LMNR - Earnings call transcript Q3 2020

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Operator

Greetings. And welcome to Limoneira Third Quarter 2020 Earnings Conference 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. to conference like host, to now Mr. would turn over this your I ICR. Mills John with you. Thank

You begin. may

John Mills

Good And call. third quarter afternoon, for fiscal us everyone. year thank you XXXX conference joining for Limoneira’s

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

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

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

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

Harold Edwards

Thanks, John, and and capacity good afternoon, revenue, and continuing grocery temporary retail everyone. strong and seating closures volume restaurants avocados service quarter the in driven by growth earnings to affect third to due to oranges. lemons, food bars, EBITDA and reduce Despite enabled and us COVID-XX our achieve business at

In addition, continues and and export, are food well-positioned we out continue to be dining slowly service improve. a to leader as in

$XX.X compared reach to for service performances during and to are grocery. team business continue solid to included million third each the well-positioned our million slowly the revenue $XX.X has lemon in food prior compared led agribusiness. business I’ll fresh six and growth for now with lemon of we solid And open. Agribusiness quarter believe million, bars next shown by our to this starting year retail third last if year, very agility tremendous expanding greatly and Our and restaurants improves sales. has discuss months volume divisions growth into year, we quarter to to as past for the $XX.X increased

restaurant sold avocados at of a And an in average the of fruit was crop food due price cartons oranges offset both of closures and total at of COVID-XX last the X.X of experienced flat XXX,XXX sold and of pounds crops. year-over-year revenue was We citrus sales third quarter, in a by total closures. in an $XXX,XXX average compared carton quarter, approximately an our growth from avocados, Despite pricing the related million per for price $X to per service of and was the oranges sales specialty from specialty $XX.XX as no in in million sales revenue American During $X.X million year. revenue oversupply volume reduction pound fresh for approximately our we North $X.X lemon reduction quarter. increased a other in to

now Turning Estate Real to our Development segment.

a the initial residential units, residential fiscal offering initial year harvest the and In July third of We single concept has our of XXX development XXXX. story XXX lots, nine XX, quarter lots be of increase XXX will XXXX, harvest very year residential are an Through joint at of venture in sales representing first closed we our sales announced during the fiscal residential one primary representing new that strong of Limoneira. the XXXX, closed builders months resonances. residential having interest of the sales of units

sold Our the seven demand robust per guest homes have last seen eight over builders weeks. week averaging continued

Over approximately million X,XXX joint the residential will additional an we six-year built venture cash to nine-year total company to have units our of life and of $XX this project, provide expect and the sold, flow.

dynamics during and be growth. created Thanks pandemic. long-term we better our with the current this our company expansion COVID. even challenging will club agility by for positioned I during believe pleased very industry to We’re the of grocery

to in call record nine increase expect the months I’ll in turn continue fiscal volume Mark. And and lemon by year the to fresh that, sales first for XXXX. with lemon the encouraged over We’re now

Mark Palamountain

good and Thank everyone. you, Harold, afternoon,

at For to sales was to fiscal XXXX. net million, same the We total of lemon X,XXX,XXX carton, sold quarter lemons third year of cartons $XX.XX $XX.XX last during of fiscal channels, significant average but $XX.X total food the million in approximately related was third were oversupply relatively demand $XX.X million. growth quarter at net average reducing this the carton an revenue XXXX, X,XXX,XXX year. the in for quarter cartons the fiscal million at compared to $XX.X fiscal compared XXXX. fiscal third third the in quarter creating XXXX. revenue prices XXXX year. the price was price third revenue in quarter of fresh per in previous compared a fresh quarter our revenue million offset fresh of Agribusiness in carton $XX.X per the $XX.X year by the sold marketplace, was fiscal the during year lower million sales, average third year COVID-XX service lemon year in per achieve of Approximately which lemons closures revenue quarter $X.X XXXX $XX.X period for and Other a flat the to fiscal of of million, Agribusiness grocery includes fresh of resulted during third compared of year

per year market restaurants the We price lemons quarter steady pounds fiscal the attributable XXXX, same year recognized the the Specialty million year. carton, expect quarter quarter have $X.X and quarter previous XXXX. the the reopen price and of $X.X were in started to bars to third fiscal citrus of to $XXX,XXX year period to other The of no company orange million, fiscal in year. $XX.XX have sold million crop for XXXX $XX.X compared $XXX,XXX of offset $X.XX of third already the at average last average at approximately fiscal increase higher per XXXX, fiscal quarter price a million and the quarter during third million The XXXX. avocados in Approximately in of at third partially pound, and the $X.X avocado during $XX.X carton last quarter improvement sales X.X an in average fiscal compared period. the to fiscal XXXX, $X sold per in of of period in third of revenue XXXX, the year. to volume. to the increased a the in cost pound expenses period of fiscal million prior compared at million average X.X continue the year XXXX decrease third cartons during revenues to of fiscal oranges a third were at same same of started lemon cartons for year as by in approximately sold pounds Total the XXX,XXX fresh were rest XXX,XXX in compared compared of year company year recognized fiscal quarter per to compared see to year prices third price market of of fiscal XXXX Approximately the year $X during sold price revenue to of

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

adjusted in per XXXX on to fiscal the Lewis in to million net net applicable third on applicable the at loss is quarter of was and diluted common the same stock of or asset end compared disposals, provided to Limoneira $X.X earnings of year was of Excluding $XXX,XXX reconciliation XXXX, stock Adjusted EBITDA compared or year equity dollars stock share, the in third in million our Community net $X.XX of Builders, diluted loss million per $X.X LLC XXXX. earnings income common share. of non-cash of loss quarter adjusted Calavo to the year EBITDA to A release. period fiscal fiscal adjusted $X.X zero income

the year. year. was XXXX, Operating first in year same nine $X.X compared net nine of dividends million last loss Net of XX, million, July period fiscal of was for the operating common $X.X the loss first million XXXX to compared months loss last months million period after fiscal in same period million, stock year. last was loss to revenue fiscal to the the same XXXX, in applicable $X.X year $XXX.X $XXX.X to for an ended For months $X.X of compared million preferred the nine

loss same and of XXXX, LLCB loss Excluding the million loss asset to adjusted stock of on non-cash equity million, on and of applicable fiscal the was Calavo $X.X period $X.X adjusted months for stock loss common the net year nine fiscal disposals in XXXX. in year net for earnings compared first to

debt the end was at Turning compared long-term now balance July of to fiscal as XX, our to $XXX.X million, sheet, million XXXX. XXXX, $XXX.X of year

of the to of receive approximately the XXXX, company share a During the quarter. XX,XXX The fiscal Tax program purchased year calendar benefit tax received and California also approximately income from for shares the $X.X year during months company third under million first and nine expect CARES million Federal the Act, Refunds the repurchase in XXXX. $X $XXX,XXX we

remaining XX, is As the authorization program this of under XXXX, $X.X approximately July million.

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

Harold Edwards

with Thank you, duration pace open guidance for reduced COVID-XX, doing and will impact Mark. their capacity for year true customers XXXX. continuing not is to of and doors, we those food at financial we to service at so begin the are they’re cautious our issue fiscal and that specific along a a seeing be unknown reasons, it Well,

volumes continue and sales We in housing at a unit believe continue we expect year our XXXX lemon record to will strong pace. fiscal

continue very in continue to fiscal Looking slowly well the in we we XXXX, open channel fiscal as year bars to back we believe beyond restaurants up. grocery as and to achieve in are well-positioned year they and perform XXXX, solid growth

bearing many lemons full fiscal become to to come. the also years the XXX acres additional We acres years, full to four X,XXX of over expects will enable have us for become of non-bearing next company achieve which to estimated growth year XXXX. The strong an X,XXX in bearing organic

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

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

Operator

line Anderson first with from [Operator Stifel. of the comes question Instructions] Our Vincent

You may your question. proceed with

Vincent Anderson

and Yeah. Thanks, afternoon, guys. good

Harold Edwards

Hi, Vince.

Vincent Anderson

Before going hey. into --

just to River and I well Water Has lemons, to quite your Colorado quickly, ask there going want recently. progress performing prices any Before been rights over prices with really recently? copper in gold talks

Harold Edwards

talks it and to the housing dwelling. from Central the housing mining usage industrial more Phoenix, you’re There’s for as Colorado relates the way over Arizona companies of that of been from rights of the lot supplies reliable urban And the agricultural as specifically the as requirements for development to, to the it to just systemic and of in there’s a water usage, more water reallocation Tucson to for less requirements to more it that following Scottsdale, ongoing relates programs allocation and River all Project been but resource relates interest in referring water. that urban so

So announce potential to free anything while River for up are we creating development beginning potential rights uses. for this to it to investments relates supplies irrigate our don’t into as have urban more efficiency we time, mostly sales, actually how specifically and Colorado Water make at to we

Vincent Anderson

right. you. That’s interesting. All Thank

from what kind District of So prolonged But the kind comment but in heat recently does District of XXX what under it we you of just impact period of of in you’re it can time, is wave, kind fears with heat? stayed of or like back raise for saw terms there, XXXX. whether degrees looks any District X any seeing X the it’s X on statewide,

Harold Edwards

Yes. point, very it damage. heat X District minimal At made think this we with through the effectively

temperatures a and in huge XXXX. of in are took heat to difference recall the the Here that that that is, September heat in we reached of District very difference, were difference. X July biggest comparable Vince if event makes on The we the XXXX coast, timing here you and place seasonally

to that’s heat able our much the So were bigger, as effectively the relates in on the were trees it XXXX. hanging endure actually fruit avocado stronger, and more trees, to than

of Some says initial event, to can point we our be younger the from but off at year. we’ll trees lemon did for point forecast this that that the that nothing significantly suffer next of

most in we we So it heat that production -- week last we’ve of through our cautiously think of this optimistic intact. made events the this with series

Vincent Anderson

of if economics found an in, lemons last went how kind of actually contract in food branded one, Mexico one with delivery Thanks. restaurant, of to I Great. then whether use, just it volumes, that kind sort a And kind of overall, changed the of have then from food area your customers, just as the how not and those grocery, could service, but conversations with sneak just back decent I of discussions? we normal, are and nature those of I service that is focus larger

Harold Edwards

Yeah.

only some channels. of Limoneira, So retail other with not the clients is that the from well know many you but your competitive work environment your into as sell retail very incredibly of,

shift seasonally a we California the Coast just the August, every supply from So, to from supply. Mexican going experience

it And level at that. home used. for specifically behavior Mexican a we the you our where change, in relationship. do down have also. Mexican a that I’d We box you -- the going well. the because And standards very into asked delivery puts do very seasons we for in That’s deal Arizona, co-packing quality of see customers there say that pull and co-packer the high why as service out sales. That’s X% the California retail that a Limoneira quality, of fruit, saw same a changes We that that club fruit

out we And season of from first very know had H-E-B through part the specifically sales know, which as because the percentage very, suppliers, all H-E-B. was retailer Mexico, Mexico. shifted strong we Texas of to relationships example our have of summer, towards declined has probably other sales into the supplies H-E-B with of a that saw called an -- of H-E-B, based So you you

dynamic. multiple supply. So And been. it’s sources has retailers always It maintain most of

customer lose always offering it’s to product to full business. sales doors customer, to grow up you pick team of every continue on when but surprising day our a and new offerings So active stays a the just try retailer knocking or you not to our that array

Vincent Anderson

Thank right. All you.

Operator

question Stephens. line next Ben Our with Bienvenu the of comes from

You proceed may with question. your

Ben Bienvenu

Hey. Thanks. Good afternoon.

Harold Edwards

Ben. Hey,

Ben Bienvenu

I want made. on to you it focus some Mark comments that

you talked carton. costs on cost manage look for You the looks per your packing about of really the buckets carton the lemon selling really basis, It costs. everywhere per you nicely agribusiness like when costs through guys a except

look costs, And were cost So that there kind your all at per there. just side working growing harvest cost grower doing then, we on what of structure? of kind substantially on on basis, those pieces costs, was what business a carton when to kind with going curious over third-party you’re the of your down cost that’s lower

Mark Palamountain

Sure. That’s great Ben. question,

we if was the rush of started So, this you in mid-March as and DX season. basically time big that’s recall, prime COVID there

got much we we where through June, another first saw where hit XXs, in we we into a we really openings per went those so than call place, actually unit. were utilization thought year, we as utilization the, and last so it, progressed and low-to-mid harvest the in had similar to again, until And experiencing we the bigger basic

we we be. the opening, that started June’s And turned so, better were QX seen we more they where about then even probably had again. as the of aggressively which -- to had June we harvesting And optimistic we’ve started one a in out

right utilization, end XX% about you XX% is goal our we’re the So XX%. now to at and know, I as think

cost, harvest to unit come tree, through have put per So right? every It because packinghouse. the the toll to increment takes to got off of it, it its really has you all specifically, below on all the that you

are part, the line where then, demand but the where most the wash, the seen really on at per that’s basis. a unit you’ve comes it certain for the part there For that. front And off primarily the of there instances of reason wasn’t

more perspective and to So -- coolers, possible, different all year was export from a so as utilization last fruit not tired, we unlike at if the reason. that got you older longer couldn’t sit let in it had of go it just it

haul I pick buckle our question individually, we’ve Harvest, to that different think all transportation. really costs. of tried of and second down you have your components on to

vendors to was accounts we’re working outside in which on our on continuing G&A for our the with of We’re some outside G&A year, ERP which specifically items that. implementation, reduce million we’re starting to all March diligently discrete our target attack related and expense some to enhance that that are of to track $X for for

So, I question of that. answered your hopefully, and all

Ben Bienvenu

both Glad heat going color have the am perspective? color. I Though and any get on continue largely ask, into and lemon spared -- to back and the challenging to great of equation some improve normal. just at you supply we’re might I is to That’s get things year hear can the at point that hear we I this that of of we your and you side from from want Thanks. to issues think all avocado supply forward? hopeful Yeah. that a next what acreage demand like crops the that the on choppy. all And look curious things referenced, as Can to recognizing side Vincent but comment

Harold Edwards

Thanks. Thank. to Great Ben. Happy question.

about very very mostly optimistic question. for year, next We are cautiously this

was new as crop, mid-to-late the District as its looks to which through is like industry -- our and carries year. later That year. it, it in potentially usually desert than X call an and at begins then last which XX% way this it’s typically the it August crop, smaller So it point,

grade, and quality improved or only the first range, of XX% valuable find pleased And pre-COVID export that good, the sort of for and an looks have that Tiger levels. begin reducing months I’m oversupply the those its next see back Japan in bodes way XX% means back of So crop be would very countries couple their fruit to from to way will will the we fancy smaller we very the not what we’re a well to of to markets, very which of to the to is starting the found place of some percentage but Korea situation, very of call take grade of harvests believe lot pricing. also to of fruit and that, normal sort the many helpful of say that export and markets Asian minimizing

So that’s really exciting for us.

to have pick in for But bit we don’t the the get the fruit We’re to because just starting fruit now got haven’t the fill orders now right we chomping because up us that at we’ve but them yet, should because is that’s can’t we harvesting we here desert. that the after been that able soon. start see very should irony and

it to carries that’s X starts excellent. majority April. down March, is, the coming the crop crop, what’s -- about looks our Valley XX% in, where some crop The XX% Joaquin crop, for in As of we our mentioned through are on typically are, and that trees relates San as of say, looks comments that’s of the District an size to November as quality are the that industry. online. But that exciting younger us The

to two growth that’s in for the way. not exciting don’t up We things started out comments actually will of think we combination to we because and of any own because It’s that make so price. anticipate yet. X only going X be production So be too set very well but any fruit District hasn’t our volume stunted think early those also District bode on to

just Chile, don’t put where it. and on the our global next a know, perspective similar of crop in to also significant for a and size a of quality crop we the we year So in Argentina sort increase see in

California, million year, million fantastic. year around which crop for and avocado lemon quality it’s looks the XXX pounds we going were the this crop I as deal. in to pounds. our to the XXX very pounds year. an of the come million size this is surprised with And of side industry-wide like somewhere that’s X in So pleasantly full the think, On It at

call year, to that a next Next million but in California ourselves down, industry believe for is larger we pounds, crop the XXX be it, going year. see we

So quarter. a the that maybe to guiding But you job for a put and and Oranges two to that, on looks when be looks things a we’ll together last is smaller, early our but quality piece opportunity do after better, little too number specific oranges. put for the try better will fourth those price better. the

we and strong specialty think oranges So that as citrus will be year well. the next the

Ben Bienvenu

That’s awesome. Great. Thanks so much good and quarter. congrats a on

Harold Edwards

Thank you, Ben.

Mark Palamountain

Ben. Thanks,

Operator

from Our Corporation. next Securities question Ben Klieve comes the National line with of

You proceed your may question. with

Ben Klieve

All right. my Thanks questions. for taking

regarding that how -- today? COVID-XX on quarter fluid one and quarter kind First lemon pricing the market wondering you quarter the end range wide had assuming obviously pricing second of lemon I’m it evolved how end say, elaborate beginning of stands was where the given could to bit of really the the quarter the if third a from, of and a the

Harold Edwards

Mark with start then a explanation his comments. will I’ll quick provide So maybe and just

ended pricing anything, more So retail, the as the that’s grade that going. thing really was to where fruit Ben, our fancy all than hurt pivoted up company the

we a saw earlier perspective as very we June. to alluded fruit up, stronger actually And situation. as related majority to to a level bars pricing, country that grade in massively June, much an his was the and comments we supplied the us second of perspective, at our and and fresh pullback utilization the as so lot it parts left felt as that a all And a just few because some challenging a really that Typically, second again. fruit way absorbed the with of for homes In and it back the it choice fruit. demand was into But service. restaurants in but utilization, of that’s level to July, -- food only that grade over service increase that not that food so the of find oversupplied its was in for pick began did of very also price but very, the company, the Mark industry fruit pulled closed saw another

average got first experienced issue a any that we fruit poor think, our the other third in but grade Mark we a in fruit a carton second grade where color? pricing the total of $X like for category mix in per to product last and for per very the lemon as something price our quarter was got what company of, led So pricing decline total total good I carton we year. versus

Mark Palamountain

Yeah.

As Harold export potential, call product as to and that mix ended higher ability so X alluded then lose get to it’s mix has what the and the up that’s XX you season gets at into tired, fruit really it District call the we the and that, it, which or effect. what product

with we’re our now coolers DX. basically up just So finishing

industry that calendar into is about prices of an average see really way market commented earlier that end mid-to-end I export. the we Currently go. the prices year, October we starting sizes, benefiting up left year really $XX But we see to fiscal the as we think like or with steady volume. XXX,XXX our think the increase of ‘XX. have in the to around. it it’s between some all cartons $XX shaping overall so of of think, start to see up starting our exceptions fancy, And show we from in our $XX, I that the fiscal to And choice sort we’ll and with then down in and really we

Ben Klieve

up weeks alluded use last a quarter seven Very weeks lots over till quick eight first, of fiscal you Limoneira, or on, but question eight the have the sales eight to harvest is Thank last a question, that you. And last Perfect. clarifying week I helpful. the per that present on day? weeks, was

Harold Edwards

Both.

Ben Klieve

okay… Well,

Harold Edwards

the those have sale. builder home so just actual currency -- to those sales, the home that not the are lot And we clarify,

then the that proof it’s which selling, velocity homes lots more So allows really the out. to us pudding in put then the that shows the are

Mark Palamountain

a the seller’s the home we’ve to And we their as control well. now other perspective bodes going of are builders, our that of future very don’t and data up exciting for that sort pricing the point well seen from price right guests project that, and improvement is prices while

Ben Klieve

were than of a laid this, compares And us kind is project. this -- questions sale week, you can quantify Perfect. total by you it. I if substantially to guess Got kind remind predetermined on the mean, that, then it’s of -- of weekly goal seven kind two goals of whatever greater help first, us this that will? the how kind this I out homes your

Harold Edwards

Yeah.

which budget to Lewis for two a year year So and week. comes homes year, this was Group and in December for the forecast The be every an we do per operating out November, forecasted

So, started around substantially greater really It right velocity. COVID. all

going the basically if to recall, location. had our X the fastest, at rates, not we gigabyte You interest the which also areas work and providing zero you live one harvest to community, And people ability is home. urban are for the of a and fastest from at departure if obviously, internet

all see. I think to those the really together incredible So and quite velocity it’s boosted

Ben Klieve

good. my final you Well, Very actually just answered question.

in So I’ll it and congratulations great back get there and on a leave quarter queue.

Harold Edwards

Ben. Thanks, Great.

Mark Palamountain

Thank you, Ben.

Operator

Mark from question Capital Street next Markets. comes the line Our Smith Lake with Instructions] of [Operator

You may proceed with your question.

Mark Smith

locations much focus ask to customers? can about on of out grocery want break versus how markets really growth, I end kind there was guys. within growth existing Hi, as you new you

Harold Edwards

some be and sound the Part the packing in I’m to something too. to is goes house that’s was remember But of the like accept now us larger allowed was, state-of-the-art old the XXX was put bag successful. the it is, we the orders they thing rate made massively a related bags the CapEx like and to it something XX pivot in it, new it from just what but minute happy of growth so minute was, bagging bite bags and was these we the a able larger that to success retailers. main it per So where trying technology productivity in more minute

East not Specifically, up more more business on of were we all picked little picked Costco we than we We the Wakefern Those bit picked have. business this Kroger and a lot and we and did but new up H-E-B. business at Coast actually a pre-COVID, little bit certainly a Costco normally back level. up

specifically sort growth existing your and to were to to more of customers. of question, to say I’d And was XX% new so, customers supply to XX% the

Mark Smith

as labor then people on now kind and to where able of like find market needed? And costs, on about Excellent. can just you bring far talk at right looking as being employees what’s

Harold Edwards

Yeah.

the -- workers we’ve any So with Limoneira time years. has strategic living here take given who to workforce XXX [ph] capabilities, guest and very working HXA of us. last tight are at labor from of upwards has Mexico because and housing programs for been But two able have been advantage

from but COVID You’ve of workforce the developments some California. in probably some challenges us, from about not read housing of the here other that provided,

and challenging that safe, business outbreaks. any And healthy and we’ve time. wouldn’t intact and and to also kept this very experience we the So able agency masked nobody Ventura working been were fortunate County was have through that in that avoid Healthcare but keep us workforce facilities distance, socially very basically appropriately sure we’ve we down been with so COVID, all that closely at everybody that our of with making been that’s came our

Mark Smith

if looking Perfect. The last by year price at new kind talk new kind versus driven avocado how -- year-over-year can much end these of difference was just and last to, me business this much year the you and the versus markets of the of how that growth, customers? of for that one just

Harold Edwards

Yeah.

is the the around So to marketplace. because avocados This it’s the are utilization. Consumption kind voracious demand fruit world in of grow. continues perfect XXX%

the grade can we in And the difference biggest the last year a got fruit. higher We of as and was, in XX% grow second of can year There’s so, price. a our it sell just is with grade to farm. try you X% smaller second the crop, sort if range keep two bottomline the to The it, grades. There’s it. you then grade probably first

can’t I X.X the was, it it believe. So remember total was volume I million,

Mark Palamountain

Right. Yeah.

Harold Edwards

it weather. the perfect actual allowed pretty But wasn’t on wasn’t had of gave hot, very that stay tree at a but year, cold production. and fruit, that another it spring, was summer -- to of just the good the XX% and to where XX% We late us was $X.XX, fruit early And the this combination It of temperate. grow. it was too was it too set

it of fruit can you weight gains piece growing actually a If grows. picture it as

we up the price XX% cooperating and getting picked and decent That Mother fruit. to for and unbudgeted keep the up with that able being to and us a on tree to another by to then pounds was So unplanned unforeseen Nature allow unexpected produced. and total pretty do us ended XX% it of

initial well. be So, about ounces fruit is an than all coming see we we better, before, of in smaller trees last good set pretty the to all, and the us us year for this getting could the and is think per -- now piece even can to be is this California lot gives that year which it as was was be next which that believe has a pieces good alluded we next million the avocado to X X year, because right going we year a some on now as we that industry opportunity there’s to ounces it year. XXX And pounds believe to crop the pricing see it’s belief in into I

Mark Smith

you. Thank Excellent. Okay.

Operator

end we gentlemen, Mr. and would for call closing have the to I session. Ladies like today’s reached turn Harold to the of Edwards over back remarks. question-and-answer

Harold Edwards

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

Operator

conference. today’s concludes This

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

Limoneira (LMNR) 10 Sep 202020 Q3 Earnings call transcript