Financial Performance - Total revenue reached $380.3 million, a 28% increase year-over-year[2] - Adjusted EBITDA was $19.1 million, a 5% decrease year-over-year[2] Operational Highlights - Avocado volume sold was 166.4 million pounds, a 1% decrease year-over-year[2] - Average selling price for avocados increased by 26% year-over-year to $2.00 per pound[2] - The company's diversification strategy yielded positive results across all segments[3] - Mango business achieved record volumes and gained significant market share[3] - Blueberries posted 57% revenue growth[3] - International Farming adjusted EBITDA turned positive due to improved utilization and efficiencies[3] Strategic Positioning - The company is well-positioned for strong second-half cash generation due to increased Peruvian supply meeting continued strong demand[3]

Financial Data and Key Metrics Changes - The company reported record second quarter revenue of $380.3 million, an increase of 28% compared to the prior year period [5][14] - Adjusted EBITDA was $19.1 million, down from $20.2 million in the previous year, primarily due to lower per unit gross margins on avocados sold [17] - Gross profit was $28.4 million, compared to $31 million in the prior year, mainly due to challenges in obtaining necessary Mexican fruit supply [15][16] Business Line Data and Key Metrics Changes - The Marketing and Distribution segment net sales increased 26% to $362.5 million, driven by favorable avocado pricing dynamics [17] - The International Farming segment saw net sales increase by $6.7 million to $8.1 million, with adjusted EBITDA improving by $3.7 million to a positive $1.5 million [18] - The blueberry segment's net sales increased 57% to $15.7 million, driven by higher volumes from increased acreage and yields [18] Market Data and Key Metrics Changes - The pricing environment remained favorable throughout the quarter, with a 26% increase in per unit avocado selling prices [14][15] - The company anticipates industry volumes to be approximately 10% to 15% higher in the fiscal third quarter compared to the prior year, primarily due to a strong Peruvian harvest outlook [21][22] Company Strategy and Development Direction - The company is focused on expanding its competitive position globally by enhancing market access and leveraging its global sourcing network [5][7] - A forward distribution center in the UK has been established to accelerate reach in the European market, resulting in strong customer penetration and higher volumes [7] - The diversification strategy aims to optimize facility utilization year-round, positioning the company for stronger performance during peak harvest seasons [10][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the quality and sizing of the upcoming Peruvian avocado harvest, expecting good production and quality [26][30] - The company is optimistic about generating customary cash flow increases in the second half of the fiscal year, aided by a more normal Peruvian crop [11][12] - Management noted that the higher price environment has amplified normal seasonal dynamics but expects a meaningful step up in cash generation in the second half [20][21] Other Important Information - The company executed $5.2 million in share repurchases during the second quarter, reflecting belief that the share price is undervalued [12][21] - Capital expenditures for the fiscal year to date were $28 million, primarily for avocado and blueberry farming investments [20] Q&A Session Summary Question: Outlook for the International Farming segment - Management indicated that fruit quality from Peru is expected to be good, with sizing also looking favorable [26][30] Question: Co-packer volume in the second quarter - Management confirmed that they were able to reach normalized levels of co-packer volume by leveraging other source markets [32][33] Question: Changes in behavior due to tariff uncertainty - Management noted that there was initial skittishness among suppliers during the tariff announcements, but by April, operations returned to normal [41][42] Question: Market share in the mango business - The company is now the second largest mango distributor in the U.S., with market share increasing from below 5% to closer to 10% [46][48]

Financial Data and Key Metrics Changes - The company achieved record first quarter revenue of $334.2 million, a 29% increase compared to the same period last year [7][20] - Gross profit increased by $2.8 million to $31.5 million, although gross profit margin decreased by 170 basis points to 9.4% of revenue [20][21] - Adjusted net income for the quarter was $7.1 million or $0.10 per diluted share, compared to $6.7 million or $0.09 per diluted share last year [21] - Adjusted EBITDA was $17.7 million compared to $19.2 million last year, primarily due to lower per unit gross margins [22] Business Line Data and Key Metrics Changes - The Marketing & Distribution segment net sales increased 32% to $295.8 million, driven by avocado pricing and volume dynamics [23] - The International Farming segment saw total sales increase by 59% to $9.2 million, with adjusted EBITDA improving to $1.8 million from negative $0.5 million [24][25] - The Blueberry segment's net sales increased 12% to $36.4 million, driven by a 70% increase in volumes sold, although average per unit selling prices decreased by 33% [25] Market Data and Key Metrics Changes - The company experienced industry supply challenges in Mexico, impacting avocado supply and necessitating increased procurement through co-packers and spot market purchases [8][11] - The dynamics faced in the quarter highlighted the importance of a diversified sourcing strategy, including key growing geographies like Peru and Colombia [13][14] Company Strategy and Development Direction - The company is strategically expanding its blueberry and mango segments to capitalize on growing consumer demand for healthy snacks [9][10] - The focus on operational efficiency and capital allocation aims to strengthen the long-term cost structure and enhance financial performance [12][17] - The company is committed to navigating market dynamics and delivering long-term value to shareholders through a diversified business model [16][17] Management's Comments on Operating Environment and Future Outlook - Management noted that the overall industry harvest out of Mexico is unlikely to be as large as initially expected, which may impact supply [40] - The company anticipates that working capital strains typically seen in the first half of the fiscal year will unwind in the second half as they transition to harvesting their own fruit [45][48] - Future avocado pricing is expected to be higher year-over-year, indicative of continued strength in demand [32] Other Important Information - Cash and cash equivalents were $40.1 million as of January 31, 2025, with capital expenditures of $14.8 million for the quarter [27][30] - The projected CapEx budget for fiscal 2025 remains unchanged at $50 million to $55 million, reflecting ongoing investments in farming and infrastructure [30] Q&A Session Summary Question: Can you elaborate on sourcing from co-packers? - Management indicated that sourcing from co-packers was higher than typical due to a slight decrease in the overall crop in Mexico, but they expect to secure more inventory directly in the near future [38][41] Question: What is the visibility on working capital unwinding? - Management stated that working capital strains are normal for the first half of the fiscal year and typically unwind in the second half, with expectations for improvement as they transition to harvesting their own fruit [45][48] Question: Have you observed any changes in supplier behavior regarding tariffs? - Management noted that there was more supplier movement and conversations leading up to the March tariff announcement, but overall supply remained consistent and they were able to meet customer requirements [52][53]