LMNR - Earnings call transcript Q2 2020

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Operator

Greetings and welcome to the Limoneira Second Quarter 2020 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the conference over to John Mills with ICR. you. Thank begin. Please

John Mills

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

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

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

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

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

Harold Edwards

adverse review and Mark fiscal results more market This has significant I brief operational the On oversupply. I mid-March. quarter. in up John remainder a lemon in and had market States volume, orders decline good overall industry the afternoon since open a questions. to overview will significant for the of has fiscal results our date The falling a will we review financial second seen XXXX. year on call in that as has with to discussion has COVID-XX provide shelter-in-place well the call, follow as will will with the had United lemon today’s issued our impact outlook then markets on Thanks, impact business that, and pandemic an our with an The demand regarding service. everyone. our After XX% an COVID-XX of your we of industries were resulted than for in-depth the of on a finish

significantly declined product due to for market fresh export Additionally, also COVID-XX. the has

to service industry only. increasing position outperformed expenditures grocery repurposing measures been the our Calavo more times, uncertain temporarily including bars in has than To of line restricted certain have stock, offset taken these the our close club and our during foodservice forced or food delivery revolving liquidity selling capital retail decline given and this front-of-door postponing in by and restaurants it our business While have nonessential period, we credit. to and position agricultural long-term improve acreage, temporarily with

While improve starting has to in to we take on pressure put our the recover. see lemon foodservice were results business, COVID-XX time will pricing

now included to tremendous sales. to the into starting reach agribusiness. expanding million However, million, This with in strong our our of $XX.X led lemon XX% agility our period second compared team year revenue has was discuss year. each volume to last I divisions, has million and business and will $XX.X of prior quarter $XX.X grocery. our Agribusiness for compared shown lemon greatly the the retail same fresh growth by

During increased partners the team, expanding to to volume million cartons strong lemon our fresh our and XX% X.X our due in quarter relationships tremendous industry.

a million average sales oranges quarter, and at carton million from pounds $X is in increased year-over-year in average reduction cartons of total third our reduction from the American of a overseas oranges. X.X This in the avocados million few closures sold a in We of $X.X the However, was basis. by sales volume past a fruit the a price sold in we and to approximately in during at environment strong pound to revenue improvement changing total of XXX,XXX quarter and open price weeks bars a in rapidly restaurant growth an on foodservice of avocados experienced pricing offset Despite the of limited we quarter. $X.XX and and shipments. an are see per and slow grocery beginning reduction both of approximately year in oversupply North per an certain continuing of as for fiscal experience retail second restaurants at $X.XX to for XXXX, of begin volume states

year-over-year prior-year specialty million $X.X same other at However, the revenue down $X.X compared and million was citrus in crop period. to

XXX since sold of out beginning initial the the to estate working of for with segment, the homes homes calendar real Limoneira of lot Harvest sold us XX our XXX now at year Turning development builders closings. the a total on have

homes are very years. provide nine next starting our and and and pleased the expect additional home But to company million be industry. six the through We are with to times the times in cash to the sales open over with project of foodservice X,XXX its our been this flow These recent have $XX before see beginning in partners we locations. we tough are in challenging entirety industry to

to with increase year. intact fruit the long-term in strength lemon encouraged position. actions online secure in increased of growth In with the quarter keep the we this weather turn business, temporary long-term that, We acreage fresh financial our our necessary second and over we our disruption bearing combined have taken are will this call And coming now by to have Mark. the order I to the to the volume

Mark Palamountain

and Thank afternoon Harold you, everyone. good

fresh the partially to sales cartons the fresh million sold of cartons $XX.X in fiscal $XX.XX at For period million on to the by quarter the quarter X,XXX,XXX sold during pricing million the Agribusiness of carton second compared million fiscal fiscal second $XX.X of per a XXXX. caused The a lemon XXXX. fresh can X,XXX,XXX year the a includes XXX,XXX year from net reduction year. the in at $XX oversupply to XXXX in quarter decrease year. quarter was $XX.X compared fiscal revenue Approximately quarter second Other $XX.X fiscal to $X.X previous demand of offset Sales million year Trapani year-over-year of average second last second lemons during million second lemons was million $XX.XX million to an year average during compared COVID-XX. compared total sales cartons revenues to XXXX, for was the in XXXX. XXXX. lemon Agribusiness year fiscal of $XX.X revenue revenue second the of year total second quarter net fresh of due the revenue million year decline to the lemons of $X.X carton of attributed be in in reduction in $X.X the were compared of in of fiscal per of quarter of Fresh revenue from XXXX quarter the average approximately fiscal price price of dramatic same

market, crop price second the in average million avocado during capacity. revenue quarter prices, in Approximately offset beginning carton the on fiscal the back average fiscal at XXXX of to $XX.X quarter million, at cartons as the attributable experienced. X.X of fiscal a lemons of up lemon excessive open Specialty expenses are period million company continue of as XXXX of the the a average half and the of during in to of pounds improving The recognized were per XXXX but is year by year lower $X.XX carton the reduced it will in and Approximately year. year to the the pressure avocados second same the fiscal we $XX sold other approximately costs an second XXXX in last $X.X price are heat $X revenue same compared $X.XX the XXXX. a year sold bars at million during minimal into partially oranges due avocado to million we of Total the and the previous year primarily fresh realize result pound slowly XXXX sold pounds year compared to fiscal prior compared year per of of expect The in second compared per partially quarter restaurants XXX,XXX $X prices. fiscal at of higher experience and period to XXXX of to compared in year. of $X.XX citrus of to XXX,XXX offset XXX,XXX approximately during second the We a second XXXX expected were important price price were higher fiscal volume. compared decreased million fiscal revenues be XXXX operating The million average quarter to of fiscal revenue year per quarter orange decrease at to was prior-year to year $X.X company quarter cartons quarter fiscal by sold to $X.XX of pound a for in of $X.X price quarter period. to second volume, second recognized decrease million the second

harvest in quarter XXXX for fiscal a and year. of $X.X Operating fiscal income Net procured in the expense. million Costs attributable to of associated was in quarter second the million was preferred agribusiness to of $X the costs, year and loss growing The stock was fiscal and to loss applicable in of $X.X of quarter for fruit net for include XXXX packing costs, second decrease after second fiscal dividends expenses. million depreciation compared previous common million year costs compared quarter $X.XX year diluted sold agribusiness of share operating the XXXX decreases of was year costs expenses fiscal company’s to loss costs, of with diluted the quarter XXXX the third-party the second the related second Net fiscal $X per fiscal net growers quarter to per loss for second share XXXX. $X.XX year year compared to XXXX. for of income primarily

quarter adjusted fiscal of $X.XX loss million XXXX XXXX. a year of loss stock. to adjusted the XXXX as the and EBITDA reconciliation on loss Excluding current $X.X year Builders in fiscal the the of adjusted Adjusted non-cash the to Growers, quarter a the of second on in loss quarter loss XXXX, of EPS fiscal compared stock second the impact was breakeven provided the removals compared assets of Adjusted Adjusted on in A $X.X of non-recurring a in same tree at in Community in $XXX,XXX of quarter applicable end release. second a year of of XXXX a loss was common equity loss as year loss same of of to million. to stock period EBITDA $X.XX of net earnings second our of period is $X.XX Calavo quarter income to net of Calavo year excludes fiscal for Limoneira fiscal $X.XX gain year well loss compared XXXX. was from in EPS disposals fiscal net the

share period period share fiscal of six diluted million $X to to common same first compared loss compared million first compared six million period fiscal loss the For for year. the year $XX.X fist after for preferred this applicable same $XX.X XXXX the same this $X.XX a compared of to year months the same $XX.X was diluted year. period in was dividends months last net of operating an last the XX, XXXX. April XXXX loss of the year. to million in Net loss ended in revenue year stock million $X.X of net for per was X XXXX Operating of $X.XX was fiscal fiscal fiscal a X-month loss months Net in to million the last loss $XX.X period per year

loss same Excluding fiscal the diluted of to disposals for diluted in of $X.XX common XXXX. common net XXXX, the asset loss year to million $X.X in to six year respectively per in of per approximately non-cash on based million share equity period loss adjusted compared XXXX applicable compared period million in outstanding. on and for of the diluted net loss loss Calavo, first on LLCB year million stock shares stock $X.X $X.XX fiscal adjusted months fiscal average weighted net was and share same the Adjusted net adjusted for XX.X loss XX.X was loss

at sheet, the balance our the $XXX.X year in million million hand Calavo credit, long-term on as with Before a end of and over April increase of million Due structure, our call disposition on improvements XXXX compared was of $XX our stock in debt approximately of revolving of quarter credits. our our we Harold, cost to of lines $XXX.X line I back the the an fiscal ended to availability XXXX. XX, to comment

receive we addition, CARES refunds Act. In to the tax related from expect

downturn a our stimulus utilization this have future future the are losses on the environment. and prior we deductions. limitation and of CARES reminder, in benefit we temporary the financial Based tax credit, resources net other interest for and on of current and provides Act and the operating temporary numerous the ample confident regarding including lines changes temporary As provisions to changes prior measures,

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

Harold Edwards

Mark. Thank you,

demand Limoneira a sales at of fiscal our provided this result many ultimate factors, the as of outside XX, for magnitude XXXX, March of XXXX profitability duration, of is which quarter pandemic, in As was estimated The of a these of and impacts the a XXXX. the result scope are believe quarter financial number be the around during of COVID-XX pandemic, products uncertainty that withdrawing the the our control. and was negatively and year affected decline management COVID-XX cannot management’s impact outlook we which on trends of duration impacted The for second second such our of precisely time by are XXXX. they previously

of currently the during COVID-XX improvement pandemic Although as in continues unforeseen subject adjusted XXXX. to changes to arise unfold, we the that may the EBITDA expect second half

May States. We well in sell-through compared foodservice during results the certain April areas due seeing seasonality improved month March to of are to the and United as as open beginning to of

volumes XXXX an fiscal In term addition, about additional Talking our longer of have anticipates lemon into pipeline, by the acres beyond, the company half record and looking year offset we pricing. fiscal company growth lower back become XXXX. of year years, non-bearing full growth become XXXX to X,XXX bearing the for come. which in to lemons of next estimated years us will bearing X acres The strong to achieve organic over enable to X,XXX full expects many for the expected XXX

XXX an will its XX% owned this next the the domestic of additional lemons to acreage lemons cartons or We anticipate increase two of and becomes to additional as fresh million non-bearing Beyond years. X,XXX supply productive. plant XXX,XXX acres level acreage X.X we acres our Limoneira additional XXXX these approximately by intend planned from about in

like with call expect to to third-party fruit. also questions. increase up Operator? your in open grower I’d a to And We that, have steady the

Operator

questions Bienvenu line of with questions. Please Instructions] [Operator first the Our Thank your you. Stephens. come proceed of Ben from

Ben Bienvenu

afternoon, taking Hey. questions. guys. Thanks the for Good

Harold Edwards

Hey, Ben.

Ben Bienvenu

and they’re the up for what this moved largely a crop recovery? below color, – look last of then as next I over recovery part has year provide all price year-over-year. in Lemon for on – it months, several of any slow. They prices. Can curve I that pretty with now the like, Harold, slope lemon then foodservice albeit grades, want should but you across faring year sizes you and really looks that the is is that it’s average, how how and talk at have could foodservice, to still nicely well? it’s And suspect up implications all mirror that like just start across the

Harold Edwards

Happy to, Ben.

So, observation opening up about guess demand, improvement yes, is on. speculation, more restaurants is demand because pulling I about and your foodservice exactly what’s are and going

than that’s the is supply on less the first overall in is the thing as through other know coastal gone initial of which looks the the District coastal we’ve is going of picks toward The you California. like part. it And first look X second part region pick, industry we the

I than And are we to is really I first combination the demand things – the very those having So half impact saw of so, supply pricing. going in better between positive year. two think think a see the balance on a and of we

Just know, reported anecdotally, we combined as $XX… you – Mark, of a price

Mark Palamountain

$XX.XX.

Harold Edwards

today or $XX.XX the it all in that $XX. quarter they’re goal this pricing and marketplace grades is the given feels is I at across And team for that’s – And the second put finish price $XXs. approximately mid today. the our to the in receiving achievable from to see third sizes expectation giving the quarter, our $XX.XX response way our sales will

Ben Bienvenu

Okay.

Harold Edwards

next to will harvest. at will of recruit better is opportunity outside year One crop the for new to we year. we we believe see aside similar that a have we But so about acres, this next into thing actually growth will for from the second half a things yes, now a because little looks do – lot talk there’s and now early and next just to what between too to year. that maybe know like And when It’s now Mother Nature crop – growers. do of point the bearing the we get sizes that believe

last returns the year half growers the this it’s even expectation are overall returns to first recruit growers given competitive much I are overall a of situation lower pricing and new for oversupply though our competitive our through is a this year. us opportunity better are year. than very And than, And because to lower year think, were year. the third-party more gives they that returns Our disappointing next

see volume year we growth for real So, year-on-year next to a we next – opportunity grow.

Ben Bienvenu

at is great. are item in particular remove flexibility downturn? How That’s other on much then any all this the is of around can that midst leaner Okay. And you P&L you cost looking think the where there Thank there get line line, SG&A the lean SG&A? in of cost? the you to business fungibility you. Mark, on of components how that

Mark Palamountain

Yes, that’s great Ben. question, a

easy to. expenses So and just related we a attacking as in non-essential have side. new X into been place Simply The is the one working go Travel very is exact just know, a we’ve question coming complicated. weeks. system, gets always on the answer about hard cost it, the G&A from about obviously, implemented which that’s then to year bit $X we’ve We ERP of identified. million items, heavier other diligently – last, little were that – short because, we targeted call it’s you and compensation

were So $XXX,XXX about $XXX,XXX ahead. we running to

it’s I And costs we we that. end been market There’s get And million The growth especially yields back cutting in place. all a $X where under our never good just don’t get to good we problems story. is that really in ever and of into, stabilizing – the in field sort too year to field. much is that’s you coming is compromise lemon So our just and I a think if want believing long-term the strategy, we’ve all think we believe into the the long-term if thing first target.

number and we’re reduction general that’s in from G&A where side, think of So I the the – but sort goal. is XX% a attacking

Harold Edwards

that, sort approximately acquisition Trapani costs. of is quarter related items of the SG&A well expense then the implementation this to of was Ben, second related other One for on the accounting $X.XX SG&A color comment non-recurring as to in Harold. as one-time ERP FGF

anticipate So given those. reasons were look now of accounting – where line were. Those not they we those why budgeted. when But that out have the was we one sort we’re costs past of issues did we that of

fall-off our in nice And of in see so SG&A trend coming quarters. a you’ll the

Ben Bienvenu

both and you Thank luck. of helpful. best Very Okay.

Harold Edwards

Ben. Thanks,

Mark Palamountain

Thanks, Ben.

Operator

come your proceed line of the Our Vincent of next Please Stifel. from questions Anderson questions. with

Vincent Anderson

Good afternoon. Thanks.

Harold Edwards

Hi, Vince.

Vincent Anderson

Hi.

quickly, are imports for we lemons. gear just So for about Mexican to up

back had How of supply a you is the balance demand intel Just so their on up year? curious there. big going shaping half ground if be the part in that’s the any to of season the

Harold Edwards

intel We of Vince. little had bit a

as So or of know of levels slightly do out are that and as encountered greening down acreage HLB issues they and Mexico related crops a suppliers pull we of issues that volume last amount know far we below of one there. year largest significant to the exporters

our hard that with putting market fire They grades, markets. the fruit that And should cartons. And drill in. and But of so, into they choice the starts it’s coming that attack south expectation fancy total time the the of typically million have X it’s amount Mexican up be grade. the when comes real certain standard a fruit regional usual a

don’t So to of makes I a anticipate crowded. it our pricing, result huge fruit imports competitiveness Mexican be year. that the overall as this lesser as in But grade it there’ll some always pricing a the of downturn relates of more overall

Vincent Anderson

quickly half were normal good That’s you to levels, might overhang this pinpoint, side to into destruction, kind for really hold the the inventories hear. ‘XX big be but see look a of you normal don’t at inventory would early of and be what demand the second we that demand the for given imports the to become idea of an if year a do need best return to to just your on ‘XX? guess – how of such tough And equation

Harold Edwards

great always and the that – a issue that’s that’s question. great is a No

break-even, out to So the of Argentina, is that hearing in Their looking or market. $XX carton. dependent on and from into rhetoric it, are shipping some we just a get the because they to Chile shippers of lots of perspective $XX are participate we Argentine of forward the out we export US imports to as your understand

a from that Argentina. under the logistical discussed they see fruit as advantage marketplace have anticipate Coast before, We’ll we’ve much the we slight land there’ll and So be – additional fruit East market. in for don’t that

to fruit are recovering fruit at some lemon rates. and haven’t but Example seeing and slow finds recover. So you’ll is Europe of there. very Eastern its Southeast – we in back is made Japanese being about Right what that over foodservice export levels like very, Asia any Argentine pull markets. also to Chilean and But fifth a normal see spotty comments lot they demand business pulling and the it, different there. a of are seeing of a those market that nice return way they market Western of normally very now Argentine in to are into The of we Korean normal we’re the that imports in but markets shipments – almost normal we and and in of

So to very how we anecdotally that’s but aside the it seasonality just to open to just around up. very every get our the It’s the shipments retail a will and restaurants attribute and from thing back growth bars beginning months Limoneira summer both predict are and be difficult certainly world to to is quickly to it’s for bars that restaurants going that see seeing But of happening. positive we happen – also and increase week our and business. into improve and how recover

Mark Palamountain

accessed has little protocol. I sanitary might thing Vince, recent – into now with that opened And one you’ve very is, I up think phyto access opened weeks or noted Chile add China the Chile in Yes. up, has

call, a market lemons is for new we a, so what that down And our there.

pull the help demand some go see that probably which we’ll will way, balance. So also

Vincent Anderson

of I Alright. there how continues can go Eastern you’re into Mark. we sells expectations are back is given moderating is my maybe that Is and a – they Argentina right purchase this how be both Well, Western to to more Europe Europe. something little or can about last about just crazy that different question, just bullish, things read market getting now? thanks mean, bit to I how not or out that I Europe for ahead go hot, briefly? Instead, back red everything

Harold Edwards

The latter.

in We industry’s impact don’t perspective do season just – which was are the think we say on is thing and The first entire just being We in we it know. one quarter, the extreme there first Argentina’s careful. but reported I part from can did that we know of crops. the the heat

the So size Order maybe magnitude, what? the down. of of crop is

Mark Palamountain

XX%.

Harold Edwards

XX%.

So that’ll fruit to extremely beneficial in because us. keep bullishness the should that Europe defer of certainly out be all of ultimately referring which domestic from for a sourced market of States, those Chile lot it and help to is Argentina markets that our that you’re and United going into

Vincent Anderson

Thanks, guys. Perfect.

Harold Edwards

Thanks, Vince.

Operator

is Please with from line with Mark Lake Our the Smith next question questions. of Capital. coming proceed Street your

Mark Smith

guys. Hi,

First off, that of can quarter you facilities? saw the outbreaks just talk during about you potentially any or shutdowns

Harold Edwards

Our sister company Calavo had an outbreak.

to asymptomatic, second in XX in operation. to temporary total went they home, their sheltered tested. got a with whom come shift workforce were able Somebody sick, employees their positive. But home, went remain of were tested were place tested in positive. In XX of of employees, of most

was farming three He to who in had out relates in Limoneira one He employee tested it we the the group, recovered. people. in other orchard, sent As sheltered actually place, our exposed home, company’s operation, positive.

or in now sheltered days. back to to temporary and were home people three who for sorry, tested in but employees, negative, employees actually, had one days XX All the they’re We other the XX work. They tested positive. place The other or tested were packinghouse them three of All temporary for negative. were asymptomatic people. sent exposed employee those

diligently point, the We’ve positive distancing. extent – of the test been And practicing safe our for Everybody employees we this we’ve cases Arizona the social mask. that’s in Yuma, is at that two it. our had and a in then of operation, our company. wearing outbreaks So had throughout

the in every prevent future as diligently any to packing temperatures we checking as outbreaks. day can and We’re houses working

Mark Smith

in at Perfect. safety any look really kind hurt COVID? put projects incremental out profit and initiatives And as place you call similar to that can prevent that, gross different you that for costs margin of to and measures

Harold Edwards

really Not and to training necessarily nothing expense, it specific the is personnel moving dramatically. there mean, to needle. really that expense COVID, more there’s needle I move sanitizing, cleaning as is relates that the nothing that more but

of priority. We the as have safety employees put one number the our

really walk not with trying do just in significantly hard to we’re and but future needle the walk to not on walk prevent the partnership do need here Health any to So, but Department moving Ventura working what to County the locally side. the outbreaks, the talk cost only really really we

Mark Smith

Okay, great. you. Thank

Operator

Securities. questions next line from Klieve the your of Ben come National with with questions. proceed Our Please

Ben Klieve

Alright. taking questions. Thanks for my

enhanced couple or Are on if of at? you’ve go you first businesses and as market. state you market me that Maybe not been months comment smaller you the M&A maybe any or COVID such can noticed presenting M&A some need the from of opportunities meaningful have kind a M&A Just ago any here, in you amid you have with the seeing smaller pandemic? that the there of change six growers of kind of weren’t wondering kind to looking market to kind yet

Harold Edwards

profitability. and what is activity. But talking farmer, No, space great funny and question seeing the to and It’s throughout actually that’s we lemon two number year back-to-back a were challenging talking a you of quite bit are this M&A certainly lemon lemon said don’t profits in because if a farmers anybody challenged about. I and you know about returns think M&A California, of

we and take And and are news, beginning lemon we see out. good as begin this to to Arizona see throughout acreage to so we’re see beginning – farmers California

of demand believe of and because us we’ve leads passed sign good tipping us that that’s So always for the supply. of that between this sort sort a imbalance to point

of in lot the your So row we’re But beginning we’ve up good And also from X seeing until years people lot of acreage. seen acreage a also of activity we to news. enrolling orange a pandemic, come purchasing returns up, have from – oranges. interested orange and challenged a that’s but seen

will and so helpful of and us. Limoneira hear you of And rationalization sort in and quarters, about of in or productive citrus our for space ground so future dispose to in the some the the has very to activity that increase less M&A more talk acreage improvement more us opportunities been

Ben Klieve

the at Got regarding Limoneira. other you. question me Harvest it. Only is thank Got it, for

of better kind to comments. you we’re a Some for we’ll we sell looking numbers talk be to benchmarks of in really going what of Can about should payments? the that to the those you prepared encouraging cash look Do understand able that we timing advance initiative the next talked few think when regarding Do for here quarters? that initial the about here guys you bit XXX visibility of lots? this for should that of need future you over be of have kind out your in

Mark Palamountain

Yes, question, a that’s Ben. great

homes, just year, year sold lots. color far homebuilders of So, so, the we’ve those XX sold this on this some XX have so

partners week. real Paula per one of business our the Our we the Southern really, we XX and was outshined week California One Santa to the benchmark all on compared optimistic estate had week last zero, at project XX, we two developments. netted pretty homes alone but are week sales. really of This beginning had overall that. has

the about we’re motion. so way And we full think in next already that the are phases

in next phase You’ll of see your phases stuff from be need and lot next hopefully those still sold don’t some XXX announcements coming on question. one. to to But us the some out, in those quarter

We continual are a development. just rollout in

for full to six distribution We seven the of we XXXX, years homes real fiscal meaningful additional first still X,XXX cash it’s millions. the on XXXX tens think development $XX and in of early the the end cash. get So toward our of to million look about

talk in are things interest but it’s story. out of are areas, that now we want in to definitely optimistic the it rates urban people both, or it’s bit it’s probably looking this we – So environment. Whether to moving little of good right lining silver about why this and a a that’s

Ben Klieve

sure. for Well, Very good. congratulations that Yes, progress. on

does for taking queue Thanks here. for and in get back questions it I’ll me. that my think I

Mark Palamountain

Thanks. Great.

Harold Edwards

Thank you.

Operator

you. Thank

now the call the the remarks. will closing Harold to reached I any session. over Edwards for of end turn have back question-and-answer We

Harold Edwards

Thank your you for Have in day. questions and great Limoneira. interest a

Operator

This conclude conference. does today’s

You may disconnect for you evening. your have this lines Thank time. participation a and great your at

Limoneira (LMNR) 10 Jun 202020 Q2 Earnings call transcript