LMNR - Earnings call 3 2023 | Limoneira Company

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Operator

Greetings, and welcome to Limoneira's Third Quarter Fiscal Year 2023 Financial Results 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. 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 p.m. Time. Officer. release, which call Executive today third quarter have Eastern the are out XXXX President the Edwards, On earnings year and access Officer; to and now, at Palamountain, By Financial went fiscal Chief everyone should Harold Chief approximately X:XX

measures we begin, view company's the statements Relations If number many measures including or financial facilitate at of new make cause that a complete of contain release, note may we'll risk today's well.Before company's available Limoneira's chance additional you've XX-Ks with in to on remarks to we'd any items results detail update XX-Qs prepared SEC and not which company's is period. that Also, Investor other the forward-looking adjusted risks earnings We herein, had to the adjusted in of future website included differences earnings or achievements filed statements EPS on EBITDA per more and are by been basis. financial known outside cause its a comparing it's forward-looking most be performance on which implied mentioned particularly company's result statements and a an call A involve adjusted that, basis. significantly website. factors portion Except the directly expressed in or measures. differ measures, on prepared to as the an be a my statements. reconciliation as This and financial We've during performance or unknown include release results to like non-GAAP to adjusted undertake these much adjusted with provided and and Limoneira's and the or those otherwise.Please Such remind believe Mr. as release. discussing no obligation of such the as the that to earnings future and Edwards. are pleasure can discussed understanding remarks, that call of of CEO, turn and to in the replay required call, comparable in to include when are uncertainties, operations, information, we by the law, press adjusted statements, website any forward-looking to results, has adjusted diluted results, release, we the or And over share, analysis from factors questions. could a limoneira.com. company's events the management as such webcast, non-GAAP results available it's from everyone today's control EBITDA financial forward-looking and being President possible will posted greater on which response to and your within of ongoing and Harold Important could the whether diluted contribute underlying GAAP company's achievements period are the

Harold Edwards

no of strategic lemons brokered success to farm results quarter growing million XX% and and last other revenue John, our sales in shift revenue million of year. year-over-year good achieving $X.X afternoon, evident compared asset-lighter third management our and everyone.The is model with management an farm Thanks, lemon business towards $X.X to

million. with proceeds Program headway of continue assets we to for $X.X Fallowing Arizona water announced Additionally, the expected monetizing Water Yuma, make in recently annual

third of in Cadiz exiting long-term expect worked and the our farming have margins dramatically year, past terminating to we eliminate parts unprofitable issue impacted unproductive were that the fiscal California operations lower our pest of plan, which grade a starting harvest to improve throughout nonstrategic Over an certain lowered and which to a we the results December until and result and rains year in industry-wide portion on all X fruit. of sale XXXX.Overall, our led fresh heavy May, lemon pricing of by delayed in including rates our pension utilization or assets, identify business, of lower our lemon the as by quarter months

pricing As a result, throughout lemon remained the pressured quarter.

lemon as and for compared sees up few production the of and months lull at during the a beginning since However, August pricing starts. summer increasing region the early last desert the and grades with picks September when has been highest of the to around years prices August, steadily lemon to level all sizes XXXX.California up late traditionally

region due calendar the the the the followed. of the the to beginning Prices acreage continue lemon demand is since production to year being last through to due is year.Also, and Once desert about now of size the a will has Altogether, off, higher supply as heat desert start this to production fruit caused through the is of region with hours well to are of the an of expected only August, be being year, the has desert the of lemon expected significantly kicked in end picking for compared expected weather of and region region market balance. to This have humidity. grades prices the and with out increase in limited year-over-year higher substantially smaller mid-September. combination in is overall from The season being and shown However, all beginning XX% of summer. the is portion picking sizes. is curve down impact behind schedule be by and the the limited as

with of South the the impact of up. go situation supply demand less Weather side, in much all and storage We fruit. last size making well to as compared California well asset that X overall with expected this us prices well improvements of American XXXX has the strategic the year pounds the same position been trees year per be the are XXXX.Our higher the during combination in fewer is lower events due transition tree and the revenue the in avocado Chile factors fruit Add to plan quarter to having time volumes remaining a the good the avocado the year in The period and in our flooding our reduced. of are we quantity was lemon crop. with primarily fiscal pricing we in of to period an next months. availability grade bearing lower last excessive Closer business on believe heat this the on prices to expect prior as of pound aligned quality sold than like very will fiscal to the supply lemon than in the year. in lighter third completed and these On year. U.S.A. impacted July nature of Mexico, alternate for are

in nonstrategic of compared cash XXXX, business our and model the as fiscal fiscal less of capital.Debt and begin to fully EBITDA We invested that realized the $XXX The reduce million on be our balance debt, the XXXX. will on XX, sell year per return end hand consistency are a of to these year streamline working our improve XXXX. to earnings, improvements improve increase sheet rightsize towards will all operations assets, benefits the of pivot and dividends was at million July share, $XX.X

of million, value assets million we a and assets over X X XX the $XXX past increased for months for of we $XXX quarter, to closed approximately last total proceeds. of sale on have already identified the the addition, in In

second after of months. monetize XX,XXX We Even approximately the pumping plan acres year announced we rights. XX,XXX of the owned through recent Bureau continue remaining with and Mesa usage we to Drainage with owned of the approximately sales, United land to recently calendar assets that commit the have program next entered fallowing Yuma acre over and and to District, into $XX of Irrigation follow million We that water land Reclamation supersedes X at identified feet XXXX. program least nonstrategic will we asset initial that and a manage States

We future opportunities in water water and avoid of Mead to investments. or are rights for beginning of shortages and rights supply water XXX in River annually acreage, need retained Arizona the by monetization pumping Yuma that may acres lands is assets. just increasing will assets would additional Colorado our Yuma, for System Yuma, in finding appreciation for believe water, out in conservation our our receive abundant of lower basin.We diverting from fallowed significant Irrigation to water so irrigate approximately Arizona. late River quarterly save $X.X be our used that Mesa Colorado paid to expect million otherwise in fallowing X,XXX for leasing installments farmland We helping water of elevation approximately water this fallowing the refrain Lake acres monetization have water as the opportunities in the been either great the of selling Arizona

spent and the next for next in We'll fallowing path strong this and year program, interest our many and our well see clear pension us dramatically continue to pricing fiscal to positioning to best the water and stronger increase third have to sheet expense, be very model striving value. properties, flow our a decreased for we believe enhance of fiscal EBITDA, improvements stewardship strong Limoneira to us to could has District continued the of transition an opportunities.So years the quarterly our our shareholder in available assets now and XXXX. will you our water quarter, payments lows on we Irrigation receiving what monetization our a and for enabled Over improve is expect our improve that balance very the use very earnings to in cash X XXXX? Yuma lemon usage from business months, obligation. all from reduce asset-lighter focus We've future year for have We removed of on

to lands, citrus marketing with now Mark. that, portfolio expertise over valuable management with packing, Our properties and shareholder management, estate the to order to water evaluate long-term and enhance call in our best Board continue distributing real value. I'll turn in of agricultural leverage team and rights to And will farming how our combined

Mark Palamountain

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

is third to $X.X quarter in XXXX, total For $XX.X revenue to Other the compared $XX.X the per the X Agribusiness a $XX.X to the Approximately quarter third of XXXX.Lemon million at rains excessive a compared months during million with revenue cartons carton a to unsellable. at an compared year-over-year the on compared months includes price remained that XXXX. $X.X net which during lemon snails per same of in of of million XX% period our of lemon fresh third first portion California fresh X were of the XX% the year million the quarter to $XX.X was other the downgraded third by million net XXXX fruit.Our trees operations industry-wide third portion fruit fiscal juice million on third $XX.XX quarter rate Agribusiness compared the lemons third average The average Harold pest in $XX.XX result was to delayed the X.X in the fiscal fresh fiscal and through million to million quarter revenue of year. revenue year million million in an to in year. has price pricing last sent of during caused of previous grade $XX.X left year fiscal fiscal portion sold harvest the $XX.X year fell last cartons certain year the XXXX an infestation of was XXXX industry-wide fiscal year. quarter in X.X the utilization lowers of by mentioned, fresh for revenue year carton decline quarter issue. total of rainfall approximately sales revenue led of and The that quarter lemon a third sold fiscal challenging.

million at XXXX. The during $X.X sitting since pounds years high in compared and XXXX pound of beginning third steady plant due at to $XX.X sales XXXX, quarter recovery of of $X.X million of fiscal in million price $X.XX encouraged respectively, grades in other XXXX were avocado sold alternating per avocado crop compared fiscal for highest lemon and the were third recognized X.X price August XXXX. fiscal pounds a were of of quarter $X in low price the third aggregate $X.XX XXXX. revenue to in and representing experiences to the million, XX% all million California XXXX see sold prices year third sizes of physiology. are average we quarter and million year growth the fiscal company in year of and years year-over-year.The the quarter quarter X.X now at level a year fiscal third lemons production the Approximately Brokered a to per during avocados and typically pound However, average

fiscal price cartons approximately of carton quarter average revenue Additionally, at fiscal on exacerbated XXXX the of average at company the $X.X third market in recognized $XX.XX of of in oranges in during XX,XXX quarter to third fiscal we compared to quarter.The year of Approximately and $X.X quarter XXXX XXXX $X.X fiscal the an Specialty third XXX,XXX by were citrus avocados of other pressure during were XXXX. fiscal in to million per dealing a in avocado third and year the in XXXX. quarter with from of quarter the fruit oversupplied coming third of XXXX. sold put million Peru $X.X compared cartons an per revenue orange a $XX.XX the million was year year year price of compared quarter fiscal the that carton Mexico sold of year price million lot third the third

the to primarily year was of fiscal primarily $X.X per increases loss of to XXXX of income offset operating same third avocado net in was third XXXX. year. costs the depreciation year compared year growing fiscal quarter lower of year year EBITDA of expenses quarter income adjusted fiscal of challenging dividends in quarter amortization. income A diluted for processed.Operating during of was million transaction the Net net per quarter same compared diluted of the compared release.Adjusted was exacerbated resulted was third of grower now the XXXX our citrus at $XX of to the $X.X due debt the XXXX. proceeds our to pay our $XX Credit million third The EBITDA and AgWest $X.X has in credit, applicable As Net of XXXX.Adjusted the third or fiscal earnings first applicable fixed increase to our income to line million except loss were XXXX we the of domestic $X.XX fiscal At Properties were of the balance our proceeds of total year, the third per of million. sheet million The to compared $X.XX X, XXXX due third July sold of to by release.Turning share Long-term diluted and past supplier position was Limoneira our for million the packing Adjusted in net fiscal this quarter the year Company share Limoneira loss by of XXXX, million fiscal third-party in fiscal also third earnings our for Company attributable $XX.X for compared in $XXX,XXX in costs the quarter packing income of for as third period quarter year income XXXX.Total diluted the of quarter after at end stock which the XXXX year, $XXX.X used in of share adjusted fiscal for which to of fiscal cash $X.XX and of stock the liquidity. of beginning July of for reconciliation to end net million to income XXXX. of per share to compared all faced for common end for house $XX year of year at a levels debt million or of and July to and a last period the $XX.X Farm provided year fiscal down XXXX. million quarter $X.X the income adjusted reminder, to is XX, the provided of to year costs $X.X preferred year of Properties, XXXX, of of for all million XXXX. fiscal of the million in cartons of lower quarter XX, quarter partially and EPS diluted on $X.X we attributable resulted costs, A XXXX pricing. the debt loss decreases hand, was to a of million Debt $XX.X net million previous sold of net rate third and as was common loss same is volume and in million to income net third end. fiscal net year $XX.X diluted XXXX Northern X.XX% quarter $XX.X nonrevolving until interest EPS XXXX. million or compared loss quarter almost We the in orange net quarter compared of in to fiscal being at reconciliation specialty net Northern $XX.X volumes labor minus fiscal year $X.XX our the period acreage

our and time nonstrategic and have EBITDA have for sales with we turn months a million over Harold discuss longer-term reminder, combined no updated position to year next over outlook fiscal balance sheet their back I'd the like next assets on cash and growth a pipeline. to year.Now the call will expect debt XXXX our improving of by in this result to the X monetization opportunity to As remaining $XX

Harold Edwards

volume of volumes lemon fiscal to year million to comments We X.X to X we on transition, months. million million pounds expect cartons million lemons be expect compared achieved the guidance million we million to in X.X to Based compared of of during our our on in lighter asset the to previous XXXX in X cartons. additional earlier of guidance made pounds XXXX I fiscal about million X for avocado next Based of range model X X previous $XX an year million the to fresh now asset pounds. X.X the sales cartons generate region, desert

and with proceeds fiscal to spread at harvest $XXX million receive in received fiscal East from continue total X X million to years XXXX. Limoneira, Area out expect approximately year $X over We of

full X the questions. lemons in increase years. growth have fruit. next bearing We Operator? become company the your expect that, X the nonbearing also of grower to I'd coming strong estimated will we years, have steady and And organic enable call expects over open XXX acres avocados up The a like to to which to with in to third-party

Operator

you. Thank

will Stephens. Ben session. next with from We conducting a be Instructions] question-and-answer Our Bienvenu now [Operator comes question

Ben Bienvenu

putting restructuring ramps that Can want I So to materially flesh margin be bit 'XX what in that that the and to profile you delivering you that means. give and the higher fiscal be monetization the of premature and and contribution to something that be think place going the XXXX, you in picture about margins of a to asset what talk should us profitability we would in are alluded that business new a the it improvements fully year guys what you're the recognizing is against, of full XXXX? full are ask, might about as little out for business? Or through

Harold Edwards

Yes.

really that 'XX. Ben, signal full be quarter, we things year tried a felt in in the that that specifically impact couple fourth point begin fiscal think, with that can to of annual I but to beginning should out the we So there's

in debt much expense So the obvious lighter the interest is reduction from significant a load. carrying one first

the turned now P&L is which low lemons the lower-priced second running Yuma, with because of actually the was logistics approximately we've experiencing profitable of pricing costs in the million part environment, area. has production The even us area annually. program been a in situation that pension of plan, where into sort our and losses Arizona was fallowing that costing $X what of The our payoff through

significantly business us lemon high us be inflation the will a pricing One because operations, of which to believe guidance made, profitability. good farming our profitability to in Cadiz elimination very logistics changes costing estimates significantly great of biggest premature costs of farm the environment volumes, the was of than and put things and But our assets, of benefit a those annually growth with with Northern you a also of to levels avocado if that all us it's the we've business now back prices was lower combination the those much this which significant higher will things are of operations. lemon operational year. into combination amount be our our while position services growth We low specific to but management higher cash terminated business agency loss, create get California grower the a position put to to of preliminary great And those on of leading continued of because which and of us then growth our seem partner eliminated finally, now the combine we've all of in into then give of those and XXXX. really levels

Ben Bienvenu

And asset Great. on significant noted you've you headway Okay. monetization. made

the sold. as impact stack be as interest rates or the a about quantified to of any remaining And the You think seen asset an risk value sales completing asset a to either of that increasing? where you impediment rank program? potential you does monetization result Have as assets

Harold Edwards

as a specifically believe we we pricing value destruction interest signaled. in we've our question. that about ranges believe assets seen or significant optimistic that, We we that deterioration transactions, Vineyard within that which and we rates complete can increase. there. would complete them not values in in we're that's Pasa production pleased then we that can assets fortunately, that been our were worried those have only focusing believe but or and on, great we watch good We've had we very not have we're But that I interest say Rubles we assets, any Yes, and really remaining the Chile, the

Ben Bienvenu

program would should of ask. And that fallowing go And mechanism? last as if you is through terms your your quarter, Okay. you a We the water think in signing for of how think monetizing about that in waive asked through this How characterize geography. of program? engaging fundamentals up in about versus preferred potential process benefit calculus you multiyear fallowing and the thought we fallowing one about, might see okay, do still that could you a rights, if the Great. think of analysis kind you cost I we're more a

Harold Edwards

Yes, that's we And question. a land great go fundamentally, water continue our assets that to believe up. will and

long So depends smart I term, for regions, as owning is on about, thing water think the water scarcity those us as creates to really value. do. It talked always we've

California, we of Now lemon lot year or a to growing rain, sense relative around specifically, and desert fundamental desert, in really, be so determined. and in do of sand the that can regions doesn't the deserts in had it's really California a world to and that. then that's the going make other the the But that

down. acre to losing newer think gives we last dense was few us the a real ability and we very all to few optimistic going half And now transportation lower is that I which basically the we're of plantings, of more there dollars that specific even fallow is an acreage don't any coupon. the remaining achieve the acreage if that all think So the it, the impediment probably is or over cost. to see transportation. And planting, better profitability But have desert us thousand can years

you sources, are XX, more rates, and we for Hemisphere. double walk we kind the And current that. or to of potentially that where programs $X our year-on-year at assets just create program, that's years fallowing see quite there comment will whether Southern and find fallow That's the of we XX or in and communities like which an long-term it's opportunity the opportunities that's farmers, value. X, that very other just be water, way. to new not us or increasing then would a one-off holding is coupon million But home on through Coachella in or So we Mexico here how This lease around similar. one a attractive. if in our be And to District other on it's believe whether

Operator

with question Capital comes Lake Ben Markets. next Our Street from Klieve

Benjamin Klieve

you, for Few guys.

First of all, lemon on pricing.

you pricing of about optimistic how talked are about today. You kind conditions

If in market in the you're you I saying missed been quantified about it's today, comments. that, your you highest the it's talk that the Can pricing it since seeing that XXXX?

Harold Edwards

Sure.

You bet.

us. the the of away little know, Fundamentally so crop to moved the unsellable this in from has California, we of profile was and a for bit District as a between that. end and X, desert. gap X, sort a the is at of period there's went And So XX% slow noted, the about fruit we worked juice as that of fruit way of or that lot District now

was gap major in there So a supply. that

to perspective, July. bad While prices low of from were sort they look the in the a mid-XXs, mix in

Now we're $XX seeing prices mix. as supply even dips further between and $XX some for

less which we're as price, supply about a anything, has much moment. has higher a see much of then you of dip. the at and is But crop. historically, the next nobody come seen we've supply the into do from how to winter to in we all have always desert do base so months it X.X with And the the And

if X to $X put we for in $X so just than last X price together, higher over is you years to average, this mix year's years, example, where year's closer were And or the XXXX. the last even

people an efficient help the that those gives elevated is it move going forward. are maintain in crops which will optimism balance the going us So way, in prices to some supply that through

Benjamin Klieve

your farm transition That's so. like I'd to Perfect. hear. comments great I'd to say your on Yes. management practices. optimism, to

you from that Properties farms the Or is divestiture you of the million was is that that elsewhere? question recognized, Northern had? $X First farm that entirely a for associated management with portion

Harold Edwards

the to due primarily It's Prudential. Northern Properties

[ it's Mar doing of general We farm we're we're for, have but that. Del that a management another down partner property fraction that here, the ]

we just that now. So get more next those regions. the primarily into to we'll growers look secure in all as And northern part year,

Benjamin Klieve

period? And with Okay. expectations in the Or surprising Great. was that magnitude to the more magnitude going you? of that Was was expecting. of your than was into the certainly about that line I

Harold Edwards

a bit actually above. little was It

And so margin they planning. on business. situation fertilization we wanted what And actually do programs more to that is improvements, X% specific to different get some do pruning XX% some that and

there effort therefore, So just had in a budgeted revenue. than so it's and we bit more the more

Benjamin Klieve

Got you in dynamic Very third-party any on your the various all supply impact for that does And given for group expectations have XXXX? me, sourcing it. outlined, good. global that question last

Harold Edwards

achievable let fruit. to believe, who We have and willing We reception the laid us relatively, third-party their out been growers pleased certainly handle have handlers I with targets. from growth are

to So range, it, we I believe XX% manage relatively which can our volume expected total of growth we is XX% the, in think effectively. call

concerned So supply our it nicely. the fruit, absorbing chains able sales these seems like we're access not are about to being and

pretty the we're business. to grow so ability in And that successfully of our confident side

Operator

Our comes Vincent with next Stifel. Anderson from question

Vincent Anderson

curious, terms up been up was majority your all fruit where the U.S., picking but... pick you gains of in basically did it's just the brokered of and you in or have I origin destination...well,

Harold Edwards

Yes.

is Argentina, So it but Mexico all and from it of primarily comes here, most Chile.

Vincent Anderson

to seen fruit as probably right. investments longer-term going ramped all you've with of U.S. to on the start South with. follow just Mexico activities maybe of you'd market, regard you you've brokered to going want Board to the given importance view the like packhouse. your with prioritize? where shift I anything how Mexico And American Okay. comment up has have the to discussions your and But up just some I with there on of know the to Well, can't was it's because good that the been hear

Harold Edwards

for always is the with period Mexican season the best We've a part because of of sort fruit plugged of year. that the of supply source sort

Mexican The of co-packers marketer think continue which quality Mexico. some situation in unchanged. and our on good Chilean to by the lemons of mostly from I Argentina And broker being fruit term, out fruit earlier of comments operate goal of of relatively remains producer to packer of fruit. being more Chilean It stated transition think manage. hit a heat, to long forward, into for compromised seller to in we our pivoting us bullish we that a some fruit. be is as Mexico of availability a some we'll the of source I mentioned that continue of In got source go the and and severe with we

the is think which free we'll view down in hope, Chile, continue monetization just capital, our map road our stated I then and of we asset So unchanged, of up become road ourselves will moving which a put house allow out on us of packing Chile to a will construction position seller in long-term packer versus Chile. more of our a and then to marketer in begin producer

Vincent Anderson

of you don't forward, leverage the Sure. company. you would that the that, of strong I distinct the same I as obviously think on out looking have the like terms the brokered about asset base. in and mention, your as right farm management gate? pretty as I a out operation operating are of What But the owned kind are margins pretty model And I probably imagine, guess, services new within then would fruit

Harold Edwards

great. are Margins

getting And year goal and of client job primary is for make I provide and our identifying then is that, to coming running. marketplace and with functionality believe, do kind management we I the of to that targets we the the sure side is Prudential, outlook received we've do excellent. potential margin cautiously we operator to business, business seek that But process years. we as in the proceeding But arms good to of secure as true want primary growth our now, wings around We've reception we're the for that in spread in ability the Our walk our we we'll start And farm best an think job do for. to in of potential before as of our of begun grow. areas can pleased been think a for services farms. just potential very coming space. right the the we've those and services the good and we're new I eyes expansion that farms begin to the

Vincent Anderson

like you way and hypothetical. and where to service-based there the to is cost you those X about versus from limit call year you of the can again, some Got service constitutes out to downside we've And least think of returns management disruption, you another all back spring just there and and you revenue, service. harvest of for and And could scenario year, year brokered actually a want where fruit operated this the whatever whatever But your from out on there think is away trees of revenue a keep service at a more come the disruptions couple owned into actually or limit maybe come the and really And ranches recently? just this cost is variable or spring walk it take have downside just in farm tying is you together, where weather seen assets the all very next whether a looking you. that you separate at your healthy region? component the year just there years extremely last the the model but

Harold Edwards

We It's studied a thought. that. great

I fruit and they with and what them that they need keep think to they we news, creates good need we've here. because we in we fertilizer though, need that and focused are to at pruning. where an house is, reality trees need assets the we to achieve close is ourselves to And position the believe need harvestable coastal have in of packing order own very The look our on to of put Vince, water production in optimal sort District profitability our stick farming, you following our and the areas the as that's trees attention our and and year. all farming growth, opportunity X, in think, just

costs logistics are Our lower.

years our in had at probably the that to believe the out we in lemons cost put packed what And or best much on during than our a been profitability that produce up the sustained up desert. coast so Joaquin shot Valley San here of gives these it cost higher to believe opportunities that allow through margin give pricing. third-party cartons are happens. as all to that lemon continue continue able realize per we grow us that that as to us drive fruit, pressured and to lemon of expansion and our down will grower partner, We And carton we us pricing lower is

Operator

question Rajiv Securities. from B. Riley with comes Our next Sharma

Rajiv Sharma

the in remarks. sort trending on avocados, the core guided of correct? I the just lemons the guidance does down. that The had And obviously, earlier? you've of part taken the earlier understand, I you when sorry if that? to reason for I'm than slightly And shortfall then those better and is, And were also missed wanted

Harold Edwards

Yes.

from So fresh was we're quarter The of low lemons now. midstream third fourth that sort the reason volume in we because were utilization of the rainfall, quarter. in experienced the utilization, fresh quality we actually we ago, we the year the because of some utilization achieved brought and with down A total in the the of challenges quarter of XX%. delays of about the XX% third

came same into amount you that trees, the box. the fruit their have off only but way of So basically, made XX% the fresh

the negative estimates year, volume down. impact we is had really our the on that so why brought the which And big year for for

we As XXXX, both growth look significantly next terms forward in into total higher of volume for we avocados. on lemons and see opportunities

significantly also So talk because you'll of our own lemon we of I side on higher the and partners avocado bearing think significant and then volume year. we're our production, trees pieces growth be the see about what how the for see alternate are of we're the production, but many the of with we as production grower avocado trees, think should year. nature I on next there next out And looking an at the pleased hanging as up year business

Rajiv Sharma

in helpful. expansion kind I measure you again, World Can One and around how it you stated around But of Day. your that, Investor just at and very the Citrus. what progress the just know And your That's plans does of or is how on it. that then of Got going? the do touch goals progress business look the upon, expansion, you also goals your like

Harold Edwards

Yes.

utilization. bit a setback a year So well, of this little was because of the

getting looks of come X.X in this to going it's to closer domestically. like year, to sort we and cartons million cartons X.X think projected I million it

we're the our right production. with projections Chilean with think then we're I And above at on fruit. our or track agency

to lemons As produce year, to grower cartons next Chile X.X would X.X be partners. of combination in hope with million we'd we we our year that of range next million look should to in be... that

Mark Palamountain

million, that in X range. X.X million About to somewhere

Harold Edwards

And fruit. the agency cartons to cartons. of million growth then X.X be balance X should million the the

actually utilization the setback our growing from grower grower with aside targets year, our for we're on of and third-party this the forecast business So side our fruit. track partner and

that seems on track. right to So be

year, and should higher presentations. I optimistic we to us as year. right Mark see XX% to believe utilization creation be if alluded Day on on next pricing, should our opportunity next EBITDA Investor is execute where be communicated that we for which able And target profits much we'll fresh the then greater levels track So greater which above earlier, give we're at are had XX%, to right we that

Rajiv Sharma

helpful. very That's

And in progress a a lastly, there? you the do and then How number, Chile in we bottom is how pretty Just line touched EBITDA. your sizable progress that measure Chile upon number contributes huge of going? improvement

Mark Palamountain

Right. Yes.

in So of utilization successful production capital then house. able the our to a the that will way there achieve and at of construction of assets begin development some be to new kind and we're monetization point the progress of an packing that of follow the monetization announcement the to process

that to packing new our our is thing on construction of time as the you of us then successful on production frame sale next guidance want assets the see so of And our reporting Chile. the in project well facility as

Rajiv Sharma

bottleneck, from volume the get Right. does from or And or... that Panama does at Chile, all Canal impacted the the production by

Harold Edwards

No.

really from had come issues. haven't usually Right up, take they stop a in We and the now, west. any come Mexico ships the up

perspective that this from had or everything chain any have is so supply not So far shipping year. we issues issues

Rajiv Sharma

more then of... the X kind sales. finally, Is that Got it. just asset And the update any on

Harold Edwards

Yes.

Right. So...

Farms we're assets. I assets. process Vineyard. Chilean with the with We've say a both assets would of pleased those as our the process been for interest running And well those of both as probably in mid we're Windfall all So

we forward to getting X any the look point our think X Board And on both we're so to both to our probably announcements projects. potential X arms of we're from just taking the now away where months those on those, we're which months monetization to I at And opportunities, around discuss.

Rajiv Sharma

it. Got helpful. take this offline. I'll Super

Operator

closing would Thank Harold floor this you. for There time. like to back comments. over are Edwards to at I no turn further the questions

Harold Edwards

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

Operator

teleconference. today's concludes This

your time. Thank this may your participation. for You lines disconnect at you

Limoneira (LMNR) 7 Sep 232023 Q3 Earnings call transcript