[Forward-Looking Statements](index=3&type=section&id=FORWARD-LOOKING%20STATEMENTS) This section outlines forward-looking statements, emphasizing that future results may differ materially due to various risks including COVID-19, market volatility, and supply chain disruptions - Key risks include the ongoing impact of the COVID-19 pandemic on operations, supply chains, and consumer demand[7](index=7&type=chunk) - Business seasonality and sensitivity to market price changes for avocados and other agricultural products[7](index=7&type=chunk) - Potential supply chain disruptions, risks from future acquisitions, and cybersecurity threats[7](index=7&type=chunk) - Dependence on large customers and key personnel[7](index=7&type=chunk) - Risks associated with international operations, including trade protection measures and currency fluctuations[7](index=7&type=chunk) [PART I. FINANCIAL INFORMATION](index=6&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=6&type=section&id=Item%201.Financial%20Statements%20(unaudited)) This section presents unaudited consolidated condensed financial statements, including balance sheets, statements of operations, cash flows, and shareholders' equity [Consolidated Condensed Balance Sheets](index=6&type=section&id=Consolidated%20Condensed%20Balance%20Sheets) The balance sheet as of April 30, 2021, shows increased total assets, primarily from accounts receivable and inventories, alongside growth in total liabilities and shareholders' equity Consolidated Condensed Balance Sheet Highlights (in thousands) | Account | April 30, 2021 | October 31, 2020 | | :--- | :--- | :--- | | **Total current assets** | $170,387 | $135,895 | | **Total assets** | $474,310 | $429,624 | | **Total current liabilities** | $95,584 | $106,331 | | **Total liabilities** | $202,568 | $173,622 | | **Total shareholders' equity** | $271,742 | $256,002 | [Consolidated Condensed Statements of Operations](index=8&type=section&id=Consolidated%20Condensed%20Statements%20of%20Operations) Net sales for Q2 2021 slightly decreased, but net income significantly improved, largely due to an unrealized gain on Limoneira shares compared to a prior-year loss Statement of Operations Summary (in thousands, except per share data) | Metric | Three Months Ended April 30, 2021 | Three Months Ended April 30, 2020 | Six Months Ended April 30, 2021 | Six Months Ended April 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | **Net sales** | $276,821 | $281,166 | $497,399 | $554,516 | | **Gross profit** | $22,600 | $22,075 | $40,439 | $37,883 | | **Operating income** | $8,971 | $7,625 | $12,690 | $7,189 | | **Net income (loss) attributable to Calavo** | $8,841 | $(3,278) | $14,118 | $(4,216) | | **Diluted EPS** | $0.50 | $(0.19) | $0.80 | $(0.24) | [Consolidated Condensed Statements of Cash Flows](index=9&type=section&id=Consolidated%20Condensed%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities significantly improved for the six months ended April 30, 2021, with investing activities primarily for property purchases Cash Flow Summary - Six Months Ended April 30 (in thousands) | Activity | 2021 | 2020 | | :--- | :--- | :--- | | **Net cash provided (used) by operating activities** | $10,423 | $(3,022) | | **Net cash used in investing activities** | $(8,985) | $(25,810) | | **Net cash provided by financing activities** | $89 | $24,143 | | **Net increase (decrease) in cash** | $1,527 | $(4,689) | [Notes to Consolidated Condensed Financial Statements](index=11&type=section&id=Notes%20to%20Consolidated%20Condensed%20Financial%20Statements) These notes provide critical context, detailing segment performance, significant tax assessments from Mexican authorities, the FreshRealm separation, and the amendment of the company's credit facility Net Sales by Segment - Six Months Ended April 30 (in thousands) | Segment | 2021 | 2020 | | :--- | :--- | :--- | | Fresh products | $275,902 | $303,358 | | RFG | $186,595 | $214,463 | | Calavo Foods | $34,902 | $36,695 | | **Total Net Sales** | **$497,399** | **$554,516** | - The company is contesting two tax assessments from Mexican authorities: a 2011 assessment for approximately **$109.0 million USD** and a 2013 assessment for approximately **$128.8 million USD**, which Calavo believes are without merit[72](index=72&type=chunk)[76](index=76&type=chunk) - On February 3, 2021, Calavo terminated its equity ownership in FreshRealm and restructured its **$34.5 million** loan, with potential future payments up to **$34 million** contingent on FreshRealm achieving certain valuation milestones[97](index=97&type=chunk)[99](index=99&type=chunk)[101](index=101&type=chunk) - In January 2021, the company amended its credit facility, extending the maturity to January 2026 and increasing the revolving commitment from **$80 million** to **$100 million**[105](index=105&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial results, noting a slight decrease in Q2 2021 net sales but an increase in consolidated gross profit, alongside rising labor, commodity, and logistical costs [Results of Operations](index=44&type=section&id=Results%20of%20Operations) Q2 2021 saw a slight decrease in net sales but an increase in gross profit, with varied performance across segments due to factors like avocado prices, cost pressures, and margin management Gross Profit by Segment (in thousands) | Segment | Three Months Ended April 30, 2021 | Three Months Ended April 30, 2020 | Six Months Ended April 30, 2021 | Six Months Ended April 30, 2020 | | :--- | :--- | :--- | :--- | :--- | | Fresh products | $15,008 | $14,405 | $28,153 | $20,987 | | RFG | $2,288 | $2,736 | $2,266 | $5,610 | | Calavo Foods | $5,304 | $4,934 | $10,020 | $11,286 | | **Total Gross Profit** | **$22,600** | **$22,075** | **$40,439** | **$37,883** | - The Fresh products segment's gross profit percentage increased in Q2 2021 due to more effective management of the spread between avocado sales prices and fruit costs[172](index=172&type=chunk) - RFG's gross profit declined due to increased commodity costs, labor shortages leading to higher overtime, and extraordinary weather events[177](index=177&type=chunk) - Selling, general and administrative (SG&A) expenses decreased by **6%** in Q2 2021 and **10%** in the six-month period, primarily due to lower staff-related costs and broker commissions[181](index=181&type=chunk)[182](index=182&type=chunk) [Non-GAAP Financial Measures](index=41&type=section&id=Non-GAAP%20Financial%20Measures) The company provides non-GAAP metrics, with Adjusted Net Income and Adjusted EBITDA showing increases for Q2 2021, primarily after excluding unrealized gains/losses and unconsolidated entity losses Adjusted Net Income Reconciliation (in thousands) | Metric | Three Months Ended April 30, 2021 | Three Months Ended April 30, 2020 | | :--- | :--- | :--- | | **Net income (loss) attributable to Calavo** | $8,841 | $(3,278) | | Non-GAAP adjustments (net) | $(1,165) | $10,290 | | **Adjusted net income** | **$7,676** | **$7,012** | Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended April 30, 2021 | Three Months Ended April 30, 2020 | | :--- | :--- | :--- | | **Net income (loss) attributable to Calavo** | $8,841 | $(3,278) | | Adjustments (Interest, Taxes, D&A, etc.) | $8,380 | $4,243 | | **EBITDA** | $17,221 | $965 | | Further Adjustments | $(2,217) | $12,746 | | **Adjusted EBITDA** | **$15,004** | **$13,711** | [Liquidity and Capital Resources](index=53&type=section&id=Liquidity%20and%20Capital%20Resources) As of April 30, 2021, the company maintained strong liquidity with increased cash and working capital, supported by a substantial credit facility, deemed sufficient for future needs - Cash provided by operating activities was **$10.4 million** for the six months ended April 30, 2021, compared to cash used of **$3.0 million** in the prior year period[188](index=188&type=chunk) - Working capital stood at **$74.8 million** at April 30, 2021, a significant increase from **$29.6 million** at October 31, 2020[193](index=193&type=chunk) - The company has a **$100 million** credit facility expiring in January 2026, with **$42.3 million** outstanding as of April 30, 2021[194](index=194&type=chunk)[196](index=196&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=56&type=section&id=Item%203.Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks include interest rate fluctuations on its variable-rate credit facility and foreign currency exchange risk, particularly with the Mexican peso - The company is exposed to interest rate risk through its variable-rate credit facility[201](index=201&type=chunk) - Significant operations in Mexico expose the company to foreign currency risk, with a remeasurement loss of **$0.5 million** recorded in Q2 2021[204](index=204&type=chunk) [Item 4. Controls and Procedures](index=56&type=section&id=Item%204.Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective, with no material changes to internal controls over financial reporting during the quarter - Management, including the principal executive and financial officers, concluded that disclosure controls and procedures were effective as of April 30, 2021[205](index=205&type=chunk) [PART II. OTHER INFORMATION](index=56&type=section&id=PART%20II.%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=56&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in ordinary course litigation but does not anticipate any current proceedings will materially impact its financial statements - The company is not aware of any legal proceedings that would have a material adverse impact on its financials[206](index=206&type=chunk) [Item 1A. Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) This section updates risk factors, highlighting increased labor, commodity, and logistical costs due to post-COVID economic recovery, expected to adversely affect operations - A key updated risk is the impact of the post-COVID economic climate, which is increasing costs for labor, commodities, and logistics, creating operational challenges[209](index=209&type=chunk)[210](index=210&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=Item%202.Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company withheld common shares from officers in December 2020 and February 2021 to satisfy tax withholding obligations related to equity award settlements - In Q1 and Q2 2021, Calavo withheld a combined **14,112** shares from officers to cover tax obligations on vested equity awards[211](index=211&type=chunk) [Item 6. Exhibits](index=59&type=section&id=Item%206.Exhibits) This section lists all exhibits filed with the Form 10-Q, including the 2020 Equity Incentive Plan, FreshRealm separation agreements, and the third amendment to the credit agreement - Key exhibits filed include the 2020 Equity Incentive Plan, the Limited Liability Company Member Separation and Release Agreement with FreshRealm, and the Third Amendment to the Credit Agreement[213](index=213&type=chunk)

Callavo. CALAVO GROWERS, INC. INVESTOR PRESENTATION NASDAQ GS: CVGW MARCH 2021 SAFE HARBOR STATEMENT This presentation contains statements relating to future events and results of Calavo (including certain projections and business trends) that are "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995, that involve risks, uncertainties and assumptions. These statements are based on our current expectations and are not promises or guarantees. If any of the risks or u ...

Calavo Growers, Inc. (NASDAQ:CVGW) Q1 2021 Earnings Conference Call March 10, 2021 5:00 PM ET Company Participants Lisa Mueller - IR, Financial Profiles, Inc. Jim Gibson - Chief Executive Officer Kevin Manion - Chief Financial Officer Conference Call Participants Eric Larson - Seaport Global Securities Bill Newby - D.A. Davidson Pooran Sharma - Stephens Inc. Mitch Pinheiro - Sturdivant & Co. Ryan Meyers - Lake Street Capital Markets Operator Greetings and welcome to the Calavo Growers Incorporated First Qua ...

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 January 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 000-33385 (Registrant's CALAVO GROWERS, INC. (Exact name of registrant as specified in its charter) California 33-0945304 (State of incorporation) (I.R.S. E ...

Business Overview - Calavo operates a diversified business model across three segments: Fresh (55% of revenue), RFG (Renaissance Food Group) (38% of revenue), and Foods (7% of revenue)[4] - The Fresh segment generated $1.1 billion in revenue in FY2020[6] - RFG experienced a 7% CAGR in top-line growth from 2015 to 2020[27] - The Foods segment saw a 3% CAGR in top-line growth from 2015 to 2020, despite COVID-19 impacts[30] Financial Performance & Growth - Calavo has a track record of sustainable growth and consistent annual dividend payouts[39] - The company has increased gross margin by 0.8 percentage points from FY2019 to FY2020 in RFG segment[27] - Calavo has paid dividends for 19 consecutive years, with 9 consecutive years of dividend increases[40] Market & Strategy - The company is focused on maximizing operating leverage and synergies by consolidating its Fresh, RFG, and Foods segments[15] - Calavo aims to drive organic growth in each operating segment and pursue strategic bolt-on acquisitions[15] - The company sees significant growth opportunity in avocados, driven by versatile consumption methods and nutritional value[22] - Calavo is well-positioned to meet the growing demand for avocados domestically and abroad[22]

Calavo Growers, Inc. (NASDAQ:CVGW) Q4 2020 Earnings Conference Call December 21, 2020 4:30 PM ET Company Participants Lisa Mueller - Senior Vice President, Financial Profiles, Inc. Jim Gibson - Chief Executive Officer Kevin Manion - Chief Financial Officer Conference Call Participants Ben Bienvenu - Stephens Rob Dickerson - Jefferies Mark Smith - Lake Street Capital Markets Mitch Pinheiro - Sturdivant and Co Operator Greetings, and welcome to Calavo Growers Incorporated Fourth Quarter 2020 Earnings Call. At ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 000-33385 | --- | --- | --- | |------------------------------------------------------------------------------------------|------------------------------------------------------------ ...

allavo. CALAVO GROWERS, INC. INVESTOR PRESENTATION NASDAQ GS: CVGW NOVEMBER 2020 SAFE HARBOR STATEMENT This presentation contains statements relating to future events and results of Calavo (including certain projections and business trends) that are "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995, that involve risks, uncertainties and assumptions. These statements are based on our current expectations and are not promises or guarantees. If any of the risks or ...

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, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 000-33385 CALAVO GROWERS, INC. (Exact name of registrant as specified in its charter) California 33-0945304 (State of incorporation) (I.R.S. Employer Identific ...

Calavo Growers, Inc. (NASDAQ:CVGW) Q3 2020 Earnings Conference Call September 8, 2020 5:00 PM ET Company Participants Lisa Mueller - Senior Vice President, Financial Profiles, Inc. Jim Gibson - Chief Executive Officer Kevin Manion - Chief Financial Officer Conference Call Participants Rob Dickerson - Jefferies Ben Bienvenu - Stephens Inc. Mitch Pinheiro - Sturdivant Mark Smith - Lake Street Capital Markets Operator Greetings, and welcome to Calavo Growers Incorporated Third Quarter 2020 Earnings Call. At th ...