Limoneira Company (Nasdaq: LMNR), a diversified citrus grower, packer, and marketer with related agribusiness and real estate operations, has announced its financial results for the third quarter ending July 31, 2024.
Management’s Perspective
Harold Edwards, President and CEO of Limoneira, expressed satisfaction with the company’s performance, particularly the avocado segment, which saw strong demand and favorable pricing. Edwards highlighted the anticipated record avocado revenue for the fiscal year, with a projected 4-5 million pounds in the typically slower fourth quarter—a company first. This success supports Limoneira’s strategic decision to expand avocado production by 1,000 acres over the next three years.
Edwards also noted the momentum in the company’s real estate joint venture, Harvest at Limoneira, benefiting from lower interest rates and steady home sales. This dual success from agriculture and real estate is expected to drive strong EBITDA growth in the future. Additionally, Limoneira is actively exploring strategic alternatives to maximize shareholder value, with guidance from Stephens, Inc.
Q3 2024 Financial Overview
For Q3 2024, Limoneira’s total net revenue increased to $63.3 million, up from $52.5 million in the same period last year. Agribusiness revenue rose to $61.8 million from $51.1 million, while other operations revenue reached $1.5 million.
- Fresh packed lemon sales reached $25.8 million, with 1.4 million cartons sold at an average price of $18.43 per carton.
- Avocado revenue jumped to $13.9 million from $3.5 million, with sales totaling 8.9 million pounds at $1.57 per pound.
- Orange revenue was $1.2 million, while specialty citrus and other crops contributed $0.6 million.
The company reported total costs and expenses of $54.3 million, leading to operating income of $9.0 million, compared to a $1.5 million loss in Q3 2023. Net income applicable to common stock reached $6.5 million, a notable improvement from the $1.3 million loss in the prior year. Adjusted net income for diluted EPS was $7.8 million, or $0.42 per share, compared to $0.4 million, or $0.02 per share, in Q3 2023.
Non-GAAP adjusted EBITDA surged to $13.8 million from $2.8 million in the previous year.
First Nine Months of FY 2024
For the first nine months of FY 2024, Limoneira’s total net revenue was $147.6 million, up from $138.5 million in the same period last year. Operating losses totaled $3.4 million, compared to $20.5 million in operating income in FY 2023. Adjusted net income for diluted EPS was $12.9 million, or $0.70 per share, versus an adjusted net loss of $5.0 million in FY 2023.
Balance Sheet and Liquidity
As of July 31, 2024, the company had $40.0 million in long-term debt and a net debt position of $39.6 million. During the first nine months of FY 2024, Limoneira generated $11.3 million in net cash from operating activities.
Real Estate Development
The company’s joint venture, Harvest at Limoneira, has successfully closed sales on 1,261 residential units since the project’s inception. In May 2024, the Santa Paula City Council approved an expansion of the project, increasing the number of residential units from 1,500 to 2,050, providing 250 additional single-family homes in Phase 3. A separate venture will add 300 multi-family rental homes in a mixed-use development.
Limoneira’s Q3 results reflect strong growth in both its agribusiness and real estate segments, positioning the company for continued success in the coming quarters.
