Calavo(US:CVGW)2024-03-10 16:00Financial Performance - For the three months ended January 31, 2024, total gross sales were $129.657 million, a decrease from $136.073 million in the same period of 2023, representing a decline of approximately 4.3%[45] - Net sales for the same period were $127.606 million, down from $132.763 million year-over-year, indicating a decrease of about 3.9%[45] - The company reported a net loss attributable to Calavo Growers, Inc. of $6.267 million for the quarter ending January 31, 2024, compared to a net loss of $3.068 million for the same quarter in 2023[27] - Gross profit for the three months ended January 31, 2024, was $12,468,000, down 4.7% from $13,085,000 in the prior year[65] - For the three months ended January 31, 2024, net sales were $127,606,000, a decrease of 3.3% from $132,763,000 for the same period in 2023[65] Business Operations - The company is in non-binding negotiations for the potential sale of its Fresh Cut business for approximately $100 million, expected to close in the second quarter of fiscal 2024[44] - Avocados de Jalisco purchased approximately $2.5 million of avocados from its partners during the three months ended January 31, 2024, down from $3.7 million in the same period of 2023[29] - The company has not procured any avocados from entities owned or controlled by members of the Board of Directors for the three months ended January 31, 2024[48] Stock-Based Compensation - Stock-based compensation expense for restricted stock awards was less than $0.1 million for the three months ended January 31, 2024, compared to $0.7 million in the prior year[30] - The company recognized total stock-based compensation expense of $0.5 million for RSUs for both the three months ended January 31, 2024, and 2023[32] - As of January 31, 2024, there was $1.7 million of unrecognized stock-based compensation costs related to non-vested RSUs, expected to be recognized over a weighted-average period of 1.1 years[32] Inventory and Assets - As of January 31, 2024, total inventories amounted to $39,551,000, an increase of 25.1% from $31,571,000 on October 31, 2023[47] - The net carrying value of long-lived assets as of January 31, 2024, was $59,206,000, a decrease from $60,924,000 on October 31, 2023[67] - Advances to Don Memo totaled $6,500,000 as of January 31, 2024, down from $7,300,000 on October 31, 2023[50] Loans and Financial Obligations - The total outstanding bridge loan balance to Belher was $1,600,000 as of January 31, 2024, slightly down from $1,700,000 on October 31, 2023[53] - The total outstanding infrastructure loan balance to Don Memo was $1,600,000 as of January 31, 2024, unchanged from October 31, 2023[52] - The company incurred $4,200,000 and $5,000,000 of cost of sales to Don Memo for the three months ended January 31, 2024, and 2023, respectively[52] Foreign Operations - The company’s foreign operations in Mexico are subject to exchange rate fluctuations, with the functional currency of its foreign subsidiaries being the U.S. dollar[46] Shareholder Information - The company reported a total of 17,800 common shares outstanding as of January 31, 2024, compared to 17,743 shares a year earlier[27] - Sales to customers outside the U.S. increased to approximately $10,900,000 for the three months ended January 31, 2024, compared to $7,600,000 in 2023[66]