Limoneira Company Announces Second Quarter Fiscal Year 2019 Financial Results
-Generates Second Quarter Fiscal Year 2019 Revenue of $42.0 Million-
-Company Continues to Expect Record Lemon Volumes for Fiscal Year 2019-
-Company Realizes $2.3 Million of Equity Earnings in Second Quarter Fiscal Year 2019 from Harvest at Limoneira-
-Generates $4.0 Million of Operating Cash Flow in First Six Months of Fiscal Year 2019-
-Company Updates Fiscal Year 2019 Guidance-
SANTA PAULA, Calif.--(BUSINESS WIRE)--June 10, 2019-- Limoneira Company (the “Company” or “Limoneira”) (Nasdaq: LMNR), a diversified citrus packing, selling and marketing company with related agribusiness activities and real estate development operations, today reported financial results for the second quarter ended April 30, 2019.
Harold Edwards, President and Chief Executive Officer, stated, "We believe we will continue facing pricing headwinds from the overabundance of larger fresh lemons due to previous heavy rains, until the end of July 2019. This unusual larger sized fruit curve currently being harvested is now expected to cycle through over the next 5 to 7 weeks with a normal size curve returning by end of July, which is longer than we previously expected. While the larger sized fruit is selling for approximately $18.00 per carton, which is below our expected annual average carton price for fiscal 2019, current market pricing for the smaller and medium sized fruit is selling for approximately $30.00 per carton, which is above our expected annual average carton price for fiscal 2019.”
Mr. Edwards continued, “We expect to achieve record domestic and international fresh lemon volume in fiscal year 2019, but our operational costs are temporarily higher than previous expectations due to lower fresh lemon utilization and the size of our fruit and timing of new fruit on our trees being ready for picking is hard to predict. Even though fiscal 2019 expected results have been temporarily affected by the weather, we are well positioned for solid growth and improved profitability in the coming years. Based on our organic lemon growth for next year, expected rebound in avocado revenue and all recent acquisitions coming on-line for a full fiscal year, we are very excited about our continued long-term growth opportunities.”
Alex Teague, Senior Vice President, stated, "We recently announced the completion of our strategic joint venture and land acquisition in Argentina. This expands our lemon holdings by 1,200 acres and strengthens our ability as a 365-day, 24/7 global supplier of fresh citrus to our valued customers around the world. In addition, our domestic packinghouse continues to achieve our operational expectations for this year and third-party lemon volume is on plan.”
Fiscal Year 2019 Second Quarter Results
For the second quarter of fiscal year 2019, total net revenue was $42.0 million, compared to total net revenue of $43.1 million in the second quarter of the previous fiscal year. Agribusiness revenue was $40.8 million, compared to $41.9 million in the second quarter of last fiscal year. Rental operations revenue was $1.2 million, compared to $1.3 million in the second quarter of last fiscal year. There were no real estate development revenues in the second quarter of fiscal year 2019 or 2018.
Agribusiness revenue for the second quarter of fiscal year 2019 includes $36.4 million in lemon sales, compared to $33.6 million of lemon sales during the same period of fiscal year 2018, with the increase primarily the result of higher volume of lemon by-products partially offset by lower prices of fresh lemons sold. The lower pricing was due to excessive rains in Southern California during the first and second quarters of fiscal year 2019 creating an overabundance of large fresh lemons, which created a decrease in lemon carton pricing. Approximately 1,300,000 cartons of fresh lemons were sold during the second quarter of fiscal year 2019 at a $20.26 average price per carton, compared to approximately 1,157,000 cartons sold at a $23.42 average price per carton during the second quarter of
The following information was filed by Limoneira Co (LMNR) on Monday, June 10, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.