SANTA PAULA, CA - Limoneira has released the results for its third quarter for the 2015 fiscal year, while simultaneously announcing that it has entered into an agreement with a leading land developer, The Lewis Group of Companies.
"We are excited about the recent progress that we have made with our key business initiatives,” Harold Edwards, President and Chief Executive Officer of Limoneira, said in a press release. “We recently announced that we entered into a Contribution Agreement that is expected to facilitate a joint venture with The Lewis Group of Companies, for the development of the Santa Paula Gateway Project.”
The project, which Edwards stated is expected to generate approximately $100 million of net cash flow for Limoneira, is currently slated to be in development over the next seven to ten years.
In addition to this latest move, Limoneira has also entered escrow in San Joaquin Valley to acquire about 900 acres of lemon, orange, and specialty citrus orchards.
"We currently lease this property from the Sheldon family and expect incremental operating results and cash flows resulting from the elimination of profit sharing lease expense beginning in fiscal year 2016,” Edwards said, adding that this demonstrates the success of the company’s execution on its long-term growth and expansion strategy. “As we benefit from cash flow related to our real estate development activities, we plan to make additional investments into our agribusiness growth."
Agribusiness revenue for the company's third quarter of fiscal year 2015 includes $23.9 million in lemon sales, compared to $26.8 million of lemon sales during the same period of fiscal year 2014. Limoneira’s avocado harvest ended in July with a total revenue of $7.1 million on 7.0 million pounds for the 2015 fiscal year, compared to last year’s revenue of $7.3 million on 6.7 million pounds for the same period.
Additional third quarter highlights and notes included:
- Third Quarter Operating Income of $7.8 million and EBITDA of $9.1 million
- The company began renting new farm worker housing units this quarter.
- Revenue was $29.8 million, compared $36.5 million in the third quarter of 2014.
- Agribusiness revenue was $28.5 million, compared to $35.2 million in the third quarter of 2014.
- Rental operations revenue was $1.3 million in the third quarter of 2015, compared to $1.2 million in the same quarter of last year.
- Real estate development revenue was $34,000 compared to $121,000 in the third quarter last year.
"Our financial results for the third quarter were impacted by the previously discussed shift in the timing of the avocado harvest,” Edwards concluded.
The CEO also stated that the company is currently updating its annual guidance based on its year-to-date results, as well as the outlook for the fourth quarter.
Limoneira expects to earn approximately $5.8 million to $6.3 million in operating income for fiscal year 2015 compared to previous guidance of $8.8 million to $9.3 million.
