Limoneira(US:LMNR)2025-12-23 21:04Financial Performance - Total net revenues for fiscal year 2025 were $159.7 million, a 17% decrease from $191.5 million in fiscal year 2024, primarily due to decreased agribusiness revenue from lemons, avocados, and farm management [192]. - Agribusiness revenues decreased by 17% to $153.7 million in fiscal year 2025, with significant declines in avocados (53%) and farm management (84%) revenues [192]. - The company reported an operating loss of $20.4 million for fiscal year 2025, compared to an operating income of $6.2 million in fiscal year 2024 [189]. - Net loss attributable to Limoneira Company was $15.98 million in fiscal year 2025, compared to a net income of $7.72 million in fiscal year 2024 [191]. - EBITDA for fiscal year 2025 was $(9.93) million, a significant decline from $21.31 million in fiscal year 2024 [191]. - Adjusted EBITDA for fiscal year 2025 was $(6.45) million, compared to $26.72 million in fiscal year 2024 [191]. - Net loss for fiscal year 2025 was $(16.4) million, compared to a net income of $7.2 million for fiscal year 2024, primarily due to an increase in operating loss of $14.2 million and a decrease in total other income of $18.3 million [221]. Revenue Breakdown - The agribusiness division's lemon revenue included $124.96 million from lemons, down 8% from $136.18 million in fiscal year 2024 [192]. - Fresh lemons segment total net revenues for fiscal year 2025 were $75.8 million, a 13% decrease from $86.9 million in fiscal year 2024 [205]. - Lemon packing segment total net revenues for fiscal year 2025 were $49.1 million, slightly down from $49.3 million in fiscal year 2024 [206]. - Avocados segment revenue for fiscal year 2025 was $11.7 million, a 53% decrease from $25.1 million in fiscal year 2024 [209]. - Other agribusiness segment total net revenues for fiscal year 2025 were $17.0 million, a 31% decrease from $24.6 million in fiscal year 2024 [210]. - Corporate and other operations revenues for fiscal year 2025 were $6.0 million, up from $5.6 million in fiscal year 2024 [213]. Cost and Expenses - Total costs and expenses for fiscal year 2025 were $180.1 million, a 9% decrease from $197.7 million in fiscal year 2024, mainly due to reduced agribusiness costs and selling, general and administrative expenses [194]. - Agribusiness costs and expenses decreased by 6% to $154.8 million in fiscal year 2025, with notable reductions in growing costs (37%) and harvest costs (25%) [194]. - Total costs and expenses for the fresh lemons segment in fiscal year 2025 were $77.6 million, an 8% decrease from $84.2 million in fiscal year 2024 [205]. - Lemon packing costs and expenses for fiscal year 2025 were $47.4 million, an 11% increase from $42.8 million in fiscal year 2024 [207]. - Other agribusiness costs and expenses for fiscal year 2025 were $15.6 million, a 33% decrease from $23.4 million in fiscal year 2024 [212]. - Selling, general and administrative expenses for fiscal year 2025 were $24.5 million, down from $27.5 million in fiscal year 2024 [199]. Cash Flow and Capital Expenditures - Cash flows from operating activities were $(6.0) million for fiscal year 2025, a significant decrease from $17.9 million in fiscal year 2024 [219]. - Capital expenditures for fiscal year 2025 amounted to $13.5 million, primarily related to orchard development [221]. - The company expects to receive approximately $155.0 million from joint ventures over the next five years [231]. - The company declared cash dividends of $0.30 per common share, totaling $5.4 million for both fiscal years 2025 and 2024 [226]. Debt and Interest Rate Exposure - The company has an aggregate borrowing capacity of $115.0 million, with $72.5 million outstanding under the Revolving Credit Supplement as of October 31, 2025 [220]. - The total debt outstanding under the AgWest Farm Credit Facility was $72.5 million as of October 31, 2025 [240]. - As of October 31, 2025, a 100 basis points increase in interest rates would increase interest rate expense by $0.7 million for fiscal year 2026 [241]. - A 100 basis points increase in interest rates would decrease net income by $0.5 million for fiscal year 2026 [241]. - The annual average impact of a 100 basis points increase in interest rates on interest rate expense is projected to be $0.7 million for each of the three subsequent fiscal years [241]. - The annual average impact on net income from a 100 basis points increase in interest rates is projected to be $0.5 million for each of the three subsequent fiscal years [241]. - The company has strategies in place to manage exposure to interest rate risk [241]. - Potential strategies include the early pay down of outstanding debt under the AgWest Farm Credit Facility [241]. Taxation - The effective tax rate for fiscal year 2025 was 22.1%, a decrease from 37.9% in fiscal year 2024 [199]. - The company paid income taxes of $0.7 million for fiscal year 2025, a decrease from $5.2 million in fiscal year 2024 [227].