Calavo(US:CVGW)2025-03-12 20:10Financial Performance - Total net sales for Q1 2025 were $154.4 million, a 21.0% increase from $127.6 million in Q1 2024[12] - Gross profit for Q1 2025 was $15.7 million, a 46.2% increase from $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%, driven by a 30.5% increase in average price per carton, despite a 4.6% decline in volume[6][12] - Fresh segment gross profit rose to $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]