Customer Concentration - Sales to the top 10 customers accounted for approximately 65% of net sales for the year ended October 31, 2023, compared to 59% for both years ended October 31, 2022 and 2021[42]. Supply Chain Risks - The company faces risks related to limited fruit supply, which could lead to increased costs and decreased revenues if unable to purchase sufficient volumes from third-party growers[33]. - Disruption in the supply chain or inability to maintain production capacity could adversely affect the company's ability to meet customer demand and operational efficiency[48]. - Transportation costs have increased significantly, impacting the company's ability to serve customers and affecting financial performance[49]. - Farming operations are subject to risks from climate change, including adverse weather conditions that can reduce product availability and increase costs[52]. - The company relies on efficient transportation services, and disruptions due to climate change could significantly impact operations[53]. Market and Economic Conditions - The company is sensitive to fluctuations in market prices of products, which are influenced by supply conditions and external factors such as weather and pests[34]. - Increased competition in the market may adversely affect the company's operating results, particularly if unable to offer competitive prices to growers and customers[36]. - Economic and political conditions in Mexico, the largest source of avocado supply, could adversely impact the company's operations and market conditions[43]. - Economic conditions in Peru, where significant farming operations are conducted, could materially affect the company's financial performance[45]. - General economic downturns may reduce consumer spending, impacting the company's sales and profitability[47]. - Global conflicts, such as those between Russia and Ukraine, may adversely affect the company's business operations and results[80]. Legal and Regulatory Risks - The company is subject to legal and regulatory changes in Mexico that may require direct employment of harvesting personnel, potentially impacting operational costs[44]. - The company is subject to various federal, state, local, and foreign regulations regarding environmental matters, which could lead to substantial penalties or operational restrictions if not complied with[67]. - Changes in U.S. trade policy and tariffs may negatively impact the company's operating results and financial condition[64]. - Compliance with evolving data privacy laws, such as CCPA and GDPR, may require significant resources and could result in penalties if not adhered to[59]. - Food safety events could adversely affect sales and the company's reputation, leading to potential liability claims[61]. - The company faces various legal proceedings that could result in substantial monetary damages and negatively impact its reputation and stock prices[72]. Financial Performance and Risks - The company's financial results are significantly affected by variations in pricing and fluctuations in crop sizes, which may hinder accurate forecasting[81]. - The company incurs significant legal, accounting, and compliance costs as a public entity, which were not present as a private company[85]. - Compliance with the Sarbanes-Oxley Act and Dodd-Frank Act has increased legal and financial compliance costs, potentially impacting net income or increasing net loss[85]. - Changes in tax laws and regulations could affect the company's financial results, with potential increases in corporate income tax rates in Peru from 20% in 2023 to 29.5% thereafter[79]. - A decline in business performance could hinder compliance with financial covenants, affecting the ability to manage business and capital[95]. Governance and Control - Executive officers and directors own approximately 39% of the outstanding common stock, which may influence corporate governance and control over significant transactions[84]. - The company’s governance provisions may discourage favorable takeovers and limit stockholder influence over management changes[90]. - The exclusive forum provision in the company’s charter may limit stockholders' ability to bring claims in preferred judicial forums[92]. - The company is governed by Delaware law, which includes provisions that could affect merger and acquisition activities involving significant stockholders[91]. Operational Challenges - The company has faced labor shortages and inflationary pressures, which could negatively affect operations and results[50]. - Seasonal factors, such as fruit availability and consumer demand, can cause revenue and operating results to vary significantly[55]. - Cybersecurity risks pose a threat to operations, potentially leading to increased costs and disruptions[56]. - Cybersecurity incidents could materially adversely affect the company's financial performance, especially if operations are interrupted and insurance coverage is inadequate[71]. - The company is required to report on the effectiveness of internal controls over financial reporting starting with the fiscal year ending October 31, 2021[88]. - There are risks associated with maintaining effective internal control over financial reporting, which could lead to a decline in investor confidence and stock price[88]. Investment and Financing - Future acquisitions may result in accounting charges, increased debt, and contingent liabilities, potentially adversely affecting the company's financial condition and stock price[68]. - The company has invested heavily in distribution centers and packing facilities, and any failure to manage these effectively could lead to operational and financial losses[70]. - Borrowings under the credit facility bear variable interest rates based on SOFR, with a 10% decrease in interest rates not materially affecting financial position or cash flows[186]. - The majority of sales are conducted in U.S. dollars, while significant input costs are in foreign currencies, with no expected material effect on operations due to short inventory turn-time[188]. - Inflation impacts costs of labor, materials, transportation, and overhead, with uncertainty in recovering these costs through future price increases[189].

Financial Data and Key Metrics Changes - Total revenue for Q3 2023 was $261.4 million, a 17% decrease compared to the same period last year, driven by a 33% decrease in average per unit avocado sales prices, partially offset by a 23% increase in avocado volumes sold [12][15] - Adjusted EBITDA was $21.2 million, down from $31.6 million in the same period last year, primarily due to lower per unit margins within the International Farming segment [15][17] - Gross profit decreased by $14.2 million to $28.4 million in Q3 2023, concentrated in the International Farming segment due to lower pricing on avocados sold from company-owned farms [13][17] Business Segment Data and Key Metrics Changes - Marketing and Distribution segment net sales decreased 17% to $256.6 million, while adjusted EBITDA increased 4% to $16.1 million due to lower SG&A expenses [15][16] - International Farming segment revenues were $38.2 million, a 41% decrease compared to the same period last year, with adjusted EBITDA down $11.4 million to $4.9 million [17] - Blueberry segment net sales were $1.4 million, with adjusted EBITDA of $0.2 million, compared to $0.3 million and negative $0.2 million in the same period last year [18] Market Data and Key Metrics Changes - The company experienced a 23% growth in avocado volume during the quarter, reflecting strong performance in key export markets [9] - North American volume increased by 15%, supported by a larger Mexican harvest [15] - The company anticipates exportable volumes from Peru to be in the range of 105 million to 115 million pounds for the 2023 harvest season, a decrease from initial expectations [23] Company Strategy and Development Direction - The company remains focused on maximizing opportunities despite challenges with the Peruvian crop, leveraging its global sourcing capabilities and distribution network [8][10] - A new forward distribution center in the UK opened in April 2023, which is expected to enhance market access and operational efficiency [10] - The company has approved a stock repurchase program of up to $20 million to mitigate the dilutive impact of stock incentive plans [22] Management's Comments on Operating Environment and Future Outlook - Management noted that the industry pricing environment has improved, which is expected to help margins in the fiscal fourth quarter [8][23] - The company is preparing for potentially lower volumes in the fourth quarter due to reduced supply from Peru, but anticipates higher pricing [29][39] - Management acknowledged the impact of weather on production and emphasized the need for strategic adjustments based on data collected during the current season [42][44] Other Important Information - Cash and cash equivalents were $23 million as of July 31, 2023, down from $52.8 million as of October 31, 2022 [18][19] - Capital expenditures for the nine months ended July 31, 2023, were $47 million, with significant investments in avocado orchard maintenance and a new distribution facility in the UK [20][21] Q&A Session Summary Question: Can you discuss trends outside the International Farming segment and expectations for the fourth quarter? - Management highlighted strong volume growth in the Marketing and Distribution segment, driven by increased Mexican fruit availability, and anticipated a slight decrease in overall volume for the fourth quarter [27][29] Question: What is the expected volume split between Q3 and Q4? - Management indicated a shift towards a 45% in Q3 and 55% in Q4 for sell-through, with some potential volume slipping into Q1 fiscal 2024 [37] Question: How does the company expect to perform in line with industry growth in the fourth quarter? - Management expressed confidence in maintaining a significant share of the market despite lower volumes from Peru, leveraging their position in the region [39]

Financial Performance - Net sales decreased by $51.8 million or 17% in the three months ended July 31, 2023, compared to the same period last year, primarily due to a 33% decrease in average per-unit avocado sales prices, partially offset by a 23% increase in avocado volume sold [90]. - For the nine months ended July 31, 2023, net sales decreased by $111.9 million or 14%, attributed mainly to the Marketing and Distribution segment, with a 32% decrease in average per-unit avocado sales prices and a 19% increase in avocado volume sold [91]. - Gross profit for the three months ended July 31, 2023, decreased by $14.2 million or 33% to $28.4 million, with gross profit percentage dropping to 10.9% of revenue [95]. - For the nine months ended July 31, 2023, gross profit decreased by $7.4 million or 12% to $55.5 million, with gross profit percentage increasing to 8.0% of revenue [96]. - Operating income for the three months ended July 31, 2023, was $11.0 million, down from $22.0 million in the same period last year [88]. - Net income attributable to Mission Produce for the three months ended July 31, 2023, was $6.6 million, compared to $18.4 million in the same period last year [88]. - Total net sales for the three months ended July 31, 2023, were $261.4 million, a decrease from $313.2 million in the same period last year [116]. - Adjusted EBITDA for the three months ended July 31, 2023, was $21.2 million, down from $31.6 million in the same period last year [117]. Expenses and Costs - Selling, general and administrative (SG&A) expenses decreased by $3.2 million or 16% in the three months ended July 31, 2023, primarily due to lower employee-related incentive compensation accruals and lower professional fees [98]. - SG&A expenses decreased by $2.2 million or 4% in the nine months ended July 31, 2023, mainly due to lower ERP costs and employee-related incentive compensation [99]. - Interest expense increased by $1.7 million or 113% and $4.8 million or 137% for the three and nine months ended July 31, 2023, respectively, primarily due to rising interest rates and higher average outstanding debt balances [101]. - Other expense increased by $0.2 million or 22% in the three months ended July 31, 2023, primarily due to foreign currency transaction losses [108]. Taxation - The provision for income tax decreased by $3.1 million or 57% and $1.3 million or 35% for the three and nine months ended July 31, 2023, respectively, mainly due to lower pretax income [111]. - The effective tax rate for the three months ended July 31, 2023, was 27.1%, compared to 23.2% in the same period last year [111]. Segment Performance - The Blueberries segment contributed $32.9 million in net sales for the nine months ended July 31, 2023, following its consolidation on May 1, 2022 [84]. - Net sales in the Marketing and Distribution segment decreased by $52.3 million or 17% for the three months ended July 31, 2023, and by $141.2 million or 18% for the nine months ended July 31, 2023, compared to the same periods last year [119]. - Adjusted EBITDA for the International Farming segment decreased by $11.4 million or 70% for the three months ended July 31, 2023, and by $9.1 million or 82% for the nine months ended July 31, 2023, compared to the same periods last year [121]. - Net sales in the Blueberries segment increased by $1.1 million or 367% for the three months ended July 31, 2023, primarily due to an earlier start of the blueberry harvest [122]. - The Blueberries segment's negative adjusted EBITDA of $(0.2) million for the nine months ended July 31, 2023, was primarily due to weak sales prices in the European and U.S. markets [122]. Cash Flow and Investments - Net cash used in operating activities was $7.3 million for the nine months ended July 31, 2023, a decrease of $4.3 million compared to the same period last year [125]. - Capital expenditures for the nine months ended July 31, 2023, were $47.0 million, compared to $42.0 million for the same period in 2022 [126]. - As of July 31, 2023, cash and cash equivalents were $23.0 million, down from $52.8 million as of October 31, 2022 [132]. - The Moruga Blueberry Project is expected to require a total investment of approximately $50 million, with capital expenditures related to the project expected to be around $13.0 million for fiscal 2023 [136]. Financial Ratios - The company had a consolidated leverage ratio of 2.97 to 1.00 and a fixed charge coverage ratio of 1.68 to 1.00 as of July 31, 2023, in compliance with financial covenants [134]. Currency and Exchange Rates - The company’s financial reporting currency is the U.S. dollar, with significant purchases of avocados denominated in Mexican Pesos and costs in Peruvian Soles, but exchange rate fluctuations do not significantly impact gross margin [86].

Mission Produce, Inc. (NASDAQ:AVO) Q2 2023 Earnings Conference Call June 8, 2023 5:00 PM ET Company Participants Jeff Sonnek - Investor Relations Steve Barnard - Chief Executive Officer Bryan Giles - Chief Financial Officer Conference Call Participants Benjamin Bienvenu - Stephens, Inc Tom Palmer - JPMorgan Christian Contreras - Bank of America Operator Good afternoon and welcome to the Mission Produce Fiscal Second Quarter 2023 Conference Call. [Operator Instructions] Please also note today’s event is bein ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 _____________ FORM 10-Q _____________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended April 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-39561 _____________ MISSION PRODUCE, INC. (Exact name of Registrant as specified in its charter) __ ...

Financial Data and Key Metrics Changes - Total revenue for Q1 2023 was $213.5 million, essentially flat compared to the prior year, but benefited from approximately $30 million due to Blueberry consolidation not reflected in the prior year [12] - Adjusted EBITDA improved to $2.3 million from a loss of $10.4 million in the same period last year, primarily attributed to higher gross margin [15] - Gross profit increased by $8.5 million to $9 million, with gross profit percentage rising 400 basis points to 4.2% of revenue [13] Business Line Data and Key Metrics Changes - Marketing and distribution segment net sales decreased 14% to $181.8 million, while adjusted EBITDA increased 160% to $4.6 million due to higher gross margin [16] - International farming segment revenues increased 73% to $5.7 million, driven by higher packing and cooling service revenue for Blueberries [17] - Blueberry segment net sales were $29.8 million, with adjusted EBITDA showing a loss of $0.5 million due to pricing compression in the European and U.S. markets [18] Market Data and Key Metrics Changes - The industry is expecting a 20% increase in the overall Mexican avocado crop for fiscal 2023, which is anticipated to drive higher volumes [21] - Pricing is expected to be lower on a year-over-year basis by 30% to 35% compared to the previous year, primarily due to volume dynamics [22] Company Strategy and Development Direction - The company is focused on expanding its global presence, including investments in new facilities like the forward distribution center in the UK, expected to become operational in April [9] - The strategy includes leveraging core competencies in new markets such as Blueberries, with a long-term outlook for growth despite current pricing challenges [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improved pricing stability and greater consumption in the coming year, driven by lower fruit pricing and increased industry volumes [6][7] - The company anticipates sequential improvements in per unit margins, although below historical targets, due to easing cost inflation [8] Other Important Information - Cash and cash equivalents decreased to $39.2 million as of January 31, 2023, from $52.8 million as of October 31, 2022 [19] - Capital expenditures for Q1 2023 were $17.6 million, including investments in the new UK distribution facility and the Maruga Blueberry operation [20] Q&A Session Summary Question: Thoughts on consumption trends and pricing - Management noted that lower prices attract more consumers, with a significant gap between market prices and retail prices previously slowing demand, which has since improved [28][29] Question: Supply outlook post-Mexico harvest - Management indicated that California's crop size is expected to improve due to recent rains, with a 10% increase in Peru's crop size and more normal sizing conditions [32] Question: Blueberry segment performance and future outlook - Management acknowledged challenges in the blueberry segment but remains optimistic about long-term prospects, focusing on introducing new premium varietals to improve market positioning [36][37] Question: Impact of inflation on pricing and profitability - Management is adjusting pricing structures to cover inflationary costs and is seeing improvements in freight rates, which should help normalize profit margins over time [40][41]

Financial Performance - Net sales decreased by $3.1 million or 1% to $213.5 million for the three months ended January 31, 2023, compared to $216.6 million in the same period last year[83]. - Gross profit increased by $8.5 million or 1700% to $9.0 million, with a gross profit margin of 4.2% for the three months ended January 31, 2023, compared to 0.2% in the same period last year[89]. - Total net sales for the three months ended January 31, 2023, were $213.5 million, a slight increase of 4.3% compared to $216.6 million in the same period last year[103]. - Net loss for the three months ended January 31, 2023, was $10.6 million, an improvement from a loss of $13.4 million in the same period last year[112]. - Adjusted EBITDA for the total reportable segments was $2.3 million, a significant improvement from a loss of $10.4 million in the same period last year[104]. Segment Performance - Marketing and Distribution segment net sales decreased by 14% in volume but were partially offset by a 27% decrease in average per-unit avocado sales prices[85]. - The Marketing and Distribution segment experienced a net sales decrease of $30.5 million or 14%, primarily due to a 27% decrease in average per-unit avocado sales prices, despite a 14% increase in avocado volume sold[106]. - International Farming segment sales increased by $2.4 million or 73%, driven by higher packing and cooling service revenue for blueberry operations[108]. - Blueberries segment net sales were $29.8 million, with an adjusted EBITDA of $(0.5) million, attributed to weak sales prices in European and U.S. markets[109]. - The Blueberries segment experienced negative gross margins due to weak sales prices in the European and US markets[89]. Expenses and Liabilities - Selling, general and administrative expenses increased by $0.4 million or 2% to $19.1 million, including $1.6 million in expenses from the Blueberries segment[90]. - Interest expense rose by $1.5 million or 167% to $2.4 million due to rising interest rates affecting variable-rate debt[91]. - Other expense increased to $0.8 million compared to other income of $1.6 million in the prior year, mainly due to losses on foreign currency transactions[96]. - Income tax benefit decreased by $0.8 million or 32% to $1.7 million, with an effective tax rate of 13.8% for the three months ended January 31, 2023[99]. - As of January 31, 2023, the company's undiscounted cash liabilities related to leases amounted to $183.8 million, including approximately $60.0 million for a 25-year land lease in the Blueberries segment[125]. - Remaining maturities on term loans and notes as of January 31, 2023, were $150.1 million[126]. Cash Flow and Capital Expenditures - Operating cash flows for the three months ended January 31, 2023, were $(1.3) million, significantly better than $(41.4) million for the same period last year[112]. - Capital expenditures for the three months ended January 31, 2023, were $17.6 million, compared to $20.9 million in the same period last year[113]. - Cash paid for capital expenditures for the year ended October 31, 2022, was $61.2 million[123]. - As of January 31, 2023, cash and cash equivalents were $39.2 million, down from $52.8 million as of October 31, 2022[119]. Investment and Financial Ratios - The company maintained a consolidated leverage ratio of 2.11 to 1.00 and a fixed charge coverage ratio of 2.29 to 1.00, in compliance with financial covenants[121]. - The Moruga Blueberry Project is expected to require a total investment of approximately $50 million, with $15.0 million anticipated for fiscal 2023 capital expenditures[124].

Mission Produce, Inc. (NASDAQ:AVO) Q4 2022 Earnings Conference Call November 22, 2022 5:00 PM ET Company Participants Jeff Sonnek - ICR, IR Bryan Giles - CFO Steve Barnard - CEO Conference Call Participants Ben Bienvenu - Stephens Tom Palmer - JPMorgan Bryan Spillane - Bank of America Operator Good afternoon and welcome to the Mission Produce Fiscal Fourth Quarter 2022 Conference Call. [Operator Instructions] Please also note today's event is being recorded. At this time, I'd like to turn the conference cal ...

Revenue Generation and Market Dynamics - The company generates revenue from avocados, but its ability to do so is limited by the supply of avocados and the capacity to purchase or grow additional avocados[43] - Sales to the top 10 customers accounted for approximately 59% of net sales for the years ended October 31, 2022, and 2021, and about 64% for the year ended October 31, 2020[52] - The company’s profitability is sensitive to fluctuations in avocado market prices, which are influenced by supply and demand dynamics[44][45] - Seasonal factors significantly impact the company's revenue, particularly in Peru, where harvests are concentrated in the third and fourth fiscal quarters[67] Operational Risks and Challenges - The company is exposed to risks from international operations, including changes in legal or regulatory requirements, which could adversely affect its ability to sell products and repatriate profits[48] - Economic and political conditions in Mexico, the largest source of avocado supply, could negatively impact the company's operations and financial results[53] - The company faces increasing competition in the avocado market, which may adversely affect its operating results and pricing strategies[46] - Disruptions in the supply chain, including transportation issues and global supply chain complexities, have led to increased costs and delays in customer shipments[62] - The company's operations are subject to various farming risks, including adverse weather and market price reductions, which can affect revenue and operating results[66] Financial and Economic Factors - Inflationary pressures and rising costs of commodities, such as fuel and paper, could adversely affect the company's operating results[50][51] - General economic conditions, including potential downturns, could adversely impact consumer spending and, consequently, the company's financial results[58] - The company may face increased costs and may not be able to fully offset these through price increases, potentially adversely impacting results[63] - Inflation impacts the company by increasing costs related to labor, materials, and transportation, with uncertainty regarding the ability to recover these costs through price increases[207] Labor and Management Issues - The future success of the company largely depends on the management team's expertise and ability to attract and retain qualified personnel[64] - Labor market pressures and inflation may negatively affect the company's ability to recruit and retain skilled labor, impacting operations[65] Legal and Regulatory Environment - The company is subject to various legal and regulatory changes impacting labor in Mexico, which could have a material impact on its operations and profitability[54] - The company is subject to extensive government regulations that could negatively impact financial condition and results of operations, including compliance costs and potential penalties[91] - The company has faced various legal proceedings, including substantial claims that could divert management's attention and result in significant monetary damages[90] - Compliance with evolving data privacy laws, such as CCPA and GDPR, is critical, as failure to comply could result in significant penalties and reputational damage[73] Geopolitical and External Risks - The ongoing conflict between Russia and Ukraine poses geopolitical risks that may adversely affect the company's business and results of operations[98] - Changes in U.S. trade policy and regulations may negatively impact the company's operating results and financial condition[80] Corporate Governance and Financial Structure - Approximately 41% of the company's outstanding common stock is owned by executive officers, directors, and principal stockholders, which may influence corporate governance and control[101] - The company has amended its certificate of incorporation to include provisions that may discourage mergers or acquisitions, potentially limiting stockholder benefits[111] - The company is governed by Section 203 of the Delaware General Corporation Law, which restricts individuals owning over 15% of voting stock from merging with the company for three years unless approved[112] - The company’s credit facility has a principal value of $100 million, with restrictive covenants that may limit operational flexibility and strategic initiatives[118] Financial Instruments and Currency Exposure - Interest rate swaps with a total notional amount of $100 million are in place to hedge against variable interest rates, with fixed LIBOR rates ranging from 1.75% to 2.57%[205] - The company does not expect foreign currency transactions to materially affect its financial results due to the majority of sales being in U.S. dollars[206] Cybersecurity and Safety Concerns - Cybersecurity risks pose a threat to the company's operations, potentially leading to revenue loss and increased expenses[68] - Food safety events could adversely affect sales and operating results, particularly if they involve the company's products[75] Management Controls and Compliance - The company has implemented additional financial and management controls to comply with Sarbanes-Oxley requirements, which may increase operational costs[108] - The company is subject to examination by tax authorities, and adverse outcomes could affect financial condition and cash flows[97] - The company may incur significant costs as a result of operating as a public company, impacting net income or increasing net loss[104]

Financial Data and Key Metrics Changes - Total revenue for Q3 2022 increased by 27% to $313.2 million, driven by a 42% increase in average per unit avocado sales prices due to lower industry supply from Mexico and inflationary pressures [5][18] - Adjusted EBITDA for Q3 2022 was $31.6 million, a 5% increase compared to the prior year [21] - Net income for Q3 2022 was $18.4 million or $0.26 per diluted share, essentially flat with the prior year [21] Business Line Data and Key Metrics Changes - Marketing and Distribution segment net sales increased by 29% to $308.9 million, with adjusted EBITDA rising 18% to $15.5 million [23] - International Farming segment sales decreased by 2% to $73.5 million, primarily due to lower third-party service revenue [25] - The new Blueberry segment generated net sales of $0.3 million with an adjusted EBITDA loss of $0.2 million [26] Market Data and Key Metrics Changes - Mexican avocado volume was down over 40% in Q3 2022, with only about 1/3 of U.S. distributed volume being Mexican fruit [9] - Despite lower volumes, there was over 25% volume growth in other source markets, including California and Peru [9] - Year-to-date pricing for avocados was approximately 45% higher compared to the prior year, reflecting strong demand despite food inflation [12] Company Strategy and Development Direction - The company is focused on vertical integration, with approximately 25% of total distributed volume in Q3 coming from owned production in Peru [15] - A long-term third-party logistics partnership with NatureSweet was announced to enhance operational efficiencies and capacity utilization at the Laredo facility [7][8] - The company aims to maintain a consistent year-round supply to support long-term consumption growth and market development [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the upcoming production from the Jalisco growing region, which presents long-term growth opportunities [10] - The company anticipates fourth-quarter volumes to increase sequentially due to ample Peruvian product and a larger Mexican crop expected [30] - Management acknowledged ongoing inflationary pressures affecting costs but remains confident in the resilient demand for avocados [31] Other Important Information - Cash and cash equivalents were $43.8 million as of July 31, 2022, down from $84.5 million as of October 31, 2021, reflecting seasonal operating cash flow dynamics [27] - Capital expenditures for the first nine months of fiscal 2022 were $42 million, with expectations to come in below the previous year's total [29] Q&A Session Summary Question: Clarification on fourth-quarter volume expectations - Management indicated that fourth-quarter volumes are expected to be higher sequentially but comparable year-over-year, with no specific numbers provided [33] Question: Exposure of International Farming business to market pricing - Management noted that fixed volume, fixed price contracts were established for the season, with some pressure on market pricing due to increased Mexican fruit supply [34][35] Question: Utilization of Laredo facility capacity - Management estimated that the NatureSweet partnership would utilize about 20% to 25% of the facility's capacity initially, with plans to ramp up over time [40] Question: Volume growth expectations for next fiscal year - Management expects a larger Mexican crop next year, which will drive volume growth, but the impact on revenue will depend on average selling prices [44][45] Question: Returns on blueberry investments compared to avocados - Management confirmed that blueberries have a quicker return on investment compared to avocados, with expectations of slightly higher returns due to different marketing dynamics [46][48] Question: Funding for blueberry capital costs - Management indicated that most funding for blueberry investments would come from operating cash flows within the joint venture, with minimal cash out from the business [50]