This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Calavo Growers, Inc. Posts Sharply Higher Fiscal 2012 Second Quarter And Six-Month Results Before Giving Effect To Mexican Tax Item

Calavo Growers, Inc. (Nasdaq-GS: CVGW), a global avocado-industry leader and an expanding provider of value-added fresh food, today reported that fiscal 2012 second quarter net income nearly doubled on a 17 percent increase in revenues from the corresponding period last year, before the effect of an unanticipated $1.9 million income tax expense related to an unfavorable ruling in a disputed matter with Mexico’s tax authority’s examination of the 2004 tax year.

Operating results for the most-recent quarter include those of Renaissance Food Group, LLC (RFG), which the company acquired on June 1, 2011. RFG’s results are now included as a separate business segment distinct from the company’s legacy Calavo Foods business segment.

For the three months ended April 30, 2012, net income before the Mexican tax item rose 84 percent to $4.4 million, equal to $0.30 cents per diluted share, from $2.4 million, or $0.16 per diluted share, in the fiscal 2011 second quarter. Including the effect of the Mexican tax ruling, which the company learned of after the close of the second fiscal quarter, net income was $2.5 million, or $0.17 per diluted share.

Revenues increased to $139.0 million from $118.7 million in the like quarter one year earlier.

Second-quarter gross margin climbed 57 percent to $14.7 million, or 10.6 percent of total revenues, from $9.3 million, equal to 7.9 percent of total revenues in the fiscal 2011 comparable quarter. Operating income rose 87 percent to $7.1 million from $3.8 million in the last fiscal year’s second period.

As previously disclosed, the company had been awaiting the resolution of two outstanding assessments by Mexico’s tax authority related to the examination of the 2004 tax year. Contrary to the expectations of management and the company’s outside legal advisors in Mexico, the Mexican appellate court upheld an earlier ruling against Calavo. The company does not believe that further appeal of the ruling will be beneficial. The assessment of approximately $1.9 million was recorded as an income tax expense for the second fiscal quarter. The company stated that this unexpected item relates solely to resolution of issues pertaining to the tax-year-ended December 31, 2004.

1 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.18 0.00%
FB $117.43 0.00%
GOOG $692.36 0.00%
TSLA $232.32 0.00%
YHOO $36.01 0.00%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs