Business
Calavo Growers, Inc. Announces Third Quarter 2023 Financial Results
SANTA PAULA, Calif., Sept. 06, 2023 (GLOBE NEWSWIRE) -- Calavo Growers, Inc. (Nasdaq-GS: CVGW), a global avocado-industry leader and provider of convenient,
About this update from Calavo Growers, Inc.
[{"type":"text","content":"SANTA PAULA, Calif., Sept. 06, 2023 (GLOBE NEWSWIRE) -- Calavo Growers, Inc. (Nasdaq-GS: CVGW), a global avocado-industry leader and provider of convenient, ready-to-eat fresh food, today reported its financial results for the fiscal third quarter ended July 31, 2023. Third Quarter Financial Overview Total net sales of $259.9 million, a 24% decrease from the prior year quarter Grown segment net sales decreased 30% to $144.5 millionPrepared segment net sales decreased 14% to $115.8 million Gross profit of $25.0 million, compared to $18.5 million for the prior year quarter Grown segment gross profit increased $9.6 million to $21.4 millionPrepared segment gross profit decreased $3.1 million to $3.7 million Net income of $6.6 million, or $0.37 per diluted share, compared to $1.3 million, or $0.07 per diluted share, for the same period last yearAdjusted net income of $7.2 million, or $0.41 per diluted share, compared to adjusted net income of $2.9 million, or $0.16 per diluted share for the prior year quarterAdjusted EBITDA of $13.8 million compared to $8.1 million for the same period last year Adjusted net income, adjusted net income per diluted share, and adjusted EBITDA are non-GAAP financial measures. See “Non-GAAP Financial Measures” below. Third Quarter Highlights Avocado margins meaningfully improved sequentially and versus the prior year quarterEstablished new credit facility with borrowing capacity of up to $100 million to improve liquidity and financial flexibilityOnboarded new customer volume in Prepared with approximately $0.7 million of start-up costs in the quarter; expect sequential improvement in Prepared in fourth quarterThe Board of Directors declared a quarterly cash dividend of $0.10 per share to be paid on Oct. 11, 2023 to investors of record on Sept. 27, 2023 Management Commentary“I am pleased with our performance in the third quarter. We achieved strong avocado margins as we concentrated our efforts on the fundamentals of our flagship avocado business,” said Lee E. Cole, President and Chief Executive Officer of Calavo Growers, Inc. “Our Prepared segment earnings improved sequentially versus the second quarter as we onboarded new customer volume in Fresh Cut, despite some start-up costs. Our Guacamole business continues to perform well with lower fruit input costs and improved manufacturing efficiency. We expect...