Limoneira reported revenue increases for the third quarter of 2016, primarily from higher-than-expected sales and prices of its avocados.
Revenues for the Santa Paula agribusiness and real estate development company grew 34 percent compared to the third quarter last year, from $29.8 million to $39.9 million, mirroring 35 percent growth in its agribusiness revenue to $38.4 million.
Oranges, lemons and specialty citrus all saw higher volumes offset by slight decreases in prices. Costs and expenses for the quarter were $25.7 million, a 16.8 percent increase over the same period in 2015, primarily related to higher harvest and packing costs for the agribusiness segment.
Operating income for the quarter was $14.2 million and net income per diluted share rose to 71 cents, compared to 36 cents the prior year.
Year-to-date, the company has reported revenue of $92.3 million, a 7 percent bump over 2015. CEO Harold Edwards reiterated guidance of $8.6 million to $9.1 million in operating income for the fiscal year 2016 and increased its earnings per diluted share expectations to 45-50 cents.
Increases in operating income related to a sale of Calavo Growers stock, revenues from farmworker housing units and avocado sales were partially offset by slower-than-expected efficiencies from the company’s new Santa Paula packinghouse, transaction costs for the joint Harvest at Limoneira venture with the Lewis Group, higher end-of-year incentives and increased depreciation expenses.
Since it came online in March, the new facility has increased the company’s capacity, which will enable it to incorporate additional produce from 1,500 currently nonbearing acres. Land values have also been strengthening steadily, Edwards said.
• Contact Marissa Nall at [email protected]