<p><strong>Santa Paula, CA</strong><hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">Calavo Growers, Inc. has reported that its fiscal 2012 second quarter net income nearly doubled on a 17 percent increase in revenues from the comparable period in 2011. This is before an unanticipated $1.9 million income tax expense related to a ruling in a disputed matter with Mexico’s tax authority’s examination of the 2004 tax year took affect.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">Operating results for the period include those of Renaissance Food Group, LLC which the company acquired on June 1, 2011. RFG’s results are included as a separate business segment distinct from the company’s legacy Calavo Foods business segment, according to a press release.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">For the quarter that ended April 30, 2012, net income before the Mexican tax item, increased 84 percent to $4.4 million from $2.4 million in the fiscal 2011 second quarter. Including the effect of the Mexican tax ruling, which the company learned of after the close of the second fiscal quarter, net income was $2.5 million.<hr class="legacyRuler"><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding">Chairman, President and Chief Executive Officer Lee E. Cole stated, “We were deeply disappointed by the ruling of the Mexican appellate court, which we and our legal counsel believe was unsupported by the facts. Despite this unwarranted non-recurring expense, by virtually all financial yardsticks Calavo registered an outstanding performance in the fiscal 2012 second quarter. The company posted solid top-line growth, paced by incremental revenue contribution from RFG. Calavo’s sharply higher year-over-year total gross margin propelled net income and per-share results in the most recent period, principally due to a 23 percent increase in fresh avocado units from the fiscal 2011 second quarter."</p><hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"><p><a class="btn btn-sm btn-primary col-lg-12" style="white-space: normal;" href="http://www.calavo.com" target="_new"> Calavo <hr class="legacyRuler"><hr class="invisible minimal-padding"><hr class="invisible minimal-padding"></a></p>
