Limoneira Company Announces First Quarter Fiscal Year 2026 Financial Results
Total Costs and Expenses Decline 27% Year-Over-Year Reflecting Disciplined Execution of Operational Transformation; Tracking Toward
Company Reiterates Avocado and Lemon Volume Guidance for Full Year Fiscal 2026
Near-Term Water Monetization Expected in Fiscal Year 2026 as Company Advances Water Value Creation Strategy
The Company continues to execute on its value creation strategy of growing agriculture income and monetizing land and water assets.
-
Agriculture initiatives include:
- Streamlining operations;
- Expanding avocado production;
- Optimizing lemon packing with recently announced Sunkist partnership; and
- Expanding organic recycling facility.
-
Land and water assets initiatives include:
- Selling non-strategic land assets (remaining near-term pipeline); and
- Selling certain water rights (near and medium-term pipeline).
Management Comments
Fiscal Year 2026 First Quarter Results
For the first quarter of fiscal year 2026, total net revenues were
Agribusiness revenues in the first quarter of fiscal year 2026 include
The Company recognized no avocado revenue in the first quarter of fiscal year 2026, compared to
The Company recognized
Specialty citrus and wine grape revenues were
Due to the termination of the farm management agreement with
Total costs and expenses in the first quarter of fiscal year 2026 were
Operating loss for the first quarter of fiscal year 2026 was
On
Net loss applicable to common stock, after preferred dividends, for the first quarter of fiscal year 2026 was
Adjusted net loss for diluted EPS in the first quarter of fiscal year 2026 was
Non-GAAP adjusted EBITDA was a loss of
Balance Sheet and Liquidity
During the first quarter of fiscal year 2026, net cash used in operating activities was
Long-term debt as of
Real Estate Development and Water Transactions
In
In
The Company’s farming operations in
Fiscal Year 2026 Guidance and Longer-Term Outlook
The Company continues to expect fresh lemon volumes to be in the range of 4.0 million to 4.5 million cartons for fiscal year 2026. The Company continues to expect avocado volumes to be in the range of 5.0 million to 6.0 million pounds for fiscal year 2026.
The Company expects to receive total proceeds of approximately
Harvest at Limoneira Cash Flow Projections (in millions)
|
Fiscal Year |
|
2024 Actual |
|
2025 Actual |
2026 |
|
2027 |
|
2028 |
|
2029 |
|
2030 |
|
|
Projected Distributions |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company has 800 acres of non-bearing avocados estimated to become full bearing over the next two to four years, which the Company expects will enable strong organic growth in the coming years. Additionally, the Company plans to continue expanding its plantings of avocados over the next two fiscal years. The foregoing describes organic growth opportunities and does not include potential acquisition opportunities for the Company in its highly fragmented industry.
Conference Call Information
The Company will host a conference call to discuss its financial results on
About
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Limoneira’s current expectations about future events and can be identified by terms such as “could,” “expect,” “may,” “anticipate,” “outlook,” “plans,” “intend,” “should,” “will,” “likely,” “strive,” and similar expressions referring to future periods.
|
|
|||||||
|
CONSOLIDATED BALANCE SHEETS (UNAUDITED) |
|||||||
|
(in thousands, except share and per share data) |
|||||||
|
|
|
|
|
||||
|
Assets |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash |
$ |
1,267 |
|
|
$ |
1,509 |
|
|
Accounts receivable, net |
|
10,282 |
|
|
|
15,432 |
|
|
Cultural costs |
|
1,784 |
|
|
|
2,406 |
|
|
Prepaid expenses and other current assets |
|
9,722 |
|
|
|
4,444 |
|
|
Receivables/other from related parties, net |
|
2,934 |
|
|
|
2,973 |
|
|
Assets held for sale |
|
— |
|
|
|
13,718 |
|
|
Total current assets |
|
25,989 |
|
|
|
40,482 |
|
|
Property, plant and equipment, net |
|
173,549 |
|
|
|
172,645 |
|
|
Real estate development |
|
11,133 |
|
|
|
10,628 |
|
|
Equity in investments |
|
72,660 |
|
|
|
72,167 |
|
|
|
|
1,373 |
|
|
|
1,506 |
|
|
Intangible assets, net |
|
2,441 |
|
|
|
2,621 |
|
|
Other assets |
|
20,385 |
|
|
|
11,088 |
|
|
Total assets |
$ |
307,530 |
|
|
$ |
311,137 |
|
|
|
|
|
|
||||
|
Liabilities, Convertible Preferred Stock and Stockholders’ Equity |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Accounts payable |
$ |
6,517 |
|
|
$ |
7,896 |
|
|
Growers and suppliers payable |
|
2,461 |
|
|
|
6,885 |
|
|
Accrued liabilities |
|
6,629 |
|
|
|
9,290 |
|
|
Payables to related parties |
|
6,749 |
|
|
|
5,989 |
|
|
Current portion of long-term debt |
|
25 |
|
|
|
31 |
|
|
Total current liabilities |
|
22,381 |
|
|
|
30,091 |
|
|
Long-term liabilities: |
|
|
|
||||
|
Long-term debt, less current portion |
|
89,918 |
|
|
|
72,450 |
|
|
Deferred income taxes |
|
12,563 |
|
|
|
15,378 |
|
|
Other long-term liabilities |
|
2,018 |
|
|
|
2,381 |
|
|
Total liabilities |
|
126,880 |
|
|
|
120,300 |
|
|
Commitments and contingencies |
|
— |
|
|
|
— |
|
|
Series B Convertible Preferred Stock – |
|
1,479 |
|
|
|
1,479 |
|
|
Series B-2 Convertible Preferred Stock – |
|
9,331 |
|
|
|
9,331 |
|
|
Stockholders’ equity: |
|
|
|
||||
|
Series A Junior Participating Preferred Stock – |
|
— |
|
|
|
— |
|
|
Common Stock – |
|
181 |
|
|
|
180 |
|
|
Additional paid-in capital |
|
171,285 |
|
|
|
171,365 |
|
|
Accumulated deficit |
|
(11,980 |
) |
|
|
(1,070 |
) |
|
Accumulated other comprehensive loss |
|
(5,494 |
) |
|
|
(6,270 |
) |
|
|
|
(3,493 |
) |
|
|
(3,493 |
) |
|
Noncontrolling interests |
|
19,341 |
|
|
|
19,315 |
|
|
Total stockholders' equity |
|
169,840 |
|
|
|
180,027 |
|
|
Total liabilities, convertible preferred stock and stockholders’ equity |
$ |
307,530 |
|
|
$ |
311,137 |
|
|
|
|||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) |
|||||||
|
(in thousands, except per share data) |
|||||||
|
|
Three Months Ended
|
||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
Net revenues: |
|
|
|
||||
|
Agribusiness |
$ |
16,756 |
|
|
$ |
32,852 |
|
|
Other operations |
|
1,449 |
|
|
|
1,453 |
|
|
Total net revenues |
|
18,205 |
|
|
|
34,305 |
|
|
Costs and expenses: |
|
|
|
||||
|
Agribusiness |
|
23,019 |
|
|
|
33,499 |
|
|
Other operations |
|
1,071 |
|
|
|
1,171 |
|
|
Gain on sales of water rights |
|
— |
|
|
|
(1,488 |
) |
|
Loss (gain) on disposal of assets, net |
|
73 |
|
|
|
(6 |
) |
|
Selling, general and administrative |
|
4,593 |
|
|
|
6,475 |
|
|
Total costs and expenses |
|
28,756 |
|
|
|
39,651 |
|
|
Operating loss |
|
(10,551 |
) |
|
|
(5,346 |
) |
|
Other (expense) income: |
|
|
|
||||
|
Interest income |
|
8 |
|
|
|
15 |
|
|
Interest expense, net of patronage dividends |
|
(779 |
) |
|
|
(260 |
) |
|
Equity in earnings of investments, net |
|
176 |
|
|
|
102 |
|
|
Other (expense) income, net |
|
(863 |
) |
|
|
11 |
|
|
Total other expense |
|
(1,458 |
) |
|
|
(132 |
) |
|
Loss before income tax benefit |
|
(12,009 |
) |
|
|
(5,478 |
) |
|
Income tax benefit |
|
2,696 |
|
|
|
2,407 |
|
|
Net loss |
|
(9,313 |
) |
|
|
(3,071 |
) |
|
Net income attributable to noncontrolling interests, net |
|
(114 |
) |
|
|
(3 |
) |
|
Net loss attributable to |
|
(9,427 |
) |
|
|
(3,074 |
) |
|
Preferred dividends |
|
(125 |
) |
|
|
(125 |
) |
|
Net loss applicable to common stock |
$ |
(9,552 |
) |
|
$ |
(3,199 |
) |
|
|
|
|
|
||||
|
Basic net loss per common share |
$ |
(0.53 |
) |
|
$ |
(0.18 |
) |
|
|
|
|
|
||||
|
Diluted net loss per common share |
$ |
(0.53 |
) |
|
$ |
(0.18 |
) |
|
|
|
|
|
||||
|
Weighted-average common shares outstanding-basic |
|
17,909 |
|
|
|
17,791 |
|
|
Weighted-average common shares outstanding-diluted |
|
17,909 |
|
|
|
17,791 |
|
Non-GAAP Financial Measures
Due to significant depreciable assets associated with the nature of the Company’s operations and interest costs associated with the Company's capital structure, management believes that earnings before interest, income taxes, depreciation and amortization ("EBITDA") and adjusted EBITDA, which excludes stock-based compensation, loss (gain) on disposal of assets, net and foreign currency transaction losses, are important measures to evaluate the Company's results of operations between periods on a more comparable basis. Adjusted EBITDA in fiscal year 2025 did not exclude foreign currency transaction losses which has now been excluded as management believes this is a better representation of cash generated by operations. Foreign currency transaction losses were immaterial in fiscal year 2025. Such measurements are not prepared in accordance with
EBITDA and adjusted EBITDA are summarized and reconciled to net loss attributable to
|
|
Three Months Ended
|
||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
Net loss attributable to |
$ |
(9,427 |
) |
|
$ |
(3,074 |
) |
|
Interest income |
|
(8 |
) |
|
|
(15 |
) |
|
Interest expense, net of patronage dividends |
|
779 |
|
|
|
260 |
|
|
Income tax benefit |
|
(2,696 |
) |
|
|
(2,407 |
) |
|
Depreciation and amortization |
|
2,158 |
|
|
|
2,016 |
|
|
EBITDA |
|
(9,194 |
) |
|
|
(3,220 |
) |
|
Stock-based compensation |
|
344 |
|
|
|
932 |
|
|
Loss (gain) on disposal of assets, net |
|
73 |
|
|
|
(6 |
) |
|
Foreign currency transaction losses |
|
1,043 |
|
|
|
— |
|
|
Adjusted EBITDA |
$ |
(7,734 |
) |
|
$ |
(2,294 |
) |
The following is a reconciliation of net loss attributable to
|
|
Three Months Ended
|
||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
Net loss attributable to |
$ |
(9,427 |
) |
|
$ |
(3,074 |
) |
|
Effect of preferred stock and unvested, restricted stock |
|
(139 |
) |
|
|
(144 |
) |
|
Stock-based compensation |
|
344 |
|
|
|
932 |
|
|
Loss (gain) on disposal of assets, net |
|
73 |
|
|
|
(6 |
) |
|
Foreign currency transaction losses |
|
1,043 |
|
|
|
— |
|
|
Tax effect of adjustments at federal and state rates |
|
(402 |
) |
|
|
(255 |
) |
|
Adjusted net loss for diluted EPS |
$ |
(8,508 |
) |
|
$ |
(2,547 |
) |
|
|
|
|
|
||||
|
Diluted net loss per common share |
$ |
(0.53 |
) |
|
$ |
(0.18 |
) |
|
Adjusted diluted net loss per common share |
$ |
(0.48 |
) |
|
$ |
(0.14 |
) |
|
|
|
|
|
||||
|
Weighted-average common shares outstanding - diluted |
|
17,909 |
|
|
|
17,791 |
|
|
Adjusted weighted-average common shares outstanding - diluted |
|
17,909 |
|
|
|
17,791 |
|
|
Supplemental Information |
||||||||||||||||||
|
(in thousands): |
||||||||||||||||||
|
|
Agribusiness Segment Information for the Three Months Ended |
|||||||||||||||||
|
|
Fresh Lemons |
Lemon Packing |
Avocados |
Other Agribusiness |
Total Agribusiness |
|||||||||||||
|
Revenues from external customers |
$ |
8,718 |
|
$ |
6,958 |
|
$ |
— |
|
$ |
1,080 |
$ |
16,756 |
|
||||
|
Costs and expenses, excluding depreciation and amortization: |
|
|
|
|
|
|||||||||||||
|
Labor and benefits |
|
— |
|
|
3,801 |
|
|
— |
|
|
— |
|
3,801 |
|
||||
|
Packing supplies and fruit treatments |
|
— |
|
|
2,047 |
|
|
— |
|
|
— |
|
2,047 |
|
||||
|
Harvest costs |
|
998 |
|
|
— |
|
|
— |
|
|
169 |
|
1,167 |
|
||||
|
Growing costs |
|
2,548 |
|
|
— |
|
|
29 |
|
|
807 |
|
3,384 |
|
||||
|
Third party grower and supplier costs |
|
7,492 |
|
|
— |
|
|
— |
|
|
30 |
|
7,522 |
|
||||
|
Other segment items |
|
— |
|
|
3,152 |
|
|
— |
|
|
24 |
|
3,176 |
|
||||
|
Total costs and expenses, excluding depreciation and amortization |
|
11,038 |
|
|
9,000 |
|
|
29 |
|
|
1,030 |
|
21,097 |
|
||||
|
Depreciation and amortization |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
1,922 |
|
||||
|
Operating (loss) income |
$ |
(2,320 |
) |
$ |
(2,042 |
) |
$ |
(29 |
) |
$ |
50 |
$ |
(6,263 |
) |
||||
|
|
Agribusiness Segment Information for the Three Months Ended |
|||||||||||||||||
|
|
Fresh Lemons |
Lemon Packing |
Avocados |
Other Agribusiness |
Total Agribusiness |
|||||||||||||
|
Revenues from external customers |
$ |
16,446 |
|
$ |
11,815 |
|
$ |
162 |
|
$ |
4,429 |
$ |
32,852 |
|
||||
|
Costs and expenses, excluding depreciation and amortization: |
|
|
|
|
|
|||||||||||||
|
Labor and benefits |
|
— |
|
|
4,215 |
|
|
— |
|
|
— |
|
4,215 |
|
||||
|
Packing supplies and fruit treatments |
|
— |
|
|
3,111 |
|
|
— |
|
|
— |
|
3,111 |
|
||||
|
Harvest costs |
|
1,761 |
|
|
— |
|
|
15 |
|
|
45 |
|
1,821 |
|
||||
|
Growing costs |
|
2,926 |
|
|
— |
|
|
22 |
|
|
1,314 |
|
4,262 |
|
||||
|
Third party grower and supplier costs |
|
12,472 |
|
|
— |
|
|
— |
|
|
1,880 |
|
14,352 |
|
||||
|
Other segment items |
|
— |
|
|
3,265 |
|
|
— |
|
|
699 |
|
3,964 |
|
||||
|
Total costs and expenses, excluding depreciation and amortization |
|
17,159 |
|
|
10,591 |
|
|
37 |
|
|
3,938 |
|
31,725 |
|
||||
|
Depreciation and amortization |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
1,774 |
|
||||
|
Operating (loss) income |
$ |
(713 |
) |
$ |
1,224 |
|
$ |
125 |
|
$ |
491 |
$ |
(647 |
) |
||||
|
Supplemental Information (continued) |
|||||||||||||
|
(in thousands, except acres and average price amounts): |
|||||||||||||
|
Lemons |
Q1 2026 |
Q1 2025 |
|
Lemon Packing |
Q1 2026 |
Q1 2025 |
|||||||
|
|
|
|
|
Cartons packed and sold |
|
681 |
|
|
1,147 |
||||
|
Acres harvested |
|
1,400 |
|
1,600 |
|
Revenue |
$ |
6,958 |
|
$ |
11,815 |
||
|
|
|
147 |
|
194 |
|
Direct costs |
$ |
9,000 |
|
$ |
10,591 |
||
|
Third-party grower cartons sold |
|
534 |
|
953 |
|
Operating (loss) income |
$ |
(2,042 |
) |
$ |
1,224 |
||
|
Average price per carton |
$ |
17.41 |
$ |
18.44 |
|
|
|
|
|||||
|
|
|
|
|
Avocados |
Q1 2026 |
Q1 2025 |
|||||||
|
|
|
|
|
Pounds sold |
|
— |
|
|
73 |
||||
|
Lemon revenue |
$ |
37 |
$ |
1,263 |
|
Average price per pound |
$ |
— |
|
$ |
2.25 |
||
|
40-pound carton equivalents |
|
— |
|
113 |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|||||||
|
Other: |
|
|
|
|
|
|
|||||||
|
Packing and handling |
$ |
2,857 |
$ |
4,545 |
|
|
|
|
|||||
|
Lemon by-product sales |
$ |
— |
$ |
356 |
|
|
|
|
|||||
|
Brokered lemons and other lemon sales |
$ |
928 |
$ |
945 |
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|||||||
|
Agribusiness costs and expenses |
Q1 2026 |
Q1 2025 |
|
|
|
|
|||||||
|
Packing costs |
$ |
9,000 |
$ |
10,591 |
|
|
|
|
|||||
|
Harvest costs |
|
1,167 |
|
1,821 |
|
|
|
|
|||||
|
Growing costs |
|
3,384 |
|
4,262 |
|
|
|
|
|||||
|
Third-party grower and supplier costs |
|
7,522 |
|
14,352 |
|
|
|
|
|||||
|
Other costs |
|
24 |
|
699 |
|
|
|
|
|||||
|
Depreciation and amortization |
|
1,922 |
|
1,774 |
|
|
|
|
|||||
|
Agribusiness costs and expenses |
$ |
23,019 |
$ |
33,499 |
|
|
|
|
|||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20260312786886/en/
Investors
Managing Partner
ICR 646-277-1254
Source:
