LMNR - Earnings call transcript Q4 2019

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Operator

Good day, and welcome to the Limoneira Fourth Quarter 2019 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

Great. you. Thank and XXXX joining conference everyone, quarter for you year fiscal call. thank afternoon, us for fourth Good

On the Officer. time. call quarter out Chief should Executive today today access fiscal are Harold and have X:XX 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

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

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

Harold Edwards

will detail, then that, more financial We John, up all After across a today's Mark XXXX. Thanks, of and overview I provide of areas update call, finish year on business will XXXX. I year our our outlook in with good our the XXXX and XXXX. review as fiscal afternoon, we we On results and operational fiscal in questions. open enter everyone. results will take an the and brief progress reiterated call your fiscal record revenue achieved fiscal our in for will

year However, and reduced weather throughout utilization lemon avocado uncontrollable our pricing affected for year the and events fresh XXXX. and fiscal orange crop dramatically

due globally, record the the and to affected for to to is the due fruit, fiscal XXXX weather to volumes It rate as come. translate continues the to grew expect volume years events overall market point lemon fully industry expand important that record fact the our in industry not year continue increased overall very many crop. year and orange tree lower bottom throughout did expected our the profits. year Our that lower we Also, of part to we was that into offset for of our a that lemon we strong sizing out and utilization lemon Unfortunately, line share. fresh the pricing

fiscal California, last to quarter still this XXXX, strong and see we positive increased of will first our were we XX% challenges winds I generate the the believe on are now we strategic year back utilization have I'll of starting per fiscal shift segments fresh growth experienced XX% adjusted adjusted that our well-positioned a in XXXX, lemons, full review effect, year. in our could to to the this our EBITDA, lemons quarter over ranches closed business able we during now pleased could am our enter in a of we to this and low overall of from the impact year. EBITDA a rates which last strong We to the year prices harvest has with negatively return acquisition, Southern we to with third portion improved, a carton affect of grade and XX% temporary Even pricing increase in and a As year range later faced discussing grade agribusiness. with XXXX. year. share very of continue market fiscal our results

expansion few growth We've made customer our base expanded our channels, investments and improved this chains. marketing positioned and that sales utilizing capacity. to store over and grocery packing able years, important leading us marketing more increased been leveraging We've we trade international and focusing to customers, our by and efficiencies. and Over the on strategies past restaurants XXX have have consumer-facing for including achieve domestic long-term

lemons, venture formed reduced the XX% goal fiscal In new XXX citrus Trapani this Argentina. in from seasonality May us we've venture, FGF different this by expansion operation a locations, joint in with next X,XXX become full year lemon customers X,XXX have we of Trapani, full agricultural great Also, but cartons year. and now be to a approximately XXX,XXX of X bearing global a we our over significantly XXX Fresh, the XXX,XXX surpassed bearing these cartons we in by an acres remaining acres, bearing supply. nonbearing sourcing giving we for XXXX acquired family-owned XXX with XXX closed over expect by our multi-generational to over with of full fresh interest acres planted another years. acres which securing end of become by estimated XXXX. currently to are bearing XXXX, the XXXX, by In citrus We fresh expected A to XXXX, of of additional example days is addition, XXXX. full be joint the In global carton acres

of lemons have to as in we additional from increase planned nonbearing this million an additional cartons to X.X by approximately acres, X,XXX plans these supply lemons the next level become domestic fresh Limoneira-owned years productive. will additional the and XX% acres of X our XXX Beyond cartons of acreage believe plant and our XXX,XXX current acreage

In have we expect third-party to addition, steady grower fruit. increase in a

year fiscal was previously extreme production to heat Turning XXXX, our announced to down affected production. that the avocados. due In

back As we'll XXXX. in expected, we in fiscal normal XXXX recognized be year to minimal production but avocado revenue

the our in deposits report for approximately to additional in flow I'm which X project received units improvements residential an fiscal fiscal Longer to expected closed Harvest million Harvest happy sales representing development X Turning at development Limoneira joint XXXX. ventures is KB The between of Homes from completed, quarter at Phase of now next Lennar closed estate substantially Group over track. first year partnership lot of lot are on $XXX that real from include and and segment. the we XXX in in is X,XXX term, Companies year the the and XXXX. XXXX, XX X the to to cash Initial Lewis Limoneira the projecting recently and fiscal we homes. have been Limoneira site years,

in The a of $X In closed a and August of the of the XX, California. retail and received facility the fourth during located quarter. approximately in addition, fourth Santa we on XXXX, sale in we store, station, multiuse quick-serve Paula, gas gain a announced and convenience net recorded quarter, restaurant proceeds approximately million carwash, transaction consisting $XXX,XXX

a of The of were in for full quarter. conditions, XXXX, at Terraces while turn $X $XXX,XXX a the coming $X.X diminish sold And in year Mark. inroads approximately solid to with gain and it summary, call for the unforeseen now does I'll hurdle that, Lastly, affected by have we of temporary fiscal proceeds the in position October weather and received us over Pacific our million. we years. results growth In profitability is XXXX improved We made recognized to the net million not fourth Crest and approximately

Mark Palamountain

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

lemons For lemon lemon compared prices The volume fourth higher fiscal compared of the XXXX. fiscal lower net $XX.X prices a revenue lemon fourth Rental year. were the year previous year at carton $XX.XX million period $X.X quarter the compared by the quarter $XX.X XXXX. revenue year. fourth to year. million revenue by during at lemon a the fresh $X.X operations due fresh the average XXX,XXX fresh price quarter for revenue total to the Approximately XXXX, price million per of offset million was primarily increase fresh of of quarter fiscal of increase quarter average was fourth lower and XXXX was offset quarter the similar in XXXX, year per utilization. $XX.X XXX,XXX total was volume of sales quarter year $XX lower includes of revenue last to of of from The approximately fresh lower year Agribusiness to in the fiscal $XX.XX compared fourth fiscal resulted million fresh of higher million same of lemon carton, fiscal in cartons fourth last during during sold net XXXX sales and fresh utilization. year million $XX.X fiscal lemon to fourth Agribusiness cartons sold to

brokered in adopting Additionally, lemon result fourth quarter standards. the new other recognition million as year approximately a and revenue of $X increased fiscal sales XXXX, primarily of

fourth of recognized costs XXXX recognized of to $X.X The fiscal company minimal XXXX, to the quarter fourth of revenue attributable new quarter of sold last and year to due primarily wine fourth our $X.X revenues. fiscal same of in to the oranges fiscal million and and operating to million The other million year the the avocado was applicable was XXXX. the Fresh. the lemons that and crop avocado to XXXX fourth loss due fiscal expenses and citrus loss packing the dramatically $X.XX year revenue volume quarter quarter Total to fiscal insurance the and fourth the fiscal was a Net to fourth fourth a million increased increased under the year increased the fiscal common preferred production fiscal the diluted XXXX in grape expenses revenue quarter standards. compared include in cost general heat brokered orange were increases fourth to compared dividends after compares quarter revenue the $XX.X for expenses cost, packed million administrative Trapani year increase of fiscal to the $X.X increased XXXX the cost, acquisition quarter loss company primarily of summer quarter for to in of fiscal fruit with Specialty period year XXXX fiscal for million related last anticipated, XXXX. due in of in year fourth sold $X.X fourth million in selling, fiscal quarter grower previous As and the compared agribusiness fiscal of per to in the of of year. was primarily compared expense. to sold $X.XX the for in agribusiness $X.X growing year. of pistachio and share and year increase for XXXX of the third-party fiscal stock cost associated fourth loss procured growers million of $X.X XXXX. costs harvest attributable of XXXX depreciation cost, fiscal was related $XXX,XXX year. million XXXX fourth payment $X.X to Operating third-party million loss effected to of of XXXX in in million quarter year recognition of quarter quarter in increase Net excessive Costs of from compared net $X.X and company's revenues $X.X a $XX.X the year The and in for

XXXX to end income million in and $X.X Limoneira XXXX, of million common earnings growers, Maria fourth year in the on realized gain equity noncash this Community of $X.XX the adjusted per A excludes and $X.X in in stock Santa net a of fourth provided of for reconciliation quarter fiscal sale Adjusted real the million quarter and of Excluding assets to on of or the impairment Calavo to diluted $X.X compared Calavo million a fiscal loss estate loss stock was gain loss adjusted the assets. fiscal Lewis of year of property the to fourth $X.XX a applicable $X.X net million at Builders EBITDA loss million of or year XXXX period noncash on stock year EBITDA compared was of quarter the release. XXXX. same unrealized per diluted of fiscal gain net of $X.X is share, which $X.X share

For ended income for XX, compared stock share the was year compared fiscal loss of net the $XX.X operating million $XXX.X $X.X a XXXX. share an the year fiscal was fiscal $X.X income per fiscal net fiscal year revenue $X.XX to $X.X Operating dividends XXXX, of applicable loss XXXX $X.XX fiscal for for increased of the year XXXX. to a common after XX, for the for diluted year to million October million to year per XXXX ended year XXXX. was XXXX the October the million fiscal Net compared for income fiscal to year million to for loss the Net compared XXXX. diluted preferred $XXX.X million

year common Calavo quarter real million impairment of of fiscal XXXX. the XX.X $X.XX XX.X Growers year a million and year. XXXX, shares $X.X a share share unrealized sale million fourth stock the same share which period $X.X $X.X noncash was the in diluted at of of income tax net and deferred $X.X and diluted XXXX, Excluding million in the of on net weighted stock A with gain common $X.X XXXX fiscal reconciliation Community million $X.XX million per stock in tax or quarter the million fiscal fiscal diluted $XX.X during first applicable to year per Lewis EBITDA during end equity diluted $X.X for period or provided adjusted noncash from respectively, $X.XX or million, shares, the loss net million of same of assets release. noncash data per is of Calavo on compared adjusted asset decrease adjusted sales its year This $XX.X for outstanding. Builders per Limoneira Adjusted of $X.X a to earnings million Per loss fiscal compares average to or XXXX, in to liability year for onetime Maria is $X.X estate the the million excludes gain the income approximately Santa associated this was EBITDA benefits in share the share. last million based on $X.XX

over Before Long-term comments as few year I hand October to the call Harold, to sheet. million debt on XXXX, $XX million the XX, compared of back our at $XXX.X end was of XXXX. fiscal a balance

We cash free in expect XXXX. be flow to breakeven

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

Harold Edwards

over this weather three line goals an bottom in avocados crops year, of effect happened our number had main on and years. our adverse hasn't a to which achieved We our XX lemons, Mark. you, Thank but oranges, of the company in

the in with as full the full as have well lemon record all fiscal long-term revenue we that expected on grew company. the our projecting year will Based of we XXXX acquisitions organic growth and for of the XXXX, the crop our we about lemons. year are year fact a been online growth, For fiscal recent for rebound excited a avocado year, our remain of tree

that guidance providing use by operations earnings and cartons are and guidance Turning fluctuations year of assets lemon more XXXX how simplify transparency operational create can and we guidance our EBITDA fiscal help providing that our to are will the earnings adjusted and share. will not we In order you share volume performing, believe better be metrics analysis company into to our understand could complete ongoing EBITDA adjusted results and -- certain remove that greater guidance forward. per believe a of items in noncash facilitate going We our per can its guidance.

Excluding Limoneira, is year to at the earnings for million EBITDA fiscal noncash in XXXX of stock in $XX Harvest mark-to-market Calavo from and expected in be $XX to the million. range equity on adjusted

to fresh expecting X domestically. believe sell global X XXXX, year expects domestic the million million million X.X Included cartons are company and to international the of in globally. fiscal are to million we For cartons X.X our sell cartons estimates lemons affiliates to

Harvest X-year million project. the Looking a Argentina in $XXX to The approximately FGF over in with call the venture benefit beyond Trapani fiscal life And cash that, open Operator? we at that formed the and flow to acquisition year expect XXXX, your I'd from questions. full-year to Limoneira with like X- joint from land up company expects XXXX. of

Operator

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

Benjamin Bienvenu

we've that things The in million help you the to about the think that's to carton on ask a wins guidance this color that point. provide the mentioned you as million it helpful end at and Any within you of of comments briefly would full seen fill million, that comments I wider X guidance in relates that first X.X to the be then, have Harold, visibility will that bit want quarter. other. from I year, on make variability to And and could X.X the to start just X guidance. curious, and guidance domestic the million one historically. elements drive range global I'm than

Harold Edwards

happy Yes, to, Ben. I'd be

each year. which crops DX year. of a impact grades, our DX utilization, volume up the engaged X us. though, year. year, and have this desert, the is across tree food well the which At in contract Valley, year and we've greener a sell would returned District that is begin prior the not the spring Coast, sell San said, move essentially to DX With pricing X, as to point that crops fewer we challenge primary sales meaning the we'll same more -- great and but are but the in domestically, levels from market sell to was associated opportunities for of districts service similar the Last fruit. of our it year seems higher tree distribution that was bodes and to believe that the an which we which last comments very we sales, and see size -- high basically in This forward selling with fresh record cartons, to and summer be as so could made on a the Joaquin may of crops, as which more normal fruit, So for fresh that the California significantly crop influence ability a fresh with smaller, we've from perspective is back we typically District

point, there, we confident brings stretched more we'll Harvest strategy earlier, could see crop think fresh or range, at that's out if our this reason that the pricing higher than fewer the very it's fruit because off initially normal cartons we is utilization going So we out at we thought. the have we But rates. feel tree

it's that with trees. every relationship giving us as we day on sort our is what Nature So, Mother view of we that play volume-price

Benjamin Bienvenu

And great. that's there. then just on following Okay, maybe

quarter-to-date this a visibility wins quarter you in get wait at to that? any union. of have happy just If next to period. you we're if point You and not, the can until state on mentioned What high the elaboration do

Harold Edwards

a know won't Santa and what every experience, We might what and winter the be at we it the it a downgraded for extreme most quality fruit as the strong was mixes the quarter, exception. may grade manifest may typically in has cases, winds grade in itself normally a a sold fancy challenge Ben, We the we or fall fruit, wind we fruit experience grade, a number does, we the Ana X next price, no fancy into until we'll pricing season scarred, that high than unfavorable will season, of often grade. fruit. sure because had mentioned have product to that that'll in the number and scarring, may, year due be year reason more high get standard this And choice to is to because but can early early because it of is events now choice be typically, the

the to of the that be sort So, say mentioned of don't potential significant a other a challenged of we wind we it as we've because one At enough our events, this point, visibility there. pricing. the because we but quality, caution way wind just that get events wind, have out pricing to will to or had wanted

down, So percentage we sales we'll to point to pricing fruit saw event our if able a that for the that. overall higher be which of brought in choice standard

Benjamin Bienvenu

flexibility you be Mark, you think acquisitive. think and of I'm towards you sheet to comments made end you about the us can great. the it you prepared balance the think help the today continue Okay, balance the gives curious, whether to sheet how about about remarks. some

guys great made some been opportunistic deals. You and have historically have M&A on

you a how versus curious deleveraging just opportunistic the pursuing So sheet. of for are balance this get continued year sense to M&A calibrated

Mark Palamountain

Yes, sure. Ben. And that's great a question,

be the EBITDA we of we’re X 'XX at sort there perspective, typically and X yet. look out so of 'XX, not X, now an of of on to in us, end from with, higher kind think that. end right front like of the to obviously Right we at, Harvest see and times which coming, on we're flows cash do will I comfortable

last well, made hold were few perspective an I to we're the CapEx be digesting years, -- think, which going on moment. We've as we're or they acquisition in few obviously the well. for a from acquisitions

we production of and more and the into leg of next specifically next be down the plans at will We've the packinghouse over stuff America South the in Paula started the basically replicating Chile. to doubling for X years. sort X money focus building, of what think looking on Santa putting did CapEx, the in I there

So of We is just out year beginning place later until to -- that want my front next in had probably won't to us. obviously the year this this of take, we take year we year get had last year up for are coffers that and any a have and of look estate sale us are idea the good real around, continuing so at. is building opportunistic assets we to we think I

So, we definitely and will are a to that. focused very balance be manage sheet year, it this priority

Operator

our Stifel. now take We'll question Anderson from next with Vincent

Vincent Anderson

I like update a little lemon off for this portfolio could on customer be was on interesting and sales mean what some expected bit your any have to year. hoping you looks us terms give of opportunities I Europe, in are your more production with detail assumptions you Asian it then non-U.S. growth.

Just that how from could incremental be guidance, just trying upside. to priority much see sort in the

Harold Edwards

high of perspective year, said, by This customer very from able crop are on Southeast to markets the that into from percentage a Vince. though, world those question, very Asian the quality. markets. With optimistic being great the Yes, move a we're heavily driven around

if to District fancy to if X come production we anticipated not fancy export premium the pricing bring of high commands fruit, that we crop a of mixes get that achieve District If to that Japanese, so a Southeast seeing we're year, the directionally more standard what will grades. home markets. we down should of we're stay Korean, for are percentage other countries. fancy about choice then fancy excellent XX% we to and are able closer remainder from grades X grade and tiger Southeast exported of XX% into mixes now, and sort quality typically the able But seeing the our between And in don't and of able domestically. total the estimates very fruit, product the sort field strong choice then fruit typically up Asian quality, of and export higher opportunity. be as with harvest coming Right we in we're grade a would think movement. percentage then If Asian to We're of

our point, this to and to price we least targets with carton. achieve the perspective is volume of on at made, $XX.XX a into an track guidance as EBITDA we that So an on plan the we track assumed gave that be to baked seem on lemon

Vincent Anderson

in when operating shapes -- steady we're on. few up and how Can perspective a online, So fresh that go the timing and when now expense so of, of next for from kind actually to hit stop back that trees full we'll of you acreage years, new the and stream difference acres that yields acres pretty capitalizing new see between us entering coming just one, remind coming to leverage an of the and first years speak? X X you

Mark Palamountain

absolutely. Sure,

those in that call year. full a financial capitalize typically, bearing full the we perspective, So it what call production. takes seven years tree we we'll From a for fifth

capitalization X So expense. of of years

that and we'll then production XX% once about between of of And it's what XX% so we that And full time, to fifth anywhere XXth year, et lower, call period coast, the different to we'll call in than Xth which that's different it, XXX% in it's different year, over regions what we're think to get in get the desert, obviously we cetera. and is we'll is. the

the carton. environment. sometimes years, $X as to a It of profit our carton from depending gets about look I'd that XX%, about $XX.XX, at And now looking that at as X.X as In high the and a per at $X on $XX XXX,XXX, we're carton, $XX just and like approximately from we the prior pricing so to so XX%. million think to region cost to -- price depends on looking

cartons million ask should to operating additional expect you and So income did your see X acres. from that those -- you you're that's

Vincent Anderson

one it's depressed Great. here, if observing market looks on shift like if we're the question. to more I at sustainable, really grades. there, a I'm lemon just but hoping sneak decade marketing fruit fancy curious conditions? those on And just low do you premium kinds could midsize lows. the not improving whether mainly of preference, least in in quality market your your comment at you in optimize that around Mexican or how was in they're It stays this, that's sure it thoughts like

Harold Edwards

but thing its crop. Spanish of So you'll production, about well, put that all really main is was Coast was down Spanish And year, at what Turkish that choice. the markets overall Vince, into crop very it the the Egyptian hit the the The now, down. the beginning And perspective, crop grade of is year X.Xx the fancy, much low was on East There it fruit. from us is were normal This that down. last mostly pricing. markets. found fruit pressure remember very, the crop beginning And with and surplus and pricing very the grade crop right some was a of was way this choice

little in to fruit pressure imported be going there's So a the markets. East or less bit Coast export pressure

Now that's and based fairly the our as percentages on that, to year both us decent levels, with it from have partnership a there opportunity foodservice idea if higher our believe I've because our last pricing flow up earlier pricing aren't we're but fruit we steady into into to not put give good that with of contractual boxes and we've to was other in of customers discussions, We, in fantastic able as crowded and gives Mother this those good as coming Nature. markets. retail will ship so can at moved great other we places lemons customers business, to year, that's us say it mentioned markets, those not it's at a

pretty through based pressure go we've a assumption table the but have is So sort pricing good we to perspective, how to to other as imported year we just of it and to think Nature competitive from set there that a our that's -- on report the what the of continue that respond Mother we've markets got also in a we'll the of from But utilization places. experience put us fruits year achievable. provides size also grade perspective, and have to from on

Operator

[Operator Research. Eric from Instructions]. with We'll hear Larson Buckingham

Eric Larson

price for fresh was the XXXX, what XX-K, lemons So I your come Harold? selling in out this think in but average might

Harold Edwards

I think $XX, was it think. I

Eric Larson

confirming you And much per just -- could that to Is correct? I as next that be and I just you then $XX.XX I think year. said this, it just -- carton think as directionally, wanted

Harold Edwards

Yes.

It $XX.XX. So of a assumption was was we average of selling made just the gave, showed XXXX, $XX.XX price per carton. sort was midpoint that me. in Mark we

Eric Larson

could And you be the if would move the factors -- potentially And just down? price little that up? us that very the be a what things that could move a kind price would quickly, What give of checklist. a

Mark Palamountain

something make pricing can the are several dynamics seemingly which us it there's gives that simple this so we opportunity. can typically of very that, But Okay, what in market demand list are, is supply, to complicated. drive where and exceeds included answers opportunities up

pretty percentage of kind what pricing. is Anecdotally, we experiencing a that domestic is standard a on demand is lower the grade, market tell a pricing when sell, that grade down price higher fruit a if Eric, based take now, first thing. have that's what it's lower right that is from significant fruit So flow and of of you its you the what supply can than steady can toll or the higher pricing. markets somewhere $XX I fancy on a or you of product fancy is grade typically they and sort higher have the domestically, than which what of mix that percentage can fruit. expectation fruit, and pretty choice we a impact have perspective grade commodity what in your standard tree and carton choice our grade commodity $XX heavily and a commands carton to $XX the consistent keeping of $XX a [Indiscernible] impact that selling our Pricing of more right situations grade grade utilization carton and But event. a grade between $XX close choice to grade. and export fancy produces is was percentage impact are very of in now. takes typically us range if greater your Conversely, assumed all the essence, In and also is we'd is situation, markets, the of price exceeds with of be that and a drive a

opportunity as believe trees on an have that year, it will forward gives us of Now actually change. -- give market realities to into us report We we to the wants. give based price that again to our continue us increase we as is that, the go we'll on going to but just what look quarter-to-quarter, what see the opportunities, versus

Eric Larson

of that give things or I Yes. unusual on kind was side negative themselves pricing. each to exactly an just get to get understand feel No, for trying may not the may end downside I I was potential positive in side. I pricing in upside the was repeat year such supply/demand and trying was just next the trying -- some last could or -- year either just a year. the that that

be we utilization, more was the had know kind that utilization but XX% And the that year. that make? can look of I little should off-line, kind assumption Is how have next about believe, should a I quarter. I that for thinking XX% to we roughly Is the it? the full is, at talk year? XX% the other fourth right So XX% question you for we to that bit of --

Harold Edwards

Yes.

to sizes, was normal that excellent XX% which And the then fruit, when we impacted levels, in crop the end So the our of XX%, actually then is just of forced and that and X ability to we're and desert XX% we it as X were to we started which fruit. and the into that by it year to was coast, actually big fresh also normal sizes for the last plant. utilization were XX% Eric, in XX% what utilization valley and had utilization, the And rain. during of period. harvest, desert, to started up harvest And to in weeks XX% all into at District harvest came having X, the and season, in the utilization up it year until the it the rains to started what in call and rates. rain. with fresh was until to X in valley to happened, actually then We X it then the so to send off or utilization sizes were got That's else X in actually the the fresh, we instead came time dropped weeks, unable in get industry storage, juice trees unsellable the sized became everybody and we time the shift

full average of our year utilization of -- utilization think that that. full weighted -- this -- the the calling utilization time, year, are anticipate the we the This was inputs fresh and for XX% coming our For by year fresh for models of of I XX%, achievable. driven our fresh a at that's

Eric Larson

about factors then, all looking those about I XX% and sure that if least mean, That Yes, $XX this like year, the of was major guidance? you to unusual upcoming characterize of was And for rate Okay. yes. EBITDA you. of wasn't X figure that? just talked sort and of not way if to maybe to there be. a your Could kind Is if turn hit $XX forward million products, that to what might and I -- X or have a that at all looking that that I of -- fair should seems it you oranges, sense. X, all that adjusted by is really you've run year makes what's for. avocados million good fairly X got be some, obviously, not last very your avocados lemons, upside ag

Harold Edwards

That's time, seen experienced same Eric. never crops in at XXXX. what We've all fail exactly we right. of that's and the of X Yes, kind the

are $X the pound. guidance the pound you the directional pricing's pricing, models to And were million in X And a avocados, space, a believe million if For avocado our we there's uncertain, so crop hanging but follow put way on the and also trees. know X with you built an as pricing. will on in is crop markets, large the find awfully guess that, markets into pressure point, will stronger Mexico these that this than there's its my that Peru in at downward

somewhat have we're year, year, no getting far through So normal on right track still we're running export as often of orange challenge, movement export movement. operating movement see. limited whereas then a well. on to we amount oranges we're got we'll utilization and last but been Pricing hit this through our with with we just our We're has and of this of so believe time, lemons numbers. to now, And track

But a like off we forward. optimistic feel cautiously So we're good as to go start. we're we

Operator

question next Ben take now National our Klieve with We'll Securities. from

Benjamin Klieve

ones of couple from a Just big picture here. me,

to the regards First weather. of all, with

you kind going that wet and stand last inhibit this wondering to different and been caller, in a where rain, the can update year. year regards and you of weather the to like if of been year classify today, of with where perspective, your wet, can I'm compare it's but you your fields year? at good this kind out thus tell. harvest kind stood far the year has not California, Can weather this is were last relative from a you to It's winter it to of where how the on sounds alluded they the kind with this that You prior to point but wet us

Harold Edwards

XX Country, came for be a XX and last rainfall at us pretty which in inches. Yes. The would inches, year normal to year, Ventura somewhere Definitely. directionally close in

thing getting from industry a of all rainfall kept rain putting weeks. It our around, the godsend the a of us great a great harvest start aquifers. prolonged with as year, just a all the except normal just timing we're X This sort well. So XX events in the fruit X-year off for in to from an was to a It almost rainfall. replenish It of of end drought. helped was a perspective of a to

intervals so something perfect ideal The just between then I that, dry think we're inches and like been rain X rain, so far. have periods far. somewhere and about events of around

be is of in normal far So more normal a a And absolutely we consider year. situation this of no negative itself a impact quality really so impact on year. no to would fruit on what harvests, negative more up setting

we through said, our of have be. events all end impacts be big that the the could the way on would Now keep weather continue really to eye March, really where and that to

good. looking visibility with pretty we look have So limited of today, we as amount are -- things but the forward

Benjamin Klieve

of And think hear it. more next wondering think you good at, visibility XXXX. hear that do come looking can months? with expected over about cash think the Limoneira. But sizable us really understand that milestone that XX you One of when out may to to it's to of beyond for kind next to you question over you're that Harvest XX potentially I something kind do regards you tangible? that? months. we're Nature fiscal being Is necessarily going other you, when Always have to Good flow I'm Or going of really if the you provide be your perfect. cash some cooperates. aren't Mother Okay, during flows kind at with

Harold Edwards

Yes, Ben.

and we're flow more to now lumpy -- how have that are sales a -- see cash flow idea or of tune are which I it going in this and be from going. homes better right progressing $XX perspective before week. towards now 'XX, doing sales to then, we I started started that a X X be Originally, Over the looks. sort to models, will just Sales we'll roughly as we're we have Harvest, was the anywhere are between 'XX, conservative first approach the building, about think opportunity will between at cash million, be is think in how 'XX. X of end of there a taking years going to So but through, the in our year I to that ago, think

the close to bid next slower we So This for set plan. we're to phase of all it's -- our next do now, our season so is where relatively typically, and out right lots. expect

to would I it's plan. so according moving And say

Just a equity from perspective. the comment earnings

X,XXX should as lots to I to we're earnings cash, of units. if the selling relatively amount that plan year-over-year lumpy get be about per talk think stable we

because approximately year, there, that's it, that should goes gears we as have we'll see. so had towards and expect equity of flow. to calendar $X of the end a million that quarter-to-quarter we But year on And how to how have timing that most where earnings, to of so generally, the similar last just half that basis

Operator

for additional that conclude conference would Mr. now Edwards session. does to hand I And like to you. back or the question-and-answer any Thank over the remarks. closing

Harold Edwards

questions Thank your Limoneira. and you in interest for

forward you reminder, many seeing there. we to As conference a are again, and and tomorrow a you Thank the at of have day. great look presenting ICR

Operator

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

may You now disconnect.

Limoneira (LMNR) 14 Jan 202019 Q4 Earnings call transcript