Financial Data and Key Metrics Changes - Total revenue for Q1 2022 increased by 25% to $216.6 million compared to $173.2 million in the same period last year, driven by a 50% increase in average per unit avocado sales prices due to lower industry supply from Mexico and inflationary pressures [15][16] - Net loss for Q1 2022 was $13.4 million or $0.19 per diluted share, compared to net income of $2.2 million or $0.03 per diluted share for the same period last year [21] - Adjusted EBITDA was negative $10.4 million for Q1 2022, compared to a positive $12.5 million for the same period last year, primarily due to lower gross margin and higher SG&A costs [21] Business Line Data and Key Metrics Changes - Marketing & Distribution segment net sales increased by 25% to $212.3 million for the quarter, but segment adjusted EBITDA was negative $7.7 million due to similar drivers affecting consolidated results [21] - International Farming segment net sales increased by 19% to $4.3 million, driven by higher third-party service revenues, but segment adjusted EBITDA was negative $2.7 million due to higher costs associated with strategic initiatives [22] Market Data and Key Metrics Changes - Industry supply was negatively impacted by a smaller Mexican harvest, with estimates indicating that Mexican supply to the U.S. market was approximately 10% lower than the prior year [16] - Approximately 97% of U.S. distributed volume was Mexican fruit in Q1 2022, highlighting the reliance on Mexican supply [16] Company Strategy and Development Direction - The company is focused on long-term growth by investing in its own production to ensure year-round global sourcing, which is key to maintaining organic growth [13] - The implementation of a new ERP system is seen as a necessary step to scale the business and enhance operational visibility, despite the challenges faced during its implementation [9][10] Management's Comments on Operating Environment and Future Outlook - Management believes the worst of the ERP implementation challenges is behind them, and they are focused on improving efficiency and resolving remaining issues [30] - The company expects Mexico industry volumes to remain lower than the prior year during Q2, with pricing expected to be steady to slightly higher [26] Other Important Information - Cash and cash equivalents were $25.3 million as of January 31, 2022, down from $84.5 million as of October 31, 2021, with net cash used in operating activities increasing to $41.4 million [23] - Capital expenditures for Q1 2022 were $20.9 million, focused on farmland purchases and improvements in Peru and Guatemala [24] Q&A Session Summary Question: What lingering impacts should be expected from ERP challenges? - Management indicated that the issues causing gross margin loss have been largely resolved, but some costs related to outside consultants will continue, tapering off in Q2 [30] Question: Will February's per box margins remain stable? - Management noted that February margins returned to historical levels, but future margins may be impacted by volume challenges due to the current Mexico crop situation [33][34] Question: When will the current Mexico crop supply issues be resolved? - Management expects to see some relief from Peru's crop starting around April, but substantial impacts may not be felt until Q3 [38][39] Question: What is the demand outlook in the domestic market? - Management confirmed that domestic demand remains strong, with increased pricing observed, indicating a healthy market despite supply challenges [41][42] Question: Can you quantify customer wins and their impact on volume? - Management mentioned securing major retailers during the Mexico shutdown, which could contribute positively to volume moving forward [47]

Financial Performance - Net sales increased by $43.4 million or 25% in the three months ended January 31, 2022, compared to the same period last year, driven by a 50% increase in average per-unit avocado sales prices [71]. - Gross profit decreased by 98% to $0.5 million in the three months ended January 31, 2022, primarily due to operational challenges from the ERP implementation [75]. - The company reported a net loss of $13.4 million for the three months ended January 31, 2022, compared to a net income of $2.2 million for the same period last year [69]. - Total net sales for the three months ended January 31, 2022, were $216.6 million, an increase of $43.4 million or 25% compared to $173.2 million in the same period last year [88]. - Adjusted EBITDA for the Marketing and Distribution segment was $(7.7) million for the three months ended January 31, 2022, down from $13.7 million in the same period last year, reflecting a decrease of $21.4 million [89]. - The total adjusted EBITDA for the reportable segments was $(10.4) million for the three months ended January 31, 2022, compared to $12.5 million in the same period last year, a decrease of $22.9 million [89]. Expenses and Costs - Selling, general and administrative expenses rose by $4.1 million or 28% in the three months ended January 31, 2022, mainly due to costs associated with the ERP system implementation [76]. - The effective tax rate for the three months ended January 31, 2022 was 15.7%, compared to 76.8% for the same period last year, attributed to pre-tax losses recorded during the period [84]. - Equity method income decreased by $0.7 million or 30% in the three months ended January 31, 2022, due to lower earnings from Moruga [78]. - Other income increased by $1.6 million in the three months ended January 31, 2022, primarily due to gains on interest rate swaps and foreign currency transactions [81]. Cash Flow and Liquidity - Net cash used in operating activities was $(41.4) million for the three months ended January 31, 2022, an increase of $31.7 million compared to $(9.7) million in the same period last year [94]. - As of January 31, 2022, cash and cash equivalents were $25.3 million, down from $84.5 million as of October 31, 2021 [100]. - Undiscounted cash liabilities for operating leases were $73.6 million as of January 31, 2022 [104]. Capital Expenditures and Investments - Capital expenditures for the three months ended January 31, 2022, were $20.9 million, compared to $22.4 million in the same period last year [95]. - The company has various capital projects in progress for farming expansion and facility improvements, with expected capital expenditures similar to recent fiscal years [103]. Segment Performance - The International Farming segment generated $4.3 million in net sales for the three months ended January 31, 2022, up from $3.6 million in the same period last year [71]. - Net sales in the International Farming segment increased by $0.7 million or 19% to $4.3 million for the three months ended January 31, 2022, driven by higher third-party service revenue [91]. Operational Challenges - The company faced a significant reliance on third-party fruit and packaged fruit, which have higher price points, due to inventory management problems during the ERP implementation [75]. - The company’s financial reporting currency is the U.S. dollar, with a significant portion of avocado purchases denominated in Mexican Pesos and growing costs in Peruvian Soles [67]. - The consolidated leverage ratio as of January 31, 2022, was 2.47 to 1.00, in compliance with the required maximum of 2.75 to 1.00 [102].

Mission Produce, Inc. (NASDAQ:AVO) Q4 2021 Earnings Conference Call December 22, 2021 5:00 PM ET Company Participants Jeff Sonnek - IR, ICR Steve Barnard - CEO Bryan Giles - CFO Conference Call Participants Benjamin Bienvenu - Stephens Inc. Thomas Palmer - JPMorgan Gerard Sweeney - ROTH Capital Partners Operator Good afternoon, and welcome to the Mission Produce Fiscal Fourth Quarter 2021 Conference Call. All participants will be in a listen-only mode. After today’s presentation, there will be an opportuni ...

Mission Produce, Inc. (NASDAQ:AVO) Q3 2021 Results Conference Call September 13, 2021 5:00 PM ET Company Participants Jeff Sonnek - IR, ICR Steve Barnard - CEO Bryan Giles - CFO Conference Call Participants Bryan Spillane - Bank of America Tom Palmer - JP Morgan Ben Bienvenu - Stephens Operator Good afternoon, and welcome to the Mission Produce Fiscal Third Quarter 2021 Conference Call. All participants will be in a listen-only mode. After today’s presentation, there will be an opportunity to ask questions. ...

Mission Produce, Inc. (NASDAQ:AVO) Q2 2021 Earnings Conference Call June 10, 2021 5:00 PM ET Company Participants Jeff Sonnek - Investor Relations, ICR Steve Barnard - President and Chief Executive Officer Bryan Giles - Chief Financial Officer Mike Browne - Chief Operating Officer Conference Call Participants Bryan Spillane - Bank of America Tom Palmer - J.P. Morgan Gerry Sweeney - ROTH Capital Operator Good afternoon, and welcome to the Mission Produce Fiscal Second Quarter 2021 Conference Call. All parti ...

Financial Data and Key Metrics Changes - The company reported total revenue of $173.2 million for Q1 2021, a 12% decrease from $197.5 million in the same period last year, driven by an 18% decrease in average per-unit sales prices, partially offset by a 7% increase in volume [16][17] - Adjusted EBITDA increased by 49% to $12.5 million compared to $8.4 million for the same period last year [19] - Net income for Q1 2021 was $2.2 million or $0.03 per diluted share, compared to $1.4 million or $0.02 per diluted share for the same period last year [19] Business Line Data and Key Metrics Changes - The Marketing and Distribution segment net sales decreased 13% to $169.6 million, with lower average pricing offset by volume growth [20] - The International Farming segment sales increased 27% to $3.8 million, driven by higher blueberry packing and cold storage service revenues [21] Market Data and Key Metrics Changes - Consolidated volume for the second quarter-to-date period through the end of February is trending up approximately 14% versus the prior year [25] - Sales prices for the second quarter-to-date period are trending down approximately 20% versus the prior year [25] Company Strategy and Development Direction - The company is constructing a new distribution center in Laredo, Texas, scheduled for completion in Q3 2021, which will enhance distribution capabilities in North America [8][10] - The company aims to replicate its year-round sourcing strategy for avocados globally and is expanding into mangoes, leveraging existing relationships and assets [12][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in supply stability despite lower California avocado crop forecasts, citing backup plans in Peru [31][32] - The company anticipates total annual volume growth in the high single-digit range based on current assessments of industry crop sizes [27] Other Important Information - Cash and cash equivalents were $91.1 million as of January 31, 2021, down from $124 million as of October 31, 2020 [23] - Capital expenditures for Q1 2021 were $22.4 million, focused on the new distribution center and land improvements in Peru and Guatemala [24] Q&A Session Summary Question: What is the confidence level regarding the California avocado crop forecast? - Management acknowledged a lower crop forecast due to weather events but emphasized backup plans in Peru to ensure supply stability [31][32] Question: What is the impact of the repealed agrarian promotion law in Peru? - Management indicated that while it may slow future investments from new entrants, it benefits the company as they are already established and harvesting significant volumes [34] Question: How is profit per pound trending in the Distribution business for the second quarter? - Management noted that it is early to determine final figures, but margins tightened towards the end of Q1, with expectations for stabilization as California harvests begin [38] Question: What is the current supply picture and when will sourcing switch to other regions? - Management stated that Mexico will continue to harvest at lower rates, with California expected to fill the gap until Peru's crop comes online [40] Question: What is the status of the Laredo facility after recent storms? - Management confirmed that the Laredo facility was unaffected and remains on schedule for a soft opening [44] Question: How is foodservice demand recovering? - Management reported that foodservice business has increased in volume due to takeout trends, although some segments are still recovering [46] Question: What is driving the pricing dynamics in the current market? - Management explained that their customer base is more retail-focused, which helps mitigate the impact of lower prices seen in the broader market [50]