Financial Performance - Total net sales for fiscal year 2024 increased by 11.4% to $661.5 million, with the Grown segment net sales rising by 13.3% to $597.6 million[5]. - Net income from continuing operations for the fourth quarter was $6.8 million, or $0.38 per diluted share, compared to $5.1 million, or $0.26 per diluted share, for the prior year[5]. - Adjusted net income for the fourth quarter was $18.7 million, or $1.05 per diluted share, up from $11.5 million, or $0.64 per diluted share, in the prior year[5]. - Adjusted EBITDA for the fourth quarter was $37.0 million, compared to $33.2 million for the prior year[5]. - The company’s operating income for the year ended October 31, 2024, was $16,723 thousand, compared to $12,208 thousand for the previous year, showing a significant improvement[27]. - Adjusted net income for the year ended October 31, 2024, was $18,678 million, compared to $11,466 million for the year ended October 31, 2023, reflecting a year-over-year increase of approximately 63.5%[36]. - The diluted earnings per share (EPS) from continuing operations for the year ended October 31, 2024, was $0.38, up from $0.26 in 2023, indicating a 46.2% increase[32]. - EBITDA for the year ended October 31, 2024, was $21,234 million, a decrease from $25,697 million in 2023, representing a decline of approximately 17.5%[36]. - Adjusted EBITDA for the year ended October 31, 2024, increased to $37,006 million from $33,191 million in 2023, marking an increase of about 11.5%[36]. Segment Performance - The Grown segment's gross profit increased by 24.1% to $14.3 million, driven by a 10% increase in avocado volume and a 16% rise in average avocado prices[13]. - The Prepared segment's gross profit declined to $2.0 million from $2.7 million in the prior year quarter, with gross margin decreasing from 16.1% to 12.9%[14]. - The Prepared segment reported net sales of $15,334 thousand for the three months ended October 31, 2024, down from $16,927 thousand in the same period of 2023[29]. Cash and Debt Management - The company ended the fiscal year with cash and cash equivalents of $57.0 million and total debt of $5.1 million[15]. - The company’s cash and cash equivalents increased significantly to $57,031 thousand as of October 31, 2024, compared to $2,091 thousand in 2023[26]. - Total current liabilities decreased to $73,205 thousand as of October 31, 2024, from $81,746 thousand in 2023, indicating improved liquidity[26]. - The strategic divestiture of the Fresh Cut business was completed on August 15, 2024, enhancing core operations and reducing debt[6]. Operational Changes and Costs - Selling, general and administrative (SG&A) expenses for the fourth quarter totaled $13.0 million, or 7.7% of net sales, compared to $9.3 million, or 6.5% of net sales, for the same period last year[10]. - The company incurred $0.9 million in severance and other costs related to management departures during the year ended October 31, 2024[31]. - The company incurred $1.0 million in professional fees related to Mexican tax matters for the year ended October 31, 2024, down from $2.4 million in 2023[34]. - Restructuring costs related to consulting and management recruiting for the year ended October 31, 2024, totaled $967 million, down from $3,930 million in 2023[36]. Future Outlook - The company anticipates double-digit growth in avocado and guacamole sales volumes for fiscal year 2025 compared to fiscal year 2024[6]. - The company is focusing on developing new guacamole products to meet changing consumer preferences and enhance existing offerings[25]. Current Assets and Losses - Current assets increased to $158,579 thousand as of October 31, 2024, from $133,370 thousand in 2023, primarily driven by higher cash and accounts receivable[26]. - The company reported a net loss attributable to Calavo Growers, Inc. of $139 thousand for the three months ended October 31, 2024, compared to a net loss of $7,907 thousand for the same period in 2023[27]. - For the three months ended October 31, 2024, Calavo Growers, Inc. reported a net loss from continuing operations of $(2,450) million, an improvement from a net loss of $(4,686) million in the same period of 2023[32]. - The company recognized a non-cash loss of $0.1 million from unconsolidated entities for the three months ended October 31, 2024, compared to a loss of $0.5 million in the same period of 2023[36]. - Foreign currency remeasurement losses for the twelve months ended October 31, 2024, were $5.8 million, compared to a gain of $1.4 million in the previous year[34].

Core Insights - Calavo Growers, Inc. reported fourth-quarter fiscal 2024 results with net sales exceeding estimates but adjusted earnings falling short, indicating a mixed performance [1][3][4]. Financial Performance - Adjusted earnings were 5 cents per share, missing the Zacks Consensus Estimate of 25 cents, but improved from a loss of 2 cents per share in the prior year [3]. - Net sales reached $170.0 million, surpassing the Zacks Consensus Estimate of $166 million, and increased by 19.5% year-over-year [4]. - Gross profit was $16.3 million, up 14% from $14.3 million in the previous year, driven by stronger avocado margins, although gross margin contracted by 40 basis points to 9.6% [5]. - SG&A expenses rose to $13 million from $9.3 million in the prior year, with a 120 basis point increase as a percentage of net sales to 7.7% [6]. Segment Performance - The Grown segment reported net sales of $154.6 million, a 23.4% increase year-over-year, with gross profit rising by 24.1% to $14.3 million [7]. - In the Prepared segment, net sales were $15.3 million, down 9.4% from the previous year, with gross profit decreasing to $2 million due to higher fruit costs [8]. Financial Health - At the end of the quarter, Calavo Growers had cash and cash equivalents of $57 million, liquidity of $108.8 million, and shareholders' equity of $201.8 million, with no outstanding borrowings [9]. Future Outlook - The company anticipates double-digit growth in avocado and guacamole sales volumes for fiscal 2025, supported by strategic initiatives and new customer acquisitions [10]. - In the Grown segment, steady avocado performance is expected, while improved pricing in tomatoes is projected to deliver double-digit growth in gross profit [11]. - The Prepared segment aims to expand its guacamole business with new retail products, expecting double-digit sales volume growth and higher gross margins [12].

Workforce and Employee Benefits - Calavo has 2,106 employees as of October 31, 2024, with 317 in the US and 1,789 in Mexico [49] - The company provides competitive compensation, including health and retirement benefits, and offers training and development opportunities through platforms like LinkedIn Learning [51][55] Production and Supply Chain Risks - The company's guacamole production capacity is consolidated in a single manufacturing plant in Michoacán, Mexico, making it vulnerable to production disruptions [77] - The company's supply chain is susceptible to disruptions from weather, climate change, natural disasters, and other factors, which could increase costs and limit product availability [65] - The company's avocado supply in the U.S. is dependent on long-term relationships with growers in California and Mexico [84] Financial Risks and Market Sensitivity - Calavo's business is sensitive to changes in market prices of avocados, agricultural products, and raw materials such as fuel and packaging [10] - Calavo's credit agreement with Wells Fargo Bank bears interest at a variable rate, which could increase costs as interest rates rise [66] - Dividend payments are not guaranteed and may be reduced or discontinued based on operational results, cash requirements, and financial conditions [85][86] - The company's ability to pay dividends is restricted by its Credit Agreement and may be impacted by substantial indebtedness [87] - Foreign currency remeasurement losses for fiscal 2024 were $5.8 million, with gains of $1.4 million in fiscal 2023 [262] Operational and Strategic Risks - Calavo faces risks from potential labor disputes, wage inflation, and dependence on key personnel and large customers [10] - Calavo's transition following the divestiture of its Fresh Cut business involves operational, strategic, and financial risks, including potential revenue fluctuations and challenges in managing fixed costs [63] - The company's business is impacted by seasonality and weather conditions, which can affect market conditions and supply chain stability [10] - Walmart accounted for approximately 12% of the company's total net sales in 2024 [83] Cybersecurity and Information Risks - Calavo faces risks from potential cyber-attacks, including ransomware, which could compromise confidential information and disrupt operations [81] Environmental, Social, and Governance (ESG) Risks - ESG-related regulations and stakeholder expectations may increase management time and administrative expenses [88] - Climate change may negatively affect the company's business and operations due to potential impacts on global temperatures and weather patterns [99] Leadership and Talent Risks - The company faces risks from executive leadership transitions and potential difficulties in attracting and retaining qualified personnel [91][94] Commodity and Inflation Risks - Commodity price volatility, including fruits, ingredients, and packaging materials, could lead to increased costs or supply disruptions [260] - Inflation may increase costs, and selling price increases may not fully offset these cost increases if consumer purchasing power declines [261]

Core Viewpoint - Calavo Growers, Inc. reported strong financial results for fiscal year 2024, with significant growth in net sales and net income, driven by a strategic focus on core avocado and guacamole operations following the divestiture of the Fresh Cut business [6][7][9]. Fiscal Year 2024 Financial Overview - Total net sales increased by 11.4% to $661.5 million compared to the previous year [7]. - Net income from continuing operations rose approximately 36% to $6.8 million, or $0.38 per diluted share [7]. - Adjusted net income increased to $18.7 million, or $1.05 per diluted share, up from $11.5 million, or $0.64 per diluted share in the prior year [7]. - Adjusted EBITDA grew by approximately 11% to $37.0 million [7]. Fourth Quarter Financial Overview - Total net sales for the fourth quarter were $170.0 million, a 19.5% increase from $142.2 million in the same quarter of the previous year [9]. - Net loss from continuing operations improved by approximately 48% to $2.5 million, or $(0.14) per diluted share [12]. - Adjusted net income for the fourth quarter was $0.8 million, or $0.05 per diluted share, compared to an adjusted net loss of $0.4 million in the prior year quarter [12]. - Total gross profit for the fourth quarter was $16.3 million, representing 9.6% of net sales [10]. Segment Performance Grown Segment - Grown segment net sales increased by 23.4% to $154.6 million, with gross profit rising to $14.3 million, driven by a 10% increase in avocado volume and higher margins [13]. - Average avocado prices increased by approximately 16% compared to the same period last year [9]. Prepared Segment - Prepared segment net sales decreased by 9.4% to $15.3 million, with gross profit declining to $2.0 million due to higher fruit costs [14]. - The company anticipates double-digit sales volume growth in the guacamole business for fiscal year 2025 [15]. Balance Sheet and Liquidity - As of October 31, 2024, the company had cash and cash equivalents of $57.0 million and total debt of $5.1 million [16]. - The company ended the year with $108.8 million of available liquidity and no borrowings under its credit facility [16].

Core Viewpoint - Calavo Growers, Inc. has declared a quarterly cash dividend of $0.20 per share, reflecting the company's commitment to returning value to shareholders [1]. Company Overview - Calavo Growers, Inc. is a global leader in the processing and distribution of avocados, tomatoes, papayas, and guacamole, with a strong market presence [2]. - The company was founded in 1924 and has a culture of innovation, sustainable practices, and market growth [2]. - Calavo's products are marketed under the Calavo brand, proprietary sub-brands, and various private label and store brands [2]. - The company serves a diverse range of customers, including retail grocery, foodservice, club stores, mass merchandisers, food distributors, and wholesalers worldwide [2]. - Calavo is headquartered in Santa Paula, California, with facilities throughout the U.S. and Mexico [2].

SANTA PAULA, Calif., Dec. 16, 2024 (GLOBE NEWSWIRE) -- Calavo Growers, Inc. (Nasdaq-GS: CVGW), a global leader in the processing and distribution of avocados, tomatoes, papayas, and guacamole, today announced that it plans to release financial results for the fiscal fourth quarter and fiscal year ended October 31, 2024 and file its Form 10-K for the 2024 fiscal year after the market closes on Tuesday, January 14, 2025. As an “accelerated filer,” the Company is allowed up to 75 days following its fiscal year ...

SANTA PAULA, Calif., Nov. 15, 2024 (GLOBE NEWSWIRE) -- Calavo Growers, Inc. (Nasdaq-GS: CVGW), a global leader in the processing and distribution of avocados, tomatoes, papayas, and guacamole, today announced that James Snyder will become the Company’s new Chief Financial Officer effective December 2. Shawn Munsell, Calavo’s current CFO will be departing the Company on November 29 to pursue a new opportunity. He will serve as a consultant to the Company in the month of December to ensure a smooth transition ...

Calavo Growers (CVGW) came out with quarterly earnings of $0.57 per share, beating the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.41 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 58.33%. A quarter ago, it was expected that this avocado grower would post earnings of $0.31 per share when it actually produced earnings of $0.50, delivering a surprise of 61.29%. Over the last four quarters, the ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended July 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | --- | --- | --- | |-------------------------------------------------------------------------|---------------------------------------------------------------------------------------- ...

Exhibit 99.1 Calavo Growers, Inc. Announces Third Quarter 2024 Financial Results, Dividend Increase SANTA PAULA, Calif., Sep. 9, 2024—Calavo Growers, Inc. (Nasdaq-GS: CVGW), A global leader in the processing and distribution of avocados, tomatoes, papayas and guacamole today reported its financial results for the fiscal third quarter ended July 31, 2024. Third Quarter Financial Overview Introductory Note: In the first quarter of 2024, we concluded that the Fresh Cut (formerly RFG) business meets the require ...