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Calavo(CVGW) - 2024 Q4 - Annual Results
CVGWCalavo(CVGW)2025-01-17 22:32

Financial Performance - Total net sales for fiscal year 2024 increased by 11.4% to 661.5million,withtheGrownsegmentnetsalesrisingby13.3661.5 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 6.8million,or6.8 million, or 0.38 per diluted share, compared to 5.1million,or5.1 million, or 0.26 per diluted share, for the prior year[5]. - Adjusted net income for the fourth quarter was 18.7million,or18.7 million, or 1.05 per diluted share, up from 11.5million,or11.5 million, or 0.64 per diluted share, in the prior year[5]. - Adjusted EBITDA for the fourth quarter was 37.0million,comparedto37.0 million, compared to 33.2 million for the prior year[5]. - The company’s operating income for the year ended October 31, 2024, was 16,723thousand,comparedto16,723 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 18,678million,comparedto18,678 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,upfrom0.38, up from 0.26 in 2023, indicating a 46.2% increase[32]. - EBITDA for the year ended October 31, 2024, was 21,234million,adecreasefrom21,234 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 37,006millionfrom37,006 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 14.3million,drivenbya1014.3 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 2.7millionintheprioryearquarter,withgrossmargindecreasingfrom16.12.7 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 16,927thousandinthesameperiodof2023[29].CashandDebtManagement−Thecompanyendedthefiscalyearwithcashandcashequivalentsof16,927 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 5.1million[15].−Thecompany’scashandcashequivalentsincreasedsignificantlyto5.1 million[15]. - The company’s cash and cash equivalents increased significantly to 57,031 thousand as of October 31, 2024, compared to 2,091thousandin2023[26].−Totalcurrentliabilitiesdecreasedto2,091 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 9.3million,or6.59.3 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 1.0millioninprofessionalfeesrelatedtoMexicantaxmattersfortheyearendedOctober31,2024,downfrom1.0 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 967million,downfrom967 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 158,579thousandasofOctober31,2024,from158,579 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 139thousandforthethreemonthsendedOctober31,2024,comparedtoanetlossof139 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,animprovementfromanetlossof(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 0.1millionfromunconsolidatedentitiesforthethreemonthsendedOctober31,2024,comparedtoalossof0.1 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 5.8million,comparedtoagainof5.8 million, compared to a gain of 1.4 million in the previous year[34].