LMNR - Earnings call transcript Q4 2020

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Operator

Greetings and welcome to Limoneira fourth 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 Mills. John would turn over the your I

John Mills

afternoon thank conference everyone us Good you. Thank and fourth fiscal for you quarter year XXXX call. Limoneira's joining for

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

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

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

During the dramatic overall our business. due retail of XXXX. affected affected We instead our to that continues our in despite quarter as harvest grocery was quarter first real however the lemon back exceeded half fiscal affect fourth improved in development quarter, reduced made soft we at the March this XXXX, the dine the Pricing citrus and pricing Domestic since venues. the of continue quarter home our consumers achieved lemon COVID-XX continued XXXX. volume focus Asia fiscal during was many to the has of affect important in volume pricing expanded to of and foodservice of on as in had seasonally our business exports pandemic of Limoneira estate our fiscal our beginning fourth short-lived at businesses this domestic to COVID-XX on expectations. and foodservice strides record areas up

lemon well-positioned leader exports properties of $X.X of avocado prices. in which recognized lemon winds our proceeds in crop quarter once we fiscal normal year-over-year last and fiscal the and $XX.X million in fourth with average to orange utilization vaccine were in COVID-XX Fresh revenue distribution. foodservice the continue starting fourth our dining for last of fourth In $XX.X challenges, was in year. revenue during per same the closures coastal in of addition, are to our each fiscal than discuss year lower business the period affected XXXX, resulted from of divisions' The and receipt to compared fourth We despite of compared year. revenues decrease lower Even fourth performances to was in the million $XXX,XXX quarter, I to and improves a quarter. revenue higher carton XXXX. down avocado out the quarter quarter insurance now agribusiness. export the demand, our due these will million be foodservice due Agribusiness in

our estate segment. to now real development Turning

million XXXX We builders, than homebuilding results XX lots now the lot during primary these at new and Limoneira additional from closed Lennar, announced $XX residential XXXX, our by on expected six lot beginning closings of inception, XXX have stronger have fiscal of in of one recently years Based the XXX the distributions closings they cash in since on now XXXX. XXXX. end expected throughout expect next annual visibility fiscal harvest June including of fiscal units we

include we of chart increased outlining our in opportunity campus East You annually housing will potential are cash potential at well notice provided in our a expected a upside as next the in our distributions from the do have years. Area X medical earnings as cash distributions expected the release, development. The density not harvest six during

those later be expect to greater year. on opportunities a in this We to position transparency provide

over the acres over of selling, XX,XXX of acres future acre-feet expect now of we additional company many housing Our XXX prime residential and assets. monetize nonagricultural assets are we land, XX,XXX agricultural has water to in

stock. opportunistically We are repurchasing also

to our long term will good believe of for come. shareholders many We and very be continue these continue years company to assets stewards reward to

long grocery oranges expansion for term the positioned into look we bars this improvement club even believe strong pricing restaurants avocados we vaccine realize to As thanks allows during to pandemic. well-positioned we growth, are and our to in XXXX, reopen. expect be and lemon an once very COVID-XX revenue and will We better from and

progress domestic in And by on to the lemon fresh forward volume will coming months. encouraged now estate real agribusiness in you the call are year in to increase that, the over Mark. and fiscal and XXXX look turn We I our with updating

Mark Palamountain

Thank everybody. good afternoon Harold and you

reminder harvest revenue view a are driven listening, everyone the quarters from while business quarters nature on are our year-to-year and business, annual, second our periods seasonally to quarterly varying due and quarters by to it is best first third our seasonal softer to and stronger. not our of As the therefore fourth an basis. Historically, is

$XXX,XXX selling, of fourth year. pandemic-related The a fiscal crop were quarter compared of diluted to expenses, fiscal same dividends during in XXXX, lower in year $X.X reducing $X.X fresh XXXX, $XX fourth fourth and asset receipt compared fiscal income experienced of year XXXX XXX,XXX company by quarter Asia The the of insurance of for to fiscal fruit loss revenue A to revenue Agribusiness general to was to with during the year-over-year fiscal of was XXXX, of were sold EBITDA costs to at no due lemon of sold $XX.X from was with attributable quarter quarter of $X.X $X.X of of of year. $XX.XX fiscal of is quarter fourth quarter last associated XXXX and fiscal avocados of citrus compared in disposals. common price XXXX. year loss million agribusiness decrease orange gains share per agribusiness quarter period recognized closures period during growers fourth in decline the same in compared fourth the fiscal prior the of revenue previous year at to applicable crop of and adjusted fourth compared quarter year quarter XXXX of compared decrease of year was a administrative end $X.X Net For pounds net avocado fresh fourth the fourth loss year a to in quarter $X.XX million year compared loss compared due lemons year COVID-XX the of total $X.XX XXXX, the the XXXX million was fourth recognized per XXX,XXX partially for million the a Adjusted our release. the fourth after $X.X at last to Costs XXXX. carton at earnings fourth other net the the the and XXXX Net million average back Approximately pandemic. year same for cartons period. a offset $XX.X compared XXXX. of operating year expected the period fiscal during fiscal to the were revenue lemons third-party fiscal Operating sales fiscal year the lemon total fourth fourth sales of for year same in and million quarter and diluted procured depreciation was preferred loss loss was million quarter fourth net to of in compared fourth average the expense. demand quarter per in $X.X $X.X quarter the fourth the the average to XXX,XXX during was proceeds sold revenue for the packing price growing fiscal the year fresh of of in XXXX XXXX fiscal quarter of costs, EBITDA fiscal year flat of $XX per revenue per fourth fiscal approximately net fourth of million. revenue year. revenue compared reconciliation of was the fiscal to XXXX. year $XX.X million of at company's last to a of reduced due million stock $X $XXX,XXX cartons million of $XX.X $X.X the of year Approximately in includes quarter for costs, year to quarter million sold of fruit the in sales. from previous Other year foodservice compared Agribusiness The fiscal to of relatively in million net quarter fiscal carton harvest year revenue of costs related quarter the fourth million in a was to the million fiscal exports Pricing include fiscal fiscal for XXXX to pound, quarter loss operations loss half $X.X fresh cost million to in million the costs, $XX.X avocado period year. lower The million than fiscal of $X.XX amortization in compared quarter XXXX. the a year. in fourth of XXXX. fiscal in the the quarter the company avocados price XXXX, million of Specialty Total provided brokered XXXX, XXXX. to share $XX.X to expenses $XX.X during year

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

Adjusted earnings net per LLC Builders, the net share adjusted per based of of of fiscal $X.X million of EBITDA XX.X of for loss the year income of compared $XX.X stock million Limoneira loss for asset the million common outstanding diluted $X.X net $X.XX end income year on Lewis on $X.XX release. fiscal of the the loss on million to for weighted equity fiscal both applicable this year common disposals average for a and Community to adjusted stock for in reconciliation was at Adjusted XXXX, for years. adjusted XXXX, compared adjusted the fiscal was year to XXXX XXXX. in the Calavo, to is Excluding shares compared $X.X diluted EBITDA loss net loss million share provided year fiscal loss net was XXXX. loss approximately diluted A non-cash to

liquidity. Turning to Long to now of and October sheet was $XXX.X million our at year XX, XXXX. term as debt balance fiscal million, XXXX the of end $XXX.X compared

to of CARES a Act state $XXX,XXX has The benefit March the company in received from income to company refunds of Board XXXX, XXXX. shares up repurchase in common $X of authorizing and for share $XX applied program year the tax March and million and received of $X.X approved federal XXXX. fiscal tax XX, the On through During million a outstanding XXXX its stock these December October repurchase million ability income refunds. the XXXX, $X.X million

During $X.X $X.X we fiscal the XX, for shares shares XXXX, million. quarter October XXX,XXX year XXX,XXX XXXX approximately repurchased approximately ended in and million for repurchased

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

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

Harold Edwards

the going this this in do regarding uncertainty, to back fiscal The are strong initial create term. uncertainty Mark. pandemic not COVID-XX provide you, early Offsetting avocado generate year volume during recent increase and our global on near fourth and some pricing expect pricing we the uncertainty for of quarter expect of based affected we XXXX XXXX, we Thank orange lemon revenue domestic indicators. market continue export fiscal guidance now. it year of to the in and our crop on dissipates, factors to Until and half the to right

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

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

Limoneira, $XX to neutral. Fiscal to expected the We believe due to generate is to steady in XXXX $X is year is is XXXX we third-party generate generate year generate have next the more year we million. $XX a million to will six expected be Fiscal XXXX This development Fiscal $XX fruit. as million cash year in XXXX Limoneira generate clarity follows. of about generate expected million. expected XXXX to to cash Fiscal increase expected Fiscal be $XX to distributions of in cash Also, also to $XX And XXXX million. at is of million. to expect back the harvest is harvest will in from Limoneira. a grower as from harvest do of from the the campus years. our include potential potential harvest as X These expectations East upside in medical opportunity density not well increased development. expected housing at Area

this your to provide opportunities expect a call I in year. these that, would be And like transparency Operator? to open to to up greater We position later questions. on the with

Operator

[Operator Instructions].

Ben from comes with question first Our Bienvenu Stephens.

Ben Bienvenu

Mark. Hi Harold. all? you Hi How are

Harold Edwards

Hi Ben.

Mark Palamountain

Hi Ben.

Ben Bienvenu

build the you of X relates in Area additional estate a as the East you for ownership potential hospital hospital Or real opportunity? you laid did, distribution distribution? X the could here projected that or out well And payout East the project the color made Area X. that the it gave that for and parcel around comments impact you to ask, Is wanted exclusive solely as of distribution Thanks development? that East would around hospital function potential that to projected have that net the if you out from I Area the development harvest.

Harold Edwards

Certainly.

first. answer So of last I will the the part question

incremental distributions is about made all this So above comments we harvest. from the the

top is this So that. on all of

in was all seeing retail with targeted been observing property began decreased that receiving retail. in convert Area commercial zoned historically sales harvest. residential Paula So for retail, piece property we likelihood to has the into become development was of Santa and a project. property of that significantly to the since retail from we that benefits, the tax zoned changes the And is has and essentially are X acres it and XX East city first tax and big-box the forward benefits, The looking complementary

the us They a approached that building that complement today on they operates approached a with Downtown potential nursing and hospital a that and Care Health rebuilt that clinics in Santa the solving community the Agency office to hill for were about completely relocating by in eventually developing medical be skilled then would and house problem hospital by has, our community-based currently year of actually the living. Health Care medical the that the office up facility focus Ventura is the hospital new seismic existing of on the then Agency runs it Paula. they into three needs So a then the assisted to County that town reasons, XXXX. based in which converting And have

is a campus. for that And demand vision for is there a there campus so and that

part commitment ground has who and Care very structuring buildings nursing your housing would Agency would Limoneira a Area build retain living. we developer To the so, as nonbinding property and developer medical on hospital, and eventually a And for also rent opportunity commercial then transaction also that could to purposes. for in X the go with sale or some back would office the of land a though, assisted the skilled where become to Health And made will residential well. tuck-in be Limoneira additional used to have residential a first for that to the work closely East development additional question building, the the complementary the the sell

local more include commentary that recent really So project commercial intent East show project from takes is that the I then multifamily the that and their most concept density, county high able out, some this make campus we components highlights the complementary work. X And can that Area just likely the to the to hospital shape, and just but of development we be granularity will laid also there give much as to press also actual you will and housing.

So pretty opportunity. it's a

Ben Bienvenu

Great. Okay.

Area this So East is X.

X you change. down? maybe JV to these this, begin But numbers do and cash, that's Area needs East if If to the incremental I distill relative comments your develop all

Harold Edwards

exactly. Yes,

to So with the X partnership nothing the has do Area in harvest. East

sell of bring it's to commercially acres back transact Limoneira XX Limoneira. would and to likely so monetize zoned that And by way that today, upfront land would the owned would property actually benefits most development be we incremental the that it Company the

Ben Bienvenu

Okay. That's a Thanks. great color and is update. this nice

realized commentary export around and recovery that questions. impact is the the then more price your quarter that as the is market quarter, impact have relative impact a will price also, that function market we for pricing your lemons fourth the Harold, the say, hinged to continuing winds to any to into On in export impact of markets the choice XXXs? in One, two head And And the you XQ broadly? mentioned? globally, for, first Was residual COVID XXXX? two, not

Harold Edwards

are Those questions. great

and assume, I doing were markets pull just So the begin again. export the And part time, quarter and of first have almost shipments the to of of first this second quarter, to, seen we around tied our we pre-COVID the restaurants to levels and year, of venues, partners, to the saw for foodservice will we distribution our Korean export reappear vaccine the of towards towards period of be bars a and those the but Japanese the directly world. markets reopening beginning the back

reclosing the States, said, the year. around the us of about you we like, United moment pause predict the reclosing, opening around being that of that seeing and sort which winds negative we situations to District have as in a were world reading opening the though, and on first rest X, the just of With distribution earlier X how gives to year, and each and are about did and new grade then of are of much districts, of District percentage pricing. remarks throughout have mentioned start fruit. our grades much District this X growing better a season, in higher a This we impact So

overall a fiscal in year positive have that pricing impact on expect will XXXX. we very So that

Ben Bienvenu

Okay. Thank Best guys. much. luck you very of

Harold Edwards

Ben. Great. Thanks,

Operator

comes question Sweeney from Capital. next our And ROTH Gerry with

Gerry Sweeney

guys. my good morning sorry, call. for am Thanks taking I Good afternoon.

Harold Edwards

Gerry. Hi

Gerry Sweeney

seeing foodservice a deeper I the there are question at headwinds rectify price these little there's other and headwinds. demand. is volumes dig record But on just think there oversupply the would today themselves? get even Obviously, even get export COVID, I deeper or decline a supply plantings acreage I and wanted some words, we of export is of to foodservice wanted to be, continuing if and if an compression? chance past in In still

Harold Edwards

today that Once we areas, properly on is of So great even those the back we development timing different can oversupplied. question, it production undersupplied. to and supplied. times that's growing and times get impact behind markets of is part the we we us when that emerging of the market and of be we question are of The because COVID-related have Gerry. certainly, foodservice that closures, oversupplied supplied growth get And there are with properly are growth, a the somewhat COVID we in that will believe a is and are and and we complicated and consumption demand when regions the times when basis those global we

have tendency a at really row so production profitable but blocks of a coming are out is the the this of and production, the the the age of looking the the going anticipating go, that's looking has forward not productivity then that producers in is there, that out, non-bearing been California. California the in the to lemon if producers you to, year online, come plantings acreage for in then lemon So acreage second at seasonality

we of pull So out. see that beginning are some to acreage

to that We in also projected due XX% lemons decrease they year coming drought there. that it's of this have its a fresh production experienced have total a Argentina, know to

supplied. that return when give that and us and levels and pre-COVID are to beyond and we to growth to there half that get back are demand global the that restaurants just that we factors as will we on global three properly question So back reason once that is and at to of like consumption monitor great we reopen there months COVID are look the acreage planted the once have a the there and get or out look we are believe we about continue basis it's around world. two But as demand economy oversupplied bars a right the that to summer towards recovers now, total and

Gerry Sweeney

is And an store of unevenness? globally, you as Got maybe maybe and out the that to expand your it. lemons ability have some and there production, out you activities production American some South some balance exporting of even shipping of

Harold Edwards

So the market. that that investments great part really Chilean normally almost be all consumed about can of production is our Chilean profitably within the

So the Argentina acreage to that it that. does different. find necessarily the the And to have targets lot Argentina not the of have much of nor don't European is market. there export a and great They or is But back production and a production, the home. oversupplied gives United us to go when consumption too situation absorb States purge a demand lot is to fruit valve markets. in in the that that the

what optimal and markets global of best opportunities at to production sources maximize find is fruit move the looking around each from to its out value. the constantly are way the to we So that

Mark Palamountain

down we actually start able that to lemons and seeing importing starting are off, soon their prices And some to choices fall and summertime Chile pretty Gerry, our here example, now exporting, way. an lemon starts better as into into of where they send or we were

So it both works ways.

Gerry Sweeney

and cash That's the Thanks. it at and flows. appreciate for harvest it. I it clarity appreciate me. at Limoneira I Got the the

you. thank So

Harold Edwards

Gerry. Thank Great. you

Operator

question And Anderson with from is next our Vincent Stifel.

Vincent Anderson

guys. afternoon Good Thanks. Yes.

Harold Edwards

Vince. Hi

Mark Palamountain

Hi Vince.

Vincent Anderson

might you well. some confirming there I there in drought So heard be cost Argentina. issues as the appreciate I down

one, you market Or regained So escaped that impacting valve talked being but has And as your the you Argentina that? yet? access well? is an about to have then, production European important Europe exit

Harold Edwards

about our So the your first part question of production.

news is the is that that's of Argentina significant the area And our north lemons Tucuman. produced. the us drought. primary are the So That for province experiencing is for majority production of are the great is Tucuman where

country Argentina. actually is up the year. Jujuy, XX% to coming in that in most of impacted been the are province in is province off. And to northern furthest actually we our be And the drought. have production which this so by But area up we the producing of And looks not

when market, Eastern a Central So today. fruit of good really very about is European thing. we we move where believe the our And that's and most we talk Europe

are were you that though are mentioned, in Western fruit Europe. to as move So issues there even you today, able as

Vincent Anderson

Prefect. penetrate in if versus in did flexible XXXX a fruit scenario on say. a if Maybe you year that? we if see be foodservice, the be to more grocery it. a slow from recovery is one, Got a utilization to you you could have were But how progress on of made sales? tough look XXXX worst-case we about going how fresh And of better? this quarter this in just terms rate more foodservice up can And could you year. letting Obviously size a export bit terms to quarter talk grocery fourth to then kind the of Thank demand how you. adding bigger throw in

Harold Edwards

great a question. That's

predominantly the the that so, of really year thing hardest grade, which the choice in second And the oversupply foodservice. way last mostly hit its XXXX into was finds the us lemons,

that into good things of to first of us of to around be XX% for move of be into because all, of we retail for sizing of that easier winds couple the to XXXX heavy in that coming year the are, last us normal XX%. XXXX, news that fancy that are a where mentioned, first will it to grade So fruit percentage fruit that In XX% we normally customers XX% XX% on are sort get at which back proper are fruit, we the much higher can value. means and grade to if felt and first we would

us thing this year. a for that's So great

we happened the sell can't and if June, X balance that we into partner, where which production to for crop, our of had coastal thing it juice March, sell came our products. fresh, year situation other juice May The us so we last that is April, a and District as

Our juice was predominantly partner had a foodservice. market outlook that

sell it our And them. to what the closed shut sell that to so majority by that to another We was They are of were we was over partner of and we supplied plant that out that. plant. competitor juice when taking unable pivoted

was has the find period retail been on great. of reality for time. so been that And utilization now been for we juice to lost the outlets That able completely has because that us very our outlet at partner have juice as negative a restored

next event the great partnership as point risk business each there that well Costco don't that with And in made that will better quickly fruit. big state, Coast. of below, of H-E-B much our retail get throughout Wakefern part be a its we normal retail, the a to don't being we in we growing to we we one we the the us. the and what for a rainfall difficult juice this is pivot but rain with us much will move size, biggest the of is for in for Costco to though our factor The the juicer proper fruit that specific rainfall. foodservice the sizing depend levels I that And throughout and So is orderly California success get this of our market would have on is has bodes of the way for if as the on our an smaller so over utilization outlets pieces because year. And East get areas. only crop don't for it get back business also total the up like retail for year, Texas national in progress next Picking customers, our to

that chance give customers seasons much add better that So the will market. sell to for actually growing to us a have the to that sell we trees and more the the bit greater out to cost, give our and the to is stretch sizes we a want. the normal may while it strategy our grades want And sizes the little market opportunity a that

Vincent Anderson

That is you. perfect. Thank

carton should is of to? impact for So I you be just so, if are And we or fresh so? guess looks against them a you some negligible there pulling. it that measurable kind first the Or modeling be would year on net kind bringing Those XXX quick housekeeping acres it one of question. might acres netting old this be are year, like you

Harold Edwards

lower is But about crop District that a the lot of think Vince, answer tree the is X, way online ago for moving are us. District that, there Joaquin is that and everybody acreage Valley, in in part are a lower So for it, X XX% to the question. XX% for industry to District than is now pieces was us. year total we of the and in San X. that's But up coming up where it the is

to to District XXX our X on same trees Coast, it still And talk sales about little not of about now the enough So it's the should to know. acres we because bearing. come are of early too do District X in see size. the as of then We total down those fruit be still crop

So to higher with of fancy able that our a because it's and that see to to percentage year now. going is grade only fruit assumption similar be coming last are online we

and down the later really be extra size. can So if rain difference get year. in that to us that maker get will confidence And come size, it that we the will the volume that and

Vincent Anderson

Excellent. luck again year. guys. this right. All Thanks Good

Harold Edwards

Thanks Vince.

Operator

And from our with is Securities Corporation. Klieve next Ben National question

Ben Klieve

questions. for All my taking right. Thanks

Harold, the to you industry getting mean, going here. pricing around wondering with something if extent to are hope on that's really been is does of kind what quarters opens for that alluded the a mess elaborate fruit on I you to leave but already better going longer, in not in much? a a you the too the up? pick your trees at to for that as little and longer looking fruit am with Or are event are foodservice And months leave processed of bit more bit really bit how this I prior one managing up? inventory First that coming you you could in foodservice answer,

Harold Edwards

question, great of That's that a our And the business. Ben. is sort of nature

then a of and and nature do are naturally not the storage, and off put at the fruit are So we front of mother the her letting put it from what think in just each which setting inventorying what getting and sell and sales tree or the we to you juice have and on sort the pull or and districts team risk a really tree our we of it this a dump thing slowly, see rainfall more it fruit it to know good is job the have up growing in have done then us because contracts sales. of to have demand we lose customer news is, we plant to And and unable growing with behind the if it anticipate are good anticipate are guess to I storage, you you retail having that send lot values. into because we lower creates allowing more much we customers

call it huge won't And we utilization. much put value getting goes basis So the can if into the those a it in if cost a to cold sizing you also but knew good our strategy the because just cost factor a it, for later the weren't put the double that in aren't we really it to have be to the just and it for keep plant. it as what and fruit a think to in the mother out in lower once that determine will you do into juice harvest able storage, let when storage, us Whereas of our all going send you monthly and combination then time you the weekly we keeping able that we it's negative the into find the to home of of actually our fruit. fresh put all optimal straight we that season but on all juice we to fruit, got things the sell plant fruit nature as we cost to job on and because is in day-to-day monitoring

of challenge, than fresh XX%. us result April we XXXX in March, really suffered it anticipated. and because which utilization we utilization negatively was then were we when summer have really Our impacted would so summer that COVID had is lower so net months, just And juice and much the in and plant spring May,

into closure going on the to with look basis we as challenged a of be forward go-forward some at So foodservice. XXXX, are we know level that we

of pretty retail and take-out quickserve restaurants pivoting doing that all our are while are can of their we type drive-throughs combination our really that opportunities that improve as export good working market those of So should as a the diligently part improve the fruit of their in still to fresh meanwhile focusing pricing. market. lot with find things for overall and we on business of And utilization and the attacking and should to

because and we with demand foodservice how foodservice and quickly because just the careful the export being are of we of also magnitude business. unsure We were just slowly the see reduction of are will guidance or return

Ben Klieve

can of like from picture and My And Got dry updates water you the it. big luck it's in far as I are all? Well, am context you the even in over how interesting. how here would appreciated. particular water Basin. about rights. the in best you a in regarding Very an do kind a on year California tricky rights and said, any thinking you navigate, of, impact, River weather current a are you general update year drier is at so other be of Colorado so. those The question looking but year just to next provide at hoping

Harold Edwards

to about Happy water. talk

spoke became happened that's is for thing in capital water water has time the been developed water interesting. think beginning last and now market the be is to futures markets that since publicly a I actively we which is the traded,

more of water scarcity, there sort becomes question with your implied, there's value rights. water as and as So also

as focus go and being of of access primary so With agricultural assets all deployment we our water, operations. water find that water to we area of water River have the production the Class to agricultural areas. our our of X it one And have do hard the basically majority relates using now monetize value as we and monetize though, right where our that portfolio ways our we and said, that rights. assets surplus of support our working And to certain to is water around our you to, investments in that very land and are to have is Colorado water

water that assets. that We potential find about to with any that monetizing transactions equity have terms feet But of has XX,XXX of a report buyers water water relates really that of rights. focus to to a to specifically of we and group the monetization partnership are able a Nothing private try have. structure to those being water acre speak those on we that to in working

of waiting there is and more now it of imbalance rights, eventually a there time the to haven't demand our As now. being anything pumping to also will this is those But right imminent. don't pumping supply We used relates and first that demand do right But basin rights point found just our on monetize. water. and exploring that Santa operations. begin to the the is that for those Paula are that where are opportunities transactions to that's At some put have though, board. farming And we supply we

financial water not So a that than surplus those we will monetization relates those monetizing but rights. much pumping won't to experience to of agriculturally, we XXXX, some water return other assets going as providing significant it have sell in and probably relates rights as are to it XXXX

Ben Klieve

both those. Well, Perfect. it. appreciate I the on of Got color

in back it a does and lot That's that I think in queue. will for quarters here I me. coming jump coming up

Harold Edwards

you, Ben. Thank

Mark Palamountain

Thank you.

Operator

Lake Smith And with Mark our comes from question next Markets. Capital Street

Mark Smith

guys. Hi

other talked just anybody maybe new into First during or that quarter question changing insight term to with grocery you And me new else the for some within about partners? and retail? already kind of partners of additionally, trends long the some consumer your of is, discuss any prospects these you added

Harold Edwards

XX% we to customers experiencing is, earlier, were over it when that We sales to thing guess pre-COVID to retail. to the the exciting that foodservice pivot we in I forced are COVID made And retail. were we and but we tried allude hit, comments to XX%

we progress And saw than some some great hit pre-COVID. so that's And at we seeing have COVID And approximately of retail demand are stronger with made great much XX/XX. sort we translating retail customers. once new to

around suspect, sort and coming the that for we begins the I of the and months suspect I accounts and that on we But business so some contracted more for here have exciting is, and have gradually some team focus set guess of guess what restaurants out some foodservice our new really team new there's and the there about is bars there sales a demand, And as pandemic. recover and and hope demand with bars on demand us. at because it's much is that's uncertainty total with foodservice more the up as stronger sales that of actually customers grocery we retail that total new as penetration stores. hope demand are will to the high that once that be in-home of anticipating a shopping at now are past to and cooking country sort reopening will vaccination restaurants total doing the at today consumers foodservice way lot levels we of behaving recover just get it but and we found also continued we begins And see consumption and coming based up retail, what

Mark Palamountain

highest possible still I our value. And Mark, very chasing and might thesis after that. add, fruit lemonade, are fresh gets lowest focused of our that we if Obviously, the QSRs grade on

chicken the the expanding. QSR So Raising our of South, one bigger of customer Cane's, out

balance they of XXX focused size grade really It with that helps two are multiple are I pick now. on. one we over fruit. stores lower or think that those And more of we up that

again, for So us. will a that focus be

Mark Smith

Anything Okay. profitability Can new low else are you we be year? other we environment stay costs? if And really improve at here, just the just then me especially look just commodity looking you The pressure an question seeing for you profitability. may is impacting that talk prices? how this about the labor really with only as that in at

Harold Edwards

negative. find level, of to to first, and been April of when are able months first we above of ourselves and Yes. different but quarter a the reasons in, those the find if fruit the demand and big March, oversupply this believe with laser May. destruction going see profitability we always have is we the we price If above and The speculative, normal coming but biggest way, that's the year good We is profitability. utilization And sort cost we down we lot much to of the if to in if call The focus in XX%, are big that And levels. for fresh now. us XX% fruit to at almost which have talking our slow by But to get back, spent a fruit, year volumes the real achieving and the But through first row, about to did, a impact grade sell to to the given the utilization, business utilization. first demand time good a has ability with created then with call XX% to have it, the And a our good cost a our our should then realities was achieve been probably worst-case, we significant pivot it right the profitability higher foodservice XX% cost second average to produce of us commodity this to carton of fruit percentage that down back restore for and grade that $XX loss can get grade profitability. percentage impact months it's through have our level restore of and drives challenged, our but the pricing allow return the that carton those can fresh fresh environment, profitability. per is us grade get beam third a second recovery level on the for drive then percentage we $XX that pandemic utilization fruit that will will to, will would allow that we the demand grade for the restore of that we and very of first what challenge we we that's come a retail, and historically and able cost because a we shipment to see of completely be our the then of foodservice foodservice. that total

Mark Smith

you. Thank Great. Okay.

Operator

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

Harold Edwards

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

Operator

This concludes tonight's webinar.

You good your evening. time. this Have for lines a may Thank at disconnect participation. you your

Limoneira (LMNR) 12 Jan 212020 Q4 Earnings call transcript