LMNR - Earnings call transcript Q2 2018

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Operator

Good day. And welcome to Limoneira's Second Quarter Fiscal 2018 Earnings Call. Today’s conference is being recorded. At this time, I would like to turn the conference over to John Mills of ICR. Please go ahead.

John Mills

you. Thank everyone. afternoon, Good for conference for call. you fiscal second year XXXX joining thank Limoneira's us quarter And

Financial everyone On Eastern President second went Officer Chief out and call quarter Chief By the today earnings approximately Executive and are fiscal year today Mark release, to at have Time. access should Harold XXXX Edwards, Officer. the now, which Palamountain, P.M. X:XX

site a available of available had site not replay chance limoneira.com. Web on the Investor you’ve the a it's well. to as is If release, on call portion the Relations Company's and Web being at This review the webcast Limoneira's be will

results Please cause by could Important with financial basis. release. otherwise. an have to greater note the we Company's Company's and and as undertake future comparable that that SEC result filed Company's to Also, We’ve any whether measures reconciliation achievements of in adjusted release underlying an significantly to forward-looking risks a earnings remarks, or involve questions. of Before in period-to-period. law, and such statements. today's mentioned results as to risk other discussed EBITDA those as of Company's detail achievements we a and on are which may financial Such forward-looking complete earnings with could can believe Limoneira's financial management measures, posted contribute prepared in comparing number unknown like in GAAP known herein, or factors to non-GAAP the directly basis. and is and that within response from today's performance provided forward-looking pleasure prepared XX-Qs additional call, include the XX-Ks items which Harold and the remind we its uncertainties, statements possible to differences from would that Web financial no the these the the much CEO, to be results, particularly your by my and included during it control, measures will including turn and or implied on to remarks the when of We And are XX-Q site update of the contain analysis results, operations, adjusted results more and ongoing facilitate on that, begin, or detail statements we understanding Edwards. non-GAAP adjusted make over the is is future Except required measure. A such today. we call Company's or obligation a in EBITDA, include expressed cause everyone statements release, differ press forward-looking our been outside which President to many performance information, most Mr. any of events or statements new discussing

Harold Edwards

marketplace. solid us in the second open on saw quarter, announce we the upon I'm in XX% take to that In primarily puts revenue and by Thanks, for joining which brief we fiscal will call, On sales, of I today's second quarter financial and I John. $XX.X the to questions. lemon XXXX, our increased call will to provide an second results everyone. pricing pace year to due pleased the in financial the our XXXX. a afternoon, And built quarter, businesses. discuss was our good will momentum detail, your After with Mark review for of us. a our improving targets. earnings performance then update achieve Thank more will the on overview across outlook progress results the first quarter XXXX our and you that, fiscal bolstered begin million, for stronger

to continue top infrastructure, which the continue experience line. operating benefits our of We while more we improving our efficient drive to margins is

segments, operating second start million. Shifting EBITDA increased our improved Our to XX% million, with business our XX% by agribusiness. and to to $XX for will income we the quarter $X.X

and Over growth. line our our expanded distribution strategies, the are past over We've customers and We're customer consumer our domestic focused and sales few years, as increasing base increased XXX we marketing top driving significant and investments well have capacity. marketing bottom packing channels. and by as made that leveraging trade, international on our facing our

fresh from not we have the but of this is sourcing our lemons global are offerings. a global citrus leveraging world XXX seasonality to days platform addition, and In giving citrus of different by one citrus basis in leader only for we our become of customers us lemons. locations, initiative, the eliminated Collectively, overall

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

an carton. we XXXX, lemon In packing our additional of XXX,XXX For to to are actively X% cost quarter acreage efficiencies demonstrates capacity volume, as as And continue agricultural lemon XX% the are the has fresh new over The bearing XXXX's growth second over our less the four to manage facility prior to have in fiscal of grower next which lemons productive, years. as our estimated year, X,XXX XXXX are the volume volume. X,XXX which savings well additional the non-bearing example, carton additional planted $XXX,XXX recruiting. versus becomes fiscal currently acres, lemons, third-party double in which approximately become lemon planned We than fresh currently full increase realized we more cartons as cost, and in XXXX, packed in efficiently per for our per ability savings fiscal of packing will we the and we acres improve.

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

to opportunities United now fragmented growing highly third expect citrus is marketing steady Africa, include industry. Mexico. organic sourced increase are in Globally, fruit. This we we in all own our addition, potential have growth in and grower a and doesn't and party by manage locally In States in our Chile, sales and the Argentina business Chile, South fruit function grown partners and for the acquisition

roster of year-round As levels customers grows, an receive fundamental as culture. recognize they combine revenue well to From and the vertical the that of seasonality opportunities, and while our international marketing, maximize Limoneira production our customers. are smoothing our of our of fresh growing of consistent an us efforts margin we believe as quality to long important our lemon business citrus combine of lemons, global supply over and operational integration consistency to out part the make These business term. standpoint, source high with our service and

we the Pacific the and of the to receive Companies will estimated now million estate in desirable The Group partnership Turning of when over Limoneira we the between was the seven our $XX venture from approximately its of Ocean, is XX Lewis Lewis segment. development project, highly the harvest With development formed. at million received Limoneira $XXX joint for we location believe including year real life to progressing well.

the quarter sales flow beginning We fiscal lot expect in year the of to project from first realize XXXX. cash

we loan flows. of the with by Limoneira engaged Importantly, no will the XXXX. the certain February January the initial fiscal our credit Phase summary, supporting regional successfully fiscal unsecured the from perspective, now and pleased and X year homebuilders obligations with activities. Today, underway year from line our to joint national are project cash and principals sheet In really longer in we lot venture and XXXX, is process the deliver in improvements on the beginning into be of under half entered balance early with fund the Lewis progress In venture joint self-sufficient capital are first were bidding development for sales and in of $XX Limoneira. XXXX, lot site directly XXXX. of million a to guaranteed Then

past profitability. all have fragmented citrus, drive us in the These during of on and years industry. and global global position made are to And that positioned a supply that leading through our well capitalize many and with very markets. is put call incurring based We in out investments presence our our investments brands, acquisitions. on both Mark. our a of of now organically are trend also aspects continue strategic to many consolidation in strong us building turn business and platform, And have we I'll to We highly operate margins helping long-term the in few the that, over fresh

Mark Palamountain

everybody. XXXX. afternoon, some Good will our second Harold. quarter of I results the you, financial details the of discuss ended XX, April for Thank

primarily higher same last the million fresh higher the cartons lemon to with compared year net lemon result Approximately in period lemon lemons volume XX% quarter quarter previous $XX.X revenue during prices to X,XXX,XXX includes year sales $XX.X and year, XXXX of sales Agribusiness of period $XX.X increase compared fiscal sales. XXXX, fresh total Agribusiness the second of the carton to same $XX.X due XXXX, primarily revenue million cartons $XX.XX XXXX. the the during fiscal For in fiscal per second quarter revenue sold to year $XX.XX compared fiscal for year. in average total of quarter compared XXX,XXX the second price of of of the million in quarter per net fiscal at XXXX year to fiscal the during of of second increased $XX.X to quarter million of XXXX. the lemons were year to million $XX.X million second average sold at revenue compared fiscal second an carton the was of approximately of year stronger

crop, the to to in negligible period year's second XXXX. year, million year avocado lower period quarter at was the due to same XXXX in of last $XXX,XXX fiscal same fiscal primarily seasonality the of anticipated, of result year compared prices revenue volume this compared As and the for $X avocado

fiscal citrus of second prices majority XXXX. expenses recognized the up the compared $XX.X quarter same offset the fiscal costs revenues in by will quarter sold, $X.X of $X.X period recognized million period XXXX, of in for to the expect the quarter XXXX our compared year year second during to of $X.X XXXX. in to in in of Total year and compared basis and Company year million $X.X fiscal third revenue dollar quarter year attributable revenue The of XXXX the million year. fiscal orange higher lower fiscal our quarter million same million last fiscal other be of modestly the second quarter. primarily second of avocado oranges $XX.X the were were to year absolute compared volume crop fiscal in to on XXXX second an We to Specialty million of partially fiscal

more third-party than expenses by fruit of basis However, quarter and harvest pick percentage to which related packing agribusiness, costs sales, points. related largely as during a our and These growers to XXX includes sell costs excellent for expense expense. experienced leverage share depreciation the growing and we the costs, we costs, are

we shares share year share approximately on for year the versus income previous of to year and the fiscal XX.X to our diluted revenue the expense year. after the same the as second dividends XXXX. Given million $X.X in respectively we of of to operations, fiscal creating fiscal packing the net second EBITDA million of of income increased million $XX $X.X XXXX in of we common year preferred of stock per the to common same XXXX compared and of income diluted base $X.X year. second quarter was year compares million of million grows. million fiscal XX% XXXX XXXX based for for efficiencies with quarter $X.X prior our leverage, for year fiscal period $X.X compared per diluted the $X.XX expect increased Net quarter fiscal applicable period million second are quarter in outstanding $X.XX the to million second fiscal the to to which Net driving income weighted year XX average of in quarter XXXX. compared the continue was income XX% XXXX greater second quarter to are Operational fiscal

fiscal sheet a Lastly, $XXX.X and on XXXX. financing Long-term vehicles. compared million our of comments $XXX.X balance XX, of XXXX million to as April end at few was debt the

January, funding on option million Harold rate source a venture this and outstanding the remarks our The venture mentioned joint venture $XX in date his Limoneira's venture in conditions. The as April million amounts entering penalty. maturity XXXX to of until X.XX% contains venture related following by the with at joint into matures XXXX, in line with of joint January certain extend $X.X harvest default loan certain is balance unsecured removed parties an made Limoneira joint regarding monthly. and the without XXXX XXXX. under loan As in February loan obligations to direct the development customary The an now loan for outstanding subsequently is prepay may Lewis, guaranteed the the payable provisions interest plus to XX, joint loan. any subject recorded LIBOR at The loan credit

to As credit rate lock May supplement the made recently effective Limoneira, we the capital XXXX we consider decision to non-revolving our need at July X, XXXX. in on X.XX%, the

You may us attractive debt this is gives increase and supplement $XX credit the revolving million very advantageous the given under of million capacity fixed for amended from recall supplement, capacity believe provides comprised further million we January, at This rate aggregate the $XX year, to $XX borrowing rate, increases. expectations of to the under that non-revolving in million. $XXX supplement. flexibility financing credit earlier we borrowing a new which supplement revolving $XX The good million credit

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

Harold Edwards

Mark. Thanks

agribusiness our we market to in in-house in as are place trajectory on, growth shareholders. fiscal pack our we benefit are for let's to We orchards, as potential feel through XXXX growth that, discuss long-term great and continue forward we of With our efficient about more that expect look we continuing and value acquisitions. deliver outlook. build to to citrus our the and infrastructure from revenues well We expansion have the able as third-party volumes to

in pounds to remain approximately We approximately reiterating We at sell carton; fiscal follows; quarter realize harvest guidance. drivers higher lemons consequently year million of year. last our compared cartons and core our summarized to per earnings lemon third volume The will X.X quarter fundamental pounds as million approximately sell than and of $XX.XX between expect agribusiness an of be higher agribusiness business continue cartons than X.X million The our third timing to we pound. for of underlying expect in per average X XXXX in to and unchanged and last Therefore, fresh to contribution revenue, light our avocados lemons are relatively are we quarter heavier continue $X.XX the compared year’s million price this of fiscal year. at to and expect X.X fourth a to

to $XX.X for year million. We fiscal continue to believe range operating guided of income to $XX.X increase XXXX million will our

of which We from to of Company's our to the rate lower XXXX related year are an effective adjusted maintaining XXXX earnings to earnings diluted fiscal per share the fiscal XX.X%. share forecast $X.XX per share $X.XX from benefit includes tax XX.X% full per per $X.XX of share,

$X.XX guidance one-time of this the of quarter the benefit excludes the per in Importantly, share fiscal diluted deferred XXXX. first non-cash tax Company recognized that

include We’re from of harvest do at to not XXXX which to also Limoneira range estimates million. equity potential fiscal maintaining Note forecast compares that project. in $XX million, our EBITDA XXXX the EBITDA of $XX $XX adjusted our million income

bidding a the I'd call And lot on project of which with homebuilders puts up close initial first track year questions. sales currently to are fiscal in your engaged to in Operator? with process, quarter XXXX. lot like We the open potential that, to the

Operator

you ROTH And Capital. Sweeney Thank will [Operator with first Instructions]. with go we Gerry

Gerry Sweeney

you lemons those the and much a million are of Just cartons think much that around questions X.X how cadence are to of million X.X lemons. lemons own couple How of of third-party. Limoneira’s do

previously Limoneira, I still that wanted XX make mentioned the you was case. think just sure to XX-XX

Mark Palamountain

it’s a that sitting efforts being seen. Right XX% the more bit just about outside now balance to we've and due we’re growers, at Limoneira, recruiting

Gerry Sweeney

this bit to I’ve that and little want a you’ve past I I recruiting sure clear. discussed is in -- where little think efforts And I’m gotten a the -- make then on

year, adding looking year. still XXX,XXX You're think adding many last this and XXXX? year per at about cartons is you’re how do you XXX,XXX target for the And cartons over

Mark Palamountain

’XX, ’XX. we to this and about goal year expect our And we're that. cartons We our cartons incremental XXX,XXX well then on new fiscal be year be will to that expect is way -- XXX,XXX

Gerry Sweeney

got costs other as cost, have you’ve unusual bit packing acquire differential little lot Obviously, because that in And bit expected? they’re those little anything lemons third-party -- But been expectations on or of that were costs its bit. then carries a just model. just any to outside agri or may in a up my a line

Harold Edwards

per Gerry. cost. grower predominantly first with line, attributable a is. so on in your costs the higher coupled And higher versus than of to lower were carton it's No, carton. own outside what basis, is But comment fruit percentage it exactly a the though overall higher volumes, outside cost per earlier It's forecast growers our

Gerry Sweeney

some obviously finally, takes remarks. And couple different sides. prepared And highly I'm But times is I sure make at to there mentioned like concerned phrases you correct. it, be market, about is both not acquisitions fragmented just in and model on want a to that going puts obviously, my of the

you're frame of a As a industry, that? could out looking looking perspective, out on anything at strategic that be bit you detail from at little you maybe will the

Harold Edwards

any we're in supply invested the rocks of year-round but at Yes, working But or we're is two a chains discipline that trying growing so the return on opportunities really the acquisitions of currently round the second serving; over maintaining our complete would regions to out various that turning world. the is one to component and as they the capital for we markets approach perspectives; on make. parts to in relate of looking all the from

we viewing it that, not looking Arizona, number other to in do while also mitigation in in place. acreages So here that. structures Argentina of as to lens that foreign well sure at and in the Chile, right packing there's political opportunities productive partnerships those also California, have and but only and South we're But looking in opportunities, of Mexico, all in a relates a at risk, we're different ways opportunities the production through as making as potential opportunities Africa,

us of And to all not announcing so look we're at. a So those opportunities optimistic great given distant combined things have in some future, we'll the acquisitions. lot that be

Operator

with Eric Research next go Group. We'll Buckingham to Larson

Eric Larson

loan the am you obligations the new let's what -- that Just get cost harvest future cash, this is properly? you I it did quarter first at that out Limoneira the to say, first What for until probably question on of Is cash have looking have Limoneira. the I 'XX. generate at

Harold Edwards

Yes.

hear to of So good voice. Eric -- first all, your

about the the different really that towards we construction revolving trust by a number estate development when can that path is and first of it's excited to in So far comfortable from least put because was in real typically a down place. which lender loan but enough were that not credit loan perspectives, of loan is then obligations a securing be development put along project a a feels creates done different is of as deed a what can't place,

this partnership actually retaining Group put of with as that two not sales, place partnership million the Lewis we And the and so creates letters cash from but creates great the credit secured having which was because cash from joint first from the terms in forward. which the of for the homebuilders a of trust, line credit from capital advantages working for entities, extremely us lot cash; to of that with we and more a from by optionality and backstop partnership. for the to only us lot from perspective use the were of in $XX to And payments go Companies, down prevents several of proceeds also deed flexibility collateral the the pleased essence the in line in loan the

the we farther footing. passu before capital we’d the considerably the capital result way place, on as gained the put back anticipated pari and contributions with -- was pro going this deal note future As calls into XX-XX going forma a as project project into its

now cash project, which were point, for very, pro we our -- line fund formas to this great from perspective. put a the according this in pleased So at and flow the Limoneira to very requirement remainder place, which great to Limoneira’s of credit is project for of the additionally a negates news

Eric Larson

carton. still I cadence for this your the maybe looking The did -- pricing. volume per next guidance I and is probably us is able how -- $X.XX full defer Last guess I Can curious $X.XX to avocados, pound? have question is successfully get were still you your like to year I tell quickly third you you're year, quarter the now am and you think below guess why better right box to the into of timing -- I as is pricing it. per that per

Harold Edwards

So and to up or X.X which estimating, end size is the in range we compared we seeing X usually plus choices is there there is that some there, size out were. we've two of XX% been delta how picking million tree, swings pound our pound the the believe million top all out as basically to given minus profile look looking where there, And is the in there, we at in with avocados that. especially better

the curve us higher for so of the pounds were. where queue leasing the bigger and more just And quality sizing potential we gave

Mark Palamountain

And is Eric. your very insightful, question

which are now, pound, I would really now the up tree. we’re we as actually to think we are that size generating right look the $X.XX outcome if pounds. the able is $X.XX right more that down going in is range. following you’re what about see -- developing you market, a XX off curve And we So the are to get really whereas probably What we as to we see think XXs delivering is say

in to migrate second we And we’re we hitting some we’ll fruit to -- this of original volume early. targets. on get picking. better market. the selectively the done that's looks the quarter. off commented weaker our clean did remarks, of take as place So higher our size size in XXs. fall off will if But and we’re the as guidance, size majority like towards in earlier and the the tree curve and now tree able now a that going smaller XXs that towards try to going why harvest it quarter, our price, towards fruit picks because the little fingers the And a that haven't into are changed as at much was well crossed peaking We've probably have the the to really closer XX, closer shot too migrate and some that size to of anyways our it's we point, And fruit our to we’re third the size

Eric Larson

And then volumes fact over -- final a the volume quarter, push the turn more someone were was your you else. into I then from quarter the and bit and in question it I'll little little And to light, deferred that into first what know QX? that a QX. from total would lemon number high first that volume thought Did was -- number In end think, happened? we do the because Arizona what

Harold Edwards

actually the been So hit anticipated. pretty We so quarter. specifically. volume then way we've QX, anticipated And first better the quarter, in that the what remember fourth explained the than than at and you don’t second I front have quarter, end coming in is also But we in out it we happened. then in exactly were much lighter more second the loaded pricing quarter of

we think and are desert we move cost in towards when in growing to still higher bigger is the region quarter talked probably as third know really on fourth But at weather going because quarter. a going fourth the as to really that's here switched heat, too right district from crop And determined in to gets we to little And at quarter there's there the early the a I lower this hanging quarter, to Yuma. of is lemon, before trees it’s call fourth too it's and we’re like things but the the or lot still volume to now what opaque, what in and the now. the third volumes as and Yuma. too be just now So the We think look that in look by harvest the point. it we early see

in suggesting similar higher up cautiously the on quarter. fairly So third we’re lower and in lower the now quarter volumes by pricing pricing fourth volumes probably followed

Eric Larson

from I a Final question items, think probably apples did it I Mexican this tariffs, you’ve and all of segments. the question hit gotten guess forget fruit I everybody. little bunch

were just if avocados with Is from curious Mexico, exempt. business I’m issues lemons What if is speakers] that there don’t a don’t you there pull tariff there. think. think -- lemons? [multiple about And I any clearly lemons? got I I know But in

Harold Edwards

virtually from no that’s coming and the us impact our China's tariffs was California impact on put tariffs, The had of We’ve out operations. any China. to oranges citrus were of hitting that tariff one additional

arena into United in one area out you that’s the of us. still course hit the avocados nor certified So been Jalisco of trade haven’t States, following global allowed they Calavo, allowed that’s from And as know they aren't the China. into

than today. it region, but impacting more business slowing business Limoneira’s is of that’s So fruits as that's that down the progress Calavo’s from really of sourcing

Eric Larson

of as result tariffs related that's or coming issue? that's tariff Mexico, And out that a of the of well region a

Harold Edwards

and but with they to it it’s It It’s the relations trading and grapes to relates with between complicated. necessarily these apples. partners trade trade as potato of direct avocados as citrus, has not grapple do and/or intertwined

Eric Larson

there a in up little moving mean, impossible so also. parts tariffs. these is I many to It's keep almost

all right comments. So guys, your thanks I appreciate

Harold Edwards

any Yes, final unaffected outsider just these and of been in, comment, thanks looking has from an impositions. great the business tariff question. Limoneira's by citrus really -- for virtually It's

Operator

Lake to Instructions] [Operator We’ll with Street go Krueger Markets. Chris Capital next

Chris Krueger

any of additional oranges acres or or In about there or your Is lemons. or acquisition you any planting your release, presentation potential XXX talk an adding in of stuff, press planting non-lemon and new plantings?

Harold Edwards

seen San oranges like blood overtired of them with further probably cara of and our newer So But in varieties grows just Joaquin pulling is acres replacing -- but new another the mostly XXX oranges navel but another specialties planted, Mark plantings. cara. some and answer what out yes, certain acres, also expansion we've and

Chris Krueger

you can us then Limoneira at harvest project, how remind all and many that And acres was avocado?

Harold Edwards

avocados. So both they those approximately productivity. I acres was avocados, of development removal impact cartons the to I slope and And down lemons that that production, out is we’re I the XXX,XXX impact about of blocks of pulled was -- about actual think orchards that their about at beginning think and if Limoneira it of older in real-estate recall, were productive out XX-XX of of Mark, harvest I has But comment that the -- XXX lemons in be thing would pulled project lemons. And it one a felt on lemons. acreage, of biggest on between been

Mark Palamountain

It's estimate. included our in

Chris Krueger

-- -- you've get had flares wasn’t or Well, you heavy guys, of back was you an of much a in the effect to in the area, now your couple on go that analyzed it through. to to better December, impact? quarters go Have there of

Harold Edwards

Fortunately, a was loss in that some fruit XXX necessarily it that way. total, of an acreage was wasn't perspective, acreage about probably had acres, tree new in was some Most actual from loss bearing. or acres, We impacted negligible.

And the so finishing and on are spurts, and and is have really where in trees it to which eyes and kick are spring it. the aren't keeping make going what to as we've what our gone going flush, growth really trees actually through make their we're

whether so of We ahead insurance it's for applied and that, say have of gone to relief looked some get some that. we’ll and really on

some get I it. think will we of

houses And down or of We’re Canyon. workforce And replaced. process extent as the we lay Park Wheeler Trailer making XX not in mentioned have then lost before, to in of plans it. now the sure of our course, those plans the we’re in

Chris Krueger

on Limoneira. to impact if or in new new at requirements the put a believe -- project? see regulation any panels I your law it’s homes. Do you on the that new don’t question related from California, I harvest Last know on solar

Harold Edwards

and interesting. had new to wired Still sure assessing was But legislation residential new already California, goes. in It housing solar. in this I’m that not the mandated far California, it’s how accommodate construction and construction, legislated back any impact, to actual be any

the that’s So here the new only houses. part solar now need be the installed panels on actual to is

it’s to -- call it, to X%, on initial learned to and is we’ve of another, the Our everything add read cost that X% XX%, going houses.

expensive see. And our direct absolutely in because guess been that we impacted From make this that know reduction of as market had terms the housing lots, manifest the that for to end to finished don't starts much at the underserved in it is from relates a what the another thing user builders Ventura level However, to we've pass selling we feeling perspective, builders, be as dramatically no going that continue environment more fundamental these We've buyers that housing is as the homebuyers. standpoint lots just will operate to along to will we’ll how will our just margin zero. itself County. demand new for in

Operator

will follow with Capital. Gerry from up And we a question ROTH take Sweeney

Gerry Sweeney

question of larger fire. avocado I the am from the million in for fire, terms variability like it be be lot back with in around is associated we bit, what you of year, understand we to make Just the crop due one, winds next crop the the on avocados in of crop. or you that avocados to… season-to-season, lost -- mean that X the trying or planning larger one just this growing to a pattern. of Does X.X time year tree think a this for do was based what will Does But or I supposed sense million go some the to quick little lost and a these or

Harold Edwards

there no was rule communicated pounds. because trees. the off there What talking what the timing seeing, fruit winds fires the and was can XX% thumb. and into were for And of guiding is blew the we believe Gerry, our does believe thought then XX going had approximately when have were we is set really about we tell avocado what we But that after from and we were we XXXX what in production. when million you we we’re we’d fiscal the we the of just winds, It and out season when we never hit, the before original of

So that took to pounds we X.X of the down million X million since guided production pounds that us towards. to

the the properties right lot fruit next but year. perfect forecast around it’s in on -- of the really for for the in of up go this, we And year. a blocks too throughout spring there's avocados trees way now our terms and conditions hanging setting next now, As set and it's bloom early right of been to small

it's say, which love that and hope we we're good But bad really preliminarily, will harvestable. eternal comments start, early a to like, it's off on big between to why just fruit the business, we play that that’s’ going too make way know if to is now it's but be also variables as we start of actually December our a springs to looks that too. now, it when -- any next all were because off it, So out we'd right and

the looks the for like, the and cleared XXXX we've least promising. where looks set it hurdle, at first bloom very So

Gerry Sweeney

parse model Okay, my to year, good I and Thank that's out just a it. And so it’s you. next for appreciate helpful. way

Operator

have questions time. we at And no this more

So any remarks. to Edwards the I call for additional hand closing Harold or back over

Harold Edwards

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

Operator

thank does We for conclude That your conference. today's you participation.

Limoneira (LMNR) 11 Jun 182018 Q2 Earnings call transcript