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
TheStreet Open House

Calavo Growers, Inc. Announces Fiscal 2012 Third Quarter Operating Results

Stock quotes in this article: CVGW

Calavo Growers, Inc. (Nasdaq-GS: CVGW), a global avocado-industry leader and an expanding provider of value-added fresh foods, today reported that fiscal 2012 third quarter net income rose 109 percent from the corresponding period last year. The company indicated operating results were paced by sharply higher year-over-year fresh avocado volume, strong gross margins in the Calavo Foods business segment and solid incremental contribution from its Renaissance Food Group, LLC (RFG) business segment.

Prior-year quarterly figures include just two months of operating results for RFG, as compared to the most-recent period, which has a full three months of activity. RFG’s results are included as a separate business segment distinct from the company’s Calavo Foods legacy business segment.

For the three months ended July 31, 2012, net income more than doubled to $5.7 million, or $0.38 per diluted share, from $2.7 million, equal to $0.18 per diluted share, in the corresponding quarter last year. Revenues dipped seven percent to $153.2 million from $165.1 million in the fiscal 2011 third quarter, reflecting the decline in fresh avocado prices owing to the significantly larger current-year supply.

Third-quarter gross margin rose 44 percent to $16.2 million, equal to 10.6 percent of total revenues, from $11.2 million, or 6.8 percent of total revenues, in the comparable period of fiscal 2011. Operating income in the most recent quarter climbed 88 percent to $8.5 million, which compares with $4.5 million in the year-earlier third period.

Selling, general and administrative (SG&A) expenses in the most recent quarter totaled $7.8 million, equal to 5.1 percent of revenues, versus $6.7 million, or 4.1 percent revenues in last year’s third period and was comparable to SG&A in fiscal 2012 second quarter. The year-over-year increase in SG&A reflects the addition of RFG, as well as accruals for contingent consideration related to the RFG transaction and an increase in stock-based compensation expense. Contingent consideration accounted for approximately $245,000 of total SG&A expenses in the most recent quarter and amounts to about $415,000 for the fiscal year to date. SG&A as a percentage of gross margin fell by more than 1,200 basis points to 47.9 percent in the most recent quarter from 60.0 percent in the fiscal 2011 third period.

1 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,792.09 -250.81 -1.47%
S&P 500 1,948.41 -23.88 -1.21%
NASDAQ 4,423.6250 -69.7650 -1.55%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs