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EX-32.1 - EX-32.1 - CALAVO GROWERS INCcvgw-20170430ex321a7971c.htm
EX-31.2 - EX-31.2 - CALAVO GROWERS INCcvgw-20170430ex312dac4b1.htm
EX-31.1 - EX-31.1 - CALAVO GROWERS INCcvgw-20170430ex31110eef1.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 April 30, 2017

 

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, 2017 was 17,532,179

 


 

 

 


 

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, 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, 2016, 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 – April 30, 2017 and October 31, 2016

4

 

 

 

 

Consolidated Condensed Statements of Income – Three Months and Six Months Ended April 30, 2017 and 2016

5

 

 

 

 

Consolidated Condensed Statements of Comprehensive Income – Three Months and Six Months Ended April 30, 2017 and 2016

6

 

 

 

 

Consolidated Condensed Statements of Cash Flows – Three Months and Six Months Ended April 30, 2017 and 2016

7

 

 

 

 

Notes to Consolidated Condensed Financial Statements

8

 

 

 

Item 2. 

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

20

 

 

 

Item 3. 

Quantitative and Qualitative Disclosures About Market Risk

27

 

 

 

Item 4. 

Controls and Procedures

27

 

 

 

PART II. OTHER INFORMATION 

 

 

 

 

Item 1. 

Legal Proceedings

28

 

 

 

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)

 

 

 

 

 

 

 

 

 

 

 

April 30, 

 

October 31, 

 

 

 

2017

 

2016

 

 

 

 

 

 

 

 

Assets

    

 

    

    

 

    

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

10,468

 

$

13,842

 

Accounts receivable, net of allowances of $3,620 (2017) $2,063 (2016)

 

 

94,970

 

 

70,101

 

Inventories, net

 

 

38,634

 

 

31,849

 

Prepaid expenses and other current assets

 

 

6,391

 

 

14,402

 

Advances to suppliers

 

 

1,491

 

 

4,425

 

Income taxes receivable

 

 

 —

 

 

334

 

Total current assets

 

 

151,954

 

 

134,953

 

Property, plant, and equipment, net

 

 

114,272

 

 

87,837

 

Investment in Limoneira Company

 

 

35,747

 

 

34,036

 

Investment in unconsolidated entities

 

 

27,274

 

 

24,652

 

Deferred income taxes

 

 

14,319

 

 

14,944

 

Goodwill

 

 

18,262

 

 

18,262

 

Other assets

 

 

22,094

 

 

13,249

 

 

 

$

383,922

 

$

327,933

 

Liabilities and shareholders' equity

 

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Payable to growers

 

$

37,480

 

$

20,965

 

Trade accounts payable

 

 

28,346

 

 

22,447

 

Accrued expenses

 

 

26,594

 

 

31,095

 

Income taxes payable

 

 

4,350

 

 

 —

 

Short-term borrowings

 

 

47,500

 

 

19,000

 

Dividend payable

 

 

 —

 

 

15,696

 

Current portion of long-term obligations

 

 

134

 

 

138

 

Total current liabilities

 

 

144,404

 

 

109,341

 

Long-term liabilities:

 

 

 

 

 

 

 

Long-term obligations, less current portion

 

 

427

 

 

445

 

Deferred rent

 

 

2,286

 

 

2,307

 

Total long-term liabilities

 

 

2,713

 

 

2,752

 

Commitments and contingencies

 

 

 

 

 

 

 

Noncontrolling interest, Calavo Salsa Lisa

 

 

 —

 

 

771

 

Shareholders' equity:

 

 

 

 

 

 

 

Common stock ($0.001 par value, 100,000 shares authorized; 17,532 (2017) and 17,440 (2016) shares issued and outstanding)

 

 

18

 

 

17

 

Additional paid-in capital

 

 

152,241

 

 

149,748

 

Accumulated other comprehensive income

 

 

7,631

 

 

6,544

 

Noncontrolling interest

 

 

923

 

 

962

 

Retained earnings

 

 

75,992

 

 

57,798

 

Total shareholders' equity

 

 

236,805

 

 

215,069

 

 

 

$

383,922

 

$

327,933

 

 

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 

 

Six months ended

 

 

 

April 30, 

 

April 30, 

 

 

 

2017

 

2016

 

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

    

$

270,162

    

$

220,303

    

$

496,716

    

$

424,878

 

Cost of sales

 

 

233,909

 

 

193,496

 

 

438,539

 

 

377,073

 

Gross margin

 

 

36,253

 

 

26,807

 

 

58,177

 

 

47,805

 

Selling, general and administrative

 

 

15,426

 

 

11,658

 

 

29,252

 

 

22,579

 

Operating income

 

 

20,827

 

 

15,149

 

 

28,925

 

 

25,226

 

Interest expense

 

 

(323)

 

 

(185)

 

 

(570)

 

 

(402)

 

Other income (loss), net

 

 

33

 

 

273

 

 

(36)

 

 

514

 

Income before provision for income taxes

 

 

20,537

 

 

15,237

 

 

28,319

 

 

25,338

 

Provision for income taxes

 

 

7,603

 

 

5,561

 

 

10,164

 

 

9,286

 

Net income

 

 

12,934

 

 

9,676

 

 

18,155

 

 

16,052

 

Less: Net loss (income) attributable to noncontrolling interest

 

 

11

 

 

13

 

 

39

 

 

(14)

 

Net income attributable to Calavo Growers, Inc.

 

$

12,945

 

$

9,689

 

$

18,194

 

$

16,038

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.74

 

$

0.56

 

$

1.05

 

$

0.93

 

Diluted

 

$

0.74

 

$

0.56

 

$

1.04

 

$

0.92

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of shares used in per share computation:

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

17,426

 

 

17,348

 

 

17,402

 

 

17,335

 

Diluted

 

 

17,539

 

 

17,445

 

 

17,486

 

 

17,415

 

 

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 

 

Six months ended

 

 

 

April 30, 

 

April 30, 

 

 

 

2017

 

2016

 

2017

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

    

$

12,934

    

$

9,676

    

$

18,155

    

$

16,052

 

Other comprehensive income, before tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

Unrealized investment gains

 

 

6,361

 

 

9,179

 

 

1,711

 

 

3,509

 

Income tax expense related to items of other comprehensive income

 

 

(2,322)

 

 

(3,350)

 

 

(625)

 

 

(1,281)

 

Other comprehensive income, net of tax

 

 

4,039

 

 

5,829

 

 

1,086

 

 

2,228

 

Comprehensive income

 

 

16,973

 

 

15,505

 

 

19,241

 

 

18,280

 

Less: Net loss (income) attributable to noncontrolling interest

 

 

11

 

 

13

 

 

39

 

 

(14)

 

Comprehensive income – Calavo Growers, Inc.

 

$

16,984

 

$

15,518

 

$

19,280

 

$

18,266

 

 

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)

 

 

 

 

 

 

 

 

 

 

 

Six months ended April 30, 

 

 

 

2017

 

2016

 

 

 

 

 

 

 

 

Cash Flows from Operating Activities:

    

 

    

    

 

    

 

Net income

 

$

18,155

 

$

16,052

 

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

 

 

 

 

 

 

 

Depreciation and amortization

 

 

4,575

 

 

4,286

 

Provision for losses on accounts receivable

 

 

1,424

 

 

 —

 

Loss (income) from unconsolidated entities

 

 

403

 

 

(39)

 

Stock compensation expense

 

 

2,658

 

 

1,019

 

Deferred income taxes

 

 

 —

 

 

597

 

Effect on cash of changes in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable

 

 

(26,293)

 

 

(17,282)

 

Inventories, net

 

 

(6,785)

 

 

(3,498)

 

Prepaid expenses and other current assets

 

 

(357)

 

 

(3,851)

 

Advances to suppliers

 

 

2,934

 

 

2,820

 

Income taxes receivable/payable

 

 

4,684

 

 

7,580

 

Other assets

 

 

(1,321)

 

 

31

 

Payable to growers

 

 

16,516

 

 

15,686

 

Deferred rent

 

 

(21)

 

 

 —

 

Trade accounts payable and accrued expenses

 

 

6,709

 

 

2,944

 

Net cash provided by operating activities

 

 

23,281

 

 

26,345

 

Cash Flows from Investing Activities:

 

 

 

 

 

 

 

Acquisitions of property, plant, and equipment

 

 

(34,093)

 

 

(9,198)

 

Proceeds received for repayment of San Rafael note

 

 

216

 

 

28

 

Investment in FreshRealm

 

 

(4,625)

 

 

 —

 

Proceeds received for repayment of loan to Agricola Don Memo

 

 

 —

 

 

4,000

 

Net cash used in investing activities

 

 

(38,502)

 

 

(5,170)

 

Cash Flows from Financing Activities:

 

 

 

 

 

 

 

Payment of dividend to shareholders

 

 

(15,696)

 

 

(13,907)

 

Proceeds from revolving credit facility

 

 

83,500

 

 

106,380

 

Payments on revolving credit facility

 

 

(55,000)

 

 

(111,300)

 

Purchase of noncontrolling interest of Salsa Lisa

 

 

(1,000)

 

 

 —

 

Payments on long-term obligations

 

 

(22)

 

 

(1,631)

 

Proceeds from stock option exercises

 

 

65

 

 

 —

 

Net cash provided by (used in) in financing activities

 

 

11,847

 

 

(20,458)

 

Net increase (decrease) in cash and cash equivalents

 

 

(3,374)

 

 

717

 

Cash and cash equivalents, beginning of period

 

 

13,842

 

 

7,171

 

Cash and cash equivalents, end of period

 

$

10,468

 

$

7,888

 

Noncash Investing and Financing Activities:

 

 

 

 

 

 

 

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

 

$

863

 

$

143

 

Unrealized holding losses

 

$

1,711

 

$

3,509

 

 

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 retail grocery, foodservice, club stores, mass merchandisers, food distributors and wholesalers 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 prepared 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, 2016.

 

Recently Adopted Accounting Pronouncements 

 

In March 2016, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update ("ASU"), Improvements to Employee Share-Based Payment Accounting, which simplified several areas of accounting for share-based compensation arrangements, including the income tax impact, classification on the statement of cash flows and forfeitures. The new standard requires excess tax benefits or deficiencies for share-based payments to be recognized as income tax benefit or expense, rather than within additional paid-in capital, when the awards vest or are settled. Furthermore, cash flows related to excess tax benefits are required to be classified as operating activities in the statement of cash flows rather than financing activities.The Company’s early adoption of the amendments resulted in an income tax benefit of approximately $0.3 million on the Company’s net earnings in the first quarter of fiscal year 2017.

 

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 Company adopted this new standard beginning in the three months ended January 31, 2017. The adoption of the amendment did not have a material impact on the Company’s consolidated financial statements.

 

Recently Issued Accounting Standards 

 

In March 2017, the FASB issued an ASU, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. This ASU requires that the service cost component of net periodic benefit costs from defined benefit and other postretirement benefit plans be included in the same Statement of Earnings captions as other compensation costs arising from services rendered by the covered employees during the period.  The other components of net benefit cost will be presented in the Statement of Earnings separately from service costs.  Following adoption, only service costs will be eligible for capitalization into manufactured inventories, which should reduce diversity in practice.  This ASU will be effective for us beginning the first day of our 2019 fiscal year. As this ASU only affects

8


 

presentation and disclosure we do not anticipate a significant impact of adoption on our financial condition, results of operations and cash flows.

 

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 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 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. Early adoption is permitted. We are evaluating the impact of adoption of this ASU on our financial condition, results of operations and cash flows, and as such, we are not able to estimate the effect the adoption of the new standard will have on our financial statements.

 

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. We are evaluating the impact of adoption of this ASU on our financial condition, results of operations and cash flows, and as such, we are not able to estimate the effect the adoption of the new standard will have on our financial statements.

 

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 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 2019. 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 are evaluating the impact of the adoption of this amended accounting standard on our financial condition, result of operations and cash flows, but we do not expect the adoption of this accounting standard to have a significant effect.

 

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

9


 

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. Data in the following tables is presented in thousands:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended  April 30, 2017

 

Three months ended  April 30, 2016

 

 

    

    

 

    

    

 

    

 

 

    

 

 

    

    

 

    

    

 

    

 

 

    

 

 

 

 

 

Fresh

 

Calavo

 

    

 

 

    

 

 

Fresh

 

Calavo

 

    

 

 

    

 

 

 

 

products

 

Foods

 

RFG

 

Total

 

products

 

Foods

 

RFG

 

Total

 

Third-party sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Avocados

 

$

142,924

 

$

 

$

 

$

142,924

 

$

108,197

 

$

 —

 

$

 

$

108,197

 

Tomatoes

 

 

10,994

 

 

 

 

 

 

10,994

 

 

15,765

 

 

 —

 

 

 

 

15,765

 

Papayas

 

 

1,955

 

 

 

 

 

 

1,955

 

 

2,226

 

 

 —

 

 

 

 

2,226

 

Other fresh products

 

 

 6

 

 

 

 

 

 

 6

 

 

299

 

 

 —

 

 

 

 

299

 

Food service

 

 

 

 

14,391

 

 

 

 

14,391

 

 

 —

 

 

12,431

 

 

 

 

12,431

 

Retail and club

 

 

 

 

5,251

 

 

98,028

 

 

103,279

 

 

 —

 

 

5,258

 

 

79,762

 

 

85,020

 

Total gross sales

 

 

155,879

 

 

19,642

 

 

98,028

 

 

273,549

 

 

126,487

 

 

17,689

 

 

79,762

 

 

223,938

 

Less sales incentives

 

 

(256)

 

 

(2,805)

 

 

(326)

 

 

(3,387)

 

 

(498)

 

 

(2,336)

 

 

(801)

 

 

(3,635)

 

Net sales

 

$

155,623

 

$

16,837

 

$

97,702

 

$

270,162

 

$

125,989

 

$

15,353

 

$

78,961

 

$

220,303

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended April 30, 2017

 

Six months ended April 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

Fresh

    

Calavo

    

 

 

    

 

 

    

Fresh

    

Calavo

    

 

 

    

 

 

 

 

 

products

 

Foods

 

RFG

 

Total

 

products

 

Foods

 

RFG

 

Total

 

Third-party sales:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Avocados

 

$

247,643

 

$

 

$

 

$

247,643

 

$

203,421

 

$

 

$

 

$

203,421

 

Tomatoes

 

 

16,152

 

 

 

 

 

 

16,152

 

 

31,794

 

 

 

 

 

 

31,794

 

Papayas

 

 

4,319

 

 

 

 

 

 

4,319

 

 

4,441

 

 

 

 

 

 

4,441

 

Other fresh products

 

 

101

 

 

 

 

 

 

101

 

 

418

 

 

 

 

 

 

418

 

Food service

 

 

 

 

27,682

 

 

 

 

27,682

 

 

 

 

25,069

 

 

 

 

25,069

 

Retail and club

 

 

 

 

11,449

 

 

196,075

 

 

207,524

 

 

 

 

10,580

 

 

156,545

 

 

167,125

 

Total gross sales

 

 

268,215

 

 

39,131

 

 

196,075

 

 

503,421

 

 

240,074

 

 

35,649

 

 

156,545

 

 

432,268

 

Less sales incentives

 

 

(533)

 

 

(5,506)

 

 

(666)

 

 

(6,705)

 

 

(939)

 

 

(4,808)

 

 

(1,643)

 

 

(7,390)

 

Net sales

 

$

267,682

 

$

33,625

 

$

195,409

 

$

496,716

 

$

239,135

 

$

30,841

 

$

154,902

 

$

424,878

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fresh

    

Calavo

    

 

 

    

 

 

 

 

products

 

Foods

 

RFG

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended  April 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

155,623

 

$

16,837

 

$

97,702

 

$

270,162

 

Cost of sales

 

131,826

 

 

11,237

 

 

90,846

 

 

233,909

 

Gross margin

$

23,797

 

$

5,600

 

$

6,856

 

$

36,253

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended  April 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

125,989

 

$

15,353

 

$

78,961

 

$

220,303

 

Cost of sales

 

111,928

 

 

8,764

 

 

72,804

 

 

193,496

 

Gross margin

$

14,061

 

$

6,589

 

$

6,157

 

$

26,807

 

10


 

 

For the three months ended April 30, 2017 and 2016, inter-segment sales and cost of sales of $0.2 million and $1.3 million between Fresh products and RFG were eliminated.  For the three months ended April 30, 2017 and 2016, inter-segment sales and cost of sales of $0.6 million between Calavo Foods and RFG were eliminated.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fresh

    

Calavo

    

 

 

    

 

 

 

 

products

 

Foods

 

RFG

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended April 30, 2017

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

267,682

 

$

33,625

 

$

195,409

 

$

496,716

 

Cost of sales

 

236,034

 

 

22,933

 

 

179,572

 

 

438,539

 

Gross margin

$

31,648

 

$

10,692

 

$

15,837

 

$

58,177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six months ended April 30, 2016

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

239,135

 

$

30,841

 

$

154,902

 

$

424,878

 

Cost of sales

 

214,579

 

 

18,744

 

 

143,750

 

 

377,073

 

Gross margin

$

24,556

 

$

12,097

 

$

11,152

 

$

47,805

 

 

For the six months ended April 31, 2017 and 2016, inter-segment sales and cost of sales of $0.3 million and $1.4 million between Fresh products and RFG were eliminated.  For the six months ended April 30, 2017 and 2016, inter-segment sales and cost of sales of $1.4 million and $1.3 million between Calavo Foods and RFG were eliminated.

 

3.Inventories

 

Inventories consist of the following (in thousands):