Limoneira: A Unique Business Still Going Strong

Core Viewpoint - Limoneira Company is viewed as a hold at current levels, with a recent trade closing at $20.64 and a subsequent nearly 20% increase in a long-term position [1] Financial Performance - Fiscal Q3 results showed total net revenue of $63.3 million, up from $52.5 million a year ago, which was slightly below expectations by $0.26 million [5] - Agribusiness revenue increased to $61.8 million from $51.1 million last year, while other operations revenue remained flat at $1.5 million [5] - Adjusted EPS rose to $0.42 from $0.02 a year ago, exceeding estimates by $0.08, with adjusted net income improving to $7.8 million from $0.4 million [6] Balance Sheet - Long-term debt decreased to $40.0 million as of July 31, 2024, down from over $100 million in fiscal 2023, indicating a significant reduction in debt levels [3] - Net debt position at quarter end was $39.6 million, down sequentially [3] Real Estate Ventures - The joint venture with Lewis company generated $30.0 million in distributions, with Limoneira receiving $15.0 million [4] - The Santa Paula City Council approved an increase in residential units from 1,500 to 2,050, which will add 250 single-family homesites [4] Future Outlook - Management updated guidance for avocado volumes to 14.5 million to 15.5 million pounds for the fiscal year, a more than 50% increase from previous guidance [7] - Fresh lemon volume guidance was lowered to 4.5 million to 5.0 million cartons due to lower fresh utilization from late-season rains [7] - The company anticipates $180 million in proceeds from Harvest real estate projects over the next seven years, with the lowest year expected to be $8 million [7]