Limoneira CO Q4 FY2024 earnings call

• Full-year net revenue grew 6% to a record $191.5 million, and adjusted EBITDA was $26.7 million, improving from a loss in fiscal year 2023. - Achieved avocado and lemon volume guidance for the year, with 15.1 million pounds of avocados sold in 2024 being the most in almost 15 years. - Plan to expand avocado production by 1,000 acres through fiscal year 2027. - Real estate milestones: Phase II of Harvest project sold out with 1,261 residential units closed; Santa Paula City Council approved increasing residential units to 2,050; flood zone map revised in May 2025 reducing mandatory flood insurance. - Balance sheet: Net debt as of October 31, 2024, was $37.6 million; 50-50 real estate development joint venture had $66.9 million in cash and cash equivalents.

In the fourth quarter of fiscal year 2024, agribusiness revenue was $42.5 million, and other operations revenue was $1.4 million. For the full fiscal year 2024, total net revenue was $191.5 million, driven by record avocado sales. Avocados had $8.9 million in revenue in Q4 2024, with approximately 4.6 million pounds sold at an average price of $1.92 per pound. Lemon revenue in Q4 2024 was $8.4 million for fresh packed, with brokered and other lemon sales at $14.6 million. Orange revenue in Q4 2024 was $1.7 million. Specialty citrus and other crop revenue was $3.6 million in Q4 2024. Farm management revenues were $2.9 million in Q4 2024. In fiscal year 2024, adjusted EBITDA was $26.7 million, compared to a loss of $224,000 in fiscal year 2023.

• Fiscal year 2025 fresh lemon volumes expected to be in the range of 5 million to 5.5 million cartons. - Fiscal year 2025 avocado volumes expected to be in the range of 7 million to 8 million pounds. - Expect to receive total proceeds of $180 million from Harvest LLC over seven fiscal years, with $15 million received in fiscal year 2024. - Plan to expand avocado production by 1,000 acres through fiscal year 2027 to capitalize on consumer demand.

• Weather events affecting crop yields and fresh utilization rates. - Regulatory changes impacting water monetization and real estate development. - Alternate bearing nature of avocado trees potentially affecting volume projections.

Q: Ben Klieve from Lake Street Capital Markets asked about water monetization efforts, specifically relative scale of meaningful events in fiscal '25 compared to prior events.

A: Harold Edwards said the Colorado River water rights program won't have new monetization in 2025, but meaningful water monetization from the Santa Paula water basin is expected, with those transactions having significant value.

Q: Gerard Sweeney from ROTH Capital Partners asked about avocados, including details on the 1,000-acre expansion and economics.

A: Harold Edwards and Mark Palamountain discussed that they're in a replanting process, with higher density trees and improved farming practices expected to increase avocado yields per acre from around 9,000 pounds currently to 15,000-20,000 pounds in the future.

Q: Ben Klieve from Lake Street Capital Markets followed up on avocado yield per acre and drivers of increase.

A: Mark Palamountain explained that higher tree density, improved irrigation, pruning, and drone sprays are key drivers, aiming for higher yields per acre in the coming years.