UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-Q

(Mark One)


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

~~FOR THE QUARTERLY PERIOD ENDED JANUARY~~For The Quarterly Period Ended January 31, ~~2023~~2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
			~~FOR THE TRANSITION PERIOD FROM~~ TO

For The Transition Period From To

Commission File Number: ~~001-34755~~001-34755


LIMONEIRA COMPANY
(Exact name of registrant as specified in its charter)


Delaware			77-0260692
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification ~~No.)~~Number)


1141 Cummings Road,
Santa Paula,, CA			93060
(Address of principal executive ~~offices)~~			~~(Zip~~offices and zip code)

Registrant’s telephone number, including area code: (805) 525-5541

Securities registered pursuant to Section 12(b) of the Act:


Title of ~~Each Class~~each class	Trading ~~Symbol~~symbol	Name of ~~Each Exchange of Which Registered~~each exchange on which registered
Common Stock, ~~$0.01~~ par value $0.01	LMNR	The NASDAQ Stock Market LLC ~~(NASDAQ~~ (NASDAQ Global Select Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ ~~Yes~~No ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ ~~Yes~~No ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting ~~company,”~~company” and “emerging growth company” in Rule 12b-2 of the Exchange ~~Act.:~~ Act:

☐

Large accelerated filer

☒ ☐

Accelerated filer ☒

Non-accelerated filer ☐

~~Emerging growth~~ Smaller reporting
company

☐

~~Non-accelerated filer~~

Emerging growth
company ☐

~~Smaller reporting company~~

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ ~~Yes~~No ☒ No

As of February ~~28, 2023,~~29, 2024, there were ~~17,830,604~~18,004,918 shares outstanding of the registrant’s common stock.

LIMONEIRA COMPANY

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION	4

Item 1.	Financial Statements (Unaudited)	4

Consolidated Balance Sheets – January 31, ~~2023~~2024 and October 31, ~~2022~~2023		4

Consolidated Statements of Operations – three months ended January 31, ~~2023~~2024 and ~~2022~~2023	5

Consolidated Statements of Comprehensive (Loss) Income ~~(Loss)~~ – three months ended January 31, ~~2023~~2024 and ~~2022~~2023		6

Consolidated Statements of Stockholders' Equity and Temporary Equity – three months ended January 31, ~~2023~~2024 and ~~2022~~2023	7

Consolidated Statements of Cash Flows – three months ended January 31, ~~2023~~2024 and ~~2022~~2023	8

Notes to Consolidated Financial Statements	10

Item 2.	~~Management’s~~ Management's Discussion and Analysis of Financial Condition and Results of Operations	2425

Item 3.	Quantitative and Qualitative Disclosures about Market Risk	3637

Item 4.	Controls and Procedures	3637

PART II. OTHER INFORMATION	3738

Item 1.	Legal Proceedings	3738

Item 1A.	Risk Factors	3738

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	3738

Item 3.	Defaults Upon Senior Securities	37

~~Item 4.~~	~~Mine Safety Disclosures~~	37

~~Item 5.~~	~~Other Information~~	37

~~Item 6.~~	~~Exhibits~~	38
Item 4. Mine Safety Disclosures	38
Item 5. Other Information	38
Item 6. Exhibits	39
SIGNATURES	4041

~~CAUTIONARY NOTE ON~~ FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q (this “Quarterly Report”) contains both historical and forward-looking statements. Forward-looking statements in this Quarterly Report ~~on Form 10-Q~~ are subject to a number of risks and uncertainties, some of which are beyond the Company’s control. The potential risks and uncertainties that could cause our actual financial condition, results of operations and future performance to differ materially from those expressed or implied in this ~~quarterly report~~Quarterly Report include:

•success in executing the Company's business plans and strategies and managing the risks involved in the foregoing;

•~~negative impacts related to the COVID-19 pandemic and our Company's responses to the pandemic;~~

•changes in laws, regulations, rules, quotas, tariffs and import laws;

•adverse weather conditions, natural disasters and other adverse natural conditions, including freezes, rains, fires, winds and droughts that affect the production, transportation, storage, import and export of fresh produce;

•market responses to industry volume pressures;

•increased pressure from disease, insects and other pests;

•disruption of water supplies or changes in water allocations;

•disruption in the global supply chain;

•negative impacts related to the COVID-19 pandemic and our Company's responses to the pandemic;

•product and raw materials supplies and pricing;

•energy supply and pricing;

•changes in interest rates and the impact of inflation;

•availability of financing for 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, shortages or work stoppages;

•the impact of foreign exchange rate movements;

•ability to maintain compliance with covenants under our loan agreements;

•loss of important intellectual property rights; and

•other factors disclosed in our public filings with the Securities and Exchange Commission (the ~~"SEC"~~“SEC”).

These forward-looking statements involve risks and uncertainties that we have identified as having the potential to cause actual results to differ materially from those contemplated herein. We have described in Part I, Item 1A Risk Factors in our Annual Report on Form 10-K for the fiscal year ended October 31, ~~2022~~2023 additional factors that could cause our actual results to differ from our projections or estimates.

The Company’s actual results, performance, prospects or opportunities could differ materially from those expressed in or implied by the forward-looking statements. Additional risks of which the Company is not currently aware or which the Company currently deems immaterial could also cause the Company’s actual results to differ, including those discussed in the section entitled “Risk Factors” included in our Annual Report on Form 10-K for the fiscal year ended October 31, ~~2022.~~2023. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this Quarterly ~~Report on Form 10-Q.~~Report. Except as required by law, we undertake no obligation to update these forward-looking statements, even if our situation changes in the future.

All references to “we,” ~~"us,"~~“us,” “our,” “our Company,” ~~"the Company"~~“the Company” or ~~"Limoneira"~~“Limoneira” in this Quarterly Report ~~on Form 10-Q~~ mean Limoneira Company, a Delaware corporation, and its consolidated subsidiaries.

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

LIMONEIRA COMPANY

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

($ in thousands, except share ~~amounts)~~and per share data)






		January 31, 2023		October 31, 2022		January 31, 2024	October 31, 2023
Assets	Assets					Assets
Current assets:	Current assets:					Current assets:
Cash	Cash	$	12,464	$	857
Accounts receivable, net	Accounts receivable, net	17,703		15,651
Cultural costs	Cultural costs	2,901		8,643
Prepaid expenses and other current assets	Prepaid expenses and other current assets	5,434		8,496
Receivables/other from related parties	Receivables/other from related parties	3,392		3,888

Total current assets	Total current assets	41,894		37,535
Total current assets
Total current assets
Property, plant and equipment, net	Property, plant and equipment, net	171,682		222,628
Real estate development	Real estate development	9,849		9,706
Equity in investments	Equity in investments	73,383		72,855
Goodwill	Goodwill	1,529		1,506
Intangible assets, net	Intangible assets, net	7,424		7,317
Other assets	Other assets	15,367		16,971
Total assets	Total assets	$	321,128	$	368,518
Liabilities and Stockholders' Equity
Liabilities, Convertible Preferred Stock and Stockholders' Equity						Liabilities, Convertible Preferred Stock and Stockholders' Equity
Current liabilities:	Current liabilities:					Current liabilities:
Accounts payable	Accounts payable	$	9,850	$	10,663
Growers and suppliers payable	Growers and suppliers payable	4,240		10,740
Accrued liabilities	Accrued liabilities	11,333		11,060
Payables to related parties	Payables to related parties	5,226		4,860
Income taxes payable		7,619		219

Current portion of long-term debt
Current portion of long-term debt
Current portion of long-term debt	Current portion of long-term debt	448		1,732
Total current liabilities	Total current liabilities	38,716		39,274
Long-term liabilities:	Long-term liabilities:					Long-term liabilities:
Long-term debt, less current portion	Long-term debt, less current portion	40,919		104,076
Deferred income taxes	Deferred income taxes	23,523		23,497
Other long-term liabilities	Other long-term liabilities	7,101		9,807
Total liabilities	Total liabilities	110,259		176,654
Commitments and contingencies	Commitments and contingencies	—		—
Series B Convertible Preferred Stock – $100.00 par value (50,000 shares authorized: 14,790 shares issued and outstanding at January 31, 2023 and October 31, 2022) (8.75% coupon rate)		1,479		1,479
Series B-2 Convertible Preferred Stock – $100.00 par value (10,000 shares authorized: 9,300 shares issued and outstanding at January 31, 2023 and October 31, 2022) (4% dividend rate on liquidation value of $1,000 per share)		9,331		9,331
Stockholders' Equity:
Series A Junior Participating Preferred Stock – $0.01 par value (20,000 shares authorized: zero issued or outstanding at January 31, 2023 and October 31, 2022)		—		—
Common Stock – $0.01 par value (39,000,000 shares authorized: 18,081,581 and 17,935,292 shares issued and 17,830,604 and 17,684,315 shares outstanding at January 31, 2023 and October 31, 2022, respectively)		178		177
Series B Convertible Preferred Stock – $100.00 par value (50,000 shares authorized: 14,790 shares issued and outstanding at January 31, 2024 and October 31, 2023) (8.75% coupon rate)
Series B-2 Convertible Preferred Stock – $100.00 par value (10,000 shares authorized: 9,300 shares issued and outstanding at January 31, 2024 and October 31, 2023) (4% dividend rate on liquidation value of $1,000 per share)
Stockholders' equity:						Stockholders' equity:
Series A Junior Participating Preferred Stock – $0.01 par value (20,000 shares authorized: zero issued or outstanding at January 31, 2024 and October 31, 2023)
Common Stock – $0.01 par value (39,000,000 shares authorized: 18,255,895 and 18,192,009 shares issued and 18,004,918 and 17,941,032 shares outstanding at January 31, 2024 and October 31, 2023, respectively)
Additional paid-in capital	Additional paid-in capital	166,232		165,169
Retained earnings	Retained earnings	29,669		15,500
Accumulated other comprehensive loss	Accumulated other comprehensive loss	(3,961)		(7,908)
Treasury stock, at cost, 250,977 shares at January 31, 2023 and October 31, 2022		(3,493)		(3,493)
Treasury stock, at cost, 250,977 shares at January 31, 2024 and October 31, 2023
Noncontrolling interest	Noncontrolling interest	11,434		11,609
Total stockholders' equity	Total stockholders' equity	200,059		181,054
Total liabilities and stockholders' equity		$	321,128	$	368,518
Total liabilities, convertible preferred stock and stockholders' equity

The accompanying notes are an integral part of these unaudited consolidated financial statements.

LIMONEIRA COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

($ in thousands, except per share ~~amounts)~~data)

Three Months Ended
January 31,

2023

2022

Net revenues:

Agribusiness

36,528

38,083

Agribusiness

Other operations

1,373

1,191

Total net revenues

37,901

39,274

Total net revenues

Costs and expenses:

Agribusiness

41,241

41,244

Agribusiness

Other operations

1,238

1,074

Gain on disposal of assets, net

(39,742)

(85)

Gain on disposal of assets, net

Selling, general and administrative

9,280

6,599

Total costs and expenses

12,017

48,832

Operating income (loss)

25,884

(9,558)

Total costs and expenses

Operating (loss) income

Other (expense) income:

Interest income

Interest (expense), net of patronage dividends

(1,172)

215

Interest income

Interest expense, net of patronage dividends

Equity in earnings of investments, net

253

Equity in earnings of investments, net

Other income (expense), net

Total other expense

(Loss) income before income tax benefit (provision)

Income tax benefit (provision)

Net (loss) income

Net loss attributable to noncontrolling interest

Net (loss) income attributable to Limoneira Company

Preferred dividends

Net (loss) income applicable to common stock

Basic net (loss) income per common share

Other (expense) income, net

(2,612)

Total other (expense) income

(3,523)

302

Basic net (loss) income per common share

Income (loss) before income tax (provision) benefit

22,361

(9,256)

Income tax (provision) benefit

(6,827)

2,650

Net income (loss)

15,534

(6,606)

Net loss attributable to noncontrolling interest

Net income (loss) attributable to Limoneira Company

15,631

(6,518)

Preferred dividends

(125)

Net income (loss) applicable to common stock

15,506

(6,643)

Basic net (loss) income per common share

Basic net income (loss) per common share

0.87

(0.38)

Diluted net (loss) income per common share

Diluted net income (loss) per common share

0.84

(0.38)

Diluted net (loss) income per common share

Weighted-average common shares outstanding-basic

17,573,000

17,448,000

Weighted-average common shares outstanding-diluted

18,378,000

17,448,000

Weighted-average common shares outstanding-diluted

The accompanying notes are an integral part of these unaudited consolidated financial statements.

LIMONEIRA COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME ~~(LOSS)~~ (UNAUDITED)

(Inin thousands)

Three Months Ended
January 31,
2023 2022
Net income (loss) $ 15,534 $ (6,606)
Other comprehensive income, net of tax:
Foreign currency translation adjustments 2,223 55
Minimum pension liability adjustment, net of tax of $(135) and $27 for the three months ended January 31, 2023 and 2022, respectively. (220) 72
Pension settlement, net of tax of $756 and $0 for the three months ended January 31, 2023 and 2022, respectively. 1,944 —
Total other comprehensive income, net of tax 3,947 127
Comprehensive income (loss) 19,481 (6,479)
Comprehensive loss attributable to noncontrolling interest 97 86
Comprehensive income (loss) attributable to Limoneira Company $ 19,578 $ (6,393)



	Three Months Ended January 31,
		2024		2023
Net (loss) income		$	(3,677)	$	15,534
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments		(467)		2,223
Minimum pension liability adjustments, net of tax of $0 and $(135)		—		(220)
Pension settlement cost, net of tax of $0 and $756		—		1,944

Total other comprehensive (loss) income, net of tax		(467)		3,947
Comprehensive (loss) income		(4,144)		19,481
Comprehensive loss attributable to noncontrolling interest		92		97
Comprehensive (loss) income attributable to Limoneira Company		$	(4,052)	$	19,578

The accompanying notes are an integral part of these unaudited consolidated financial statements.

LIMONEIRA COMPANY

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND TEMPORARY EQUITY (UNAUDITED)

($ in ~~thousands)~~thousands, except share and per share data)


	Stockholders' Equity															Temporary Equity
	Common Stock			Additional Paid-In		Retained		Accumulated Other Comprehensive		Treasury		Non- controlling		Total		Series B Preferred		Series B-2 Preferred
	Shares	Amount		Capital		Earnings		Loss		Stock		Interest		Equity		Stock		Stock
Balance at October 31, 2023	17,941,032	$	179	$	168,441	$	19,017	$	(5,666)	$	(3,493)	$	11,209	$	189,687	$	1,479	$	9,331
Dividends Common ($0.075 per share)	—	—		—		(1,350)		—		—		—		(1,350)		—		—
Dividends Series B ($2.19 per share)	—	—		—		(32)		—		—		—		(32)		—		—
Dividends Series B-2 ($10 per share)	—	—		—		(93)		—		—		—		(93)		—		—
Stock compensation	99,983	1		863		—		—		—		—		864		—		—
Exchange of common stock	(36,097)	—		(684)		—		—		—		—		(684)		—		—

Noncontrolling interest adjustment	—	—		—		—		—		—		(60)		(60)		—		—
Net loss	—	—		—		(3,585)		—		—		(92)		(3,677)		—		—
Other comprehensive loss, net of tax	—	—		—		—		(467)		—		—		(467)		—		—
Balance at January 31, 2024	18,004,918	$	180	$	168,620	$	13,957	$	(6,133)	$	(3,493)	$	11,057	$	184,188	$	1,479	$	9,331


	Stockholders' Equity															Temporary Equity
	Common Stock			Additional Paid-In		Retained		Accumulated Other Comprehensive		Treasury		Non- controlling		Total		Series B Preferred		Series B-2 Preferred
	Shares	Amount		Capital		Earnings		(Loss) Income		Stock		Interest		Equity		Stock		Stock
Balance at October 31, 2022	17,684,315	$	177	$	165,169	$	15,500	$	(7,908)	$	(3,493)	$	11,609	$	181,054	$	1,479	$	9,331
Dividends Common ($0.075 per share)	—	—		—		(1,337)		—		—		—		(1,337)		—		—
Dividends Series B ($2.19 per share)	—	—		—		(32)		—		—		—		(32)		—		—
Dividends Series B-2 ($10 per share)	—	—		—		(93)		—		—		—		(93)		—		—
Stock compensation	146,289	1		1,063		—		—		—		—		1,064		—		—


Noncontrolling interest adjustment	—	—		—		—		—		—		(78)		(78)		—		—
Net income	—	—		—		15,631		—		—		(97)		15,534		—		—
Other comprehensive income, net of tax	—	—		—		—		3,947		—		—		3,947		—		—
Balance at January 31, 2023	17,830,604	$	178	$	166,232	$	29,669	$	(3,961)	$	(3,493)	$	11,434	$	200,059	$	1,479	$	9,331

Stockholders' Equity Temporary Equity
Common Stock Additional
Paid-In Retained Accumulated
Other
Comprehensive Treasury Non- controlling Total Series B
Preferred Series B-2
Preferred
Shares Amount Capital Earnings (Loss) Income Stock Interest Equity Stock Stock
Balance at October 31, 2021 17,685,400 $ 179 $ 163,965 $ 21,552 $ (5,733) $ (3,493) $ 11,965 $ 188,435 $ 1,479 $ 9,331
Dividends Common ($0.075 per share) — — — (1,328) — — — (1,328) — —
Dividends Series B ($2.19 per share) — — — (32) — — — (32) — —
Dividends Series B-2 $10 per share) — — — (93) — — — (93) — —
Stock compensation 70,000 1 996 — — — — 997 — —
Exchange of common stock (55,362) — (900) — — — — (900) — —
Net loss — — — (6,518) — — (88) (6,606) — —
Other comprehensive income, net of tax — — — — 127 — 2 129 — —
Balance at January 31, 2022 17,700,038 $ 180 $ 164,061 $ 13,581 $ (5,606) $ (3,493) $ 11,879 $ 180,602 $ 1,479 $ 9,331

The accompanying notes are an integral part of these unaudited consolidated financial statements.

LIMONEIRA COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Inin thousands)

Three Months Ended
January 31,

2023

2022

Operating activities

Net income (loss)

15,534

(6,606)

Adjustments to reconcile net income (loss) to net cash used in operating activities:

Operating activities

Net (loss) income

Adjustments to reconcile net (loss) income to net cash used in operating activities:

Depreciation and amortization

2,447

2,480

Gain on disposal of assets, net

(39,742)

(85)

Gain on disposal of assets, net

Stock compensation expense

1,064

997

Non-cash lease expense

389

152

Non-cash lease expense

Equity in earnings of investments, net

(253)

(51)

Equity in earnings of investments, net

Deferred income taxes

6,827

(2,650)

Other, net

171

213

Other, net

Changes in operating assets and liabilities:

Accounts receivable and receivables/other from related parties

(1,676)

(2,188)

Accounts receivable and receivables/other from related parties

Cultural costs

1,343

2,654

Cultural costs

Prepaid expenses and other current assets

529

(1,676)

Other assets

(10)

Other assets

Accounts payable and growers and suppliers payable

(7,838)

(2,666)

Accrued liabilities and payables to related parties

455

1,347

Accrued liabilities and payables to related parties

Other long-term liabilities

(430)

(112)

Net cash used in operating activities

(21,190)

(8,162)

Net cash used in operating activities

Investing activities

Capital expenditures

(2,151)

(2,080)

Net proceeds from sales of assets

98,888

1,090

Net proceeds from sales of assets

Net proceeds from sale of real estate development assets

2,577

—

Cash distribution from Trapani Fresh

—

Cash distribution from Trapani Fresh

Collection on notes receivable

—

250

Equity investment contributions

(275)

—

Collection on notes receivable

Equity investment contributions and capitalized interest

Investments in mutual water companies and water rights

(11)

—

Net cash provided by (used in) investing activities

99,110

(740)

Investments in mutual water companies and water rights

Net cash (used in) provided by investing activities

Financing activities

Borrowings of long-term debt

57,940

44,439

Borrowings of long-term debt

Repayments of long-term debt

(122,692)

(32,731)

Principal paid on finance lease and equipment financings

(107)

(69)

Principal paid on finance leases and equipment financings

Dividends paid – common

(1,337)

(1,328)

Dividends paid – preferred

(125)

Dividends paid – preferred

Exchange of common stock

—

(900)

Net cash (used in) provided by financing activities

(66,321)

9,286

Net cash provided by (used in) financing activities

Effect of exchange rate changes on cash

(7)

Net increase in cash

11,607

377

Effect of exchange rate changes on cash

Net (decrease) increase in cash

Cash at beginning of period

857

439

Cash at end of period

12,464

816

Cash at end of period

LIMONEIRA COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (CONTINUED)

(Inin thousands)

Three Months Ended
January 31,

2023

2022

Supplemental disclosures of cash flow information

Cash paid during the period for interest (net of amounts capitalized)

1,006

618

Cash paid during the period for interest (net of amounts capitalized)

Cash paid during the period for income taxes

Non-cash investing and financing activities:

Capital expenditures accrued but not paid at period-end

818

Accrued contribution obligation of investment in water company

—

450

Accrued contribution obligation of investment in water company

The accompanying notes are an integral part of these unaudited consolidated financial statements.

LIMONEIRA COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. Organization and Basis of Presentation

Business

Limoneira Company (together with its consolidated subsidiaries, the “Company”) engages primarily in growing citrus and avocados, ~~picking and hauling~~harvesting citrus, and packing, marketing and selling citrus. The Company is also engaged in residential rentals and other rental operations and real estate development activities.

The Company markets and sells citrus directly to food service, wholesale and retail customers throughout the United States, Canada, Asia, ~~Europe~~Australia and other international markets. ~~The~~Through fiscal year 2023, the Company iswas a member of Sunkist Growers, Inc. ~~(“Sunkist”)~~, an agricultural marketing cooperative, and ~~sells~~sold a portion of its oranges, specialty citrus and other crops to Sunkist-licensed and other third-party packinghouses.

Basis of Presentation and Preparation

The accompanying unaudited interim consolidated financial statements include the accounts of the Company and the accounts of all the subsidiaries and investments in which the Company holds a controlling interest. Intercompany balances and transactions have been eliminated in consolidation. In the opinion of the Company, the unaudited interim consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these unaudited interim consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain information and footnote disclosures normally included in the annual consolidated financial statements have been condensed or omitted pursuant to the rules and regulations of the SEC. Because the consolidated financial statements do not include all of the information and notes required by GAAP for a complete set of consolidated financial statements, they should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K.

2. Summary of Significant Accounting Policies

~~Comprehensive Income (Loss)~~

Comprehensive (Loss) Income

Comprehensive (loss) income ~~(loss)~~ represents all changes in a company’s net assets, except changes resulting from transactions with stockholders. Other comprehensive income or loss includes foreign currency translation items and defined benefit pension items. Accumulated other comprehensive loss is reported as a component of the Company's stockholders' equity.

The following table summarizes other comprehensive (loss) income by component (in thousands):


		Three Months Ended January 31,
		2023						2022
		Pre-tax Amount		Tax Benefit (Expense)		Net Amount		Pre-tax Amount		Tax Expense		Net Amount
	Three Months Ended January 31,																		Three Months Ended January 31,
	2024															2024				2023
	Pre-tax Amount													Pre-tax Amount	Tax Benefit (Expense)		Net Amount	Pre-tax Amount			Tax Benefit (Expense)	Net Amount
Foreign currency translation adjustments	Foreign currency translation adjustments	$	2,223	$	—	$	2,223	$	55	$	—	$	55
Minimum pension liability adjustments:	Minimum pension liability adjustments:
Other comprehensive (loss) income before reclassifications	Other comprehensive (loss) income before reclassifications	(355)		135		(220)		99		(27)		72
Amounts reclassified to earnings included in "Other (expense) income, net"		2,700		(756)		1,944		—		—		—
Other comprehensive income		$	4,568	$	(621)	$	3,947	$	154	$	(27)	$	127
Other comprehensive (loss) income before reclassifications
Other comprehensive (loss) income before reclassifications
Amounts reclassified to earnings included in “Other income (expense), net”
Other comprehensive (loss) income

LIMONEIRA COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

2. Summary of Significant Accounting Policies (continued)

Comprehensive (Loss) Income (continued)

The following table summarizes the changes in accumulated other comprehensive loss by component (in thousands):

Foreign Currency Translation (Loss) Gain Defined Benefit Pension Plan Accumulated Other Comprehensive Loss (Income)
Balance at October 31, 2022 $ (6,184) $ (1,724) $ (7,908)
Other comprehensive income 2,223 1,724 3,947
Balance at January 31, 2023 $ (3,961) $ — $ (3,961)


	Foreign Currency Translation Loss		Defined Benefit Pension Plan		Accumulated Other Comprehensive Loss
Balance at October 31, 2023	$	(5,666)	$	—	$	(5,666)
Other comprehensive loss	(467)		—		(467)
Balance at January 31, 2024	$	(6,133)	$	—	$	(6,133)

Foreign Currency Translation (Loss) Gain Defined Benefit Pension Plan Accumulated Other Comprehensive Loss (Income)
Balance at October 31, 2021 $ (3,754) $ (1,979) $ (5,733)
Other comprehensive income 55 72 127
Balance at January 31, 2022 $ (3,699) $ (1,907) $ (5,606)


	Foreign Currency Translation (Loss) Gain		Defined Benefit Pension Plan		Accumulated Other Comprehensive Loss
Balance at October 31, 2022	$	(6,184)	$	(1,724)	$	(7,908)
Other comprehensive income	2,223		1,724		3,947
Balance at January 31, 2023	$	(3,961)	$	—	$	(3,961)

COVID-19 Pandemic

~~There is continued uncertainty around the breadth and duration of the Company's business disruptions related to the COVID-19 pandemic.~~ The decline in demand for the Company's products as a result of the COVID-19 pandemic negatively impacted the Company's sales and profitability beginning in the second quarter of fiscal year ~~2020, has negatively impacted its sales~~2020. The export market for fresh produce continues to experience decreased demand and ~~profitability for~~ the ~~last three years. The~~ COVID-19 pandemic may continue to impact ~~its~~the Company's sales and profitability in future periods. The duration of these trends and the magnitude of such impacts are uncertain and therefore cannot be estimated at this time, as they are influenced by a number of factors, many of which are outside management’s control.

Recent Accounting Pronouncements

Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures

ASU 2023-07 is intended to improve reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses, the chief operating decision maker (“CODM”), and how the CODM uses the reported measure(s) of segment profit or loss. This amendment also requires that a public entity provide all annual disclosures about a reportable segment’s profit or loss and assets currently required by FASB Accounting Standards Codification Topic 280, Segment Reporting, in interim periods.

The ~~full~~ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. A public entity should apply the amendments retrospectively to all prior periods presented in the financial statements. The Company is currently evaluating the impact of this guidance on its consolidated financial statements.

ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures

ASU 2023-09 requires disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid. The ASU is effective for public business entities with annual periods beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the ~~COVID-19 pandemic~~impact of this guidance on ~~the Company's results of operations,~~its consolidated financial ~~condition, and liquidity, including its ability to comply with debt covenants, for fiscal year 2023 and beyond, is driven by estimates that contain uncertainties.~~statements.

Concentrations ~~and Geographic Information~~

Concentrations of credit risk with respect to revenues and accounts receivable are limited due to a large, diverse customer base. One individual customer represented 13% of revenue for the three months ended January 31, ~~2023. Two~~2024. Three individual customers represented ~~15%~~19%, 16% and ~~12% of revenue, respectively, for the three months ended January 31, 2022. One individual customer represented~~ 11% of accounts receivable, net as of January 31, ~~2023. No individual customer represented more than 10% of accounts receivable, net as of October 31, 2022.~~2024.

One individual supplier represented ~~13%~~15% of accounts payable as of January 31, ~~2023. No individual supplier represented more than 10%~~2024.

LIMONEIRA COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

2. Summary of ~~accounts payable as of October 31, 2022.~~Significant Accounting Policies (continued)

Concentrations (continued)

Lemons procured from third-party growers were ~~66%~~84% and ~~57%~~66% of the Company's lemon supply for the three months ended January 31, ~~2023~~2024 and ~~2022,~~2023, respectively. One third-party grower was ~~17% and 20%~~19% of the lemon supply for the three months ended January 31, ~~2023 and 2022, respectively.~~2024.

The Company maintains its cash in federally insured financial institutions. The account balances at these institutions periodically exceed Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and, as a result, there is a concentration of risk related to amounts on deposit in excess of FDIC insurance coverage.

During the three months ended January 31, 2023 and 2022, the Company had approximately $252,000 and $208,000, respectively, of total sales in Chile by Fruticola Pan de Azucar S.A. ("PDA") and Agricola San Pablo SpA ("San Pablo") and approximately $74,000 and $147,000, respectively, of total sales in Argentina by Trapani Fresh Consorcio de Cooperacion ("Trapani Fresh").

Aggregate foreign exchange transaction losses realized for our foreign subsidiaries was approximately $58,000 for the three months ended January 31, 2023 and was included in selling, general and administrative expenses in the consolidated statements of operations.

~~LIMONEIRA COMPANY~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)~~

3. Asset ~~Sale~~Sales and Disposals

Northern Properties

In October 2022, the Company entered into a Purchase and Sale Agreement, as amended, (the “Agreement”) with PGIM Real Estate Finance, LLC (“PGIM”) to sell 3,537 acres of land and citrus orchards in Tulare County, California (the “Northern Properties”) for a purchase price of approximately $100,405,000. On January 25, 2023, the Board approved the Agreement creating a binding agreement of the Company to sell the Northern Properties and the transaction closed on January 31, 2023. During the quarter ended April 30, 2023, the purchase price was decreased by $397,000 for reimbursement of certain cultural costs and prepaid expenses, resulting in a final purchase price of $100,008,000. After transaction costs the Company received net proceeds of $98,411,000.

The following is a summary of the transaction (in thousands):


	~~January 31, 2023~~
Net cash proceeds received	$	~~85,891~~85,494
Debt directly repaid through the transaction	12,917
Total net proceeds received	~~98,808~~98,411
Less: net book value of assets sold
Cultural costs	~~4,405~~3,853
Prepaid expenses and other current assets	155
Property, plant and equipment, net	53,144
Intangible assets, net	12
Other assets	1,320
Accrued liabilities	(68)
	~~58,813~~58,416
Gain on disposal of assets	$	39,995

The proceeds were used to pay down all of the Company’s domestic debt except the AgWest Farm Credit $40,000,000 non-revolving line of credit. The Northern Properties component, including an allocation of interest expense related to the debt directly repaid through the transaction, had a pretax loss of $1,667,000 and $2,720,000 for the three months ended January 31, 2023 and 2022, respectively.

On January 31, 2023, the Company entered into a Farm Management Agreement (“FMA”) with an affiliate of PGIM to provide farming, management and operations services related to the Northern Properties. The FMA has an initial term expiring March 31, 2024, and thereafter continuing from year to year unless earlier terminated under the terms of the FMA. Further, on January 31, 2023, the Company entered into a Grower Packing and Marketing Agreement to provide packing, marketing and selling services for lemons harvested on the Northern Properties for a minimum five-year term, subject to certain benchmarking standards.

Yuma Property

In December 2023, the Company sold 12 acres of real property located in Yuma, Arizona for a sales price of $775,000. After transaction and closing costs, the Company recorded a gain on disposal of assets of approximately $187,000 during the quarter ended January 31, 2024.

LIMONEIRA COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

4. Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following (in thousands):




		January 31, 2023		October 31, 2022		January 31, 2024	October 31, 2023
Prepaid supplies and insurance	Prepaid supplies and insurance	$	3,315	$	2,958
Real estate development held for sale		—		2,670
Assets held for sale
Sales tax receivable	Sales tax receivable	752		475
Income tax receivable
Lemon supplier advances	Lemon supplier advances	1,019		1,188
Other	Other	348		1,205
		$	5,434	$	8,496

5. Real Estate Development

Real estate development assets are comprised primarily of land and land development costs for the East Area II property in the amount of ~~$9,849,000~~$9,980,000 and ~~$9,706,000 at~~$9,987,000 as of January 31, ~~2023~~2024 and October 31, ~~2022,~~2023, respectively.

East Area I, Retained Property and East Area II

In fiscal year 2005, the Company began capitalizing the costs of two real estate development projects east of Santa Paula, California, for the development of 550 acres of land into residential units, commercial buildings and civic facilities. In November 2015 (the “Transaction Date”), the Company entered into a joint venture with The Lewis Group of Companies (“Lewis”) for the residential development of its East Area I real estate development project. To consummate the transaction, the Company formed Limoneira Lewis Community Builders, LLC (“LLCB”) as the development entity, contributed its East Area I property to LLCB, and sold a 50% interest to Lewis for $20,000,000.

~~LIMONEIRA COMPANY~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)~~

~~5. Real Estate Development (continued)~~

~~East Area I, Retained Property and East Area II (continued)~~

The Company and LLCB also entered into a Retained Property Development Agreement on the Transaction Date (the ~~"Retained~~“Retained Property ~~Agreement"~~Agreement”). Under the terms of the Retained Property Agreement, LLCB transferred certain contributed East Area I property, which is entitled for commercial development, back to the Company (the ~~"Retained Property"~~“Retained Property”) and arranged for the design and construction of certain improvements to the Retained Property and East Area II, subject to certain reimbursements by the Company. The balance in East Area II includes estimated costs incurred by and reimbursable to LLCB of $3,444,000 atas of January 31, ~~2023~~2024 and October 31, ~~2022,~~2023, which is included in payables to related parties.

In January 2018, LLCB entered into a $45,000,000 unsecured Line of Credit Loan Agreement and Promissory Note (the “Loan”) with Bank of America, N.A. to fund early development activities. Effective as of February 22, 2023, the Loan maturity date was extended to February 22, 2024, and the maximum borrowing amount was reduced to $35,000,000. As of February 1, 2023, the interest rate on the Loan transitioned from the London Interbank Offered Rate ~~("LIBOR"~~(“LIBOR”) to the Bloomberg Short-Term Bank Yield Index rate ~~("BSBY"~~(“BSBY”) plus 2.85% and is payable monthly. Effective as of February 22, 2024, the loan maturity date was extended to August 22, 2024 and the interest rate transitioned from the BSBY to the Secured Overnight Financing Rate ("SOFR") plus 2.85%. The Loan contains certain customary default provisions and LLCB may prepay any amounts outstanding under the Loan without penalty. The Loan had anno outstanding balance ~~of $9,800,000~~ as of January 31, ~~2023.~~2024.

In February 2018, the Company and certain principals from Lewis guaranteed the obligations under the Loan. The guarantors are jointly and severally liable for all Loan obligations in the event of default by LLCB. The guarantee continues in effect until all of the Loan obligations are fully ~~paid.~~paid and the Loan terminates. The $1,080,000 estimated value of the guarantee was recorded in the Company’s consolidated balance sheets and is included in other long-term liabilities with a corresponding value in equity in investments. Additionally, a Reimbursement Agreement was executed between the Lewis guarantors and the Company, which provides for unpaid liabilities of LLCB to be shared pro-rata by the Lewis guarantors and the Company in proportion to their percentage interest in LLCB.

LIMONEIRA COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

5. Real Estate Development (continued)

East Area I, Retained Property and East Area II (continued)

In October 2022, the Company entered into a joint venture with Lewis for the development of the Retained Property. The Company formed LLCB II, LLC ("(“LLCB ~~II"~~II”) as the development entity, contributed the Retained Property to the joint venture and sold a 50% interest to Lewis for $7,975,000. The Company recorded a deferred gain of $465,000 on the transaction, which is included in other long-term liabilities as of January 31, ~~2023~~2024 and October 31, ~~2022.~~2023. The joint venture partners will share in the capital contributions to fund project costs until loan proceeds and/or revenues are sufficient to fund the project. The Company made contributions of $200,000 and $275,000 to LLCB II during the three months ended January 31, ~~2023.~~2024 and 2023, respectively.

Through January 31, ~~2023,~~2024, LLCB has closed on lot sales ~~of initial~~representing 707 residential ~~lots representing 586 residential units.~~units since inception.

Other Real Estate Development Projects

In fiscal year 2020, the Company entered into an agreement to sell its Sevilla property for $2,700,000, which closed in November 2022. After transaction and other costs, the Company received cash proceeds of approximately $2,577,000 and recorded an immaterial loss on disposal of assets during the three months ended January 31, 2023.

6. Equity in Investments

Equity in investments consist of the following (in thousands):

January 31, 2023 October 31, 2022
Limoneira Lewis Community Builders, LLC $ 61,250 $ 61,154
LLCB II, LLC 8,297 8,023
Limco Del Mar, Ltd. 2,176 2,024
Rosales 1,155 1,147
Romney Property Partnership 505 507
$ 73,383 $ 72,855

Net amounts due from Rosales were $430,000 and $270,000 at January 31, 2023 and October 31, 2022, respectively, and are included in receivables/other from related parties and payables to related parties.

~~LIMONEIRA COMPANY~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)~~

~~6. Equity in Investments (continued)~~


	January 31, 2024		October 31, 2023
Limoneira Lewis Community Builders, LLC	$	66,359	$	66,288
LLCB II, LLC	9,066		8,869
Limco Del Mar, Ltd.	1,801		1,832
Rosales	1,329		1,325
Romney Property Partnership	502		502
	$	79,057	$	78,816

Unconsolidated Significant Subsidiary

In accordance with Rule 10-01(b)(1) of Regulation S-X, which applies to interim reports on Form 10-Q, the Company must determine if its equity method investees are considered “significant subsidiaries."” In evaluating its investments, there are two tests utilized to determine if equity method investees are considered significant subsidiaries: the income test and the investment test. Summarized income statement information of an equity method investee is required in an interim report if either of the two tests exceed 20% in the interim periods presented. During the year-to-date interim periods for the three months ended January 31, ~~2023 and 2022,~~2024, this threshold was ~~not~~ met for ~~any of the Company's equity investments.~~LLCB and thus summarized income statement information is presented in this Quarterly Report on Form 10-Q.

The following is unaudited summarized financial information for LLCB (in thousands):


	Three Months Ended January 31,
	2024		2023
Revenues	$	913	$	344
Cost of land sold	800		—
Operating expenses	21		240
Net income	$	92	$	104
Net income attributable to Limoneira Company	$	92	$	104

LIMONEIRA COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

7. Goodwill and Intangible Assets, Net

A summary of the change in the carrying amount of goodwill is as follows (in thousands):


	Goodwill Carrying Amount
Balance at October 31, ~~2022~~2023	$	~~1,506~~1,512

Foreign currency translation adjustment	23 (4)
Balance at January 31, ~~2023~~2024	$	~~1,529~~1,508

Goodwill is tested for impairment on an annual basis or when an event or changes in circumstances indicate that its carrying value may not be recoverable. There have been no impairment charges recorded against goodwill as of January 31, ~~2023.~~2024.

Intangible assets ~~consisted~~consist of the following (in thousands):


		January 31, 2023							October 31, 2022
		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Useful Life in Years	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Useful Life in Years
		January 31, 2024
		January 31, 2024
		January 31, 2024																								October 31, 2023
	Gross Carrying Amount																			Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount				Weighted Average Useful Life in Years		Gross Carrying Amount			Accumulated Amortization				Net Carrying Amount				Weighted Average Useful Life in Years
Trade names and trademarks	Trade names and trademarks	$	2,108	(951)		1,157		8	$	2,108	$	(881)	$	1,227	8	Trade names and trademarks	$	2,108	(1,156)		(1,156)	952	952		8		8		$	2,108	$	$	(1,104)	$		$	1,004		8			8
Customer relationships	Customer relationships	4,037		(1,772)		2,265		9	4,037		(1,660)		2,377		9	Customer relationships	4,037		(2,224)		(2,224)	1,813	1,813		9		9		4,037		(2,111)		(2,111)		1,926			1,926		9			9
Non-competition agreement	Non-competition agreement	437		(91)		346		8	437		(76)		361		8	Non-competition agreement	437		(146)		(146)	291	291		8		8		437		(132)		(132)		305			305		8			8
Acquired water and mineral rights	Acquired water and mineral rights	3,656		—		3,656		Indefinite	3,352		—		3,352		Indefinite	Acquired water and mineral rights	3,363		—		—	3,363	3,363		Indefinite		Indefinite		3,422		—		—		3,422			3,422		Indefinite			Indefinite
		$	10,238	$	(2,814)	$	7,424		$	9,934	$	(2,617)	$	7,317
	$

Amortization expense totaled ~~$197,000~~$179,000 and ~~$181,000~~$197,000 for the three months ended January 31, ~~2023~~2024 and ~~2022,~~2023, respectively.

Estimated future amortization expense of intangible assets as of January 31, ~~2023~~2024 is as follows (in thousands):

2023 (excluding the three months ended January 31, 2023) $ 532
2024 711
2025 711
2026 711
2027 427
Thereafter 676
$ 3,768


2024 (remaining nine months)	$	532
2025	711
2026	711
2027	427
2028	427
Thereafter	248
	$	3,056

~~LIMONEIRA COMPANY~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)~~

8. Other Assets

Investments in Mutual Water Companies

The Company’s investments in various not-for-profit mutual water companies provide it with the right to receive a proportionate share of water from each of the not-for-profit mutual water companies that have been invested in and do not constitute voting shares and/or rights. In January 2023, the Company sold an investment in a mutual water company with a net book value of $1,320,000 as part of the Northern Properties sale described in Note ~~3. As~~3 - Asset Sales and Disposals. Amounts included in other assets in the consolidated balance sheets as of January 31, ~~2023~~2024 and October 31, ~~2022, $5,191,000~~2023 were $6,168,000 and ~~$6,500,000, respectively, were included in other assets.~~$5,703,000, respectively.

LIMONEIRA COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

9. Accrued Liabilities

Accrued liabilities consist of the following (in thousands):


		January 31, 2023		October 31, 2022
		January 31, 2024
		January 31, 2024
		January 31, 2024				October 31, 2023
Compensation	Compensation	$	3,609	$	3,572
Property taxes	Property taxes	361		664

Operating expenses	Operating expenses	3,512		2,341
Operating expenses
Operating expenses
Leases	Leases	2,072		2,026
Other	Other	1,779		2,457

		$	11,333	$	11,060
		$
		$
		$

10. Long-Term Debt

Long-term debt is comprised of the following (in thousands):

January 31, 2023 October 31, 2022
AgWest Farm Credit revolving and non-revolving lines of credit: the interest rate of the revolving line of credit is variable based on the one-month Secured Overnight Financing Rate ("SOFR"), which was 4.33% at January 31, 2023, plus 1.85%. The interest rate for the $40.0 million outstanding balance of the non-revolving line of credit is fixed at 3.57% through July 1, 2025 and variable thereafter. Interest is payable monthly and the principal is due in full on July 1, 2026. $ 40,000 $ 88,521
AgWest Farm Credit term loan: The interest rate was fixed at 3.24%. The loan was repaid in January 2023. — 919
AgWest Farm Credit term loan: The interest rate was fixed at 3.24%. The loan was repaid in January 2023. — 7,562
AgWest Farm Credit term loan: The interest rate was fixed at 2.77% until July 1, 2025, becoming variable for the remainder of the loan. The loan was repaid in January 2023. — 5,555
AgWest Farm Credit term loan: The interest rate was fixed at 3.19%. The loan was repaid in January 2023. — 2,003
Banco de Chile term loan: The interest rate is fixed at 6.48%. The loan is payable in annual installments through January 2025. 656 675
Banco de Chile COVID-19 loans: The interest rates are fixed at 3.48%. The loans are payable in monthly installments through September 2024. 237 233
Banco de Chile COVID-19 loans: The interest rates are fixed at 3.48% and 4.26%. The loans are payable in monthly installments through September 2026. 474 434
Subtotal 41,367 105,902
Less deferred financing costs, net of accumulated amortization — 94
Total long-term debt, net 41,367 105,808
Less current portion 448 1,732
Long-term debt, less current portion $ 40,919 $ 104,076

~~LIMONEIRA COMPANY~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)~~

~~10. Long-Term Debt (continued)~~



	January 31, 2024		October 31, 2023
AgWest Farm Credit revolving and non-revolving lines of credit: the interest rate of the revolving line of credit is variable based on the one-month SOFR, which was 5.35% at January 31, 2024, plus 1.78%. The interest rate for the $40.0 million outstanding balance of the non-revolving line of credit is fixed at 3.57% through July 1, 2025 and variable thereafter. Interest is payable monthly and the principal is due in full on July 1, 2026.	$	51,288	$	40,000





Banco de Chile term loan: The interest rate is fixed at 6.48%. The loan is payable in annual installments through January 2025.	447		583
Banco de Chile COVID-19 loans: The interest rates are fixed at 3.48%. The loans are payable in monthly installments through September 2024.	77		112
Banco de Chile COVID-19 loans: The interest rates are fixed at 3.48% and 4.26%. The loans are payable in monthly installments through September 2026.	269		314


Total long-term debt	52,081		41,009
Less current portion	668		381
Long-term debt, less current portion	$	51,413	$	40,628

The Company entered into a Master Loan Agreement (the “MLA”) with AgWest Farm Credit, formerly known as Farm Credit West, (the ~~"Lender"~~“Lender”) dated June 1, 2021, together with a revolving credit facility supplement (the “Revolving Credit Supplement”), a non-revolving credit facility supplement (the “Non-Revolving Credit Supplement,” and together with the Revolving Credit Supplement, the “Supplements”) and an agreement to convert to a fixed interest rate for a period of time as described in the table above ("(“Fixed Interest Rate ~~Agreement"~~Agreement”). The MLA governs the terms of the Supplements. ~~The MLA amends and restates the previous Master Loan Agreement between the Company and the Lender, dated June 19, 2017 and extends the principal repayment to July 1, 2026.~~

In March 2020, the Company entered into a revolving equity line of credit promissory note and loan agreement with the Lender for a $15,000,000 Revolving Equity Line of Credit (the ~~"RELOC"~~“RELOC”) secured by a first lien on the Windfall Investors, LLC property. The RELOC ~~matures in 2043 and features~~featured a 3-year draw period followed by 20 years of fully amortized loan payments. On March 31, 2023, the draw period expired and the RELOC was closed as there was no balance outstanding.

The Supplements ~~and RELOC~~ provide aggregate borrowing capacity of ~~$130,000,000~~$115,000,000 comprised of $75,000,000 under the Revolving Credit Supplement, and $40,000,000 under the Non-Revolving Credit ~~Supplement and $15,000,000 under the RELOC.~~Supplement. As of January 31, ~~2023,~~2024, the Company's outstanding borrowings under the Supplements ~~and RELOC~~ were ~~$40,000,000~~$51,288,000 and it had ~~$90,000,000~~$63,712,000 available to borrow.

In January 2023, the Company used the proceeds from the Northern Properties sale as described in Note 3 - Asset Sales and Disposals to reduce the Company's long-term debt.

LIMONEIRA COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

10. Long-Term Debt (continued)

The interest rate in effect under the Revolving Credit Supplement automatically adjusts on the first day of each month. The interest rate for any amount outstanding under the Revolving Credit Supplement was based on the one-month LIBOR plus or minus an applicable margin. As of January 1, 2023, the rate transitioned from LIBOR to ~~the Secured Overnight Financing Rate ("SOFR").~~SOFR. The applicable margin ranges from ~~1.75%~~1.68% to ~~2.35%~~2.28% depending on the ratio of current assets, plus the remaining available commitment divided by current liabilities. On each ~~one-year~~ anniversary of July 1, the Company has the option to convert the interest rate in use under the Revolving Credit Supplement from the preceding SOFR-based calculation to a variable interest rate. The Company may prepay any amounts outstanding under the Revolving Credit Supplement without penalty.

The interest rate in effect under the Non-Revolving Credit Supplement is a fixed interest rate of 3.57% per year until July 1, 2025 (the “Fixed Rate Term”). Thereafter, the interest rate will convert to a variable interest rate established by the Lender corresponding to the applicable interest rate group. The Company may not prepay any amounts under the outstanding Non-Revolving Credit Supplement during the Fixed Rate Term. Thereafter, the Company may prepay any amounts outstanding under the Non-Revolving Credit Supplement, provided that a fee equal to 0.50% of the amount prepaid and any other cost or loss suffered by the Lender must be paid with any prepayment.

The interest rate in effect under the RELOC is a variable interest rate established by the Lender corresponding to the applicable interest rate group, which was 6.75% as of January 31, 2023. The interest rate may be adjusted automatically under the provisions of the Lender's variable interest rate plan. The Company may prepay any amounts outstanding under the RELOC without penalty.

All indebtedness under the MLA, ~~and RELOC,~~ including any indebtedness under the Supplements, is secured by a first lien on Company-owned stock or participation certificates, Company funds maintained with the Lender, the Lender’s unallocated surplus, ~~and~~ certain of the Company’s agricultural properties, ~~in Ventura counties in California and~~ certain of the Company’s building fixtures and improvements, and investments in mutual water companies associated with the pledged agricultural properties. The MLA includes customary default ~~provisions that provide should~~provisions. Should an event of default occur, the Lender, at its option, may declare all or any portion of the indebtedness under the MLA to be immediately due and payable without demand, notice of nonpayment, protest or prior recourse to collateral, and terminate or suspend the Company’s right to draw or request funds on any loan or line of credit.

The MLA subjects the Company to affirmative and restrictive covenants including, among other customary covenants, financial reporting requirements, requirements to maintain and repair any collateral, restrictions on the sale of assets, restrictions on the use of proceeds, prohibitions on the incurrence of additional debt and restrictions on the purchase or sale of major assets of the Company’s business. The Company is also subject to a financial covenant that requires it to maintain compliance with a specific debt service coverage ratio ~~greater than or equal~~on an annual basis. In September 2023, the Lender modified the covenant to ~~1.25:1 when measured at~~defer measurement as of October 31, 2023 and ~~annually thereafter. The Company was in compliance~~resume a debt service coverage ratio of 1.25:1.0 measured as of October 31, ~~2022.~~2024.

~~LIMONEIRA COMPANY~~

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)~~

~~10. Long-Term Debt (continued)~~

In December 2023, the Lender declared an annual cash patronage dividend of 1.25% of average eligible loan balances and the Company received $300,000 in the second quarter of fiscal year 2024. In February 2023, the Lender declared an annual cash patronage dividend of 1.25% of average eligible loan balances and the Company received $1,413,000 in the second quarter of fiscal year 2023. ~~In December 2021, the Lender declared an annual cash patronage dividend of 1.25% of average eligible loan balances and the Company received $1,582,000 in February 2022.~~

Interest is capitalized on non-bearing orchards, real estate development projects and significant construction in progress. The Company capitalized interest of ~~$347,000~~$56,000 and ~~zero~~$347,000 during the three months ended January 31, ~~2023~~2024 and ~~2022,~~2023, respectively. Capitalized interest is included in property, plant and equipment, ~~and~~ real estate development assets and equity in investments in the Company’s consolidated balance sheets.

11. Other Long-Term Liabilities

Other long-term liabilities consist of the following (in thousands):


		January 31, 2023		October 31, 2022
Minimum pension liability		$	—	$	2,272


						January 31, 2024	October 31, 2023

Loan guarantee
Loan guarantee
Loan guarantee	Loan guarantee	1,080		1,080
Leases	Leases	4,703		5,062
Other	Other	1,318		1,393
		$	7,101	$	9,807

12. Leases

Lessor Arrangements

The Company enters into leasing transactions in which it rents certain of its assets and the Company is the lessor. These lease contracts are typically classified as operating leases with remaining terms ranging from one month to 2019 years with various renewal terms available. All of the residential rentals have month-to-month lease terms.

LIMONEIRA COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

12. Leases (continued)

Lessor Arrangements (continued)

The ~~Company’s~~Company's rental operations revenue consists of the following (in thousands):


		Three Months Ended January 31,
			2023		2022
			Three Months Ended January 31,
			Three Months Ended January 31,
			Three Months Ended January 31,
			2024
			2024
			2024
Operating lease revenue
Operating lease revenue
Operating lease revenue	Operating lease revenue		$	1,291	$	1,118
Variable lease revenue	Variable lease revenue		82		73
Variable lease revenue
Variable lease revenue
Total lease revenue	Total lease revenue		$	1,373	$	1,191
Total lease revenue
Total lease revenue

Lessee Arrangements

The Company enters into leasing transactions in which the Company is the lessee. These lease contracts are classified as either operating or finance leases. The Company’s lease contracts are generally for agricultural land and packinghouse facilities and equipment with remaining lease terms ranging from one to 15four years, with various term extensions available. ~~The Company’s lease agreements do not contain any residual value guarantees or material restrictive covenants.~~ Leases with an initial term of 12 months or less are not recorded on the balance sheet and the Company recognizes lease expense for these leases on a straight-line basis over the lease term. ~~All lease~~Lease costs are primarily included in agribusiness costs and expenses in the Company's consolidated statements of ~~operations~~operations.

~~Operating lease~~Lease costs ~~were $491,000 and $123,000 for~~consist of the three months ended January 31, 2023 and 2022, respectively. Finance lease costs were immaterial for the three months ended January 31, 2023 and 2022. Variable and short term lease costs were $145,000 and $162,000, respectively for the three months ended January 31, 2023,and were immaterial for the three months ended January 31, 2022.following (in thousands):

~~LIMONEIRA COMPANY~~


	Three Months Ended January 31,
	2024		2023
Operating lease costs	$	499	$	491
Finance lease costs:
Amortization of lease assets	47		33
Interest on lease liabilities	9		8
Variable lease costs	(18)		145
Short-term lease costs	69		162
Total lease costs	$	606	$	839

~~NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)~~

~~12. Leases (continued)~~

Supplemental balance sheet information related to leases consists of the following (in thousands):

Classification January 31, 2023 October 31, 2022
Assets
Operating lease ROU assets Other assets $ 5,926 $ 6,190
Finance lease assets Other assets 1,058 1,091
$ 6,984 $ 7,281
Liabilities and Stockholders' Equity
Current operating lease liabilities Accrued liabilities and payables to related parties $ 1,939 $ 1,892
Current finance lease liabilities Accrued liabilities 268 268
Non-current operating lease liabilities Other long-term liabilities 4,047 4,347
Non-current finance lease liabilities Other long-term liabilities 656 715
$ 6,910 $ 7,222

~~Supplemental cash flow information related to leases consists of the following (in thousands):~~



	Classification	January 31, 2024		October 31, 2023
Assets
Operating lease ROU assets	Other assets	$	3,399	$	3,484
Finance lease assets	Other assets	1,134		1,182
		$	4,533	$	4,666

Liabilities
Current operating lease liabilities	Accrued liabilities	$	1,943	$	1,831
Current finance lease liabilities	Accrued liabilities	319		319
Non-current operating lease liabilities	Other long-term liabilities	1,500		1,714
Non-current finance lease liabilities	Other long-term liabilities	531		602
		$	4,293	$	4,466

Three Months Ended
January 31,
2023 2022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases $ 478 $ 189
Operating cash outflows from finance leases $ 8 $ 12
Financing cash outflows from finance leases $ 59 $ 69
ROU assets obtained in exchange for new operating lease liabilities $ 99 $ 288
Leased assets obtained in exchange for new finance lease liabilities $ — $ 1,020

LIMONEIRA COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

12. Leases (continued)

Supplemental cash flow information related to leases consists of the following (in thousands):


	Three Months Ended January 31,
	2024		2023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash outflows from operating leases	$	513	$	478
Operating cash outflows from finance leases	$	9	$	8
Financing cash outflows from finance leases	$	71	$	59
ROU assets obtained in exchange for new operating lease liabilities	$	352	$	99

13. Basic and Diluted Net (Loss) Income ~~(Loss)~~ Per Share

Basic net (loss) income ~~(loss)~~ per common share is calculated using the weighted-average number of common shares outstanding during the period without consideration of the dilutive effect of conversion of preferred stock. Diluted net (loss) income ~~(loss)~~ per common share is calculated using the weighted-average number of common shares outstanding during the period plus the dilutive effect of unvested, restricted stock and conversion of preferred stock. The computations for basic and diluted net (loss) income ~~(loss)~~ per common share are as follows (in thousands, except per share ~~amounts)~~data):

Three Months Ended
January 31,
2023 2022
Basic net income (loss) per common share:
Net income (loss) applicable to common stock $ 15,506 $ (6,643)
Effect of unvested, restricted stock (161) (13)
Numerator: Net income (loss) for basic EPS 15,345 (6,656)
Denominator: Weighted average common shares-basic 17,573 17,448
Basic net income (loss) per common share $ 0.87 $ (0.38)
Diluted net income (loss) per common share:
Net income (loss) for basic EPS $ 15,345 $ (6,656)
Effect of dilutive preferred stock 125 —
Numerator: Net income (loss) for diluted EPS 15,470 (6,656)
Weighted average common shares–basic 17,573 17,448
Effect of dilutive preferred stock 805 —
Denominator: Weighted average common shares–diluted 18,378 17,448
Diluted net income (loss) per common share $ 0.84 $ (0.38)


	Three Months Ended January 31,
		2024		2023
Basic net (loss) income per common share:
Net (loss) income applicable to common stock		$	(3,710)	$	15,506
Effect of unvested, restricted stock		(27)		(161)
Numerator: Net (loss) income for basic EPS		(3,737)		15,345
Denominator: Weighted average common shares–basic		17,627		17,573
Basic net (loss) income per common share		$	(0.21)	$	0.87

Diluted net (loss) income per common share:
Net (loss) income for basic EPS		$	(3,737)	$	15,345
Effect of dilutive preferred stock		—		125
Numerator: Net (loss) income for diluted EPS		(3,737)		15,470
Weighted average common shares–basic		17,627		17,573
Effect of dilutive preferred stock		—		805
Denominator: Weighted average common shares–diluted		17,627		18,378
Diluted net (loss) income per common share		$	(0.21)	$	0.84

Diluted net (loss) income ~~(loss)~~ per common share is computed using the more dilutive method of either the two-class method or the treasury stock method. Unvested stock-based compensation awards that contain non-forfeitable rights to dividends as participating shares are included in computing earnings per share. The Company’s unvested, restricted stock awards qualify as participating shares. Diluted net (loss) income per common share was calculated under the two-class method for the three months ended January 31, ~~2023~~2024 and ~~2022.~~2023.

LIMONEIRA COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

14. ~~Related Party~~Related-Party Transactions

The Company has transactions with equity method investments and various related parties summarized in Note 6 - Equity in Investments and in the tables below (in thousands):

January 31, 2023 October 31, 2022
Balance Sheet Balance Sheet
Ref Related Party Receivable/Other from Related Parties Other Assets Payables to Related Parties Other Long-Term Liabilities Receivable/Other from Related Parties Other Assets Payables to Related Parties Other Long-Term Liabilities
2 Mutual water companies $ — $ 11 $ 207 $ — $ — $ 506 $ 133 $ —
5 Cadiz / Fenner / WAM $ — $ 1,268 $ 722 $ 1,178 $ — $ 1,288 $ 446 $ 1,198
8 FGF $ 2,896 $ 2,858 $ 837 $ — $ 2,965 $ 2,652 $ 837 $ —
9 LLCB $ 66 $ — $ 3,444 $ — $ 66 $ — $ 3,444 $ —

Three Months Ended January 31, 2023 Three Months Ended January 31, 2022
Consolidated Statement of Operations Consolidated Statement of Operations
Ref Related Party Net Revenue Agribusiness Net Revenue Other Operations Agribusiness Expense and Other Dividends Paid Net Revenue Agribusiness Net Revenue Other Operations Agribusiness Expense and Other Dividends Paid
1 Employees $ — $ 223 $ — $ — $ — $ 211 $ — $ —
2 Mutual water companies $ — $ — $ 372 $ — $ — $ — $ 139 $ —
3 Cooperative association $ — $ — $ 393 $ — $ — $ — $ 365 $ —
4 Calavo $ — $ — $ — $ — $ — $ 80 $ 2 $ 126
5 Cadiz / Fenner / WAM $ — $ — $ 1,138 $ — $ — $ — $ 717 $ —
7 YMIDD $ 135 $ — $ — $ — $ — $ — $ 14 $ —
8 FGF $ 83 $ 74 $ 10 $ — $ 229 $ — $ 59 $ —
12 Principal owner $ — $ — $ — $ 209 $ — $ — $ — $ —


		January 31, 2024						October 31, 2023
		Balance Sheet						Balance Sheet
Ref	Related-Party	Receivables/Other from Related Parties		Other Assets		Payables to Related Parties			Receivables/Other from Related Parties		Other Assets		Payables to Related Parties
2	Mutual water companies	$	—	$	465	$	652		$	—	$	523	$	48
5	Cadiz / Fenner / WAM	$	—	$	—	$	206		$	—	$	—	$	206
6	YMIDD	$	326	$	—	$	—		$	571	$	—	$	—
7	FGF	$	2,560	$	2,519	$	837		$	2,681	$	2,519	$	837
8	LLCB	$	—	$	—	$	3,444		$	66	$	—	$	3,444
10	Rosales	$	447	$	—	$	—		$	896	$	—	$	270


		Three Months Ended January 31, 2024						Three Months Ended January 31, 2023
		Consolidated Statement of Operations								Consolidated Statement of Operations
Ref	Related-Party	Net Revenue Agribusiness		Net Revenue Other Operations		Agribusiness Expense and Other		Dividends Paid			Net Revenue Agribusiness		Net Revenue Other Operations		Agribusiness Expense and Other		Dividends Paid
1	Employees	$	—	$	221	$	—	$	—		$	—	$	223	$	—	$	—
2	Mutual water companies	$	—	$	—	$	549	$	—		$	—	$	—	$	372	$	—
3	Cooperative association	$	—	$	—	$	489	$	—		$	—	$	—	$	393	$	—
5	Cadiz / Fenner / WAM	$	—	$	—	$	—	$	93		$	—	$	—	$	1,138	$	—

6	YMIDD	$	318	$	—	$	—	$	—		$	135	$	—	$	—	$	—
7	FGF	$	83	$	50	$	—	$	—		$	83	$	74	$	10	$	—

9	Principal Owner	$	—	$	—	$	—	$	224		$	—	$	—	$	—	$	209
10	Rosales	$	1,323	$	—	$	49	$	—		$	—	$	—	$	—	$	—

(1) Employees - The Company rents certain of its residential housing assets to employees on a month-to-month basis and recorded rental income from employees. ~~There were no material rental payments due from employees at January 31, 2023 or October 31, 2022.~~

(2) Mutual water companies - The Company has representation on the boards of directors of the mutual water companies in which the Company has investments, as well as other water districts. Refer to Note 8 - Other Assets. The Company recorded capital contributions, purchased water and water delivery services and had water payments due to the mutual water companies and districts.

(3) Cooperative association - The Company has representation on the board of directors of a non-profit cooperative association that provides pest control services for the agricultural industry. The Company purchased services and supplies from and had immaterial payments due to the cooperative association.

~~(4)~~ Calavo - Through January 2022, the Company had representation on the board of directors of Calavo. Calavo owned common stock of the Company and the Company paid dividends on such common stock to Calavo. Additionally, the Company leases office space to Calavo. As of February 2022, Calavo is no longer a related party.

(5) Cadiz / Fenner / WAM - A member of the Company’s board of directors ~~serves~~served as the CEO, President and a member of the board of directors of Cadiz, Inc. through December 31, 2023. As of January 1, 2024, Cadiz, Inc. is no longer a related-party. In 2013, the Company entered a long-term lease agreement (the “Lease”) with Cadiz Real Estate, LLC (“Cadiz”), a wholly owned subsidiary of Cadiz, Inc., and ~~currently leases~~leased 670 acres located in eastern San Bernardino County, California. In 2016, Cadiz assigned this lease to Fenner Valley Farms, LLC (“Fenner”), a subsidiary of Water Asset Management, LLC (“WAM”). As of the date of the lease assignment, the Company no longer had any related-party transactions with Cadiz. An affiliate of WAM is the holder of 9,300 shares of the Company's Series B-2 convertible preferred stock. The annual base rent iswas equal to the sum of $200 per planted acre and 20% of gross revenues from the sale of harvested lemons (less operating expenses), not to exceed $1,200 per acre per year. In 2016, Cadiz assigned this lease to Fenner Valley Farms, LLC (“Fenner”), a subsidiary of Water Asset Management, LLC (“WAM”). An affiliate of WAM is the holder of 9,300 shares of the Company's Series B-2 convertible preferred stock. Upon the adoption of ASC 842, the Company recorded a ~~right-of-use, or~~ ROU asset and corresponding lease ~~liability.~~liability, which were written off in fiscal year 2023 upon cessation of farming operations.

~~(7)~~(6) Yuma Mesa Irrigation and Drainage District (“YMIDD”) - The Company has representation on the board of directors of YMIDD. The Company purchased water from YMIDD and had ~~immaterial~~no amounts payable to them for such purchases. Additionally, the Company received fallowing revenue from ~~YMIDD.~~YMIDD and has a receivable outstanding.

LIMONEIRA COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

14. ~~Related Party~~Related-Party Transactions (continued)

~~(8)~~(7) FGF - The Company advances funds to FGF for fruit purchases, which are recorded as an asset until the sales occur and the remaining proceeds become due to FGF. The Company has a receivable from FGF for lemon sales and the sale of packing supplies and a payable due to FGF for fruit purchases and services. The Company records revenue related to the licensing of intangible assets to FGF. The Company leases the Santa Clara ranch to FGF and records rental revenue related to the leased land.

~~(9)~~(8) LLCB - Refer to Note 5 - Real Estate Development.

~~(12)~~(9) Principal owner - The Company has one principal owner with ownership shares over 10% and paid dividends to such owner.

(10) Rosales - The Company has an equity interest in Rosales as further described in Note 6 - Equity in Investments. The Company recognizes lemon sales to Rosales, procures lemons and oranges from Rosales and has amounts due to and due from Rosales for such sales and consignments.

15. Income Taxes

The effective tax rate for the three months ended January 31, ~~2023~~2024 was higher than the federal statutory tax rate of 21% mainly due to foreign jurisdictions that are taxed at different rates, state taxes, tax impact of ~~stock-based~~executive compensation, ~~and~~ nondeductible tax ~~items.~~items and valuation allowances on certain deferred tax assets of foreign subsidiaries. The Company has no material uncertain tax positions as of January 31, ~~2023.~~2024. The Company recognizes interest expense and penalties related to income tax matters as a component of income tax expense. There was no accrued interest or penalties associated with uncertain tax positions as of January 31, ~~2023.~~2024.

16. Retirement Plans

The Limoneira Company Retirement Plan (the “Plan”) iswas a noncontributory, defined benefit, single employer pension plan, which ~~provides~~provided retirement benefits for all eligible employees. Benefits paid by the Plan ~~are~~were calculated based on years of service, highest five-year average earnings, primary Social Security benefit and retirement age. Effective June 2004, the Company froze the Plan and no additional benefits accrued to participants subsequent to that date. The Plan iswas administered by Principal Bank and Mercer Human Resource Consulting. In fiscal year 2021, the Company terminated the Plan effective December 31, 2021.

During the three months ended January 31, 2023, the Company made funding contributions of ~~$2,550,000~~$2,500,000 to fully fund and settle the plan obligations. Lump sum payments were made to a portion of the active and vested terminated participants and annuities were purchased for all remaining participants from an insurance company. There are no remaining benefit obligations or plan assets and the remaining accumulated other comprehensive loss was fully recognized.

The Plan was funded consistent with the funding requirements of federal law and regulations. ~~There were no funding contributions during the three months ended January 31, 2022.~~ Plan assets were invested in a group trust consisting primarily of pooled funds, mutual funds, cash and cash equivalents.

The components of net periodic pension cost for the Plan ~~for the three months ended January 31, 2023 and 2022~~ were as follows (in thousands):




		Three Months Ended January 31,					Three Months Ended January 31,
			2023		2022			2024	2023
Administrative expenses	Administrative expenses		$	20	$	180
Interest cost	Interest cost		34		130
Expected return on plan assets	Expected return on plan assets		(17)		(127)
Prior service cost	Prior service cost		4		11
Recognized actuarial loss			—		99

Settlement loss recognized
Settlement loss recognized
Settlement loss recognized	Settlement loss recognized		2,700		—
Net periodic benefit cost	Net periodic benefit cost		$	2,741	$	293

LIMONEIRA COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

17. Commitments and Contingencies

The Company is from time to time involved in various lawsuits and legal proceedings that arise in the ordinary course of business. At this time, the Company is not aware of any pending or threatened litigation against it that it expects will have a material adverse effect on its business, financial condition, liquidity or operating results. Legal claims are inherently uncertain, however, and it is possible that the Company’s business, financial condition, liquidity and/or operating results could be adversely affected in the future by legal proceedings.

The Company is party to a lawsuit, initiated on March 27, 2018, against Southern California Edison in Superior Court of the State of California, County of Los Angeles whereby the Company is claiming unspecified damages, attorneys' fees and other costs, as a result of the Thomas Fire in fiscal year 2018. While the outcome of this lawsuit is uncertain, the Company believes its claim for damages is valid.

18. Stock-based Compensation

The Company has a stock-based compensation plan ~~(the"Stock Plan"~~(the “Stock Plan”) that allows for the grant of ~~restricted~~common stock of the Company to members of management, key executives and non-employee directors. The fair value of such awards is based on the fair value of the Company’s common stock on the date of grant and all are classified as equity awards.

Performance Awards

Certain restricted stock grants are made to management each December under the Stock Plan based on the achievement of certain annual financial performance and other criteria achieved during the previous fiscal year (“Performance Awards”). The ~~Performance Awards~~performance grants are based on a percentage of the employee’s base salary divided by the stock price on the grant date once the performance criteria have been met, and generally vest over a two-year period as service is provided. During December ~~2022, 79,972~~2023, 36,127 shares of ~~restricted~~common stock with a per share price of ~~$13.19~~$19.57 were granted to management under the Stock Plan for fiscal year ~~2022~~2023 performance, resulting in total compensation expense of approximately ~~$1,055,000,~~$707,000, with ~~$365,000~~$293,000 recognized in the fiscal year ended October 31, ~~2022~~2023, and the balance towill be recognized over the next two years as the shares vest.

Executive Awards

Certain restricted stock grants are made to key executives under the Stock Plan (“Executive Awards”). ~~Executive Awards~~These grants generally vest over a three-year period as service is provided. During ~~December 2022,~~November 2023, the Company granted ~~55,000~~53,078 shares of ~~restricted~~common stock with a per share price of ~~$13.19~~$14.13 to key executives under the Stock Plan. The related compensation expense of approximately ~~$725,000~~$750,000 will be recognized equally over the next three years as the shares vest.

In fiscal year 2022, the Company entered into Retention Bonus Agreements with key executives (collectively, the “Retention Bonus Agreements”) whereby the executives will be eligible to receive cash and restricted stock grants. During December ~~2022,~~2023, the Company granted ~~11,317~~12,709 shares of common stock with a per share price of ~~$13.19~~$19.57 to key executives related to the Retention Bonus Agreements. The related compensation expense of approximately ~~$149,000~~$249,000 had ~~$122,000~~$115,000 recognized in the fiscal year ended October 31, ~~2022~~2023, and the balance will be recognized over the next year as the shares vest.

In November 2023, the Company entered into Performance Share-Based Award Agreements with key executives whereby the executives may be granted performance shares in the future based on the achievement of certain long-term performance goals. The Company recorded $80,000 of stock compensation expense related to these awards during the three months ended January 31, 2024.

Director Awards

The Company issues shares of ~~restricted~~common stock to non-employee directors under the Stock Plan on an annual basis that generally vest over a one-year period (“Director Awards”). During January 2024, 609 shares of common stock were granted as Director Awards with a per share price of $20.37.

Exchange of Common Stock

During the three months ended January 31, ~~2023~~2024 and ~~2022,~~2023, members of management exchanged ~~zero~~36,097 and ~~55,362~~zero shares of common stock with fair values totaling ~~zero~~$684,000 and ~~$900,000,~~zero, respectively, at the dates of the exchanges, for the payment of payroll taxes associated with the vesting of shares under the Stock Plan.

LIMONEIRA COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

19. Segment Information

The Company operates in four reportable operating segments: fresh lemons, lemon packing, avocados and other agribusiness. The reportable operating segments of the Company are strategic business units with different products and services, distribution processes and customer bases. The fresh lemons segment includes sales, farming and harvest costs and third-party grower and supplier costs relative to fresh lemons. The lemon packing segment includes packing revenues and ~~shipping and handling revenues relative to lemon packing. The lemon packing segment expenses are comprised of~~ lemon packing costs. The lemon packing segment revenues include intersegment revenues between fresh lemons and lemon packing. The intersegment revenues are included gross in the segment note and a separate line item is shown as an elimination. The avocados segment includes sales, farming and harvest costs. The other agribusiness segment primarily includes sales, farm management, farming and harvest costs, ~~and~~ brokered fruit costs of oranges ~~specialty citrus and other crops.~~

~~Revenues related to rental operations are included in “Corporate and Other.” Other agribusiness revenues consisted of oranges of $1,152,000~~ and specialty citrus, other crops, fallowing revenue, shipping revenue and shipping costs. During fiscal year 2024, the Company changed its reporting of other revenue and other ~~crops~~costs and includes these items in the other agribusiness segment instead of ~~$1,247,000 for~~ the ~~three months ended January 31, 2023. Other agribusiness revenues consisted of oranges of $873,000 and specialty citrus and other crops of $876,000 for~~fresh lemons segment. Prior year's information has been restated to conform to the ~~three months ended January 31, 2022.~~current year's presentation.

The Company does not separately allocate depreciation and amortization to its fresh lemons, lemon packing, avocados and other agribusiness segments. No asset information is provided for reportable operating segments, as these specified amounts are not included in the measure of segment profit or loss reviewed by the Company’s chief operating decision maker. The Company measures operating performance, including revenues and operating income, of its operating segments and allocates resources based on its evaluation. The Company does not allocate selling, general and administrative expense, gain or loss on disposal of assets, total other income (expense) and income taxes, or specifically identify them to its operating segments. The ~~Company~~lemon packing segment earns packing revenue for packing lemons grown on its orchards and lemons procured from third-party growers. Intersegment revenues represent packing revenues related to lemons grown on the Company’s orchards.

Segment information for the three months ended January 31, 2024 is as follows (in thousands):


	Fresh Lemons		Lemon Packing		Eliminations		Avocados		Other Agribusiness		Total Agribusiness		Corporate and Other		Total
Revenues from external customers	$	27,384	$	5,592	$	—	$	—	$	5,363	$	38,339	$	1,392	$	39,731
Intersegment revenue	—		6,716		(6,716)		—		—		—		—		—
Total net revenues	27,384		12,308		(6,716)		—		5,363		38,339		1,392		39,731
Costs and expenses	28,841		10,718		(6,716)		—		4,527		37,370		8,048		45,418
Depreciation and amortization	—		—		—		—		—		1,744		314		2,058
Operating (loss) income	$	(1,457)	$	1,590	$	—	$	—	$	836	$	(775)	$	(6,970)	$	(7,745)

Segment information for the three months ended January 31, 2023 is as follows (in thousands):


		Fresh Lemons		Lemon Packing		Eliminations		Avocados		Other Agribusiness		Total Agribusiness		Corporate and Other		Total		Fresh Lemons	Lemon Packing	Eliminations	Avocados	Other Agribusiness	Total Agribusiness	Corporate and Other	Total
Revenues from external customers	Revenues from external customers	$	28,481	$	5,648	$	—	$	—	$	2,399	$	36,528	$	1,373	$	37,901
Intersegment revenue	Intersegment revenue	—		7,363		(7,363)		—		—		—		—		—
Total net revenues	Total net revenues	28,481		13,011		(7,363)		—		2,399		36,528		1,373		37,901
Costs and expenses (gain)		33,300		11,353		(7,363)		—		1,816		39,106		(29,536)		9,570
Costs and expenses
Depreciation and amortization	Depreciation and amortization	—		—		—		—		—		2,135		312		2,447
Operating income (loss)		$	(4,819)	$	1,658	$	—	$	—	$	583	$	(4,713)	$	30,597	$	25,884
Operating (loss) income

~~Segment information for the three months ended January 31, 2022~~

Revenues related to rental operations are included in “Corporate and Other.” The detail of other agribusiness revenues is as follows (in thousands):

Fresh
Lemons Lemon
Packing Eliminations
Avocados Other
Agribusiness Total
Agribusiness Corporate
and Other Total
Revenues from external customers $ 29,600 $ 5,968 $ — $ 766 $ 1,749 $ 38,083 $ 1,191 $ 39,274
Intersegment revenue — 6,589 (6,589) — — — — —
Total net revenues 29,600 12,557 (6,589) 766 1,749 38,083 1,191 39,274
Costs and expenses 32,161 10,556 (6,589) 321 2,610 39,059 7,293 46,352
Depreciation and amortization — — — — — 2,185 295 2,480
Operating (loss) income $ (2,561) $ 2,001 $ — $ 445 $ (861) $ (3,161) $ (6,397) $ (9,558)


	Three Months Ended January 31,
		2024		2023
Oranges		$	1,141	$	1,152
Specialty citrus and other crops		1,086		1,247
Farm management		2,048		—
Other		1,088		1,160
Other agribusiness revenues		$	5,363	$	3,559

LIMONEIRA COMPANY

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)

20. Subsequent Events

The Company evaluated events subsequent to January 31, ~~2023~~2024 through the date of this filing, to assess the need for potential recognition or disclosure in this Quarterly ~~Report on Form 10-Q.~~Report. Based upon this evaluation, except as described in the notes to ~~the interim~~ consolidated financial statements, it was determined that no other subsequent events occurred that require recognition or disclosure in the unaudited consolidated financial statements.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Overview

Limoneira Company, a Delaware corporation, is the successor to several businesses with operations in California since 1893. We are primarily an agribusiness company founded and based in Santa Paula, California, committed to responsibly using and managing our approximately ~~11,800~~11,000 acres of land, water resources and other assets to maximize long-term stockholder value. Our current operations consist of fruit production, sales and marketing, rental operations, real estate and capital investment activities.

We are one of California’s oldest citrus growers. According to Sunkist Growers, Inc. ~~(“Sunkist”)~~, we are one of the largest growers of lemons in the United States and, according to the California Avocado Commission, one of the largest growers of avocados in the United States. In addition to growing lemons and avocados, we grow oranges and other crops. We have agricultural plantings throughout Ventura and San Luis Obispo ~~and San Bernardino~~ Counties in California, Yuma County in Arizona, La Serena, Chile and Jujuy, Argentina, which collectively consist of approximately ~~4,600~~3,400 acres of lemons, ~~900~~1,200 acres of avocados, 100 acres of oranges and ~~300~~400 acres of ~~other crops.~~wine grapes. We also operate our own packinghouses in Santa Paula, California and Yuma, Arizona, where we process, pack and sell lemons that we grow, as well as lemons grown by others. We have a 47% interest in Rosales S.A. (“Rosales”), a citrus packing, marketing and sales business, a 90% interest in Fruticola Pan de Azucar S.A. (“PDA”), a lemon and orange orchard and a 100% interest in Agricola San Pablo, SpA ("(“San ~~Pablo"~~Pablo”), a lemon and orange orchard, all of which are located near La Serena, Chile. We have a 51% interest in a joint venture, Trapani Fresh Consorcio de Cooperacion ("(“Trapani ~~Fresh"~~Fresh”), a lemon orchard in Argentina.

Our water resources include water rights, usage rights and pumping rights to the water in aquifers under, and canals that run through, the land we own. Water for our farming operations is sourced from the existing water resources associated with our land, which includes rights to water in the adjudicated Santa Paula Basin (aquifer) and the un-adjudicated Fillmore and Paso Robles Basins (aquifers). We also use ~~ground water from the Cadiz Valley Basin in California's San Bernardino County and~~ surface water in Arizona from the Colorado River through the Yuma Mesa Irrigation and Drainage District (“YMIDD”). We use ground water provided by wells and surface water for our PDA and San Pablo farming operations in Chile and our Trapani Fresh farming operations in Argentina. We use ground water from the San Joaquin Valley Basin and water from local water and irrigation districts in Tulare County, which is in California’s San Joaquin Valley.

For more than 100 years, we have been making strategic investments in California agriculture and real estate. We currently have an interest in three real estate development projects in California. These projects include multi-family housing, ~~and~~ single-family homes and apartments of approximately ~~900~~800 units in various stages of planning and development.

Business Division Summary

We have three business divisions: agribusiness, rental operations and real estate development. The agribusiness division is comprised of four reportable operating segments: fresh lemons, lemon packing, avocados and other agribusiness, which primarily includes oranges, specialty citrus, other crops and ~~other crops.~~farm management services. The agribusiness division includes our core operations of farming, harvesting, lemon packing and lemon sales operations. The rental operations division includes our residential and commercial rentals, leased land operations and organic recycling. The real estate development division includes our investments in real estate development projects. Financial information and discussion of our four reportable segments are contained in the notes to the accompanying consolidated financial statements of this Quarterly ~~Report on Form 10-Q.~~Report.

Agribusiness Summary

We market and sell citrus directly to our food service, wholesale and retail customers throughout the United States, Canada, Asia, Australia, Europe and certain other international markets. We sell ~~the majority of~~ our avocados ~~oranges~~ and ~~specialty citrus~~oranges to third-party packinghouses. Additionally, we ~~sold our pistachios to a roaster, packager and marketer of nuts, and~~ sell our wine grapes to various wine producers.

Historically, our agribusiness division has been seasonal in nature with quarterly revenue fluctuating depending on the timing and variety of crops being harvested. Cultural costs in our agribusiness division tend to be higher in the first and second quarters and lower in the third and fourth quarters because of the timing of expensing cultural costs in the current year that were inventoried in the prior year. Our harvest costs generally increase in the second quarter and peak in the third quarter, coinciding with the increasing production and revenue.

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Fluctuations in price are a function of global supply and demand with weather conditions, such as unusually low temperatures, typically having the most dramatic effect on the amount of lemons supplied in any individual growing season. We believe we have a competitive advantage by maintaining our own lemon packing operations, even though a significant portion of the costs related to these operations are fixed. As a result, cost per carton is a function of fruit throughput. While we regularly monitor our costs for redundancies and opportunities for cost reductions, we also supplement the number of lemons we pack in our packinghouse with additional lemons procured from other growers. Because the fresh utilization rate for our lemons, or percentage of lemons we harvest and pack that are sold to the fresh market, is directly related to the quality of lemons we pack and, consequently, the price we receive per 40-pound box, we only pack lemons from other growers if we determine their lemons are of good quality.

Our avocado producing business is important to us ~~yet it faces constraints on growth. We~~and we are currently assessing all of our farmland in Ventura County for opportunities to expand our plantings of avocados. While avocado production is cyclical as avocados typically bear fruit on a bi-annual basis, the profitability and cash flow realized from our avocados helps to diversify our fruit production base.

In addition to growing lemons and avocados, we grow oranges and other ~~crops typically utilizing land not suitable for growing high quality lemons.~~crops. We regularly monitor the demand for the fruit we grow in the current marketplace to identify trends.

Rental Operations Summary

Our rental operations include our residential and commercial rentals, leased land operations and organic recycling. Our residential rental units generate ~~reliable~~ cash flows that we use to partially fund the operating costs of our business and provide affordable housing to many of our employees, including our agribusiness employees. ~~This~~We believe that this unique employment benefit helps us maintain a dependable, long-term employee base. In addition, our leased land business provides us with a typically profitable diversification. Revenue from rental operations is generally level throughout the year.

Real Estate Development Summary

We invest in real estate investment projects and recognize that long-term strategies are required for successful real estate development activities. Our goal is to redeploy real estate earnings and cash flow into the expansion of our agribusiness and other income producing real estate. For real estate development projects and joint ventures, it is not unusual for the timing and amounts of revenues and costs, partner contributions and distributions, project loans, other financing assumptions and project cash flows to be impacted by government approvals, project revenue and cost estimates and assumptions, economic conditions, financing sources and product demand as well as other factors. Such factors could affect our results of operations, cash flows and liquidity.

Water and Mineral Rights

Our water resources include water rights, usage rights and pumping rights to the water in aquifers under, and canals that run through, the land we own. We believe we have adequate supplies of water for our agribusiness segments as well as our rental and real estate development activities. Water for our farming operations located in Ventura County, California is sourced from the existing water resources associated with our land, which includes approximately 8,600 acre-feet of adjudicated water rights in the Santa Paula Basin (aquifer) and the un-adjudicated Fillmore Basin ~~(acquifer)~~(aquifer). ~~We use ground water provided by wells that derive water from the Cadiz Valley Basin at the Cadiz Ranch in San Bernardino County, California.~~ Our Windfall Farms property located in San Luis Obispo County, California obtains water from wells that derive water from the Paso Robles Basin (aquifer). Our Associated farming operations in Yuma, Arizona source water from the Colorado River through the YMIDD, where we have access to approximately 11,700 ~~acre feet~~acre-feet of Class 3 Colorado River water rights. We use ground water provided by wells and surface water for our PDA and San Pablo farming operations in La Serena, Chile and our Trapani Fresh farming operations in Argentina.

California experienced above average precipitation during ~~the first five months of~~ the 2022 - 2023 rainfall season after experiencing three years of below average precipitation ~~the past three rainfall seasons.~~and drought conditions. The ~~series of nine storms in December 2022 and January 2023~~above average precipitation helped to alleviate the drought conditions in California. ~~Currently,~~As of January 31, 2024, the state iswas free from ~~extreme drought conditions. According to the U.S. Drought Monitor, San Bernardino County was experiencing severe~~moderate drought conditions and Ventura County was ~~experiencing normal conditions as of February 28, 2023.~~free from any drought conditions. We continue to assess the impact drought conditions may have on our California orchards.

2526

In August 2021, the U.S. Bureau of Reclamation (the “Bureau”) declared a Level 1 ~~Shortage Condition~~shortage condition at Lake Mead in the Lower Colorado River Basin for the first time ever, requiring shortage reductions and water savings contributions for states in the southwest. In ~~January 2022, Arizona experienced water releases from Lake Mead reduced by approximately 18% of the state’s annual apportionment. In~~ August 2022, the ~~U.S.~~ Bureau ~~of Reclamation~~ announced Lake Mead to operate in a Tier 2 shortage, which ~~increases~~further increased water ~~restrictions for states~~restrictions. As a result, in ~~the southwest. In~~ January 2023, Arizona forfeited approximately 21% of the state's yearly allotment of water from Lake Mead. In August 2023, the Bureau announced Lake Mead will operate in a Tier 1 shortage in 2024, which requires Arizona to forfeit approximately 18% of the state's yearly allotment of water from Lake Mead. In response to these water shortages, we entered into a fallowing ~~agreement in~~agreements during fiscal ~~year~~years 2023 and 2022 and ~~are assessing~~continue to assess the impact these ~~additional~~ reductions may have on our Arizona orchards.

Recent Developments

On ~~October 10, 2022,~~December 1, 2023, we ~~entered into~~announced the commencement of a ~~Purchase~~strategic review process to explore potential alternatives aimed at maximizing stockholder value. Potential strategic alternatives could include, but not be limited to, a sale of all or parts of the Company and ~~Sale Agreement, as amended (the “Agreement”), with PGIM Real Estate Finance, LLC (“PGIM”)~~its assets, a merger or other transaction. The Board has not set a timetable for completion of the review and no transaction or other outcome is guaranteed to ~~sell 3,537~~take place. At this time, we cannot predict the impact that such strategic alternatives might have on our business, operations or financial condition.

In December 2023, we sold 12 acres of ~~land and citrus orchards~~real property located in ~~Tulare County, California (the “Northern Properties”)~~Yuma, Arizona for a ~~purchase~~sales price of ~~approximately $100.4~~$0.8 million. ~~On January 25, 2023, the Board of Directors approved the Agreement, binding us to sell the Northern Properties~~After transaction and ~~the transaction closed on January 31, 2023. We received net cash proceeds of approximately $98.8 million and~~closing costs, we recorded a gain on sale of approximately ~~$40.0~~$0.2 million. ~~The proceeds were used primarily to pay down debt.~~

On January 31, 2023, we entered into a Farm Management Agreement (the “FMA”) with an affiliate of PGIM to provide farming, management and operations services related to the Northern Properties. The FMA has an initial term expiring March 31, 2024, and thereafter continuing from year to year unless earlier terminated under the terms of the FMA. Further, on January 31, 2023, we entered into a Grower Packing and Marketing Agreement to provide packing, marketing and selling services for lemons harvested on the Northern Properties for a minimum five-year term, subject to certain benchmarking standards.

During the three months ended January 31, 2023, the Company made funding contributions of $2.6 million to fully fund and settle the plan obligations of the Limoneira Company Retirement Plan. Lump sum payments were made to a portion of the active and vested terminated participants and annuities were purchased for all remaining participants from an insurance company. There are no remaining benefit obligations or plan assets and the remaining accumulated other comprehensive loss was fully recognized.

~~On November 30, 2022, we sold our Sevilla property and received net proceeds of $2.6 million and recorded an immaterial loss in the first quarter of fiscal year 2023.~~

On December ~~20, 2022,~~19, 2023, we declared a cash dividend of $0.075 per common share paid on January ~~13, 2023,~~12, 2024, in the aggregate amount of approximately $1.3 million to stockholders of record as of January ~~3, 2023.~~2, 2024.

COVID-19 Pandemic

The COVID-19 pandemic has had an adverse impact on the industries and markets in which we conduct business. In particular, the United States lemon market saw a significant decline in volume, with lemon demand falling since widespread shelter in place orders were issued in March 2020, resulting in a significant market oversupply. The export market for fresh produce ~~also~~ significantly declined due to the COVID-19 pandemic ~~impacts. As of January 31, 2023, the demand within both markets is recovering but has not yet returned~~impacts and continues to ~~pre-pandemic levels.~~experience decreased demand.

The decline in demand for the Company's products ~~beginning the second quarter of fiscal year 2020, has~~ negatively impacted our sales and profitability for the last ~~three~~four fiscal years. The COVID-19 pandemic may continue to impact our sales and profitability in future periods. The duration of these trends and the magnitude of such impacts are uncertain and therefore cannot be estimated at this time, as they are influenced by a number of factors, many of which are outside management’s control, including, but not limited, to those presented in Item 1A. Risk Factors of our Annual Report on Form 10-K for the year ended October 31, 2022. Notwithstanding the adverse impacts and subject to unforeseen changes that may arise as the COVID-19 pandemic continues, we currently expect improvement in fiscal year 2023 compared to fiscal year 2022.2023.

Given the economic uncertainty as a result of the COVID-19 pandemic over the past ~~three~~four fiscal years, we have taken actions to improve our current liquidity position, including strategically selling certain assets, temporarily postponing capital expenditures and substantially reducing discretionary spending.

There is continued uncertainty around the breadth and duration of our export market business disruptions related to the COVID-19 ~~pandemic, as well as its impact on the U.S. economy and the ongoing business operations of our customers.~~pandemic. The ongoing impact of the COVID-19 pandemic on our results of operations, financial condition, or liquidity for fiscal year ~~2023~~2024 and beyond cannot be estimated at this time. ~~The following discussions are subject to the future effects of the COVID-19 pandemic on our ongoing business operations.~~

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Results of Operations

The following table shows the results of operations (in thousands):

Three Months Ended
January 31,

2023

2022

Net revenues:

Agribusiness

36,528

38,083

Other operations

1,373

1,191

Other operations

Total net revenues

37,901

39,274

Costs and expenses:

Agribusiness

41,241

41,244

Other operations

1,238

1,074

Other operations

Gain on disposal of assets, net

(39,742)

(85)

Selling, general and administrative

9,280

6,599

Total costs and expenses

12,017

48,832

Operating income:

Total costs and expenses

Operating (loss) income:

Agribusiness

(4,713)

(3,161)

Other operations

135

117

Other operations

Gain on disposal of assets, net

39,742

Gain on disposal of assets, net

Selling, general and administrative

(9,280)

(6,599)

Operating income (loss)

25,884

(9,558)

Selling, general and administrative

Operating (loss) income

Other (expense) income:

Interest income

Interest (expense), net of patronage dividends

(1,172)

215

Interest income

Interest expense, net of patronage dividends

Equity in earnings of investments, net

253

Other (expense) income, net

(2,612)

Total other (expense) income

(3,523)

302

Income (loss) before income tax (provision) benefit

22,361

(9,256)

Income tax (provision) benefit

(6,827)

2,650

Net income (loss)

15,534

(6,606)

Equity in earnings of investments, net

Other income (expense), net

Total other expense

(Loss) income before income tax benefit (provision)

Income tax benefit (provision)

Net (loss) income

Net loss attributable to noncontrolling interest

Net income (loss) attributable to Limoneira Company

15,631

(6,518)

Net loss attributable to noncontrolling interest

Net (loss) income attributable to Limoneira Company

Non-GAAP Financial Measures

Due to significant depreciable assets associated with the nature of our 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, ~~named executive officer cash severance,~~ pension settlement cost, gain on disposal of assets, net, and cash bonus related to ~~the~~ sale of assets are important measures to evaluate our results of operations between periods on a more comparable basis. Adjusted EBITDA in previous periods did not exclude stock-based compensation which has now been excluded as management believes this is a better representation of cash generated by operations and is consistent with peer company reporting. Adjusted EBITDA for prior periods has been restated to conform to the current presentation. 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 us and may not be consistent with methodologies used by other companies.

2728

EBITDA and adjusted EBITDA are summarized and reconciled to net (loss) income ~~(loss)~~ 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 January 31,
			2023		2022
Net income (loss) attributable to Limoneira Company			$	15,631	$	(6,518)







Net (loss) income attributable to Limoneira Company
Net (loss) income attributable to Limoneira Company
Net (loss) income attributable to Limoneira Company
Interest income	Interest income		(8)		(21)
Interest (expense), net of patronage dividends			1,172		(215)
Income tax provision (benefit)			6,827		(2,650)
Interest income
Interest income
Interest expense, net of patronage dividends
Interest expense, net of patronage dividends
Interest expense, net of patronage dividends
Income tax (benefit) provision
Income tax (benefit) provision
Income tax (benefit) provision
Depreciation and amortization
Depreciation and amortization
Depreciation and amortization	Depreciation and amortization		2,447		2,480
EBITDA	EBITDA		$	26,069	$	(6,924)
EBITDA
EBITDA
Stock-based compensation	Stock-based compensation		1,064		997
Named executive officer cash severance			—		432
Stock-based compensation
Stock-based compensation

Pension settlement cost

Pension settlement cost

Pension settlement cost	Pension settlement cost		2,741		—
Gain on disposal of assets, net	Gain on disposal of assets, net		(39,742)		(85)
Gain on disposal of assets, net
Gain on disposal of assets, net
Cash bonus related to sale of assets	Cash bonus related to sale of assets		2,000		—
Cash bonus related to sale of assets
Cash bonus related to sale of assets

Adjusted EBITDA	Adjusted EBITDA		$	(7,868)	$	(5,580)

Adjusted EBITDA

Adjusted EBITDA

Three Months Ended January 31, ~~2023~~2024 Compared to the Three Months Ended January 31, ~~2022~~2023

Revenues

Total net revenues for the three months ended January 31, ~~2023~~2024 were ~~$37.9~~$39.7 million, compared to ~~$39.3~~$37.9 million for the three months ended January 31, ~~2022.~~2023. The ~~3% decrease~~5% increase of ~~$1.4~~$1.8 million was primarily ~~the result of decreased lemon and avocado agribusiness~~due to farm management revenues asfrom our relationship with PGIM. Agribusiness revenues are detailed below ~~($ in~~(in thousands):






		Agribusiness Revenues for the Three Months Ended January 31,
		2023		2022		Change			2024				2023					Change
Lemons	Lemons	$	34,129	$	35,568	$	(1,439)	(4)%	Lemons	$	32,976	$		$	32,969	$			$	7		—%	—%
Avocados	Avocados	—		766		(766)		(100)%	Avocados	—		—			—		—				—			—%	—%
Oranges	Oranges	1,152		873		279		32%	Oranges	1,141		1,152			1,152		(11)				(11)			(1)%	(1)%
Specialty citrus and other crops	Specialty citrus and other crops	1,247		876		371		42%	Specialty citrus and other crops	1,086		1,247			1,247		(161)				(161)			(13)%	(13)%
Farm management									Farm management	2,048				—					2,048			—%
Other									Other	1,088				1,160					(72)			(6)%
Agribusiness revenues	Agribusiness revenues	$	36,528	$	38,083	$	(1,555)	(4)%	Agribusiness revenues	$	38,339	$		$	36,528	$			$	1,811		5%	5%

•Lemons: ~~The decrease~~Revenues in the first quarter of fiscal year ~~2023 was primarily the result of decreased brokered fruit and decreased shipping and handling compared~~2024 were similar to the same period of fiscal year ~~2022.~~2023. During the first quarter of fiscal years ~~2023~~2024 and ~~2022,~~2023, fresh lemon sales were ~~$24.7~~$23.9 million and $24.7 million, in aggregate, on ~~1,308,000~~1,137,000 and ~~1,207,000~~1,308,000 cartons of lemons sold at average per carton prices of ~~$18.88~~$21.06 and ~~$20.48,~~$18.88, respectively. Lemon revenues in the first quarter of fiscal years 2024 and 2023 included brokered lemons and ~~2022 included~~other lemon sales of $2.9 million and $1.4 million, shipping and handling of $5.6 million and ~~$6.0 million, brokered fruit and other lemon sales of $2.5 million and $3.9~~$5.6 million and lemon by-product sales of ~~$1.2~~$0.5 million and ~~$1.0~~$1.2 million, respectively.

•Avocados: Due to harvest timing, no sales were recorded for the first quarters of fiscal years 2024 and 2023.

•Oranges: Revenues in the first quarter of fiscal year ~~2023 compared to sales of 365,000 pounds of avocados at an average per pound price of $2.10 in the first quarter of fiscal year 2022.~~

•~~Oranges: The increase in the first quarter of fiscal year 2023 was primarily the result of increased volume and higher prices of oranges sold, compared~~2024 were similar to the same period of fiscal year ~~2022. In~~2023. During the first quarter of fiscal years ~~2023~~2024 and ~~2022,~~2023, we sold 80,000 and 64,000 ~~and 53,000 40-pound carton equivalents~~cartons of oranges at an average per carton price of ~~$18.00~~$14.26 and ~~$16.47,~~$18.00, respectively.

•Specialty citrus and other crops: The ~~increase~~decrease in the first quarter of fiscal year ~~2023 was primarily the result of increased volume and higher prices of specialty citrus sold,~~2024, compared to the same period of fiscal year ~~2022.~~2023, was primarily due to a decrease in specialty citrus revenue of $0.8 million, partially offset by wine grapes revenue of $0.6 million. During the first quarter of fiscal years ~~2023~~2024 and ~~2022,~~2023, we sold ~~54,000~~17,000 and ~~51,000~~54,000 40-pound carton equivalents of specialty citrus at an average per carton price of ~~$23.09~~$28.88 and ~~$14.63,~~$23.09, respectively.

•Farm management: Farm management revenues in the first quarter of fiscal year 2024 were $2.0 million, primarily related to the Northern Properties farming, management and operations services. There were no farm management revenues in the first quarter of fiscal year 2023.

•Other: Other revenue is comprised primarily of fallowing and freight revenue. Other revenues in the first quarter of fiscal year 2024 were similar to the same period of fiscal year 2023.

Other operations revenue in the first ~~quarter~~quarters of fiscal years 2024 and 2023 ~~and 2022 was~~were $1.4 ~~million and~~ ~~$1.2 million, respectively.~~

million.

Costs and Expenses

~~Our total~~Total costs and expenses in the first quarter of fiscal year ~~2023~~2024 were ~~$12.0~~$47.5 million, compared to ~~$48.8~~$12.0 million in the same period of fiscal year ~~2022.~~2023. The ~~75% decrease~~295% increase of ~~$36.8~~$35.4 million was ~~primarily the result of increased gain on disposal of assets, net~~ primarily related to the gain on the sale of the Northern Properties ~~sale. Costs~~in the first quarter of fiscal year 2023, partially offset by decreases in agribusiness costs and expenses ~~associated with our agribusiness division include packing~~and selling, general and administrative expenses. Agribusiness costs ~~harvest costs, growing costs, costs related to the fruit we procure~~ and ~~sell for third-party growers and suppliers and depreciation and amortization expense, as~~expenses are detailed below ~~($ in~~(in thousands):




		Agribusiness Costs and Expenses for the Three Months Ended January 31,
		2023		2022		Change			2024				2023					Change
Packing costs	Packing costs	$	12,339	$	11,280	$	1,059	9%	Packing costs	$	10,718	$		$	11,353	$			$	(635)		(6)%	(6)%
Harvest costs	Harvest costs	4,078		5,246		(1,168)		(22)%	Harvest costs	1,933		4,078			4,078		(2,145)				(2,145)			(53)%	(53)%
Growing costs	Growing costs	7,671		8,278		(607)		(7)%	Growing costs	6,192		7,671			7,671		(1,479)				(1,479)			(19)%	(19)%
Third-party grower and supplier costs	Third-party grower and supplier costs	15,018		14,255		763		5%	Third-party grower and supplier costs	17,723		15,018			15,018		2,705				2,705			18%	18%
Other costs									Other costs	804				986					(182)			(18)%
Depreciation and amortization	Depreciation and amortization	2,135		2,185		(50)		(2)%	Depreciation and amortization	1,744		2,135			2,135		(391)				(391)			(18)%	(18)%
Agribusiness costs and expenses	Agribusiness costs and expenses	$	41,241	$	41,244	$	(3)	—%	Agribusiness costs and expenses	$	39,114	$		$	41,241	$			$	(2,127)		(5)%	(5)%

•Packing costs: Packing costs consist primarily of the costs to pack lemons for sale such as labor and benefits, custom pack, cardboard cartons, fruit treatments, packing and shipping supplies and facility operating costs. ~~In the first quarter of fiscal years 2023 and 2022, lemon packing costs were $11.4 million and $10.6 million, respectively.~~ During the first quarter of fiscal years ~~2023~~2024 and ~~2022,~~2023, we packed and sold ~~1,308,000~~1,137,000 and ~~1,207,000~~1,308,000 cartons of lemons at average per carton costs of $9.43 and $8.68, ~~and $8.74,~~ respectively. ~~Additionally,~~The increase in ~~the first quarter of fiscal years 2023 and 2022,~~per carton packing costs ~~included $1.0 million~~was primarily due to decreased volume packed and ~~$0.7 million of shipping costs, respectively.~~sold.

•Harvest costs: The decrease in the first quarter of fiscal year ~~2023 was primarily the result of decreased volume of lemons and avocados harvested~~2024, compared to the same period inof fiscal year ~~2022.~~2023, was primarily due to decreased volume of lemons harvested due to rainfall delaying harvest.

•Growing costs: Growing costs, also referred to as cultural costs, consist of orchard maintenance costs such as cultivation, fertilization and soil amendments, pest control, pruning and irrigation. The decrease in the first quarter of fiscal year 2024, compared to the same period in fiscal year 2023, was primarily due to the ~~result~~Northern Properties sale in the first quarter of ~~farm management decisions based on weather, harvest timing and crop conditions.~~fiscal year 2023.

•Third-party grower and supplier costs: We sell fruit that we grow and fruit that we procure from other growers and suppliers. The cost of procuring fruit from other growers and suppliers is referred to as third-party grower and supplier costs. The increase in the first quarter of fiscal year ~~2023 was primarily the result of increased volume, partially offset by decreased prices of third-party grower fruit sold,~~2024, compared to the same period of fiscal year ~~2022.~~2023, was primarily due to increased volume and prices for third-party grower fruit. In the first quarter of fiscal years 2024 and 2023, we incurred costs for third-party grower fruit of $14.7 million and $11.8 million, respectively. Of the ~~1,308,000~~1,137,000 and ~~1,207,000~~1,308,000 cartons of lemons packed and sold during the first quarter of fiscal years 2024 and 2023, 952,000 (84%) and ~~2022,~~ 866,000 (66%) ~~and 693,000 (57%)~~, ~~respectively,~~ were procured from third-party growers at average per carton prices of $15.41 and $13.60, ~~and $16.28. Additionally,~~respectively. The increased volume for third-party grower fruit was primarily due to Northern Properties fruit that was Limoneira fruit in the first quarter of fiscal ~~years~~year 2023 and ~~2022,~~third-party grower fruit in the first quarter of fiscal year 2024. In the first quarter of fiscal years 2024 and 2023, we incurred costs for third-party supplier fruit of $3.0 million and $3.2 million, ~~and $3.0 million, respectively,~~respectively.

•Other costs: The decrease in the first quarter of ~~costs for purchased, packed fruit for resale.~~fiscal year 2024, compared to the same period of fiscal year 2023, was primarily due to decreased freight costs.

•Depreciation and amortization: Depreciation and amortization expense for the first quarter of fiscal years 2024 and 2023 was $1.7 million and ~~2022 was~~ $2.1 million, ~~and $2.2 million,~~ respectively. The decrease in the first quarter of fiscal year 2024, compared to the same period of fiscal year 2023, was primarily due to the Northern Properties sale in the first quarter of fiscal year 2023.

Other operations expenses were $1.2 million in the first quarters of fiscal years 2024 and ~~$1.1~~2023.

Gain on disposal of assets, net was $0.2 million and $39.7 million in the first quarter of fiscal years 2024 and 2023, ~~and 2022,~~ respectively.

~~Gain on disposal of assets, net~~ The decrease was ~~$39.7 million and $0.1 million~~primarily due to the Northern Properties sale in the first quarter of ~~fiscal years 2023 and 2022, respectively. The change is primarily related to sale of our Northern Properties in~~ fiscal year 2023.

Selling, general and administrative costs and expenses were ~~$9.3~~$7.3 million and ~~$6.6~~$9.3 million in the first quarter of fiscal years ~~2023~~2024 and ~~2022,~~2023, respectively. The ~~41% increase~~21% decrease of ~~$2.7~~$1.9 million was primarily ~~the result of:~~due to:

•$2.0 million net ~~increase~~decrease in salaries, benefits and incentive ~~compensation;~~compensation, primarily due to the Northern Properties sale; and

•$0.1 ~~million increase in selling expenses; and~~

•~~$0.6~~ million net increase in other selling, general and administrative expenses, primarily associated with our strategic initiatives.

Other (Expense) Income

~~Other (expense) income~~Total other expense was ~~$(3.5)~~$0.1 million and ~~$0.3~~$3.5 million in the first quarter of fiscal years ~~2023~~2024 and ~~2022,~~2023, respectively. The ~~change~~decrease of ~~$3.8~~$3.4 million in total other expense was primarily ~~the result of:~~due to:

•$~~1.4~~1.0 million ~~increase of~~decrease in interest expense ~~net~~ as a result of ~~a $1.6 million patronage dividend recorded in the first quarter of fiscal year 2022, compared to zero in fiscal year 2023;~~decreased long-term debt; and

•$2.6 million ~~increase of~~decrease in other expense, ~~net;~~net, primarily ~~as a result of~~related to the pension ~~settlement costs; and~~

•~~$0.2 million increase of equity in earnings of investments.~~plan settlement.

Income Taxes

We recorded an estimated income tax benefit (provision) ~~benefit~~ of ~~$(6.8)~~$4.2 million and ~~$2.7~~$(6.8) million in the first quarter of fiscal years ~~2023~~2024 and ~~2022~~2023 on pre-tax (loss) income ~~(loss)~~ of ~~$22.4~~$(7.9) million and ~~$(9.3)~~$22.4 million, respectively. The tax ~~provision~~benefit recorded for the first quarter of fiscal year ~~2023~~2024 differs from the U.S. federal statutory tax rate of 21.0% due primarily to foreign jurisdictions which are taxed at different rates, state taxes, tax impact of stock-based compensation, ~~and~~ nondeductible tax ~~items.~~items and valuation allowances on certain deferred tax assets of foreign subsidiaries. Our projected annual effective blended tax rate for fiscal year ~~2023,~~2024, excluding discrete items, is approximately ~~27.4%~~45.2%.

Net Loss Attributable to Noncontrolling Interest

Net loss attributable to noncontrolling interest represents 10% and 49% of ~~the net losses of~~ PDA and Trapani Fresh, respectively, of the net loss in the first quarter of fiscal years 2024 and 2023, respectively.

Segment Results of Operations

We operate in four reportable operating segments: fresh lemons, lemon packing, avocados and other agribusiness. Our reportable operating segments are strategic business units with different products and services, distribution processes and customer bases. We evaluate the performance of our operating segments separately to monitor the different factors affecting financial results. Each segment is subject to review and evaluations related to current market conditions, market opportunities and available resources. See Note 19 - Segment Information for additional information regarding our operating segments.

Three Months Ended January 31, ~~2023~~2024 Compared to the Three Months Ended January 31, ~~2022~~2023

The following table shows the segment results of operations for the three months ended January 31, 2024 (in thousands):


	Fresh Lemons		Lemon Packing		Eliminations		Avocados		Other Agribusiness		Total Agribusiness		Corporate and Other		Total
Revenues from external customers	$	27,384	$	5,592	$	—	$	—	$	5,363	$	38,339	$	1,392	$	39,731
Intersegment revenue	—		6,716		(6,716)		—		—		—		—		—
Total net revenues	27,384		12,308		(6,716)		—		5,363		38,339		1,392		39,731
Costs and expenses	28,841		10,718		(6,716)		—		4,527		37,370		8,048		45,418
Depreciation and amortization	—		—		—		—		—		1,744		314		2,058
Operating (loss) income	$	(1,457)	$	1,590	$	—	$	—	$	836	$	(775)	$	(6,970)	$	(7,745)

The following table shows the segment results of operations for the three months ended January 31, 2023 (in thousands):

Fresh
Lemons Lemon
Packing Eliminations
Avocados Other
Agribusiness Total
Agribusiness Corporate
and Other Total
Revenues from external customers $ 28,481 $ 5,648 $ — $ — $ 2,399 $ 36,528 $ 1,373 $ 37,901
Intersegment revenue — 7,363 (7,363) — — — — —
Total net revenues 28,481 13,011 (7,363) — 2,399 36,528 1,373 37,901
Costs and expenses (gain) 33,300 11,353 (7,363) — 1,816 39,106 (29,536) 9,570
Depreciation and amortization — — — — — 2,135 312 2,447
Operating income (loss) $ (4,819) $ 1,658 $ — $ — $ 583 $ (4,713) $ 30,597 $ 25,884

~~The following table shows the segment results of operations for the three months ended January 31, 2022 (in thousands):~~


	Fresh Lemons		Lemon Packing		Eliminations		Avocados		Other Agribusiness		Total Agribusiness		Corporate and Other		Total
Revenues from external customers	$	27,321	$	5,648	$	—	$	—	$	3,559	$	36,528	$	1,373	$	37,901
Intersegment revenue	—		7,363		(7,363)		—		—		—		—		—
Total net revenues	27,321		13,011		(7,363)		—		3,559		36,528		1,373		37,901
Costs and expenses	32,314		11,353		(7,363)		—		2,802		39,106		(29,536)		9,570
Depreciation and amortization	—		—		—		—		—		2,135		312		2,447
Operating (loss) income	$	(4,993)	$	1,658	$	—	$	—	$	757	$	(4,713)	$	30,597	$	25,884

The following analysis should be read in conjunction with the previous section “Results of Operations.”

Fresh Lemons

Fresh lemons segment revenue is comprised of sales of fresh lemons, lemon by-products, ~~and~~ brokered ~~fruit~~lemons and other lemon ~~revenue such as purchased, packed fruit for resale.~~revenue. For the first quarter of fiscal years ~~2023~~2024 and ~~2022,~~2023, our fresh lemons segment total net revenues were ~~$28.5~~$27.4 million and ~~$29.6~~$27.3 million, respectively. The ~~4% decrease~~increase of ~~$1.1~~$0.1 million was primarily ~~the result~~due to:

•Fresh lemon sales decrease of ~~a net~~$0.8 million;

•Lemon by-products sales decrease ~~in brokered fruit~~of $0.7 million; and

•Brokered lemons and other lemon ~~sales.~~sales increase of $1.6 million.

Costs and expenses associated with our fresh lemons segment include growing costs, harvest costs, ~~and costs~~cost of lemons we procure from third-party growers and ~~suppliers.~~suppliers and packing service charges incurred from the lemon packing segment to pack lemons for sale. For the first quarter of fiscal years ~~2023~~2024 and ~~2022,~~2023, our fresh lemons segment costs and expenses were ~~$33.3~~$28.8 million and ~~$32.2~~$32.3 million, respectively. The ~~4% increase~~11% decrease of ~~$1.1~~$3.5 million was primarily ~~the result of:~~due to:

•Harvest costs ~~for the first quarter~~decrease of ~~fiscal year 2023 were $1.1 million lower than the same period of fiscal year 2022.~~$2.2 million;

•Growing costs ~~for the first quarter~~decrease of ~~fiscal year 2023 were $1.1 million higher than the same period of fiscal year 2022.~~$3.5 million;

•Third-party grower and supplier costs ~~for the first quarter~~increase of ~~fiscal year 2023 were $0.1 million higher than the same period of fiscal year 2022.~~

•~~Transportation costs for the first quarter of fiscal year 2023 were $0.3 million higher than the same period of fiscal year 2022.~~$2.9 million; and

•Intersegment costs and expenses ~~for the first quarter~~decrease of ~~fiscal year 2023 were $0.8 million higher than the same period of fiscal year 2022.~~$0.7 million.

Lemon Packing

Lemon packing segment revenue is comprised of packing revenue and intersegment packing ~~revenue and shipping and handling~~ revenue. For the first quarter of fiscal years ~~2023~~2024 and ~~2022,~~2023, our lemon packing segment total net revenues were ~~$13.0~~$12.3 million and ~~$12.6~~$13.0 million, respectively. The ~~4% increase~~5% decrease of ~~$0.5~~$0.7 million was primarily ~~the result of increased~~due to decreased volume of lemons ~~packed and sold.~~packed.

Costs and expenses associated with our lemon packing segment consist of the ~~cost~~costs to pack lemons for sale such as labor and benefits, cardboard cartons, fruit treatments, packing and shipping supplies and facility operating costs. For the first quarter of fiscal years ~~2023~~2024 and ~~2022,~~2023, our lemon packing costs and expenses were ~~$11.4~~$10.7 million and ~~$10.6~~$11.4 million, respectively. The ~~8% increase~~6% decrease of ~~$0.8~~$0.6 million was primarily ~~the result of increased~~due to decreased volume ~~of lemons~~ packed and sold.

For the first quarter of fiscal years ~~2023~~2024 and ~~2022,~~2023, lemon packing segment operating income per carton sold was ~~$1.27~~$1.40 and ~~$1.66,~~$1.27, respectively.

The lemon packing segment included $6.7 million and $7.4 million of intersegment revenues for the first quarter of fiscal years 2024 and 2023, ~~and 2022, the lemon packing segment included $7.4 million and $6.6 million,~~ respectively, ~~of intersegment revenues~~ that were charged to the fresh lemons segment to pack lemons for sale. Such intersegment revenues and expenses are eliminated in our consolidated financial statements.

Avocados

~~For the first quarter of fiscal year 2023, our~~Our avocados segment had no ~~revenue, compared to $0.8 million in~~revenues for the ~~same period~~first quarters of fiscal ~~year 2022.~~years 2024 and 2023.

Costs and expenses associated with our avocados segment include growing and harvest costs. ~~For~~Our avocados segment had no costs and expenses for the first ~~quarter~~quarters of fiscal years ~~2023~~2024 and ~~2022, our avocados segment costs and expenses were zero and $0.3 million, respectively.~~2023.

Other Agribusiness

~~For the first quarter of fiscal years 2023 and 2022, our~~Our other agribusiness segment total net revenues were ~~$2.4~~$5.4 million and ~~$1.7~~$3.6 million ~~respectively. The 37% increase of $0.7 million was primarily the result of:~~

•~~Orange revenues~~ for the first quarter of fiscal ~~year~~years 2024 and 2023, ~~were $0.3~~respectively. The 51% increase of $1.8 million ~~higher than the same period of fiscal year 2022.~~was primarily due to:

•Specialty citrus and other crops revenues decrease of $0.2 million; and

•Farm management revenues for the first quarter of fiscal year ~~2023~~2024 were ~~$0.4 million higher than~~$2.0 million. There were no farm management revenues in the ~~same period~~first quarter of fiscal year ~~2022.~~2023.

Costs and expenses associated with our other agribusiness segment include growing costs, harvest costs, ~~and~~ purchased fruit costs and freight costs. ~~For~~Our other agribusiness costs and expenses were $4.5 million and $2.8 million for the first quarter of fiscal years ~~2023~~2024 and ~~2022, our other agribusiness costs and expenses were $1.8 million and $2.6 million,~~2023, respectively. The ~~30% decrease~~62% increase of ~~$0.8~~$1.7 million was primarily ~~the result of:~~due to:

•Harvest costs ~~for the first quarter~~increase of ~~fiscal year 2023 were~~ $0.1 ~~million lower than the same period of fiscal year 2022.~~million;

•Growing costs ~~for the first quarter~~increase of ~~fiscal year 2023 were $1.4 million lower than the same period of fiscal year 2022.~~$2.0 million;

•Purchased fruit costs ~~for the first quarter~~decrease of ~~fiscal year 2023 were $0.7 million higher than the same period~~$0.2 million; and

•Freight costs decrease of ~~fiscal year 2022.~~$0.2 million.

Total agribusiness depreciation and amortization expenses were $1.7 million and $2.1 million for the first quarter of fiscal years 2024 and 2023, ~~and 2022 were similar at $2.1 million.~~respectively.

Corporate and Other

Our corporate and other operations had revenues of $1.4 million ~~and $1.2 million~~ for the first ~~quarter~~quarters of fiscal years ~~2023~~2024 and ~~2022, respectively.~~2023.

Costs and expenses in our corporate and other operations were approximately $8.0 million and $(29.5) million for the first quarter of fiscal years ~~2023~~2024 and ~~2022 were approximately $(29.5) million and $7.4 million,~~2023, respectively, and include selling, general and administrative costs and expenses and gain on disposal of assets, ~~not allocated to the operating segments.~~net. Depreciation and amortization expenses for the first ~~quarter~~quarters of fiscal years ~~2023~~2024 and ~~2022~~2023 were similar at $0.3 million.

Seasonal Operations

Historically, our agribusiness operations have been seasonal in nature with quarterly revenue fluctuating depending on the timing and the variety of crops being harvested. Cultural costs in our agribusiness tend to be higher in the first and second quarters and lower in the third and fourth quarters because of the timing of expensing cultural costs in the current year that were inventoried in the prior year. Our harvest costs generally increase in the second quarter and peak in the third quarter coinciding with the increasing production and revenue. Due to this seasonality and to avoid the inference that interim results are indicative of the estimated results for a full fiscal year, we present supplemental information for 12-month periods ended at the interim date for the current and preceding years.

3233

Results of Operations for the Trailing Twelve Months Ended January 31, ~~2023~~2024 and ~~2022~~2023

The following table shows the unaudited results of operations (in thousands):


		Trailing Twelve Months Ended January 31,					Trailing Twelve Months Ended January 31,
		2023		2022			2024	2023
Net revenues:	Net revenues:					Net revenues:
Agribusiness	Agribusiness	$	177,726	$	162,327
Other operations	Other operations	5,506		4,699
Total net revenues	Total net revenues	183,232		167,026
Costs and expenses:	Costs and expenses:
Agribusiness	Agribusiness	160,648		152,798
Agribusiness
Agribusiness
Other operations	Other operations	4,602		4,324

(Gain) loss on disposal of assets		(44,157)		24
Loss (gain) on disposal of assets
Loss (gain) on disposal of assets
Loss (gain) on disposal of assets
Gain on legal settlement
Selling, general and administrative	Selling, general and administrative	24,496		20,130
Total costs and expenses	Total costs and expenses	145,589		177,276
Operating income (loss)		37,643		(10,250)
Other (expense) income:
Operating (loss) income
Other income (expense):
Interest income	Interest income	40		357
Interest expense, net of patronage dividends		(3,678)		(1,420)
Interest income
Interest income
Interest (expense), net of patronage dividends
Equity in earnings of investments, net	Equity in earnings of investments, net	1,543		2,888

Other (expense) income, net		(3,582)		111
Total other (expense) income		(5,677)		1,936
Income (loss) before income tax (provision) benefit		31,966		(8,314)
Income tax (provision) benefit		(10,300)		1,729
Net income (loss)		21,666		(6,585)
Other income (expense), net
Other income (expense), net
Other income (expense), net
Total other income (expense)
(Loss) income before income tax benefit (provision)
Income tax benefit (provision)
Net (loss) income
Loss attributable to noncontrolling interest	Loss attributable to noncontrolling interest	247		836
Net income (loss) attributable to Limoneira Company		$	21,913	$	(5,749)
Net (loss) income attributable to Limoneira Company

The following analysis should be read in conjunction with the previous section “Results of Operations.”

•Total revenues ~~increased $16.2~~decreased $1.5 million, ~~in the twelve months ended January 31, 2023, compared~~primarily due to ~~the twelve months ended January 31, 2022, primarily related to increased~~decreased avocados and oranges agribusiness revenues, ~~particularly~~partially offset by increased ~~avocado sales, oranges and specialty crops.~~farm management revenues.

•Total costs and expenses ~~decreased $31.7~~increased $59.0 million, ~~in the twelve months ended January 31, 2023, compared~~primarily due to ~~the twelve months ended January 31, 2022, primarily related to gain~~loss (gain) on disposal of assets ~~partially offset by~~and increased agribusiness costs and selling, general and administrative expenses.

•Total other ~~expense increased $7.6~~income decreased $11.7 million, ~~in the twelve months ended January 31, 2023, compared~~primarily due to ~~the twelve months ended January 31, 2022, primarily related to increased~~decreased interest expense, ~~net of patronage dividends, decreased~~increased equity in earnings of investments, net and ~~increased~~decreased other expense ~~primarily due~~related to pension settlement costs.

•Income tax ~~provision~~benefit increased ~~$12.0~~$17.1 million, ~~in the twelve months ended January 31, 2023, compared~~primarily due to ~~the twelve months ended January 31, 2022, primarily related to an increase in~~increased pre-tax ~~income~~loss of ~~$40.3~~$48.8 million.

3334

Liquidity and Capital Resources

Overview

Our primary sources of liquidity are cash and cash flows generated from our operations and use of our revolving credit facility. Our liquidity and capital position fluctuates during the year depending on seasonal production cycles, weather events and demand for our products. Typically, our first and last fiscal quarters coincide with the fall and winter months during which we are growing crops that are harvested and sold in the spring and summer, which are our second and third quarters. To meet working capital demand and investment requirements of our agribusiness and real estate development projects and to supplement operating cash flows, we utilize our revolving credit facility to fund agricultural inputs and farm management practices until sufficient returns from crops allow us to repay amounts borrowed. Raw materials needed to propagate the various crops grown by us consist primarily of fertilizer, herbicides, insecticides, fuel and water, all of which are readily available from local sources.

Material contractual obligations arising in the normal course of business consist primarily of purchase obligations, long-term fixed rate and variable rate debt and related interest payments and operating and finance leases. See Note 10 - Long-Term Debt and Note 12 - Leases for amounts outstanding as of January 31, ~~2023,~~2024, related to debt and leases. Purchase obligations consist of contracts primarily related to packing supplies, the majority of which are due in the next ~~three~~5 years.

We believe that the cash flows from operations and available borrowing capacity from our existing credit facilities will be sufficient to satisfy our capital expenditures, debt service, working capital needs and other contractual obligations for the next twelve months. We believe our revenue generating operations, distributions from equity investments and credit facilities will generate sufficient cash needed to operate beyond the next twelve months. In addition, we have the ability to control a portion of our investing cash flows to the extent necessary based on our liquidity demands.

Cash Flows from Operating Activities

~~For the three months ended January 31, 2023, net~~Net cash used in operating activities was ~~$21.2~~$10.3 million ~~compared to net cash used in operating activities of $8.2~~and $21.2 million for the three months ended January 31, ~~2022.~~2024 and 2023, respectively. The significant components of our cash flows used in operating activities were as follows:

•Net (loss) income ~~(loss)~~was $(3.7) million and $15.5 million for the three months ended January 31, ~~2023~~2024 and ~~2022 was $15.5 million and $(6.6) million,~~2023, respectively. The components of net ~~income~~loss in the three months ended January 31, ~~2023,~~2024, compared to the net ~~loss~~income in the same period in fiscal year ~~2022~~2023 consist of ~~an increase~~a decrease in operating income of ~~$35.4~~$33.6 million ~~an increase~~primarily due to the Northern Properties sale, a decrease in total other expense of ~~$3.8~~$3.4 million and an increase in income tax ~~provision~~benefit of ~~$9.5~~$11.0 million.

•Adjustments to reconcile net (loss) income ~~(loss)~~ to net cash used in operating activities:

◦Adjustments used ~~$29.1~~$1.1 million and ~~provided $1.1~~$29.1 million in the three months ended January 31, ~~2023~~2024 and ~~2022,~~2023, respectively, primarily related to depreciation and amortization, gain on disposal of assets ~~depreciation and amortization, stock compensation expense~~ and deferred income taxes.

◦Changes in operating assets and liabilities used ~~$7.6~~$5.5 million and ~~$2.6~~$7.6 million of operating cash in the three months ended January 31, ~~2023~~2024 and ~~2022,~~2023, respectively, primarily related to accounts receivables and receivables/other from related parties ~~cultural costs, prepaid expenses~~ and ~~other current assets,~~ accounts payable and growers and suppliers payable.

Cash Flows from Investing Activities

~~For~~Net cash (used in) provided by investing activities was $(1.6) million and $99.1 million for the three months ended January 31, 2024 and 2023, ~~and 2022, net~~respectively.

▪The $1.6 million of cash ~~provided by (used in)~~used in investing activities during the three months ended January 31, 2024 was ~~$99.1~~comprised primarily of capital expenditures of $2.2 million, primarily related to orchard and ~~$(0.7)~~vineyard development, and equity investment contributions and capitalized interest of $0.3 million, ~~respectively.~~partially offset by net proceeds from sales of assets of $0.8 million.

•▪The $99.1 million of cash provided by investing activities during the three months ended January 31, 2023 was comprised primarily of net proceeds from sales of assets of $98.9 million and net proceeds from the sale of real estate development assets of $2.6 million, partially offset by capital expenditures of $2.2 million, primarily related to orchard and vineyard development.

•The $0.7 million of cash used in investing activities during the three months ended January 31, 2022 was comprised primarily of capital expenditures of $2.1 million primarily related to orchard and vineyard development, partially offset by net proceeds from sales of assets of $1.1 million.

3435

Cash Flows from Financing Activities

~~For~~Net cash provided by (used in) financing activities was $8.8 million and $(66.3) million for the three months ended January 31, 2024 and 2023, ~~and 2022, net~~respectively.

•The $8.8 million of cash ~~(used in)~~ provided by financing activities during the three months ended January 31, 2024 was ~~$(66.3)~~comprised primarily of net borrowings of long-term debt of $11.1 million, partially offset by common and preferred stock dividends of $1.5 million and ~~$9.3 million, respectively.~~exchange of common stock of $0.7 million.

•The $66.3 million of cash used in financing activities during the three months ended January 31, 2023 was comprised primarily of net repayments of long-term debt of $64.8 million and common and preferred ~~stock~~ dividends of $1.5 million.

•The $9.3 million of cash provided by financing activities during the three months ended January 31, 2022 was comprised primarily of net borrowings of long-term debt of $11.7 million, partially offset by common and preferred dividends, in aggregate, of $1.5 million and the exchange of common stock of $0.9 million.

Transactions Affecting Liquidity and Capital Resources

Credit Facilities and Long-Term Debt

We finance our working capital and other liquidity requirements primarily through cash from operations and from our AgWest Farm Credit Facility, which includes the Master Loan Agreement (the ~~"MLA"~~“MLA”)~~, Supplements~~ and ~~Revolving Equity Line of Credit (the "RELOC").~~Supplements. In addition, we have Banco de Chile term loans and COVID-19 loans. Additional information regarding these loans can be found in Note 10 - Long-Term Debt.

In June 2021, we entered into the MLA with ~~AgWest Farm Credit, formerly known as Farm Credit West, PCA (the "Lender"),~~the Lender, together with the Supplements and a Fixed Interest Rate Agreement, which extends the principal repayment to July 1, 2026. The MLA governs the terms of the Supplements.

The Supplements ~~and RELOC~~ provide aggregate borrowing capacity of ~~$130.0~~$115.0 million, comprised of $75.0 million under the Revolving Credit Supplement and $40.0 million under the Non-Revolving Credit ~~Supplement and $15.0 million under the RELOC.~~Supplement. As of January 31, ~~2023,~~2024, our outstanding borrowings under the AgWest Farm Credit Facility ~~and RELOC~~ were ~~$40.0~~$51.3 million and we had ~~$90.0~~$63.7 million of availability.

On January 31, 2023, the Company sold the Northern Properties which resulted in total net proceeds of ~~$98.8~~$98.4 million. The proceeds were used to pay down all of the Company's domestic debt except the Non-Revolving Credit Supplement.

The MLA subjects us to affirmative and restrictive covenants including, among other customary covenants, financial reporting requirements, requirements to maintain and repair any collateral, restrictions on the sale of assets, restrictions on the use of proceeds, prohibitions on the incurrence of additional debt and restrictions on the purchase or sale of major assets of our business. We are also subject to a financial covenant that requires us to maintain compliance with a ~~specified~~specific debt service coverage ratio ~~greater than or equal to 1:25:1.0~~ on an annual basis. ~~We were in compliance~~In September 2023, the Lender modified the covenant to defer measurement as of October 31, ~~2022.~~2023 and resume a debt service coverage ratio of 1.25:1.0 measured as of October 31, 2024.

In December 2023, the Lender declared an annual cash patronage dividend of 1.25% of average eligible loan balances and we received $0.3 million in the second quarter of fiscal year 2024. In February 2023, the Lender declared an annual cash patronage dividend of 1.25% of average eligible loan balances and ~~the Company~~we received $1.4 million in the second quarter of fiscal year 2023. ~~In the first quarter of fiscal year 2022, the Lender declared an annual patronage dividend of $1.6 million, which we received in the second quarter of fiscal year 2022.~~

Dividends

The holders of the Series B Convertible Preferred Stock ~~(the “Series B Stock”)~~ and the Series B-2 Preferred Stock ~~(the “Series B-2 Preferred Stock”)~~ are entitled to receive cumulative cash dividends. Such preferred dividends paid were $0.1 million in the three months ended January 31, ~~2023~~2024 and ~~2022.~~2023.

Cash dividends declared in the three months ended January 31, 2024 and 2023 ~~and 2022~~ were ~~$0.08~~$0.075 per common share and such dividends paid were $1.4 million and $1.3 million in the three months ended January 31, 2024 and 2023, ~~and 2022.~~respectively.

Critical Accounting Estimates

The preparation of our consolidated financial statements in accordance with GAAP requires us to develop critical accounting policies and make certain estimates, assumptions and judgments that may affect the reported amounts of assets, liabilities, revenues and expenses. We base our estimates and judgments on historical experience, available relevant data and other information that we believe to be reasonable under the circumstances, and we continue to review and evaluate these estimates. Actual results may materially differ from these estimates under different assumptions or conditions as new or additional information become available in future periods. During the three months ended January 31, ~~2023,~~2024, our critical accounting policies and estimates have not changed since the filing of our Annual Report on Form 10-K as of October 31, ~~2022.~~2023. Please refer to that filing for a description of our critical accounting policies and estimates.

3536

Recent Accounting Pronouncements

See Note 2 - Summary of Significant Accounting Policies of the notes to consolidated financial statements included in this Quarterly Report for information concerning recent accounting pronouncements.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

There have been no material changes in the disclosures discussed in the section entitled “Quantitative and Qualitative Disclosures about Market Risk” in Part II, Item 7A of our Annual Report on Form 10-K for the fiscal year ended October 31, ~~2022~~2023, as filed with the SEC on December ~~22, 2022.~~21, 2023.

Item 4. Controls and Procedures

Disclosure Controls and Procedures. As of January 31, ~~2023,~~2024, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our ~~"disclosure~~“disclosure controls and procedures,"” as such term is defined in Rule 13a-15(e) promulgated under the Exchange Act. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this Quarterly ~~Report on Form 10-Q.~~Report.

Changes in Internal Control over Financial Reporting. There have been no significant changes in our internal control over financial reporting during the quarter ended January 31, ~~2023~~2024, or, to our knowledge, in other factors that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Limitations on the Effectiveness of Controls. Control systems, no matter how well conceived and operated, are designed to provide a reasonable, but not an absolute, level of assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

3637

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

From time to time, we are a party to various lawsuits, arbitrations or mediations that arise in the ordinary course of business. The disclosure called for by Part II, Item 1 regarding our legal proceedings is incorporated by reference herein from Part I, Item 1 Note 17 - Commitments and Contingencies of the Notes to the Consolidated Financial Statements in this Quarterly ~~Report on Form 10-Q.~~Report.

Item 1A. Risk Factors

There have been no material changes in the disclosures discussed in the section entitled “Risk Factors” in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended October 31, ~~2022,~~2023, as filed with the SEC on December ~~22, 2022.~~21, 2023.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

~~None.~~During the first quarter of fiscal year 2024, we purchased shares of our common stock as follows:


Period	Total Number of Shares Purchased (1)	Weighted Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
November 1, 2023 - November 30, 2023	—	$	—	—	—
December 1, 2023 - December 31, 2023	36,097	$	18.94	—	—
January 1, 2024 - January 31, 2024	—	$	—	—	—
Total	36,097			—	—

(1) Shares were acquired from employees in accordance with our stock-based compensation plan as a result of share withholdings to pay income tax related to the vesting and distribution of restricted stock awards.

Item 3. Defaults Upon Senior Securities

None.

Item 4. Mine Safety Disclosures

Not applicable.

Item 5. Other Information

None.

3738

Item 6. Exhibits


Exhibit Number			Exhibit
3.1			Restated Certificate of Incorporation of Limoneira Company, dated July 5, 1990 (Incorporated by reference to Exhibit 3.1 to the Company’s Registration Statement on Form 10, and amendments thereto, declared effective April 13, 2010 (File No. 000-53885))

3.2			Certificate of Merger of Limoneira Company and The Samuel Edwards Associates into Limoneira Company, dated October 31, 1990 (Incorporated by reference to Exhibit 3.2 to the Company’s Registration Statement on Form 10, and amendments thereto, declared effective April 13, 2010 (File No. 000-53885))

~~3.3~~			Certificate of Merger of McKevett Corporation into Limoneira Company dated December 31, 1994 (Incorporated by reference to Exhibit 3.3 to the Company’s Registration Statement on Form 10, and amendments thereto, declared effective April 13, 2010 (File No. 000-53885))

~~3.4~~			Agreement of Merger Between Ronald Michaelis Ranches, Inc. and Limoneira Company, dated June 24, 1997 (Incorporated by reference to Exhibit 3.6 to the Company’s Registration Statement on Form 10, and amendments thereto, declared effective April 13, 2010 (File No. 000-53885))

~~3.5~~3.3			Certificate of Amendment of Certificate of Incorporation of Limoneira Company, dated April 22, 2003 (Incorporated by reference to Exhibit 3.7 to the Company’s Registration Statement on Form 10, and amendments thereto, declared effective April 13, 2010 (File No. 000-53885))

~~3.6~~3.4			Certificate of Amendment of Certificate of Incorporation of Limoneira Company, dated March 24, 2010 (Incorporated by reference to Exhibit 3.9 to the Company’s Registration Statement on Form 10, and amendments thereto, declared effective April 13, 2010 (File No. 000-53885))

~~3.7~~3.5			Certificate of Amendment of Certificate of Incorporation of Limoneira Company, dated March 29, 2017 (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed March 31, 2017 (File No. 001-34755))

~~3.8~~3.6			Amended and Restated Bylaws of Limoneira Company, dated December 15, 2023 (Incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K, filed ~~October 27, 2021~~December 18, 2023 (File No. 001-34755))

4.1			Specimen Certificate representing shares of Common Stock, par value $0.01 per share (Incorporated by reference to Exhibit 4.1 to the Company’s Registration Statement on Form 10, and amendments thereto, declared effective April 13, 2010 (File No. 000-53885))

~~4.2~~			Rights Agreement dated December 20, 2006 between Limoneira Company and The Bank of New York, as Rights Agent (Incorporated by reference to Exhibit 4.2 to the Company’s Registration Statement on Form 10, and amendments thereto, declared effective April 13, 2010 (File No. 000-53885))

~~4.3~~			Certificate of Designation, Preferences and Rights of $8.75 Voting Preferred Stock, $100.00 Par Value, Series B of Limoneira Company, dated May 21, 1997 (Incorporated by reference to Exhibit 3.4 to the Company’s Registration Statement on Form 10, and amendments thereto, declared effective April 13, 2010 (File No. 000-53885))

~~4.4~~4.2			Amended Certificate of Designation, Preferences and Rights of $8.75 Voting Preferred Stock, $100.00 Par Value, Series B of Limoneira Company, dated May 21, 1997 (Incorporated by reference to Exhibit 3.5 to the Company’s Registration Statement on Form 10, and amendments thereto, declared effective April 13, 2010 (File No. 000-53885))

~~4.5~~4.3			Certificate of Designation, Preferences and Rights of Series A Junior Participating Preferred Stock, $.01 Par Value, of Limoneira Company, dated November 21, 2006 (Incorporated by reference to Exhibit 3.8 to the Company’s Registration Statement on Form 10, and amendments thereto, declared effective April 13, 2010 (File No. 000-53885))

~~4.6~~4.4			Certificate of Designation, Preferences and Rights of 4% Voting Preferred Stock, $100.00 Par Value, Series B-2 of Limoneira Company, dated March 20, 2014 (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K, filed March 24, 2014 (File No. 001-34755))

3839


Exhibit Number			Exhibit
10.1			~~Single Premium Guaranteed Annuity Contract Purchase~~C ooperation Agreement, ~~dated November 4, 2022 (Incorporated~~by and between Limoneira Company and Peter J. Nolan , date d December 15, 2023 (Incorporated by reference to Exhibit ~~10.1~~10.1 to the Company’s Current Report on Form 8-K, filed ~~November 9, 2022)~~

~~10.2~~			~~Temporary Bulk Payment Agreement, dated November 4, 2022 (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed November 9, 2022)~~

~~10.3~~			Purchase and Sale Agreement and Joint Escrow Instructions, dated October 10, 2022, by and between Limoneira Company and PGIM Real Estate Finance, LLC (Incorporated by reference to Exhibit 10.1 to the Company’s Current Report on Form 8-K, filed January 31,December 18, 2023)

~~10.4~~			First Amendment to Purchase and Sale Agreement and Joint Escrow Instructions, dated January 17, 2023 (Incorporated by reference to Exhibit 10.2 to the Company’s Current Report on Form 8-K, filed January 31, 2023)

~~10.5~~			Second Amendment to Purchase and Sale Agreement and Joint Escrow Instructions, dated January 24, 2023 (Incorporated by reference to Exhibit 10.3 to the Company’s Current Report on Form 8-K, filed January 31, 2023)

10.6*			~~Farm Management Agreement, dated January 31, 2023, by and between Capital Agricultural Property Services, Inc. and Limoneira Company.~~

10.7*			~~Grower Packing & Marketing Agreement, dated as of January 31, 2023, by and between Limoneira Company and PAI Centurion Citrus, LLC.~~

31.1*			Certification of the Principal Executive Officer pursuant to Exchange Act Rule 13a-14(a) and 15d-14(a)

31.2*			Certification of the Principal Financial Officer pursuant to Exchange Act Rule 13a-14(a) and 15d-14(a)

32.1*			Certification of the Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2*			Certification of the Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

101*			The following information from the Company's Quarterly Report on Form 10-Q for the quarter ended January 31, 2024 formatted in Inline XBRL (Extensible Business Reporting Language) includes: (i) the Consolidated Balance Sheets (Unaudited), (ii) the Consolidated Statements of Operations (Unaudited), (iii) the Consolidated Statements of Comprehensive (Loss) Income (Unaudited), (iv) the Consolidated Statements of Stockholders' Equity and Temporary Equity (Unaudited), (v) the Consolidated Statements of Cash Flows (Unaudited), and (vi) the Notes to Consolidated Financial Statements (Unaudited)
101.INS*			~~XBRL Instance Document~~

101.SCH*			~~XBRL Taxonomy Extension Schema Document~~

101.CAL*			~~XBRL Taxonomy Extension Calculation Linkbase Document~~

101.DEF*			~~XBRL Taxonomy Extension Definition Linkbase Document~~

101.LAB*			~~XBRL Taxonomy Extension Label Linkbase Document~~

101.PRE*			~~XBRL Taxonomy Extension Presentation Linkbase Document~~

104			The cover page for the Company's Quarterly Report on Form 10-Q for the quarter ended January 31, ~~2023~~2024 has been formatted in Inline XBRL


			*			Filed or furnished herewith,


						In accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release Nos. 33-8238 and 34-47986, Final Rule: Management's Report on Internal Control Over Financial Reporting and Certification of Disclosure in Exchange Act Periodic Reports, the certifications furnished in Exhibits 32.1 and 32.2 hereto are deemed to accompany this Quarterly Report on Form 10-Q and will not be deemed “filed” for purposes of Section 18 of the Exchange Act. Such certifications will not be deemed to be incorporated by reference into any filing under the Securities Act or the Exchange Act, except to the extent that the registrant specifically incorporates it by reference.

3940

LIMONEIRA COMPANY

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


	LIMONEIRA COMPANY

March ~~9, 2023~~7, 2024	By:	/s/ HAROLD S. EDWARDS
		Harold S. Edwards
		Director, President and Chief Executive Officer
		(Principal Executive Officer)

March ~~9, 2023~~7, 2024	By:	/s/ MARK PALAMOUNTAIN
		Mark Palamountain
		Chief Financial Officer and Treasurer
		(Principal Financial and Accounting Officer)


	Foreign Currency Translation (Loss) Gain		Defined Benefit Pension Plan		Accumulated Other Comprehensive Loss (Income)
Balance at October 31, 2022	$	(6,184)	$	(1,724)	$	(7,908)
Other comprehensive income	2,223		1,724		3,947
Balance at January 31, 2023	$	(3,961)	$	—	$	(3,961)


		Three Months Ended January 31, 2023						Three Months Ended January 31, 2022
		Consolidated Statement of Operations								Consolidated Statement of Operations
Ref	Related Party	Net Revenue Agribusiness		Net Revenue Other Operations		Agribusiness Expense and Other		Dividends Paid			Net Revenue Agribusiness		Net Revenue Other Operations		Agribusiness Expense and Other		Dividends Paid
1	Employees	$	—	$	223	$	—	$	—		$	—	$	211	$	—	$	—
2	Mutual water companies	$	—	$	—	$	372	$	—		$	—	$	—	$	139	$	—
3	Cooperative association	$	—	$	—	$	393	$	—		$	—	$	—	$	365	$	—
4	Calavo	$	—	$	—	$	—	$	—		$	—	$	80	$	2	$	126
5	Cadiz / Fenner / WAM	$	—	$	—	$	1,138	$	—		$	—	$	—	$	717	$	—

7	YMIDD	$	135	$	—	$	—	$	—		$	—	$	—	$	14	$	—
8	FGF	$	83	$	74	$	10	$	—		$	229	$	—	$	59	$	—
12	Principal owner	$	—	$	—	$	—	$	209		$	—	$	—	$	—	$	—