Limoneira Company Announces Consolidated Unaudited Earnings Results for the Fourth Quarter and Full Year Ended October 31, 2016; Provides Earnings Guidance for the Full Year Ending October 31, 2017
January 10, 2017 at 04:05 pm
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Limoneira Company announced consolidated unaudited earnings results for the fourth quarter and full year ended October 31, 2016. For the fourth quarter of fiscal year 2016, revenue increased 37% to $19.5 million, compared to revenue of $14.2 million in the fourth quarter of the previous fiscal year. Agribusiness revenue was $18.2 million, compared to $12.9 million in the fourth quarter last year, primarily due to stronger lemon sales. Rental operations revenue was $1.3 million in the fourth quarter of fiscal year 2016, which is similar to the same period last year. Real estate development revenue was not significant in the fourth quarter of fiscal year 2016 or 2015. For the quarter, the company reported operating loss was $887,000 compared with $4,878,000 for the same period a year ago. Income before income taxes was $198,000 compared with $1,151,000 for the same period a year ago. Net loss applicable to common stock was $138,000 compared with income of $496,000 for the same period a year ago. Basic and diluted net loss per common share was $0.01 compared with earnings per share of $0.04 for the same period a year ago. EBITDA was $2.0 million in the fourth quarter of fiscal year 2016 compared to $2.4 million in the same period of fiscal year 2015.
For the full year, the company reported total net revenues of $111,789,000 compared with $100,311,000 for the same period a year ago. Operating income was $9,188,000 compared with $4,583,000 for the same period a year ago. Income before income taxes was $13,325,000 compared with $11,056,000 for the same period a year ago. Net income applicable to common stock was $7,430,000 compared with $6,447,000 for the same period a year ago. Basic and diluted net income per common share was $0.52 compared with $0.46 for the same period a year ago. EBITDA for fiscal year 2016 increased 30% to $20.1 million compared to EBITDA of $15.4 million in fiscal year 2015. Higher fiscal year 2016 operating income reflects increased revenue for all of agricultural crops, particularly lemons and avocados, offset primarily by higher third-party grower expense to greater lemon procurement costs and higher packing costs related to increased lemon sales volume.
The company provided earnings guidance for the full year ending October 31, 2017. For the year, the company expects to sell between 3.1 million and 3.5 million cartons of fresh lemons at an average price of approximately $23.00 per carton, and expects to sell approximately 8.5 to 9.0 million pounds of avocados at approximately $0.80 per pound. The company expects operating income for fiscal year 2017 to be approximately $11.4 million to $11.9 million compared to operating income of $9.2 million for fiscal year 2016. Fiscal year 2017 EBITDA is expected to be in the range of $18.3 million to $18.8 million. The Company expects fiscal year 2017 earnings per diluted share to be in the range of $0.38 to $0.42. Excluding the combined gain of approximately $4.4 million associated with the sale of Calavo stock and the conservation easement, and $1.2 million of transaction costs incurred in the first quarter of 2016 in connection with the Limoneira /Lewis joint venture fiscal year, fiscal year 2016 EBITDA and diluted earnings per share were $16.9 million and $0.39, respectively.
Limoneira Company is primarily an agribusiness company. The Company's operations consist of fruit production, sales and marketing, rental operations, real estate, and capital investment activities. It operates in three business divisions: agribusiness, rental operations, and real estate development. The agribusiness division is comprised of four segments: fresh lemons, lemon packing, avocados, and other agribusiness, which includes oranges, specialty citrus and other crops. The agribusiness division includes its core operations of farming, harvesting, lemon packing and lemon sales operations. The rental operations division includes its residential and commercial rentals, leased land operations and organic recycling. The real estate development division includes its investments in real estate development projects. It markets and sells citrus directly to food service, wholesale, and retail customers throughout the United States, Canada, Asia, Australia, and other international markets.
Limoneira Company Announces Consolidated Unaudited Earnings Results for the Fourth Quarter and Full Year Ended October 31, 2016; Provides Earnings Guidance for the Full Year Ending October 31, 2017