LMNR - Earnings call transcript Q4 2018

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Operator

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

John Mills

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

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

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

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

Harold Edwards

Ranch finished our and and brief the our business weather-related Mark X moments. we of Thanks, results a provide despite financial John, the This the call, After everyone. One leading Citrus position fruit revenue the accomplishments facilities. expands outlook and and in United for full-line citrus. World income and will detail, fourth Chile; States improves one year-round Oxnard in I'll the your companies review of and which of increases Lemon I San our will an of California citrus assets supplier with I fiscal We and San Ranch further scale the globally California. On and us our opportunities. a with our today's our help our questions. Both related few related record open in Lemon additional Associates year, temporary and year for La two the initiative is also the XXXX. take acquisitions to share up grower Chilean in successfully that, quarter, Serena, packinghouse Pablo in The provide net assets third-party of and fresh closed we as address year call long-term challenges with acquisitions: Oxnard marketing packing creates areas. and on across operation will will Oxnard, and in in our progress from overview fiscal update growth XXXX more of assets, afternoon, good competitive lemon updated Limoneira's finish a all of packing then Pablo

equity and acquisitions We in will will continue starting more to acquisitions. citrus footprint. detail, we additional $XX global year Mark but our expand agribusiness. positioned successful for balance has with Shifting discuss our sheet business look million as segments for raise additional this our well our to

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

to will by also XXXX I our consumer-facing X focused mentioned have on share. of trade marketing capacity. increasing X as acquisitions adding our earnings overall And just We of part are strategies be initiative offerings. citrus fiscal the global both in larger World as accretive these and are combined The our we platform and to of in packing year leader of approximately these leveraging These investments $X.XX all a Citrus well per $X.XX One acquisitions to our areas. bolster become

occurred despite us continued business, events achieve the lemon revenue and and increasing of weather fiscal to XXXX. of strong Fortunately, earnings, the number pricing enabled geographic in that temporary year revenue-generating diversity, lines record

profit this This quarter of share. factored share price window per full first rains per year harvest to a we an During guidance. on and expected quarter that our the and over fourth by X into quarter persistent which we of harvest $XX is XXX,XXX cartons from to caused first the harvesting delayed quarter and operating into in been earnings in be experienced the XXXX October resulted at had $X.XX the impact slip the good has hurricanes average District $X of million moving weeks, sell an The news in recuperated two XXXX. fourth the $X.XX will lemons,

harvesting the benefit expenses record did offsetting quarter without we However, in fourth the the of those receiving sales. roughly lemons $XXX,XXX of operating from

the In be third yield our year-over-year lastly, to due We in heat wine wine quarter. expected by avocado grapes, in the And of per a knew a year March, we earnings this by last discovered rains, earnings to we and third we XX%. which We going lost $X.XX volume when quarter typically which grapes our grapes the grapes reduced be for extreme said to the fourth the addition lower was quarter was harvest were breakeven tonnage per to by $XXX,XXX the than these what was roughly week call weight October, share. impacted late the the in in affected expectations. down of is frost on about share occurred September, as on that and roughly

over be XXXX enthusiasm Despite expect expect objective XXX,XXX planted minimum in acres and new long-term we and XXXX, intact XXXX, fresh have fiscal agricultural year the lemons. to Beginning the full the the our revenue by be will avocado lower cartons And acres, has we full recognized I'm we’ve fiscal currently of but contribution be back with to in strategy XXXX. secured over to recruit uncontrollable our XXX,XXX of year expected in another expected, issues, with XXXX. approximately and in normal bearing cartons remains cartons As pleased business outside In weather-related from established changed. regarding XXX acres nonbearing acres not total date, momentum we I an and bearing XXXX. X,XXX production to lemon to as X,XXX X,XXX to by have that today, XXX,XXX say we growers, XXXX,

will XXX million acres acreage an X,XXX additional level our acres, plant and cartons, expect or the our increase years and lemon X current productive. next of X.X additional global XX% as to fresh acreage we nonbearing supply by these this approximately additional to annual cartons Beyond the in planned become lemons XXX,XXX from believe

growing fruit. by and this, In increase manage are expect grown sales citrus States addition in locally our business South function in marketing we United Argentina and grower the associates third-party a in and Africa, have own for Chile to fruit Mexico. Chile, steady the and sourced Globally, we now to

receive culture. Limoneira our quality as As a that business as of recognize consistency service levels the lemons well high they are fundamental part with our grows, our of lemon and customers

and now of at well. of harvest Group between real Turning The Lewis our segment. Limoneira progressing to for development estate the partnership is Limoneira Companies development the

project, is was has received that X- the flow Over are and life to expect closings the venture cash XX-year homebuilders, of the in joint first from XXXX. including million received estimated with the calendar lot begin lot fiscal the summary, we receive venture was of we Lewis joint of year national The year XXXX. anticipated realized approximately to from -- throughout $XX when $XXX the deposits million, progress our extremely formed. to lots sales of pleased In with initial quarter

towards Mark. progressing and agribusiness our turn that, citrus. leader the I'll expanding continue to goal positioned with XXXX high-quality entering in becoming are call fresh the We of over to And our now global

Mark Palamountain

an our story, view is business good will those driven Harold, revenue that like our prudent and new we annual Thank our seasonal afternoon, to XXXX. I of reiterate, from full varying of quarterly periods the harvest to October I'd financial the is for on for to due basis. therefore, not to year and fourth year-to-year. the you, of ended business, our it nature believe quarter results by details basis, discuss a everyone. XX, some And

the of sales million delay for million slightly no fiscal zone of Agribusiness of or $X.X revenue development harvest. For XXXX. fourth year fiscal the desert the lemon the approximately wine of to aforementioned average XXXX, timing quarter rains quarter fiscal in fourth into XXXX XXXX, the were decreased for $XX XXX,XXX includes of carton fourth was delayed quarter year, persistent same of in total the year XXX,XXX due fourth of during quarter a previous period XXXX real fiscal revenue first Agribusiness the year. per fresh grape $XX.X Approximately net quarter fiscal $XX.X the of compared of of cartons fiscal the the cartons compared with harvest of carton operation Rental fourth to the from XXXX smaller-than-expected million quarter and primarily at year quarter million of million. year quarter sold fiscal fourth in lemon million estate were the to quarter million the in in $XX.XX There fourth lemon the price result during fiscal a year $XX.X a to sales of revenues per sold harvest XXXX lemon XXXX. a year of fourth price timing compared at lemons revenue was the the XXXX primarily yield. compared to the during decrease average year to year $XX.XX $X.X $XX.X fiscal last revenue

was fiscal XXXX the to with year. The year year. of company Crest we the and XXXX, million recognized for XXXX. fiscal $XXX,XXX quarter impairment prices million development the fourth costs revenue of similar quarter fourth of for XXXX. of of the Operating and the fourth million agribusiness anticipated, loss to $X and fourth to growing $X.X in avocado fourth XXXX, earnings $X.X stock fiscal and the fiscal in respectively. the the based common of for sale fiscal development $XX.X quarter expenses a estate in include orange fourth charges million increases volume expenses. year Growers, $X.XX to and of the GAAP period fourth and to items million a primarily in expenses previous year and XXXX: $X.XX estate the minimal the other increase the higher fourth approximately lower fiscal Real were gain diluted partially A year year Pacific of real million to period costs common outstanding fourth the associated orange for and properties. for fruit was primarily million quarter As includes fiscal compared XXXX. million, share sold, million following sold quarter XXXX loss on XXXX packing nonrecurring our recognized or of fourth year in compared a quarter 'XX $X.XX of fiscal include and procured citrus $X.XX the the related fiscal in Inc. same the of by Total revenue $XX.X of in the compares average fourth operating noncash $X.XX in Calavo shares to stock preferred XXXX. after fourth fiscal quarter in was loss in $X.X of costs, oranges costs of of year of quarter Sevilla XXXX offset dividends year. same to to XX.X depreciation The year realized costs, were fiscal $X.X growers to of Maria weighted year quarter million fiscal XX.X for revenue $X.X Net last revenues per million fiscal Net was quarter year Santa of share compared Cost year third-party expense. applicable XXXX crop impairment XXXX and year and of of in costs the compared in during year period quarter last attributable share of attributable diluted quarter million realized to $X.X for compared the $XXX,XXX same estate year harvest fiscal during in fourth diluted of of diluted the fourth or loss in quarter fiscal on million quarter XXXX per fiscal was agribusiness year fiscal was Specialty assets fourth quarter expenses real XXXX; per

Excluding fourth fiscal fourth quarter per for these loss of shares in a $X.X million compared million nonrecurring in XXXX the share items, was outstanding. EBITDA fiscal year of of the year was XXXX. quarter same based of loss adjusted of on year a fiscal to million diluted $X.X XXXX $X.XX period Adjusted loss the XX.X

during of nonrecurring balance dividends year the recognized year. company of Turning $X.XX same decrease X% of to the last million in to in in deferred during the GAAP compared Sale same benefit compared tax per after Act for fiscal Santa in year following Maria include assets year applicable Inc. income XXXX, a year share net compared to income diluted increased the million $XX.X million its the realized XXXX. with stock earnings XXXX: the XXXX. gain income $XX.X impairment $X.X in a of of or $XX.X last fiscal full million to quarter noncash Net an XXXX $X.XX period was per tax million per $X.XX of Due fiscal Calavo million $X of diluted to results. period was for XXXX $X.XX the onetime year quarter fourth fourth in XXXX compared A to year $X.XX year. to Cuts the to Jobs $X.XX stock Net period preferred million year $XXX.X Tax income per same was XXXX. last during share fiscal a estate $XXX.X million year. the diluted income for and Growers, share fiscal same for net share period fiscal was liability associated XXXX. Revenue or common $X.XX per items noncash was of the income operating Operating million quarter fiscal our for fiscal share diluted diluted realized year or real the the of of first fiscal XXXX

on $XX.X outstanding. the year. Adjusted year $XX XX.X to for XXXX year $X.XX based XXXX was fiscal Excluding three million earnings diluted in items, million compared fiscal last EBITDA million per these same was period share nonrecurring adjusted for shares

and of the million compared used and debt we of $XX.X Oxnard XXXX. the Long-term and to related of at back sheet. offering's Pablo $XX Before packinghouse, pay of debt, June for XXXX, few June a XXXX, I of certain gross X,XXX,XXX stock approximately $XX our offering hand down decreased purchase million. October July of proceeds over proceeds fiscal the a to to comments public San XXXX, In other purchase balance land common In call offering end $XXX.X share of XX, Ranch per of million at on we total price public as assets. a to completed Harold, our shares Lemon's

Now -- back fiscal year turn Harold call XXXX the outlook. our discuss to I'd to like to and

Harold Edwards

Thank you, Mark.

future value strategic business, of and pack long-term we deliver We to and expect market the build more in shareholders. We volumes continue of in-house infrastructure for continue confident our our that efficient well our work able agribusiness growth expansion from and we to as trajectory will to citrus as have the benefit place remain growth revenues we third-party to as in additional through in are the acquisitions. orchards to

Turning to our year XXXX guidance. fiscal

and per per of X price million of to approximately avocados of X.X We X.X X cartons pounds sell to average lemons pound. million carton expect approximately between $X.XX at fresh $XX expect and million million at sell to an

We XXXX. million. EBITDA XXXX operating Fiscal expect income in to $XX fiscal be to XXXX be for to million year million expected of is year an for fiscal approximately compared to $XX to $XX million million income $XX the $X.X range of year operating

changes to XXXX based the share outstanding. $X.XX statement impact in fiscal fiscal share we stock. Beginning We per value required this mark-to-market in per XXXX are share the of of our fair diluted sheet. year XXX,XXX for are XX.X year potential of previous income shares reiterating Earnings investment Growers of on estimated earnings instead $X.XX common fiscal shares Calavo year the our of per our being guidance XXXX, diluted Included in accretion over an our on in joint ventures $XXX million excludes approximately completed share at balance year XXXX. of underway, flow measure per of to calendar deposits sales are X year on and guidance joint to term, during venture site is to Limoneira project from the years. XXXX next close $X.XX recent homebuilders. improvements received X quarter to in first cash the the The acquisitions Phase the approximately is expect from fiscal Harvest lot the lot XX expected from national in million XXXX. $X.XX we Longer fiscal value

XXX remaining full-bearing in approximately reach from to acres have and XXXX. beginning to bearing full X,XXX the acres and acres full-bearing XXXX of XXXX, addition, status status XXX In -- we'll reach

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

This grower have industry. to expect I'd acquisition doesn't up also increase third-party to questions. fragmented to call like potential fruit. is Operator? in with We the that, And highly your opportunities in growth a steady our and open organic all include

Operator

[Operator Instructions]. Bienvenu from Ben And Stephens take question first Inc. today we'll our with

Benjamin Bienvenu

million of the to on between detail I cartons to wanted X cartons million provide in to and with of mix bit guidance a you XXXX. within guidance? your of little Limoneira X.X respect ask carton third-party that Could cartons lemons

Harold Edwards

Sure.

is shift from towards the XX% So at it, when our cartons. the of XXXX, the, acreage. X.X XX% we will going growers, be be third-party provided come heavily weighted call to million cartons to more outside and expect by own end And of

Benjamin Bienvenu

then the why great. the little a talk great third-party third-party about has growers. to to talk talked growers And recruiting recruitment you about, of Okay, Oxnard your you Harold, more maybe update. bit in you've your that successful And just so then been? been how of retention growers platform. Can That's hear about

Harold Edwards

Ben. happy be I'd Sure. to,

So and structures. the recruiting in to service outside same good those marketing years the growers economic at returns excellent providing customer years and faced but of to balancing is loyalty combating the superior existing that providing main time growers, we dynamic the grower of principles

in value believe these many these of service we're of the in will but so shift form concepts And facing grower growers greater returns. bringing of that a we we're for greater new paradigm growers, for provide also somewhat as greater

usually outside I level are that an efforts out our we superior exceeded word so those we've returns that in amount the marketer independent and cartons, our set competition expectations being be helpful. sales in XXXX, cartons to we -- track sales though, long, returns in for against XXX,XXX of in to a as other providing competitive out because we our our extremely superior been grower and That terms and as grower process, the we successful gets fruit to being as we very excellent effort been of in continues We our word-of-mouth those successfully has our compare were it's of XXXX and seller became recruited our at in to own at slow, driven since and recruiting years set said, in And earlier, perform growers, and reported XXXX and season. That years to drawn-out our we from growers. recruit. competition outside to as XXX,XXX rewarding record returns loyalty And growers we system a said, recruit out really of marketing actually our marketing continue competitors.

Now outside outside we we we're season as the but, a on that believe we and million bring our specifically, sales to all on extra growers believe, Lemon that growers now, Oxnard our Limoneira's growers acquisition, and outside from that, level Oxnard Lemon were affiliated X retention, more should from into prior an we marketing into work go the XX% XXXX with about acquisition. previously on of and right cartons system tracking the

Benjamin Bienvenu

to Okay, bearing great. Last to to does me. is how of How $X.XX recoup your delay per XXX,XXX price the the XQ harvest shift $X.XX question cartons? market of the have that the of from the supposed ability much -- share, with XQ much for for to on lemons

Harold Edwards

We 'XX. isn't think neutral going it close, Mark? as and 'XX relates QX to QX it It's of pricing fairly pretty be to of is

Mark Palamountain

Yes.

Harold Edwards

a just basically increased pricing. QX QX We're shift 'XX. from of into any price volume banking it's So on not

Operator

Anderson Next, hear we'll Stifel. Vincent with from

Vincent Anderson

lemon international include XXXX your lemons guidance Does at all? carton

Harold Edwards

additional It of And it does some at you're that a cartons looking not. to be at Chilean there'll approximately looking worldwide, XXX,XXX XXX,XXX X.X X we're outside lot But basis it then approximately million cartons. And whole party. from be would to million -- total operation. from third our from if

Vincent Anderson

international Chilean even the your the how make maybe think going your have So around it that, the think volume increase and and you to -- should U.S., think and when do plans into or price about price modeling easier? we we When margin you any you gave this market disclosure about volume. operations about year

Harold Edwards

Yes.

increased and of this for be the more see where we can visibility putting year, together. think everyone Chilean a worldwide -- see I and the higher-priced as obviously, to of so see can sort if that's some is quarter first margins you get to that we on have do the can one Pricing, into But that. get try and so homogenistic we there. we'll we'll benefit so call the lemon, -- fruit, potentially, from, model our summertime we'll where that more [ph] typically we're clarity bunch which goals is going the

Vincent Anderson

Great. And think any that just effects on that, down answer following concerns are anything right Chilean that I seeing this seasonality the now given know in you but there is I sales, the to you? from the port strike or

Harold Edwards

now, but on got hopeful Right any we're eye impact speedy our seeing and resolution. not it, we've it a on for we're

Vincent Anderson

most production fit U.S. if XXXX in were flat. could lemon year-over-year I so calling about a are recent decline about estimates, And Great. next in USDA's the for one more, X% think, year. I just imports

flip So be those And saw market? demand XXXX what of shortfall. with you're numbers imply with in Do looks average amount less it the year-over-year, selling does even if or seeing we pretty your confidence flat XXXX supply good heading that guidance? like more a fair price we in should into a

Harold Edwards

till November To is approximately bottom up is last in about into California lemon. X to so the Then coast, and And we that's that's year-on-year very XX% line, hit And winter then seasonality August, to desert XX%. from to the the anywhere area it go come July. down XX% shifts to the that Valley, we somewhere we crop got call it, by crop growing up we last begin seasonality, down in XX%. Joaquin And all it, in the -- year you deal and San Vincent, March. year in does. and distinct experience the way different directionally from March every microclimates, more districts different it that them. District X, the through is components bit year. all July, sort different The It that and have granularity, believe that's seasonality a they California of by up are with provide the heat whose severe know, and was little And that size as

keep So production that that guess, from corroborates in drive We right. X%. or That's of do and early California all I pricing we USDA Arizona said, friends great your we increased that and on some to of in always our Chile that take advantage expand will Argentina in But idea businesses look pricing. participating sort have and the by dramatically summer this see expect our imports we and total spring expect to of that. And it in that, came down the And year. forward of our it also probably the is of late supply that months. level to eye the next to

Operator

We'll Buckingham from Research Eric now Group. Larson hear with

Eric Larson

of Just couple questions. a

December, the balance First, where are on right the just quarterly your -- on base? day sheet is markup current of price of that now your value of shares, Calavo is that the marked as the closing on last the

Mark Palamountain

Yes.

Harold Edwards

right. That's

on Eric, color that. a little just so, And

So Calavo know, in as significant made investment a you shares. we

And $XXX share. for is think basis directionally $XX stock somewhere it's share. a as a original high to trading a share, as the I $XX Our ran around

go So and what we'll need to that... where see back do is

Mark Palamountain

on It's XX, XX Eric.

point. about that at roughly was it $XX So

where is that we so today. And are

Harold Edwards

Yes.

Eric Larson

Okay.

-- just it why income It know statement. It's tax just is of they're lot balance there's be will That's noncash people rather make your economic Is on there cash -- or also consequences markup sense. But correct? forcing I don't that or non sheet. any through anything. impact. won't that a down doesn't still a -- no than that a the So the to be put P&L

Mark Palamountain

Correct.

Harold Edwards

Correct.

Mark Palamountain

Yes, correct.

Eric Larson

answers some verify I all that knew I big the get your to don't sudden it. sure the make a you've goes to got that there wanted that in balance cash a just to want sheet. cash surprised just we I I and of -- tax that, assume but liability

Harold Edwards

mark-to-market other companies appreciate I creating that through a traded own publicly questions because ultimately, will ownership each have companies or quarter to ownership P&Ls. noise, that, the in need No, more it's their lot all

Eric Larson

it more earnings too. just creates do is not Yes, volatility know, as guys cover that you I needed. Calavo, And

price where So familiar -- am I and whole with gone familiar the I'm with has stock the stuff.

that we sure were all So page the that. wanted with to same make I just on

margins little quarter. sold -- fourth like looking of quarter the they in your Is again again, in at a fourth actually type maybe your So that were that margins what the that pretty it looks lemons, Harold? were below good, is quarter on -- bit cases your you on third mix

Harold Edwards

it was our and was margins was what Argentina great great But a in couple coming the out imports know our of from also great it driving was, Chile of it coming packing. packinghouse it things, through performance Eric, so margins You and but Chile.

for things helpful So were of very the combination all us. those of

Eric Larson

it. Got

when look you about a few we've well Mark at and think Harold, quite about I've So it this times. talked with your as packinghouse, talked I

that leverage You, time, had cost think positive. a you're assume more -- is what some it's you means But cartons the carton hundred it and savings say, put then pretty what additional or it that thousand And would in EBIT couple up in I facility. pretty even don't really facility? some an cases per putting, about let's your we've margins fruit. XXX,XXX by that if at talked one international that -- ever packing now I cases aggressive through set through

Harold Edwards

But careful with incremental overcommitting, sandbag think that service. I'm by think And the to a we $X.XX pick directionally -- more providing In internally, where is experience own going that, fruit we So we to think I this. to margin our can pro of we've up we be we're of But taken for packing we at marketing it, that up. other our margin year-on-year third-party there's be words, hopefully, risk that number. that. formas that there's in until want careful. $X.XX But try than

Eric Larson

of So can't shut regular us questions. -- Avocados, projected timing Okay, the to X.X that something which pretty this cash of to that have insurance you is the look much? the benefits get for the okay. of insurance timing little final year do then companies? should there's definite effect that are USDA, of my Does to a that produce? a you is couple how payment get And think with of avocados me kind about I gives at you process million down, we kind gives insurance whole now when from base this it well, -- here. a that for of this, mean, the question

Harold Edwards

great this begun a our wrestling one auditors. I've and already question the arm that's with over issue So that

of going which going there'll be insurance the to commits to and months date to those dates potentially two them. made, probably that. And that that our record at that pay. an typically record believe make will the to fourth announcement they dates. quarter can that October-ish. pay There's We be there's And actually to our the is the preference made pay, so be -- So to actual two commitment are be company the in when between in to we important then XXXX, date payment is have and late that amount

Mark Palamountain

October. Yes, Yes.

Harold Edwards

from insurance you actually sense commitment company? a we'll have get the of the Do when

Mark Palamountain

the versus where true-up it's typically then at harvest we and Well, the end we are the guarantee. of period,

we're And so most done times, by July. early

So by of should have we commitment theoretically yes. middle July, a the end to

Harold Edwards

hope I questions. your answers that

Eric Larson

period. Yes, be going -- a to strange a little this from is be weird will that it

account has will you made end commitment. of that for a the day, once company the the insurance at So

account full for that lump sum occurs. in quarter You in which the will that

on -- onetime will quarters. spread just a will It be it it future of won't onetime a across You future just recognition volumes be income?

Harold Edwards

That's in be really we below think well avocados what kind to giving I opportunity reiterate for and are performing row, an consider here Yes. of is what an me is, to the that performance. the second that you're And a average point main right. our year

it's If to all adjust do future avocado anticipate to important in XXXX, benefit to up add And years. us to should of so really for to amount significant from a for understand back -- we in And to without XXXX. normal, back was everything guide being we $X.XX that from "normal" that XXXX performance. of return done any you if that $X.XX

Operator

with Krueger question. Capital Street next Chris Lake Markets our has

Christopher Krueger

your and egg you of at thoughts in impact Just know have Harvest any business if there's the been there's a couple are Can of weather, fires business? kind of answered. that. been things ones. like what Limoneira in and impact my just volatility Most I with lot with a on your us questions California of the quick on have especially give the overall mudslides,

Harold Edwards

results was agricultural to houses I properties. negligible. misspoke. some the have. workforce we and some Thomas with the actually by XXXX right did though, some guess, as of damage So financial was the assets were number That big insurance said, Actually, claims impact, actually last burned Fire that And year, damaged that a our we XXXX, file you in the on on the XXXX. being fire impact I recall,

down So south through Los on all Malibu to about started south was negligible. County. Angeles and recently XXXX the impact the and us of southwest The burned heard actually fires actual into just that and you

spared situation. were that we So from

mudslides referring now. really occurring As that's biggest you're the relates problems it where that to right the are to,

very, the it's is we'll around a relates raining XX And our very we very to start that As There now. some the so that concern California right year, of welcome. rain have end which so We But are mudslides. to our should is inches rainfall of as wonderful areas had believe agricultural speak, it far, operations good. you in for watch this by week, almost year. this of closely

Christopher Krueger

All right.

it, is question understand initial like than that? I If correctly. that's later it for any if Limoneira. months understand If closings looks couple your previously the are other is Harvest on of it The reason expected, at a there case, I

Harold Edwards

Yes.

actually months. So weeks, not it's probably more

end target a longer homebuilders, our year little there back, first place. infrastructure made the was some we of -- the put bit to and though, the certain the the had quarter. going we got fourth When slippage Although areas as from in in was being of fiscal commitments it actually a taking deposits

because to that been requirements makes days slipped we to maybe. XX has to, it to stubbed determines so lot delivered has it's by But of there it mostly and And XX that each so lot weather-driven, And can those homebuilder the deliver Chris. certain able haven't it, rain, lots. roads call get a done. get that of get the into of utilities the we in the What

week gaps in we the the call rain, next, in that will X. the or happen it, believe With

now. those short see you'll order very so closings And in

Operator

Stifel. from Our follow-up Vincent a Anderson will question with final be

Vincent Anderson

had more. one I just

on us you something send issue down that lemons to and could So Argentine more we some the give they I that next could of CBS news U.S.? an the that? update Argentine persist into they How into shut of if should lemons the that? Is EU? found all you disease. year have going think about think Have any

Harold Edwards

say to Europe concern this a outlet that It because is much point. early a of fresh Too great for is at citrus Argentina. from

whether market that. if wondering say early too this or resolution in get going point, whether the So on U.S., I eye of there's sort whether the to to was be Europe closed it our we to have it's question think is the At to keep would diverted indefinitely there.

to So very way point, predict early which closely. we're it's too this But it's it watching go. to at going a little

Vincent Anderson

And have so the the move where get you to case, this worst can you Chile the big in Argentina lemons established you U.S., from networks shift U.S.? EU to from do balance if

Harold Edwards

happens. to the can That taking is consumption, level outlet we markets. what I lemons markets in aren't will one purge crowded the just them that Chileans or with great to And ship which very keeping consume risk were good be export that think just them the valve of we is biggest Chilean the not was to have remain attracted so at there, have a into and But economics. Chile opportunity, domestic export that the we event Chilean viable commercially reasons the in the

Operator

this will any for closing Mr. additional or Edwards, turn session. time, That today's conclude question-and-answer will the call I Harold CEO, At over to remarks.

Harold Edwards

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

Operator

That today's your you conference call. conclude does Thank participation. for

You may now disconnect.

Limoneira (LMNR) 15 Jan 192018 Q4 Earnings call transcript