Limoneira Company Announces Second Quarter Fiscal Year 2025 Financial Results
Company Announces Plan to Merge Citrus Sales and Marketing into Sunkist Growers; Expected to Generate
Operating Loss Improved
Avocado Business Continued to Deliver Strong Pricing Performance in Second Quarter of Fiscal Year 2025
Company Reiterates Avocado Volume Guidance for Fiscal Year 2025
Management Comments
Harold Edwards, President and Chief Executive Officer of the Company, stated, “The oversupplied lemon market created pricing pressure in our second quarter, yet we delivered strong results across our other business lines. Our avocado operations benefited from robust pricing that continued throughout the quarter, and we expect strong results in the third quarter when the majority of our harvest occurs. Our real estate development project, Harvest at Limoneira, maintained strong home sales velocity, which could potentially accelerate the timing of Phase 3, and we remain on track to close two additional water monetization transactions this fiscal year.”
Mr. Edwards continued, “Today we are announcing our decision to merge our citrus sales and marketing into Sunkist Growers as one of their largest lemon growers. This enables us to reunite with a partner with whom we share deep historical ties and common founding values as an exclusive Sunkist private licensed packer. We expect this to quickly improve the efficiency of our supply chain, significantly reduce costs and provide us access to many of the best food service and retail customers in the country.”
“We expect this partnership will begin in the first quarter of fiscal year 2026 when our sales and marketing personnel and related administrative support will transfer to Sunkist. We anticipate that this will enable us to achieve
Fiscal Year 2025 Second Quarter Results
For the second quarter of fiscal year 2025, total net revenue was
Agribusiness revenue in the second quarter of fiscal year 2025 includes
The Company recognized
The Company recognized
Specialty citrus and wine grape revenue was
Farm management revenues were
Total costs and expenses in the second quarter of fiscal year 2025 were
Operating loss for the second quarter of fiscal year 2025 was
Total other income was
Net loss applicable to common stock, after preferred dividends, for the second quarter of fiscal year 2025 was
Adjusted net loss for diluted EPS in the second quarter of fiscal year 2025 was
Non-GAAP adjusted EBITDA was a loss of
Fiscal Year 2025 First Six Months Results
For the six months ended April 30, 2025, total net revenue was
For the first six months of fiscal year 2025, adjusted net loss for diluted EPS was
Balance Sheet and Liquidity
For the first half of fiscal year 2025, net cash used in operating activities was
Long-term debt as of April 30, 2025, was
Real Estate Development and Water Transactions
In October 2023, the Company’s real estate joint venture completed the sell-out of Phase 1 of the development. In April 2024, the joint venture closed on lot sales representing 554 residential units, thus completing the sell-out of Phase 2 of the development. Total lot sales of 1,261 residential units closed since the project’s inception. In May 2024, the Company announced that the
In January 2025, the Company sold water pumping rights in the
Guidance
The Company now expects fresh lemon volumes to be in the range of 4.5 million to 5.0 million cartons for fiscal year 2025. The Company continues to expect avocado volumes to be in the range of 7.0 million to 8.0 million pounds for fiscal year 2025.
The Company expects to receive total proceeds of approximately
Harvest at Limoneira Cash Flow Projections (in millions)
Fiscal Year |
|
2024 Actual |
|
2025 Actual |
|
2026 |
|
2027 |
|
2028 |
|
2029 |
|
2030 |
Projected Distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company has 700 acres of non-bearing avocados 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. Additionally, the Company plans to continue expanding its plantings of avocados over three years. The foregoing describes organic growth opportunities and does not include potential acquisition opportunities for the Company in its highly fragmented industry.
Looking ahead, we continue to see a strong EBITDA outlook that is underpinned by plans to expand avocado production by an additional 500 acres through fiscal year 2027 to capitalize on expected robust consumer demand trends. During this transition, the Company expects fiscal year 2025 avocado volume to be lower compared to fiscal year 2024 due to the alternate bearing nature of avocado trees. These operational results do not take into account anticipated additional gains from asset monetization.
Conference Call Information
The Company will host a conference call to discuss its financial results on June 9, 2025, at 1:30 pm Pacific Time (4:30 pm Eastern Time). Investors interested in participating in the live call can dial (877) 407-0789 from the
About Limoneira Company
Limoneira Company, a 132-year-old international agribusiness headquartered in
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Limoneira’s current expectations about future events and can be identified by terms such as “could,” “expect,” “may,” “anticipate,” “outlook,” “plans,” “intend,” “should,” “will,” “likely,” “strive,” and similar expressions referring to future periods.
Limoneira believes the expectations reflected in the forward-looking statements are reasonable but cannot guarantee future results, level of activity, performance or achievements. Actual results may differ materially from those expressed or implied in the forward-looking statements. Therefore, Limoneira cautions you against relying on any of these forward-looking statements. Factors that may cause future outcomes to differ materially from those foreseen in forward-looking statements include, but are not limited to: success in executing the Company’s business plans and strategies, including the merger of the Company's citrus sales and marketing into Sunkist Growers and managing the risks involved in the foregoing; the ability of the merger to improve efficiency and reduce cost; changes in laws, regulations, rules, quotas, tariffs and import laws; weather conditions that affect production, transportation, storage, import and export of fresh produce; increased pressure from crop disease, insects and other pests; disruption of water supplies or changes in water allocations; disruption in the global supply chain; pricing and supply of raw materials and products; market responses to industry volume pressures; pricing and supply of energy; changes in interest and currency exchange rates and the impact of inflation; availability of financing for land development activities; general economic conditions for residential and commercial real estate development; political changes and economic crises; international conflict; acts of terrorism; labor disruptions, strikes or work stoppages; loss of important intellectual property rights; inability to pay debt obligations; ability to maintain compliance with debt covenants under our loan agreement; government restrictions on land use; and market and pricing risks due to concentrated ownership of stock. Other risks and uncertainties include those that are described in Limoneira’s SEC filings that are available on the SEC’s website at http://www.sec.gov. Limoneira undertakes no obligation to subsequently update or revise the forward-looking statements made in this press release, except as required by law.
LIMONEIRA COMPANY CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share and per share data) |
|||||||
|
April 30,
|
|
October 31,
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash |
$ |
2,083 |
|
|
$ |
2,996 |
|
Accounts receivable, net |
|
15,751 |
|
|
|
14,734 |
|
Cultural costs |
|
3,036 |
|
|
|
1,877 |
|
Prepaid expenses and other current assets |
|
4,931 |
|
|
|
3,849 |
|
Receivables/other from related parties |
|
4,033 |
|
|
|
2,390 |
|
Total current assets |
|
29,834 |
|
|
|
25,846 |
|
Property, plant and equipment, net |
|
165,071 |
|
|
|
162,046 |
|
Real estate development |
|
10,270 |
|
|
|
10,201 |
|
Equity in investments |
|
74,073 |
|
|
|
81,546 |
|
Goodwill |
|
1,505 |
|
|
|
1,504 |
|
Intangible assets, net |
|
4,716 |
|
|
|
5,221 |
|
Other assets |
|
11,158 |
|
|
|
12,451 |
|
Total assets |
$ |
296,627 |
|
|
$ |
298,815 |
|
|
|
|
|
||||
Liabilities, Convertible Preferred Stock and Stockholders’ Equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
9,121 |
|
|
$ |
7,260 |
|
Growers and suppliers payable |
|
6,315 |
|
|
|
8,960 |
|
Accrued liabilities |
|
7,947 |
|
|
|
12,483 |
|
Payables to related parties |
|
5,072 |
|
|
|
5,542 |
|
Current portion of long-term debt |
|
72 |
|
|
|
559 |
|
Total current liabilities |
|
28,527 |
|
|
|
34,804 |
|
Long-term liabilities: |
|
|
|
||||
Long-term debt, less current portion |
|
54,929 |
|
|
|
40,031 |
|
Deferred income taxes |
|
17,964 |
|
|
|
20,084 |
|
Other long-term liabilities |
|
1,746 |
|
|
|
1,395 |
|
Total liabilities |
|
103,166 |
|
|
|
96,314 |
|
Commitments and contingencies |
|
— |
|
|
|
— |
|
Series B Convertible Preferred Stock – |
|
1,479 |
|
|
|
1,479 |
|
Series B-2 Convertible Preferred Stock – |
|
9,331 |
|
|
|
9,331 |
|
Stockholders’ equity: |
|
|
|
||||
Series A Junior Participating Preferred Stock – |
|
— |
|
|
|
— |
|
Common Stock – |
|
181 |
|
|
|
180 |
|
Additional paid-in capital |
|
170,399 |
|
|
|
170,243 |
|
Retained earnings |
|
11,434 |
|
|
|
20,826 |
|
Accumulated other comprehensive loss |
|
(6,379 |
) |
|
|
(6,614 |
) |
Treasury stock, at cost, 250,977 shares at April 30, 2025 and October 31, 2024 |
|
(3,493 |
) |
|
|
(3,493 |
) |
Noncontrolling interest |
|
10,509 |
|
|
|
10,549 |
|
Total stockholders' equity |
|
182,651 |
|
|
|
191,691 |
|
Total liabilities, convertible preferred stock and stockholders’ equity |
$ |
296,627 |
|
|
$ |
298,815 |
|
LIMONEIRA COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share data) |
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
Net revenues: |
|
|
|
|
|
|
|
||||||||
Agribusiness |
$ |
33,582 |
|
|
$ |
43,257 |
|
|
$ |
66,434 |
|
|
$ |
81,596 |
|
Other operations |
|
1,537 |
|
|
|
1,349 |
|
|
|
2,990 |
|
|
|
2,741 |
|
Total net revenues |
|
35,119 |
|
|
|
44,606 |
|
|
|
69,424 |
|
|
|
84,337 |
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||||
Agribusiness |
|
31,704 |
|
|
|
40,436 |
|
|
|
65,203 |
|
|
|
79,550 |
|
Other operations |
|
1,009 |
|
|
|
1,429 |
|
|
|
2,180 |
|
|
|
2,611 |
|
Gain on sales of water rights |
|
— |
|
|
|
— |
|
|
|
(1,488 |
) |
|
|
— |
|
Loss (gain) on disposal of assets, net |
|
18 |
|
|
|
48 |
|
|
|
12 |
|
|
|
(117 |
) |
Selling, general and administrative |
|
5,733 |
|
|
|
7,368 |
|
|
|
12,208 |
|
|
|
14,713 |
|
Total costs and expenses |
|
38,464 |
|
|
|
49,281 |
|
|
|
78,115 |
|
|
|
96,757 |
|
Operating loss |
|
(3,345 |
) |
|
|
(4,675 |
) |
|
|
(8,691 |
) |
|
|
(12,420 |
) |
Other income (expense) |
|
|
|
|
|
|
|
||||||||
Interest income |
|
13 |
|
|
|
14 |
|
|
|
28 |
|
|
|
36 |
|
Interest expense, net of patronage dividends |
|
(228 |
) |
|
|
(351 |
) |
|
|
(488 |
) |
|
|
(558 |
) |
Equity in earnings of investments, net |
|
491 |
|
|
|
16,592 |
|
|
|
593 |
|
|
|
16,633 |
|
Other income, net |
|
5 |
|
|
|
197 |
|
|
|
16 |
|
|
|
219 |
|
Total other income |
|
281 |
|
|
|
16,452 |
|
|
|
149 |
|
|
|
16,330 |
|
(Loss) income before income tax (provision) benefit |
|
(3,064 |
) |
|
|
11,777 |
|
|
|
(8,542 |
) |
|
|
3,910 |
|
Income tax (provision) benefit |
|
(301 |
) |
|
|
(5,222 |
) |
|
|
2,106 |
|
|
|
(1,032 |
) |
Net (loss) income |
|
(3,365 |
) |
|
|
6,555 |
|
|
|
(6,436 |
) |
|
|
2,878 |
|
Net loss attributable to noncontrolling interest |
|
4 |
|
|
|
12 |
|
|
|
1 |
|
|
|
104 |
|
Net (loss) income attributable to Limoneira Company |
|
(3,361 |
) |
|
|
6,567 |
|
|
|
(6,435 |
) |
|
|
2,982 |
|
Preferred dividends |
|
(126 |
) |
|
|
(126 |
) |
|
|
(251 |
) |
|
|
(251 |
) |
Net (loss) income applicable to common stock |
$ |
(3,487 |
) |
|
$ |
6,441 |
|
|
$ |
(6,686 |
) |
|
$ |
2,731 |
|
|
|
|
|
|
|
|
|
||||||||
Basic net (loss) income per common share |
$ |
(0.20 |
) |
|
$ |
0.36 |
|
|
$ |
(0.38 |
) |
|
$ |
0.15 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted net (loss) income per common share |
$ |
(0.20 |
) |
|
$ |
0.35 |
|
|
$ |
(0.38 |
) |
|
$ |
0.15 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding-basic |
|
17,825 |
|
|
|
17,707 |
|
|
|
17,808 |
|
|
|
17,677 |
|
Weighted-average common shares outstanding-diluted |
|
17,825 |
|
|
|
18,362 |
|
|
|
17,808 |
|
|
|
17,677 |
|
Non-GAAP Financial Measures
Due to significant depreciable assets associated with the nature of the Company’s operations and interest costs associated with our capital structure, management believes that earnings before interest, income taxes, depreciation and amortization ("EBITDA") and adjusted EBITDA, which excludes stock-based compensation, loss (gain) on disposal of assets, net and severance benefits are important measures to evaluate our results of operations between periods on a more comparable basis. Such measurements are not prepared in accordance with
EBITDA and adjusted EBITDA are summarized and reconciled to net (loss) income attributable to Limoneira Company, which management considers to be the most directly comparable financial measure calculated and presented in accordance with GAAP, as follows (in thousands):
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
Net (loss) income attributable to Limoneira Company |
$ |
(3,361 |
) |
|
$ |
6,567 |
|
|
$ |
(6,435 |
) |
|
$ |
2,982 |
|
Interest income |
|
(13 |
) |
|
|
(14 |
) |
|
|
(28 |
) |
|
|
(36 |
) |
Interest expense, net of patronage dividends |
|
228 |
|
|
|
351 |
|
|
|
488 |
|
|
|
558 |
|
Income tax provision (benefit) |
|
301 |
|
|
|
5,222 |
|
|
|
(2,106 |
) |
|
|
1,032 |
|
Depreciation and amortization |
|
2,109 |
|
|
|
2,100 |
|
|
|
4,125 |
|
|
|
4,158 |
|
EBITDA |
|
(736 |
) |
|
|
14,226 |
|
|
|
(3,956 |
) |
|
|
8,694 |
|
Stock-based compensation |
|
551 |
|
|
|
1,071 |
|
|
|
1,483 |
|
|
|
1,935 |
|
Loss (gain) on disposal of assets, net |
|
18 |
|
|
|
48 |
|
|
|
12 |
|
|
|
(117 |
) |
Severance benefits |
|
— |
|
|
|
1,215 |
|
|
|
— |
|
|
|
1,215 |
|
Adjusted EBITDA |
$ |
(167 |
) |
|
$ |
16,560 |
|
|
$ |
(2,461 |
) |
|
$ |
11,727 |
|
The following is a reconciliation of net (loss) income attributable to Limoneira Company to adjusted net (loss) income for diluted EPS (in thousands, except per share data):
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|
|
2025 |
|
|
|
2024 |
|
Net (loss) income attributable to Limoneira Company |
$ |
(3,361 |
) |
|
$ |
6,567 |
|
|
$ |
(6,435 |
) |
|
$ |
2,982 |
|
Effect of preferred stock and unvested, restricted stock |
|
(142 |
) |
|
|
(127 |
) |
|
|
(287 |
) |
|
|
(335 |
) |
Stock-based compensation |
|
551 |
|
|
|
1,071 |
|
|
|
1,483 |
|
|
|
1,935 |
|
Loss (gain) on disposal of assets, net |
|
18 |
|
|
|
48 |
|
|
|
12 |
|
|
|
(117 |
) |
Severance benefits |
|
— |
|
|
|
1,215 |
|
|
|
— |
|
|
|
1,215 |
|
Tax effect of adjustments at federal and state rates |
|
(156 |
) |
|
|
(640 |
) |
|
|
(411 |
) |
|
|
(832 |
) |
Adjusted net (loss) income for diluted EPS |
$ |
(3,090 |
) |
|
$ |
8,134 |
|
|
$ |
(5,638 |
) |
|
$ |
4,848 |
|
|
|
|
|
|
|
|
|
||||||||
Diluted net (loss) income per common share |
$ |
(0.20 |
) |
|
$ |
0.35 |
|
|
$ |
(0.38 |
) |
|
$ |
0.15 |
|
Adjusted diluted net (loss) income per common share |
$ |
(0.17 |
) |
|
$ |
0.44 |
|
|
$ |
(0.32 |
) |
|
$ |
0.27 |
|
|
|
|
|
|
|
|
|
||||||||
Weighted-average common shares outstanding - diluted |
|
17,825 |
|
|
|
18,362 |
|
|
|
17,808 |
|
|
|
17,677 |
|
Adjusted weighted-average common shares outstanding - diluted |
|
17,825 |
|
|
|
18,362 |
|
|
|
17,808 |
|
|
|
17,677 |
|
Supplemental Information
(in thousands, except acres and average price amounts):
|
Agribusiness Segment Information for the Three Months Ended April 30, 2025 |
|||||||||||||||||
|
Fresh Lemons |
Lemon Packing |
Eliminations |
Avocados |
Other Agribusiness |
Total Agribusiness |
||||||||||||
Revenues from external customers |
$ |
22,652 |
|
$ |
4,652 |
|
$ |
— |
|
$ |
2,780 |
|
$ |
3,498 |
|
$ |
33,582 |
|
Intersegment revenues |
|
— |
|
9,196 |
|
(9,196 |
) |
|
— |
|
— |
|
— |
|||||
Total net revenues |
|
22,652 |
|
|
13,848 |
|
|
(9,196 |
) |
|
2,780 |
|
|
3,498 |
|
|
33,582 |
|
Costs and expenses |
|
22,279 |
|
|
12,126 |
|
|
(9,196 |
) |
|
1,623 |
|
|
3,006 |
|
|
29,838 |
|
Depreciation and amortization |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,866 |
|
Operating income |
$ |
373 |
|
$ |
1,722 |
|
$ |
— |
|
$ |
1,157 |
|
$ |
492 |
|
$ |
1,878 |
|
|
Agribusiness Segment Information for the Three Months Ended April 30, 2024 |
|||||||||||||||||
|
Fresh Lemons |
Lemon Packing |
Eliminations |
Avocados |
Other Agribusiness |
Total Agribusiness |
||||||||||||
Revenues from external customers |
$ |
30,841 |
|
$ |
4,964 |
|
$ |
— |
|
$ |
2,348 |
|
$ |
5,104 |
|
$ |
43,257 |
|
Intersegment revenues |
|
— |
|
10,914 |
|
(10,914 |
) |
|
— |
|
— |
|
— |
|||||
Total net revenues |
|
30,841 |
|
|
15,878 |
|
|
(10,914 |
) |
|
2,348 |
|
|
5,104 |
|
|
43,257 |
|
Costs and expenses |
|
28,869 |
|
|
13,588 |
|
|
(10,914 |
) |
|
1,425 |
|
|
5,680 |
|
|
38,648 |
|
Depreciation and amortization |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
1,788 |
|
Operating income (loss) |
$ |
1,972 |
|
$ |
2,290 |
|
$ |
— |
|
$ |
923 |
|
$ |
(576 |
) |
$ |
2,821 |
|
Lemons |
Q2 2025 |
Q2 2024 |
|
Lemon Packing |
Q2 2025 |
Q2 2024 |
||||||||
|
|
|
|
Cartons packed and sold |
|
1,357 |
|
1,446 |
||||||
Acres harvested |
|
1,600 |
|
1,900 |
|
Revenue |
$ |
13,848 |
|
$ |
15,878 |
|
||
Limoneira cartons sold |
|
108 |
|
|
347 |
|
|
Direct costs |
$ |
12,126 |
|
$ |
13,588 |
|
Third-party grower cartons sold |
|
1,249 |
|
|
1,099 |
|
|
Operating income |
$ |
1,722 |
|
$ |
2,290 |
|
Average price per carton |
$ |
14.52 |
|
$ |
17.85 |
|
|
|
|
|
||||
|
|
|
|
Avocados |
Q2 2025 |
Q2 2024 |
||||||||
|
|
|
|
Pounds sold |
|
1,232 |
|
|
1,595 |
|
||||
Lemon revenue |
$ |
1,677 |
|
$ |
1,907 |
|
|
Average price per pound |
$ |
2.26 |
|
$ |
1.47 |
|
40-pound carton equivalents |
|
220 |
|
|
189 |
|
|
|
|
|
||||
|
|
|
|
Other Agribusiness |
Q2 2025 |
Q2 2024 |
||||||||
Other: |
|
|
|
Orange cartons sold |
|
92 |
|
|
66 |
|
||||
Lemon packing |
$ |
4,652 |
|
$ |
4,964 |
|
|
Average price per carton |
$ |
17.07 |
|
$ |
17.58 |
|
Lemon by-product sales |
$ |
573 |
|
$ |
1,209 |
|
|
Specialty citrus cartons sold |
|
22 |
|
|
29 |
|
Brokered lemons and other lemon sales |
$ |
704 |
|
$ |
1,901 |
|
|
Average price per carton |
$ |
30.77 |
|
$ |
29.24 |
|
|
|
|
|
Farm management |
$ |
339 |
|
$ |
2,046 |
|
||||
Agribusiness costs and expenses |
Q2 2025 |
Q2 2024 |
|
Other |
$ |
914 |
|
$ |
1,059 |
|
||||
Packing costs |
$ |
12,126 |
|
$ |
13,588 |
|
|
|
|
|
||||
Harvest costs |
|
1,357 |
|
|
2,878 |
|
|
|
|
|
||||
Growing costs |
|
3,366 |
|
|
5,462 |
|
|
|
|
|
||||
Third-party grower and supplier costs |
|
12,438 |
|
|
15,939 |
|
|
|
|
|
||||
Other costs |
|
551 |
|
|
781 |
|
|
|
|
|
||||
Depreciation and amortization |
|
1,866 |
|
|
1,788 |
|
|
|
|
|
||||
Agribusiness costs and expenses |
$ |
31,704 |
|
$ |
40,436 |
|
|
|
|
|
||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20250609301041/en/
Investors
John Mills
Managing Partner
ICR 646-277-1254
Source: Limoneira Company
