Mission(US:AVO)2023-03-08 16:00Financial Performance - Net sales decreased by $3.1 million or 1% to $213.5 million for the three months ended January 31, 2023, compared to $216.6 million in the same period last year[83]. - Gross profit increased by $8.5 million or 1700% to $9.0 million, with a gross profit margin of 4.2% for the three months ended January 31, 2023, compared to 0.2% in the same period last year[89]. - Total net sales for the three months ended January 31, 2023, were $213.5 million, a slight increase of 4.3% compared to $216.6 million in the same period last year[103]. - Net loss for the three months ended January 31, 2023, was $10.6 million, an improvement from a loss of $13.4 million in the same period last year[112]. - Adjusted EBITDA for the total reportable segments was $2.3 million, a significant improvement from a loss of $10.4 million in the same period last year[104]. Segment Performance - Marketing and Distribution segment net sales decreased by 14% in volume but were partially offset by a 27% decrease in average per-unit avocado sales prices[85]. - The Marketing and Distribution segment experienced a net sales decrease of $30.5 million or 14%, primarily due to a 27% decrease in average per-unit avocado sales prices, despite a 14% increase in avocado volume sold[106]. - International Farming segment sales increased by $2.4 million or 73%, driven by higher packing and cooling service revenue for blueberry operations[108]. - Blueberries segment net sales were $29.8 million, with an adjusted EBITDA of $(0.5) million, attributed to weak sales prices in European and U.S. markets[109]. - The Blueberries segment experienced negative gross margins due to weak sales prices in the European and US markets[89]. Expenses and Liabilities - Selling, general and administrative expenses increased by $0.4 million or 2% to $19.1 million, including $1.6 million in expenses from the Blueberries segment[90]. - Interest expense rose by $1.5 million or 167% to $2.4 million due to rising interest rates affecting variable-rate debt[91]. - Other expense increased to $0.8 million compared to other income of $1.6 million in the prior year, mainly due to losses on foreign currency transactions[96]. - Income tax benefit decreased by $0.8 million or 32% to $1.7 million, with an effective tax rate of 13.8% for the three months ended January 31, 2023[99]. - As of January 31, 2023, the company's undiscounted cash liabilities related to leases amounted to $183.8 million, including approximately $60.0 million for a 25-year land lease in the Blueberries segment[125]. - Remaining maturities on term loans and notes as of January 31, 2023, were $150.1 million[126]. Cash Flow and Capital Expenditures - Operating cash flows for the three months ended January 31, 2023, were $(1.3) million, significantly better than $(41.4) million for the same period last year[112]. - Capital expenditures for the three months ended January 31, 2023, were $17.6 million, compared to $20.9 million in the same period last year[113]. - Cash paid for capital expenditures for the year ended October 31, 2022, was $61.2 million[123]. - As of January 31, 2023, cash and cash equivalents were $39.2 million, down from $52.8 million as of October 31, 2022[119]. Investment and Financial Ratios - The company maintained a consolidated leverage ratio of 2.11 to 1.00 and a fixed charge coverage ratio of 2.29 to 1.00, in compliance with financial covenants[121]. - The Moruga Blueberry Project is expected to require a total investment of approximately $50 million, with $15.0 million anticipated for fiscal 2023 capital expenditures[124].