LMNR - Earnings call transcript Q3 2021

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Operator

Greetings, and welcome to the Limoneira Third Quarter Fiscal Year 2021 Financial Results. 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. It is now my pleasure to introduce your host, John Mills with ICR. you. Thank

begin. may You

John Mills

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

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

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

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

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

Harold Edwards

and John, good afternoon, Thanks, everyone.

well avocado fruit affecting of as are COVID-XX rainfall, sizing agricultural announced to our quarter, the lemon lemons per third driving improvement the the our operating fresh income improvement the increase During in reduced lack entire exports utilization, primary the initiatives reduced cost previously widely fresh logistical Asia these continuing achieved XX% our the were due due increase despite as publicized to in behind price carton global year-over-year. countries. We factors higher this to and in variant Delta of and of that delays industry

third Our earnings and hard for And very in on team had headwinds are year growth we the temporary reduce fiscal about positioned revenue we our quarter worked XXXX. to are how these effect excited results.

year same volume harvesting third million, million each in affecting period quarter a our quarter, logistical of an lemon The performance third and the to was fiscal division’s now Fresh $XX Harvest the of decreased well, partially project fresh provide industry. Our was real delays this during to relates year $XX discuss will to on I I’ll estate with of agribusiness. update few development at Agribusiness business minutes. revenue our XXXX. fiscal continues perform lemons in million $XX XXXX. to $XX very of compared the compared million, and revenues Limoneira starting project for

As XXXX. year quarter of were strong fiscal lemon the third utilization pricing and in expected, fresh

highly due pricing was $XX.XX price Overall, to XX% delayed including average shipments utilization compared into to in lemon the year. was revenue rainfall Coast, lower which resulted carton many the carton, $XX.XX California prices last Argentina, harvest per of throughout to of revenue agricultural quarter. However, congested decreased lower in temporarily and sold. in sold. supply fourth to of throughout reduced the lemons Chile the period. the constraint the volume delayed due million $X.X the Avocado the and pounds reduced XX% overall quarter rates in fiscal of and million, was average actual per were year third prior along higher compared products, publicized have the oranges world, $X.X XX% to fruit West lack compared the Orange to Fresh as avocado to pieces with ports by size offset price XX%

now segment. to estate Turning real our development

inception, very since Our lots XX lot Limoneira, fiscal at has in closed well XXXX. real XXX and estate quarter now closings the project, third perform development continues new including to of Harvest year

million We in from expected XXXX. year of years, of in fiscal $XX timing Harvest are next at beginning distributions the six Limoneira cash the confident over the

East in we addition, believe well as our medical announced opportunity number Harvest potential Area of at sellable increased stated In cash recently of X potential due lots there’s distribution our the Limoneira, to upside development. in to campus the entitled as

our Tablet improve to calling, fresh daily tree you from Table the the our a the data constantly sensors together that compared tree we matching This at health to with In via many of of factors of client block together with platform yields constant And to as the year. consistent soil the all then produce in fast-paced This fresh by time including ranches attention we lot sizes data efficiencies quality and a on located Fresh needs valuable size, algorithms throughout see the data utilizes along well on Citrus our Throughout creating with models of distribution one One to quality efficiencies fruit and every within will distribution year. consumer, This labor efficient fruit spring we measurement are worldwide centralize implementing and innovative water trees harvest, of initiative with harvest customer demands. order enable combines to predict to monitor predictive as of improves time and rainfall improve are with in raise packing industry World in program and This digital stay and initiative. on to docks. packing improvements These create harvest. entire We tying hiring water This to and our and temperature of our global Farm are the more levels be team transformation, also summer, lack by there’s last can team West fruit utilization throughout efficiencies entire We our teams current will accessible all aspects the and of to chain also information the efficient from operating business. the increasing expenses front while the tie that moisture measurements grades striving our growth to gather more the sales Coast ensuring being farming, and us and tree wind. sales. harvests, to assets. system been on of will real of enable rights. the corresponding are

to covering of continue River XX,XXX becomes over ranches, X of Class rights, of at valuable to fortunate and acre work all have Las improve the water Limoneira in of more feet are our strong asset. we which Each including the water Vegas water valuable and We are use Phoenix. front rights Colorado day, this to

with work us this asset, exactly which that tree sustainable with the communities water. where when to continue local all driving illustrated tree monitoring our make sure to the precious tree tells we needs are we Additionally, future to a system, with and as

maximize Our asset. micro is through systems rigorous and water sprinklers ensure quality a of supply and to we lab floatation testing, maintained this network

Our systems information are utilize probes control content system. and to digital connected sensors the measure volumetric data water irrigation in to water

main water to and system. tree Soil send then data stations moisture log it and the controlling

and that, call utilizing to stewards for we best for now have been be And the land XXX I’ll the to technology, will over able years, crops by Mark. generations. future our proud with grow turn We over of

Mark Palamountain

and good Harold, everyone. you, Thank afternoon,

$XX.XX were year price quarter the of similar to and revenue lemons fiscal $XX.X during carton to approximately third total was year partially in XXXX, X,XXX,XXX compared compared same the period XXXX. $XX.X the of sales, fiscal million of Agribusiness total in at quarter year. net includes XXXX. million logistical quarter third of year operations the million price year cartons relates $XX sold for at of year $XX.X $XX.XX fresh fiscal average fiscal third to compared Agribusiness revenue quarter net per affecting of was of million. year. lemons to to delays was revenue sold cartons revenue lemon quarter the XXXX last fresh at compared third fresh to third the decreased third $X.X million, Approximately industry. lemon fiscal harvesting per of previous fresh average $XX.X in million, during $XX.X of carton, million during The XXXX a the of volume quarter X,XXX,XXX our fiscal fiscal For the year Other the sales revenue prior a of

XXXX. and third were As year expected, fiscal lemon strong in pricing the utilization of fresh quarter

pound $X.X reduced of last the third costs of income pound fiscal of to delayed prior of million, with avocado per third The X.X compared Company throughout $X.X end quarter of fiscal pounds in compared into the revenue highly However, to same same period Adjusted many lemons, quarter net in the of the a million year to quarter fiscal The price year for X.X operating quarter. of $X.X income million the fiscal approximately revenue rainfall compared and $XX.X and common to for XXXX the year fiscal publicized the $X.XX $XX.X fiscal XXXX $X year fiscal the third Net third supply share the previous the lack of XXXX recognized primarily period Limoneira’s third expenses per irrigation the third sold year $X.XX fiscal agriculture fiscal chain, for which volume is actual at for $X.XX compared avocado XXX,XXX reduction year was stock supply for This offset quarter sold. at throughout year share net quarter in reconciliation increased avocado during $X.X per year year including were to the for fiscal of pieces. million, sold partially $X.X earnings income The and quarter West million XXXX. the year is average $X.X the Arizona XXXX, cartons fiscal or release. prior year preferred the congested This quarter were during net compared due share shipments $X.X XXXX. third sold. at the fiscal along million, in to prices, net quarter third the the period was applicable of have citrus price to was per constraints by the Adjusted the XXXX XXXX. year of fiscal year to which the fiscal diluted to in XXX,XXX strong lower oranges of a XXXX. $X.X growers. California year to after share adjusted year. XXXX for the due size the to a of year at to for EBITDA to stock, third on company of lack reduced fiscal million Approximately to resulted Chile third other in decreased to income increased during the stock A per in California at as the provided of Net pounds due income to Company’s third same third delayed to EBITDA million of a loss the fruit carton, of $XXX,XXX world of the temporarily as income the average the last XXXX water harvests period to in to million million the cartons common per sold compared at net third of Total year in million, the third Southern third of income rainfall assets in of $X.X to of fiscal to Argentina compared Coast, systems million quarter excludes in release. of in diluted of of quarter of Approximately of the by per fiscal not pounds $X.XX provided the quarter Adjusted temporary of quarter period fiscal fiscal income XXXX. was pounds compared quarter million compared diluted oranges quarter to is Despite the per adjusted ports fiscal compared Calavo. $X attributable products, of avocados $X.X avocados the the $X.X overall fourth dividends, our challenges year. XXXX. were of million quarter Company’s fiscal year average of same third compared well million applicable year XXXX. fiscal in The year lemons year has income XXXX, million, fiscal million for reduced third affected XXXX, XX% of approximately of year. recognized our of XXXX. the Company’s to reconciliation the the XXXX was diluted price net carton, at to in similar sold fiscal and $XX.XX earnings XXXX, crop $X orange the third same to Specialty revenue in loss XXXX of A adjusted in revenues lemon end or during net income quarter quarter compared $X.XX, $X.XX the of compared year fiscal average in sold in of price quarter resulted year

income of For orange Chile period by the XX, and loss the compared Trapani of $XXX.X nine to XXXX. $X.X and same of XX, Pablo in year stock July and months $XXX.X months fiscal compared the in the $X.X Company was compared ended net year. Net million to after to applicable million the the sales $X.X in to nine $XXX,XXX The $X.X months loss same for million first million of was year of a last in period preferred for million, Argentina XXXX, dividends common per months PDA nine in XXXX. year year. Net of months ended the XXXX share diluted July $X.XX, same revenue recognized net same $X.X diluted of for first period income nine period million share operating was fiscal fiscal lemon first year. in last of income compared XXXX, was fiscal this $X.XX San for Fresh year sales first last Operating by the to in nine a fiscal loss the lemon million an

net XXXX, million XX.X $X.XX loss same weighted share common outstanding. was year period of share Adjusted XX.X adjusted period fiscal For adjusted average diluted the million, and net compared $X $X.XX, compared million, to XXXX. adjusted months fiscal diluted year $X.X loss to per first per fiscal million shares in to on for approximately respectively, nine diluted the of in shares of net applicable year was stock for same net the income income XXXX, based common

year and XXXX, balance as XXXX. third liquidity. to XXXX. million, end In XX, additional refunds compared tax of $XXX.X the now refunds to the $X Long-term July fiscal California federal XXXX million of million the an fiscal of received quarter debt state our related of of at in $XXX.X and the year Company Act, was Cares sheet to $XXX,XXX Turning received December

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

Harold Edwards

COVID-related serve to this, you, a not Thank reduced lemons service provide fruit the countries our basis. it Because shipments, business many global is time. we because have temporarily guidance needs. pandemic believe specific at COVID-XX Asian of in continues food affect this prudent The Mark. foodservice of decrease And to of we on

fresh to we However, Spain lower from in Mexico industry-wide per we chain increased improvements projected utilization, and believe fiscal do and in we an achieve supply XXXX. imports will year XXXX, improved increase carton believe due in price fiscal year continued

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

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

We as XXXX XXXX will generate Limoneira of $XX to expectations the also Fiscal to have and to is expected year $X are This to six neutral; year $XX to do we of potential to fiscal will from Also, to steady These lots at upside generate from million; fruit. Area fiscal we expected our year is as of Harvest distributions generate of opportunity $XX XXXX be the confident to X numbers East expect increased million million; steady expected next continued not cash improvement a in to XXXX XXXX harvest estate include expected follows: is in million. medical years. in $XX to increase from fiscal million due harvest cash cash at expected Limoneira, real of are year in is as potential a the back campus entitled development $XX fiscal grower generate well we sell the million; year harvest, development. expected generate XXXX residential Limoneira; to is be is third-party generate

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

Operator

conducting Our Ben Bienvenu from session. first Thank of is will you. Stephens. question-and-answer a [Operator be Instructions] question At this time, we

Ben Bienvenu

might lemon ability the you long-term. then, that And color third-party the volumes guidance, have of am second guidance how talked I curious provide you question, have you should visibility of volumes about So, to in XQ to I if to level that grow -- on XQ. you’re been know much on the steadily what but not expect the providing any have over shift you

reference your you’re relative are or You Thanks. base? When base relative volumes, levels you well XXXX to as talking talking produced relative internally about that XXXX that third-party growing to XXXX the or to the volumes base.

Harold Edwards

do quarter, there. the We if between third somewhere there think I pushed and quarter fruits So, are to cartons the the XXX,XXX helpful. the from fourth that’s shipments XXX,XXX to believe

is simply ports normally with experiencing in that for would to we’re congestion the then So, one typically longer it be. it’s of than fruit just challenges unloaded to because the that and the that reworked water been on the that be has

that significantly, to water I just that the XXX,XXX sort challenge that up X we And XXX,XXX District But, fairly So, opportunity we’ve number. the X. land only offset the of be kind some of tree in of which anecdotally, is thing that should of followed, then, in think think because would would number. that is crop the District the

bearing, growth think, to the tree And this acreage and a recruit larger both if of period, we XX% split is District in becoming similar We out there. in crop. growers Valley, larger it’s expect because last similar to tree normal there. as our year utilization roughly grower also winter but the the fruit. the because think new crop of Joaquin X desert, But year, San expect our a I recruit of get in expect should up with growers we we the between rates is XX% we because a I new should which have crop, to we volumes more crop, winter believe competitiveness to non-bearing and So, fruit outside

in So, District Mark, between is... X outside and split -- the our

Mark Palamountain

for outside Right now, overall XX-XX we’re about XXXX. XX-XX it’s and

Harold Edwards

becoming And expect this which grow the competitiveness this is piece area. crop, And that last returns spring initial puzzle, And we we outside growers then, be because is bearing bigger And well. our too. that to that of Yes. have the here is as year, of this Ben, non-bearing of acreage summer that crop. are the will we -- last coastal estimates in

be XXXX, fruit. total directionally, we believe year domestically. fiscal if fresh this domestic total in So, cartons. to year come we XX% million should utilization X X.X pointed the million directionally, closer would -- trending fruit be And somewhere XX% And out, should we next as be our outside achieve cartons would and Mark can last rates grower around that

Ben Bienvenu

should rights network, as your water your second positioning talked you the around in about the time? have term costs if near that those access My for drought to of period risk your to persist about threat or -- you resources the How across of think productivity intermediate we to longer positioning strategic longer you conditions question, across a well and term.

Harold Edwards

assets of but XXX fallow Arizona, program, incent starting to the in a So, the to return different River and in in providing following our with the on land in followed we’ve land answer water Colorado producers places, different Yuma, that for on River. rates which anticipation will actually associated Colorado acres users other

And like that programs believe and plan disrupting of supply XXXX. for now looks announcement program all so, without we’ve an crop our because do that on overall right what we’re to been year chain larger We in that able Arizona. to and a next those at on for working have hope

answer related that asset. that is water is to asset, So, that your more of specifically first condition of what and of question the piece to rest and is actually the to -- And the that’s available that the asset is the puzzle. resource where

to here we’ve for water before and Ventura extended time long aquifers County, underground been us deep of drought, allows done have we’re in So, shape. access very period in that fortunate to good a very of this

rivers sizing being in reduced, relates avocados, So, the Ventura year, in of the dramatically San to some and of County assets. sort impacts riparian rain Valley for we the And flows access this But and likely. of challenge shape to is good the the here pretty generally, overall Joaquin in I we’re doesn’t streams experience then, it as real we survivability bigger exist, experienced it next of our which the to a where challenges health of most if instance, tree. year, We’ll wouldn’t anticipate think in on pumping, our groundwater At shape, see overdependence point, assets an of us water. where at we pay wasn’t sufficient. we additional have are we pumping into and pushes buy point, a would to Again, and you when situations. supply increasing this all access where costs requirement then increase. this groundwater of to But, to good access would water, we our based believe that’s believe to groundwater our which have pumping your neighbors money water sufficient see and of that’s costs our we but

Operator

is Our of Vincent from next question Anderson Stifel.

Vincent Anderson

respect is a Is idea completely are it? program. of involved X valid give I kind Like, must at rights details already you here. that but District maybe the of private So, you it water called an was on you don’t have partnership? it’s now, you direction I least us a hoping be you heading confident You leading acres? the fairly public in who could it

Harold Edwards

Yes.

in programs short-term, would of private fallow to that actually blocks. to with providing the So, an benefit will user, transitioning situation, were we give in getting anyways potential land directionally, not process slowing to would would this what replant being And be broader fallowing were for fallowed public and we’re land. eliminate to come would down the River. pretty could can that you of it on commit now. the works acres But, program. along But expenses large about a The two, more the little return economics, Bureau and in where blocks be just it’s how it’s just potential -- access basically approximately the where ready to contemplated level. programs, it’s looking the at that $X,XXX to going public of pumping And and There we older it. fallowed the that partnership, put water in younger programs Reclamation another because a early the is always water water follow that a us talk Colorado it those three-year that we because a create point, something water that to acre a into right of profitably, private your and like too

So, to as to over-allocation become period is of biggest sort of going. of basically pervasive develop dealt continues Colorado the scarcity with program as And the water get that the way the longer over and to users. the program idea bigger in more time, a a river then, is more by

Mark Palamountain

in got that Vince, XXXX, we place, half where of about a think And was there I about similar was that. program

ended it $XXX acre. could amount about put a an And So, being up of in you certain acreage.

setting still it’s can that all alluded to you if fallowed. put fallow to, as of really, be to planning But that to Harold So, in you’re unclear expect or acres the up ability it’s the be able River value to or right, then wet to which move water back sell the water future large take. set those and actual up water we the the is Colorado whether transactions, bigger

Vincent Anderson

Okay.

we’ll So, a see goes. now bit it and opportunistic for more where

Mark Palamountain

Correct.

Harold Edwards

Yuma, of the then should front as XXX lemons our should and swing assets. reduction for Arizona it think the combination of acres, larger us the with actually too the related program chain that our to getting profit intact, far significant keep of without supply of ourselves fallowing in which We a fallowing be expense, crop,

that benefit XXXX. big us in be to a should So,

Mark Palamountain

so which completion And the once harvest be remainder be the the we of would just this will clear, end to season’s of calendar fallowing of be year. the crop, the

Vincent Anderson

logistics about seeing Perfect. of brought ending And all but over, and switching we’re you. a still we’ve in lot you up year, think, constraints, just issues up a heck been of have then, Argentina of the Okay. lemons right. export that a yields. I Argentinean with timing lot All reading that the so, U.S. Thank We’ve in

give leaving out to Argentina market? any Is just And can But some what’s us of that on you of flat on? an opportunities you touched for elsewhere backfill you with the So, your lemons? just idea going U.S. this. prioritizing is

Harold Edwards

we’re XX% province continue yields we to are been basically are have ranch lemon up. it’s and delayed. lemons One, considerably, is on They two ranch out that our part north most a owner up same there of been fruit going Argentina. Limoneira So, delayed. country of and pure And of the growers furthest productive And the delayed. coming, a Argentina, brokerage but our a in in source on is harvest business things brokerage actually But, the for in volumes our those outside from our have the time, level. of although at of

nets us, it end in a should reasons, performance brokerage that of our for as up in moved of relates yield year our for being of how being be performance the the So, lemons track down to the pretty because ranch but on at much but we’ve the programs. Argentine the the brokerage lot out of

be So of beginning of our them at much Argentina laid as the we should net-net, out the year. pretty our on the financials plans on

Vincent Anderson

excellent. really to be be quick, expect Okay, to year. mentioned Mexico then, price guess, next supportive And enough I into of you just down

anything specifics size-wise? specific they anyways. on seeing maybe smaller But in I you’re any come the end to you think Just normally there, want share?

Harold Edwards

quality. smaller product. will of then, market lower and lower shippers have in so, a a much movement production, It’s come fruit typically quality size the cost the typically of And just to under get just

smaller going it’s but on, a overall Mexican crop. that’s So,

are being to southern the now and creating is needs be the delayed, been should helpful. quality and old, the then and And hemisphere, choppiness have then things Argentine keep markets these that that right very and reworked. deteriorated. all delayed fruit the The shipments that So, and coming Chilean in that it’s so sloppiness be in

be fruit the the is that basically is improve. to and fruit, in not bad. on that range $XX which we’ll now pressure with So, competing downward we to considered pricing. the in, expect all pricing the it’s desert once markets, done, is, on in begin really the We’ve as things to Mexican putting fruit importers the that against right participating now, is the But, pricing $XX situation which terminal are seen local dealing

Mark Palamountain

four the And six to in up that Coast. should finish on weeks East

Harold Edwards

Yes.

Operator

Our Klieve Lake next from your Street is question Please Ben of question. Capital Markets. state

Ben Klieve

the testing. Thanks for in beta has has asked how much on maybe that -- question bit of Can about improved But, from this have been taking remarks. perspective. as yield any in of about had expecting? a questions. appreciated talk prepared expecting, on your of Really what you’re initiative detail here. that that already implications water Talk kind my Most digital the about program I be you’re you water would -- outlined this efficiency that you a I performed

Harold Edwards

blocks. exciting in No. be of down Happy into single every our of tends we one call can a similar. it’s to pretty program. Yes, what the Ben. And productiveness But pretty broken be the the to block trees characteristics ranches actually of each

-- But, data us the when and And that we and from of level in the the so, to into combination optimal time the decide the tensiometers then, to water. And we world, on moisture we’ve the detecting the trees data company. of irrigate of with allows those gives sensors we irrigate in measuring what moisture the from it in our And level tree block which water every for irrigation information soil moisture implemented availability be then one actually trees. around in access need that And our levels moisture we’ve traditionally conservationists And the pull branches call we’ve trees. are not. soil is is that in the sensors us the much versus how based also the on soil. with and the the allows us the using better level done the industry, done to versus direct what it’s to combine actually that around actually within -- are is every

we is that fruit get and us XX, technology our that supply how chain a that quality buyers us harvested, at allows be to it’s go a so the XX-pound size, coming is at it the the then also implementing, in ready color. to we’re the or customer directly fruit when with will we our of measuring we’re And and for retail and And And condition the fruit XXX-day through foodservice supply our block that’s create there’s other on technology. efficient fresh, if ranches the fruit specific we take efficiently. predictive fresh that fast fruit’s fundamental, set it send then, and tracking, grade selling utilization and and way then itself the growing. our tell to based already that to ready we’re $XX, we ability, that actually remember, of that there of to of it is to up sounds we the carton a optimally in buyers, so, in a that’s the to should will it able XX, that sell the the harvest, And time giving fresh that programs about important XX, average our fresh that. farm the information information have very an fruit fruit without piece fruit allows how us that harvest, wasn’t a it. on information keep that profitability And the versus juice which go will front it from algorithms really dictated because And that these of data couldn’t basis that sales and $XX in the manifest again, every than it, be team higher of in much plant, actually very business fresh, using get that’s is that if we’re a can’t and more change our $X of standpoint ranges, sell carton but use farming that levels the sell to when can actually

the So, you fresh for to successful us our utilization. see economically be incentive with massive

Ben Klieve

yes, in it. color That’s to Got the I there. interesting quarters. an more coming here hearing helpful initiative. Look and forward about that all appreciate

I’ll me. in does get for back I it think that queue.

Harold Edwards

you. Thank

Operator

Partners. next [Operator Please of Gerry state Instructions] Roth is your Capital Our Sweeney question from question.

Gerry Sweeney

you potentially some different utilization times, obviously versus, year in I utilization, and to much is more least of question foodservice on and was that on you into XX%, off outlets? chain. last then expanded than A know last market-driven increase to How XX% quick give distribution the higher of or think year. also additional your I pushed you Have channels at grocery much

Mark Palamountain

that supply think, the year, lower this a I in crop better parts most overall with of areas. saw two there’s question. of balance we One, the to So,

to call into which -- demand. We business, players. Costco to more grades what us retail availability in burgeoning the with go bags, the set up also fruit of and into less we’ll that So, allowed initiatives across in which some more to have bigger flexibility profitable created chase bagging put

most And was supply over we is it that have general, -- fresh a sizes you when to our sizes, April, then opportunity grades you now, before, supply, but the that think due had seeing just we supply to many the where and balance. year’s the that COVID, June sold we in had that really component. balance in of it’s as when we’re see just for cut smaller the prior really, was effect to issues, and the out months, we back orders. had were the And, versus it to year people can good So, of May, the balance one size, utilization. we’re I in And XX% and

Harold Edwards

sell fruit that’s growing just And comments business that a million Gerry, rapidly. year. Chick-fil-A, as the about a was of customers But, kind great And customer rather able lemonade very customer, that interesting a product, of the that’s one we’re juice for every hours in lot our our have lower highest stores. almost Raising to of standard very use that competitor one like we plant fresh than to this at their cartons of biggest is Chick-fil-A. is to to which piece fresh restaurant to of levels, the they X a our where sell Raising grade, but that’s two one a a customer is content called QSR quality, make of having one chain chain, valuable chain Their every it because of this of low Cane’s, is And us send economic standard Cane’s.

huge utilization they standard having our part of And our typically export. forward right of that’s is highest buyers fresh balance for growing and ends them. kind the retail with that our end grow also As success expanding grades, look grades, of but go expand, the for we right and and to fancy which been top a to

Gerry Sweeney

simple be not more quite honest And you. really then, you. with curious. Avocado irrigated? question, Got just is is This one to curiosity,

Harold Edwards

tree to over with and that fruit a health irrigated, producing. No, the and But that They’re they’re is way goes growth a tree and irrigated. keeping to and alive the natural above healthy there the the happens rainfall long the tree. that and something accelerates growing of just fruit, of

really actually And last fruit. sort years the where recorded size. just rainfall total we Even normal little, avocado the the the not this good lowest had of we one year. did crop, year, for so, though fruit the XXXX and we levels last very, This actually of got we year, growth way good rain had in was rainfall, size of below and suffered of very the that’s and so of fell

Gerry Sweeney

you. Got

for me. appreciate it That’s I Okay. it.

Harold Edwards

Gerry. Thanks,

Operator

There are time. no more this questions at

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

Harold Edwards

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

Operator

This concludes today’s conference.

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

Limoneira (LMNR) 8 Sep 212021 Q3 Earnings call transcript