- First Quarter Agribusiness Revenue Increased 89% Compared to First
Quarter Last Year -
- Cartons of Fresh Lemons Sold Increased 137% Compared to First
Quarter Last Year -
- Expects Continued Growth in Fiscal Year 2012 Agribusiness Revenue
Resulting from Increase in Fresh Lemon Sales and Larger Avocado
Production -
SANTA PAULA, Calif.--(BUSINESS WIRE)--
Limoneira Company (NASDAQ: LMNR), a leading agribusiness with prime
agricultural land and operations, real estate and water rights in
California, today reported financial results for the first quarter ended
January 31, 2012.
Fiscal Year 2012 First Quarter Results
For the first quarter of fiscal year 2012, revenue was $10.2 million,
compared to revenue of $5.9 million in the first quarter of the previous
fiscal year. Agribusiness revenue increased 89% to $9.2 million,
compared to $4.9 million in the first quarter last year. Rental revenue
was $1.0 million in the first quarter of fiscal year 2012, essentially
flat compared to the first quarter last year. Real estate development
revenue was $44,000, compared to $56,000 in the first quarter last year.
First quarter 2012 agribusiness revenue is primarily comprised of $7.8
million in lemon sales, compared to $3.1 million of lemon sales during
the same period of fiscal year 2011, reflecting a larger number of
cartons of fresh lemons sold as well as higher average price per carton.
The Company also experienced higher sales of lemon by-products compared
to the same period last year. Avocado revenue in the first quarter of
fiscal year 2012 was $124,000 compared to $6,000 in the first quarter
last year. The Company expects that avocado sales will improve on a
year-over-year basis in the coming quarters of fiscal year 2012. The
Company generated $1.3 million of orange, specialty citrus and other
crop revenues in the first quarter of fiscal year 2012 compared to $1.8
million in the same period of fiscal year 2011 due primarily to lower
sales volume and prices of oranges.
Costs and expenses for the first quarter of fiscal year 2012 were $15.0
million, compared to $11.4 million in the first quarter of last fiscal
year. The year-over-year increase in operating expenses reflects
increased agribusiness costs associated with the higher sales for this
segment, partially offset by lower selling, general and administrative
expenses.
Operating loss for the fiscal year 2012 first quarter was $4.7 million,
compared to operating loss of $5.5 million in the first quarter of the
previous fiscal year.
Adjusted EBITDA (defined as net income excluding interest expense,
income taxes, depreciation and amortization, and non-cash impairment
charges on real estate development) in the first quarter of fiscal year
2012 was ($3.9 million), compared to ($4.6 million) in the first quarter
of the previous fiscal year. A reconciliation of Adjusted EBITDA to the
GAAP measure net income is provided at the end of this release.
As a result of a larger amount of capitalized interest and lower average
debt levels during the first quarter of fiscal year 2012, interest
expense was $175,000 compared to $354,000 in the same period of fiscal
year 2011. Additionally, non-cash fair value adjustments on the
Company's interest rate swap resulted in income of $159,000 in the first
quarter of fiscal year 2012 compared to income of $477,000 in the same
period of the prior year.
Net loss applicable to common stock, after preferred dividends, for the
first quarter of fiscal year 2012 was $2.9 million, or ($0.26) per
share. This compares to net loss applicable to common stock, after
preferred dividends, in the first quarter of fiscal year 2011 of $3.4
million, or ($0.30) per share.
Harold Edwards, President and Chief Executive Officer, stated, "Our
financial results reflect the expected soft seasonality of our business
in the first quarter and we are encouraged by our solid start to fiscal
2012 in our agribusiness segment and the direction of our overall
business. Our agribusiness revenue increased 89% in the first quarter,
which was primarily driven by strong lemon sales, reflecting a larger
number of fresh lemon cartons sold and higher prices as well as the
success of our direct lemon sales and marketing strategy. Our avocado
sales also increased on a year-over-year basis, and we expect this trend
to continue in the second and third quarters when avocados experience
peak seasonality. As we previously announced, in January, we entered
into a series of operating leases with the Sheldon Ranches for 1,000
acres of citrus and other crop orchards in Lindsay, California. This
transaction represents approximately a 20% increase in our productive
agriculture acreage and is consistent with our agribusiness growth
strategy. Overall, we are excited about the outlook for our agribusiness
in fiscal 2012 and are confident that we will deliver improved
year-over-year results."
Mr. Edwards continued, "We also remain focused on our real estate
development efforts and are continually evaluating market conditions to
ensure that we capitalize on opportunities to monetize our real estate
portfolio as they may arise. With our recently amended Rabobank credit
agreement, we have additional financial flexibility to make strategic
investments to grow our business and enhance our operations. In
addition, we will continue to manage our operating expenses and reduce
our long-term debt as our cash flow improves in our seasonally stronger
second and third quarters. We are optimistic about our prospects for
fiscal year 2012 and beyond as we remain committed to maximizing our
growth potential and enhancing shareholder value."
Balance Sheet and Liquidity
The Company had working capital of $2.1 million as of January 31, 2012.
Cash used in operating activities in the first quarter of fiscal year
2012 was $5.0 million, compared to $5.8 million in the first quarter of
fiscal year 2011. Seasonality in agriculture operations results in
corresponding quarterly fluctuations in operating cash flows. As
operating cash flows typically improve during the year, the Company
plans to apply such cash flows towards debt reduction and investments in
strategic objectives.
Real Estate Development
During the first quarter of fiscal year 2012, the Company continued to
execute its real estate development strategy by capitalizing development
costs of $709,000 compared to $675,000 in the same period of fiscal year
2011.
First Quarter Fiscal Year 2012 Business Highlights
The Company continues to benefit from the success of its direct lemon
sales and marketing strategy. In the first quarter of fiscal year 2012,
lemon sales were comprised of approximately 70% in domestic sales and
30% in sales to domestic exporters.
Alex Teague, Senior Vice President stated, "Our direct lemon marketing
and sales strategy has now been implemented for over one year, and we
are extremely pleased with its success. In the first quarter, we sold
approximately 240,000 more fresh lemon cartons than the first quarter of
last year, and we are looking forward to continued growth throughout
this year."
On November 14, 2011, the Company amended certain terms of its line of
credit with Rabobank, N.A. The maturity date was extended to June 30,
2018 from June 30, 2013, and the borrowing capacity was increased to
$100 million from $80 million, subject to underlying collateral value.
The interest rate for the amended line of credit will be LIBOR plus
1.80% beginning July 1, 2013 until the maturity date. Currently, the
interest rate on the line of credit is LIBOR plus 1.50%. Additionally,
the Company entered into a forward interest rate swap to manage the
variable interest rate risk associated with the amended Rabobank line of
credit. The forward interest rate swap establishes a fixed interest rate
of 4.30% on $40 million of outstanding line of credit borrowings
beginning July 1, 2013 and through June 30, 2018. Limoneira currently
has an interest rate swap which locks in the interest rate on $42
million of outstanding line of credit borrowings at 5.13% until June 30,
2013. These amendments provide the Company with additional financial
flexibility to make strategic investments in its business and manage
borrowing costs.
In January 2012, the Company entered into a series of operating leases
for approximately 1,000 acres of lemon, orange, specialty citrus and
other crop orchards in Lindsay, California. Each of the leases is for a
ten-year term and provides for four five-year renewal options with an
aggregate base rent of approximately $500,000 per year. The leases also
contain a profit share arrangement with the landowners as additional
rent on each of the properties and a provision for the potential
purchase of the property by Limoneira in the future.
About Limoneira Company
Limoneira Company, a 119-year-old international agribusiness
headquartered in Santa Paula, California, has grown to become one of the
premier integrated agribusinesses in the world. Limoneira (pronounced lē
mon΄âra), is a dedicated sustainability company with approximately 7,850
acres of rich agricultural lands, real estate properties and water
rights in California. 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.
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 "expect,"
"may," "anticipate," "intend," "should be," "will be," "is likely to,"
"strive to," 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 which may cause future
outcomes to differ materially from those foreseen in forward-looking
statements include, but are not limited to: changes in laws,
regulations, rules, quotas, tariffs and import laws; weather conditions
that affect production, transportation, storage, import and export of
fresh product; increased pressure from disease, insects and other pests;
disruption of water supplies or changes in water allocations; 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; availability of financing for land development
activities; 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; inability to engage in certain transactions due to
restrictive covenants in debt instruments; government restrictions on
land use; increased costs from becoming a public company 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, which 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.
Non-GAAP Financial Measures
Due to significant depreciable assets associated with the nature of the
Company's operations and interest costs associated with its capital
structure, management believes that earnings before interest expense,
income taxes, depreciation and amortization ("EBITDA") and Adjusted
EBITDA, which excludes impairments on real estate development assets, is
an important measure to evaluate the Company's results of operations
between periods on a more comparable basis. Such measurements are not
prepared in accordance with U.S. generally accepted accounting
principles ("GAAP"), and should not be construed as an alternative to
reported results determined in accordance with GAAP. The non-GAAP
information provided is unique to the Company and may not be consistent
with methodologies used by other companies. Unaudited EBITDA and
Adjusted EBITDA are summarized and reconciled to net income, which
management considers to be the most directly comparable financial
measure calculated and presented in accordance with GAAP as follows:
|
|
|
|
|
|
|
|
First Quarter Fiscal Years 2012 and 2011
|
|
|
|
|
|
|
|
|
Three months ended January 31,
|
|
|
|
2012
|
|
|
2011
|
|
Net loss
|
|
$
|
(2,809,000
|
)
|
|
|
$
|
(3,327,000
|
)
|
|
Total interest expense (income)
|
|
|
16,000
|
|
|
|
|
(123,000
|
)
|
|
Income taxes
|
|
|
(1,580,000
|
)
|
|
|
|
(1,712,000
|
)
|
|
Depreciation and amortization
|
|
|
520,000
|
|
|
|
|
568,000
|
|
|
EBITDA
|
|
|
(3,853,000
|
)
|
|
|
|
(4,594,000
|
)
|
|
Impairments of real estate development assets
|
|
|
-
|
|
|
|
|
-
|
|
|
Adjusted EBITDA
|
|
$
|
(3,853,000
|
)
|
|
|
$
|
(4,594,000
|
)
|
|
|
|
Limoneira Company
|
|
Consolidated Balance Sheets (unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
January 31,
2012
|
|
|
October 31,
2011
|
|
|
Assets
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash
|
|
$
|
28,000
|
|
|
$
|
21,000
|
|
|
Accounts receivable, net
|
|
|
5,151,000
|
|
|
|
2,410,000
|
|
|
Notes receivable — related parties
|
|
|
49,000
|
|
|
|
36,000
|
|
|
Notes receivable
|
|
|
350,000
|
|
|
|
350,000
|
|
|
Cultural costs
|
|
|
663,000
|
|
|
|
926,000
|
|
|
Prepaid expenses and other current assets
|
|
|
1,961,000
|
|
|
|
1,385,000
|
|
|
Income taxes receivable
|
|
|
2,904,000
|
|
|
|
1,324,000
|
|
|
Total current assets
|
|
|
11,106,000
|
|
|
|
6,452,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant, and equipment, net
|
|
|
49,090,000
|
|
|
|
49,187,000
|
|
|
Real estate development
|
|
|
73,763,000
|
|
|
|
72,623,000
|
|
|
Equity in investments
|
|
|
8,938,000
|
|
|
|
8,896,000
|
|
|
Investment in Calavo Growers, Inc.
|
|
|
18,088,000
|
|
|
|
15,009,000
|
|
|
Notes receivable — related parties
|
|
|
16,000
|
|
|
|
56,000
|
|
|
Notes receivable
|
|
|
2,157,000
|
|
|
|
2,123,000
|
|
|
Other assets
|
|
|
5,145,000
|
|
|
|
4,682,000
|
|
|
Total assets
|
|
$
|
168,303,000
|
|
|
$
|
159,028,000
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and stockholders' equity
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
2,965,000
|
|
|
$
|
2,650,000
|
|
|
Growers payable
|
|
|
2,990,000
|
|
|
|
1,004,000
|
|
|
Accrued liabilities
|
|
|
2,327,000
|
|
|
|
2,399,000
|
|
|
Current portion of long-term debt
|
|
|
742,000
|
|
|
|
736,000
|
|
|
Total current liabilities
|
|
|
9,024,000
|
|
|
|
6,789,000
|
|
|
Long-term liabilities:
|
|
|
|
|
|
|
|
|
|
Long-term debt, less current portion
|
|
|
89,270,000
|
|
|
|
82,135,000
|
|
|
Deferred income taxes
|
|
|
10,816,000
|
|
|
|
10,160,000
|
|
|
Other long-term liabilities
|
|
|
9,245,000
|
|
|
|
7,892,000
|
|
|
Total long-term liabilities
|
|
|
109,331,000
|
|
|
|
100,187,000
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
Stockholders' equity:
|
|
|
|
|
|
|
|
|
|
Series B Convertible Preferred Stock — $100.00 par value (50,000
shares authorized: 30,000 shares issued and outstanding at January
31, 2012 and October 31, 2011) (8.75% coupon rate)
|
|
|
3,000,000
|
|
|
|
3,000,000
|
|
|
Series A Junior Participating Preferred Stock — $.01 par value
(50,000 shares authorized: 0 issued or outstanding at January 31,
2012 and October 31, 2011)
|
|
|
-
|
|
|
|
-
|
|
|
Common Stock — $.01 par value (19,900,000 shares authorized:
11,204,561
and 11,205,241 shares issued and outstanding at January 31, 2012
and October 31, 2011, respectively)
|
|
|
112,000
|
|
|
|
112,000
|
|
|
Additional paid-in capital
|
|
|
34,990,000
|
|
|
|
34,863,000
|
|
|
Retained earnings
|
|
|
11,756,000
|
|
|
|
14,980,000
|
|
|
Accumulated other comprehensive income (loss)
|
|
|
90,000
|
|
|
|
(903,000
|
)
|
|
Total stockholders' equity
|
|
|
49,948,000
|
|
|
|
52,052,000
|
|
|
Total liabilities and stockholders' equity
|
|
$
|
168,303,000
|
|
|
$
|
159,028,000
|
|
|
|
|
Limoneira Company
|
|
Consolidated Statements of Operations (unaudited)
|
|
|
|
|
|
|
|
Three months ended
January 31,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012
|
|
|
|
2011
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Agribusiness
|
|
$
|
9,202,000
|
|
|
$
|
4,875,000
|
|
|
Rental
|
|
|
991,000
|
|
|
|
970,000
|
|
|
Real estate development
|
|
|
44,000
|
|
|
|
56,000
|
|
|
Total revenues
|
|
|
10,237,000
|
|
|
|
5,901,000
|
|
|
Costs and expenses:
|
|
|
|
|
|
|
|
|
|
Agribusiness
|
|
|
11,390,000
|
|
|
|
7,638,000
|
|
|
Rental
|
|
|
568,000
|
|
|
|
560,000
|
|
|
Real estate development
|
|
|
248,000
|
|
|
|
290,000
|
|
|
Selling, general and administrative
|
|
|
2,771,000
|
|
|
|
2,950,000
|
|
|
Total costs and expenses
|
|
|
14,977,000
|
|
|
|
11,438,000
|
|
|
Operating loss
|
|
|
(4,740,000
|
)
|
|
|
(5,537,000
|
)
|
|
Other income (expense):
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(175,000
|
)
|
|
|
(354,000
|
)
|
|
Interest income related to derivative instruments
|
|
|
159,000
|
|
|
|
477,000
|
|
|
Interest income
|
|
|
25,000
|
|
|
|
29,000
|
|
|
Other income, net
|
|
|
345,000
|
|
|
|
337,000
|
|
|
Total other income
|
|
|
354,000
|
|
|
|
489,000
|
|
|
Loss before income tax benefit and
equity in (losses) earnings of investments
|
|
|
(4,386,000
|
)
|
|
|
(5,048,000
|
)
|
|
Income tax benefit
|
|
|
1,580,000
|
|
|
|
1,712,000
|
|
|
Equity in (losses) earnings of investments
|
|
|
(3,000
|
)
|
|
|
9,000
|
|
|
Net loss
|
|
|
(2,809,000
|
)
|
|
|
(3,327,000
|
)
|
|
Preferred dividends
|
|
|
(66,000
|
)
|
|
|
(66,000
|
)
|
|
Net loss applicable to common stock
|
|
$
|
(2,875,000
|
)
|
|
$
|
(3,393,000
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Basic net loss per common share
|
|
$
|
(0.26
|
)
|
|
$
|
(0.30
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net loss per common share
|
|
$
|
(0.26
|
)
|
|
$
|
(0.30
|
)
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per common share
|
|
$
|
0.03
|
|
|
$
|
0.03
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average common shares outstanding-basic
|
|
|
11,205,000
|
|
|
|
11,199,000
|
|
|
Weighted-average common shares outstanding-diluted
|
|
|
11,205,000
|
|
|
|
11,199,000
|
|
Limoneira Company
Investor Contact:
ICR
John Mills
Senior
Managing Director
310-954-1105
Source: Limoneira Company
News Provided by Acquire Media
