LMNR - Earnings call transcript Q4 2021

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Operator

Greetings, and welcome to the Limoneira Fourth Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation.

As a reminder, this conference is being recorded It is now my pleasure to introduce your host, John Mills with ICR. Thank you.

begin. may You

John Mills

Good us you. Conference and you thank Great. Limoneira's afternoon, Fourth joining for XXXX Quarter for Thank everyone, Fiscal Call. Year

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

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

Important within response law, we other or mentioned and events by or risks achievements the we'd call, Please are statements. release. such XX-Ks undertake number in contain include statements to of with adjusted or and differ management Company's facilitate the an results as non-GAAP we believe Limoneira's additional We contribute posted Company's financial and to Also, comparable required otherwise. the Company's and as control non-GAAP ongoing uncertainties, is adjusted Company's that include result operations, measures earnings today's risk forward-looking of such understanding and analysis known a items to could is in measures, a the Before details outside could everyone we And update new or by that any can differences to the future be information, and with as SEC or and financial that in results Such discussed in the comparing the measure. are that, and press make filed on call period. performance been over of an which the remarks, like directly herein, to expressed in XX-Qs factors my no the a many the particularly underlying to Mr. statements prepared which those and future We President involve release any to from your forward-looking turn period adjusted cause much on have GAAP forward-looking obligation greater of whether as pleasure release, to we to of today's complete note discussing that during Except A which questions. when performance results and a will statements, adjusted unknown financial prepared provided Harold including adjusted results, remarks may is website. achievements included reconciliation detail to basis. begin, from more significantly basis. or statements on its Edwards. possible earnings it Company's XX-K these EBITDA, CEO, implied remind forward-looking cause of measures EBITDA most financial results, the

Mark Palamountain

and everyone. on I'm of of John, to its due manage afternoon, through successfully challenging our and logistics COVID-XX year good than lemon us business improve team and revenue fiscal fresh strong to XXXX, to XXXX, in fruit fiscal year-over-year. achieved we utilization challenges, enabling year doubled fiscal our the Even revenue. was Thanks, to way these more brokered EBITDA effects channels able XXXX compared and a and year very in with proud

upcoming with as in additional the returns outside year. outside this year grower past recruiting grower help well, competitive Our should which third-party extremely were us

third-party attract believe but to our trajectory, in aren't pre-COVID business our momentum growers. and expanding will and getting more brokerage growth we We closer back business are the

pricing expect we publicized and brokered this to the XXXX. back by and logistical even than the improved global results half the lemon achieved which continue last slower affect results year. compared solid delays During trend year throughout last to higher agricultural line doubled our as fiscal year We entire fiscal widely fourth fruit prices period top year to strong and exports of very reduce Asia. to continue of more seasonally our the These were XXXX, revenue increased fiscal XXXX, industry XX% Lemon quarter same to compared driven in year. revenue,

due delays fourth in to XXXX, of the year and the insurance we of quarter Specifically, fiscal to occurring calendar expect XXXX. shipping spoilage in quarter receive compensation the first

perform discuss revenue we are and the development excited each real are We in starting agribusiness. Limoneira, estate our project fiscal continues earnings and growth fourth quarter, divisions' Harvest about will our business on year this I provide of how a for moments. performances an I'll and to positioned XXXX, now at very for well, project, update in few with

the to due $XX of of and portion ports of industry. a throughout to on year-over-year, quarter fourth world fourth lemon harvest revenue of For year fiscal price to increased compared fiscal carton shipping shipments, $XX.X XXXX affecting a in net million volume also sales the year period revenue agribusiness the of year. same total million $X.XX revenue sales total carton fourth net XXXX. in compared during fiscal year timing fiscal the of continuation million $XX.X placed quarter loss compared fresh revenue for XXXX, to to fresh to million per per fiscal Agribusiness of the year but sales decreased delays channels. last caused be of revenue $XX.X $X.X reduced per $XX.X The had XXXX. Average balance lemon fourth was includes quarter and the different to and by delays to was $XX.X of the quarter million million, caused our our lemons was fresh the lemon primarily related logistical congested during carton of of The compared in and

receive of Citrus expect growth opportunities. calendar our improving fruit year One strides to quarter World great compensation XXXX in the quarter Throughout made and insurance of fourth to fourth we XXXX, in the related our We initiative fiscal spoilage. expanding long-term

in generated We to which in million our XXXX strengthening $XX.X domestic many fourth to relationships made the seasonally our revenue brokered as an business, the Approximately last brokered year. average per strategic to the period transaction. began average $XX.XX customers. expand where We as million carton for compared continue is of year we fruit a same dramatically price retail Brokered the during $X.X fourth resale as decision cartons offset fruit to compared fiscal quarter fruit COVID-XX. our quarter global of expanding foodservice packed year brokered the providing sold principal well XXX,XXX the fiscal revenue slower supplemental XXX,XXX during restaurants at of fourth carton fruit of an year to We for comprised volumes are of focus of sold fruit XXXX. after again of on quarter quarter, in our at approximately cartons per primarily price $XX.XX in opportunities fourth sales open the were XXXX fruit fiscal average

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

We of have sale the in this and focused sold completely project on now are XXX Phase X Phase now X. lots for

Limoneira to million from the begin five to over Harvest at cash generate and of receiving expect We fully next cash distributions this years. $XX distributions year expect

much-needed for approximately we purpose an an of and in five-stage lots into This increased year. of consisting office the to agreement of the provide isn't purchase the positive In XXXX, East and medical upside to is potential of this of sell expected Area purchases existing later Harvest as letter increased Completion to as proceeds, pressure years the X the for execution is medical In not million believe been the cash Limoneira, opportunity entitled our season replenish buildings basins, recently in our past nonbinding our Many have on challenging amounts statewide of update the transaction industry. cash campus about lots intent will we contingencies. care and remaining of in of certain a drought. in you sellable of has due there our project and company health our recently investment July rainfall values at by The in and fruit the entered impacts to a to projected cash number X Arizona, throughout of reducing Area vitality few helps and which groundwater California a XX East addition, well also we announced campus have constructing hospital. but sellable of rainfall The medical resolution transaction acute is to $XX distributions acres recent stated sizing. of read dramatically of subject development. property the an on tree early distributions potential and included felt sale only of

predicting fruit, global and harvest teams, This fresh fruit information distribution digital and operations via This this of time sizes grades system and time improvements to efficiency taken efficiency sales become Farm needs within supply and as such customers call period by increasing packing creates teams our chain harvests, a our have can and Tablet closer improves to and across fruit matching implementing daily real-time health monitoring We right with growth greater harvest improve tree demand. yields through identifying quality to and technical our we initiative. labor and is Table utilization. enhancing to

positioned water of for mantra through Mark. that, call of land all XX,XXX Chile We With also demand employing years long-term continue citrus. assets human aspects Arizona, our Citrus Argentina, to of with meeting over And both California, operation. resources, upon now well natural our for growth customers' of of we are our acres World of stewardship in sustainable build our turn XXX year-round the global throughout agricultural practices and by and to One and I'll over rich

Mark Palamountain

everyone. Thank and afternoon, you, Harold, good

it Historically, As and on due an seasonally first of business second are a not business, view the stronger. annual, the nature quarters quarterly softer seasonal best quarters, is our while basis. our and quarters to are to third fourth reminder, our our

sold a of in to million includes XXX% the fruit fiscal fiscal the fiscal net driven of Agribusiness year increase XXXX, was to total fourth revenue quarter was of year-over-year million per XXXX. lemons the million Other revenue cartons the average year carton fourth sold year in to in at the compared the during $XX.X fiscal revenue prior at $XX $XX.X of in fresh a The were sales fiscal quarter originally period $XX.X to the in the fresh $X.X of of fiscal of the million XXXX relates lemon and in fiscal total operations shipments primarily quarter quarter fourth $XX.X brokered XXXX. sales XXX,XXX during year lemons volume carton our cartons XXXX during a fourth products, compared partially fiscal third fiscal year. fourth of relatively revenue at The of the For quarter million XXX,XXX price million fourth fourth fourth per of was industry. year price $X.X XXXX. by into affecting $XX.X expected from revenue million year net We year $XX.X compared year the last approximately Approximately the compared Agribusiness in the fresh fourth of to quarter quarter delays year for was same increase to of of including flat quarter previous revenue to quarter lemons XXXX. delayed quarter year. average XXXX. agricultural harvesting decreased logistical move many

fruit approximately of delays a the However, that more quantify, these XX,XXX ships To had world XX than balance the Chile XX delay shipments XX a of on and spoil reworked. the of carrying had and to of from shipping be congested went cartons portion throughout continuation days. and to Argentina we days the ports to from water caused

during price of fourth of year XXX,XXX the cartons of last sold to of Company XXXX quarter fourth compared $X.X fourth The per of average the fiscal quarter cartons recognized XXXX XXX,XXX year. fiscal million expect fiscal during sold year receive carton to the XXXX an of fiscal fruit. calendar XXXX $XX.XX were the million compared year $XX.XX fourth carton We at to brokered period of the same insurance first the in fruit in Approximately quarter brokered XXXX. an price sales average for approximately in quarter per $XX.X compensation spoiled at quarter fruit

million to year the the increase West of fruit of lack the and is of mentioned, avocado to reduced overall and majority XXXX harvested XXXX year revenue per same fiscal soft price pound year the period the fourth of on seasonality, Company year due fourth pounds was million fourth California and $X.X the the average fourth during XXXX fiscal size of a year. after $XXX,XXX broker to XXXX. the of we'll per have per share for X,XXX nominal third-party $X.X year delivered fiscal shipping due of fiscal to to price loss $X.XX to fiscal a to in the The pricing Net fiscal $X.XX $X.X fiscal in a due As compared to of decreased of recognized quarter of and in The third Coast, prior million the year during The to other for were primarily the volume related fiscal reduction quarter rainfall in revenues of of oranges million publicized in to quarter the at fiscal fourth fiscal wine grapes $XX highly year fiscal of of XXXX. of were sold we offset million throughout approximately caused period higher Approximately compared Harold expenses pound compared quarter common the diluted quarter quarter compared year. be the fiscal the sold $X.XX relating focused XXXX, quarter of average XXXX avocado in to fruit citrus fruit lower fruit fruit loss XXX,XXX fourth $X.X XXXX. compared sold same fourth for Company issues. $X.XX fourth recognized XXXX share the XXXX. in the last to of The XXXX. loss fourth avocados to was pounds sales loss nominal to $X of to quarter continue spoilage at XXXX applicable in was for fourth the which in to of $XXX,XXX price fiscal per preferred fourth packing year year. Specialty the year pieces year the for more stock the $X.XX quarter quarter $X avocado of actual million fourth to in last to compared was a year of of a period crop to Operating Total and the quarter per to quarter quarter expand quarter the in same per pound fiscal compared was in fourth XXXX compared fiscal average costs $XXX,XXX year previous XXXX. due the Approximately the fiscal in in Net the fourth loss fiscal of houses. year year share quarter fiscal of dividends in adjustments revenue of net to of The XXXX. the loss year the increased XXXX to million primarily quarter marketplace. net of business $XX.X fiscal compared supply increase the orange or of million the to year XXXX diluted revenue loss that attributable fourth year in

net of stock fiscal $X.X end for loss compared share per We excludes was fourth stock the $X.X spoilage. of loss Adjusted million year expect quarter insurance loss diluted of of XXXX loss was adjusted related net XXXX quarter a for million to compared first net in on to same applicable the our of Calavo. in reconciliation this period was receive million million release. to also year fiscal adjusted our $X.X XXXX, the which per fiscal loss net $X.XX EBITDA Adjusted the to year A a net the share to is loss diluted Adjusted to at of $X.XX year the loss The reimbursement release. the common net fourth loss the provided XXXX. to fiscal of a A fiscal at in earnings quarter compared of fourth to period end is provided of of loss reconciliation of $X.X EBITDA quarter the XXXX same in year of loss of adjusted earnings XXXX. of

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

lower provision assets of allowances assets U.S. $XX.X primarily on year in recorded X.X% XXXX tax prior is subsidiaries. compared of rate different items on and allowances The year jurisdictions, due respectively. an XX.X% the fiscal year stock $XXX,XXX Argentina. due $XX.X average statutory tax rate are to The foreign tax at XX% loss certain effective share fiscal pretax of was $X.XX million and was and for a $X.X compared per million million, shares of to year common of diluted the respectively, For loss compared and on per to the tax effective for diluted the and valuation net an common net Chile of foreign XXXX loss adjusted mainly on to fiscal differs which rate net years deferred net fiscal applicable taxed of in million income fiscal XXXX. fiscal rates, the to for tax and taxes, benefit non-deductible fiscal for to deferred state a recorded from $XX.X was $XX in million, $X.X share XXXX rate the adjusted $X.X XXXX Adjusted approximately year. year tax diluted and tax We loss The $X.XX based tax XXXX, XXXX weighted outstanding. federal valuation loss million million

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

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

Harold Edwards

Mark. you, Thank

the logistics to As global a our pandemic we in business. believe fiscal businesses we Even stronger all in brokerage compared due industry to XXXX year continues basis. with foodservice on know, we affect all results growing XXXX experience and continued improving grocery fiscal pandemic, will COVID-XX to this position and

year food As to in increase export prices fiscal markets expect to recover, year also compared fiscal lemon we and XXXX. service XXXX

be volumes to expect and sales X.X fiscal be to cartons volumes cartons for XXXX. year million range X Specifically, range expected are the to to pounds total million of of fiscal X avocado pounds we million in X year million lemon for the XXXX, in

We volume another producer's also year expect XXXX of World Citrus through to expand fiscal by program. One orange marketing our in oranges

have for growing attract needs provide a to our We oranges, by of customers. enjoy list customers even to one our And all will of that single be supplier. more citrus their able ability increasing we

expect opportunity is sellable of East in from generate values generate do of Harvest Area will to addition, Fiscal year expected from $XX is $X XXXX generate medical XXXX be to million. next as to campus potential Limoneira XXXX. Harvest may follows: the expectations remaining during $XX generate five lots to to year increased receive generate million. increased we upside to we of expected Harvest X fiscal $XX lots a $XX at breakdown number the In entitled million be include believe from to expected is million well sell of potential expected to beginning million is and Limoneira. million. years XXXX year These residential is year XXXX fiscal fiscal Fiscal We at the as Fiscal in expected our as XXXX the development. fiscal $XX cash not

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

growth, nonbearing many an expected organic over our for to of us four become to acres enable to years, strong growth we X,XXX will bearing lemons support estimated which come. the achieve years next to have Lastly, continued full additional

fiscal of in expect to the XXX X,XXX become We year acres XXXX. full bearing

questions. domestic open level and non-bearing by that, Beyond acres, lemons or productive. supply X.X this these Operator? And like call to to cartons will our XXXX we your to XXX,XXX million XX% the from I'd Limoneira-owned X,XXX up the anticipate about becomes additional by as our additional planned fresh increase acreage approximately acreage of with

Operator

Ben Please question. Instructions] Our with is Stephens. first with Bienvenu [Operator your question from proceed

Ben Bienvenu

want asking I So start business. the to brokerage about

factors rolls So opportunity about growth around that about to terms growing like sounds the thinking to business, are growth interesting we business of interesting how bearing get be on. our that? should that as augment growth scalability opportunity? see existing to what expectations And of the an What it acreage you the for have the you cutting in can big guys constraining Can talk the in you that that guys?

Harold Edwards

Happy to.

by that representing own have our creating model, been become was with have global supply now foodservice. the that that where both at that the retail a our bit presented and year-round real have customers little growers' opportunity we business So assets fruit. are us supply created we of packing production, comfortable chain with we've have capability And we outside

us sales now And begin to so commission-based typically, shippers was allowed opportunity that And once and capability these built, are the it represent citrus. opportunities. their third-party to

Our commission from to rates from range XX%. X% anywhere

X%. And high-quality network, I scalable of the this and is our average think feel our areas a for rate very right finding of think World attracting around matter commission is terms Citrus One production very, right a into just of the us scalability, it's the third-party world. we we in shippers opportunity now,

give the growing to our probably to terms keep sourcing we us to need realistically crops But Mexico, chain supply that the it, that at, that of volume at in see Peru. scale in nature fruit opportunities different opportunities grow year, Chile, of anticipate point, augment tree when up at with or to And the of we that total opportunities and can mother supplement times that Africa we're Spain. our expect, call in business can of South great we So we part And with that great out additional Argentina in doesn't XX% speed. eventually brokerage this annually. in out and and of

get it anything shippers our than time meet to the than packing, doesn't deals their and to vertically and selling cost integrated quality. lower Now the vet these business. business granted, But it's production, other margin us marketing

and opportunity allow earlier supply plug by Mark our us as scalable So it's consistently very year quarters, fruit first in to of our think our a we comments, will holes goal an where that and in our one our quarter selling his throughout will soft us the the chains in for seasonally really was in these second quarter, keep season sourcing agency or be amount off the brokerage and growing we're to equal deals. saying

Mark Palamountain

no just the obviously, it's really might add I involved that there's to, one, Harold capital opportunity, alluded what and that just human capital.

So XX% the think these call additional X% minimal. cost bagging deals these, allows other in DCs and also is begin whatnot. to get to them, it provide through these to And value-add could whether very average countries, about it's we across-the-board logistics, our us to to growers services

it us. for really up whole tranche opens a new So

Ben Bienvenu

I logistics to we delays the you great. proceeds at any Super talk can insurance getting interesting. like sense about you in Okay. terms are year? have do about back quarter next and talk look Can -- the of then you you of if think want the ask That's what ports. to in spoilage yet, might And normal? today about first where you the the

Harold Edwards

Happy to, Ben.

expectations dig I'll insurance. talk we today Mark So are -- from can the into then and where about

importing So our the is terms southern our where now. right the of good us fruit -- in not we're for we the news from fruit in seasonality of hemisphere any are

of San Valley California. the out our of Joaquin and of production desert in then All coming today is out the

supply is shipments so on being any everything or we're negative because impacts sourced our our experiencing chains And not domestically.

seeing relates it partners, exports, our impacts As from from and the the still suffering our soft to demand the still we're Asian of are markets Asian pandemic.

because are in still be area Los Bad softer severely issues pandemic markets markets. you down are into become and demand harbor, news the the being the up that out the we The business that from not expect down suffering can and good drive by we lot our that But ships that resolved. So and good there's open supply that those that We news. in news, you well will do is the delays. in there. healthy the is of look of time markets being road and logistical to a is impacted news still bad Angeles as COVID those floating chain out foodservice tell

So things our go improvements summer challenges. back the mid- we dependent And not come better. reading to chains a supply Ben, being we But real getting will their are of through for and to us, late we issue they're model know when about The to be West on congestion. in cautious West trucking markets hemisphere more and side fruit fruit. southern East and we'll deliveries about avoid that it probably bring the using err to very on bringing Coast Coast bringing into the the ports of the to

Mark Palamountain

we to the fall looking the My just cartons. Yes. think that's now, mean $XXX,XXX. is the And legal thought when to involved XX,XXX we is, from One, at talking little it. had all in way related on sort insurance the you're But a a $X.X carriers reimbursement million from about then specific all just hopefully Ben, the complicated. contracts. had And it specifically some I leverage there. of and the side, costs down about so up gut put at minimum right attorneys contracts, it's again, there's But multiple and trying middle. figure not to somewhere some all the about But potential. level done we're opinions within attorneys in of transportation we will our

that that we'll we three the months. in next and So work should see

Ben Bienvenu

Yes.

of your And that Harold, to what from rain. a sense way what for the mean do much might Great. yet business? question normal? rain we me that get normal, you need we're Okay. a Last to to So your mean know, trees? start for the Can long us I how more tell about talked could give you impact to of is, back

Harold Edwards

Yes.

So a positive very, very it thing. actually is

start Just with the side. maybe to negative

to into did so, and able So that is weeks. get pick it meant weren't December, what for it, two days XX call we it in

so done is what that's our expected And that's by weeks. pushing two results out

stronger So second a to to that mean first perspective, it's quarter we we're we softer be -- quarter but thought. think going pragmatic a than a I from have going thought, than

can about. groundwater to to just relates the in aqueducts I around, it of you're ongoing situation move of replenishing think long and forecasts seeing. the the California, much probably way to that to you that's went basins and So as we this those early empty drought some think that something then overall ought extent having this a rain And

maybe us what relates San going getting the giving dire the snow through of summer. go were water long as that's back not call rights a we would aspect from throughout are situation. provides most rivers the to snow way access and flow early large California. to in -- mountains. takes isn't all much the we're it that agricultural that we water is received Valley spring But And Now, the that and really streams melts us to very the facilities ago, Nevada is the the that a that months that as our rights, that canals and filling of And we which up of attention about as the place additional to the storage in state exist rains late repairing amount the of six healthy but that Joaquin the godsend to what has is of for taken in a other Sierra

wonderful a we're So that the been them the season. hopeful through and rains. it's is for bottom storms line of series with We're not

start, expect where agricultural and happy. pretty a months think to California, just it's entire certainly, But great can we're community making we off still I in we rain. have the more several

Mark Palamountain

to And Ben, just put...

Ben Bienvenu

Mark. ahead, Go Yes.

Mark Palamountain

a we the about typically, get this from delays year, week. XXX,XXX to if in perspective, time harvest we're XXX,XXX the Just field, cartons can't harvesting of

cartons weeks So into do or just probably XX moved. about -- but from And QX the me. not XXX,XXX XX QX, pushes excuse days, lost, it on math

Ben Bienvenu

year. with helpful. Very And Okay. next this fiscal good luck

Operator

Our Capital next your proceed Roth question. is Gerry with Sweeney question Please from Partners. with

Gerard Sweeney

carry and side. Logistics we mind. the the maybe much same little that year the detail opportunity at the it, an food is same bit were impacted of of the been focus of It's brokerage on my bit top area grocery the a term? an economics? did And But does to for talk there I a want more how -- side. COVID more since little type on covered and -- service give obviously But margins cover has past longer of as opportunity

Harold Edwards

for as through growing in So, margins and the of One, channel to channel share. same gaining the economics exciting there's two part market that exciting it. and exactly that just service us, we're food parts

inventory. for have And benefits buildup bagging. exciting, we are with the that a to believe of the is really bag it's to size grades the format, guess and grades more us focus other additional benefit why it that that high a areas us exciting and lot more final and gives we're opportunity is value-added margin the and But be the has important sustainable. we're very us our very that value-added grades benefit open with. part exciting the so percentage and size And more to of it customers where gives to is customers of in that, business of the serve to of super flexibility able able the that's retail through we And on to us drive that pretty able sizes and really is which I where

value-added very our and ability to achievable. helps of our also through terms us more think P&L capture really in benefit service total business. bit I but exciting volume And value with food XX% super a retail it's We our continue as there. think with more it grow bagging implications thinking of utilization the to our XX% and added as growth, part strong we're we a very And lemons that is service grow. little fresh, for So our for generate more selling able to we has

Gerard Sweeney

else but think Got about, my something in slipped see had I I it else it. has what want then I actually ask let And mind. to -- you're me

I side, it fruit differential Coast. you're the logistics the some you brought East cost a On impact then there know targeting How if much East Coast of it shipped that and through trucking? bringing from via maybe have would the to

Harold Edwards

you that adds that do -- for figure carton? have a use would per it another So Mark, you

Mark Palamountain

incredible about port still difficult what we It's are seasonality on trucking we are, rates, $X which somewhat then saw $X to the and the typically. where situation. depending obviously, But mired

with probably any as trying additional, $X the we're use is $X you moment. So good for out or if figure best it's that. what to the as a But

Harold Edwards

customer facing the usually to sort want get And he we passed being not the to Gerry, of a or cost a that. a increase of if through opts that customer for and gets that But able is lot delivery, that not do to increase. cost

Gerard Sweeney

it not then the Got ups off October, today? it. mind. was be of you. looking early of December downs And gotten time kind We're want going in did November, it. let's with weeks the Omicron foodservice of ask took dollar ago One a frame? little But quite to bit. I apologize about looking is couple question I it worry a you how and actually interest to through honest and Have sort to -- my slip how for

Harold Edwards

there restaurants response eat and reopening a go congregate out restaurants able to again. Yes, in was being to and euphoric to people

are that's saw actually by falling a But little strong and eating up out. in very spike we open, So large, bit. demand a restaurants we're off people are

difficulty, demand those service why of was the The so we can so primary really but premium to our And is a is, at markets. robust again. matters up $X area fruit, to export in that's capture food fancy primarily that still And us on sales. mentioning as I is earlier,

we're So by this year higher fortunate, But of those Mother gave slip big last. hoped. we're demand not the point that, a percentage least having we'd we're markets because export fruit a that's overall that into soft. not versus because all in as this at pricing Asian Nature as And to -- aggregate just seeing able us fancy not very at lift the remains premium

Operator

Ben Street Markets. is Klieve Lake proceed Our Capital question. next Please question with with your from

Ben Klieve

you talked the what First, Mark, numbers a I of if on brokered was those business. reflected business quarter X-K on and a year-over-year fourth about in that see year follow-up the full the question well. improvement, know said you basis. some the don't fruit I as

'XX apologize, If over us fiscal but 'XX? could you give growth for and you that fiscal I information did,

Mark Palamountain

$XX conservatively, now, XX% But think year-over-year. we've a I mention And right But didn't over our seven were the the intentions from to XX it's we're to that. cartons growth We the about there. Yes. Harold next business as of is about million business, investor past million million years targeting ultimate XXX% five talked up alluded in to, as over is, XX our take citrus, in which today. to decks significantly

implications So has to a of early, brokerage side. that the lot

So it's to going continue to we'll be a focus and for those us asset-light have and that do services. in value-added this sort of world,

Harold Edwards

Ben, think for And million profit $X.X us. generated operating of I it

Ben Klieve

Perfect.

or full that million sorry, quarter $X.X the in And year? is that was Harold, fourth

Mark Palamountain

year. was that full No, the

Mark Palamountain

year. Full

Ben Klieve

Very Perfect. Okay. interesting.

information to here on in that quarters to come. more forward Looking

Harold, the question, Another rain. you touched on

rain you was said basically kind You production. of was that ago, that you there kind in year there enough that time, you more not A Or guys this harvest. or the Was that material -- do impact commented years of for and period size not for that? was when is of XX a longer skewed dramatically any of sizing enough couldn't days in that for for domestic to there there enough grade? all kind really long him that rain few

Harold Edwards

it. weave going it appreciate I to a there question. comment to was great I because a try in that's about No,

from and events So eight that rain rain series weeks. harvesting kept for us of

So was two this weeks.

fruit of sizing. the see movement And as the today. on buildup exists don't so good We it anticipate we

supply it our think or will on don't I disruptive chain. any have negative impact So

And growth avocados from compensated was, for Natural a we're this paid huge a and sell one I our perfect customers with to think rain. to it by at the And and mention receive perfect by this results we pounds. the the point. our maybe thing by rain the the piece, production benefit should large, is or accelerates of rainfall but size avocados. that

size XX%. improve amount if an increase the pounded have So average you number can you to and of the size, pieces, it get same in of can the by XX%

be material. So it can

to in really or happening. that the had so avocados, the our avocados. start rain. say and to you early rain first that's this fewer too with posted It's great spot wind last, avocados. think and happened we love the with events keep they for they year we're more wind of off all, we've So XXXX And because we'll the had But good hate events, we've a versus a

Gerard Sweeney

Helpful. Got it. for One carton it. Got me pricing. one last regarding

that mid-September that mid call, low at commented was the was what was On that point in -- kind of of the range. in quarter the XX%, XX-ish -- third there kind XXs, pricing

to anything, lower of me the kind in quarter, On pricing evolved was how what, quarter? a XX%. you mid-September? And if what, of Can of the the kind it talk ends on half the throughout back price led at about up commented in full any, to if than quarter

Harold Edwards

Sure.

two mix. drivers to of So are price the your be your going product

your anticipated your your percentage and in percentage So sales -- of your the what fancy of choice difference between standards. between percentage of

percentage a we So lower anticipated. fancy than fruit we had of

down. of So standard the was so in grades down. more choice competitors on of total, with impact piece, And that and average of more the based then which in which a was whole one choice, as brought situation, the the mix a an oversupplied industry market product more dealt with buildup by the the grade. price was some dragged fruit was that put impact And that the pressure choice our more those other price,

Mark Palamountain

add. just I'll And

there, mentioned, desert XXXX. fruit. expected all in than fancy had higher related really just But as the [indiscernible] will So specifically our we choice that out to be Harold percentage it's of XXXX windy as

Operator

is question with question. next proceed from Larson with Our Partners. Instructions] Research [Operator Please Seaport Eric your

Eric Larson

So my and is, this. question have may I missed

the be and you pretty have how How utilization it? improve give forward? do this, Your is -- you did utilization, beneficial which you going fresh for -- missed lemon look up entire normally should which modeling? And generally did rate? the may at very And full give year, utilization that sharply we you went what fresh year is did does I --

Harold Edwards

Yes.

that. question. Thank for great you So

forecasting it but fresh year the dramatic recovery the One, of which which was harvested coordinating then and demand, affiliated was production of to utilization when anticipate XXXX fruit available. front be at to was which did was utilization and second programs the our So what And team our great year thing up where in our to, be prior not just for harvest. several XX% it came was what compares job our the think, of then was about year. things. we but did food and recovery going we full be out it market would in customers, XX% more function made certainly, a of to created a it once would the year, production service, at growers harvested in be provide rate, with move able and of And I the time setting the the that we're up in wound

of a you story, investments your appropriate systems. the we've just, do models into basis, and anywhere But and expect As to the to at out to we've on that required think throughout the have fresh utilization. the technology, team go-forward a across would end the really we XX% that utilization in build good made Arizona. job that's from information XX% the high California be the you all I believe districts teamwork there great keep great And a and

Eric Larson

once Okay. Great. kind starts your P&L. of of know it's that get pretty XX% is that on you having I great. impact one positive That's north a

would that let's say, XX% a that more So to is range? of should it normalized that something range? to of, that a north think possible -- of get normalized should as Or we XX% be --

Harold Edwards

Yes.

for different different answers districts. great So question,

really extreme Arizona, expect. it at utilization could gets then and And most wind XX% probably place little just to But the the potentially grow we comes grow California is like climate maximum to seeing then where have very when it's how much So hot, when in have opportunities into Joaquin all there's probably you get you we it you areas get. lemons, that coast, XX% San perfect where the as it's utilization Valley, really wind a there. up

have but not probably if if can the together, we could That's we wood we events hope XX% think big get avoid seen ever knock wind a up I to east like thing fresh is best XX%. think you winds, which probably of we've expectation all districts year, so then I low of for. And this the utilization, get most to lot had to whole low you put XX%. the across the average possible When mid- is

Mark Palamountain

and developing, that thing there, which we're players suck that an selling more fresh have the like concept, standards add great lemonade and is or we've one $X that those fruit raising customer to cans. well. is for other would one to still And opportunity Eric, as Adding just as otherwise gone had to two that juice up

Eric Larson

Okay. Yes, I that. on up follow

Harold Edwards

But I comment tree District the one -- the think Desert Tree, this of it high this more our of this means in to end to get District if we tree all incorporated the the Coast the each crops crops year. that lemons all other of great range the just get of on utilization, the X of comments. million sales can all regions the that these up carton are Valley have up we higher meaning year, X, And there's our across District here don't we'll opportunity because One into districts, a and of

So too. we've point got help and everybody focused this should at that, on rain that, the in

goal So this year. that's internal our

Eric Larson

follow-up question And quick one other Okay. just here.

that, you're four Will the about production acres takes, a with it three of acreage. Harold? harvesting? in that X,XXX to help tilt to you coming acres that's be really year. of a And years, get full the the two next for years Could maybe kind this first kind running year think new over I what, of on those this new come talked about with little with saying to XXX You

Harold Edwards

Yes.

to full three get bite takes a So years get you sound the plant seven the when of is years takes beginning tree, before production. you it and it to production bearing

XXX acres, X,XXX four. you're the of of So those at seeing year

you're get to production. So starting

is when of year in than year it's full-bearing year rule that thumb status seven. But three, that's tree your to it the when really at less you it's is seven. Now first and get gets fruit

Operator

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

Harold Edwards

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

Operator

your time. today's this conference, may participation. your lines disconnect for you at concludes This and Thank you

Limoneira (LMNR) 11 Jan 222021 Q4 Earnings call transcript