Attached files

file filename
EX-32.1 - EX-32.1 - CALAVO GROWERS INCcvgw-20160731ex3215931ed.htm
EX-31.2 - EX-31.2 - CALAVO GROWERS INCcvgw-20160731ex31289255e.htm
EX-31.1 - EX-31.1 - CALAVO GROWERS INCcvgw-20160731ex311408342.htm
EX-10.1 - EX-10.1 - CALAVO GROWERS INCcvgw-20160731ex10123fd08.htm

 

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 July 31, 2016

 

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, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act (Check one):

 

Large accelerated filer ☒ 

Accelerated filer ☐

Non-accelerated filer ☐

Smaller Reporting Company ☐

 

(Do not check if a smaller reporting company)

 

 

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 July 31, 2016 was 17,438,408

 


 

 

 


 

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, margins, 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 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, claims or 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, claims and 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, 2015, 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.

 

2


 

CALAVO GROWERS, INC.

 

INDEX

 

 

    

PAGE

 

 

 

PART I. FINANCIAL INFORMATION 

 

 

 

 

Item 1. 

 

 

 

 

 

Consolidated Condensed Balance Sheets – July 31, 2016 and October 31, 2015

 

 

 

 

Consolidated Condensed Statements of Income – Three Months and Nine Months Ended July 31, 2016 and 2015

 

 

 

 

Consolidated Condensed Statements of Comprehensive Income – Three Months and Nine Months Ended July 31, 2016 and 2015

 

 

 

 

Consolidated Condensed Statements of Cash Flows – Nine Months Ended July 31, 2016 and 2015

 

 

 

 

Notes to Consolidated Condensed Financial Statements

 

 

 

Item 2. 

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

19 

 

 

 

Item 3. 

Quantitative and Qualitative Disclosures About Market Risk

27 

 

 

 

Item 4. 

Controls and Procedures

27 

 

 

 

PART II. OTHER INFORMATION 

 

 

 

 

Item 1. 

Legal Proceedings

27 

 

 

 

Item 1A. 

Risk Factors

28 

 

 

 

Item 6. 

Exhibits

28 

 

 

 

 

Signatures

29 

 

 

3


 

PART I.  FINANCIAL INFORMATION

 

ITEM 1.  FINANCIAL STATEMENTS 

 

CALAVO GROWERS, INC.

CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

July 31, 

 

October 31, 

 

 

 

2016

 

2015

 

 

 

 

 

 

 

 

Assets

    

 

    

    

 

    

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

14,650

 

$

7,171

 

Accounts receivable, net of allowances of $1,805 (2016) $2,312 (2015)

 

 

86,575

 

 

58,606

 

Inventories, net

 

 

36,410

 

 

26,351

 

Prepaid expenses and other current assets

 

 

13,317

 

 

15,763

 

Advances to suppliers

 

 

2,000

 

 

2,820

 

Income taxes receivable

 

 

 —

 

 

6,111

 

Total current assets

 

 

152,952

 

 

116,822

 

Property, plant, and equipment, net

 

 

80,060

 

 

69,448

 

Investment in Limoneira Company

 

 

30,578

 

 

27,415

 

Investment in unconsolidated entities

 

 

20,890

 

 

19,720

 

Deferred income taxes

 

 

17,588

 

 

19,277

 

Goodwill

 

 

18,262

 

 

18,262

 

Other assets

 

 

14,295

 

 

14,001

 

 

 

$

334,625

 

$

284,945

 

Liabilities and shareholders' equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Payable to growers

 

$

39,991

 

$

3,924

 

Trade accounts payable

 

 

23,667

 

 

19,600

 

Accrued expenses

 

 

25,837

 

 

21,311

 

Income taxes payable

 

 

4,675

 

 

 —

 

Short-term borrowings

 

 

18,500

 

 

36,910

 

Dividend payable

 

 

 —

 

 

13,907

 

Current portion of long-term obligations

 

 

137

 

 

2,206

 

Total current liabilities

 

 

112,807

 

 

97,858

 

Long-term liabilities:

 

 

 

 

 

 

 

Long-term obligations, less current portion

 

 

485

 

 

586

 

Deferred rent

 

 

2,315

 

 

 —

 

Deferred income taxes

 

 

234

 

 

234

 

Total long-term liabilities

 

 

3,034

 

 

820

 

Commitments and contingencies

 

 

 

 

 

 

 

Noncontrolling interest, Calavo Salsa Lisa

 

 

285

 

 

285

 

Shareholders' equity:

 

 

 

 

 

 

 

Common stock ($0.001 par value, 100,000 shares authorized; 17,438 (2016) and 17,385 (2015) shares issued and outstanding)

 

 

17

 

 

17

 

Additional paid-in capital

 

 

148,811

 

 

147,063

 

Accumulated other comprehensive income

 

 

4,428

 

 

2,419

 

Noncontrolling interest

 

 

989

 

 

1,011

 

Retained earnings

 

 

64,254

 

 

35,472

 

Total shareholders' equity

 

 

218,499

 

 

185,982

 

 

 

$

334,625

 

$

284,945

 

 

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

4


 

CALAVO GROWERS, INC.

CONSOLIDATED CONDENSED STATEMENTS OF INCOME (UNAUDITED)

(in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

Nine months ended

 

 

 

July 31, 

 

July 31, 

 

 

 

2016

 

2015

 

2016

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

    

$

263,146

    

$

232,450

    

$

688,024

    

$

648,830

 

Cost of sales

 

 

230,502

 

 

208,172

 

 

607,575

 

 

583,772

 

Gross margin

 

 

32,644

 

 

24,278

 

 

80,449

 

 

65,058

 

Selling, general and administrative

 

 

12,287

 

 

10,620

 

 

34,866

 

 

30,116

 

Operating income

 

 

20,357

 

 

13,658

 

 

45,583

 

 

34,942

 

Interest expense

 

 

(210)

 

 

(195)

 

 

(612)

 

 

(654)

 

Other income (expense), net

 

 

(115)

 

 

88

 

 

399

 

 

514

 

Income before provision for income taxes

 

 

20,032

 

 

13,551

 

 

45,370

 

 

34,802

 

Provision for income taxes

 

 

7,323

 

 

4,910

 

 

16,609

 

 

12,390

 

Net income

 

 

12,709

 

 

8,641

 

 

28,761

 

 

22,412

 

Less: Net loss attributable to noncontrolling interest

 

 

36

 

 

 —

 

 

22

 

 

 —

 

Net income attributable to Calavo Growers, Inc.

 

$

12,745

 

$

8,641

 

$

28,783

 

$

22,412

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.73

 

$

0.50

 

$

1.66

 

$

1.30

 

Diluted

 

$

0.73

 

$

0.50

 

$

1.65

 

$

1.29

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of shares used in per share computation:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

17,351

 

 

17,301

 

 

17,340

 

 

17,291

 

Diluted

 

 

17,447

 

 

17,386

 

 

17,425

 

 

17,354

 

 

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

 

5


 

CALAVO GROWERS, INC.

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

Nine months ended

 

 

 

July 31, 

 

July 31, 

 

 

 

2016

 

2015

 

2016

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

    

$

12,709

    

$

8,641

    

$

28,761

    

$

22,412

 

Other comprehensive income (loss), before tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized investment gains (losses) arising during period

 

 

(346)

 

 

(4,062)

 

 

3,164

 

 

(8,764)

 

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

 

 

126

 

 

1,422

 

 

(1,155)

 

 

3,067

 

Other comprehensive income (loss), net of tax

 

 

(220)

 

 

(2,640)

 

 

2,009

 

 

(5,697)

 

Comprehensive income

 

 

12,489

 

 

6,001

 

 

30,770

 

 

16,715

 

Less: Net loss attributable to noncontrolling interest

 

 

36

 

 

 —

 

 

22

 

 

 —

 

Comprehensive income – Calavo Growers, Inc.

 

$

12,525

 

$

6,001

 

$

30,792

 

$

16,715

 

 

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

 

 

6


 

CALAVO GROWERS, INC.

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands)

 

 

 

 

 

 

 

 

 

 

 

Nine months ended July 31, 

 

 

 

2016

 

2015

 

 

 

 

 

 

 

 

Cash Flows from Operating Activities:

    

 

    

    

 

    

 

Net income

 

$

28,761

 

$

22,412

 

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

 

 

 

 

 

 

 

Depreciation and amortization

 

 

6,507

 

 

5,968

 

Provision for losses on accounts receivable

 

 

 —

 

 

37

 

Loss from unconsolidated entities

 

 

132

 

 

110

 

Stock compensation expense

 

 

1,577

 

 

2,021

 

Deferred income taxes

 

 

598

 

 

 —

 

Effect on cash of changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

 

(27,969)

 

 

(9,566)

 

Inventories, net

 

 

(10,059)

 

 

(551)

 

Prepaid expenses and other current assets

 

 

(3,438)

 

 

2,068

 

Advances to suppliers

 

 

820

 

 

512

 

Income taxes receivable/payable

 

 

10,897

 

 

1,772

 

Other assets

 

 

478

 

 

(296)

 

Payable to growers

 

 

36,064

 

 

9,220

 

Deferred rent

 

 

1,705

 

 

 —

 

Trade accounts payable and accrued expenses

 

 

8,968

 

 

(1,179)

 

Net cash provided by operating activities

 

 

55,041

 

 

32,528

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

Acquisitions of property, plant, and equipment

 

 

(15,772)

 

 

(13,855)

 

Proceeds received for repayment of San Rafael note

 

 

28

 

 

275

 

Proceeds from liquidation of Calavo Chile

 

 

 —

 

 

262

 

Investment in FreshRealm

 

 

 —

 

 

(800)

 

Loan to Agricola Don Memo

 

 

 —

 

 

(1,803)

 

Proceeds received for repayment of loan to Agricola Don Memo

 

 

4,000

 

 

 —

 

Investment in Agricola Don Memo

 

 

(1,300)

 

 

(1,000)

 

Net cash used in investing activities

 

 

(13,044)

 

 

(16,921)

 

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

Payment of dividend to shareholders

 

 

(13,907)

 

 

(12,970)

 

Proceeds from revolving credit facility

 

 

178,730

 

 

199,540

 

Payments on revolving credit facility

 

 

(197,140)

 

 

(199,360)

 

Deferred financing costs

 

 

(91)

 

 

 —

 

Payments on long-term obligations

 

 

(2,170)

 

 

(4,260)

 

Proceeds from stock option exercises

 

 

60

 

 

235

 

Net cash used in financing activities

 

 

(34,518)

 

 

(16,815)

 

Net increase (decrease) in cash and cash equivalents

 

 

7,479

 

 

(1,208)

 

Cash and cash equivalents, beginning of period

 

 

7,171

 

 

6,744

 

Cash and cash equivalents, end of period

 

$

14,650

 

$

5,536

 

Noncash Investing and Financing Activities:

 

 

 

 

 

 

 

Construction in progress included in trade accounts payable and accrued expenses

 

$

172

 

$

 —

 

Collection for Agricola Belher Infrastructure Advance

 

$

 —

 

$

845

 

Unrealized holding gains (losses)

 

$

3,164

 

$

(8,764)

 

 

 

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

 

7


 

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 food distributors, produce wholesalers, supermarkets, and restaurants on a worldwide basis.  We procure avocados principally from California and Mexico.  Through our various operating facilities, we (i) sort, pack, and/or ripen avocados, tomatoes and Hawaiian grown papayas, (ii) process and package fresh cut fruit and vegetables, salads, wraps, sandwiches, fresh snacking products and a variety of behind-the-glass deli items and (iii) produce and package guacamole and salsa. 

 

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, 2015.

 

Recently Issued Accounting Standards 

 

In March 2016, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU"), which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This ASU will be effective for us beginning the first day of our 2017 fiscal year. Early adoption is permitted. We are evaluating the impact of adoption of this ASU on our financial condition, result of operations and cash flows, but do not expect the adoption of this ASU to have a significant effect.

 

In February 2016, the FASB issued an ASU, 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 2019 fiscal year. Early adoption is permitted. We are evaluating the impact of adoption of this ASU on our financial condition, result of operations and cash flows, but do not expect the adoption of this ASU to have a significant effect.

 

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 interim and annual periods beginning after December 15, 2017. Early adoption is permitted. We are evaluating the impact of adoption of this ASU on our financial condition, result of operations and cash flows.

 

In November 2015, the FASB issued an ASU, which amends the existing accounting standards for income taxes. The amendment required companies to report their deferred tax liabilities and deferred tax assets each as a single non-current

8


 

item on their classified balance sheets. The Company elected to adopt the amendments in the first quarter of fiscal year 2016 and applied them prospectively to the current period presented, as permitted by the standard. The adoption of the amendments had no impact on the Company's net earnings or cash flow from operations for any period presented.

 

In July 2015, the FASB issued an ASU for measuring inventory.  The core principal of the guidance is that an entity should measure inventory at the lower of cost and net realizable value.  Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance is effective for us on a prospective basis beginning on the first day of our fiscal 2017 year. Early adoption is permitted. We are evaluating the impact of adoption of this ASU on our financial condition, result of operations and cash flows, but do not expect the adoption of this ASU to have a significant effect.

 

In May 2014, the FASB amended the existing accounting standards for revenue recognition. The amendments are based on the principle that revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. We are required to adopt the amendments in the first quarter of fiscal 2018. Early adoption is not permitted. The amendments may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of initial application. We do not expect the adoption of these amendments to have a material impact on our financial statements.

 

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, ready-to-eat vegetables, recipe-ready vegetables and other fresh prepared food products.  Selling, general and administrative expenses, as well as other non-operating income/expense items, are evaluated by our Chief Executive Officer in the aggregate.  We do not allocate assets, or specifically identify them to, our operating segments. The following table sets forth sales by product category, by segment (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended  July 31, 2016

 

Three months ended  July 31, 2015

 

 

    

    

 

    

    

 

    

 

 

    

 

 

    

    

 

    

    

 

    

 

 

    

 

 

 

 

 

Fresh

 

Calavo

 

    

 

 

    

 

 

Fresh

 

Calavo

 

    

 

 

    

 

 

 

 

products

 

Foods

 

RFG

 

Total

 

products

 

Foods

 

RFG

 

Total

 

Third-party sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Avocados

 

$

151,364

 

$

 

$

 

$

151,364

 

$

132,165

 

$

 —

 

$

 

$

132,165

 

Tomatoes

 

 

2,581

 

 

 

 

 

 

2,581

 

 

1,154

 

 

 —

 

 

 

 

1,154

 

Papayas

 

 

2,614

 

 

 

 

 

 

2,614

 

 

2,559

 

 

 —

 

 

 

 

2,559

 

Other fresh products

 

 

433

 

 

 

 

 

 

433

 

 

607

 

 

 —

 

 

 

 

607

 

Food service

 

 

 

 

12,929

 

 

 

 

12,929

 

 

 —

 

 

13,575

 

 

 

 

13,575

 

Retail and club

 

 

 

 

6,056

 

 

91,631

 

 

97,687

 

 

 —

 

 

6,331

 

 

79,927

 

 

86,258

 

Total gross sales

 

 

156,992

 

 

18,985

 

 

91,631

 

 

267,608

 

 

136,485

 

 

19,906

 

 

79,927

 

 

236,318

 

Less sales incentives

 

 

(863)

 

 

(2,700)

 

 

(899)

 

 

(4,462)

 

 

(715)

 

 

(2,421)

 

 

(732)

 

 

(3,868)

 

Net sales

 

$

156,129

 

$

16,285

 

$

90,732

 

$

263,146

 

$

135,770

 

$

17,485

 

$

79,195

 

$

232,450

 

 

 

9


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended July 31, 2016

 

Nine months ended July 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Fresh

    

Calavo

    

 

 

    

 

 

    

Fresh

    

Calavo

    

 

 

    

 

 

 

 

 

products

 

Foods

 

RFG

 

Total

 

products

 

Foods

 

RFG

 

Total

 

Third-party sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Avocados

 

$

354,785

 

$

 

$

 

$

354,785

 

$

360,334

 

$

 

$

 

$

360,334

 

Tomatoes

 

 

34,375

 

 

 

 

 

 

34,375

 

 

16,813

 

 

 

 

 

 

16,813

 

Papayas

 

 

7,054

 

 

 

 

 

 

7,054

 

 

6,977

 

 

 

 

 

 

6,977

 

Other fresh products

 

 

854

 

 

 

 

 

 

854

 

 

2,571

 

 

 

 

 

 

2,571

 

Food service

 

 

 

 

37,998

 

 

 

 

37,998

 

 

 

 

37,223

 

 

 

 

37,223

 

Retail and club

 

 

 

 

16,636

 

 

248,176

 

 

264,812

 

 

 

 

17,451

 

 

218,547

 

 

235,998

 

Total gross sales

 

 

397,068

 

 

54,634

 

 

248,176

 

 

699,878

 

 

386,695

 

 

54,674

 

 

218,547

 

 

659,916

 

Less sales incentives

 

 

(1,804)

 

 

(7,508)

 

 

(2,542)

 

 

(11,854)

 

 

(1,423)

 

 

(7,673)

 

 

(1,990)

 

 

(11,086)

 

Net sales

 

$

395,264

 

$

47,126

 

$

245,634

 

$

688,024

 

$

385,272

 

$

47,001

 

$

216,557

 

$

648,830

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Fresh

    

Calavo

    

 

 

    

 

 

 

 

 

products

 

Foods

 

RFG

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(All amounts are presented in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended  July 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

156,129

 

$

16,285

 

$

90,732

 

$

263,146

 

Cost of sales

 

 

137,845

 

 

10,484

 

 

82,173

 

 

230,502

 

Gross margin

 

$

18,284

 

$

5,801

 

$

8,559

 

$

32,644

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended  July 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

135,770

 

$

17,485

 

$

79,195

 

$

232,450

 

Cost of sales

 

 

126,105

 

 

11,415

 

 

70,652

 

 

208,172

 

Gross margin

 

$

9,665

 

$

6,070

 

$

8,543

 

$

24,278

 

 

For the three months ended July 31, 2016 and 2015, inter-segment sales and cost of sales of $1.4 million and $0.6 million between Fresh products and RFG were eliminated.  For the three months ended July 31, 2016 and 2015, inter-segment sales and cost of sales of $0.7 million and $0.6 million between Calavo Foods and RFG were eliminated.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Fresh

    

Calavo

    

 

 

    

 

 

 

 

 

products

 

Foods

 

RFG

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(All amounts are presented in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended July 31, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

395,264

 

$

47,126

 

$

245,634

 

$

688,024

 

Cost of sales

 

 

352,424

 

 

29,228

 

 

225,923

 

 

607,575

 

Gross margin

 

$

42,840

 

$

17,898

 

$

19,711

 

$

80,449

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended July 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

385,272

 

$

47,001

 

$

216,557

 

$

648,830

 

Cost of sales

 

 

355,991

 

 

31,725

 

 

196,056

 

 

583,772

 

Gross margin