LMNR - Earnings call transcript Q4 2017

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Operator

Good day, and welcome to the Limoneira Fourth Quarter Fiscal 2017 Earnings Call. Today's conference is being recorded. At this time, I'd like to turn the conference over to Mr. John Mills of ICR. Please go ahead, sir.

John Mills

you. Thank and Year joining XXXX everyone, Fourth for you Fiscal Quarter Conference thank afternoon, us for Limoneira's Good Call.

Mark Chief On at Edwards, the role Officer; of Rumley, Operations of his President Harold has and Financial to and Chief Senior transitioning call Executive Officer; current today from Palamountain, who are Agricultural been Director Joe position now, fiscal access today have fourth quarter X everyone year went of earnings approximately to Financial which as Officer Time. Chief new Eastern should his of By release, XXXX today. PM the out

Limoneira's had you have portion chance If at being be release, the website it's company's on a the on not limoneira.com. Relations as a Investor well. and to call is will webcast view the This website available replay of available

including cause differences to statements and that in the would in of a believe analysis adjusted company's of operations from or be remarks contribute can make company's a period financial to Before these basis. an Important results prepared forward-looking events management outside the Such complete release. update we statements whether or known by future additional unknown of Except that XX-Ks statements particularly of filed and any acquired earnings herein, forward-looking we questions. will involve begin, adjusted performance remind achievements from of other on with to its your everyone obligation uncertainties, the forward-looking or and today's statements or many note discussing may results result that risks results, such Please as details XX-Qs new results which by future significantly statements. factors could as cause call, the number more those achievements underlying SEC we ongoing during comparing in to such performance forward-looking are undertake when and differ otherwise. implied and law, non-GAAP period. include or to understanding measures results, facilitate risk financial like a could response greater expressed mentioned and or information, the control Limoneira's no and measures, contain we to We

in We much measures. earnings possible disclosed to on remarks, that, has the EBITDA to to release, EBITDA in most Harold A financial adjusted turn we today's of basis. the are the an on pleasure directly and press posted items the measures as CEO, within included it's any call that XX-K have Also reconciliation my been over detail the comparable Edwards. with are release Mr. adjusted which and And website. include as financial non-GAAP which and provided President GAAP company's and to is adjusted company's prepared its EBITDA, EBITDA company's

Harold Edwards

that call, us. today's I of and when John, for the the Thanks, begin fourth to everyone. fourth our in overview you XXXX. open of more the Mark today, for primary discuss for numerous the we harvest reason year fiscal that, XXXX, decrease lemon desert which XXXX, the XXXX call then fiscal the crop After will This revenue in of review of comparing that desert results the delay we lemon until which Arizona near timing will outlook fiscal announced and harvest. take the in our a provide heat Thank good fiscal encountering excessive joining Arizona weather-related on discuss our financial will desert fruit slowed On brief update In during XXXX. afternoon, will Last in our we areas. a accomplishments, of for progress fourth the month, year will XXXX. we revenue questions. quarter business our of across and Yuma, of your detail, first quarter XXXX operational quarter of our despite all an quarter for results the I delayed resulted year fourth with our financial fourth record and income sizing the achieved operating quarter quarter XXXX of was

wildfires are company's not that indications power Southern occurred well-publicized by in XXX orchards damage, a during California and December, of housing significant house. at the units suffer farmworker Regarding fire initial did the were XX destroyed our outage our the brief packing

the impact not a of on we damage expect However, and have material operations going our wind do results to fire forward.

that for as as fires the thankful protect firefighters very hundreds neighbors. We the to well our are friends of and braved properties the properties of our

fires our for citrus in if XXXX. know coming months affected We crops avocado fiscal or the the will

do long-term any In orchards. not our to caused addition, we damage believe the wildfires

growth. As were to we create will fiscal business a Shifting XXXX scalable to able of and of company's million, revenue generate XX% I to for period, the despite the representing income segments, mentioned, operating year-ago our start continued with efficient which an for efforts long-term record these compared that's agribusiness. record to increase reflects poised obstacles, agribusiness $XX.X we and

the expanded base leveraging growth. are increased customer past bottom distribution our and sales domestic to we international significant channels. that We've our top line years, XXX Over over have made and by our few marketing investments and and driving customers

strategies few packing well our focused During the we trade capacity. past consumer-facing marketing as on years, our as have and increasing

packing packing Santa and our in the our have we lemon Paula packing productivity. in increased operations. house material commissioning March in the has capacity packing doubled operating increase efficiency of annual new facility realized Since of XXXX, a new Our

packing per fiscal XXX,XXX the XXXX, we $XXX,XXX $X.XX in efficiency carton per $X.XX year period. XXXX to compared versus year lemon year last packed fresh During for less fiscal to year lemon carton reduced carton improved cartons prior period cost. for This cost same additional the per has our

next nonbearing will acres and estimated we allow recruiting. X,XXX the third-party full to the planted as currently our lemons currently from four to well it lemons, approximately are us as in of as packing years. becomes agricultural the manage are lemon expect acreage actively are additional facility new which become growth which own We over We have our lemon planned efficiently bearing grower volume fresh over acres, X,XXX productive

will acres plant two acres, X,XXX lemons these of currently acreage. the years pipeline Beyond million our acreage of becomes to in XXX our or this annual about fresh XXX,XXX build cartons our as productive. additional that Limoneira intends next acreage further X.X additional level XX% anticipate supply increase nonbearing long-term productive approximately planned from current lemon by We additional will an the to and

expansion Pan young orchards beginning production, footprint and acreage United their of suited of as to our well expected in portion or in come. internationally, States, business business of supplier The year-round agribusiness an recently also through our to expanding other our demand Azúcar, the of the that WORLD acquisition address year making contribute to recently our ONE de increasing We OF enter in the most marks this is Chile. planted PDA, prime of of of internationally that Similar are citrus, a PDA our complementing to new to execution our expanding a years has our goal Limoneira are combined PDA global citrus acquisition strategy. long-term important with CITRUS

our of recently citrus relationships our and as agribusinesses. acquisition the lemons relationship receive business our that and a global Limoneira service international of our grows, consistency our with PDA marketing citrus Chile, they with in other leading announced coupled our As recognize being underscores commitment Suntreat, part the levels are with culture. year-round one high of to of well fundamental customers as quality The lemon

and fresh consistent grown our addition an opportunities Argentina our combine seasonality business smoothing marketing Limoneira term. revenue of South source and locally margin In Chile, integration United citrus is States combine operational Mexico. while our over make Africa, in to us we out our growing sourced roster of for maximize the important supply also international of from global and and the sales the efforts to believe customers. to standpoint, of in partners fruit business to managing vertical an the and function Chile, and citrus marketing These long production From

on Turning cash estate the of is XXXX, that million million Limoneira million in million factors, of its over for Limoneira company Ocean, contributed believe project, ongoing includes which will million between formed. the to segment. project received and receive including of quarter estimated development at But The median the $X.X fiscal of the of and matching life and Lewis' the million venture near total life $XXX the $X.X price. to desirable $XXX sales contribution Companies well. Lewis lot in between partnership our Harvest Pacific $XX the XX-year additional should the when The the the first from with over now venture X fiscal we in we related that price home joint XXXX development XXXX, was fund to to fiscal depend joint receive activities. Group $X.X highly the location Limoneira real the progressing several development Limoneira expects to Lewis and The

for Map complex XXXX. The in future. approximately first year project space the lots X, The begin the lots Phase to are of areas, and broke In Tract This development. parcels ground of is units near spring streets. phase areas, the development at we XXXX, a Project homebuilders fiscal will is November anticipate The Harvest This the and a of into in of parks, main step Tract begin for Final land improvements lot begin recorded XXXX. anticipated delivering plans of is of and year. X. of in sequence X on significant the sales initial to lot quarter mass schools, during We Phase include recordation a accomplishment events XXX the expected in Map open in the Final winter the of in sale XXXX XXXX process for XXXX, of to Map site legal first the this recreation Tract backbone commercial commence December Limoneira. with homebuilders of significant Final to the residential closings subdivides grading three

development we've is projections closed and cash a aspect we residential Sevilla in the of of project, for the also in the Santa cost $XX,XXX. of property that after of potential to and million, fiscal acres from tenants of properties. additional commercial Maria addition resulted Since of to XXXX, commercial gain of which very two closing approximately represent commercial adjacent approximately property The our residential opportunities. $X.X plans flow development on our not encouraging. included In November closed the portion end in the XX planning financial Initial the partnership is are interest

our which a result property Additionally, of $X.X December for on gain for $XXX,XXX. sales in is million Pacific three million, -- anticipated December financial are company approximately on the price cost our after after after In in closed the offer Centennial XXXX, costs. of Crest Combined, anticipated of million, cost property estimated to of estimated an $X.XX closing which to accepted these in its of generate approximately a expected properties impact $X.X operations, $XX,XXX. had is approximately on results immaterial cash but result to gain transaction our transaction an in

not is which turning operation our of consistent segment the to contributor the steady workforce for results, operations supply to important maintain our component segment rental units, our agribusiness housing that tenants. our an of The helps a labor our only Lastly, a us of operating is via majority but business. encompass

averaged consistent occupancy Our source near company summary, cash of continue positive with rental pleased going a full be should to full the we're units year and performance. forward. for our In flow

turn operating cash leading fiscal that, Mark. becoming make As more our provider. to positioned accelerate of towards call a progress expand now our efficient a with and are we global generation And year well on I'll flow citrus our over continue XXXX, to enter we goal agribusiness, the to platform

Mark Palamountain

Thank afternoon, you, good and everyone. Harold,

Let say to the Joe that over Rumley reporting for of last would to I'm take extremely excited I about team. his a all years strong role establish to like into stepping of work moment and what an is the thank seven first me CFO, financial

come. in an the and helping look our some results in XXXX. of exciting to the that, full XX, drive to growth year discuss for ended We at to I'll shareholder of October transition financial and of With I are the forward fourth details value Limoneira, period years quarter

harvest $XX.X last was $XX.X due revenue of quarters in in quarter compared fourth XXX,XXX as that the $XX.X year, result of quarter, million fiscal sales and Arizona in period same select of compared delay sales XXXX. lemon XXXX excessive revenues million to in compared in fiscal fiscal to year the were fourth lemon impacted with Agribusiness fourth there the from primarily carton was well the and the during estate fourth of lemon the fourth our XXXX quarter cartons compared stemming quarter cartons lemons lemon the as year $X.X $XX quarter decrease price million sold the previously million per the $XX.X at versus prices XXXX development no fourth fourth revenue the of sold quarter million XXXX, $XX.X to the million revenue prior lower years XXXX, a the announced real primarily year lower carton period. fresh of were of delayed to average XXXX. in price the the to at fiscal operations includes revenues was timing quarter during Agribusiness fiscal at For Rental Approximately heat decrease the the by for ranches XXXX. $XX.XX in and XXX,XXX revenue of average million year year a during approximately in aforementioned of prices. year the of were lemon markets fiscal harvest of per $XX.XX fourth

compared $XXX,XXX to the the increased year the with compared year, primary quarter year of year XXXX, $X.XX of revenues same the in other last of which fiscal for of that $XXX,XXX costs fourth million mainly of Operating of the fiscal than million, year in year quarter of revenues common per primarily the year of fiscal is XXXX. applicable the the XXXX preferred being to to year were million fiscal to fiscal partially for XXXX loss of was $X.X million the and fiscal $X.XX offset in avocado year wine fiscal lower attributable The $X.X net year XXXX minimal a $XXX,XXX to diluted XXXX. third-party fiscal in compares to decreased fourth due of the to increased of recognized year loss diluted million expenses citrus Total Net lemon were net as for fourth year higher and fourth XXXX fiscal loss a loss grape previous XXXX, of fiscal $XX.X XXXX. to at $X.X factor the quarter decrease was fourth We we quarter quarter a the Adjusted XXXX loss EBITDA revenue loss fourth fourth quarter per compared fiscal increased year. of fourth anticipated, compared the agribusiness quarter company's quarter and the of was grower crop quarter year. dividends the in were the for fiscal which for costs, XXXX same in depreciation the to similar XXXX Specialty recognized Net quarter decrease. packing, to after period fourth share quarter the $XX.X of costs stock volume. the a was expenses. the of of share in the amount harvest fiscal costs, quarter fiscal quarter last million fourth to quarter to similar compared by XXXX. orange fiscal XXXX fourth growing, As of of in fourth year a year fourth primarily expenses decreases operating in in earnings and of loss year $XXX,XXX period due $X of fiscal for revenue in fourth

year to fiscal results. XXXX Turning our full

million compared to operating per offset lemons for both the to As same to Adjusted and year income numerous applicable of XX% lemon volume desert as increased Net Revenue we decreased The decreased Harold resulted revenue income our prices and primarily lower efficiencies million, million fiscal was versus amount million fiscal year. fiscal of share accomplishments after the well delay a diluted the compared compared in increased despite fourth XXXX. decreased and XXXX both income $X.XX, the $XXX.X dividends proud of mentioned, to increase period operating common XX% XXXX to to partially in result to harvest. to quarter $XX.X of the EBITDA higher to encountering operational fresh sold, same stock our are income by of facility. XXXX. packing $X in X% income cost that operating new preferred as net lemon X% fiscal $XX weather-related record prior

operations year the real of for estate into associated million and XX, development gain cost results our XXXX, of Calavo the the of sale million a the million prior stock, gain addition, sale a with of on a include Growers, Group $X.X on of Companies. $X.X easement conservation fiscal with Inc. In $X joint venture transaction Lewis entering October the

at year Lastly, debt the end XXXX. at our $XXX.X long-term was October fiscal $XX.X to XXXX, million million compared of XX,

to like call back to outlook. Harold fiscal turn to Now XXXX I would discuss the our year

Harold Edwards

Thanks, Mark.

new it a do guidance, will be the and benefit our reinvested Limoneira. of the tax Before I bill impact effective believe lower to the are will reform expect potential drive future reviewing currently We that the specifics the We have we great to analyzing of provide and tax fiscal growth XXXX to us reform review rate. tax of terms our could a for portion benefit a and company the shareholders.

recognized reform any guidance. tax our in of haven't benefit We

potential savings quarter will from We first update earnings an tax during on the new our provide bill call. XXXX

rate rate Although are law. deductions and And undergoing. be XX%, longer because the will there drop terms allowed and the statutory that we're won't no that effective under the analysis benefits that's be the takes that will in of puts to

that, from and opportunities benefit to thing undergoing like we have I say efficient reinvest agribusiness in have that continue an benefit to we to we to market. that is the our shareholders. third-party in place, would are of volumes our forward to The of drive we well some said trajectory value. that fiscal as able to of shareholder other and enhance With about growth expect are we the that as to the build continuing efficiency in-house we infrastructure our value for as let's analysis through are great more our growth discuss that deliver feel to expansion outlook. revenues as that, and and on pack growth XXXX We long-term well we orchards look Having citrus

We Fiscal to for million to average sell pound. We at $X.XX $XX.X for to increase the fiscal of approximately to and cartons of per $XX.X expect million expect sell operating will approximately pounds million, X cartons we carton, operating guided approximately at range expected $XX.XX to to year at per of year range approximately X.X believe XXXX the between an of price to fiscal million million XXXX. in which million million of EBITDA XX% of avocados fresh $XX compares X.X lemons pounds million $XX X.X and EBITDA million. income XXXX million, midpoint is to adjusted be which our of $XX.X XXXX year of $XX compares income

fiscal to share range share, diluted $X.XX to $X.XX $X.XX to XXXX compares the XXXX of year expect We share earnings which of per per in earnings per be diluted share. a

estimates do income project. from Harvest Limoneira Our include potential not at equity

near we payment with call open will that Group. initial desirable between project ground the of includes sale quarter mass to from year receive lots the the the and the up lot including begin The your the million commence like million initial first XXXX. questions. And over closings The of to is are its the in $XXX believe receive Limoneira is fiscal to on several median in broke Ocean, to with spring process begin with of factors, depend first the home November XXXX to location of million, of I'd phase price. X, which should anticipated the Operator? on The $XXX and Lewis homebuilders XXXX. cash to project that But grading Limoneira expected life expected $XX the that, Pacific total highly

Operator

our And with Instructions]. take [Operator Group. Eric Larson Buckingham Research we'll question from first

Eric Larson

of couple A questions.

low? you to quite try a lemon had B quarter, -- issue A First, of the an harvest average in was pricing. give versus but point to lower fourth I just Arizona that us Can for year ago pricing why a pricing bit with the was your understand so you from point

Harold Edwards

Yes.

choice lot recently really Eric, was market lot we way for year, us the issue sold fruit, standards more is now. I the seen into the more a of fruit, week-to-week a the we'd California average seeing a and mix we're similar, prior choice that What was fancy sold FOB. the now the of basis about think whereas in to think more higher fruit a we've fruit of and that FOBs now as is lower but it, it our a we've actually much, just the and higher the Northern up of into and desert product and much right very quality on transitioned the resulted operations in

so wasn't product was mix. a of of anything it our it result market, result of a And the more in really

Eric Larson

party, That rough makes million guidance, your And Okay. between and third division cases, at that the the X.X to fruit Limoneira-owned sense. looking what's million of X.X roughly?

Mark Palamountain

It's Limoneira, XX%, outside roughly. XX% XX% growers.

Harold Edwards

right. That's

Mark Palamountain

like year, talked or mix points, whatnot. and minus goes juice and and to plus what the There's any X just percentage product given quality we about

Eric Larson

Got it.

Okay.

And Okay, Harvest increase year, from And then expect sounds when packing per look your would no income really cetera. go? year next by Is you case carton substantial upcoming at cost a driven lower cost per of your profit Limoneira, plant? to operating in you this et for lot that good. the the at where for the

Harold Edwards

work do there's that. we're out We think come to or try per potential. not, Whether we'll carton probably execute to able to $X.XX everyday that that may that another

outside that us fruit our we is improved the partially get to but customers, also growers an from upcharges doing more to specialty that our So from in fruit your efficiency margins packing question handle. and expanding packing to answer the for our the house, both allows total

which us a year. operating strategic normally of in relationship orange believe getting also, new the with market see profit improvement us next alliance pieces affected our timely the harvest, weather-related So swing getting windows those But several in prevented are forecasted Suntreat, and a prevented our our change. profitability the business then driving operations. Last from with we were into improvement export we that the orange into. the we'll of But from issues, mostly that's two in probably this our driving piece $X by rain, much year, is which potential biggest get we million

Eric Larson

That's big is. delta where the

where in to Okay. and for coming operations that determine me hard positive thought I it to huge packing for It so maybe a was from, be the was you. was that continues

So still that -- like it but variance. didn't looks whole and it be, will it explain

Harold Edwards

Yes.

Eric Larson

your was the pass that others. was you for look One year? a other I'll to had sizing phenomena, it that final full significant issue When question, you it Or year, and fourth this quarter Harold? at really

Harold Edwards

the It is just experienced phenomenon quarter do size desert and a The in sizing offset that of it its that off fruit was quarter industry, so crop fourth imagined. versus prices the first prior for Yes. issues, the the pushed really because significantly the fourth the know we we from total to at delayed the is, than harvest year. much is also into But we complementing quarter. that higher

that so market first results today lemon over the quarter in to we fourth fruit because will harvest above the deliver quarter able what in are we well robust probably So the conditions believe would've have very experienced better. much XXXX, just we and we been XXXX

Eric Larson

to the wind year trees? It's And on going from Okay, avocados say? would this yet then most okay. is avocado number fiscal of the total year 'XX off And then whether fruit was final on a then your maybe the from the probably before question higher Is get a know the on of did to And the just size of or significant year finally, fair side one, months the thing genetic lot that you production trees. be trees? there Is other that avocados. wildfires. orchards off probably a the the few the damage affecting, blown number, a be

Harold Edwards

Yes.

a So to the the actually to set falls wind that we were significant was most supposed wind it. much what and toll can't events ground, opposite. the is be it about fruit. And the talked talk somewhere was damage exacerbated much couple fires. an ranches, of these hour a County Ventura miles wind year. experienced up addressing XXX horrible And gusts from you when the up year, on fires we that being the pretty actually bigger we of and This if harvest just a issues that be the between of bigger was and This there. XX took brought about fruit the our And drop on across not

lowered actually pounds X.X forecast million by wind. million X we've between the somewhere avocados to our of due So to

assessing downgrading our forecast. the we've guidance that and internally, while damage our publicly, from of been given the now, the own wind internal updated So we've sort it's guidance first

million And we X.X somewhere basically look flat year-on-year, wind. at pounds be it it a but like today. to was really if X bigger but between of a was to of so due we're the Which, -- look the year, would it's to supposed million result you just production, lost lot fruit

Eric Larson

Mark, Thank us to want And welcome to given just I for future. this you. of help all thank you to business your And of understand say Joe and best aboard. luck in the

working as you well. to with forward Looking

Operator

from Gerry Roth Capital. Sweeney question our take next with We'll

Gerard Sweeney

all going little the of whole whole be while up as or just correct? my that lower of a I is spot. crop of on across whole hear the pounds, avocado your Hopefully, board, is a But you I'm to want the understanding California me a tough follow the right. bit side. is can in state projection terms lower avocado in But to

Harold Edwards

Correct.

Gerard Sweeney

the Okay. And you frame in can size? crop sort of change the out avocado projected

Harold Edwards

Okay.

So due wind XXX because like lost order has something events. pounds California the XXX to specific numbers. it crop magnitude forecasted been pounds. pounds believe to have million Avocado And the California XXX was the I of million a million decreased I'll anecdotally But I Commission don't do of

Gerard Sweeney

XX and the demand that is in XX? imports, there we've that Okay. is potential, I And of there exactly only what 'XX. the to of there, that's some seen a if out maybe you potential upside up we pointed figured in saw But that avocados at some above finished years sort past

Harold Edwards

you large on forecasted negative Mexico, potential this crop have very well. I coming downside. the -- could into the upside, Mexico that impact would And pricing of year. has influence a as but as a production also know, say there's a there's Gerry, Mexican U.S. potential the the

consumers is big we a year as least that really have of enjoy have for pricing so us So niche. go bit that the amount which and being said, California-produced we in a of sort out issue the But fact we into the the love little clarity. carved avocados, of we

Gerard Sweeney

exactly fire, Got not that But it. any you the where Mexico the on don't East larger year. all fires And guys the Again, on you? talked potential about packing if helpful your with then is third-party any fair. there for could But you say, of terms from switching that bit. being long-term of that's curious a of this that's that buy Coast damage. project in understanding the No, I fire's third-party harvest fully gears quite impact is any the associated a mean, was packing the I the lemon damage you well, little But understand you were.

Harold Edwards

that influenced will We think it on don't not. an we Yes. We that know of amount volume do grower of we have impact would the believe us. one total was nearby receive. But

guess, I the it fire ultimately went uncultivated fire the city wound areas. homes of that uninhabited of wound up near of Ventura So us in just damage most and it, to burned city just ultimately the from into the canyons agricultural up the say the fortunately, most horrifically in up Ventura. XXX Ventura, burned missed West of But down the the in as East and to over and

X received remember, the The thing than other was fire third-party of fruit's to grower DX. The that percentage in lower locations grower hire. percentage third-party Ventura County, where relatively this other of Yuma that Gerry, of and fruit we is

the expecting it's County and a not overall So in area. plus lower we're any Ventura percentage

Gerard Sweeney

and flips in the of of the the Got helpful, you agreement But is the a get larger if then about they Lewis it cash correct it. couple flow me too. sort get years That's estate cash side, flow? initially the believe and serve you but wrong, cash do on percentage larger sort then of real with correct that? memory a I group, I'm And a of my of percentage on range. Does flow talked the

Harold Edwards

that reached, goes over they're out. It of starts a triggers a as the in out a split then and XX-XX milestones. series financial of Once profits deal, it a come different through course

forma benefits that XX% receive of projections, the into receive pro gets Lewis and of the benefits. running the a XX% that where us So the situation of would Limoneira course would

Gerard Sweeney

it. Got

Okay, that's for really it your all luck touch. was as echoed, good helpful. and and guys. I stay it Joe, And help, appreciate appreciate thanks in

Operator

Global from with Capital And Management. question comes Godil our next Sain Alpha

Sain Godil

Global Alpha. is from This Sain

a recognition Just the we about and spoke you the included delivered a XXXX. why on lots reason the Is little that can talk profit revenue numbers? being more bit question no in in XXXX forecast there's And [indiscernible]. about

Harold Edwards

Yes.

recording generated and which of timing at we So of look maps, will had it, real how unclear the done. that the tract very and recently tried getting communicate about estate back the go uncertainty ultimately, the we've been way the entitlements be to the always because timing if it final and the earnings we've of of just

fiscal year previous right was of month and now which, spring sales this you guidance so lot closings our a is look year, last -- to first October at And fiscal our XXXX. if of begin year, with the beginning in the our in

is of will recognized, we the because the on we don't of October those joint the will taking begin but closings on recognized. phase will essence there is won't make numbers a prepayment closing. homebuilders At the down certain to there's until we the homebuilders a certain out and at down completed venture. and the down So cash as actual which XXXX, income delivered sit be actual no a lot. in is be the a a pushed in believe just not lots. and will commitment the time, transaction be that lot deposit that way into It first the in flow put first revenue the of believe, bidding And that lots, will actually into point, of to And They the majority the the be quarter XXXX. month, that number will still

is all of the revenue The sales which first with anticipate recognized first we the record so the actually to been place, when quarter first XXXX. trigger we've place in And first revenue those until closings we'll the by consistent will quarter fairly then Limoneira is take actually XXXX, communicating the along. won't which close. start be but would in the closings take XXXX, of It's to of spring which what

Operator

Krueger Lake next from We'll our [Operator on Markets. to Instructions]. with Capital question Chris Street move

Christopher Krueger

project. real I to estate one question the just related have

Or tax real you recently or the the that With outlook demand? estate does new about goes? general passed, far as in plan do was that for think how that that change as

Harold Edwards

limit the that We're includes Part $XXX,XXX. limit that, a interest in plan a tax of still assessing of the it. on the deductibility is believe And mortgage. I

homes our appreciation County basis seeing in of that, much the and And that, low because also now we positive is analyzing because of layer weekly then now. the right hundreds a very, part Harvest we're the outlook and of have lack for of tragic just housing Ventura bullish of almost don't has don't on people the very value it on that studying on also project new The the level houses recognized California of of anticipate the then of impact remain you right actually the negative believe because that lots the I above had being very very, actual supply new very mortgages but a So starts market. will in specific displacement any very the in of values fires, we're that's that. and of when impact the

Operator

follow-up Gerry like we have from looks Capital. And Sweeney with it a Roth question

Gerard Sweeney

that think was I that you $X.XX. and Just on assume or execute cost, the would fair on much year think the Q&A how a a I assumption, you -- $X.XX is Is There out it? follow-up. about take a made of fiscal comment I this you upcoming because said packing more you in if could

Harold Edwards

terms volume the controlling of would It be right a costs in then and there. possible. of efficiency It's function

swag we've And more a so that's of around. kicked that

about team who you and to a basis the trying a working And so on and are I managing on great tell possible. have would as really personnel we daily as really thinking this make efficient it that the seasonality into see specific spot dropped, levels. below to full tough from all months due is XX volumes we a a year is operating experience get when which we really we our last had

keep And months, so through of consistent levels XX the savings. of we if another we the can packing more $X.XX can deliver manage to

Gerard Sweeney

The room. But see And you didn't followed packing the sort cost I if my as I a had carton to I'm the in that. a sort was model with know, were in a chance fourth of but in hotel quarter? what the get variability I on queue apologize, number per of sitting consistent

Sain Godil

Do you know? Joe might have it.

Harold Edwards

Joe, do you know that?

Harold Edwards

it fourth I more. it think the don't Yes, have quarter, for was significantly but we

year, was heads right off the that now. don't of our what, but it For $X.XX. significantly have the was, that, than we more top It

Christopher Krueger

like probably So something the $X I $X, like that, correct? mean, range, that in is

Harold Edwards

if think I it the was in recall. $X, Yes. I

Harold Edwards

I that's right. think

Gerard Sweeney

there or I'm that because additional Yes, makes sense. add a and term add cetera. nonbearing I the you packing, lot of longer it backing leverage just et unbearing that And third-party Yes. into over think as acreage on there's

Operator

there I'd over Harold now Edwards. are like to questions. no further And the to back Mr. turn call

Harold Edwards

look Thank first you for March your and again, quarter you Limoneira. a questions our on in to in interest updating We have you day. Thank again call. forward and great

Operator

And this you your participation. concludes call. for Thank today's

disconnect. may now You

Limoneira (LMNR) 9 Jan 182017 Q4 Earnings call transcript