- Revenue: $44.6 million, fell short of estimates of $53.96 million and down from $48.1 million in the same quarter last year.
- Net Income: $6.4 million, a significant turnaround from a net loss of $1.7 million in the same quarter last year.
- GAAP EPS: $0.35 per diluted share, compared to a net loss per diluted share of $0.10 in the same period last year.
- Adjusted EBITDA: $16.6 million, more than double the $6.2 million reported in the same quarter last year.
- Agribusiness Revenue: $43.3 million, down from $46.7 million in the same quarter last year.
- Avocado Revenue: $2.3 million, compared to $3.6 million in the same quarter last year, with a notable increase in volume sold but at a lower average price per pound.
- Operating Loss: $4.7 million, compared to an operating loss of $3.9 million in the same quarter last year.
On June 6, 2024, Limoneira Co (LMNR, Financial) released its 8-K filing for the second quarter of fiscal year 2024. Limoneira Co is an agribusiness company with operating segments including Fresh Lemons, Lemon Packing, Avocados, and Other Agribusiness. The company generates maximum revenue from the Fresh Lemons segment.
Performance Overview
For the second quarter of fiscal year 2024, Limoneira Co reported total net revenue of $44.6 million, falling short of the analyst estimate of $53.96 million. However, the company exceeded earnings expectations with an EPS of $0.35, compared to the estimated $0.15.
Key Financial Achievements
Despite the revenue miss, Limoneira Co achieved significant milestones in its real estate development joint venture, Harvest at Limoneira. The company closed an additional 554 homesites and received approval to increase the total number of entitled lots by 550, leading to a 46% increase in expected proceeds to $180 million over the next seven years.
Harold Edwards, President and CEO, stated, “We have increased our cash flow projections from the joint venture by 46% and now expect to receive $180 million in total future proceeds spread out over the next seven years, with approximately $18 million expected in fiscal year 2024.”
Income Statement Highlights
| Metric | Q2 FY2024 | Q2 FY2023 |
|---|---|---|
| Total Net Revenue | $44.6 million | $48.1 million |
| Agribusiness Revenue | $43.3 million | $46.7 million |
| Operating Loss | $4.7 million | $3.9 million |
| Net Income Applicable to Common Stock | $6.4 million | $(1.7) million |
| Net Income per Diluted Share | $0.35 | $(0.10) |
Balance Sheet and Cash Flow
As of April 30, 2024, Limoneira Co reported total assets of $322.2 million, up from $301.2 million at the end of fiscal year 2023. The company’s long-term debt increased to $59.5 million from $40.6 million. Net cash used in operating activities for the first half of fiscal year 2024 was $13.3 million, compared to $18.4 million in the same period of the prior fiscal year.
Real Estate Development and Future Projections
The company’s joint venture with the Lewis Group of Companies has been a significant contributor to its financial performance. The approval to increase the total number of residential units from 1,500 to 2,050 units is expected to provide substantial future cash flows. Additionally, Limoneira Co plans to expand its avocado plantings by 1,000 acres over the next three years, which is expected to boost long-term EBITDA to a range of $45 million to $55 million by fiscal year 2030.
Conclusion
While Limoneira Co faced challenges with a decline in revenue, the company’s strategic real estate developments and increased avocado volume guidance highlight its potential for future growth. The significant milestones achieved in the Harvest at Limoneira project and the planned expansion of avocado production are expected to drive long-term value for shareholders.
Explore the complete 8-K earnings release (here) from Limoneira Co for further details.
