Limoneira Co (LMNR) Reports Fiscal Fourth Quarter and Full Year 2023 Results
Revenue: Total net revenue increased 4% to $41.4 million in Q4 and reached $179.9 million for the full fiscal year.
Net Income: Net income applicable to common stock was $8.9 million for fiscal year 2023, a significant improvement from a net loss of $737,000 in fiscal year 2022.
Adjusted EBITDA: Adjusted EBITDA was a loss of $1.3 million in Q4, but improved from a loss of $3.8 million in the same period of the previous fiscal year.
Debt Reduction: Long-term debt reduced to $40.6 million at the end of fiscal year 2023 from $104.1 million at the end of fiscal year 2022.
Real Estate Development: The Harvest at Limoneira project completed Phase 1 sales, with increased total expected proceeds of $131 million over nine fiscal years.
Strategic Shift: Limoneira continues to progress towards an "asset-lighter" business model, with significant growth in brokered lemon sales and farm management revenue.
On December 21, 2023, Limoneira Co (NASDAQ:LMNR) released its 8-K filing, announcing its financial results for the fiscal fourth quarter and full year ended October 31, 2023. Limoneira, an agribusiness company with a focus on fresh lemons, lemon packing, avocados, and other agribusiness segments, reported a year-over-year increase in revenue and a significant improvement in net income for the full fiscal year.
Performance and Challenges
Limoneira achieved a 4% increase in total net revenue for the fourth quarter, reaching $41.4 million, and closed the fiscal year with $179.9 million in revenue. Despite harsh weather conditions and softer pricing for most of the year, the company achieved its full-year avocado and revised lemon volume guidance. The strategic shift towards a lighter asset model is reflected in the growth of brokered lemons and other lemon sales, which increased by 24% to $30.3 million compared to the previous year. Farm management revenue also reached $9.9 million in fiscal year 2023.
However, the company faced challenges, including an operating loss of $9.7 million in the fourth quarter due to increased costs and expenses. Net loss applicable to common stock for the fourth quarter was $3.6 million, a slight decrease from the net loss of $2.8 million in the same quarter of the previous fiscal year. Adjusted net loss for diluted EPS in the fourth quarter was $2.6 million or $0.15 per diluted share, an improvement from $5.7 million or $0.32 per diluted share in the fourth quarter of the previous fiscal year.
Financial Achievements
The company's financial achievements include a significant reduction in long-term debt, which was brought down to $40.6 million from $104.1 million at the end of the previous fiscal year. This reduction in debt has led to the lowest year-end net debt position since Limoneira became a publicly traded company. Additionally, the Harvest at Limoneira project has seen a 14% increase in expected proceeds, now totaling $131 million spread out over nine fiscal years.
Key Financial Metrics
Limoneira's balance sheet shows a strong liquidity position with $3.6 million in cash on hand. The company's net cash used in operating activities was $15.9 million for the fiscal year, while net cash provided by investing activities was $90.6 million, primarily due to the sale of its Northern Properties. The company's equity in investments stood at $78.8 million, and total assets were valued at $301.2 million.
"I am pleased with our performance in fiscal year 2023 as we achieved our full year avocado and revised lemon volume guidance despite harsh weather conditions and softer pricing throughout most of the year," said Harold Edwards, President and CEO of Limoneira.
Analysis of Performance
Limoneira's performance in fiscal year 2023 demonstrates resilience in the face of external challenges. The company's strategic initiatives, including asset sales and a shift towards an asset-lighter business model, have strengthened its financial position and set the stage for improved margins in fiscal year 2024. The company's real estate development project, Harvest at Limoneira, continues to progress, contributing to the company's long-term revenue stream.
For more detailed information on Limoneira's financial performance, investors and interested parties are encouraged to review the full 8-K filing.
Explore the complete 8-K earnings release (here) from Limoneira Co for further details.
This article first appeared on GuruFocus.
