Calavo(CVGW) - 2025 Q1 - Quarterly Results

Financial Performance - Total net sales for Q1 2025 were $154.4 million, a 21.0$127.6 million in Q1 2024[12] - Gross profit for Q1 2025 was $15.7 million, a 46.2$10.8 million in the prior year quarter[6][13] - Adjusted net income was $5.9 million, or$0.33 per diluted share, compared to an adjusted net loss of $1.4 million, or$(0.08) per share, in Q1 2024[16] - Adjusted EBITDA increased over 200% to $9.3 million, compared to$3.1 million in Q1 2024, driven by higher margins in the Fresh segment[17] - Operating income for the three months ended January 31, 2025, was $5,046 thousand, a significant recovery from an operating loss of$3,086 thousand in the same period of 2024[32] - The company reported a net income attributable to Calavo Growers, Inc. of $4,415 thousand for the three months ended January 31, 2025, compared to a net loss of$6,267 thousand in the same period of 2024[32] - Net income from continuing operations for the three months ended January 31, 2025, was $4,435 million, compared to a loss of$2,574 million in the same period of 2024[39] - Adjusted EBITDA from continuing operations increased to $9,286 million, up from$3,154 million year-over-year[39] - The overall EBITDA from continuing operations for the period was $7,252 million, a substantial increase from$1,612 million in the same quarter of the previous year[39] Segment Performance - Fresh segment sales increased by $26.8 million, or 23.7$12.1 million, an 88.8% increase year-over-year, benefiting from higher avocado pricing[19] - The Fresh segment generated net sales of $139,795 thousand for the three months ended January 31, 2025, up from$113,026 thousand in the prior year, while the Prepared segment remained stable at 14,590 thousand[33] Expenses and Liabilities - SG&A expenses decreased by 3.2 million, or 23.6%, to $10.3 million, reflecting lower compensation expenses and professional fees[14] - Total current assets decreased slightly to$158,176 thousand as of January 31, 2025, from $158,579 thousand as of October 31, 2024[31] - Total current liabilities decreased to$70,794 thousand as of January 31, 2025, from $73,205 thousand as of October 31, 2024[31] - The company incurred$395 thousand in expenses related to Mexican tax matters during the three months ended January 31, 2025[35] - Professional fees related to internal investigations and legal settlements were $677 million, down from$2,380 million year-over-year[39] Cash and Dividends - The company ended Q1 2025 with cash and cash equivalents of $48.5 million and total debt of$4.9 million[18] - The Board of Directors declared a quarterly cash dividend of $0.20 per share, payable on April 29, 2025[15] Management Outlook - Management expressed confidence in sustaining momentum as the company enters the peak California avocado season[12] Other Financial Metrics - Interest income rose significantly to$845 million from $125 million, while interest expense decreased to$213 million from $824 million[39] - Provision for income taxes increased to$1,255 million, compared to $573 million in the prior year[39] - Depreciation and amortization expenses were$1,942 million, slightly down from $2,032 million year-over-year[39] - Stock-based compensation decreased to$272 million from $892 million in the previous year[39] - Foreign currency gains amounted to$962 million, a significant recovery from a loss of $1,708 million in the prior year[39] - The company incurred$395 million in expenses related to Mexican tax matters, compared to $383 million in the previous year[39]