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Limoneira Company 2020 financial results show record lemon volume

January 11, 2021 SANTA PAULA, Calif.–(BUSINESS WIRE)–Limoneira Company BB #:168478, a diversified citrus growing, packing, selling and marketing company with related agribusiness activities and real estate development operations, today reported financial results for the fourth quarter and full fiscal year ended October 31, 2020.

Management Comments

Harold Edwards, President and Chief Executive Officer of the Company, stated, “We achieved record lemon volume in fiscal 2020 and our real estate development project, Harvest at Limoneira, exceeded our expectations. Domestic lemon volume was up due to our expanded focus on grocery retail as consumers continue to focus on at-home dining instead of foodservice venues. During our seasonally soft fiscal fourth quarter of 2020, pricing was lower than expected during the back half of the quarter primarily related to reduced exports to Asia due to the COVID-19 pandemic. We continue to be a leader in foodservice and exports and are well positioned once dining-out improves from COVID-19 vaccine distribution.”

Mr. Edwards continued, “In real estate development, we have now closed 354 lots since inception, including 144 new lot closings in fiscal 2020 and Lennar, one of our primary builders, recently announced they expect additional lot closings of 76 residential units by the end of June 2021. Based on these stronger than expected homebuilding results throughout fiscal 2020, we now have annual visibility on the expected $80 million of cash distributions from Harvest at Limoneira during the next six years beginning in fiscal 2022. The expected cash distributions do not include the potential upside from increased density in housing at Harvest at Limoneira as well as the potential opportunity of a medical campus in our East Area 2 development. We expect to be in a position to provide greater transparency on these opportunities this year.”

Fiscal Year 2020 Fourth Quarter Results

For the fourth quarter of fiscal year 2020, total net revenue was $29.8 million, compared to total net revenue of $36.5 million in the fourth quarter of the previous fiscal year. Agribusiness revenue was $28.6 million, compared to $35.3 million in the fourth quarter of last fiscal year. Other operations revenue was similar to the prior fiscal year at $1.1 million in the fourth quarter.

Agribusiness revenue for the fourth quarter of fiscal year 2020 includes $13.3 million in fresh lemon sales, compared to $17.0 million of fresh lemon sales during the same period of fiscal year 2019. The decrease was primarily the result of COVID-19 pandemic related food service closures and COVID-19 pandemic related lower export demand, which resulted in lower average per carton prices in the fourth quarter of fiscal year 2020.

Approximately 787,000 cartons of fresh lemons were sold in aggregate during the fourth quarter of fiscal year 2020 at a $17.00 average price per carton compared to approximately 793,000 cartons sold at a $21.46 average price per carton during the fourth quarter of fiscal year 2019.

The Company recognized $0.5 million of avocado revenue in the fourth quarter of fiscal year 2020, compared to $2.3 million in the same period last fiscal year. Approximately 0.5 million pounds of avocados were sold during the fourth quarter of fiscal year 2020 at a $0.99 average price per pound, compared to no avocados sold during the fourth quarter of fiscal year 2019. The year-over-year decrease in avocado revenue was due to receipt of crop insurance proceeds in the fourth quarter of 2019.

The Company recognized $0.5 million of orange revenue in the fourth quarter of fiscal year 2020, compared to $2.1 million in the same period of fiscal year 2019. The decrease was primarily attributable to lower brokered fruit sales. Specialty citrus and other crop revenues were $2.0 million in the fourth quarter of fiscal year 2020, compared to $2.1 million in the fourth quarter of fiscal year 2019.

Total costs and expenses for the fourth quarter of fiscal year 2020 were $39.3 million compared to $40.1 million in the fourth quarter of last fiscal year. The fourth quarter of fiscal year 2020 experienced a decrease in agribusiness costs and selling, general and administrative expenses partially offset by a decrease in gains from asset disposals.

Operating loss for the fourth quarter of fiscal year 2020 was $9.5 million, compared to operating loss of $3.6 million in the fourth quarter of the previous fiscal year.

Net loss applicable to common stock, after preferred dividends, for the fourth quarter of fiscal year 2020 was $7.6 million, compared to net loss of $3.2 million in the fourth quarter of fiscal year 2019. Net loss per diluted share for the fourth quarter of fiscal year 2020 was $0.43 compared to net loss per diluted share of $0.18 for the same period of fiscal year 2019.

Adjusted EBITDA was a loss of $6.6 million in the fourth quarter of fiscal year 2020, compared to a loss of $2.1 million in the same period of fiscal year 2019. A reconciliation of adjusted EBITDA to net income is provided at the end of this release.

Fiscal Year 2020 Results

For the fiscal year, ended October 31, 2020, revenue was $164.6 million, compared to $171.4 million for the fiscal year ended October 31, 2019. Operating loss for the fiscal year 2020 was $19.0 million, compared to operating loss of $5.5 million for the fiscal year 2019. Net loss applicable to common stock, after preferred dividends, was $16.9 million for the fiscal year 2020, compared to net loss of $6.4 million for the fiscal year 2019. Net loss per diluted share for the fiscal year 2020 was $0.96, compared to a net loss per diluted share of $0.37 for the fiscal year 2019.

Excluding the loss on stock in Calavo, non-cash equity in earnings of Limoneira Lewis Community Builders, LLC (“LLCB”) and loss on asset disposals for the fiscal year 2020, adjusted net loss applicable to common stock was $12.2 million compared to adjusted net loss applicable to common stock of $7.8 million for the fiscal year 2019.

Excluding the loss on stock in Calavo, non-cash equity in earnings of LLCB and loss on asset disposals in fiscal year 2020, adjusted net loss per diluted share was $0.69 compared to adjusted net loss per diluted share of $0.45 for the fiscal year 2019, based on approximately 17.6 million weighted average diluted common shares outstanding for both years.

Adjusted EBITDA for the fiscal year 2020 was a loss of $6.7 million compared to income of $1.9 million in the same period last year.

About Limoneira Company

Limoneira Company, a 127-year-old international agribusiness headquartered in Santa Paula, California, has grown to become one of the premier integrated agribusinesses in the world. Limoneira (lç moñ âra) is a dedicated sustainability company with 15,400 acres of rich agricultural lands, real estate properties, and water rights in California, Arizona, Chile and Argentina. The Company is a leading producer of lemons, avocados, oranges, specialty citrus and other crops that are enjoyed throughout the world. For more about Limoneira Company, visit www.limoneira.com.