Calavo Growers (CVGW) 10-Q6 Sep 232023 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Jul. 31, 2023	Aug. 31, 2023
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 31, 2023
Document Transition Report	false
Entity File Number	000-33385
Entity Registrant Name	CALAVO GROWERS, INC
Entity Incorporation, State or Country Code	CA
Entity Tax Identification Number	33-0945304
Entity Address, Address Line One	1141-A Cummings Road
Entity Address, City or Town	Santa Paula
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	93060
City Area Code	805
Local Phone Number	525-1245
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	CVGW
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		17,761,061
Entity Central Index Key	0001133470
Current Fiscal Year End Date	--10-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 31, 2023	Oct. 31, 2022
Current assets:
Cash and cash equivalents	$ 1,402	$ 2,060
Restricted cash	761	1,074
Accounts receivable, net of allowances of $4,020 (2023) and $4,199 (2022)	76,417	59,016
Inventories	38,878	38,830
Prepaid expenses and other current assets	12,913	8,868
Advances to suppliers	15,839	12,430
Income taxes receivable	4,150	3,396
Total current assets	150,360	125,674
Property, plant, and equipment, net	114,224	113,310
Operating lease right-of-use assets	49,744	54,518
Investments in unconsolidated entities	3,383	3,782
Deferred income taxes	5,776	5,433
Goodwill	28,653	28,653
Intangibles, net	6,074	7,206
Other assets	56,726	47,170
Total assets	414,940	385,746
Current liabilities:
Payable to growers	22,712	20,223
Trade accounts payable	16,425	10,436
Accrued expenses	42,183	51,795
Other current liabilities	11,000	11,000
Current portion of term loan	404
Current portion of operating leases	6,911	6,925
Current portion of long-term obligations and finance leases	1,674	1,574
Total current liabilities	101,309	101,953
Long-term liabilities:
Borrowings pursuant to line of credit, long-term	36,768	1,200
Long-term portion of term loan	3,055
Long-term portion of operating leases	47,281	52,140
Long-term portion of obligations and finance leases	5,198	4,447
Other long-term liabilities	2,229	2,635
Total long-term liabilities	94,531	60,422
Commitments and contingencies
Shareholders' equity:
Common stock ($0.001 par value, 100,000 shares authorized; 17,761 (2023) and 17,732 (2022) shares issued and outstanding)	18	18
Additional paid-in capital	175,653	171,223
Noncontrolling interest	1,405	1,015
Retained earnings	42,024	51,115
Total shareholders' equity	219,100	223,371
Total liabilities and shareholders' equity	$ 414,940	$ 385,746

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jul. 31, 2023	Oct. 31, 2022
CONSOLIDATED BALANCE SHEETS
Allowances of accounts receivable	$ 4,020	$ 4,199
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	17,761	17,732
Common stock, shares outstanding	17,761	17,732

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2023	Jul. 31, 2022	Jul. 31, 2023	Jul. 31, 2022
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$ 259,875	$ 341,991	$ 730,768	$ 947,501
Cost of sales	234,850	323,477	676,274	894,017
Gross profit	25,025	18,514	54,494	53,484
Selling, general and administrative	17,842	16,659	52,271	48,404
Expenses (recovery) related to Mexican tax matters	(1,203)	303	1,231	1,148
Impairment and charges related to Florida facility closure				959
Operating income	8,386	1,552	992	2,973
Interest expense	(793)	(485)	(1,482)	(1,272)
Other income, net	230	278	862	1,433
Unrealized net income (loss) on Limoneira shares		1,225		(5,803)
Income (loss) before income taxes and loss from unconsolidated entities	7,823	2,570	372	(2,669)
Income tax benefit (expense)	(617)	(984)	(21)	363
Net loss from unconsolidated entities	(498)	(269)	(398)	(812)
Net income (loss)	6,708	1,317	(47)	(3,118)
Add: Net loss (income) attributable to noncontrolling interest	(82)	(17)	(390)	185
Net income (loss) attributable to Calavo Growers, Inc.	$ 6,626	$ 1,300	$ (437)	$ (2,933)
Calavo Growers, Inc.'s net income (loss) per share:
Basic (in dollars per shares)	$ 0.37	$ 0.07	$ (0.02)	$ (0.17)
Diluted (in dollars per shares)	$ 0.37	$ 0.07	$ (0.02)	$ (0.17)
Number of shares used in per share computation:
Basic	17,756	17,667	17,746	17,661
Diluted	17,856	17,769	17,746	17,661

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2023	Jul. 31, 2022
Cash Flows from Operating Activities:
Net loss	$ (47)	$ (3,118)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	12,815	12,472
Non-cash operating lease expense	64	40
Net loss from unconsolidated entities	398	812
Realized and unrealized net loss on Limoneira shares		5,803
Divesture of Calavo Salsa Lisa	624
Impairment and non-cash charges related to closure of Florida facility		317
Provision for uncollectible Mexican IVA taxes receivable	1,404
Stock-based compensation expense	4,382	2,123
Gain on sale of Temecula packinghouse	(162)	(162)
Loss on disposal of property, plant, and equipment	40
Effect on cash of changes in operating assets and liabilities:
Accounts receivable, net	(17,401)	376
Inventories	(437)	4,594
Prepaid expenses and other current assets	(3,673)	(30)
Advances to suppliers	(2,481)	(4,945)
Income taxes receivable/payable	(754)	3,022
Other assets	(11,622)	(3,205)
Payable to growers	2,489	12,716
Trade accounts payable, accrued expenses and other liabilities	(4,837)	11,369
Net cash provided by (used in) operating activities	(19,198)	42,184
Cash Flows from Investing Activities:
Purchases of property, plant, and equipment	(10,092)	(7,738)
Net cash used in investing activities	(10,092)	(7,738)
Cash Flows from Financing Activities:
Payment of dividend to shareholders	(8,654)	(20,330)
Proceeds from revolving credit facilities	215,818	221,500
Payments on revolving credit facilities	(180,250)	(233,600)
Payments of debt issuance cost	(693)
Payments of minimum withholding taxes on net share settlement of equity awards		(95)
Proceeds from term loan	3,459
Payments on long-term obligations and finance leases	(1,409)	(1,357)
Proceeds from stock option exercises	48	47
Net cash provided (used in) by financing activities	28,319	(33,835)
Net increase (decrease) in cash, cash equivalents and restricted cash	(971)	611
Cash, cash equivalents and restricted cash, beginning of period	3,134	2,855
Cash, cash equivalents and restricted cash, end of period	2,163	3,466
Noncash Investing and Financing Activities:
Right of use assets obtained in exchange for new financing lease obligations	2,016
Settlement of Agricola Belher infrastructure advance offset against payable to growers	1,700	1,060
Property, plant, and equipment included in trade accounts payable and accrued expenses	$ 869	$ 309

CONSOLIDATED STATEMENTS OF SHAR

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Noncontrolling Interest	Total
Beginning balance at Oct. 31, 2021	$ 18	$ 168,133	$ 57,363	$ 1,368	$ 226,882
Beginning balance, shares at Oct. 31, 2021	17,686
Stock compensation expense, net		2,123			2,123
Issuance of common stock in connection with stock-based compensation		(48)			(48)
Issuance of common stock in connection with stock-based compensation (in shares)	46
Avocados de Jalisco noncontrolling interest				(185)	(185)
Net income (loss) attributable to Calavo Growers, Inc.			(2,933)		(2,933)
Ending balance at Jul. 31, 2022	$ 18	170,208	54,430	1,183	225,839
Ending balance, shares at Jul. 31, 2022	17,732
Beginning balance at Apr. 30, 2022	$ 18	169,453	53,130	1,166	223,767
Beginning balance, shares at Apr. 30, 2022	17,742
Stock compensation expense, net		755			755
Issuance of common stock in connection with stock-based compensation (in shares)	(10)
Avocados de Jalisco noncontrolling interest				17	17
Net income (loss) attributable to Calavo Growers, Inc.			1,300		1,300
Ending balance at Jul. 31, 2022	$ 18	170,208	54,430	1,183	225,839
Ending balance, shares at Jul. 31, 2022	17,732
Beginning balance at Oct. 31, 2022	$ 18	171,223	51,115	1,015	223,371
Beginning balance, shares at Oct. 31, 2022	17,732
Stock compensation expense, net		4,382			4,382
Issuance of common stock in connection with stock-based compensation		48			48
Issuance of common stock in connection with stock-based compensation (in shares)	29
Dividend declared to shareholders			(8,654)		(8,654)
Avocados de Jalisco noncontrolling interest				390	390
Net income (loss) attributable to Calavo Growers, Inc.			(437)		(437)
Ending balance at Jul. 31, 2023	$ 18	175,653	42,024	1,405	219,100
Ending balance, shares at Jul. 31, 2023	17,761
Beginning balance at Apr. 30, 2023	$ 18	174,674	37,176	1,323	213,191
Beginning balance, shares at Apr. 30, 2023	17,752
Issuance of common stock in connection with stock-based compensation		979			979
Issuance of common stock in connection with stock-based compensation (in shares)	9
Dividend declared to shareholders			(1,778)		(1,778)
Avocados de Jalisco noncontrolling interest				82	82
Net income (loss) attributable to Calavo Growers, Inc.			6,626		6,626
Ending balance at Jul. 31, 2023	$ 18	$ 175,653	$ 42,024	$ 1,405	$ 219,100
Ending balance, shares at Jul. 31, 2023	17,761

CONSOLIDATED STATEMENTS OF SH_2

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (PARENTHETICAL) - $ / shares				3 Months Ended	9 Months Ended
	Jul. 11, 2023	Apr. 06, 2023	Dec. 14, 2022	Jul. 31, 2023	Jul. 31, 2023
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Dividend paid (in dollars per share)	$ 0.10	$ 0.10	$ 0.2875	$ 0.10	$ 0.4875

Description of the business

Description of the business	9 Months Ended
Description of the business	Jul. 31, 2023
Description of the business
Description of the business	1. Description of the business Business Calavo Growers, Inc. (referred to in this report as “Calavo”, the “Company”, “we’, “us” or “our”), is a global leader in the avocado industry and a provider of value-added fresh food. Our expertise in marketing and distributing avocados, prepared avocados, and other perishable foods allows us to deliver a wide array of fresh and prepared food products to retail grocery, foodservice, club stores, mass merchandisers, food distributors and wholesalers on a worldwide basis. We procure avocados from California, Mexico and other growing regions around the world. Through our various operating facilities, we (i) sort, pack, and/or ripen avocados, tomatoes and/or Hawaiian grown papayas, (ii) create, process and package a portfolio of healthy fresh foods including fresh-cut fruit and vegetables, and prepared foods and (iii) process and package guacamole and salsa. We distribute our products both domestically and internationally and we report our operations in different business segments: Grown and Prepared. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of adjustments of a normal recurring nature necessary to present fairly the Company’s financial position, results of operations and cash flows. The results of operations for interim periods are not necessarily indicative of the results that may be expected for a full year. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended

Information regarding our opera

Information regarding our operations in different segments	9 Months Ended
Information regarding our operations in different segments	Jul. 31, 2023
Information regarding our operations in different segments
Information regarding our operations in different segments	2. Information regarding our operations in different segments We report our operations in two different business segments: Grown and Prepared. The Grown segment consists of fresh avocados, tomatoes and papayas. The Prepared segment comprises all other products including fresh cut fruits and vegetables, ready-to-eat sandwiches, wraps, salads and snacks, guacamole, and salsa sold at retail and food service as well as avocado pulp sold to foodservice. These two business segments are presented based on how information is used by our Chief Executive Officer to measure performance and allocate resources. Selling, general and administrative expenses, as well as other non-operating income/expense items, are evaluated by our Chief Executive Officer in the aggregate. We do not allocate assets, or specifically identify them, to our operating segments. The sales data in the following tables is presented in thousands: Three months ended July 31, 2023 Three months ended July 31, 2022 Grown Prepared Total Grown Prepared Total Avocados $ 127,328 $ — $ 127,328 $ 196,443 $ — $ 196,443 Tomatoes 15,662 — 15,662 8,990 — 8,990 Papayas 2,338 — 2,338 2,679 — 2,679 Other fresh income 10 — 10 54 — 54 Fresh-cut products — 101,150 101,150 — 117,541 117,541 Guacamole — 18,049 18,049 — 19,606 19,606 Salsa — 49 49 — 524 524 Total gross sales 145,338 119,248 264,586 208,166 137,671 345,837 Less sales allowances (795) (3,442) (4,237) (577) (2,799) (3,376) Less inter-company eliminations (474) — (474) (470) — (470) Net sales $ 144,069 $ 115,806 $ 259,875 $ 207,119 $ 134,872 $ 341,991 Nine months ended July 31, 2023 Nine months ended July 31, 2022 Grown Prepared Total Grown Prepared Total Avocados $ 352,858 $ — $ 352,858 $ 538,882 $ — $ 538,882 Tomatoes 45,669 — 45,669 36,331 — 36,331 Papayas 8,193 — 8,193 8,462 — 8,462 Other fresh income 75 — 75 87 — 87 Fresh-cut products — 283,588 283,588 — 316,804 316,804 Guacamole — 52,601 52,601 — 56,976 56,976 Salsa — 756 756 — 1,349 1,349 Total gross sales 406,795 336,945 743,740 583,762 375,129 958,891 Less sales allowances (3,510) (8,296) (11,806) (2,591) (7,240) (9,831) Less inter-company eliminations (1,166) — (1,166) (1,559) — (1,559) Net sales $ 402,119 $ 328,649 $ 730,768 $ 579,612 $ 367,889 $ 947,501 Interco. Grown Prepared Elimins. Total (All amounts are presented in thousands) Three months ended July 31, 2023 Net sales $ 144,543 $ 115,806 $ (474) $ 259,875 Cost of sales 123,190 112,134 (474) 234,850 Gross profit $ 21,353 $ 3,672 $ — $ 25,025 Three months ended July 31, 2022 Net sales $ 207,589 $ 134,872 $ (470) $ 341,991 Cost of sales 195,818 128,129 (470) 323,477 Gross profit $ 11,771 $ 6,743 $ — $ 18,514 Interco. Grown Prepared Elimins. Total (All amounts are presented in thousands) Nine months ended July 31, 2023 Net sales $ 403,285 $ 328,649 $ (1,166) $ 730,768 Cost of sales 359,852 317,588 (1,166) 676,274 Gross profit $ 43,433 $ 11,061 $ — $ 54,494 Nine months ended July 31, 2022 Net sales $ 581,171 $ 367,889 $ (1,559) $ 947,501 Cost of sales 539,577 355,999 (1,559) 894,017 Gross profit $ 41,594 $ 11,890 $ — $ 53,484 For the three months ended July 31, 2023 and 2022, intercompany sales and cost of sales of $0.5 million between Grown products and Prepared products were eliminated. For the nine months ended July 31, 2023 and 2022, intercompany sales and cost of sales of $1.2 million and $1.6 million between Grown products and Prepared products were eliminated. Sales to customers outside the U.S. were approximately $8.6 million, and $6.1 million for the three months ended July 31, 2023 and 2022. Sales to customers outside the U.S. were approximately $24.1 million, and $21.5 million for the nine months ended July 31, 2023 and 2022. Our foreign operations in Mexico are subject to exchange rate fluctuations and foreign currency transaction costs. The functional currency of our foreign subsidiaries in Mexico is the United States dollar (U.S. dollar). As a result, monetary assets and liabilities are translated into U.S. dollars at exchange rates as of the balance sheet date and non-monetary assets, liabilities and equity are translated at historical rates. Sales and expenses are translated using a weighted-average exchange rate for the period. Gains and losses resulting from those remeasurements and foreign currency transactions are recognized within cost of sales. We recognized foreign currency remeasurement gains in the current quarter. These gains were due primarily to certain long-term net peso receivables. Foreign currency remeasurement gains, net of losses, for the three and nine months ended July 31, 2023 were $2.0 million and $4.4 million respectively. Foreign currency remeasurement losses, net of gains, for the three and nine months ended July 31, 2022 were $0.4 million and $1.3 million respectively. The net carrying value of long-lived assets attributed to geographic areas as of July 31, 2023 and October 31, 2022, are as follows (in thousands): United States Mexico Consolidated July 31, 2023 $ 77,760 $ 36,464 $ 114,224 October 31, 2022 $ 77,208 $ 36,102 $ 113,310

Inventories

Inventories	9 Months Ended
Inventories	Jul. 31, 2023
Inventories
Inventories	3. Inventories Inventories consist of the following (in thousands): July 31, October 31, 2023 2022 Fresh fruit $ 13,865 $ 16,938 Packing supplies and ingredients 14,036 14,176 Finished prepared foods 10,977 7,716 Total $ 38,878 $ 38,830 Inventories are stated at the lower of cost or net realizable value. We periodically review the value of items in inventory and record any necessary write downs of inventory based on our assessment of market conditions. Inventory includes reserves of million in slow moving inventories as of July 31, 2023 and October 31, 2022.

Related-Party Transactions

Related-Party Transactions	9 Months Ended
Related-Party Transactions	Jul. 31, 2023
Related-Party Transactions
Related-Party Transactions	4. Related party transactions Board of Directors Certain members of our Board of Directors market California avocados through Calavo pursuant to marketing agreements substantially similar to the marketing agreements that we enter into with other growers. For the three months ended July 31, 2023 and 2022, the aggregate amount of avocados procured from entities owned or controlled by members of our Board of Directors was $2.2 million and $5.7 million. For the nine months ended July 31, 2023 and 2022, the aggregate amount of avocados procured from entities owned or controlled by members of our Board of Directors was $2.3 million and $7.3 million. Amounts payable to these Board members were $0.8 million as of July 31, 2023. We did not have any amounts payable to these Board members as of October 31, 2022. For the three and nine months ended July 31, 2023, we have procured $1.7 million of avocados from entities affiliated with our Chief Executive Officer. Agricola Don Memo, S.A. de C.V. (“Don Memo”) Calavo and Agricola Belher (“Belher”) have an equal one -half ownership interest in Don Memo. Pursuant to a management service agreement, Belher, through its officers and employees, has day-to-day power and authority to manage the operations. As of July 31, 2023, and October 31, 2022, we had an investment of $3.4 million and $3.8 million, representing Calavo’s 50% ownership in Don Memo, which was included as an investment in unconsolidated entities on our balance sheet. We make advances to Don Memo for operating purposes, provide additional advances as shipments are made during the season, and return the proceeds from tomato sales under our marketing program to Don Memo, net of our commission and aforementioned advances. For the three and nine months ended July 31, 2023, we advanced $0.2 million and $4.1 million of preseason advances to Don Memo, respectively. As of July 31, 2023 and October 31, 2022, we had outstanding advances of million secured by certain property and equipment of Don Memo. This infrastructure loan accrues interest at . The total outstanding infrastructure loan balance at July 31, 2023 and at October 31, 2022, was million. This infrastructure loan agreement will mature in fiscal 2024. During the three months ended July 31, 2023 and 2022, we incurred to our purchase consignment agreement. During the nine months ended July 31, 2023 and 2022, we incurred $13.0 million and $7.1 million of cost of sales to Don Memo pursuant to our purchase consignment agreement. Belher We make advances to Belher for operating purposes, provide additional advances as shipments are made during the season, and return the proceeds from tomato sales under our marketing program to Belher, net of our commission and aforementioned advances. We had grower advances due from Belher totaling $5.2 million and $4.5 million as of July 31, 2023 and October 31, 2022, which are netted against the grower payable. In addition, we had infrastructure advances due from Belher of million as of October 31, 2022. These infrastructure advances were recorded as a receivable in prepaid and other current assets as of October 31, 2022. In July 2021, we made a bridge loan of million to Belher. This loan is secured by certain farmland in Mexico and accrues interest at million on July 31, 2024. As part of this amended loan agreement, we can withhold payments on both the infrastructure advances and the bridge loan through the netting against the grower payable due to Belher. The total outstanding bridge loan balance at July 31, 2023, was million, which is included in prepaids and other current assets. The total outstanding bridge loan balance at October 31, 2022, was $2.6 million ( $0.9 million is included in prepaids and other current assets and $1.7 million in other assets). Avocados de Jalisco, S.A.P.I. de C.V. (“Avocados de Jalisco”) In August 2015, we entered into a Shareholder’s Agreement with various Mexican partners and created Avocados de Jalisco. Avocados de Jalisco is a Mexican corporation created to engage in procuring, packing and selling avocados. As of July 31, 2023, this entity was approximately owned by Calavo and was consolidated in our financial statements. Avocados de Jalisco built a packinghouse located in Jalisco, Mexico, which began operations in June of 2017. During the three months ended July 31, 2023 and 2022 we purchased approximately

Other assets and Intangibles

Other assets and Intangibles	9 Months Ended
Other assets and Intangibles	Jul. 31, 2023
Other assets and Intangibles
Other assets and Intangibles	5. Other assets and Intangibles Other assets consist of the following (in thousands): July 31, October 31, 2023 2022 Mexican IVA (i.e. value-added) taxes receivable, net (see Note 10) $ 54,108 $ 43,625 Infrastructure advances 1,641 1,241 Bridge loan to Agricola Belher — 1,700 Other 977 604 Total $ 56,726 $ 47,170 Intangible assets consist of the following (in thousands): July 31, 2023 October 31, 2022 Weighted- Gross Net Gross Net Average Carrying Accum. Book Carrying Accum. Book Useful Life Value Amortization Value Value Amortization Value Customer list/relationships 8 years $ 17,340 $ (12,411) $ 4,929 $ 17,340 $ (11,373) $ 5,967 Trade names 8 years 4,060 (3,190) 870 4,060 (3,100) 960 Trade secrets/recipes 9 years 630 (630) — 630 (626) 4 Brand name intangibles indefinite 275 — 275 275 — 275 Intangibles, net $ 22,305 $ (16,231) $ 6,074 $ 22,305 $ (15,099) $ 7,206 We anticipate recording amortization expense of $0.4 million for the remainder of fiscal 2023, $1.5 million for fiscal year 2024, $1.5 million for fiscal year 2025, $1.5 million for fiscal year 2026, and $0.9 million thereafter.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
Stock-Based Compensation	Jul. 31, 2023
Stock-Based Compensation
Stock-Based Compensation	6. Stock-Based Compensation In April 2011, our shareholders approved the Calavo Growers, Inc. 2011 Management Incentive Plan (the “2011 Plan”). All directors, officers, employees and consultants (including prospective directors, officers, employees and consultants) of Calavo and its subsidiaries are eligible to receive awards under the 2011 Plan. Shares were issuable under the 2011 Plan through December 2020. On April 21, 2021, the shareholders of Calavo approved the Calavo Growers, Inc. 2020 Equity Incentive Plan (the “2020 Plan”). This is a Restricted Stock Awards (RSAs) On November 3, 2022, our former Chief Executive Officer (CEO) entered into an amendment to his employment agreement, which changed $100,000 of his guaranteed STIP cash bonus for fiscal 2022 to $100,000 worth of unrestricted Calavo common stock. On December 22, 2022, our CEO was granted 3,321 shares of unrestricted common stock. The closing share price of our common stock at the grant date was $30.12 . On December 1, 2022, our 10 directors were granted 3,478 restricted shares each (for a total of 34,780 shares). These shares have full voting rights and participate in dividends as if unrestricted. The closing share price of our stock on such grant date was . Two directors did not seek reelection in April of 2023, and, consequently, shares will vest and become unrestricted subject to the continued service of the director. The total recognized stock-based compensation expense for these grants was million for the three months ended July 31, 2023. The total recognized stock-based compensation expense for these grants was million for the nine months ended July 31, 2023. On March 7, 2023, our former CEO was terminated. As part of his Separation Agreement, the remaining restricted shares that were granted as part of his original employment agreement were immediately vested. The total stock-based compensation expense recognized was The total recognized stock-based compensation expense for restricted stock awards was $0.2 million and $0.4 million for the three months ended July 31, 2023 and 2022, respectively. The total recognized stock-based compensation expense for restricted stock awards was $1.9 million and $1.8 million for the nine months ended July 31, 2023 and 2022, respectively. As of July 31, 2023, there was $0.3 million of unrecognized stock-based compensation costs related to non-vested RSAs, which the Company expects to recognize over a weighted-average period of 0.3 years. A combined summary of restricted stock award activity, related to our 2011 and 2020 Plans, is as follows (in thousands, except for per share amounts): Weighted-Average Aggregate Number of Shares Grant Price Intrinsic Value Outstanding at April 30, 2023 40 $ 35.54 Vested (6) $ 34.51 Forfeited (4) $ 36.81 Outstanding at July 31, 2023 30 $ 35.38 $ 1,118 Weighted-Average Aggregate Number of Shares Grant Price Intrinsic Value Outstanding at October 31, 2022 67 $ 45.01 Granted 38 $ 34.13 Vested (71) $ 41.85 Forfeited (4) $ 36.81 Outstanding at July 31, 2023 30 $ 35.38 $ 1,118 Restricted Stock Units (RSUs) and Performance Restricted Stock Units (PRSUs) On December 1, 2022, we issued RSUs and PRSUs for officers and other members of management as part of our long-term incentive plan. The RSUs are time-based and vest annually in equal amounts over a three-year period. The PRSUs are based on three-year cumulative performance targets of net sales, adjusted EBITDA and return on invested capital and vest entirely at the third anniversary. We granted 66,325 RSUs and 66,325 PRSUs at a grant price of $34.51 . On March 7, 2023, our former CEO was terminated. As part of his Separation Agreement, PRSUs immediately vested. The accelerated stock-based compensation expense recognized was million for the nine months ended July 31, 2023. With his termination RSUs immediately vested. The accelerated stock-based compensation expense recognized was million for the three and nine months ended July 31, 2023. With these departures RSUs were forfeited. The total recognized stock-based compensation expense for RSUs was $0.4 million and $0.3 million for the three months ended July 31, 2023 and 2022, respectively. The total recognized stock-based compensation expense for RSUs was $1.3 million and $0.3 million for the nine months ended July 31, 2023 and 2022, respectively. As of July 31, 2023, there was $1.5 million of unrecognized stock-based compensation costs related to non-vested RSUs, which the Company expects to recognize over a weighted-average period of 2.0 years. The summary of RSU activity, related to our 2020 Plan, is as follows (in thousands, except for per share amounts): Number of Shares Weighted-Average Aggregate Represented Grant Price Intrinsic Value Outstanding at April 30, 2023 84 $ 36.65 Granted 2 $ 34.46 Vested (13) $ 36.37 Forfeited (18) $ 36.18 Outstanding at July 31, 2023 55 $ 35.36 $ 2,064 Number of Shares Weighted-Average Aggregate Represented Grant Price Intrinsic Value Outstanding at October 31, 2022 52 $ 39.17 Granted 68 $ 34.46 Vested (32) $ 39.25 Forfeited (33) $ 35.79 Outstanding at July 31, 2023 55 $ 35.36 $ 2,064 At the end of each reporting period, the Company will adjust compensation expense for the PRSUs based on its best estimate of attainment of the specified performance targets. The cumulative effect on current and prior periods of a change in the estimated number of PRSUs that are expected to be earned will be recognized as an adjustment in the period of the adjustment. As of July 31, 2023, the Company determined that it was not probable that any of the PRSUs for the 2022 three-year cumulative performance grant would vest and that less than 100% of the PRSUs for the 2023 three-year cumulative performance grant would vest. The Company recorded a net reversal of approximately million of previously amortized stock-based compensation for the three months ended July 31, 2023, for all PRSUs. The total recognized stock-based compensation expense for PRSUs was years. The summary of PRSU activity, related to our 2020 Plan, is as follows (in thousands, except for per share amounts): Number of Shares Weighted-Average Aggregate Represented Grant Price Intrinsic Value Outstanding at April 30, 2023 72 $ 35.25 Forfeited (21) $ 35.35 Adjusted for performance factor (40) $ 35.40 Outstanding at July 31, 2023 11 $ 34.51 $ 411 Number of Shares Weighted-Average Aggregate Represented Grant Price Intrinsic Value Outstanding at October 31, 2022 31 $ 37.49 Granted 66 $ 34.51 Vested (14) $ 35.65 Forfeited (32) $ 35.35 Adjusted for performance factor (40) $ 35.40 Outstanding at July 31, 2023 11 $ 34.51 $ 411 Stock Options Stock options are granted with exercise prices of not less than the fair market value at grant date, generally vest over one two after the vest date. We settle stock option exercises with newly issued shares of common stock. We measure compensation cost for all stock-based awards at fair value on the date of grant and recognize compensation expense in our consolidated statements of operations over the service period that the awards are expected to vest. We measure the fair value of our stock-based compensation awards on the date of grant. (i) 200,000 shares subject to the option shall vest and become exercisable on March 10, 2024; (ii) 100,000 shares subject to the option shall vest and become exercisable (1) if the closing price per share of the Company’s common stock, as reported by The Nasdaq Stock Market, is greater than or equal to $50.00 (the “Target Share Price”), and (2) the average closing price per share of the Company’s common stock for any thirty (30) day period following achievement of the Target Share Price (the “Thirty-day Average Share Price”), is greater than or equal to $50.00, as reported by Nasdaq; (iii) 100,000 shares subject to the option shall vest and become exercisable (1) upon achievement of the Target Share Price, and (2) the Thirty-day Average Share Price is greater than or equal to $60.00, as reported by Nasdaq; and (iv) 100,000 shares subject to the option shall vest and become exercisable (1) upon achievement of the Target Share Price, and (2) the Thirty-day Average Share Price is greater than or equal to $70.00, as reported by Nasdaq; provided, however, that satisfaction of each Milestone is subject to our newly appointed CEO continuing as the President and CEO of the Company through each vesting event; and provided further that regardless of when he achieves the Milestones set forth in subsections (ii) through (iv) above, the applicable tranche shall only vest on or after March 10, 2024. We measure the fair value of our stock option awards on the date of grant. The following assumptions were used in the estimated grant date fair value calculations for stock options: March 2023 Risk-free interest rate 4.31 % Expected volatility 35.0 % Dividend yield 1.6 % Expected life (years) 3.0 The expected stock price volatility rates were based on the historical volatility of our common stock. The risk free interest rate was based on the U.S. Treasury yield curve in effect at the time of grant for periods approximating the expected life of the option. The expected life represents the average period of time that options granted are expected to be outstanding, as calculated using the simplified method described in the Securities and Exchange Commission’s Staff Accounting Bulletin No. 107. The Black-Scholes-Merton and lattice-based option valuation models were developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. Because options held by our directors and employees have characteristics significantly different from those of traded options, in our opinion, the existing models do not necessarily provide a reliable single measure of the fair value of these options. For the market award, we determined both the fair value and derived service period using a Monte Carlo simulation model on the closing date. Based on the above details and assumptions, we valued these options at million. We will amortize this amount on a straight-line basis over the derived service period. The total recognized stock-based compensation expense for options was $0.7 million and $0.8 million for the three months and nine months ended July 31, 2023, respectively. As of July 31, 2023, there was $1.1 million of unrecognized stock-based compensation costs related to options, which the Company expects to recognize over a weighted-average period of 0.7 years. There was no stock option activity for the three months ended July 31, 2023. A summary of stock option activity, related to our 2011 and 2020 Plans, is as follows (in thousands, except for weighted-average exercise price): Weighted-Average Aggregate Exercise Intrinsic Number of Shares Price Value Outstanding at October 31, 2022 27 $ 44.67 Exercised (2) $ 23.48 Granted 500 $ 24.39 Outstanding at July 31, 2023 525 $ 25.44 $ 6,670 Exercisable at July 31, 2023 15 $ 51.30 $ — As of July 31, 2023, outstanding and exercisable stock options had a weighted-average remaining contractual term of 0.7 years.

Other events

Other events	9 Months Ended
Other events	Jul. 31, 2023
Other events
Other events	7. Other events Dividend payments In November 2022, we announced that we would begin declaring and paying dividends quarterly rather than annually as had been our prior practice. On December 14, 2022, we paid a dividend of $0.2875 per share, or an aggregate of $5.2 million, to shareholders of record on November 16, 2022. million to shareholders of record on June 27, 2023. On September 1, 2023, our board of directors declared a cash dividend of $0.10 per share. This dividend will be paid on October 11, 2023, to shareholders of record on September 27, 2023. Litigation From time to time, we are involved in litigation arising in the ordinary course of our business that we do not believe will have a material adverse impact on our financial statements. Mexico tax audits We conduct business both domestically and internationally and, as a result, one or more of our subsidiaries files income tax returns in U.S. federal, U.S. state and certain foreign jurisdictions. Accordingly, in the normal course of business, we are subject to examination by taxing authorities, primarily in Mexico and the United States. 2013 Assessment In January 2017, we received preliminary observations from the Servicio de Administracion Tributaria in Mexico (the “SAT”) related to an audit for fiscal year 2013 outlining certain proposed adjustments primarily related to intercompany funding, deductions for services from certain vendors/suppliers and IVA. We provided a written rebuttal to these preliminary observations during our second fiscal quarter of 2017. During the period from our third fiscal quarter of 2017 through our third fiscal quarter of 2018, we attempted to resolve our case with the SAT through the conclusive agreement submitted before PRODECON (Mexican Tax Ombudsman), having several working meetings attended by representatives of the SAT, Calavo de Mexico (“CDM”) and the PRODECON. However, we were unable to materially resolve our case with the SAT through the PRODECON process. As a result, in July 2018, the SAT’s local office in Uruapan issued to CDM a final tax assessment (the “2013 Assessment”) totaling approximately $2.6 billion Mexican pesos (which includes annual adjustments for inflation, and equals approximately $155.2 million USD at July 31, 2023) related to income tax, flat rate business tax, and value added tax, related to this fiscal 2013 tax audit. This amount has been adjusted for inflation as of July 31, 2023 to the amount of $3.08 billion Mexican pesos (approx. $183.9 million USD). Additionally, the tax authorities have determined that we owe our employees profit-sharing liability, totaling approximately $118 million Mexican pesos (approx. $7.0 million USD at July 31, 2023). In August 2018, we filed an Administrative Appeal on the 2013 Assessment, appealing our case to the SAT’s central legal department in Michoacan. On June 25, 2021, we became aware that the Administrative Appeal had been resolved by the SAT against CDM on March 12, 2021, and that we had allegedly failed to timely respond to and challenge the SAT’s notification of such resolution, therefore rendering the 2013 Assessment as definitive. Consequently, the SAT placed liens on the fixed assets of CDM, with a net book value of approximately $26 million USD, and on bank accounts of CDM totaling approximately $1 million USD in order to guaranty the 2013 Assessment. Based on legal counsel from our tax advisory firm, we and our tax advisory firm have concluded that the March notification was not legally communicated. On August 18, 2021, we filed an Administrative Reconsideration (the “Reconsideration”) before the Central Legal Department of the SAT located in Mexico City, asserting that the resolution in March of the Administrative Appeal was wrongly concluded, in particular with respect to the following matters: o Failure to recognize CDM as a “maquiladora” o Considering the Company to have a permanent establishment in Mexico, o Including fruit purchase deposits transferred by the Company to CDM as taxable, o Application of 16% IVA tax to fruit purchase deposits; and o Imposing double-taxation on the fruit purchase transactions On August 20, 2021 we filed an Annulment Suit (the “Annulment Suit”) with the Federal Tax Court, which among other things, strongly contends that the notifications made by the SAT to CDM and its designated advisors of the resolution of the Administrative Appeal in March 2021 were not legally communicated. In addition, the Annulment Suit asserts the same matters central to the Reconsideration, as described above, as wrongly concluded in the resolution of the Administrative Appeal. On September 22, 2021, we had an initial in-person meeting with the SAT in Mexico City to formally present and discuss the Reconsideration. The SAT agreed to review our Reconsideration in more detail; however, on January 3, 2022, the SAT formally rejected our request for the Reconsideration. In response to this rejection, on January 21, 2022, we filed a capital injunction suit (the “Injunction Suit”) with a federal district court seeking to nullify the arguments against the Reconsideration made by the SAT on constitutional grounds. The main purpose of the Injuction Suit was to challenge the SAT’s response issued to the Reconsideration, and with that, to keep the Reconsideration alive until the Injunction Suit is decided. This would allow time to continue the discussions with SAT at the administrative level and would give SAT the legal basis to issue a new resolution. The Injunction Suit represents a further opportunity for a court to analyze this matter from a constitutional perspective. On August 16, 2023, we received notice that the federal district court rejected the Injunction Suit. In so doing, the federal district court did not rule on the substance of the case, stating that the substance of the case will be resolved by the Tax Court through the Annulment Suit. The Company filed an appeal with the federal circuit court on August 30, 2023. On March 10, 2022, we met with the SAT and offered an Administrative Guaranty ( Embargo en Via Administrativa) to secure the 2013 Assessment , which provides the SAT with certain administrative rights to CDM assets in the unlikely event we do not prevail in our actions through the Federal Tax Court. On October 10, 2022, the Tax Court ruled in favor of CDM granting the definitive suspension, accepting the Administrative Guaranty and forcing the SAT to remove all liens placed on CDM fixed assets and bank accounts. These liens were removed in November 2022. The Court also recognized that the While we continue to believe that the 2013 Assessment is completely without merit, and that we will prevail on the Annulment Suit in the Tax Court, we also believe that it is in the best interest of CDM and the Company to settle the 2013 Assessment as quickly as possible. Furthermore, we believe that the above actions taken by CDM will encourage the SAT to agree to reach a settlement. In accordance with our cumulative probability analysis on uncertain tax positions, our settlements made by the SAT in other cases, the 2011 Assessment settlement reached by CDM with the MFM, and the value of CDM assets, we recorded a provision of $11 million, in the third quarter of fiscal 2021, as a discrete item in Income Tax Provision. The provision includes estimated penalties, interest and inflationary adjustments. We believe that this provision remains appropriate as of July 31, 2023 based on our cumulative probability analysis. We incurred

Noncontrolling interest

Noncontrolling interest	9 Months Ended
Noncontrolling interest	Jul. 31, 2023
Noncontrolling interest.
Noncontrolling interest	8. Noncontrolling interest The following table reconciles shareholders’ equity attributable to noncontrolling interest related to Avocados de Jalisco (in thousands). Three months ended Three months ended Avocados de Jalisco noncontrolling interest July 31, 2023 July 31, 2022 Noncontrolling interest, beginning $ 1,323 $ 1,166 Net income attributable to noncontrolling interest of Avocados de Jalisco 82 17 Noncontrolling interest, ending $ 1,405 $ 1,183 Nine months ended Nine months ended Avocados de Jalisco noncontrolling interest July 31, 2023 July 31, 2022 Noncontrolling interest, beginning $ 1,015 $ 1,368 Net income (loss) attributable to noncontrolling interest of Avocados de Jalisco 390 (185) Noncontrolling interest, ending $ 1,405 $ 1,183

Earnings per share

Earnings per share	9 Months Ended
Earnings per share	Jul. 31, 2023
Earnings per share
Earnings per share	9. Earnings per share Basic and diluted net income per share is calculated as follows (data in thousands, except per share data): Three months ended July 31, 2023 2022 Numerator: Net income attributable to Calavo Growers, Inc. $ 6,626 $ 1,300 Denominator: Weighted average shares – Basic 17,756 17,667 Effect of dilutive securities – Restricted stock/units/options 100 102 Weighted average shares – Diluted 17,856 17,769 Net income per share attributable to Calavo Growers, Inc: Basic $ 0.37 $ 0.07 Diluted $ 0.37 $ 0.07 Nine months ended July 31, 2023 2022 Numerator: Net loss attributable to Calavo Growers, Inc. $ (437) $ (2,933) Denominator: Weighted average shares - Basic 17,746 17,661 Effect on dilutive securities – Restricted stock/units/options (1) — — Weighted average shares - Diluted 17,746 17,661 Net loss per share attributable to Calavo Growers, Inc: Basic $ (0.02) $ (0.17) Diluted $ (0.02) $ (0.17) (1) For the nine months ended July 31, 2023 and 2022, approximately 89,000 shares and 65,000 shares of common stock equivalents were excluded in the computation of diluted net loss per share, as the effect would be anti-dilutive given the Company’s net loss for those periods.

Mexican IVA taxes receivable

Mexican IVA taxes receivable	9 Months Ended
Mexican IVA taxes receivable	Jul. 31, 2023
Mexican IVA taxes receivable
Mexican IVA taxes receivable	10. Mexican IVA taxes receivable Included in other assets are tax receivables due from the Mexican government for value-added taxes (“IVA”) paid in advance. CDM is charged IVA by vendors on certain expenditures in Mexico, which, insofar as they relate to the exportation of goods, translate into IVA amounts recoverable from the Mexican government. As of July 31, 2023, and October 31, 2022, CDM IVA receivables totaled $54.1 million (921.7 million Mexican pesos) and $43.6 million (865.4 million Mexican pesos). Historically, CDM received IVA refund payments from the Mexican tax authorities on a timely basis. Beginning in fiscal 2014 and continuing into fiscal 2023, the tax authorities began objecting to refund requests and supporting documentation that had previously been deemed acceptable to process a refund. Additionally, they are also contesting the refunds requested attributable to IVA paid to certain suppliers that allegedly did not fulfill their own tax obligations. We believe these factors and others have contributed to delays in the processing of IVA claims by the Mexican tax authorities. Currently, we are in the process of collecting such balances primarily through regular administrative processes, but these amounts may ultimately need to be recovered through Administrative Appeals and/or other legal means. During the first quarter of fiscal 2017, the tax authorities informed us that their internal opinion, based on the information provided by the local SAT office, considers that CDM is not properly documented relative to its declared tax structure and therefore CDM cannot claim the refundable IVA balance. CDM has strong arguments and supporting documentation to sustain its declared tax structure for IVA and income tax purposes. CDM started an Administrative Appeal for the IVA related to the request of the months of July, August and September of 2015 (the “2015 Appeal”) in order to assert its argument that CDM is properly documented and to therefore change the SAT’s internal assessment. In August 2018, we received a favorable ruling from the SAT’s Legal Administration in Michoacan on the 2015 Appeal indicating that they believe CDM’s legal interpretation of its declared tax structure is indeed accurate. While favorable on this central matter of CDM’s declared tax structure, the ruling, however, still does not recognize the taxpayers right to a full refund for the IVA related to the months of July, August and September 2015. Therefore, in October 2018, CDM filed a substance-over-form Annulment Suit in the Federal Tax Court to recover its full refund for IVA over the subject period. In April 2022, the Tax Court issued the ruling for the months of July, August and September 2015 through which it was declared that the following resolutions were resolved: ● It is recognized that CDM operates as a maquila under the authorization of the Ministry of Finance. ● It is recognized that all bank deposits corresponding to the purchase of avocados on behalf of Calavo Growers Inc. (CGI), are subject to the maquila program and it is not accruable income for purposes of Income Tax nor activities subject to VAT. ● It is recognized that VAT is recoverable, since CDM demonstrated the existence of operations carried under the maquila services. ● Resolved that certain VAT amounts attributed to the purchase of certain packing materials are not recoverable as CDM was not the buyer on record and therefore did not pay for the materials, which approximated $6.9 million pesos (approximately $0.4 million USD). In January 2023 the Federal Tax Court issued a definitive resolution confirming the ruling from April 2022, ordering SAT to refund approximately million USD at July 31, 2023) related to packing materials will not be recoverable. For the nine months ended July 31, 2023, we recognized a reserve of $1.4 million USD for Mexican IVA tax receivables related to certain packing material vendors corresponding to the years 2013 and 2015. This reserve includes the amounts included in the January 2023 ruling as well as other similar receivables that are subject to proceedings in this same Federal Tax Court. In June 2023 we received $2.8 million from the SAT related to Mexican IVA tax receivables corresponding to fiscal year 2013 which was consistent with the January 2023 definitive resolution. Of this amount, $1.7 million was interest and inflation related adjustments. This $1.7 million was netted with expenses related to Mexican tax matters on the statement of operations. We believe that our operations in Mexico are properly documented, and our internationally recognized tax advisors believe that there are legal grounds to prevail in collecting the corresponding IVA amounts. With assistance from our internationally recognized tax advisory firm, as of July 31, 2023, CDM has filed Administrative Appeals for months for which IVA refunds have been denied by the SAT, and will continue filing such appeals for any months for which refunds are denied in the future. Therefore, it is probable that the Mexican tax authorities will ultimately authorize the refund of the remaining IVA amounts.

Credit Facility

Credit Facility	9 Months Ended
Credit Facility	Jul. 31, 2023
Credit Facility
Credit Facility	11. Credit Facility On June 26, 2023, Calavo and certain subsidiaries entered into a credit agreement (the “Credit Agreement”) by and among, Calavo, certain subsidiaries of Calavo as guarantors, and Wells Fargo Bank, National Association, as agent and lender (“Agent”). The Credit Agreement provides for a revolving credit facility of up to transaction fees and expenses, and following the Closing Date (June 26, 2023) may be used for working capital and other general corporate purposes. For a period of one year following the Closing Date, Calavo may utilize the proceeds of the Term Loan to pay a certain percentage of the costs of certain equipment purchased by Calavo. Borrowings of the Revolving Loans under the Credit Agreement are asset based and are subject to a borrowing base calculation that includes a certain percentage of eligible accounts receivable, inventory and equipment of Calavo, less any reserves implemented by Agent in its permitted discretion; provided that the equipment based portion of such borrowing base calculation will reduce monthly following the Closing Date. Borrowings under the Credit Agreement bear interest at a rate per annum equal to an applicable margin, plus, at Calavo’s option, either a base rate or a secured overnight financing rate (“SOFR”) term rate (which includes a spread adjustment of The Credit Agreement contains negative covenants that, among other things, limit Calavo’s ability to: incur indebtedness; grant liens on its assets; enter into certain investments; consummate fundamental change transactions; engage in mergers or acquisitions or dispose of assets; enter into certain transactions with affiliates; make changes to its fiscal year; enter into certain restrictive agreements; and make certain restricted payments (including for dividends). Each of these limitations are subject to various conditions. The Credit Agreement also contains a springing fixed charge coverage ratio financial covenant that is tested if the amount of the Revolving Loans available for Calavo to borrow under the New Credit Facility is less than The Credit Agreement also contains certain affirmative covenants and customary events of default provisions, including, subject to thresholds and grace periods, among others, payment default, covenant default, cross default to other material indebtedness, and judgment default. As of July 31, 2023, we were in compliance with the financial covenants, and we expect to remain in compliance. As of July 31, 2023, approximately $41.7 million was available for borrowing, based on our borrowing base calculation discussed above. The weighted-average interest rate under the Credit Facility was 6.7% at July 31, 2023. Under the New Credit Facility, we had $36.8 million and $3.5 million outstanding related to the Revolving Loans and Term Loan, respectively, as of July 31, 2023. In connection with the New Credit Facility, we are in the process of obtaining letters of credit related to our workers compensation policies to satisfy certain collateral requirements. While this is in process, we have recorded $0.8 million and $3.0 million as restricted cash and prepaid and other current assets, respectively, on the consolidated balance sheet as of July 31, 2023.

Description of the business (Po

Description of the business (Policies)	9 Months Ended
Description of the business (Policies)	Jul. 31, 2023
Description of the business
Business	Business Calavo Growers, Inc. (referred to in this report as “Calavo”, the “Company”, “we’, “us” or “our”), is a global leader in the avocado industry and a provider of value-added fresh food. Our expertise in marketing and distributing avocados, prepared avocados, and other perishable foods allows us to deliver a wide array of fresh and prepared food products to retail grocery, foodservice, club stores, mass merchandisers, food distributors and wholesalers on a worldwide basis. We procure avocados from California, Mexico and other growing regions around the world. Through our various operating facilities, we (i) sort, pack, and/or ripen avocados, tomatoes and/or Hawaiian grown papayas, (ii) create, process and package a portfolio of healthy fresh foods including fresh-cut fruit and vegetables, and prepared foods and (iii) process and package guacamole and salsa. We distribute our products both domestically and internationally and we report our operations in different business segments: Grown and Prepared.
Basis of Presentation	Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of adjustments of a normal recurring nature necessary to present fairly the Company’s financial position, results of operations and cash flows. The results of operations for interim periods are not necessarily indicative of the results that may be expected for a full year. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended

Information regarding our ope_2

Information regarding our operations in different segments (Tables)	9 Months Ended
	Jul. 31, 2023
Information regarding our operations in different segments
Schedule of sales by product and segment	Three months ended July 31, 2023 Three months ended July 31, 2022 Grown Prepared Total Grown Prepared Total Avocados $ 127,328 $ — $ 127,328 $ 196,443 $ — $ 196,443 Tomatoes 15,662 — 15,662 8,990 — 8,990 Papayas 2,338 — 2,338 2,679 — 2,679 Other fresh income 10 — 10 54 — 54 Fresh-cut products — 101,150 101,150 — 117,541 117,541 Guacamole — 18,049 18,049 — 19,606 19,606 Salsa — 49 49 — 524 524 Total gross sales 145,338 119,248 264,586 208,166 137,671 345,837 Less sales allowances (795) (3,442) (4,237) (577) (2,799) (3,376) Less inter-company eliminations (474) — (474) (470) — (470) Net sales $ 144,069 $ 115,806 $ 259,875 $ 207,119 $ 134,872 $ 341,991 Nine months ended July 31, 2023 Nine months ended July 31, 2022 Grown Prepared Total Grown Prepared Total Avocados $ 352,858 $ — $ 352,858 $ 538,882 $ — $ 538,882 Tomatoes 45,669 — 45,669 36,331 — 36,331 Papayas 8,193 — 8,193 8,462 — 8,462 Other fresh income 75 — 75 87 — 87 Fresh-cut products — 283,588 283,588 — 316,804 316,804 Guacamole — 52,601 52,601 — 56,976 56,976 Salsa — 756 756 — 1,349 1,349 Total gross sales 406,795 336,945 743,740 583,762 375,129 958,891 Less sales allowances (3,510) (8,296) (11,806) (2,591) (7,240) (9,831) Less inter-company eliminations (1,166) — (1,166) (1,559) — (1,559) Net sales $ 402,119 $ 328,649 $ 730,768 $ 579,612 $ 367,889 $ 947,501
Schedule of segment gross margin	Interco. Grown Prepared Elimins. Total (All amounts are presented in thousands) Three months ended July 31, 2023 Net sales $ 144,543 $ 115,806 $ (474) $ 259,875 Cost of sales 123,190 112,134 (474) 234,850 Gross profit $ 21,353 $ 3,672 $ — $ 25,025 Three months ended July 31, 2022 Net sales $ 207,589 $ 134,872 $ (470) $ 341,991 Cost of sales 195,818 128,129 (470) 323,477 Gross profit $ 11,771 $ 6,743 $ — $ 18,514 Interco. Grown Prepared Elimins. Total (All amounts are presented in thousands) Nine months ended July 31, 2023 Net sales $ 403,285 $ 328,649 $ (1,166) $ 730,768 Cost of sales 359,852 317,588 (1,166) 676,274 Gross profit $ 43,433 $ 11,061 $ — $ 54,494 Nine months ended July 31, 2022 Net sales $ 581,171 $ 367,889 $ (1,559) $ 947,501 Cost of sales 539,577 355,999 (1,559) 894,017 Gross profit $ 41,594 $ 11,890 $ — $ 53,484
Schedule of long-lived assets by geographic areas	The net carrying value of long-lived assets attributed to geographic areas as of July 31, 2023 and October 31, 2022, are as follows (in thousands): United States Mexico Consolidated July 31, 2023 $ 77,760 $ 36,464 $ 114,224 October 31, 2022 $ 77,208 $ 36,102 $ 113,310

Inventories (Tables)

Inventories (Tables)	9 Months Ended
Inventories (Tables)	Jul. 31, 2023
Inventories
Schedule of Inventories	Inventories consist of the following (in thousands): July 31, October 31, 2023 2022 Fresh fruit $ 13,865 $ 16,938 Packing supplies and ingredients 14,036 14,176 Finished prepared foods 10,977 7,716 Total $ 38,878 $ 38,830

Other assets and Intangibles (T

Other assets and Intangibles (Tables)	9 Months Ended
Other assets and Intangibles (Tables)	Jul. 31, 2023
Other assets and Intangibles
Schedule of Other Assets	Other assets consist of the following (in thousands): July 31, October 31, 2023 2022 Mexican IVA (i.e. value-added) taxes receivable, net (see Note 10) $ 54,108 $ 43,625 Infrastructure advances 1,641 1,241 Bridge loan to Agricola Belher — 1,700 Other 977 604 Total $ 56,726 $ 47,170
Schedule of Intangible Assets	Intangible assets consist of the following (in thousands): July 31, 2023 October 31, 2022 Weighted- Gross Net Gross Net Average Carrying Accum. Book Carrying Accum. Book Useful Life Value Amortization Value Value Amortization Value Customer list/relationships 8 years $ 17,340 $ (12,411) $ 4,929 $ 17,340 $ (11,373) $ 5,967 Trade names 8 years 4,060 (3,190) 870 4,060 (3,100) 960 Trade secrets/recipes 9 years 630 (630) — 630 (626) 4 Brand name intangibles indefinite 275 — 275 275 — 275 Intangibles, net $ 22,305 $ (16,231) $ 6,074 $ 22,305 $ (15,099) $ 7,206

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
Stock-Based Compensation (Tables)	Jul. 31, 2023
Stock-Based Compensation
Summary of restricted stock award activity	A combined summary of restricted stock award activity, related to our 2011 and 2020 Plans, is as follows (in thousands, except for per share amounts): Weighted-Average Aggregate Number of Shares Grant Price Intrinsic Value Outstanding at April 30, 2023 40 $ 35.54 Vested (6) $ 34.51 Forfeited (4) $ 36.81 Outstanding at July 31, 2023 30 $ 35.38 $ 1,118 Weighted-Average Aggregate Number of Shares Grant Price Intrinsic Value Outstanding at October 31, 2022 67 $ 45.01 Granted 38 $ 34.13 Vested (71) $ 41.85 Forfeited (4) $ 36.81 Outstanding at July 31, 2023 30 $ 35.38 $ 1,118
Summary of RSU activity	The summary of RSU activity, related to our 2020 Plan, is as follows (in thousands, except for per share amounts): Number of Shares Weighted-Average Aggregate Represented Grant Price Intrinsic Value Outstanding at April 30, 2023 84 $ 36.65 Granted 2 $ 34.46 Vested (13) $ 36.37 Forfeited (18) $ 36.18 Outstanding at July 31, 2023 55 $ 35.36 $ 2,064 Number of Shares Weighted-Average Aggregate Represented Grant Price Intrinsic Value Outstanding at October 31, 2022 52 $ 39.17 Granted 68 $ 34.46 Vested (32) $ 39.25 Forfeited (33) $ 35.79 Outstanding at July 31, 2023 55 $ 35.36 $ 2,064
Summary of PRSU activity	Number of Shares Weighted-Average Aggregate Represented Grant Price Intrinsic Value Outstanding at April 30, 2023 72 $ 35.25 Forfeited (21) $ 35.35 Adjusted for performance factor (40) $ 35.40 Outstanding at July 31, 2023 11 $ 34.51 $ 411 Number of Shares Weighted-Average Aggregate Represented Grant Price Intrinsic Value Outstanding at October 31, 2022 31 $ 37.49 Granted 66 $ 34.51 Vested (14) $ 35.65 Forfeited (32) $ 35.35 Adjusted for performance factor (40) $ 35.40 Outstanding at July 31, 2023 11 $ 34.51 $ 411
Assumptions for fair value stock options	March 2023 Risk-free interest rate 4.31 % Expected volatility 35.0 % Dividend yield 1.6 % Expected life (years) 3.0
Summary of stock option activity	There was no stock option activity for the three months ended July 31, 2023. A summary of stock option activity, related to our 2011 and 2020 Plans, is as follows (in thousands, except for weighted-average exercise price): Weighted-Average Aggregate Exercise Intrinsic Number of Shares Price Value Outstanding at October 31, 2022 27 $ 44.67 Exercised (2) $ 23.48 Granted 500 $ 24.39 Outstanding at July 31, 2023 525 $ 25.44 $ 6,670 Exercisable at July 31, 2023 15 $ 51.30 $ —

Noncontrolling interest (Tables

Noncontrolling interest (Tables)	9 Months Ended
Noncontrolling interest (Tables)	Jul. 31, 2023
Noncontrolling interest.
Reconciliation of shareholders' equity attributable to noncontrolling interest	The following table reconciles shareholders’ equity attributable to noncontrolling interest related to Avocados de Jalisco (in thousands). Three months ended Three months ended Avocados de Jalisco noncontrolling interest July 31, 2023 July 31, 2022 Noncontrolling interest, beginning $ 1,323 $ 1,166 Net income attributable to noncontrolling interest of Avocados de Jalisco 82 17 Noncontrolling interest, ending $ 1,405 $ 1,183 Nine months ended Nine months ended Avocados de Jalisco noncontrolling interest July 31, 2023 July 31, 2022 Noncontrolling interest, beginning $ 1,015 $ 1,368 Net income (loss) attributable to noncontrolling interest of Avocados de Jalisco 390 (185) Noncontrolling interest, ending $ 1,405 $ 1,183

Earnings per share (Tables)

Earnings per share (Tables)	9 Months Ended
Earnings per share (Tables)	Jul. 31, 2023
Earnings per share
Schedule of basic and diluted net income per share	Basic and diluted net income per share is calculated as follows (data in thousands, except per share data): Three months ended July 31, 2023 2022 Numerator: Net income attributable to Calavo Growers, Inc. $ 6,626 $ 1,300 Denominator: Weighted average shares – Basic 17,756 17,667 Effect of dilutive securities – Restricted stock/units/options 100 102 Weighted average shares – Diluted 17,856 17,769 Net income per share attributable to Calavo Growers, Inc: Basic $ 0.37 $ 0.07 Diluted $ 0.37 $ 0.07 Nine months ended July 31, 2023 2022 Numerator: Net loss attributable to Calavo Growers, Inc. $ (437) $ (2,933) Denominator: Weighted average shares - Basic 17,746 17,661 Effect on dilutive securities – Restricted stock/units/options (1) — — Weighted average shares - Diluted 17,746 17,661 Net loss per share attributable to Calavo Growers, Inc: Basic $ (0.02) $ (0.17) Diluted $ (0.02) $ (0.17) (1) For the nine months ended July 31, 2023 and 2022, approximately 89,000 shares and 65,000 shares of common stock equivalents were excluded in the computation of diluted net loss per share, as the effect would be anti-dilutive given the Company’s net loss for those periods.

Description of the business (De

Description of the business (Details)	9 Months Ended
Description of the business (Details)	Jul. 31, 2023 segment
Description of the business
Number of reportable segments	2

Information regarding our ope_3

Information regarding our operations in different segments - Product (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2023 USD ($)	Jul. 31, 2022 USD ($)	Jul. 31, 2023 USD ($) segment	Jul. 31, 2022 USD ($)
Segment reporting information
Number of reportable segments \| segment			2
Net sales	$ 259,875	$ 341,991	$ 730,768	$ 947,501
Grown
Segment reporting information
Net sales	144,069	207,119	402,119	579,612
Prepared
Segment reporting information
Net sales	115,806	134,872	328,649	367,889
Operating segments
Segment reporting information
Total gross sales	264,586	345,837	743,740	958,891
Less sales allowances	(4,237)	(3,376)	(11,806)	(9,831)
Operating segments \| Avocados
Segment reporting information
Total gross sales	127,328	196,443	352,858	538,882
Operating segments \| Tomatoes
Segment reporting information
Total gross sales	15,662	8,990	45,669	36,331
Operating segments \| Papayas
Segment reporting information
Total gross sales	2,338	2,679	8,193	8,462
Operating segments \| Other fresh income
Segment reporting information
Total gross sales	10	54	75	87
Operating segments \| Fresh-cut products
Segment reporting information
Total gross sales	101,150	117,541	283,588	316,804
Operating segments \| Guacamole
Segment reporting information
Total gross sales	18,049	19,606	52,601	56,976
Operating segments \| Salsa
Segment reporting information
Total gross sales	49	524	756	1,349
Operating segments \| Grown
Segment reporting information
Total gross sales	145,338	208,166	406,795	583,762
Less sales allowances	(795)	(577)	(3,510)	(2,591)
Net sales	144,543	207,589	403,285	581,171
Operating segments \| Grown \| Avocados
Segment reporting information
Total gross sales	127,328	196,443	352,858	538,882
Operating segments \| Grown \| Tomatoes
Segment reporting information
Total gross sales	15,662	8,990	45,669	36,331
Operating segments \| Grown \| Papayas
Segment reporting information
Total gross sales	2,338	2,679	8,193	8,462
Operating segments \| Grown \| Other fresh income
Segment reporting information
Total gross sales	10	54	75	87
Operating segments \| Prepared
Segment reporting information
Total gross sales	119,248	137,671	336,945	375,129
Less sales allowances	(3,442)	(2,799)	(8,296)	(7,240)
Net sales	115,806	134,872	328,649	367,889
Operating segments \| Prepared \| Fresh-cut products
Segment reporting information
Total gross sales	101,150	117,541	283,588	316,804
Operating segments \| Prepared \| Guacamole
Segment reporting information
Total gross sales	18,049	19,606	52,601	56,976
Operating segments \| Prepared \| Salsa
Segment reporting information
Total gross sales	49	524	756	1,349
Intersegment Eliminations
Segment reporting information
Net sales	(474)	(470)	(1,166)	(1,559)
Intersegment Eliminations \| Grown
Segment reporting information
Net sales	(474)	(470)	(1,166)	(1,559)
Intersegment Eliminations \| Prepared
Segment reporting information
Net sales	$ 0	$ 0	$ 0	$ 0

Information regarding our ope_4

Information regarding our operations in different segments - Gross Profit (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2023	Jul. 31, 2022	Jul. 31, 2023	Jul. 31, 2022
Segment reporting information
Net sales	$ 259,875	$ 341,991	$ 730,768	$ 947,501
Cost of sales	234,850	323,477	676,274	894,017
Gross profit	25,025	18,514	54,494	53,484
Grown
Segment reporting information
Net sales	144,069	207,119	402,119	579,612
Prepared
Segment reporting information
Net sales	115,806	134,872	328,649	367,889
Elimination between Grown products and Prepared products
Segment reporting information
Sales and cost of sales eliminated	500	500	1,200	1,600
Operating segments \| Grown
Segment reporting information
Net sales	144,543	207,589	403,285	581,171
Cost of sales	123,190	195,818	359,852	539,577
Gross profit	21,353	11,771	43,433	41,594
Operating segments \| Prepared
Segment reporting information
Net sales	115,806	134,872	328,649	367,889
Cost of sales	112,134	128,129	317,588	355,999
Gross profit	3,672	6,743	11,061	11,890
Intersegment Eliminations
Segment reporting information
Net sales	(474)	(470)	(1,166)	(1,559)
Cost of sales	(474)	(470)	(1,166)	(1,559)
Intersegment Eliminations \| Grown
Segment reporting information
Net sales	(474)	(470)	(1,166)	(1,559)
Intersegment Eliminations \| Prepared
Segment reporting information
Net sales	$ 0	$ 0	$ 0	$ 0

Information regarding our ope_5

Information regarding our operations in different segments - Geographic (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2023	Jul. 31, 2022	Jul. 31, 2023	Jul. 31, 2022	Oct. 31, 2022
Segment reporting information
Net sales	$ 259,875	$ 341,991	$ 730,768	$ 947,501
Long-lived assets	114,224		114,224		$ 113,310
Foreign currency gains (losses)	2,000	400	4,400	1,300
Outside United States
Segment reporting information
Net sales	8,600	$ 6,100	24,100	$ 21,500
United States
Segment reporting information
Long-lived assets	77,760		77,760		77,208
Mexico
Segment reporting information
Long-lived assets	$ 36,464		$ 36,464		$ 36,102

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jul. 31, 2023	Oct. 31, 2022
Inventories
Fresh fruit	$ 13,865	$ 16,938
Packing supplies and ingredients	14,036	14,176
Finished prepared foods	10,977	7,716
Total inventories	38,878	38,830
Inventory valuation reserves	$ 700	$ 500

Related-Party Transactions (Det

Related-Party Transactions (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		9 Months Ended
	Jul. 31, 2021	Jul. 31, 2023	Jul. 31, 2022	Jul. 31, 2023	Jul. 31, 2022	Oct. 31, 2022	Jan. 31, 2022	Oct. 31, 2020
Related-Party Transactions
Equity securities gain (loss)					$ (5,803)
Investments in unconsolidated entities		$ 3,383		$ 3,383		$ 3,782
Advances to suppliers				2,481	4,945
Advances to suppliers		$ 15,839		15,839		12,430
Non-cash settlement of advance				$ 1,700	1,060
Don Memo \| Agricola Belher \| Don Memo
Related-Party Transactions
Ownership interest (as a percent)		50%		50%
Board of Directors
Related-Party Transactions
Purchases from related parties		$ 2,200	$ 5,700	$ 2,300	7,300
Accounts payable to related parties		800		800		0
Equity method investment-Don Memo
Related-Party Transactions
Purchases from related parties		6,900	3,200	13,000	7,100
Investments in unconsolidated entities		3,400		3,400		3,800
Advances to suppliers		200		4,100
Advances to suppliers		6,000		6,000		7,000
Loan receivable fixed interest rate (as a percent)								7.25%
Commitment amount								$ 2,400
Loan to related parties		$ 1,600		$ 1,600		$ 1,600
Equity method investment-Don Memo \| Don Memo
Related-Party Transactions
Ownership interest (as a percent)		50%		50%		50%
Other related party \| Agricola Belher
Related-Party Transactions
Purchases from related parties		$ 2,100	1,400	$ 16,200	19,000
Amount loaned	$ 3,500
Advances to suppliers		5,200		5,200		$ 4,500
Loan receivable fixed interest rate (as a percent)	10%
Infrastructure advance						900
Loan to related parties						2,600
Expected payment 2022							$ 900
Expected payment 2023							900
Expected payment 2024							$ 1,700
Other related party \| Agricola Belher \| Prepaid expenses and other current assets
Related-Party Transactions
Loan to related parties		1,700		1,700		900
Other related party \| Agricola Belher \| Other long-term assets
Related-Party Transactions
Loan to related parties						$ 1,700
Subsidiary-Avocados de Jalisco
Related-Party Transactions
Purchases from related parties		$ 2,100	$ 1,200	$ 6,400	$ 4,700
Subsidiary-Avocados de Jalisco \| Avocados de Jalisco
Related-Party Transactions
Subsidiary ownership (as a percent)		83%		83%
Current CEO
Related-Party Transactions
Purchases from related parties		$ 1,700		$ 1,700

Other assets and Intangibles -

Other assets and Intangibles - Other (Details) - USD ($) $ in Thousands	Jul. 31, 2023	Oct. 31, 2022
Goodwill and Intangible Assets
Mexican IVA (i.e. value-added) taxes receivable	$ 54,108	$ 43,625
Infrastructure advances	1,641	1,241
Bridge loan to Agricola Belher		1,700
Other	977	604
Total	$ 56,726	$ 47,170

Other assets and Intangibles _2

Other assets and Intangibles - Intangibles (Details) - USD ($) $ in Thousands	Jul. 31, 2023	Oct. 31, 2022
Finite-Lived and Infinite Intangible Assets
Finite and indefinite lived intangible assets gross	$ 22,305	$ 22,305
Accum. Amortization	(16,231)	(15,099)
Intangibles, net	6,074	7,206
Brand name intangibles
Finite-Lived and Infinite Intangible Assets
Gross carrying value and net book value	$ 275	275
Customer list/relationships
Finite-Lived and Infinite Intangible Assets
Weighted-Average Useful Life	8 years
Gross Carrying Value	$ 17,340	17,340
Accum. Amortization	(12,411)	(11,373)
Net Book Value	$ 4,929	5,967
Trade names
Finite-Lived and Infinite Intangible Assets
Weighted-Average Useful Life	8 years
Gross Carrying Value	$ 4,060	4,060
Accum. Amortization	(3,190)	(3,100)
Net Book Value	$ 870	960
Trade secrets/recipes
Finite-Lived and Infinite Intangible Assets
Weighted-Average Useful Life	9 years
Gross Carrying Value	$ 630	630
Accum. Amortization	$ (630)	(626)
Net Book Value		$ 4

Other assets and Intangibles _3

Other assets and Intangibles - Amortization (Details) $ in Millions	Jul. 31, 2023 USD ($)
Goodwill and Intangible Assets
Amortization expense for remainder of fiscal 2023	$ 0.4
Amortization expense for 2024	1.5
Amortization expense for 2025	1.5
Amortization expense for 2026	1.5
Amortization expense thereafter	$ 0.9

Stock-Based Compensation - Gene

Stock-Based Compensation - General (Details) - 2020 Management Incentive Plan	Apr. 21, 2021 shares
Share-based Compensation
Award expiration period	5 years
Common stock shares authorized (in shares)	1,500,000

Stock-Based Compensation - Non-

Stock-Based Compensation - Non-options (Details) - USD ($)					1 Months Ended		3 Months Ended		9 Months Ended
Stock-Based Compensation - Non-options (Details) - USD ($)	Mar. 07, 2023	Dec. 22, 2022	Dec. 01, 2022	Nov. 03, 2022	Jun. 30, 2023	Apr. 30, 2023	Jul. 31, 2023	Jul. 31, 2022	Jul. 31, 2023	Jul. 31, 2022
Restricted stock
Share-based Compensation
Stock closing price awarded (in dollars per share)									$ 34.13
Stock-based compensation expense							$ 200,000	$ 400,000	$ 1,900,000	$ 1,800,000
Outstanding (in shares), Beginning Balance							40,000		67,000
Granted (in shares)									38,000
Vested (in shares)							(6,000)		(71,000)
Forfeited (in shares)							(4,000)		(4,000)
Outstanding (in shares), Ending Balance						40,000	30,000		30,000
Outstanding, Weighted-Average Exercise Price, beginning balance							$ 35.54		$ 45.01
Granted, Weighted-Average Grant Price									34.13
Vested, Weighted-Average Grant Price							34.51		41.85
Forfeited, Weighted-Average Grant Price							36.81		36.81
Outstanding, Weighted-Average Exercise Price, ending balance						$ 35.54	$ 35.38		$ 35.38
Aggregate Intrinsic Value							$ 1,118,000		$ 1,118,000
Unrecognized stock based compensation expenses							300,000		$ 300,000
Unrecognized compensation cost period									3 months 18 days
Restricted stock \| Former CEO
Share-based Compensation
Shares granted value				$ 100,000
Stock closing price awarded (in dollars per share)		$ 30.12
Stock-based compensation expense							800,000		$ 800,000
Granted (in shares)		3,321
Vested (in shares)	(19,329)
Granted, Weighted-Average Grant Price		$ 30.12
Restricted stock \| Board of Directors
Share-based Compensation
Stock closing price awarded (in dollars per share)			$ 34.51
Stock-based compensation expense							$ 300,000		$ 800,000
Granted (in shares)			34,780
Vested (in shares)						(3,356)
Forfeited (in shares)						(3,600)
Outstanding (in shares), Ending Balance							27,824		27,824
Granted, Weighted-Average Grant Price			$ 34.51
Restricted stock \| Officer
Share-based Compensation
Granted (in shares)			3,478
Vested (in shares)						(1,678)
Forfeited (in shares)						(1,800)
RSU and PRSU
Share-based Compensation
Stock closing price awarded (in dollars per share)			$ 34.51
Granted, Weighted-Average Grant Price			$ 34.51
RSU and PRSU \| Former CEO
Share-based Compensation
Accelerated stock-based compensation expense							$ 500,000		$ 500,000
RSU
Share-based Compensation
Stock closing price awarded (in dollars per share)							$ 34.46		$ 34.46
Stock-based compensation expense							$ 400,000	300,000	$ 1,300,000	300,000
Vesting period			3 years
Outstanding (in shares), Beginning Balance							84,000		52,000
Granted (in shares)			66,325				2,000		68,000
Vested (in shares)							(13,000)		(32,000)
Forfeited (in shares)							(18,000)		(33,000)
Outstanding (in shares), Ending Balance						84,000	55,000		55,000
Outstanding, Weighted-Average Exercise Price, beginning balance							$ 36.65		$ 39.17
Granted, Weighted-Average Grant Price							34.46		34.46
Vested, Weighted-Average Grant Price							36.37		39.25
Forfeited, Weighted-Average Grant Price							36.18		35.79
Outstanding, Weighted-Average Exercise Price, ending balance						$ 36.65	$ 35.36		$ 35.36
Aggregate Intrinsic Value							$ 2,064,000		$ 2,064,000
Unrecognized stock based compensation expenses							1,500,000		$ 1,500,000
Unrecognized compensation cost period									2 years
RSU \| Former CEO
Share-based Compensation
Vested (in shares)	(7,421)
Forfeited (in shares)	(8,574)
RSU \| Former Officers [Member]
Share-based Compensation
Accelerated stock-based compensation expense							300,000		$ 300,000
Vested (in shares)					(10,311)
Forfeited (in shares)					(6,123)
PRSU
Share-based Compensation
Stock closing price awarded (in dollars per share)									$ 34.51
Stock-based compensation expense							$ 400,000	$ 100,000	$ 400,000	$ 100,000
Vesting period			3 years
Outstanding (in shares), Beginning Balance							72,000		31,000
Granted (in shares)			66,325						66,000
Vested (in shares)									(14,000)
Forfeited (in shares)							(21,000)		(32,000)
Adjusted for performance factor (in shares)							(40,000)		(40,000)
Outstanding (in shares), Ending Balance						72,000	11,000		11,000
Outstanding, Weighted-Average Exercise Price, beginning balance							$ 35.25		$ 37.49
Granted, Weighted-Average Grant Price									34.51
Vested, Weighted-Average Grant Price									35.65
Forfeited, Weighted-Average Grant Price							35.35		35.35
Adjusted for performance factor, Weighted-Average Grant Price							35.40		35.40
Outstanding, Weighted-Average Exercise Price, ending balance						$ 35.25	$ 34.51		$ 34.51
Aggregate Intrinsic Value							$ 411,000		$ 411,000
Unrecognized stock based compensation expenses							$ 300,000		$ 300,000
Unrecognized compensation cost period									2 years 3 months 18 days
PRSU \| Former CEO
Share-based Compensation
Vested (in shares)	(13,687)
Forfeited (in shares)	(11,285)
PRSU \| Former Officers [Member]
Share-based Compensation
Forfeited (in shares)					(6,123)

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option (Details) $ / shares in Units, $ in Thousands	1 Months Ended	3 Months Ended	9 Months Ended
	Mar. 31, 2023 USD ($) D $ / shares shares	Jul. 31, 2023 USD ($) $ / shares shares	Jul. 31, 2023 USD ($) $ / shares shares
Share-based Compensation
Outstanding, Number of Shares, Beginning Balance			27,000
Exercised, Number of Shares			(2,000)
Granted, Number of Shares			500,000
Outstanding, Number of Shares, Ending Balance		525,000	525,000
Exercisable, Number of Shares		15,000	15,000
Outstanding, Weighted-Average Exercise Price \| $ / shares			$ 44.67
Exercised, Weighted-Average Exercise Price \| $ / shares			23.48
Granted, Weighted-Average Exercise Price \| $ / shares			24.39
Outstanding, Weighted-Average Exercise Price, ending balance \| $ / shares		$ 25.44	25.44
Exercisable, Weighted-Average Exercise Price \| $ / shares		$ 51.30	$ 51.30
Outstanding, Aggregate Intrinsic Value \| $		$ 6,670	$ 6,670
Exercisable stock options, weighted-average remaining contractual term			8 months 12 days
Current CEO
Share-based Compensation
Granted, Number of Shares	500,000
Outstanding, Aggregate Intrinsic Value \| $	$ 1,800
Current CEO \| Tranche One
Share-based Compensation
Granted, Number of Shares	200,000
Current CEO \| Tranche Two
Share-based Compensation
Granted, Number of Shares	100,000
Threshold trading days \| D	30
Current CEO \| Tranche Two \| Minimum
Share-based Compensation
Target share price \| $ / shares	$ 50
Current CEO \| Tranche Three
Share-based Compensation
Granted, Number of Shares	100,000
Threshold trading days \| D	30
Current CEO \| Tranche Three \| Minimum
Share-based Compensation
Target share price \| $ / shares	$ 60
Current CEO \| Tranche Four
Share-based Compensation
Granted, Number of Shares	100,000
Threshold trading days \| D	30
Current CEO \| Tranche Four \| Minimum
Share-based Compensation
Target share price \| $ / shares	$ 70
Employee Stock Option [Member]
Share-based Compensation
Stock-based compensation expense \| $		700	$ 800
Unrecognized stock based compensation expenses \| $		$ 1,100	$ 1,100
Unrecognized compensation cost period			8 months 12 days
Employee Stock Option [Member] \| Minimum
Share-based Compensation
Vesting period			1 year
Award expiration period			2 years
Employee Stock Option [Member] \| Maximum
Share-based Compensation
Vesting period			5 years
Award expiration period			5 years

Stock-Based Compensation - Fair

Stock-Based Compensation - Fair Value Input (Details) - Employee Stock Option [Member]	1 Months Ended
	Mar. 31, 2023
Risk-free interest rate	4.31%
Expected volatility	35%
Dividend yield	1.60%
Expected life (years)	3 years

Other events (Details)

Other events (Details) $ / shares in Units, $ in Thousands, $ in Millions							1 Months Ended	3 Months Ended		9 Months Ended
	Sep. 01, 2023 $ / shares	Jul. 11, 2023 USD ($) $ / shares	Apr. 06, 2023 USD ($) $ / shares	Dec. 14, 2022 USD ($) $ / shares	Oct. 10, 2022 MXN ($)	Aug. 18, 2021	Jul. 31, 2018 MXN ($)	Jul. 31, 2023 USD ($) $ / shares	Jul. 31, 2022 USD ($)	Jul. 31, 2023 USD ($) $ / shares	Jul. 31, 2022 USD ($)	Jul. 31, 2023 MXN ($)	Jan. 31, 2023 MXN ($)	Jul. 31, 2021 USD ($)	Jun. 25, 2021 USD ($)
Dividend paid (in dollars per share) \| $ / shares		$ 0.10	$ 0.10	$ 0.2875				$ 0.10		$ 0.4875
Dividend amount paid to shareholders		$ 1,800	$ 1,700	$ 5,200						$ 8,654	$ 20,330
Dividend declared (in dollars per share) \| $ / shares	$ 0.10
Tax dispute liability accrued								$ 1,100		1,100			$ 18
Expenses (recovery) related to Mexican tax matters								(1,203)	$ 303	1,231	$ 1,148
Mexican Tax Authority \| Tax Assessment 2013
Tax assessment					$ 3,100
Amount disputed							$ 2,600			155,200
Estimate of loss								183,900		183,900		$ 3,080
Fixed assets net book value under lien															$ 26,000
Bank accounts under lien															$ 1,000
Percentage of tax on fruit purchase deposits						16%
Tax dispute liability accrued														$ 11,000
Expenses (recovery) related to Mexican tax matters								500		1,600
Mexican Tax Authority \| Tax Assessment 2013 \| Employee Profit Sharing Liability
Estimate of loss								$ 7,000		$ 7,000		$ 118

Noncontrolling Interest (Detail

Noncontrolling Interest (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Noncontrolling Interest (Details) - USD ($) $ in Thousands	Jul. 31, 2023	Jul. 31, 2022	Jul. 31, 2023	Jul. 31, 2022
Noncontrolling interest.
Noncontrolling interest, beginning	$ 1,323	$ 1,166	$ 1,015	$ 1,368
Net income (loss) attributable to noncontrolling interest of Avocados de Jalisco	82	17	390	(185)
Noncontrolling interest, ending	$ 1,405	$ 1,183	$ 1,405	$ 1,183

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2023	Jul. 31, 2022	Jul. 31, 2023	Jul. 31, 2022
Earnings per share
Net income (loss) attributable to Calavo Growers, Inc.	$ 6,626	$ 1,300	$ (437)	$ (2,933)
Weighted average shares - Basic (in shares)	17,756,000	17,667,000	17,746,000	17,661,000
Effect of dilutive securities - Restricted stock/units/options (in shares)	100,000	102,000
Weighted average shares - Diluted (in shares)	17,856,000	17,769,000	17,746,000	17,661,000
Basic (in dollars per shares)	$ 0.37	$ 0.07	$ (0.02)	$ (0.17)
Diluted (in dollars per shares)	$ 0.37	$ 0.07	$ (0.02)	$ (0.17)
Antidilutive shares excluded from EPS (in shares)			89,000	65,000

Mexican IVA taxes receivable (D

Mexican IVA taxes receivable (Details) $ in Millions, $ in Millions	1 Months Ended
	Jun. 30, 2023 USD ($)	Jul. 31, 2023 USD ($)	Jul. 31, 2023 MXN ($)	Jan. 31, 2023 MXN ($)	Oct. 31, 2022 USD ($)	Oct. 31, 2022 MXN ($)	Apr. 30, 2022 USD ($)	Apr. 30, 2022 MXN ($)
IVA receivables
IVA receivables balance		$ 54.1	$ 921.7		$ 43.6	$ 865.4
Unrecoverable value added tax		0.4		$ 6.9			$ 0.4	$ 6.9
Tax refund from SAT		1.1		$ 18
Reserve for taxes increase		$ 1.4
Income tax refunds	$ 2.8
Interest and inflation adjustments	$ 1.7

Credit Facility (Details)

Credit Facility (Details) - USD ($) $ in Thousands		9 Months Ended
Credit Facility (Details) - USD ($) $ in Thousands	Jun. 26, 2023	Jul. 31, 2023	Jul. 31, 2022	Oct. 31, 2022
Debt
Proceeds from revolving credit facilities		$ 215,818	$ 221,500
Payments on revolving credit facilities		180,250	$ 233,600
Restricted cash		761		$ 1,074
Revolving Credit Facility, Previous
Debt
Payments on revolving credit facilities	$ 34,900
New Credit Facility
Debt
Remaining credit available		$ 41,700
Weighted average interest rate (as a percent)		6.70%
Restricted cash		$ 800
Restricted investments		3,000
Revolving Loan
Debt
Credit available under borrowing agreement	90,000
Proceeds from revolving credit facilities	$ 36,800
Applicable margin (as a percent)	0.10%
Floor rate (as a percent)	0%
Fixed charge coverage ratio	10
Borrowings pursuant to credit facilities		36,800
Revolving Loan \| Base Rate
Debt
Applicable margin (as a percent)	0.50%
Revolving Loan \| SOFR
Debt
Applicable margin (as a percent)	1.50%
Term Loan-Capex Credit Facility
Debt
Credit available under borrowing agreement	$ 10,000
Credit agreement term	1 year
Term loan, current and non-current		$ 3,500
Term Loan-Capex Credit Facility \| Base Rate
Debt
Applicable margin (as a percent)	1%
Term Loan-Capex Credit Facility \| SOFR
Debt
Applicable margin (as a percent)	2%

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Jul. 31, 2023	Jul. 31, 2022	Jul. 31, 2023	Jul. 31, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 6,626	$ 1,300	$ (437)	$ (2,933)

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Jul. 31, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false