Calavo Growers, Inc. Reports Highest Quarterly Revenues in Company History for the Three Months Ended July 31, 2007.Financial Highlights Include: * Record Third-Quarter Revenues Reach $91.3 Million, a 16% Increase From Prior Year -- Best for Any Three-Month Period in Company History * Company Records Continued Substantial Profits in Third Quarter * Nine-Month Results Show Robust Strength Across the Board with New Highs in Sales, Gross Margin, Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. , Net Income and Earnings Per Share * Nine-Months' Earnings Per Share Jump 39% from the Corresponding Period of Fiscal 2006 * Sales of Processed Products Advance 16% in the Most Recent Quarter * Year-to-Date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. Revenues Climb to a Record $217.7 Million, an 11% Increase from Fiscal 2006 SANTA PAULA Santa Paula (săn`tə pôl`ə), city (1990 pop. 25,062), Ventura co., S Calif., on the Santa Clara River in a fertile valley that yields citrus fruits, avocados, vegetables, flowers, nursery products, and walnuts; laid out 1875, inc. , Calif. -- Calavo Growers, Inc. (Nasdaq:CVGW) announced today that revenues for the third quarter ended July 31, 2007 reached the highest level for any three-month period in company history. Third quarter revenues totaled $91.3 million, up $12.4 million, or 16%, from $78.9 million in the corresponding quarter of fiscal 2006, fueled by double-digit sales percentage gains in both fresh and processed avocado avocado (ä`vəkä`do, ăv`–), tropical American broad-leaved evergreen tree of the genus Persea of the family Lauraceae (laurel family). operations. Net income was $2.2 million, equal to $0.16 basic and $0.15 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , in the three months ended July 31, 2007. The company reported earnings of $2.9 million, or $0.20 basic and diluted earnings per share, in the like period of fiscal 2006. Earnings for the period, while substantial, trailed the year-earlier total due to the unusually high cost of Mexican avocados used in the processing operation. The high cost was primarily the result of shipping delays of Chilean avocados to the U.S. due to the freeze in Chile in July. The cost of Mexican avocados has since decreased significantly. The company, a global leader in the packing and marketing of fresh and processed avocados and other perishable per·ish·a·ble adj. Subject to decay, spoilage, or destruction. n. Something, especially foodstuff, subject to decay or spoilage. Often used in the plural. food products, reported nine-month results that set new record highs across the board including sales, gross margin, operating income, net income and earnings per share. Net income for the nine months advanced 38% on an 11% sales increase. Revenues for the first nine months of fiscal 2007 increased $20.8 million to $217.7 million from $196.9 million, from the corresponding period one year ago. Net income for the period climbed $1.7 million to $6.1 million from $4.4 million in the previous year. Year-to-date basic and diluted earnings per share advanced 39%, to $0.43, versus $0.31 per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share in the initial nine months of fiscal 2006. Nine-month gross margin totaled $24.7 million, an increase of 13% from $21.9 million last year. Operating income for the period rose 41% to $10.5 million from $7.5 million. Lee E. Cole, chairman, president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , commented: "With our all-time best sales quarter, Calavo continues to demonstrate that we have created a formidable engine for growth, propelled by multiple sales platforms to offset seasonality, adverse weather and other market conditions. I believe the third quarter would have produced record results had it not been for the effect on processed product earnings caused by the Chilean shipping delays noted above. "Our fresh operations achieved sales growth of 16% in the quarter, driven by a highly favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. pricing environment for avocados. Drawing on international sources, we registered this increase despite a cyclically smaller California avocado crop, which was further impacted by the severe frosts of last January. Consumer demand for avocados, both fresh and processed, continues to expand briskly brisk adj. brisk·er, brisk·est 1. Marked by speed, liveliness, and vigor; energetic: had a brisk walk in the park. 2. , reflecting growing awareness of their taste appeal, nutritional benefits and ability to enhance a vast array of recipes and menu items. "As to the processed segment, quarterly sales growth of 16% primarily reflected expanding interest by both retail and foodservice operators. Our second high-pressure machine is now operational and is assisting us in meeting customer demand. "Our management team not only focuses on implementing our growth initiatives, but also is keenly aware of the vital importance of enhancing operating efficiencies and rigorously containing costs. This vigilance VIGILANCE. Proper attention in proper time. 2. The law requires a man who has a claim to enforce it in proper time, while the adverse party has it in his power to defend himself; and if by his neglect to do so, he cannot afterwards establish such claim, the has certainly paid off for us this year, generating substantial bottom-line benefits." Selling, general and administrative expenses for the quarter were $4.8 million, a decrease of $338,000, or 6.6%, from $5.1 million one year ago. As a percentage of total revenue, SG&A was 5.3% in the most recent quarter, a decrease of 120 basis points from 6.5%. For the year-to-date period, SG&A has been reduced by $297,000 while supporting nearly $21 million in sales growth. Referencing the Company's strong financial condition, Cole stated that Calavo's balance sheet is highly flexible and possesses considerable capacity for leverage. At July 31, 2007, total assets equaled $144.7 million, up from $107.5 million at October 31, 2006. As recently announced, the company has entered into a significant new agreement to introduce Calavo-brand tomatoes to the market. The new initiative, which will further enhance Calavo's diversified diversified (di·verˑ·s fresh products business, could add $20-$25 million to revenues in fiscal 2008, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. company estimates. "We are dedicated to profitable growth," emphasized Cole, "as we strive to build a larger, stronger and more diversified company diversified company A company engaged in varied business operations not directly related to one another. A diversified company is less likely to suffer either a collapse or a spectacular gain in earnings compared with a firm concentrating its operations in a . The new-product initiative referenced above capitalizes on our marketing expertise, favorable brand recognition, excellent distribution network and our substantial investments in building infrastructure." Cole indicated that this program offers a model for Calavo's expansion into additional fresh commodity-produce categories with the potential to contribute meaningfully to financial results. "Our management team is constantly reviewing growth opportunities that can fold in with our established marketing and distribution framework and meet rigorous financial criteria," he said. "Similarly, we will continue to evaluate potential acquisitions, as well as expansion into new geographic regions through distribution agreements. We remain, however, conservative and disciplined in our approach." Looking Ahead: Fourth Quarter and Longer-Term Having posted record results through the first nine months of fiscal 2007, Calavo Growers, Inc. is "on target" for the most successful year in company history, according to Cole. "By all indications, the fiscal year ending October 31, 2007 could witness new financial records for our company. Perhaps of even greater significance, we believe that the company is on a positive course for even greater prosperity and success over the longer-term. "We have put together a seasoned, aggressive and growth-oriented management team with the ability to implement our carefully-refined growth strategies. Calavo's strong balance sheet, substantial liquidity and untapped borrowing capacity are exemplary and well able to support our ambitious agenda for growth. With our dominant position in the sourcing and marketing of fresh avocados, a rapidly expanding processed business and numerous available avenues for growth, we are well-positioned to pursue our primary objectives - drive profitable growth over the longer-term and thereby deliver increasing value to our shareholders." About Calavo Growers, Inc. Calavo Growers, Inc. is the worldwide leader in the procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. and marketing of fresh avocados and other perishable foods, as well as the manufacturing and distribution of processed avocado products. Founded in 1924, Calavo's expertise in marketing and distributing avocados, processed avocados, and other perishable products enables it to serve food distributors, produce wholesalers, supermarkets and restaurants on a global basis. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement This news release contains statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future events and results of Calavo (including certain projections and business trends) that are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. " as defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Actual results and events may differ from those projected as a result of certain risks and uncertainties. These risks and uncertainties include but are not limited to: increased competition, conducting substantial amounts of business internationally, pricing pressures on agricultural products, adverse weather and growing conditions confronting avocado growers, new governmental regulations, as well as other risks and uncertainties detailed from time to time in the company's Securities and Exchange Commission filings, including, without limitation, the company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended October 31, 2006. These forward-looking statements are made only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and the company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. [TABLE OMITTED] [TABLE OMITTED] |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion