Limoneira(US:LMNR)2025-03-12 20:05Financial Performance - Total net revenues for Q1 2025 were $34.3 million, a 14% decrease from $39.7 million in Q1 2024, primarily due to lower agribusiness revenues from lemons and specialty citrus [127][130]. - Operating loss for Q1 2025 was $5.3 million, an improvement from a loss of $7.7 million in Q1 2024 [127]. - Total costs and expenses for Q1 FY2025 were $39.7 million, a 17% decrease from $47.5 million in Q1 FY2024 [133]. - Fresh lemons segment revenue decreased by 13% to $23.7 million in Q1 FY2025 from $27.4 million in Q1 FY2024 [143]. - Lemon packing segment revenue decreased by 4% to $11.8 million in Q1 FY2025 from $12.3 million in Q1 FY2024 [144]. - Agribusiness costs and expenses decreased by 14% to $33.5 million in Q1 FY2025 from $39.1 million in Q1 FY2024 [133]. - Gain on sales of water rights was $1.5 million in Q1 FY2025, attributed to three separate transactions [136]. - Selling, general and administrative costs decreased by 12% to $6.5 million in Q1 FY2025 from $7.3 million in Q1 FY2024 [137]. - Estimated income tax benefit for Q1 FY2025 was $2.4 million on a pre-tax loss of $5.5 million [138]. - Other agribusiness segment revenues decreased by 18% to $4.4 million in Q1 FY2025 from $5.4 million in Q1 FY2024 [149]. - Corporate and other operations revenues increased slightly to $1.5 million in Q1 FY2025 from $1.4 million in Q1 FY2024 [150]. - Total net revenues increased by $4.3 million to $186.1 million for the trailing twelve months ended January 31, 2025, compared to $181.7 million in 2024, driven primarily by higher avocado revenue [153]. - Total costs and expenses decreased by $14.7 million to $189.9 million, mainly due to reduced agribusiness costs and increased gains on sales of water rights [153]. - Operating loss improved to $3.8 million for the trailing twelve months ended January 31, 2025, compared to a loss of $22.8 million in 2024 [153]. - Net income attributable to Limoneira Company was $8.2 million for the trailing twelve months ended January 31, 2025, compared to a net loss of $9.8 million in 2024 [153]. - Net cash used in operating activities was $12.9 million for the three months ended January 31, 2025, compared to $10.3 million in 2024 [158]. - Net cash provided by financing activities increased to $14.5 million for the three months ended January 31, 2025, up from $8.8 million in 2024, primarily due to net borrowings of long-term debt [166]. - The company reported a decrease in operating loss of $2.4 million for the three months ended January 31, 2025, compared to the same period in 2024 [159]. Agribusiness Operations - Agribusiness revenues decreased by $5.5 million to $32.9 million in Q1 2025, with lemon revenues dropping 14% to $28.3 million, attributed to lower prices of fresh lemons sold [130][131]. - The average price per carton of fresh lemons sold decreased from $21.06 in Q1 2024 to $18.44 in Q1 2025, despite selling 1,147,000 cartons in 2025 compared to 1,137,000 cartons in 2024 [131]. - The agribusiness division is affected by seasonal fluctuations, with higher cultural costs in the first two quarters and peak harvest costs in the third quarter [116]. - The company has a 51% interest in a joint venture, Trapani Fresh, which operates a lemon orchard in Argentina [111]. Strategic Initiatives - The company plans to expand avocado production by 1,000 acres by fiscal year 2027 to meet increasing consumer demand [118]. - The company is exploring strategic alternatives to maximize stockholder value, including potential sales or mergers, with no set timetable for completion [125]. Cash Management - As of January 31, 2025, outstanding borrowings under the AgWest Farm Credit Facility were $57.8 million, with $57.2 million of availability remaining [162]. - The company expects cash flows from operations and available borrowing capacity to be sufficient to meet capital expenditures and working capital needs for the next 12 months [157]. - Cash dividends declared for the three months ended January 31, 2025, were $0.075 per common share, totaling $1.4 million [164].