
Adjusted EBITDA from continuing operations | $ | 13,488 | $ | 13,001 | $ | 30,320 | $ | 24,727 |
See prior page for footnote references
FAQ
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