Calavo Growers Inc. (CVGW, Financial) filed Quarterly Report for the period ended 2011-01-31.
Calavo Growers Inc. has a market cap of $312.2 million; its shares were traded at around $21.22 with a P/E ratio of 17.4 and P/S ratio of 0.8. The dividend yield of Calavo Growers Inc. stocks is 2.5%. Calavo Growers Inc. had an annual average earning growth of 10.7% over the past 10 years.
Cash used in operating activities was $7.7 million for the three months ended January 31, 2011, compared to $0.4 million used in operations for the similar period in fiscal 2010. Operating cash flows for the three months ended January 31, 2011 reflect our net income of $2.3 million, net non-cash charges (depreciation and amortization, stock compensation expense, interest on deferred consideration, and income from unconsolidated entities) of $0.8 million and a net decrease in the noncash components of our operating capital of approximately $10.8 million.
Decreases in operating cash flows, caused by working capital changes, includes a net decrease in payable to growers of $7.2 million, a net increase in accounts receivable of $4.9 million, an increase in inventory of $0.9 million, and an increase in income tax receivable of $0.6 million, partially offset by a decrease in advances to suppliers of $1.2 million, an increase in trade accounts payable and accrued expenses of $1.1 million and a decrease in prepaid expenses and other current assets of $0.5 million.
Cash provided by financing activities was $8.7 million for the three months ended January 31, 2011, which related principally to borrowings on our credit facilities totaling $16.6 million, and exercises of stock options of $0.2 million, partially offset by the payment of our $8.1 million dividend.
Our principal sources of liquidity are our existing cash balances, cash generated from operations and amounts available for borrowing under our existing credit facilities. Cash and cash equivalents as of January 31, 2011 and October 31, 2010 totaled $0.9 million and $1.1 million. Our working capital at January 31, 2011 was $17.0 million, compared to $14.8 million at October 31, 2010.
We believe that cash flows from operations and available credit facilities will be sufficient to satisfy our future capital expenditures, grower recruitment efforts, working capital and other financing requirements. We will continue to evaluate grower recruitment opportunities and exclusivity arrangements with food service companies to fuel growth in each of our business segments. Our non-collateralized, revolving credit facilities with Farm Credit West, PCA and Bank of America, N.A. expire in February 2012 and July 2011. Under the terms of these agreements, we are advanced funds for both working capital and long-term productive asset purchases. Total credit available under these combined borrowing agreements was $45 million, with a weighted-average interest rate of 1.8% and 2.3% at January 31, 2011 and October 31, 2010. Under these credit facilities, we had $24.7 million and $8.2 million outstanding as January 31, 2011 and October 31, 2010. These credit facilities contain various financial covenants, the most significant relating to tangible net worth (as defined), and Funded Debt to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (as defined). We were in compliance with all such covenants at January 31, 2011.
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Calavo Growers Inc. has a market cap of $312.2 million; its shares were traded at around $21.22 with a P/E ratio of 17.4 and P/S ratio of 0.8. The dividend yield of Calavo Growers Inc. stocks is 2.5%. Calavo Growers Inc. had an annual average earning growth of 10.7% over the past 10 years.
Highlight of Business Operations:
Selling, general and administrative expenses include costs of marketing and advertising, sales expenses and other general and administrative costs. Selling, general and administrative expenses decreased $0.1 million, or 2.9%, for the three months ended January 31, 2011, when compared to the same period for fiscal 2010. This decrease was primarily related to lower corporate costs, including, but not limited to, costs related to a decrease in expected management bonuses (totaling approximately $0.2 million), as well as a decrease in legal fees (totaling approximately $0.1 million). These decreases were partially offset by increases in audit fees (totaling approximately $0.1 million) and salaries and benefits (totaling approximately $0.1 million).Cash used in operating activities was $7.7 million for the three months ended January 31, 2011, compared to $0.4 million used in operations for the similar period in fiscal 2010. Operating cash flows for the three months ended January 31, 2011 reflect our net income of $2.3 million, net non-cash charges (depreciation and amortization, stock compensation expense, interest on deferred consideration, and income from unconsolidated entities) of $0.8 million and a net decrease in the noncash components of our operating capital of approximately $10.8 million.
Decreases in operating cash flows, caused by working capital changes, includes a net decrease in payable to growers of $7.2 million, a net increase in accounts receivable of $4.9 million, an increase in inventory of $0.9 million, and an increase in income tax receivable of $0.6 million, partially offset by a decrease in advances to suppliers of $1.2 million, an increase in trade accounts payable and accrued expenses of $1.1 million and a decrease in prepaid expenses and other current assets of $0.5 million.
Cash provided by financing activities was $8.7 million for the three months ended January 31, 2011, which related principally to borrowings on our credit facilities totaling $16.6 million, and exercises of stock options of $0.2 million, partially offset by the payment of our $8.1 million dividend.
Our principal sources of liquidity are our existing cash balances, cash generated from operations and amounts available for borrowing under our existing credit facilities. Cash and cash equivalents as of January 31, 2011 and October 31, 2010 totaled $0.9 million and $1.1 million. Our working capital at January 31, 2011 was $17.0 million, compared to $14.8 million at October 31, 2010.
We believe that cash flows from operations and available credit facilities will be sufficient to satisfy our future capital expenditures, grower recruitment efforts, working capital and other financing requirements. We will continue to evaluate grower recruitment opportunities and exclusivity arrangements with food service companies to fuel growth in each of our business segments. Our non-collateralized, revolving credit facilities with Farm Credit West, PCA and Bank of America, N.A. expire in February 2012 and July 2011. Under the terms of these agreements, we are advanced funds for both working capital and long-term productive asset purchases. Total credit available under these combined borrowing agreements was $45 million, with a weighted-average interest rate of 1.8% and 2.3% at January 31, 2011 and October 31, 2010. Under these credit facilities, we had $24.7 million and $8.2 million outstanding as January 31, 2011 and October 31, 2010. These credit facilities contain various financial covenants, the most significant relating to tangible net worth (as defined), and Funded Debt to Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) (as defined). We were in compliance with all such covenants at January 31, 2011.
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