SANTA PAULA, Calif., Sept. 09, 2024 (GLOBE NEWSWIRE) -- 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 requirements to be classified as held for sale and discontinued operations. As a re ...

SANTA PAULA, Calif., Aug. 26, 2024 (GLOBE NEWSWIRE) -- Calavo Growers, Inc. (Nasdaq-GS: CVGW), a global leader in the avocado industry, today announced that it will release financial results for the fiscal third quarter ended July 31, 2024, after the market closes on Monday, September 9. About Calavo Growers, Inc. Calavo Growers, Inc. (Nasdaq-GS: CVGW) is a global leader in high quality produce, including avocados, tomatoes and papayas. Calavo products are sold under the trusted Calavo brand name, proprieta ...

Calavo Growers (CVGW) has been beaten down lately with too much selling pressure. While the stock has lost 20% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier. We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of p ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) Q2 2024 financial statements show improved net income and positive operating cash flow for continuing operations, following the Fresh Cut business reclassification Consolidated Balance Sheet Highlights (in thousands) | Account | April 30, 2024 | October 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $4,273 | $2,091 | | Total current assets | $262,344 | $133,370 | | Current assets held for sale | $138,927 | $37,533 | | Total assets | $411,369 | $386,854 | | Total current liabilities | $133,182 | $81,746 | | Current liabilities held for sale | $53,261 | $29,911 | | Total shareholders' equity | $207,331 | $210,229 | Consolidated Statement of Operations Highlights (in thousands, except per share amounts) | Metric | Q2 2024 | Q2 2023 | Six Months 2024 | Six Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $184,383 | $158,279 | $311,989 | $291,042 | | Gross profit | $20,357 | $15,671 | $32,825 | $28,756 | | Operating income | $7,135 | $1,924 | $5,757 | $1,319 | | Net income from continuing operations | $6,507 | $1,447 | $3,933 | $1,002 | | Net loss from discontinued operations | $(408) | $(5,407) | $(4,091) | $(7,757) | | Net income (loss) attributable to Calavo | $6,062 | $(3,995) | $(205) | $(7,063) | | Diluted EPS (Continuing Operations) | $0.36 | $0.08 | $0.22 | $0.04 | Consolidated Statement of Cash Flows Highlights (Six months ended April 30, in thousands) | Cash Flow Category | 2024 | 2023 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $2,150 | $(3,778) | | Net cash used in investing activities | $(2,377) | $(8,461) | | Net cash provided by financing activities | $1,648 | $13,303 | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes detail the Fresh Cut business reclassification, an FCPA investigation, a major Mexican tax assessment, and ongoing related party transactions - The company is in non-binding negotiations to sell its Fresh Cut business, now classified as held for sale and discontinued operations, with transaction completion targeted for **Q3 fiscal 2024**[20](index=20&type=chunk)[21](index=21&type=chunk)[78](index=78&type=chunk) - An internal investigation identified potential issues under the Foreign Corrupt Practices Act (FCPA) related to Mexico operations, voluntarily disclosed to the SEC and DOJ, with no estimable financial impact currently[53](index=53&type=chunk)[55](index=55&type=chunk) - The company is contesting a 2013 tax assessment from Mexico's SAT, totaling approximately **$181.1 million USD** as of **April 30, 2024**, with an **$11 million** provision recorded in fiscal 2021 deemed appropriate by management[58](index=58&type=chunk)[65](index=65&type=chunk) Results of Discontinued Operations (Fresh Cut Business, in thousands) | Metric | Q2 2024 | Q2 2023 | Six Months 2024 | Six Months 2023 | | :--- | :--- | :--- | :--- | :--- | | Net sales | $83,959 | $86,410 | $170,372 | $179,851 | | Gross profit (loss) | $3,810 | $(634) | $4,641 | $713 | | Net loss from discontinued operations | $(408) | $(5,407) | $(4,091) | $(7,757) | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights strong Q2 2024 performance in continuing operations, driven by the Grown segment, while addressing the Fresh Cut business sale and FCPA investigation expenses [Results of Operations](index=40&type=section&id=Results%20of%20Operations) Q2 2024 net sales from continuing operations increased 16%, with gross profit up 30%, primarily driven by the Grown segment, while SG&A rose due to FCPA investigation fees Net Sales by Segment (in thousands) | Segment | Q2 2024 | Q2 2023 | % Change | | :--- | :--- | :--- | :--- | | Grown | $166,755 | $140,301 | 19% | | Prepared | $17,628 | $17,978 | (2)% | | **Total** | **$184,383** | **$158,279** | **16%** | - Grown segment sales growth in Q2 was driven by a **12% increase** in avocado sales (**28% price increase**, **13% volume decrease**) and a **73% increase** in tomato sales (**28% volume increase**, **35% price increase**)[115](index=115&type=chunk)[116](index=116&type=chunk)[117](index=117&type=chunk) Gross Profit by Segment (in thousands) | Segment | Q2 2024 | Q2 2023 | % Change | Q2 2024 Margin | Q2 2023 Margin | | :--- | :--- | :--- | :--- | :--- | :--- | | Grown | $16,049 | $12,599 | 27% | 9.6% | 9.0% | | Prepared | $4,308 | $3,072 | 40% | 24.4% | 17.1% | | **Total** | **$20,357** | **$15,671** | **30%** | **11.0%** | **9.9%** | - SG&A expenses for Q2 2024 decreased by **3% YoY**, but increased by **6% for the six-month period**, primarily driven by **$5.0 million** in professional fees for the FCPA investigation[136](index=136&type=chunk)[137](index=137&type=chunk) [Non-GAAP Financial Measures](index=34&type=section&id=Non-GAAP%20Financial%20Measures) Non-GAAP measures like Adjusted EBITDA are used to evaluate performance, with Q2 2024 Adjusted EBITDA from continuing operations at $13.4 million, adjusted for FCPA and restructuring costs Reconciliation of Adjusted EBITDA from Continuing Operations (in thousands) | Line Item | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Net income from continuing operations attributable to Calavo | $6,470 | $1,412 | | EBITDA from continuing operations | $10,241 | $6,233 | | Professional fees related to FCPA Mexico investigation | $2,656 | $— | | Restructure costs | $550 | $2,327 | | Other adjustments | $202 | $1,177 | | **Adjusted EBITDA from continuing operations** | **$13,445** | **$9,937** | [Liquidity and Capital Resources](index=48&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains solid liquidity with $4.3 million cash and $43.0 million credit facility availability, with operating cash flow improving to $2.2 million for the six-month period - Cash provided by operating activities improved to **$2.2 million** for the six months ended **April 30, 2024**, compared to cash used of **$3.8 million** in the prior-year period[141](index=141&type=chunk) - As of **April 30, 2024**, the company had **$4.3 million** in cash and cash equivalents and working capital of **$54.4 million**[146](index=146&type=chunk) - The company had **$43.0 million** available for borrowing under its credit facility as of **April 30, 2024**, with outstanding borrowings including **$42.0 million** on the revolving loan and **$3.8 million** on the term loan[153](index=153&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=51&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is foreign currency exchange rate fluctuation between the U.S. dollar and Mexican peso, with a Q2 2024 remeasurement loss of $0.3 million - The company is exposed to market risk from fluctuations in the Mexican peso to U.S. dollar exchange rate, resulting in a net remeasurement loss of **$0.3 million** for Q2 2024, compared to a **$1.0 million** gain in Q2 2023[159](index=159&type=chunk) - The company does not use derivative instruments for speculative, trading, or hedging purposes[158](index=158&type=chunk) [Item 4. Controls and Procedures](index=51&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of April 30, 2024, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of **April 30, 2024**[160](index=160&type=chunk) - No material changes were made to the company's internal control over financial reporting during the quarter[161](index=161&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=53&type=section&id=Item%201.%20Legal%20Proceedings) This section refers to Note 7 for details on legal proceedings, including the ongoing FCPA investigation in Mexico and the long-standing Mexican tax audits - For information regarding legal proceedings, the report refers to Note 7 of the consolidated financial statements[163](index=163&type=chunk) [Item 1A. Risk Factors](index=53&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the Annual Report on Form 10-K for the fiscal year ended October 31, 2023 - There have been no material changes to the risk factors disclosed in the company's Annual Report on Form 10-K for the year ended **October 31, 2023**[164](index=164&type=chunk) [Item 5. Other Information](index=53&type=section&id=Item%205.%20Other%20Information) No directors or Section 16 officers adopted or terminated any Rule 10b5-1 trading plans during the quarter ended April 30, 2024 - No directors or Section 16 officers adopted or terminated any **Rule 10b5-1 trading plans** during the quarter[165](index=165&type=chunk) [Item 6. Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including CEO and CFO certifications and financial statements in Inline XBRL format - The exhibits filed with the report include **CEO/CFO certifications** and financial data in **Inline XBRL format**[166](index=166&type=chunk)

Exhibit 99.1 Calavo Growers, Inc. Announces Second Quarter 2024 Financial Results SANTA PAULA, Calif., Jun. 10, 2024—Calavo Growers, Inc. (Nasdaq-GS: CVGW), a global avocado industry leader and provider of convenient, ready-to-eat fresh food, today reported its financial results for the fiscal second quarter ended April 30, 2024. Second Quarter Financial Overview Introductory Note: In the first quarter of 2024, we concluded that the fresh cut (formerly RFG) business meets the requirements to be classified a ...

Second Quarter Financial Overview Total net sales of $184.4 million, a 16.5% increase from the prior year quarter Grown segment net sales increased 18.9% to $166.8 million Prepared segment net sales decreased 1.9% to $17.6 million Gross profit of $20.4 million, compared to $15.7 million for the prior year quarter Grown segment gross profit increased $3.5 million to $16.0 million Prepared segment gross profit increased $1.2 million to $4.3 million Net income from continuing operations of $6.5 million, or $0. ...

Financial Overview - Total net sales for the second quarter 2024 were $184.4 million, a 16.5% increase from $158.3 million in the prior year quarter [2][26] - Grown segment net sales increased by 18.9% to $166.8 million, while Prepared segment net sales decreased by 1.9% to $17.6 million [2][26] - Gross profit for the second quarter was $20.4 million, compared to $15.7 million for the same period last year, representing a gross margin of 11.0% [27][28] - Net income from continuing operations was $6.5 million, or $0.36 per diluted share, compared to $1.4 million, or $0.08 per diluted share, for the same period last year [28][39] - Adjusted net income was $8.9 million, or $0.50 per diluted share, compared to $5.1 million, or $0.29 per diluted share last year [8][56] - Adjusted EBITDA was $13.4 million, an increase from $9.9 million for the same period last year [29][56] Segment Performance - Grown segment gross profit increased by $3.5 million to $16.0 million, driven by higher avocado prices, which were approximately 28% higher than the prior year [30][24] - Prepared segment gross profit improved by $1.2 million to $4.3 million, with gross margin rising to 24% from 17% in the prior year quarter [10][30] - The average selling price of avocados in the Grown segment increased by 28% compared to the prior year [6] Management Commentary - The company is working on completing the sale of its fresh cut business, with negotiations ongoing regarding price and structure, targeting completion during the fiscal third quarter [5][24] - Management expressed satisfaction with the second quarter results, highlighting strong operational performance across the portfolio and improved prices and margins in the core avocado and tomato businesses [25]

SANTA PAULA, Calif., June 04, 2024 (GLOBE NEWSWIRE) -- Calavo Growers, Inc. (Nasdaq-GS: CVGW), a global leader in the avocado and value-added fresh food industries, today announced the appointment of John Lindeman to its Board of Directors and Audit Committee, effective June 3, 2024. Prior to joining Calavo, Mr. Lindeman held various leadership positions within the finance and investment banking industries, including serving as managing director at Sageworth Trust Company, a family office and private trust ...

Prior to joining Calavo, Mr. Lindeman held various leadership positions within the finance and investment banking industries, including serving as managing director at Sageworth Trust Company, a family office and private trust company, managing director and co-head of the consumer and retail group at Janney Montgomery Scott, managing director at Stifel Nicolaus and principal at Legg Mason. Prior to joining Legg Mason, he was a manager at PricewaterhouseCoopers LLP. Mr. Lindeman has also served as a director ...

Calavo Growers, Inc. (Nasdaq: CVGW) is a global leader in high quality produce, including avocados, tomatoes and papayas, and a pioneer of healthy fresh-cut fruit, vegetables and prepared foods. Calavo products are sold under the trusted Calavo brand name, proprietary sub-brands, private label and store brands. Founded in 1924, Calavo has a rich culture of innovation, sustainable practices and market growth. The Company serves retail grocery, foodservice, club stores, mass merchandisers, food distributors a ...