February 22, 2024
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Limoneria’s 2023 revenues dip, fourth quarter up

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Santa Paula-based Limoneira’s fiscal year 2023 revenues dipped 2.6% from fiscal year 2022, $179.9 million compared to $184.6 million, the agribusiness reported Dec. 21. 

For the fourth quarter of fiscal year 2023, the company’s total net revenues were up 4.3% compared to fourth quarter 2022, $41.4 million to $39.7 million, the company said.

Fiscal year 2023 and its fourth quarter ended Oct. 31.

Harold Edwards, president and CEO of the 130-year-old company, said in an earnings call that he was “pleased with our performance in fiscal year 2023 as we achieved our full year avocado and revised lemon volume guidance despite harsh weather conditions and softer pricing throughout most of the year.”

Additionally, he said, Limoneira’s “strategic shift towards an ‘asset-lighter’ business model progressed this year and is reflected in our latest results, with brokered lemons and other lemon sales growing year-over-year for the second quarter in a row in the fourth quarter and our farm management revenue reaching close to $10 million this fiscal year.”

Founded in 1893, Limoneira is a producer of lemons, avocados and other crops with 11,100 acres of agricultural lands, real estate properties, and water rights in California, Arizona, Chile and Argentina.

It’s one of the biggest agribusinesses in Ventura County.

Its operating income for fiscal year 2023 was $10.8 million, compared to $2.2 million operating income the prior fiscal year. 

Net income applicable to common stock was $8.9 million for fiscal year 2023, compared to net loss applicable to common stock of $737,000 for fiscal year 2022. 

Net income per diluted share for fiscal year 2023 was $0.50, compared to net loss per diluted share of $0.04 for the previous fiscal year.

For fiscal year 2023, net cash provided by investing activities was $90.6 million. It was $19.4 million for fiscal year 2022.

Net cash used in financing activities was $71.9 million for fiscal year 2023. It was $33.5 million for the prior fiscal year.

Agribusiness revenue for the fourth quarter of 2023 was $40.1 million, compared to $38.2 million fourth quarter 2022.

Other operations revenue for fiscal year 2023’s fourth quarter was $1.3 million, compared to $1.4 million in fiscal year 2022’s fourth quarter.

During the earnings call, Edwards made little reference to the company’s Dec. 1 announcement that it’s exploring a sale, merger, acquisition or buyout that would take the company private to maximize value for its stockholders. 

Limoneira is unlikely to leave the area if it sells some or all of the company as part of its strategic review, Edwards told the Business Times Dec. 11.

The company’s market capitalization as of Dec. 21 was $345 million. Its assets are projected to be between $550 million and $700 million, according to its investor disclosure. 

While currently a micro-cap stock with market value under $350 million, unlocking the value of its land and other holdings could handsomely reward shareholders. 

Limoneira’s stock price has increased 23% since its Dec. 1 announcement.

It opened the day of the statement at $15.30.

It closed Dec. 21 at $19.19.