Limoneira CO Q1 FY2025 earnings call

• Limoneira is unlocking shareholder value through land use conversion, water monetization, and growing avocado/citrus returns. - Achieved improved operating expenses efficiency and bottom line performance despite a temporary oversupplied lemon market. - Monetized water pumping rights for a $1.5 million gain. - Plan to expand avocado production by 1,000 acres by fiscal year 2027 to capitalize on consumer demand. - Residential joint venture with Lewis Group expects to receive $165 million over the next 6 fiscal years. - FEMA revised flood zone map reduces mandatory flood insurance for ~1,100 residents, enhancing interest in real estate in affected zones. - Evolving farm management services to be a value-add partner in the agricultural ecosystem, leveraging technology and expertise.

For the first quarter of fiscal year 2025, total net revenue was $34.3 million, compared to $39.7 million in the first quarter of the previous fiscal year. Agribusiness revenue was $32.9 million versus $38.3 million in the prior year. Other operations revenue was $1.5 million in Q1 2025 compared to $1.4 million in the same period last year. Avocado revenue in Q1 2025 was $162,000 (no avocado revenue in the comparable period last year), with approximately 73,000 pounds of avocados sold at an average price of $2.25 per pound. Orange revenue was $1.6 million in Q1 2025 versus $1.1 million in the first quarter of fiscal year 2024, with approximately 75,000 cartons of oranges sold at an average price of $20.91 per carton. Fresh packed lemon sales were $21.2 million in Q1 2025 versus $23.9 million in the prior year, brokered lemons and other lemon sales were $2.2 million in Q1 2025 versus $2.9 million in the same period last year. Specialty citrus and wine grape revenue was $0.5 million in Q1 2025 versus $1.1 million in the first quarter of fiscal year 2024. Farm management revenues were $1.2 million in Q1 2025 versus $2 million in the same period of fiscal year 2024.

• Expect fresh lemon volumes to be in the range of 5 million to 5.5 million cartons for fiscal year 2025. - Anticipate avocado volumes to be in the range of 7 million to 8 million pounds for fiscal year 2025. - Expect to receive $165 million from the residential joint venture over the next 6 fiscal years. - Strong EBITDA outlook underpinned by plans to expand avocado production by 1,000 acres by fiscal year 2027, though 2025 avocado volume may be lower due to alternate bearing of avocado trees.

• Temporary oversupply in the lemon market impacting top line. - Uncertainty around potential new tariff legislation affecting avocado pricing. - Complexity of the FEMA flood zone map revision process. - Market volatility in agricultural commodities.

Q: Ben Klieve inquired about the Water right transaction per acre foot number and context.

A: Mark Palamountain responded that it was due to opportunistic demand, benchmarked to developer fees in adjacent cities, and more transactions were expected in 2025.

Q: Ben Klieve followed up with questions about avocado acreage expansion feasibility and other growers.

A: Mark Palamountain stated that an additional 250-500 acres could be expanded for avocados, with Ventura/Santa Barbara ideal for avocado growth due to temperature, and Harold Edwards added about cold tolerance of avocados and nursery stock availability as limiting factors for expansion