Calavo(US:CVGW)2025-01-17 22:32Financial 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].