Mission(US:AVO)2024-06-06 21:01Financial Performance - Total revenue increased 35% to $297.6 million compared to the same period last year, driven by a 22% increase in average per-unit avocado selling prices and an 8% increase in avocado volume sold [2]. - Net income for the second quarter was $7.0 million, or $0.10 per diluted share, compared to a net loss of $(4.6) million, or $(0.07) per diluted share, for the same period last year [5]. - Adjusted EBITDA was $20.2 million, an increase of $12.6 million or 166% compared to $7.6 million in the prior year period, primarily driven by stronger gross profit performance from the Marketing & Distribution segment [6]. - Net income for the six months ended April 30, 2024, was $9.0 million, a significant improvement from a net loss of $15.3 million in the same period of 2023 [29]. - Adjusted net income for the six months ended April 30, 2024, was $16.5 million, compared to a loss of $4.5 million in the same period of 2023 [33]. - The company reported a diluted earnings per share of $0.10 for the three months ended April 30, 2024, compared to a loss of $0.07 per share in the same period last year [24]. - The adjusted net income per diluted share for the six months ended April 30, 2024, was $0.23, compared to a loss of $0.06 per share in the same period of 2023 [33]. Sales and Revenue Growth - Marketing & Distribution segment net sales increased 33% to $287.1 million for the quarter, due to a 22% increase in average per-unit avocado sales prices and an 8% increase in avocado volume sold [6]. - Blueberries segment net sales increased $8.3 million to $10.0 million, driven by higher volumes attributed to the timing of the harvest season compared to the same period last year [8]. - Net sales for the three months ended April 30, 2024, were $297.6 million, an increase from $221.1 million for the same period in 2023, representing a growth of 34.6% [26]. - Total net sales for the six months ended April 30, 2024, reached $556.3 million, up from $434.6 million in the same period of 2023, reflecting a growth of 28.0% [36]. - Avocado sales for the three months ended April 30, 2024, were $267.5 million, compared to $202.9 million in the same period of 2023, indicating a 31.8% increase [38]. - Total segment sales for the three months ended April 30, 2024, were $298.5 million, compared to $223.0 million in the same period of 2023, an increase of 33.8% [36]. Cash Flow and Liquidity - Cash flow from operations for the six months ended April 30, 2024, was $12.9 million, compared to cash used of $(26.1) million in the prior year period [10]. - Cash and cash equivalents were $46.2 million as of April 30, 2024, compared to $42.9 million as of October 31, 2023 [9]. - Cash, cash equivalents, and restricted cash at the end of the period totaled $47.2 million, up from $22.2 million at the end of the same period in 2023 [31]. - Total cash, cash equivalents, and restricted cash decreased from $53.9 million at the beginning of the period to $47.2 million at the end [29]. - Net cash provided by operating activities was $12.9 million, a recovery from a net cash used of $26.1 million in the prior year [29]. Assets and Liabilities - Total current assets increased to $276.3 million as of April 30, 2024, up from $220.1 million as of October 31, 2023, marking a growth of 25.5% [22]. - Total liabilities rose to $426.9 million as of April 30, 2024, compared to $386.5 million as of October 31, 2023, indicating an increase of 10.5% [23]. - Total equity increased to $540.0 million as of April 30, 2024, up from $528.3 million as of October 31, 2023, showing a growth of 2.2% [23]. - Inventory levels rose to $94.9 million as of April 30, 2024, compared to $70.8 million as of October 31, 2023, reflecting a 33.9% increase [22]. Operational Highlights - Operating income for the three months ended April 30, 2024, was $12.3 million, a significant recovery from an operating loss of $1.2 million in the same period last year [26]. - Marketing and Distribution adjusted EBITDA for the six months ended April 30, 2024, was $32.7 million, up from $13.2 million in the same period of 2023, representing a 147.0% increase [35]. - Total adjusted EBITDA for the six months ended April 30, 2024, was $39.4 million, compared to $9.9 million in the same period of 2023, reflecting a 297.0% increase [35]. - Adjusted EBITDA for the three months ended April 30, 2024, was $20.2 million, compared to $7.6 million for the same period in 2023, representing a 165.8% increase [35]. - International Farming adjusted EBITDA for the three months ended April 30, 2024, was $(2.2) million, an improvement from $(1.1) million in the same period of 2023 [35]. Market Outlook - The company expects Peruvian avocado crop yields to be more than 50% lower than recent seasons due to warmer temperatures correlated with El Niño, negatively impacting exportable volumes [12]. - Overall industry volumes are expected to decline by 10-15% in the fiscal 2024 third quarter versus the prior year period, primarily due to an earlier conclusion to the 2023/2024 Mexican harvest season [13]. - Capital expenditures are now expected in the range of $40 to $45 million, reflecting an acceleration of planned investment in the company's blueberry joint venture [13].