Mission Produce (AVO) 10-Q 10 Mar 22 2022 Q1 Quarterly report Financial data

Cover Page

Cover Page - shares	3 Months Ended
	Jan. 31, 2022	Feb. 28, 2022
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jan. 31, 2022
Document Transition Report	false
Entity File Number	001-39561
Entity Registrant Name	MISSION PRODUCE, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	95-3847744
Entity Address, Address Line One	2710 Camino Del Sol
Entity Address, City or Town	Oxnard
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	93030
City Area Code	805
Local Phone Number	981-3650
Title of 12(b) Security	Common Stock, par value $0.001 per share
Trading Symbol	AVO
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		70,631,525
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q1
Entity Central Index Key	0001802974
Current Fiscal Year End Date	--10-31

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Jan. 31, 2022	Oct. 31, 2021
Current Assets:
Cash and cash equivalents	$ 25.3	$ 84.5
Restricted cash	2.9	6.1
Trade, net of allowances of $0.1 and $0.2, respectively	101.2	73.8
Grower and fruit advances	3.5	0.6
Miscellaneous receivables	9.2	12.3
Inventory	79.3	48.2
Prepaid expenses and other current assets	11.3	11.6
Loans to equity method investees	2.1	3.3
Income taxes receivable	10.9	6.7
Total current assets	245.7	247.1
Property, plant and equipment, net	436.1	424.2
Operating lease right-of-use assets	42.7	43.9
Equity method investees	51.9	52.7
Loans to equity method investees	1.9	1.8
Deferred income tax assets, net	7.6	7.6
Goodwill	76.4	76.4
Other assets	18.7	19.8
Total assets	881	873.5
Liabilities
Accounts payable	21.5	22.8
Accrued expenses	41	28.8
Income taxes payable	1.8	1.9
Grower payables	36.9	22.2
Long-term debt—current portion	8.8	8.8
Operating leases—current portion	3.9	3.6
Finance leases—current portion	1.2	1.1
Total current liabilities	115.1	89.2
Long-term debt, net of current portion	152.9	155.1
Operating leases, net of current portion	41.6	42.5
Finance leases, net of current portion	1.9	2.2
Income taxes payable	3.5	3.5
Deferred income tax liabilities, net	26.8	26.8
Other long-term liabilities	17.9	20
Total liabilities	359.7	339.3
Commitments and contingencies (Note 5)
Shareholders' Equity
Common stock ($0.001 par value, 1,000,000,000 shares authorized; 70,631,525 shares issued and outstanding as of both January 31, 2022 and October 31, 2021)	0.1	0.1
Additional paid-in capital	226.4	225.6
Accumulated other comprehensive loss	(0.8)	(0.5)
Retained earnings	295.6	309
Total shareholders' equity	521.3	534.2
Total liabilities and shareholders' equity	$ 881	$ 873.5

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - Parenthetical - USD ($) $ in Millions	Jan. 31, 2022	Oct. 31, 2021
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 0.1	$ 0.2
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	1,000,000,000	1,000,000,000
Common stock, shares issued (in shares)	70,631,525	70,631,525
Common stock, shares outstanding (in shares)	70,631,525	70,631,525

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (UNAUDITED) - USD ($) $ in Millions	3 Months Ended
	Jan. 31, 2022	Jan. 31, 2021
Income Statement [Abstract]
Net sales	$ 216.6	$ 173.2
Cost of sales	216.1	150.5
Gross profit	0.5	22.7
Selling, general and administrative expenses	18.7	14.6
Operating (loss) income	(18.2)	8.1
Interest expense	(0.9)	(0.9)
Equity method income	1.6	2.3
Other income	1.6	0
(Loss) income before income taxes	(15.9)	9.5
(Benefit) provision for income taxes	(2.5)	7.3
Net (loss) income	$ (13.4)	$ 2.2
Net (loss) income per share:
Basic (in dollars per share)	$ (0.19)	$ 0.03
Diluted (in dollars per share)	$ (0.19)	$ 0.03
Other comprehensive (loss) income, net of tax
Foreign currency translation adjustments	$ (0.3)	$ 0.5
Comprehensive (loss) income	$ (13.7)	$ 2.7

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED) - USD ($) $ in Millions	Total	Common stock	Additional paid-in capital	Notes receivable from shareholders	Accumulated other comprehensive loss	Retained earnings
Beginning Balance (in shares) at Oct. 31, 2020		70,550,922
Beginning Balance at Oct. 31, 2020	$ 473.5	$ 0.1	$ 222.8	$ (0.1)	$ (0.5)	$ 251.2
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	0.8		0.8
Repayment of stock option notes receivable	0.1			0.1
Net income	2.2					2.2
Other comprehensive income	0.5				0.5
Ending Balance (in shares) at Jan. 31, 2021		70,550,922
Ending Balance at Jan. 31, 2021	477.1	$ 0.1	223.6	0	0	253.4
Beginning Balance (in shares) at Oct. 31, 2021		70,631,525
Beginning Balance at Oct. 31, 2021	534.2	$ 0.1	225.6	0	(0.5)	309
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	0.8		0.8
Net income	(13.4)					(13.4)
Other comprehensive income	(0.3)				(0.3)
Ending Balance (in shares) at Jan. 31, 2022		70,631,525
Ending Balance at Jan. 31, 2022	$ 521.3	$ 0.1	$ 226.4	$ 0	$ (0.8)	$ 295.6

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED) - USD ($) $ in Millions	3 Months Ended
	Jan. 31, 2022	Jan. 31, 2021
Operating Activities
Net (loss) income	$ (13.4)	$ 2.2
Adjustments to reconcile net (loss) income to net cash used in operating activities
Depreciation and amortization	4.5	3.6
Amortization of debt issuance costs	0.1	0.1
Noncash lease expense	1.2	0.9	[1]
Equity method income	(1.6)	(2.3)
Stock-based compensation	0.8	0.8
Dividends received from equity method investees	2.2	0
Losses (gains) on asset impairment, disposals and sales, net of insurance recoveries	0.1	(0.2)
Deferred income taxes	0	4.9
Unrealized (gains) losses on derivative financial instruments	(0.8)	0
Effect on cash of changes in operating assets and liabilities:
Trade accounts receivable	(27.6)	(12.6)
Grower fruit advances	(2.9)	0.2
Miscellaneous receivables	3.1	3.5
Inventory	(29.8)	(10.2)
Prepaid expenses and other current assets	0.1	(1.3)	[1]
Income taxes receivable	(4.2)	1.2
Other assets	0.6	(3.7)
Accounts payable and accrued expenses	13.3	4.8
Income taxes payable	(0.1)	(0.4)
Grower payables	15.1	(0.2)
Operating lease liabilities	(0.7)	(0.5)	[1]
Other long-term liabilities	(1.4)	(0.5)	[1]
Net cash used in operating activities	(41.4)	(9.7)
Investing Activities
Purchases of property and equipment	(20.9)	(22.4)
Proceeds from sale of property, plant and equipment	0	2.2
Investment in equity method investees	0	(0.2)
Loan repayments from equity method investees	1	0
Other	(0.2)	(0.2)
Net cash used in investing activities	(20.1)	(20.6)
Financing Activities
Principal payments on long-term debt obligations	(2.2)	(2.2)
Principal payments on finance lease obligations	(0.3)	(0.3)
Net cash used in financing activities	(2.5)	(2.5)
Effect of exchange rate changes on cash	0	0.1
Net decrease in cash, cash equivalents and restricted cash	(64)	(32.7)
Cash, cash equivalents and restricted cash, beginning of period	92.2	127
Cash, cash equivalents and restricted cash, end of period	28.2	94.3
Summary of cash, cash equivalents and restricted cash reported within the condensed consolidated balance sheets:
Cash and cash equivalents	25.3	91.1
Restricted cash	2.9	1.6
Restricted cash included in other assets	0	1.6
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows	$ 28.2	$ 94.3
[1]	Prior period amounts differ from those previously reported due to the adoption of ASC 842, Leases, effective November 1, 2020, which was first presented in our annual report on Form-10K for the year ended October 31, 2021.

General

General	3 Months Ended
	Jan. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
General	General Business Mission Produce, Inc. together with its consolidated subsidiaries (“Mission,” “the Company,” “we,” “us” or “our”), is a global leader in the avocado industry. The Company’s expertise lies in the farming, packaging, marketing and distribution of avocados to food retailers, distributors and produce wholesalers worldwide. The Company procures avocados principally from California, Mexico and Peru. Through our various operating facilities, we grow, sort, pack, bag and ripen avocados for distribution to domestic and international markets. We report our results of operations in two operating segments: Marketing and Distribution and International Farming (see Note 10). Basis of presentation and consolidation The unaudited interim condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and include the Company’s consolidated domestic and international subsidiaries. Certain information and disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Accordingly, these unaudited interim condensed consolidated financial statements and accompanying footnotes should be read in conjunction with the Company’s Annual Report for the year ended October 31, 2021. In the opinion of management, all adjustments, of a normal recurring nature, considered necessary for a fair statement have been included in the unaudited condensed consolidated financial statements. Interim results of operations are not necessarily indicative of future results, including results that may be expected for the twelve months ended October 31, 2022. Recently issued accounting standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform, and a subsequent update following, which provides optional expedients and exceptions for applying GAAP principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued as a result of reference rate reform. The optional expedients in this ASU are available for adoption as of March 12, 2020 through December 31, 2022. The Company is evaluating the impact of electing the adoption of this ASU on our financial condition, results of operations and cash flows.

Inventory

Inventory	3 Months Ended
	Jan. 31, 2022
Inventory Disclosure [Abstract]
Inventory	Inventory Major classes of inventory were as follows: (In millions) January 31, 2022 October 31, 2021 Finished goods $ 41.6 $ 22.5 Crop growing costs 23.1 11.9 Packaging and supplies 14.6 13.8 Inventory $ 79.3 $ 48.2

Details of Certain Account Bala

Details of Certain Account Balances	3 Months Ended
	Jan. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Details of Certain Account Balances	Details of Certain Account Balances Accrued expenses (In millions) January 31, 2022 October 31, 2021 Employee-related $ 10.5 $ 14.6 Freight 11.5 3.9 Interest rate swaps 1.5 2.1 Construction-in-progress 0.1 0.2 Outside fruit purchase 9.6 2.2 VAT and local taxes payable 1.0 1.0 Legal settlement 0.8 0.8 Other 6.0 4.0 Accrued expenses $ 41.0 $ 28.8 Other income Three Months Ended (In millions) 2022 2021 Gains on derivative financial instruments $ 0.8 $ — Foreign currency transaction gain (loss) 0.5 (0.6) Interest income 0.1 0.2 Other 0.2 0.4 Other income $ 1.6 $ —

Debt

Debt	3 Months Ended
	Jan. 31, 2022
Debt Disclosure [Abstract]
Debt	Debt Credit facility Long-term debt under our credit facility with Bank of America (“BoA”) Merrill Lynch consisted of the following: (In millions) January 31, 2022 October 31, 2021 Revolving line of credit. The interest rate is variable, based on LIBOR plus a spread that varies with the Company’s leverage ratio. As of January 31, 2022 and October 31, 2021, the interest rate was 1.86% and 1.84%, respectively. Interest is payable monthly and principal is due in full in October 2023. $ — $ — Senior term loan (A-1). The interest rate is variable, based on LIBOR plus a spread that varies with the Company’s leverage ratio. As of January 31, 2022 and October 31, 2021, the interest rate was 1.86% and 1.84%, respectively. Interest is payable monthly, principal is payable quarterly and due in full in October 2023. 88.1 90.0 Senior term loan (A-2). The interest rate is variable, based on LIBOR plus a spread that varies with the Company’s leverage ratio. As of January 31, 2022 and October 31, 2021, the interest rate was 2.36% and 2.34% respectively. Interest is payable monthly, principal is payable quarterly and due in full in October 2025. 72.6 72.8 Note payable to BoA. Payable in monthly installments including interest at a rate of 3.96% as of both January 31, 2022 and October 31, 2021. Principal is due July 2024. 1.3 1.5 Total long-term debt 162.0 164.3 Less debt issuance costs (0.3) (0.4) Long-term debt, net of debt issuance costs 161.7 163.9 Less current portion of long-term debt (8.8) (8.8) Long-term debt, net of current portion $ 152.9 $ 155.1 The credit facility requires the Company to comply with financial and other covenants, including limitations on investments, capital expenditures, dividend payments, amounts and types of liens and indebtedness, and material asset sales. The Company is also required to maintain certain leverage and fixed charge coverage ratios. As of January 31, 2022, the Company was in compliance with all covenants of the credit facility. Interest rate swaps

Commitment and Contingencies

Commitment and Contingencies	3 Months Ended
	Jan. 31, 2022
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Litigation The Company is involved from time to time in claims, proceedings, and litigation, including the following: On April 23, 2020, former Mission Produce, Inc. employees filed a class action lawsuit in the Superior Court of the State of California for the County of Los Angeles against us alleging violation of certain wage and labor laws in California, including failure to pay all overtime wages, minimum wage violations, and meal and rest period violations, among others. Additionally, on June 10, 2020, former Mission Produce, Inc. employees filed a class action lawsuit in the Superior Court of the State of California for the County of Ventura against us alleging similar violations

Income Taxes

Income Taxes	3 Months Ended
	Jan. 31, 2022
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The income tax (benefit) expense recorded for the three months ended January 31, 2022 and 2021, differs from the income taxes expected at the U.S. federal statutory tax rate of 21.0%, primarily due to income attributable to foreign jurisdictions which is taxed at different rates, changes in foreign exchange rates taxable in foreign jurisdictions, state taxes, nondeductible tax items, changes in uncertain tax positions (“UTP”), and changes in tax law affecting the rate in future years. As of January 31, 2022, the Company had $13.7 million in UTP accrued, of which $7.6 million relates to interest and penalties, inclusive of inflationary adjustments. The period for assessing interest and penalties has expired. However, the Company continues to record certain statutory adjustments related to inflation. During the three months ended January 31, 2022, the Company recognized $0.1 million as income tax expense related to inflationary and other adjustments. Changes in the UTP related to changes in foreign exchange rates during the period are included in other income in the condensed consolidated statements of comprehensive (loss) income. Additionally, the Company recorded a discrete tax expense of $5.1 million during the three months ended January 31, 2021, related to the remeasurement of our deferred tax liabilities in Peru due to the enactment of tax rate changes for future years. On December 30, 2020, Peru enacted certain tax law changes effective January 1, 2021 that repealed existing tax laws which provided benefits to agribusiness entities. The new law will subject the Company to higher Peruvian tax rates than the current rate of 15% as follows: 20% for calendar years 2023 to 2024, 25% for calendar years 2025 to 2027, and 29.5% thereafter.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Jan. 31, 2022
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Financial assets and liabilities measured and recorded at fair value on a recurring basis included in the condensed consolidated balance sheets were as follows: January 31, 2022 October 31, 2021 (In millions) Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Mutual funds $ 1.2 $ 1.2 $ — $ — $ 1.2 $ 1.2 $ — $ — Liabilities Interest rate swap liability 2.1 — 2.1 — 3.5 — 3.5 — Our mutual fund investments relate to our deferred compensation plan, which are held in a Rabbi trust. The funds are measured at quoted prices in active markets, which is equivalent to their fair value. The fair value of interest rate swaps is determined using widely accepted valuation techniques, including discounted cash flow analysis, on the expected cash flows of each derivative. The analysis reflects the contractual terms of the swaps, including the period to maturity, and uses observable market-based inputs, including interest rate curves (“significant other observable inputs”). The fair value calculation also includes an amount for risk of non-performance using “significant unobservable inputs” such as estimates of current credit spreads to evaluate the likelihood of default. The Company has concluded, as of January 31, 2022 and October 31, 2021, that the fair value associated with the “significant unobservable inputs” relating to the Company’s risk of non-performance was insignificant to the overall fair value of the interest rate swap agreements and, as a result, the Company has determined that the relevant inputs for purposes of calculating the fair value of the interest rate swap agreements, in their entirety, were based upon “significant other observable inputs”. The liabilities associated with the interest rate swaps have been included in accrued expenses and other long-term liabilities in the condensed consolidated balance sheets and gains and losses for the interest rate swaps have been included in other income in the condensed consolidated statements of comprehensive (loss) income.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Jan. 31, 2022
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share Three Months Ended 2022 2021 Numerator: Net (loss) income available to shareholders (in millions) $ (13.4) $ 2.2 Denominator: Weighted average shares of common stock outstanding, used in computing basic earnings per share 70,631,525 70,550,922 Effect of dilutive stock options — 22,328 Effect of dilutive RSUs — 32,321 Weighted average shares of common stock outstanding, used in computing diluted earnings per share 70,631,525 70,605,571 Earnings per share Basic $ (0.19) $ 0.03 Diluted $ (0.19) $ 0.03 Equity awards representing shares of common stock outstanding that were excluded in the computation of diluted earnings per share because their effect would have been anti-dilutive, were as follows: Three Months Ended 2022 2021 Anti-dilutive stock options 2,185,487 2,329,152 Anti-dilutive RSUs 135,893 —

Related Party Transactions

Related Party Transactions	3 Months Ended
	Jan. 31, 2022
Related Party Transactions [Abstract]
Related Party Transactions	Related Party Transactions Transactions with related parties included in the condensed consolidated financial statements were as follows: Condensed Consolidated Balance Sheets January 31, 2022 October 31, 2021 (In millions) Accounts receivable Loans to equity method investees Accounts payable & accrued expenses Accounts receivable Loans to equity method investees Accounts payable & accrued expenses Equity method investees: Mr. Avocado $ 0.7 $ — $ — $ 1.3 $ — $ — Moruga (1) 3.1 1.9 — 3.9 3.0 — Copaltas (2) — 2.1 — — 2.1 — Other: Directors/Officers (3) 0.1 — 0.1 0.1 — — Employees (4) — — 1.0 — — 0.2 Condensed Consolidated Statements of Comprehensive (Loss) Income Three Months Ended Three Months Ended (In millions) Net sales Cost of sales Other income Net sales Cost of sales Other income Equity method investees: Henry Avocado $ — $ 0.2 $ — $ — $ — $ — Mr. Avocado 0.4 — — 1.1 — — Moruga (1) 3.4 — 0.4 2.5 — — Other: Directors/Officers (3) 0.4 0.1 — 0.6 — — Employees (4) — 1.7 — — 3.0 — (1) The Company has provided loans to Moruga Inc. S.A.C. to support growth and expansion projects, bearing interest at 6.5%, due December 31, 2022. We also lease owned land to Moruga. (2) The Company has provided loans to Copaltas to support growth and expansion projects, bearing interest at 6.66%. The notes outstanding as of January 31, 2022 have an amended due date of April 30, 2022. (3) The Company purchases from and sells avocados to a small number of entities having full or partial ownership by some of our directors/officers. These transactions are made under substantially similar terms as with other growers and customers. The Company entered into a consulting agreement with a director in 2018 to provide consulting and advice on current business operations, as well as to analyze opportunities for fresh avocado farming and packing facilities in South and Central America, which was terminated in June 2021. Fees earned by this director for the three months ended January 31, 2021 were less than $100,000. (4) The Company utilizes a transportation vendor in Mexico owned by key management employees under similar terms as other transportation vendors. The Company purchases avocados from a small number of entities having full or partial ownership by some employees. These transactions are made under substantially similar terms as with other growers.

Segment Information

Segment Information	3 Months Ended
	Jan. 31, 2022
Segment Reporting [Abstract]
Segment Information	Segment Information We have two operating segments which are also reporting segments. Our reporting segments are presented based on how information is used by our CEO, who is the chief operating decision maker, to measure performance and allocate resources. These reporting segments are Marketing and Distribution and International Farming. Our Marketing and Distribution reporting segment sources fruit from growers and then distributes the fruit through our global distribution network. Our International Farming segment owns and operates orchards from which substantially all fruit produced is sold to our Marketing and Distribution segment. The International Farming segment’s farming activities range from cultivating early-stage plantings to harvesting from mature trees, and it also earns service revenues for packing and processing for producers of other crops during the avocado off-harvest season. The International Farming segment is principally located in Peru, with smaller operations emerging in other areas of Latin America. The CEO evaluates and monitors segment performance primarily through segment sales and segment adjusted earnings before interest expense, income taxes and depreciation and amortization (“adjusted EBITDA”). We believe that adjusted EBITDA by segment provides useful information for analyzing the underlying business results as well as allowing investors a means to evaluate the financial results of each reportable segment in relation to the Company as a whole. These measures are not in accordance with, nor are they a substitute for or superior to, the comparable GAAP financial measures. Adjusted EBITDA refers to net income (loss), before interest expense, income taxes, depreciation and amortization expense, stock-based compensation expense, other income (expense), and income (loss) from equity method investees, further adjusted by asset impairment and disposals, net of insurance recoveries, farming costs for nonproductive orchards (which represents land lease costs), noncapitalizable ERP implementation costs, transaction costs, and any special, non-recurring, or one-time items such as impairments that are excluded from the results the CEO reviews uses to assess segment performance and results. Net sales from each of our reportable segments were as follows: Marketing and Distribution International Farming Total Marketing and Distribution International Farming Total Three Months Ended (In millions) 2022 2021 Third party sales $ 212.3 $ 4.3 $ 216.6 $ 169.6 $ 3.6 $ 173.2 Affiliated sales — (1.0) (1.0) — 0.2 0.2 Total segment sales 212.3 3.3 215.6 169.6 3.8 173.4 Intercompany eliminations — 1.0 1.0 — (0.2) (0.2) Total net sales $ 212.3 $ 4.3 $ 216.6 $ 169.6 $ 3.6 $ 173.2 Adjusted EBITDA for each of our reporting segments was as follows: Three Months Ended (In millions) 2022 2021 Marketing and Distribution adjusted EBITDA $ (7.7) $ 13.7 International Farming adjusted EBITDA (2.7) (1.2) Total reportable segment adjusted EBITDA (10.4) 12.5 Net (loss) income (13.4) 2.2 Interest expense 0.9 0.9 (Benefit) provision for income taxes (2.5) 7.3 Depreciation and amortization 4.5 3.6 Equity method income (1.6) (2.3) Stock-based compensation 0.8 0.8 Asset impairment and disposals, net of insurance recoveries 0.1 — Farming costs for nonproductive orchards 0.5 — Noncapitalizable ERP implementation costs 1.5 — Transaction costs 0.4 — Other income (1.6) — Total adjusted EBITDA (10.4) 12.5 Net sales to customers outside the U.S. were $38.5 million and $47.2 million for the three months ended January 31, 2022 and 2021, respectively.

General (Policies)

General (Policies)	3 Months Ended
	Jan. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of presentation and consolidation	Basis of presentation and consolidation The unaudited interim condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and include the Company’s consolidated domestic and international subsidiaries. Certain information and disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Accordingly, these unaudited interim condensed consolidated financial statements and accompanying footnotes should be read in conjunction with the Company’s Annual Report for the year ended October 31, 2021. In the opinion of management, all adjustments, of a normal recurring nature, considered necessary for a fair statement have been included in the unaudited condensed consolidated financial statements. Interim results of operations are not necessarily indicative of future results, including results that may be expected for the twelve months ended October 31, 2022.
Recently issued accounting standards	Recently issued accounting standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2020-04, Reference Rate Reform, and a subsequent update following, which provides optional expedients and exceptions for applying GAAP principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued as a result of reference rate reform. The optional expedients in this ASU are available for adoption as of March 12, 2020 through December 31, 2022. The Company is evaluating the impact of electing the adoption of this ASU on our financial condition, results of operations and cash flows.

Inventory (Tables)

Inventory (Tables)	3 Months Ended
	Jan. 31, 2022
Inventory Disclosure [Abstract]
Schedule of Major Classes of Inventory	Major classes of inventory were as follows: (In millions) January 31, 2022 October 31, 2021 Finished goods $ 41.6 $ 22.5 Crop growing costs 23.1 11.9 Packaging and supplies 14.6 13.8 Inventory $ 79.3 $ 48.2

Details of Certain Account Ba_2

Details of Certain Account Balances (Tables)	3 Months Ended
	Jan. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Schedule of Accrued Liabilities	Accrued expenses (In millions) January 31, 2022 October 31, 2021 Employee-related $ 10.5 $ 14.6 Freight 11.5 3.9 Interest rate swaps 1.5 2.1 Construction-in-progress 0.1 0.2 Outside fruit purchase 9.6 2.2 VAT and local taxes payable 1.0 1.0 Legal settlement 0.8 0.8 Other 6.0 4.0 Accrued expenses $ 41.0 $ 28.8
Schedule of Other Income (Expense), Net	Other income Three Months Ended (In millions) 2022 2021 Gains on derivative financial instruments $ 0.8 $ — Foreign currency transaction gain (loss) 0.5 (0.6) Interest income 0.1 0.2 Other 0.2 0.4 Other income $ 1.6 $ —

Debt (Tables)

Debt (Tables)	3 Months Ended
	Jan. 31, 2022
Debt Disclosure [Abstract]
Schedule of Long-term Debt Under Credit Facility	Long-term debt under our credit facility with Bank of America (“BoA”) Merrill Lynch consisted of the following: (In millions) January 31, 2022 October 31, 2021 Revolving line of credit. The interest rate is variable, based on LIBOR plus a spread that varies with the Company’s leverage ratio. As of January 31, 2022 and October 31, 2021, the interest rate was 1.86% and 1.84%, respectively. Interest is payable monthly and principal is due in full in October 2023. $ — $ — Senior term loan (A-1). The interest rate is variable, based on LIBOR plus a spread that varies with the Company’s leverage ratio. As of January 31, 2022 and October 31, 2021, the interest rate was 1.86% and 1.84%, respectively. Interest is payable monthly, principal is payable quarterly and due in full in October 2023. 88.1 90.0 Senior term loan (A-2). The interest rate is variable, based on LIBOR plus a spread that varies with the Company’s leverage ratio. As of January 31, 2022 and October 31, 2021, the interest rate was 2.36% and 2.34% respectively. Interest is payable monthly, principal is payable quarterly and due in full in October 2025. 72.6 72.8 Note payable to BoA. Payable in monthly installments including interest at a rate of 3.96% as of both January 31, 2022 and October 31, 2021. Principal is due July 2024. 1.3 1.5 Total long-term debt 162.0 164.3 Less debt issuance costs (0.3) (0.4) Long-term debt, net of debt issuance costs 161.7 163.9 Less current portion of long-term debt (8.8) (8.8) Long-term debt, net of current portion $ 152.9 $ 155.1

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Jan. 31, 2022
Fair Value Disclosures [Abstract]
Financial Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis	Financial assets and liabilities measured and recorded at fair value on a recurring basis included in the condensed consolidated balance sheets were as follows: January 31, 2022 October 31, 2021 (In millions) Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Quoted Prices in Active Markets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets Mutual funds $ 1.2 $ 1.2 $ — $ — $ 1.2 $ 1.2 $ — $ — Liabilities Interest rate swap liability 2.1 — 2.1 — 3.5 — 3.5 —

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Jan. 31, 2022
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Earnings Per Share	Three Months Ended 2022 2021 Numerator: Net (loss) income available to shareholders (in millions) $ (13.4) $ 2.2 Denominator: Weighted average shares of common stock outstanding, used in computing basic earnings per share 70,631,525 70,550,922 Effect of dilutive stock options — 22,328 Effect of dilutive RSUs — 32,321 Weighted average shares of common stock outstanding, used in computing diluted earnings per share 70,631,525 70,605,571 Earnings per share Basic $ (0.19) $ 0.03 Diluted $ (0.19) $ 0.03
Schedule of Equity Awards Excluded from Computation of Diluted EPS	Equity awards representing shares of common stock outstanding that were excluded in the computation of diluted earnings per share because their effect would have been anti-dilutive, were as follows: Three Months Ended 2022 2021 Anti-dilutive stock options 2,185,487 2,329,152 Anti-dilutive RSUs 135,893 —

Related Party Transactions (Tab

Related Party Transactions (Tables)	3 Months Ended
	Jan. 31, 2022
Related Party Transactions [Abstract]
Schedule of Related Party Transactions	Transactions with related parties included in the condensed consolidated financial statements were as follows: Condensed Consolidated Balance Sheets January 31, 2022 October 31, 2021 (In millions) Accounts receivable Loans to equity method investees Accounts payable & accrued expenses Accounts receivable Loans to equity method investees Accounts payable & accrued expenses Equity method investees: Mr. Avocado $ 0.7 $ — $ — $ 1.3 $ — $ — Moruga (1) 3.1 1.9 — 3.9 3.0 — Copaltas (2) — 2.1 — — 2.1 — Other: Directors/Officers (3) 0.1 — 0.1 0.1 — — Employees (4) — — 1.0 — — 0.2 Condensed Consolidated Statements of Comprehensive (Loss) Income Three Months Ended Three Months Ended (In millions) Net sales Cost of sales Other income Net sales Cost of sales Other income Equity method investees: Henry Avocado $ — $ 0.2 $ — $ — $ — $ — Mr. Avocado 0.4 — — 1.1 — — Moruga (1) 3.4 — 0.4 2.5 — — Other: Directors/Officers (3) 0.4 0.1 — 0.6 — — Employees (4) — 1.7 — — 3.0 — (1) The Company has provided loans to Moruga Inc. S.A.C. to support growth and expansion projects, bearing interest at 6.5%, due December 31, 2022. We also lease owned land to Moruga. (2) The Company has provided loans to Copaltas to support growth and expansion projects, bearing interest at 6.66%. The notes outstanding as of January 31, 2022 have an amended due date of April 30, 2022. (3) The Company purchases from and sells avocados to a small number of entities having full or partial ownership by some of our directors/officers. These transactions are made under substantially similar terms as with other growers and customers. The Company entered into a consulting agreement with a director in 2018 to provide consulting and advice on current business operations, as well as to analyze opportunities for fresh avocado farming and packing facilities in South and Central America, which was terminated in June 2021. Fees earned by this director for the three months ended January 31, 2021 were less than $100,000. (4) The Company utilizes a transportation vendor in Mexico owned by key management employees under similar terms as other transportation vendors. The Company purchases avocados from a small number of entities having full or partial ownership by some employees. These transactions are made under substantially similar terms as with other growers.

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Jan. 31, 2022
Segment Reporting [Abstract]
Schedule of Net Sales by Segment	Net sales from each of our reportable segments were as follows: Marketing and Distribution International Farming Total Marketing and Distribution International Farming Total Three Months Ended (In millions) 2022 2021 Third party sales $ 212.3 $ 4.3 $ 216.6 $ 169.6 $ 3.6 $ 173.2 Affiliated sales — (1.0) (1.0) — 0.2 0.2 Total segment sales 212.3 3.3 215.6 169.6 3.8 173.4 Intercompany eliminations — 1.0 1.0 — (0.2) (0.2) Total net sales $ 212.3 $ 4.3 $ 216.6 $ 169.6 $ 3.6 $ 173.2
Reconciliation of Revenue from Segments to Consolidated	Adjusted EBITDA for each of our reporting segments was as follows: Three Months Ended (In millions) 2022 2021 Marketing and Distribution adjusted EBITDA $ (7.7) $ 13.7 International Farming adjusted EBITDA (2.7) (1.2) Total reportable segment adjusted EBITDA (10.4) 12.5 Net (loss) income (13.4) 2.2 Interest expense 0.9 0.9 (Benefit) provision for income taxes (2.5) 7.3 Depreciation and amortization 4.5 3.6 Equity method income (1.6) (2.3) Stock-based compensation 0.8 0.8 Asset impairment and disposals, net of insurance recoveries 0.1 — Farming costs for nonproductive orchards 0.5 — Noncapitalizable ERP implementation costs 1.5 — Transaction costs 0.4 — Other income (1.6) — Total adjusted EBITDA (10.4) 12.5

General (Details)

General (Details) - 3 months ended Jan. 31, 2022	Segment	segment
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of operating segments	2	2

Inventory - Major Classes of In

Inventory - Major Classes of Inventory (Details) - USD ($) $ in Millions	Jan. 31, 2022	Oct. 31, 2021
Inventory Disclosure [Abstract]
Finished goods	$ 41.6	$ 22.5
Crop growing costs	23.1	11.9
Packaging and supplies	14.6	13.8
Inventory	$ 79.3	$ 48.2

Details of Certain Account Ba_3

Details of Certain Account Balances - Accrued expenses (Details) - USD ($) $ in Millions	Jan. 31, 2022	Oct. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Employee-related	$ 10.5	$ 14.6
Freight	11.5	3.9
Interest rate swaps	1.5	2.1
Construction-in-progress	0.1	0.2
Outside fruit purchase	9.6	2.2
VAT and local taxes payable	1	1
Legal settlement	0.8	0.8
Other	6	4
Accrued expenses	$ 41	$ 28.8

Details of Certain Account Ba_4

Details of Certain Account Balances - Other income (expense), net (Details) - USD ($) $ in Millions	3 Months Ended
	Jan. 31, 2022	Jan. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Gains on derivative financial instruments	$ 0.8	$ 0
Foreign currency transaction gain (loss)	0.5	(0.6)
Interest income	0.1	0.2
Other	0.2	0.4
Other income	$ 1.6	$ 0

Debt - Long Term Debt Under Cre

Debt - Long Term Debt Under Credit Facility (Details) - USD ($) $ in Millions	Jan. 31, 2022	Oct. 31, 2021
Debt Instrument [Line Items]
Total long-term debt	$ 162	$ 164.3
Less debt issuance costs	(0.3)	(0.4)
Long-term debt, net of debt issuance costs	161.7	163.9
Less current portion of long-term debt	(8.8)	(8.8)
Long-term debt, net of current portion	152.9	155.1
Revolving Line of Credit | Line of Credit
Debt Instrument [Line Items]
Total long-term debt	$ 0	$ 0
Interest rate	1.86%	1.84%
Senior Term Loan A-1 | Secured Debt
Debt Instrument [Line Items]
Total long-term debt	$ 88.1	$ 90
Interest rate	1.86%	1.84%
Senior Term Loan A-2 | Secured Debt
Debt Instrument [Line Items]
Total long-term debt	$ 72.6	$ 72.8
Interest rate	2.36%	2.34%
Notes Payable, BoA | Secured Debt
Debt Instrument [Line Items]
Total long-term debt	$ 1.3	$ 1.5
Interest rate	3.96%	3.96%

Debt - Narrative (Details)

Debt - Narrative (Details) $ in Millions	Jan. 31, 2022USD ($)derivativeInstrument
Senior Term Loans | Secured Debt
Derivative [Line Items]
Principal value	$ 100
Interest Rate Swap
Derivative [Line Items]
Number of derivative instruments | derivativeInstrument	4
Notional amount	$ 100

Commitment and Contingencies -

Commitment and Contingencies - Narrative (Details) $ in Millions	1 Months Ended
	May 31, 2021USD ($)
Class Action V. Mission Produce | Settled Litigation
Loss Contingencies [Line Items]
Amount awarded to other party	$ 0.8

Income Taxes - Narrative (Detai

Income Taxes - Narrative (Details) - USD ($) $ in Millions	3 Months Ended
	Jan. 31, 2022	Jan. 31, 2021
Income Tax Disclosure [Abstract]
Uncertain tax provision	$ 13.7
Penalties and interest accrued	7.6
Unrecognized tax benefits, period increase (decrease)	$ 0.1
Discrete tax expense		$ 5.1

Fair Value Measurements - Finan

Fair Value Measurements - Financial Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Millions	Jan. 31, 2022	Oct. 31, 2021
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mutual funds	$ 1.2	$ 1.2
Interest Rate Swap
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Interest rate swap liability	2.1	3.5
Quoted Prices in Active Markets (Level 1)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mutual funds	1.2	1.2
Quoted Prices in Active Markets (Level 1) | Interest Rate Swap
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Interest rate swap liability	0	0
Significant Other Observable Inputs (Level 2)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mutual funds	0	0
Significant Other Observable Inputs (Level 2) | Interest Rate Swap
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Interest rate swap liability	2.1	3.5
Significant Unobservable Inputs (Level 3)
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mutual funds	0	0
Significant Unobservable Inputs (Level 3) | Interest Rate Swap
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Interest rate swap liability	$ 0	$ 0

Earnings Per Share - Schedule o

Earnings Per Share - Schedule of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Jan. 31, 2022	Jan. 31, 2021
Numerator:
Net (loss) income	$ (13.4)	$ 2.2
Denominator:
Weighted average shares of common stock outstanding, used in computing basic earnings per share (in shares)	70,631,525	70,550,922
Weighted average shares of common stock outstanding, used in computing diluted earnings per share (in shares)	70,631,525	70,605,571
Earnings per share
Basic (in dollars per share)	$ (0.19)	$ 0.03
Diluted (in dollars per share)	$ (0.19)	$ 0.03
Stock Options
Denominator:
Effect of dilutive securities (in shares)	0	22,328
Restricted Stock Units (RSUs)
Denominator:
Effect of dilutive securities (in shares)	0	32,321

Earnings Per Share - Awards Exc

Earnings Per Share - Awards Excluded from Computation of Diluted EPS (Details) - shares	3 Months Ended
	Jan. 31, 2022	Jan. 31, 2021
Stock Options
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities	2,185,487	2,329,152
Restricted Stock Units (RSUs)
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities	135,893	0

Related Party Transactions - Ba

Related Party Transactions - Balance Sheet (Details) - USD ($) $ in Millions	Jan. 31, 2022	Oct. 31, 2021
Equity Method Investees | Mr. Avocado
Related Party Transaction [Line Items]
Accounts receivable	$ 0.7	$ 1.3
Loans to equity method investees	0	0
Accounts payable & accrued expenses	0	0
Equity Method Investees | Moruga
Related Party Transaction [Line Items]
Accounts receivable	3.1	3.9
Loans to equity method investees	1.9	3
Accounts payable & accrued expenses	0	0
Equity Method Investees | Copaltas
Related Party Transaction [Line Items]
Accounts receivable	0	0
Loans to equity method investees	2.1	2.1
Accounts payable & accrued expenses	0	0
Directors/Officers
Related Party Transaction [Line Items]
Accounts receivable	0.1	0.1
Loans to equity method investees	0	0
Accounts payable & accrued expenses	0.1	0
Employees
Related Party Transaction [Line Items]
Accounts receivable	0	0
Loans to equity method investees	0	0
Accounts payable & accrued expenses	$ 1	$ 0.2

Related Party Transactions - St

Related Party Transactions - Statement of Comprehensive (Loss) Income (Details) - USD ($) $ in Millions	3 Months Ended
	Jan. 31, 2022	Jan. 31, 2021
Equity Method Investees | Henry Avocado
Related Party Transaction [Line Items]
Net sales	$ 0	$ 0
Cost of sales	0.2	0
Other income	0	0
Equity Method Investees | Mr. Avocado
Related Party Transaction [Line Items]
Net sales	0.4	1.1
Cost of sales	0	0
Other income	0	0
Equity Method Investees | Moruga
Related Party Transaction [Line Items]
Net sales	3.4	2.5
Cost of sales	0	0
Other income	$ 0.4	0
Interest rate	6.50%
Equity Method Investees | Copaltas
Related Party Transaction [Line Items]
Interest rate	6.66%
Directors/Officers
Related Party Transaction [Line Items]
Net sales	$ 0.4	0.6
Cost of sales	0.1	0
Other income	0	0
Employees
Related Party Transaction [Line Items]
Net sales	0	0
Cost of sales	1.7	3
Other income	$ 0	0
Director | Consulting Fees
Related Party Transaction [Line Items]
Consulting fees		$ 0.1

Segment Information - Narrative

Segment Information - Narrative (Details) $ in Millions	3 Months Ended
	Jan. 31, 2022USD ($)	Jan. 31, 2022USD ($)Segment	Jan. 31, 2022USD ($)segment	Jan. 31, 2021USD ($)	Oct. 31, 2021USD ($)
Revenues from External Customers and Long-Lived Assets [Line Items]
Number of operating segments		2	2
Number of reportable segments | segment			2
Net sales	$ 216.6			$ 173.2
Goodwill	76.4	$ 76.4	$ 76.4		$ 76.4
International Farming
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	4.3			3.6
Goodwill	76.4	$ 76.4	$ 76.4		$ 76.4
Non-US
Revenues from External Customers and Long-Lived Assets [Line Items]
Net sales	$ 38.5			$ 47.2

Segment Information - Net Sales

Segment Information - Net Sales by Segment (Details) - USD ($) $ in Millions	3 Months Ended
	Jan. 31, 2022	Jan. 31, 2021
Segment Reporting, Revenue Reconciling Item [Line Items]
Total net sales	$ 216.6	$ 173.2
Operating segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Total net sales	215.6	173.4
Intercompany eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Total net sales	1	(0.2)
Third party sales | Operating segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Total net sales	216.6	173.2
Affiliated sales | Operating segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Total net sales	(1)	0.2
Marketing and Distribution
Segment Reporting, Revenue Reconciling Item [Line Items]
Total net sales	212.3	169.6
Marketing and Distribution | Operating segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Total net sales	212.3	169.6
Marketing and Distribution | Intercompany eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Total net sales	0	0
Marketing and Distribution | Third party sales | Operating segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Total net sales	212.3	169.6
Marketing and Distribution | Affiliated sales | Operating segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Total net sales	0	0
International Farming
Segment Reporting, Revenue Reconciling Item [Line Items]
Total net sales	4.3	3.6
International Farming | Operating segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Total net sales	3.3	3.8
International Farming | Intercompany eliminations
Segment Reporting, Revenue Reconciling Item [Line Items]
Total net sales	1	(0.2)
International Farming | Third party sales | Operating segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Total net sales	4.3	3.6
International Farming | Affiliated sales | Operating segment
Segment Reporting, Revenue Reconciling Item [Line Items]
Total net sales	$ (1)	$ 0.2

Segment Information - Adjustmen

Segment Information - Adjustments for EBITDA by Segment (Details) - USD ($) $ in Millions	3 Months Ended
	Jan. 31, 2022	Jan. 31, 2021
Segment Reporting Information [Line Items]
Net (loss) income	$ (13.4)	$ 2.2
Interest expense	0.9	0.9
(Benefit) provision for income taxes	(2.5)	7.3
Depreciation and amortization	4.5	3.6
Equity method income	(1.6)	(2.3)
Stock-based compensation	0.8	0.8
Asset impairment and disposals, net of insurance recoveries	0.1	0
Farming costs for nonproductive orchards	0.5	0
Noncapitalizable ERP implementation costs	1.5	0
Transaction costs	0.4	0
Other income	(1.6)	0
Operating segment
Segment Reporting Information [Line Items]
Total adjusted EBITDA	(10.4)	12.5
Marketing and Distribution | Operating segment
Segment Reporting Information [Line Items]
Total adjusted EBITDA	(7.7)	13.7
International Farming | Operating segment
Segment Reporting Information [Line Items]
Total adjusted EBITDA	$ (2.7)	$ (1.2)