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 second quarter ended April 30, 2023.
Second Quarter Financial Overview
- Total revenue of $244.7 million, a 26% decline from prior year
- Grown segment revenue decreased 33% year-over-year to $140.7
million
- Prepared segment revenue decreased 14% year-over-year to $104.5
million
- Gross profit of $15.0 million, compared to $21.7 million for
the year-ago quarter
- Grown segment gross profit decreased $5.6 million from prior
year to $12.6 million
- Prepared segment gross profit decreased $1.1 million from prior
year to $2.4 million
- Net loss of $(4.0) million, or $(0.23) per diluted share,
compared to net loss of $(0.2) million, or $(0.01) per diluted
share, for the same period last year
- Adjusted net loss of $(0.2) million, or $(0.01) per diluted
share, compared to adjusted net income of $5.8 million, or $0.33
per diluted share for the year-ago quarter
- Adjusted EBITDA of $6.9 million compared to $12.7 million for
the same period last 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.
Second Quarter Highlights
- Lee E. Cole appointed President and Chief Executive
Officer
- Avocado margins improved versus fiscal first quarter
- Implemented restructuring activities
- Ramping up new Prepared volume for the fiscal second half
- Board declared a quarterly cash dividend of $0.10 per share to
be paid on July 11, 2023 to investors of record on June 27,
2023
Management Commentary“I am excited to be back
at Calavo, a company that I helped to build and lead as CEO for 20
years and as Chairman for 28 years,” said Lee E. Cole, President
and Chief Executive Officer of Calavo Growers, Inc. “I am back
because I believe in the long-term earnings potential of this
company, and I am confident that our team under my leadership can
restore Calavo’s profitability. My primary focus since returning
has been on the avocado business, and I am really pleased with the
progress we’re making. Avocado margins have improved from the first
quarter, and avocado volume in the second quarter was up 11%
compared to the prior year quarter.
“Our Prepared segment continues to see strong performance in
guacamole as we benefit from both fruit cost declines and
operational improvements as compared to the year ago quarter,” Cole
continued. “The results from the guacamole business, however, were
more than offset by lower earnings in the fresh cut division
attributed primarily to lower volume. We expect fresh cut earnings
to improve in the second half as we onboard volume for new and
existing customers and realize benefits from various operational
projects.
“With the improvements we’re making to the business, I’m
optimistic about the second half of the year and feel confident
that we’re putting Calavo back on track for long-term success. It’s
an exciting time to be at Calavo, and I look forward to seeing the
results of our work.”
Second Quarter 2023 Consolidated Financial
Review Total revenue for the second quarter 2023 was
$244.7 million, compared to $331.4 million for the second quarter
2022, a decline of 26%. Grown segment sales decreased 33% and
Prepared segment sales decreased 14%. The average selling price of
avocados in the Company’s Grown segment decreased by over 40% while
volumes were up 11% versus the prior-year period.
Gross profit for the second quarter was $15.0 million compared
to $21.7 million for the same period last year.
Selling, general and administrative (SG&A) expenses for the
second quarter totaled $18.1 million, compared to $16.6 million for
the same period last year. The increase primarily was due to costs
associated with restructuring and the departure of our former
CEO.
Net loss for the second quarter was $(4.0) million, or $(0.23)
per share. This compares with a net loss of $(0.2) million, or
$(0.01) per diluted share, for the same period last year.
Adjusted net loss was $(0.2) million, or $(0.01) per diluted
share, compared to adjusted net income of $5.8 million, or $0.33
per diluted share last year.
Adjusted EBITDA was $6.9 million compared to $12.7 million for
the same period last year.
Balance Sheet and Liquidity The Company ended
the quarter with $29.3 million of total debt, which included $22.2
million of borrowings under its line of credit and $7.1 million of
other long-term obligations and finance leases. Cash and cash
equivalents totaled $4.2 million, and the Company had $22 million
of available liquidity as of April 30, 2022.
Segment PerformanceGrownGrown segment gross
profit declined $5.6 million from the prior year to $12.6 million
despite an 11% increase in avocado volume as profit per case
declined. Avocado prices rose from the first quarter but were below
prior year levels by over 40%. Our second quarter avocado volume
from Mexico increased 35% compared to the prior year quarter while
volume from California declined 83% as the harvest was delayed by
wet field conditions. Industry volume from Mexico was up 48% in the
fiscal second quarter, rebounding from a lower volume crop last
year, and we expect volume from Mexico to remain strong for the
balance of the fiscal year. The California season is now underway
and, given the delayed start, we expect higher than typical
California volume in our fiscal second half.
Prepared Prepared segment gross profit declined $1.1 million
from the prior year to $2.4 million, consisting of a $3.0 million
gross profit decline in the fresh cut division, partially offset by
a $1.8 million increase in the guacamole division. Fresh cut gross
profit declined primarily due to weaker volume, down 19% from the
prior year, and a more challenging price environment. Syndicated
retail data indicates unit sales remain down on a calendar
year-to-date basis for produce categories, particularly for
value-added produce, while dollar sales are about flat. Similarly,
retail guacamole unit sales are also down, as are dollar sales. We
are on track to deliver new volume to customers in fresh cut in the
second half, but we anticipate that generally slower retail
velocities will persist. Gross profit in the guacamole division
more than doubled compared to the prior year as lower fruit cost
and improved plant performance generated a guacamole gross margin
of 22% compared to 8% last year. We expect avocado input costs to
remain favorable in the second half of fiscal 2023 relative to
fiscal 2022 due to improved avocado supply. Prepared gross profit
in the second quarter also was impacted by write-offs of $0.4
million associated with restructuring our Salsa
business.
OutlookWe expect earnings to improve in the
second half of the year compared to the first half on improved
performance in both Grown and Prepared. In Grown, avocado margins
in the fiscal third quarter through early June have exceeded the
average level realized in our fiscal second quarter. We expect
avocado volumes in the fiscal second half to exceed prior year
levels.
In Prepared, we expect the impact of new volume and other
operational initiatives to drive improved performance in fresh cut
in the fiscal second half compared to the fiscal first half. We
expect the guacamole division to continue to benefit from
reasonable fruit costs and operational improvements versus the
prior year, achieving a gross margin of approximately 20% for the
full year.
Non-GAAP Financial MeasuresThis 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
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 and adjusted EBITDA
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 ever 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 new 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 and potential long-term adverse effects from
reducing capital expenditures; 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 restrictions as a result of COVID-19 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; and 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.
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)
|
|
|
|
|
|
|
|
|
|
April 30, |
|
October 31, |
|
|
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
4,198 |
|
$ |
2,060 |
|
Restricted cash |
|
|
— |
|
|
1,074 |
|
Accounts receivable, net of allowances of $3,438 (2023) and $4,199
(2022) |
|
|
68,827 |
|
|
59,016 |
|
Inventories |
|
|
42,818 |
|
|
38,830 |
|
Prepaid expenses and other current assets |
|
|
11,296 |
|
|
8,868 |
|
Advances to suppliers |
|
|
13,271 |
|
|
12,430 |
|
Income taxes receivable |
|
|
4,330 |
|
|
3,396 |
|
Total current assets |
|
|
144,740 |
|
|
125,674 |
|
Property, plant, and equipment, net |
|
|
115,086 |
|
|
113,310 |
|
Operating lease right-of-use assets |
|
|
51,265 |
|
|
54,518 |
|
Investments in unconsolidated entities |
|
|
3,882 |
|
|
3,782 |
|
Deferred income taxes |
|
|
5,586 |
|
|
5,433 |
|
Goodwill |
|
|
28,653 |
|
|
28,653 |
|
Intangibles, net |
|
|
6,450 |
|
|
7,206 |
|
Other assets |
|
|
51,496 |
|
|
47,170 |
|
|
|
$ |
407,158 |
|
$ |
385,746 |
|
Liabilities and shareholders' equity |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Payable to growers |
|
$ |
26,834 |
|
$ |
20,223 |
|
Trade accounts payable |
|
|
19,176 |
|
|
10,436 |
|
Accrued expenses |
|
|
50,247 |
|
|
51,795 |
|
Other current liabilities |
|
|
11,000 |
|
|
11,000 |
|
Current portion of operating leases |
|
|
6,832 |
|
|
6,925 |
|
Current portion of long-term obligations and finance leases |
|
|
1,693 |
|
|
1,574 |
|
Total current liabilities |
|
|
115,782 |
|
|
101,953 |
|
Long-term liabilities: |
|
|
|
|
|
|
|
Borrowings pursuant to credit facilities, long-term |
|
|
22,200 |
|
|
1,200 |
|
Long-term operating leases, less current portion |
|
|
48,862 |
|
|
52,140 |
|
Long-term obligations and finance leases, less current portion |
|
|
4,839 |
|
|
4,447 |
|
Other long-term liabilities |
|
|
2,284 |
|
|
2,635 |
|
Total long-term liabilities |
|
|
78,185 |
|
|
60,422 |
|
Commitments and contingencies |
|
|
|
|
|
|
|
Shareholders' equity: |
|
|
|
|
|
|
|
Total shareholders' equity |
|
|
213,191 |
|
|
223,371 |
|
|
|
$ |
407,158 |
|
$ |
385,746 |
|
CALAVO GROWERS,
INC.CONSOLIDATED CONDENSED STATEMENTS OF
OPERATIONS (UNAUDITED)(in thousands, except per
share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended |
|
Six months ended |
|
|
April 30, |
|
April 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
244,689 |
|
|
$ |
331,418 |
|
|
$ |
470,893 |
|
|
$ |
605,510 |
|
Cost of sales |
|
|
229,652 |
|
|
|
309,677 |
|
|
|
441,424 |
|
|
|
570,541 |
|
Gross profit |
|
|
15,037 |
|
|
|
21,741 |
|
|
|
29,469 |
|
|
|
34,969 |
|
Selling, general and
administrative |
|
|
18,076 |
|
|
|
16,551 |
|
|
|
34,429 |
|
|
|
31,745 |
|
Expenses related to Mexican tax
matters |
|
|
386 |
|
|
|
478 |
|
|
|
2,434 |
|
|
|
845 |
|
Impairment and charges related to
Florida facility closure |
|
|
— |
|
|
|
305 |
|
|
|
— |
|
|
|
959 |
|
Operating income (loss) |
|
|
(3,425 |
) |
|
|
4,407 |
|
|
|
(7,394 |
) |
|
|
1,420 |
|
Interest expense |
|
|
(273 |
) |
|
|
(460 |
) |
|
|
(689 |
) |
|
|
(787 |
) |
Other income, net |
|
|
278 |
|
|
|
496 |
|
|
|
632 |
|
|
|
1,155 |
|
Unrealized net loss on Limoneira
shares |
|
|
— |
|
|
|
(4,898 |
) |
|
|
— |
|
|
|
(7,028 |
) |
Loss before income taxes and loss
from unconsolidated entities |
|
|
(3,420 |
) |
|
|
(455 |
) |
|
|
(7,451 |
) |
|
|
(5,240 |
) |
Income tax benefit (expense) |
|
|
(484 |
) |
|
|
187 |
|
|
|
596 |
|
|
|
1,347 |
|
Net income (loss) from
unconsolidated entities |
|
|
(56 |
) |
|
|
(8 |
) |
|
|
100 |
|
|
|
(543 |
) |
Net loss |
|
|
(3,960 |
) |
|
|
(276 |
) |
|
|
(6,755 |
) |
|
|
(4,436 |
) |
Add: Net loss (income) attributable to noncontrolling interest |
|
|
(35 |
) |
|
|
85 |
|
|
|
(308 |
) |
|
|
202 |
|
Net loss attributable to Calavo
Growers, Inc. |
|
$ |
(3,995 |
) |
|
$ |
(191 |
) |
|
$ |
(7,063 |
) |
|
$ |
(4,234 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Calavo Growers, Inc.’s net loss
per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
(0.23 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.40 |
) |
|
$ |
(0.24 |
) |
Diluted |
|
$ |
(0.23 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.40 |
) |
|
$ |
(0.24 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares used in per
share computation: |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
17,721 |
|
|
|
17,664 |
|
|
|
17,697 |
|
|
|
17,659 |
|
Diluted |
|
|
17,721 |
|
|
|
17,664 |
|
|
|
17,697 |
|
|
|
17,659 |
|
CALAVO GROWERS, INC.NET
SALES AND GROSS PROFIT BY BUSINESS SEGMENT
(UNAUDITED)(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interco. |
|
|
|
|
|
|
Grown |
|
Prepared |
|
Elimins. |
|
Total |
|
|
|
(All amounts are presented in thousands) |
|
Three months ended April
30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
140,673 |
|
$ |
104,388 |
|
$ |
(372 |
) |
|
$ |
244,689 |
|
Cost of sales |
|
|
128,074 |
|
|
101,950 |
|
|
(372 |
) |
|
|
229,652 |
|
Gross profit |
|
$ |
12,599 |
|
$ |
2,438 |
|
$ |
— |
|
|
$ |
15,037 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended April
30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
210,997 |
|
$ |
120,907 |
|
$ |
(486 |
) |
|
$ |
331,418 |
|
Cost of sales |
|
|
192,841 |
|
|
117,322 |
|
|
(486 |
) |
|
|
309,677 |
|
Gross profit |
|
$ |
18,156 |
|
$ |
3,585 |
|
$ |
— |
|
|
$ |
21,741 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interco. |
|
|
|
|
|
|
Grown |
|
Prepared |
|
Elimins. |
|
Total |
|
|
|
(All amounts are presented in thousands) |
|
Six months ended April
30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
258,742 |
|
$ |
212,843 |
|
$ |
(692 |
) |
|
$ |
470,893 |
|
Cost of sales |
|
|
236,662 |
|
|
205,454 |
|
|
(692 |
) |
|
|
441,424 |
|
Gross profit |
|
$ |
22,080 |
|
$ |
7,389 |
|
$ |
— |
|
|
$ |
29,469 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended April
30, 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
373,582 |
|
$ |
233,018 |
|
$ |
(1,090 |
) |
|
$ |
605,510 |
|
Cost of sales |
|
|
343,760 |
|
|
227,871 |
|
|
(1,090 |
) |
|
|
570,541 |
|
Gross profit |
|
$ |
29,822 |
|
$ |
5,147 |
|
$ |
— |
|
|
$ |
34,969 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended April 30, 2023 and 2022, intercompany
sales and cost of sales of $0.4 million and $0.5 million
between Grown products and Prepared products were eliminated. For
the six months ended April 30, 2023 and 2022, intercompany sales
and cost of sales of $0.7 million and $1.1 million between
Grown products and Prepared products were eliminated.
CALAVO GROWERS,
INC.RECONCILIATION OF ADJUSTED NET INCOME AND EPS
(UNAUDITED)(in thousands, except per share
amounts)
The following table presents adjusted net income and adjusted
diluted EPS, 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 endedApril 30, |
|
Six months endedApril 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net loss attributable to Calavo Growers, Inc. |
|
$ |
(3,995 |
) |
|
$ |
(191 |
) |
|
$ |
(7,063 |
) |
|
$ |
(4,234 |
) |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash losses (income)
recognized from unconsolidated entities (a) |
|
|
56 |
|
|
|
8 |
|
|
|
(100 |
) |
|
|
543 |
|
Net loss on Limoneira shares
(b) |
|
|
— |
|
|
|
4,898 |
|
|
|
— |
|
|
|
7,028 |
|
Rent expense add back (c) |
|
|
108 |
|
|
|
108 |
|
|
|
216 |
|
|
|
216 |
|
Restructure costs - consulting,
management recruiting and severance (d) |
|
|
3,557 |
|
|
|
2,157 |
|
|
|
3,760 |
|
|
|
3,275 |
|
Expenses related to Mexican tax
matters (e) |
|
|
386 |
|
|
|
478 |
|
|
|
2,434 |
|
|
|
845 |
|
Impairment, losses and charges
related to property, plant and equipment (f) |
|
|
235 |
|
|
|
305 |
|
|
|
235 |
|
|
|
959 |
|
Legal settlement and related
expenses (g) |
|
|
700 |
|
|
|
— |
|
|
|
700 |
|
|
|
— |
|
Tax impact of adjustments
(h) |
|
|
(1,261 |
) |
|
|
(1,979 |
) |
|
|
(1,811 |
) |
|
|
(3,217 |
) |
Adjusted net income (loss)
attributed to Calavo Growers, Inc. |
|
$ |
(214 |
) |
|
$ |
5,784 |
|
|
$ |
(1,629 |
) |
|
$ |
5,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calavo Growers, Inc.’s net loss
per share: |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS (GAAP) |
|
$ |
(0.23 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.40 |
) |
|
$ |
(0.24 |
) |
Adjusted net income (loss) per
diluted share |
|
$ |
(0.01 |
) |
|
$ |
0.33 |
|
|
$ |
(0.09 |
) |
|
$ |
0.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Number of shares used in per
share computation: |
|
|
|
|
|
|
|
|
|
|
|
|
Diluted |
|
|
17,721 |
|
|
|
17,756 |
|
|
|
17,697 |
|
|
|
17,718 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) For the three months ended April 30, 2023
and 2022, we realized losses of $0.1 million and losses less than
$0.1 million from Agricola Don Memo. For the six months ended April
30, 2023 and 2022, we realized income of $0.1 million and losses of
$0.5 million from Agricola Don Memo.
(b) For the three and six months ended April
30, 2022, we recorded $4.9 million and $7.0 million in unrealized
losses related to these mark-to-market adjustments.
(c) For the three months ended April 30, 2023
and 2022, we incurred $0.1 million related to rent paid for
Prepared’s former corporate office space that we have vacated and
plan to sublease. For the six months ended April 30, 2023 and 2022,
we incurred $0.2 million related to rent paid for Prepared’s former
corporate office space that we have vacated and plan to
sublease.
(d) For the three and six months ended April
30, 2023, we recorded $0.6 million in severance costs as part of
U.S. restructuring efforts. In addition, we incurred $1.2 million
in severance and other costs and $1.2 million in stock-based
compensation related to the departure of our former Chief Executive
Officer. Additionally, we incurred $0.6 million related to the
divesture of Salsa Lisa.
For the three and six months ended April 30, 2022, we recorded
$0.7 million and $1.8 million of consulting expenses related to an
enterprise-wide strategic business operations study conducted by a
third-party management consulting organization for the purpose of
restructuring to improve the profitability of the organization and
efficiency of our operations. In addition, for the three and six
months ended April 30, 2022, we recorded $1.4 million of severance
accrual related to the Project Uno restructuring.
(e) For the three months ended April 30, 2023
and 2022, we incurred $0.4 million and $0.5 million of professional
fees related to the Mexican tax matters. For the six months ended
April 30, 2023 and 2022, we incurred $1.0 million and $0.5 million
of professional fees related to the Mexican tax matters. For the
six months ended April 30, 2023, we recognized a reserve of $1.4
million related to the collectability of IVA receivables. See Note
10 for more information.
(f) On April 1, 2023, we completed the
divesture of our salsa business in our Prepared segment and
incurred $0.2 million in losses related to the disposal of
property, plant and equipment.
On October 18, 2021, we announced the closure of RFG’s food
processing operations at our Green Cove Springs (near
Jacksonville), Florida facility, as part of our Project Uno profit
improvement program. As of November 15, 2021, the Green Cove
facility of RFG ceased operations. We incurred $0.7 million of
expenses in the first quarter of fiscal 2022, related to the
closure of this facility.
(g) For the three and six months ended April
30, 2023, we accrued $0.6 million in a legal settlement from a
dispute from over 5 years ago connected to an old unused
distribution agreement that was entered into over a decade
ago. This legal settlement was considered out of the
ordinary, due to the length it took to settle and since we have not
done business with this party for many years. There are no
other similar matters outstanding. In addition, we incurred $0.1
million in associated legal fees.
(h) 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 endedApril 30, |
|
Six months endedApril 30, |
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
Net loss attributable to Calavo Growers, Inc. |
|
$ |
(3,995 |
) |
|
$ |
(191 |
) |
|
$ |
(7,063 |
) |
|
$ |
(4,234 |
) |
Interest Income |
|
|
(90 |
) |
|
|
(133 |
) |
|
|
(363 |
) |
|
|
(266 |
) |
Interest Expense |
|
|
273 |
|
|
|
460 |
|
|
|
689 |
|
|
|
787 |
|
Provision for Income
Taxes |
|
|
484 |
|
|
|
(187 |
) |
|
|
(596 |
) |
|
|
(1,347 |
) |
Depreciation &
Amortization |
|
|
4,287 |
|
|
|
4,093 |
|
|
|
8,453 |
|
|
|
8,405 |
|
Stock-Based Compensation |
|
|
2,150 |
|
|
|
812 |
|
|
|
3,403 |
|
|
|
1,368 |
|
EBITDA |
|
$ |
3,109 |
|
|
$ |
4,854 |
|
|
$ |
4,523 |
|
|
$ |
4,713 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash losses recognized
from unconsolidated entities (a) |
|
|
56 |
|
|
|
8 |
|
|
|
(100 |
) |
|
|
543 |
|
Net loss on Limoneira shares
(b) |
|
|
— |
|
|
|
4,898 |
|
|
|
— |
|
|
|
7,028 |
|
Rent expense add back (c) |
|
|
108 |
|
|
|
108 |
|
|
|
216 |
|
|
|
216 |
|
Restructure costs - consulting
and management recruiting and severance (d) |
|
|
2,327 |
|
|
|
2,019 |
|
|
|
2,530 |
|
|
|
3,137 |
|
Expenses related to Mexican
tax matters (e) |
|
|
386 |
|
|
|
478 |
|
|
|
2,434 |
|
|
|
845 |
|
Impairment, losses and charges
related to property, plant and equipment (f) |
|
|
235 |
|
|
|
311 |
|
|
|
235 |
|
|
|
929 |
|
Legal settlement and related
expenses (g) |
|
|
700 |
|
|
|
— |
|
|
|
700 |
|
|
|
— |
|
Adjusted EBITDA |
|
$ |
6,921 |
|
|
$ |
12,676 |
|
|
$ |
10,538 |
|
|
$ |
17,411 |
|
See prior page for footnote references
Calavo Growers (NASDAQ:CVGW)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Calavo Growers (NASDAQ:CVGW)
과거 데이터 주식 차트
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