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Jan 31, 2023
Limoneira Q1 2023 Earnings Report
Reported revenue of $37.9 million, operating income of $25.9 million, and net income of $15.5 million.
Key Takeaways
Limoneira Company reported first quarter fiscal year 2023 financial results with a revenue of $37.9 million. The company's operating income was $25.9 million, driven by a $40.0 million gain on the sale of Northern Properties. Net income applicable to common stock was $15.5 million, or $0.84 per diluted share.
Achieved $37.9 million of revenue in the first quarter despite heavy rainfall delaying lemon and avocado harvests.
Operating income for the first quarter was $25.9 million, compared to a prior-year operating loss of $9.6 million, driven by a $40.0 million gain on the sale of Northern Properties.
Net debt position reduced by 72% from $105.0 million at the end of fiscal year 2022 to $28.9 million at the end of the first quarter of fiscal year 2023.
The company expects total proceeds of $180 million from the sale of six non-strategic assets and has successfully closed on the sale of four of these assets for a total of $130 million over the past six months.
Limoneira
Limoneira
Limoneira Revenue by Segment
Revenue by Segment
Agribusiness Revenue
CapyFin.comOther Operations Revenue
CapyFin.com Forward Guidance
The Company believes it will experience improving year-over-year results in fiscal year 2023 compared to fiscal year 2022 due to its stronger position in retail food and club grocery.
Positive Outlook
- Expects fresh lemon volumes to be in the range of 5.0 million to 5.4 million cartons for fiscal year 2023.
- Expects avocado volumes to be in the range of 4.0 million to 5.0 million pounds for fiscal year 2023.
- The company expects to receive total proceeds of $115 million from Harvest at Limoneira, LLCB II and East Area II spread out over seven fiscal years, with approximately $8 million received in fiscal year 2022.
- Has 900 acres of non-bearing lemons estimated to become full bearing over the next four to five years, which the Company expects will enable strong organic growth in the coming years.
- Also expects to have a steady increase in third-party grower fruit.
Challenges Ahead
- The Company’s food service business and industry logistics continue to experience slowdown due to supply chain and inflationary pressures on a global basis.
- Results for the first quarter were impacted by heavy rains in California pushing the initial first quarter avocado harvest and a portion of the lemon harvest into the second quarter.
- Softer pricing for lemons as the markets continue to work through surplus inventory.
- Net cash used in operating activities was $21.2 million, compared to $8.2 million in the prior fiscal quarter
- Adjusted EBITDA was a loss of $7.9 million in the first quarter of fiscal year 2023, compared to a loss of $5.6 million in the same period of fiscal year 2022.
Revenue & Expenses
Visualization of income flow from segment revenue to net income