cvgw_Current folio_10Q

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549


 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended April 30, 2018

 

OR

 

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission file number: 000-33385

 

CALAVO GROWERS, INC.

(Exact name of registrant as specified in its charter)

 

California

33-0945304

(State of incorporation)

(I.R.S. Employer Identification No.)

 

1141-A Cummings Road

Santa Paula, California   93060

(Address of principal executive offices) (Zip code)

 

(805) 525-1245

(Registrant's telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     

Yes ☒   No ☐

 

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ☒   No  ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):

 

Emerging Growth Company ☐

 

 

 

Large accelerated filer ☒ 

Accelerated filer ☐

Non-accelerated filer ☐

Smaller Reporting Company ☐

Emerging growth company ☐

(Do not check if a smaller reporting company)

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act. 

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).Yes ☐ No ☒

 

Registrant's number of shares of common stock outstanding as of April 30, 2018 was 17,567,616

 


 

 

 


 

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CAUTIONARY STATEMENT

 

This Quarterly Report on Form 10-Q, including “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Item 2, contains forward-looking statements that involve risks, uncertainties and assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of Calavo Growers, Inc. and its consolidated subsidiaries (Calavo, the Company, we, us or our) may differ materially from those expressed or implied by such forward-looking statements and assumptions.  All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including, but not limited to, any projections of revenue, gross profit, expenses, earnings, earnings per share, tax provisions, cash flows, currency exchange rates, the impact of acquisitions or other financial items; any statements of the plans, strategies and objectives of management for future operations, including execution of restructuring and integration (including information technology systems integration) plans; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on Calavo and its financial performance; any statements regarding pending investigations, legal claims or tax disputes; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the impact of macroeconomic trends and events; the competitive pressures faced by Calavo's businesses; the development and transition of new products and services (and the enhancement of existing products and services) to meet customer needs; integration and other risks associated with business combinations; the hiring and retention of key employees; the resolution of pending investigations, legal claims and tax disputes; and other risks that are described herein, including, but not limited to, the items discussed in Item 1A, Risk Factors, in our Annual Report on Form 10-K for the fiscal year ended October 31, 2017, and those detailed from time to time in our other filings with the Securities and Exchange Commission. Calavo assumes no obligation and does not intend to update these forward-looking statements.

 

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CALAVO GROWERS, INC.

 

INDEX

 

 

    

PAGE

 

 

 

PART I. FINANCIAL INFORMATION 

 

 

 

 

Item 1. 

 

 

 

 

 

Consolidated Condensed Balance Sheets – April 30, 2018 and October 31, 2017

4

 

 

 

 

Consolidated Condensed Statements of Income – Three Months and Six Months Ended April 30, 2018 and 2017

5

 

 

 

 

Consolidated Condensed Statements of Comprehensive Income – Three Months and Six Months Ended April 30, 2018 and 2017

6

 

 

 

 

Consolidated Condensed Statements of Cash Flows – Three Months and Six Months Ended April 30, 2018 and 2017

7

 

 

 

 

Notes to Consolidated Condensed Financial Statements

8

 

 

 

Item 2. 

Management's Discussion and Analysis of Financial Condition and Results of Operations

21

 

 

 

Item 3. 

Quantitative and Qualitative Disclosures About Market Risk

29

 

 

 

Item 4. 

Controls and Procedures

29

 

 

 

PART II. OTHER INFORMATION 

 

 

 

 

Item 1. 

Legal Proceedings

29

 

 

 

Item 1A. 

Risk Factors

30

 

 

 

Item 6. 

Exhibits

30

 

 

 

 

Signatures

32

 

 

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PART I.  FINANCIAL INFORMATION

 

ITEM 1.  FINANCIAL STATEMENTS 

 

CALAVO GROWERS, INC.

CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

April 30, 

 

October 31, 

 

 

 

2018

 

2017

 

 

 

 

 

 

 

 

Assets

    

 

    

    

 

    

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

2,377

 

$

6,625

 

Accounts receivable, net of allowances of $3,234 (2018) $2,490 (2017)

 

 

76,925

 

 

69,750

 

Inventories, net

 

 

39,158

 

 

30,858

 

Prepaid expenses and other current assets

 

 

7,026

 

 

6,872

 

Advances to suppliers

 

 

2,719

 

 

4,346

 

Income taxes receivable

 

 

 —

 

 

1,377

 

Total current assets

 

 

128,205

 

 

119,828

 

Property, plant, and equipment, net

 

 

121,803

 

 

120,072

 

Investment in Limoneira Company

 

 

40,241

 

 

40,362

 

Investment in unconsolidated entities

 

 

33,297

 

 

33,019

 

Deferred income taxes

 

 

8,641

 

 

9,783

 

Goodwill

 

 

18,262

 

 

18,262

 

Other assets

 

 

24,330

 

 

22,791

 

 

 

$

374,779

 

$

364,117

 

Liabilities and shareholders' equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Payable to growers

 

$

27,373

 

$

16,524

 

Trade accounts payable

 

 

16,420

 

 

22,911

 

Accrued expenses

 

 

36,752

 

 

39,946

 

Income taxes payable

 

 

1,884

 

 

 —

 

Short-term borrowings

 

 

21,000

 

 

20,000

 

Dividend payable

 

 

 —

 

 

16,657

 

Current portion of long-term obligations

 

 

117

 

 

129

 

Total current liabilities

 

 

103,546

 

 

116,167

 

Long-term liabilities:

 

 

 

 

 

 

 

Long-term obligations, less current portion

 

 

383

 

 

439

 

Deferred rent

 

 

2,706

 

 

2,732

 

Other long-term liabilities

 

 

 —

 

 

657

 

Total long-term liabilities

 

 

3,089

 

 

3,828

 

Commitments and contingencies

 

 

 

 

 

 

 

Shareholders' equity:

 

 

 

 

 

 

 

Common stock ($0.001 par value, 100,000 shares authorized; 17,568 (2018) and 17,533 (2017) shares issued and outstanding)

 

 

18

 

 

18

 

Additional paid-in capital

 

 

156,069

 

 

154,243

 

Accumulated other comprehensive income

 

 

10,624

 

 

10,434

 

Noncontrolling interest

 

 

1,761

 

 

1,016

 

Retained earnings

 

 

99,672

 

 

78,411

 

Total shareholders' equity

 

 

268,144

 

 

244,122

 

 

 

$

374,779

 

$

364,117

 

 

The accompanying notes are an integral part of these consolidated condensed financial statements.

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CALAVO GROWERS, INC.

CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

Six months ended

 

 

 

April 30, 

 

April 30, 

 

 

 

2018

 

2017

 

2018

 

2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

    

$

264,405

    

$

270,162

    

$

512,333

    

$

496,716

 

Cost of sales

 

 

232,436

 

 

233,909

 

 

454,054

 

 

438,539

 

Gross profit

 

 

31,969

 

 

36,253

 

 

58,279

 

 

58,177

 

Selling, general and administrative

 

 

12,875

 

 

15,426

 

 

28,392

 

 

29,252

 

Operating income

 

 

19,094

 

 

20,827

 

 

29,887

 

 

28,925

 

Interest expense

 

 

(288)

 

 

(323)

 

 

(519)

 

 

(570)

 

Other income (expense), net

 

 

(26)

 

 

33

 

 

703

 

 

(36)

 

Income before provision for income taxes

 

 

18,780

 

 

20,537

 

 

30,071

 

 

28,319

 

Provision for income taxes

 

 

4,764

 

 

7,603

 

 

9,066

 

 

10,164

 

Net income

 

 

14,016

 

 

12,934

 

 

21,005

 

 

18,155

 

Less: Net loss attributable to noncontrolling interest

 

 

106

 

 

11

 

 

256

 

 

39

 

Net income attributable to Calavo Growers, Inc.

 

$

14,122

 

$

12,945

 

$

21,261

 

$

18,194

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Calavo Growers, Inc.’s net income per share:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.81

 

$

0.74

 

$

1.22

 

$

1.05

 

Diluted

 

$

0.80

 

$

0.74

 

$

1.21

 

$

1.04

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of shares used in per share computation:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

17,481

 

 

17,426

 

 

17,472

 

 

17,402

 

Diluted

 

 

17,580

 

 

17,539

 

 

17,561

 

 

17,486

 

 

The accompanying notes are an integral part of these consolidated condensed financial statements.

 

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CALAVO GROWERS, INC.

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

Six months ended

 

 

 

April 30, 

 

April 30, 

 

 

 

2018

 

2017

 

2018

 

2017

 

Net income

    

$

14,016

    

$

12,934

    

$

21,005

    

$

18,155

 

Other comprehensive income, before tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized investment gains (losses)

 

 

2,990

 

 

6,361

 

 

(121)

 

 

1,711

 

Income tax (expense) benefit related to items of other comprehensive income

 

 

(778)

 

 

(2,322)

 

 

311

 

 

(625)

 

Other comprehensive income, net of tax

 

 

2,212

 

 

4,039

 

 

190

 

 

1,086

 

Comprehensive income

 

 

16,228

 

 

16,973

 

 

21,195

 

 

19,241

 

Less: Net loss attributable to noncontrolling interest

 

 

106

 

 

11

 

 

256

 

 

39

 

Comprehensive income – Calavo Growers, Inc.

 

$

16,334

 

$

16,984

 

$

21,451

 

$

19,280

 

 

The accompanying notes are an integral part of these consolidated condensed financial statements.

 

 

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CALAVO GROWERS, INC.

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

Six months ended April 30, 

 

 

 

2018

 

2017

 

 

 

 

 

 

 

 

Cash Flows from Operating Activities:

    

 

    

    

 

    

 

Net income

 

$

21,005

 

$

18,155

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation and amortization

 

 

6,561

 

 

4,575

 

Provision for losses/recoveries on accounts receivable

 

 

(8)

 

 

1,424

 

Loss (income) from unconsolidated entities

 

 

(278)

 

 

403

 

Stock compensation expense

 

 

2,774

 

 

2,658

 

Deferred income taxes

 

 

1,453

 

 

 —

 

Effect on cash of changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable, net

 

 

(7,167)

 

 

(26,293)

 

Inventories, net

 

 

(8,300)

 

 

(6,785)

 

Prepaid expenses and other current assets

 

 

(224)

 

 

(357)

 

Advances to suppliers

 

 

1,627

 

 

2,934

 

Income taxes receivable/payable

 

 

3,261

 

 

4,684

 

Other assets

 

 

(2,263)

 

 

(1,321)

 

Payable to growers

 

 

10,849

 

 

16,516

 

Deferred rent

 

 

(26)

 

 

(21)

 

Trade accounts payable, accrued expenses and other long-term liabilities

 

 

(8,076)

 

 

6,709

 

Net cash provided by operating activities

 

 

21,188

 

 

23,281

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

Acquisitions of and deposits on property, plant, and equipment

 

 

(8,838)

 

 

(34,093)

 

Proceeds received for repayment of San Rafael note

 

 

232

 

 

216

 

Investment in FreshRealm

 

 

 —

 

 

(4,625)

 

Net cash used in investing activities

 

 

(8,606)

 

 

(38,502)

 

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

Payment of dividend to shareholders

 

 

(16,657)

 

 

(15,696)

 

Proceeds from revolving credit facility

 

 

119,000

 

 

83,500

 

Payments on revolving credit facility

 

 

(118,000)

 

 

(55,000)

 

Payment of minimum withholding taxes on net share settlement of equity awards

 

 

(1,158)

 

 

 —

 

Purchase of noncontrolling interest of Salsa Lisa

 

 

 —

 

 

(1,000)

 

Payments on long-term obligations

 

 

(68)

 

 

(22)

 

Proceeds from stock option exercises

 

 

53

 

 

65

 

Net cash provided by (used in) financing activities

 

 

(16,830)

 

 

11,847

 

Net decrease in cash and cash equivalents

 

 

(4,248)

 

 

(3,374)

 

Cash and cash equivalents, beginning of period

 

 

6,625

 

 

13,842

 

Cash and cash equivalents, end of period

 

$

2,377

 

$

10,468

 

Noncash Investing and Financing Activities:

 

 

 

 

 

 

 

Property, plant, and equipment included in trade accounts payable and accrued expenses

 

$

725

 

$

863

 

Noncash transfer of noncontrolling interest

 

$

1,001

 

$

 —

 

Unrealized investment gain (losses)

 

$

(121)

 

$

1,711

 

 

The accompanying notes are an integral part of these consolidated condensed financial statements.

 

 

 

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CALAVO GROWERS, INC.

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

(UNAUDITED)

 

1. Description of the business

 

Business

 

Calavo Growers, Inc. (Calavo, the Company, we, us or our), is a global leader in the avocado industry and an expanding provider of value-added fresh food.  Our expertise in marketing and distributing avocados, prepared avocados, and other perishable foods allows us to deliver a wide array of fresh and prepared food products to retail grocery, foodservice, club stores, mass merchandisers, food distributors and wholesalers on a worldwide basis. We procure avocados from California, Mexico and other growing regions around the world.  Through our various operating facilities, we (i) sort, pack, and/or ripen avocados, tomatoes and/or Hawaiian grown papayas, (ii) create, process and package guacamole and salsa and (iii) create, process and package a portfolio of healthy fresh foods including fresh-cut fruit, fresh-cut vegetables, and prepared foods. We distribute our products both domestically and internationally and report our operations in three different business segments:  Fresh products, Calavo Foods and Renaissance Food Group (RFG). 

 

The accompanying unaudited consolidated condensed financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements.  In the opinion of management, the accompanying unaudited consolidated condensed financial statements contain all adjustments, consisting of adjustments of a normal recurring nature necessary to present fairly the Company’s financial position, results of operations and cash flows.  The results of operations for interim periods are not necessarily indicative of the results that may be expected for a full year.  These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2017.

 

Recently Adopted Accounting Pronouncements 

 

In May 2017, the FASB issued an ASU, Stock Compensation (Topic 718), Scope of Modification Accounting. This ASU clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The guidance clarifies that modification accounting will be applied if the value, vesting conditions or classification of the award changes. The Company adopted this new standard beginning in the three months ended January 31, 2018. The adoption of the amendment did not have a material impact on the Company’s consolidated financial statements.

 

Recently Issued Accounting Standards 

 

In February 2017, the FASB issued an ASU, Other Income-Gains and Losses from the Derecognition of Nonfinancial Assets: Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which clarifies the scope of asset derecognition and adds further guidance for recognizing gains and losses from the transfer of nonfinancial assets in contracts with non-customers. This ASU will be effective for us beginning the first day of our 2019 fiscal year. Early adoption is permitted. We do not expect this ASU to have an impact until an applicable transaction takes place.

 

In January 2017, the FASB issued an ASU, Business Combinations: Clarifying the Definition of a Business, which adds guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. This ASU will be effective for us beginning the first day of our 2019 fiscal year. Early adoption is permitted. We do not expect this ASU to have an impact until an applicable transaction takes place.

 

In October 2016, the FASB issued an ASU, Intra-Entity Transfers of Assets Other Than Inventory, which will require companies to recognize the income tax effects of intra-entity sales and transfers of assets other than inventory,

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particularly those asset transfers involving intellectual property, in the period in which the transfer occurs. The ASU will be effective for us beginning the first day of our 2019 fiscal year and is not expected to have a significant impact upon adoption.

 

In January 2017, the FASB issued an ASU, Simplifying the Test for Goodwill Impairment, which removes the requirement to compare the implied fair value of goodwill with its carrying amount as part of step 2 of the goodwill impairment test. The ASU permits an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and to recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. This ASU will be effective for us beginning the first day of our 2021 fiscal year and is not expected to have a significant impact upon adoption.

 

In February 2016, the FASB issued an ASU, Leases, which requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize a straight-line total lease expense. The guidance also requires qualitative and specific quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entity’s leasing activities, including significant judgments and changes in judgments. This ASU will be effective for us beginning the first day of our 2020 fiscal year. Early adoption is permitted. Although we are in the process of evaluating the impact of adoption of ASU 2016-02 on its consolidated financial statements, we currently expect the most significant changes will be related to the recognition of new right-of-use assets and lease liabilities on our consolidated balance sheet.

 

In January 2016, the FASB issued an ASU, which requires equity investments (except those accounted for under the equity method of accounting) to be measured at fair value with changes in fair value recognized in net income. The guidance is effective for fiscal years and interim period within those fiscal years beginning after December 15, 2017. Early adoption is permitted. The impact of the adoption of this ASU on our consolidated statements of income depends on the net unrealized gain or loss on our equity investment.  For the three months ended April 30, 2018 and 2017, the net unrealized gain on our equity investment was $3.0 million and $6.4 million.  For the six months ended April 30, 2018, the net unrealized loss on our equity investment was $0.1 million.  For the six months ended April 30, 2017, the net unrealized gain on our equity investment was $1.7 million. 

 

In May 2014, the FASB issued a comprehensive new revenue recognition standard which will supersede previous existing revenue recognition guidance. The standard is intended to clarify the principles of recognizing revenue and create common revenue recognition guidance between U.S. GAAP and International Financial Reporting Standards. The standard also requires expanded disclosures surrounding revenue recognition. During fiscal 2017, the FASB issued additional clarification guidance on the new revenue recognition standard which also included certain scope improvements and practical expedients. The standard (including clarification guidance issued) is effective for fiscal periods beginning after December 15, 2017, which will be our first quarter of fiscal 2019. We will adopt the new standard using the modified retrospective transition method, under which the cumulative effect of initially applying the new guidance is recognized as an adjustment to the opening balance of retained earnings on the first day of our 2019 fiscal year. 

 

2.  Information regarding our operations in different segments

 

We report our operations in three different business segments: (1) Fresh products, (2) Calavo Foods, and (3) RFG.  These three business segments are presented based on how information is used by our Chief Executive Officer to measure performance and allocate resources. The Fresh products segment includes all operations that involve the distribution of avocados and other fresh produce products.  The Calavo Foods segment represents all operations related to the purchase, manufacturing, and distribution of prepared products, including guacamole and salsa. The RFG segment represents all operations related to the manufacturing and distribution of fresh-cut fruit, fresh-cut vegetables, vegetables and prepared foods.  Selling, general and administrative expenses, as well as other non-operating income/expense items,

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are evaluated by our Chief Executive Officer in the aggregate.  We do not allocate assets, or specifically identify them to, our operating segments. Data in the following tables is presented in thousands:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended  April 30, 2018

 

Three months ended April 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Fresh

    

Calavo

    

 

 

    

 

 

    

Fresh

    

Calavo

    

 

 

    

 

 

 

 

 

products

 

Foods

 

RFG

 

Total

 

products

 

Foods

 

RFG

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Avocados

 

$

127,743

 

$

 

$

 

$

127,743

 

$

142,933

 

$

 —

 

$

 

$

142,933

 

Tomatoes

 

 

7,963

 

 

 

 

 

 

7,963

 

 

11,187

 

 

 —

 

 

 

 

11,187

 

Papayas

 

 

2,852

 

 

 

 

 

 

2,852

 

 

1,955

 

 

 —

 

 

 

 

1,955

 

Other fresh products

 

 

69

 

 

 

 

 

 

69

 

 

 6

 

 

 —

 

 

 

 

 6

 

Prepared avocado products

 

 

 

 

25,235

 

 

 

 

25,235

 

 

 —

 

 

19,265

 

 

 

 

19,265

 

Salsa

 

 

 

 

740

 

 

 —

 

 

740

 

 

 —

 

 

935

 

 

 —

 

 

935

 

Fresh-cut fruit & vegetables and prepared foods

 

 

 —

 

 

 —

 

 

104,982

 

 

104,982

 

 

 —

 

 

 —

 

 

98,028

 

 

98,028

 

Total gross sales

 

 

138,627

 

 

25,975

 

 

104,982

 

 

269,584

 

 

156,081

 

 

20,200

 

 

98,028

 

 

274,309

 

Less sales incentives

 

 

(438)

 

 

(3,271)

 

 

(425)

 

 

(4,134)

 

 

(256)

 

 

(2,805)

 

 

(326)

 

 

(3,387)

 

Less inter-company eliminations

 

 

(254)

 

 

(791)

 

 

 —

 

 

(1,045)

 

 

(202)

 

 

(558)

 

 

 —

 

 

(760)

 

Net sales

 

$

137,935

 

$

21,913

 

$

104,557

 

$

264,405

 

$

155,623

 

$

16,837

 

$

97,702

 

$

270,162

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended April 30, 2018

 

Six months ended April 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Fresh

    

Calavo

    

 

 

    

 

 

    

Fresh

    

Calavo

    

 

 

    

 

 

 

 

 

products

 

Foods

 

RFG

 

Total

 

products

 

Foods

 

RFG

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Avocados

 

$

236,672

 

$

 

$

 

$

236,672

 

$

247,665

 

$

 —

 

$

 

$

247,665

 

Tomatoes

 

 

20,047

 

 

 

 

 

 

20,047

 

 

16,459

 

 

 —

 

 

 

 

16,459

 

Papayas

 

 

5,657

 

 

 

 

 

 

5,657

 

 

4,319

 

 

 —

 

 

 

 

4,319

 

Other fresh products

 

 

104

 

 

 

 

 

 

104

 

 

101

 

 

 —

 

 

 

 

101

 

Prepared avocado products

 

 

 

 

47,038

 

 

 

 

47,038

 

 

 —

 

 

38,515

 

 

 

 

38,515

 

Salsa

 

 

 

 

1,605

 

 

 —

 

 

1,605

 

 

 —

 

 

2,033

 

 

 —

 

 

2,033

 

Fresh-cut fruit & vegetables and prepared foods

 

 

 —

 

 

 —

 

 

211,758

 

 

211,758

 

 

 —

 

 

 —

 

 

196,075

 

 

196,075

 

Total gross sales

 

 

262,480

 

 

48,643

 

 

211,758

 

 

522,881

 

 

268,544

 

 

40,548

 

 

196,075

 

 

505,167

 

Less sales incentives

 

 

(1,092)

 

 

(6,049)

 

 

(1,095)

 

 

(8,236)

 

 

(533)

 

 

(5,506)

 

 

(666)

 

 

(6,705)

 

Less inter-company eliminations

 

 

(668)

 

 

(1,644)

 

 

 —

 

 

(2,312)

 

 

(329)

 

 

(1,417)

 

 

 —

 

 

(1,746)

 

Net sales

 

$

260,720

 

$

40,950

 

$

210,663

 

$

512,333

 

$

267,682

 

$

33,625

 

$

195,409

 

$

496,716

 

 

 

 

10


 

Table of Contents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Fresh

    

Calavo

    

 

 

    

 

 

 

 

 

products

 

Foods

 

RFG

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended  April 30, 2018

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales before intercompany eliminations

 

$

138,189

 

$

22,704

 

$

104,557

 

$

265,450

 

Intercompany eliminations

 

 

(254)

 

 

(791)

 

 

 —

 

 

(1,045)

 

Net sales

 

 

137,935

 

 

21,913

 

 

104,557

 

 

264,405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of sales before intercompany eliminations

 

 

123,052

 

 

14,840

 

 

95,589

 

 

233,481

 

Intercompany eliminations

 

 

(237)

 

 

(479)

 

 

(329)

 

 

(1,045)

 

Cost of sales

 

 

122,815

 

 

14,361

 

 

95,260

 

 

232,436

 

Gross profit

 

$

15,120

 

$

7,552

 

$

9,297

 

$

31,969

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended  April 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales before intercompany eliminations

 

$

155,825

 

$

17,395

 

$

97,702