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) __ ...

Mission Produce, Inc. (NASDAQ:AVO) Q1 2023 Earnings Conference Call March 9, 2023 5:00 PM ET Company Participants Jeff Sonnek - ICR, IR Bryan Giles - CFO Steve Barnard - CEO Conference Call Participants Gerry Sweeney - Roth Capital Tom Palmer - JPMorgan Bryan Spillane - Bank of America Operator Good afternoon and welcome to the Mission Produce Fiscal First Quarter 2023 Conference Call. [Operator Instructions] Please also note today's event is being recorded. At this time, I'd like to turn the conference cal ...

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 January 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | |-----------------------------------------------------------------------------------------|-------------------------------------------------| | | ...

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]

Mission Produce, Inc. (NASDAQ:AVO) Q3 2022 Results Conference Call September 8, 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 Gerry Sweeney - ROTH Capital Operator Good afternoon, and welcome to the Mission Produce Fiscal Third 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 call ove ...

Financial Performance - Net sales increased by $66.4 million or 27% in the three months ended July 31, 2022, and by $153.2 million or 23% in the nine months ended July 31, 2022, compared to the same periods last year[94]. - Total net sales for the three months ended July 31, 2022, were $313.2 million, compared to $246.8 million for the same period in 2021, reflecting a significant increase[116]. - Total segment sales for the nine months ended July 31, 2022, reached $870.1 million, compared to $715.8 million in the same period last year, indicating strong growth[116]. Sales and Pricing - Average per-unit avocado sales prices increased by 42% and 45% in the three and nine months ended July 31, 2022, respectively, due to lower industry supply from Mexico and inflationary pressures[94]. - Net sales in the Marketing and Distribution segment rose by $69.3 million or 29% in the three months ended July 31, 2022, compared to the same period last year, totaling $306.3 million[118]. - The Marketing and Distribution segment generated net sales of $308.9 million in the three months ended July 31, 2022, compared to $239.6 million in the same period last year[94]. Volume and Supply - Avocado volume sold decreased by 11% and 16% for the three and nine months ended July 31, 2022, respectively, primarily driven by lower Mexican supply[94]. - The International Farming segment reported net sales of $4.0 million in the three months ended July 31, 2022, down from $7.2 million in the same period last year[94]. - Total segment sales in the International Farming segment decreased by $1.5 million or 2% in the three months ended July 31, 2022, primarily due to lower third-party service revenue[120]. Profitability - Gross profit for the three months ended July 31, 2022, increased by $1.7 million or 4% to $42.6 million, with a gross profit percentage of 13.6%[98]. - Gross profit for the nine months ended July 31, 2022, decreased by $27.8 million or 31% to $62.9 million, with a gross profit percentage of 7.8%[99]. - Operating income for the three months ended July 31, 2022, was $22.0 million, a decrease from $23.7 million in the same period last year[92]. Expenses - Selling, general and administrative expenses increased by $3.4 million or 20% in the three months ended July 31, 2022, compared to the same period last year, primarily due to higher employee-related costs and noncapitalizable costs associated with the new ERP system[100]. - Interest expense rose by $0.5 million or 50% in the three months ended July 31, 2022, and by $0.8 million or 29.6% in the nine months ended July 31, 2022, due to higher interest rates on outstanding debt[103]. - Other expense increased by $0.4 million or 80% in the three months ended July 31, 2022, primarily due to higher losses on foreign currency transactions[108]. Taxation - The provision for income taxes decreased by $0.5 million or 8% in the three months ended July 31, 2022, primarily due to lower pre-tax income[112]. - The effective tax rate for the three months ended July 31, 2022, was 23.2%, down from 24.3% in the same period last year[112]. Cash Flow and Capital Expenditures - Net cash used in operating activities was $3.0 million for the nine months ended July 31, 2022, compared to cash provided of $15.2 million in the same period last year[124]. - Capital expenditures in the nine months ended July 31, 2022, were $42.0 million, focused on farmland purchases and orchard development in Peru and Guatemala[126]. - The company intends to fund capital projects for farming expansion and facility improvements through operating cash flow and cash equivalents[134]. Debt and Leverage - The company utilized a revolving credit facility for short-term working capital, with borrowings of $40.0 million and repayments of the same amount in the nine months ended July 31, 2022[128]. - As of July 31, 2022, the consolidated leverage ratio was 2.08 to 1.00, and the fixed charge coverage ratio was 1.94 to 1.00, indicating compliance with financial covenants[133]. - The consolidated total net leverage ratio was increased to 3.75:1.0 for the fiscal quarter ending April 30, 2022, and to 3.25:1.0 for the quarter ending July 31, 2022[132]. Business Developments - The implementation of a new ERP system encountered significant challenges, impacting profitability and financial results in the first quarter of 2022[87]. - The company consolidated Moruga as a variable interest entity on May 1, 2022, which affected the financial results and reportable segments[84]. - The Moruga Blueberry Project, approved on May 1, 2022, involves an investment of approximately $50 million to farm 600 additional hectares of blueberries in Peru, expected to start in mid-to-late fiscal year 2023[136].

Mission Produce, Inc. (NASDAQ:AVO) Q2 2022 Earnings Conference Call June 8, 2022 5:00 PM ET Company Participants Jeff Sonnek – Investor Relations, ICR Steve Barnard – Chief Executive Officer Bryan Giles – Chief Financial Officer Conference Call Participants Jim Salera – Stephens Tom Palmer – JPMorgan Bryan Spillane – Bank of America Gerry Sweeney – Roth Capital Operator Good afternoon and welcome to the Mission Produce Fiscal Second Quarter 2022 Conference Call. All participants will be in a listen-only mod ...

Financial Performance - Net sales increased by $43.4 million or 18% in the three months ended April 30, 2022, and by $86.8 million or 21% in the six months ended April 30, 2022, compared to the same periods last year [76]. - Gross profit decreased by $7.3 million or 27% in the three months ended April 30, 2022, and by $29.5 million or 59% in the six months ended April 30, 2022, compared to the same periods last year [81][82]. - The operating income for the three months ended April 30, 2022, was $1.1 million, a decrease from $10.8 million in the same period last year [74]. - The net income for the three months ended April 30, 2022, was $2.4 million, down from $7.4 million in the same period last year [74]. - For the six months ended April 30, 2022, the company reported a net loss of $11.0 million compared to a net income of $9.6 million for the same period in 2021 [104]. Sales and Revenue - Average per-unit avocado sales prices increased by 44% and 46% in the three and six months ended April 30, 2022, respectively, due to lower industry supply from Mexico and inflationary pressures [76]. - Net sales in the Marketing and Distribution segment increased by $41.3 million or 18% in the three months ended April 30, 2022, compared to the same period last year [99]. - Net sales in the International Farming segment increased by $2.1 million or 91% in the three months ended April 30, 2022, compared to the same period last year, due to higher service revenue and mango harvest volumes [101]. - Total net sales for the six months ended April 30, 2022 were $494.7 million, compared to $407.9 million in the same period last year [97]. Expenses and Costs - Selling, general and administrative expenses increased by $2.4 million or 15% in the three months ended April 30, 2022, and by $6.5 million or 21% in the six months ended April 30, 2022, compared to the same periods last year [83][84]. - Interest expense increased by $0.3 million or 37.5% in the three months ended April 30, 2022, and by $0.3 million or 17.6% in the six months ended April 30, 2022, compared to the same periods last year [85]. - Adjusted EBITDA for the Marketing and Distribution segment decreased by $4.5 million or 28% in the three months ended April 30, 2022, primarily due to lower avocado volume sold and higher expenses [99]. - Adjusted EBITDA for the International Farming segment was $(2.5) million in the three months ended April 30, 2022, compared to $0.1 million in the same period last year, primarily due to early-stage mango farm costs [101]. Tax and Income - The provision for income taxes decreased by $1.3 million or 62% in the three months ended April 30, 2022, primarily due to lower pre-tax income [93]. - The effective tax rate for the six months ended April 30, 2022 was 13.4%, a decrease from 49.5% in the same period last year [93]. Cash Flow and Investments - Net cash used in operating activities increased by $16.8 million for the six months ended April 30, 2022, reflecting a net loss, partially offset by favorable changes in working capital [103]. - Net cash used in operating activities was $37.0 million, an increase from $20.2 million in the prior year [104]. - The company reported net cash used in investing activities of $25.8 million, down from $45.0 million in the previous year [105]. - As of April 30, 2022, cash and cash equivalents were $21.4 million, a decrease from $84.5 million as of October 31, 2021 [110]. Capital Expenditures and Financing - Capital expenditures for the six months ended April 30, 2022, were primarily focused on purchasing farmland in Peru and land improvements in Peru and Guatemala [106]. - The company has a revolving credit facility with a maximum borrowing capacity of $100 million, with no outstanding borrowings as of April 30, 2022 [111]. - The consolidated leverage ratio as of April 30, 2022, was 2.56 to 1.00, in compliance with the required maximum of 3.75 to 1.00 [113]. - The company made capital contributions to joint ventures to support farmland purchases in Colombia and a new distribution facility in southern China [107]. - The company expects to fund various capital projects through operating cash flow and cash equivalents, with no significant deviation from previous fiscal years' expenditures [114]. - As of April 30, 2022, remaining maturities on term loans and notes amounted to $159.9 million [114]. Other Income - Other income increased to $2.9 million in the three months ended April 30, 2022, compared to an expense of $0.3 million in the same period last year, driven by gains on interest rate swaps and lower foreign currency transaction losses [90]. - Equity method income for the three months ended April 30, 2022 was $0.3 million, a recovery from a loss of $0.2 million in the same period last year, primarily due to higher earnings from HAC [88]. ERP System Improvement - The company continues to work with a third-party implementation firm to improve the ERP system, which had previously impacted profitability and financial results [70].