Limoneira Sees Record Operating Results for 2016
SANTA PAULA, CA - Limoneira closed out 2016 on a high note, with revenue increases and records to show for it as the company kicks off a new year.
"Fiscal 2016 was a record year in terms of operating results for our company as we continued to execute on our long-term growth strategy,” said Harold Edwards, President and Chief Executive Officer, in a press release. “In fiscal 2016, we sold lemons to approximately 170 U.S. and international customers and we expect this to grow in fiscal 2017 as we continue to service new markets and new customers in our existing markets. As an example, earlier this year, we announced the formation of Limoneira South Africa, which underscores our goal to become a leading global, year-round citrus agribusiness. We are working with business partners in South Africa, Chile, Argentina, and Mexico, and Limoneira plans to manage the marketing and sales function from locally sourced lemons."
Highlights for the quarter overall included:
- Revenue increased 37% to $19.5 million, compared to revenue of $14.2 million in the fourth quarter of the previous fiscal year.
- EBITDA was $2.0 million in the fourth quarter of fiscal year 2016 compared to $2.4 million in the same period of fiscal year 2015.
- Agribusiness revenue was $18.2 million, compared to $12.9 million in the fourth quarter last year, primarily due to stronger lemon sales.
- Fourth quarter fiscal year 2015 net income includes a $5.0 million gain associated with the sale of 140,000 shares of Calavo Growers, Inc. common stock and a $0.9 million gain on the sale of the Company's Wilson Ranch.
"In addition to very strong agribusiness performance in fiscal 2016, this year also highlighted our ability to strategically monetize investments and non-core assets, including the sale of Calavo stock and the sale of a conservation easement on a portion of one our Ventura County ranches, which combined generated approximately $4.4 million of gain in the year,” Edwards said.
Alex Teague, Senior Vice President, expressed optimism for 2017 based off of operations that opened in the last year.
"In June, we announced that we are adding oranges and specialty citrus varieties to our 'One World of Citrus' model,” Teague said. “We began our direct selling program for lemons six years ago and have been very pleased with its success. We are excited to have our oranges and other citrus varieties marketed in Limoneira cartons. As our lemon business grows, our customers recognize the quality and consistency they receive with Limoneira lemons, and we are seeing increased demand from our customers for other citrus varieties."
So, what’s to come for Limoneira in the year ahead?
“We continue to make progress expanding our agribusiness. As we begin fiscal year 2017, we expect to benefit from the investments we made in fiscal 2016 including our more efficient packing house,” Edwards concluded. “We are very well positioned to capitalize on opportunities to expand our acreage of productive land, as well as driving organic growth."
You can access details in a company conference call through the Investor Relations section of its website at www.limoneira.com. Limoneira noted that the webcast will be archived and accessible on the same website for 30 days following the call, which took place yesterday, January 10.