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Limoneira Company Announces Third Quarter And Nine Months Fiscal Year 2012 Financial Results

About Limoneira Company

Limoneira Company, a 119-year-old international agribusiness headquartered in Santa Paula, California, has grown to become one of the premier integrated agribusinesses in the world. Limoneira (pronounced lē mon΄âra), is a dedicated sustainability company with approximately 8,200 acres of rich agricultural lands, real estate properties and water rights in California. The Company is a leading producer of lemons, avocados, oranges, specialty citrus and other crops that are enjoyed throughout the world. For more about Limoneira Company, visit www.limoneira.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are based on Limoneira’s current expectations about future events and can be identified by terms such as “expect,” “may,” “anticipate,” “intend,” “should be,” “will be,” “is likely to,” “strive to,” and similar expressions referring to future periods.

Limoneira believes the expectations reflected in the forward-looking statements are reasonable but cannot guarantee future results, level of activity, performance or achievements. Actual results may differ materially from those expressed or implied in the forward-looking statements. Therefore, Limoneira cautions you against relying on any of these forward-looking statements. Factors which may cause future outcomes to differ materially from those foreseen in forward-looking statements include, but are not limited to: changes in laws, regulations, rules, quotas, tariffs and import laws; weather conditions that affect production, transportation, storage, import and export of fresh product; increased pressure from disease, insects and other pests; disruption of water supplies or changes in water allocations; pricing and supply of raw materials and products; market responses to industry volume pressures; pricing and supply of energy; changes in interest and currency exchange rates; availability of financing for land development activities; political changes and economic crises; international conflict; acts of terrorism; labor disruptions, strikes or work stoppages; loss of important intellectual property rights; inability to pay debt obligations; inability to engage in certain transactions due to restrictive covenants in debt instruments; government restrictions on land use; increased costs from becoming a public company and market and pricing risks due to concentrated ownership of stock. Other risks and uncertainties include those that are described in Limoneira’s SEC filings, which are available on the SEC’s website at http://www.sec.gov . Limoneira undertakes no obligation to subsequently update or revise the forward-looking statements made in this press release, except as required by law.

Non-GAAP Financial Measures

Due to significant depreciable assets associated with the nature of the Company’s operations and interest costs associated with its capital structure, management believes that earnings before interest, income taxes, depreciation and amortization (“EBITDA”) and Adjusted EBITDA, which excludes impairments on real estate development assets, is an important measure to evaluate the Company’s results of operations between periods on a more comparable basis. Such measurements are not prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), and should not be construed as an alternative to reported results determined in accordance with GAAP. The non-GAAP information provided is unique to the Company and may not be consistent with methodologies used by other companies. Unaudited EBITDA and Adjusted EBITDA are summarized and reconciled to net income, which management considers to be the most directly comparable financial measure calculated and presented in accordance with GAAP as follows:

  Quarter ended July 31,   Nine Months Ended July 31,
  2012       2011     2012       2011
   
Net income $ 5,081,000 $ 4,635,000 $ 3,009,000 $ 1,044,000
Total interest (income) expense, net (50,000 ) 399,000 (211,000 ) 450,000
Income taxes 2,696,000 2,356,000 1,501,000 447,000
Depreciation and amortization   505,000     561,000     1,571,000     1,661,000
EBITDA 8,232,000 7,951,000 5,870,000 3,602,000
Impairments of real estate development assets   -     -     -     1,196,000
Adjusted EBITDA $ 8,232,000   $ 7,951,000   $ 5,870,000   $ 4,798,000
 

Limoneira Company

Consolidated Balance Sheets (unaudited)

 
  July 31,

2012

    October 31,

2011

 
Assets
Current assets:
Cash $ 9,000 $ 21,000
Accounts receivable, net 7,999,000 2,410,000
Notes receivable – related parties 41,000 36,000
Notes receivable - 350,000
Cultural costs 1,625,000 926,000
Prepaid expenses and other current assets 1,719,000 1,385,000
Income taxes receivable   -     1,324,000  
Total current assets 11,393,000 6,452,000
Property, plant and equipment, net 51,319,000 49,187,000
Real estate development 76,223,000 72,623,000
Equity in investments 8,981,000 8,896,000
Investment in Calavo Growers, Inc. 17,942,000 15,009,000
Notes receivable – related parties 16,000 56,000
Notes receivable 2,426,000 2,123,000
Other assets   5,173,000     4,682,000  
Total assets $ 173,473,000   $ 159,028,000  
 
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable $ 4,578,000 $ 2,650,000
Growers payable 2,677,000 1,004,000
Accrued liabilities 3,825,000 2,399,000
Fair value of derivative instrument 1,420,000 -
Current portion of long-term debt   754,000     736,000  
Total current liabilities 13,254,000 6,789,000
Long-term liabilities:
Long-term debt, less current portion 86,506,000 82,135,000
Deferred income taxes 10,668,000 10,160,000
Other long-term liabilities   7,748,000     7,892,000  
Total long-term liabilities 104,922,000 100,187,000
Commitments and contingencies
Stockholders’ equity:
Series B Convertible Preferred Stock – $100.00 par value (50,000 shares

authorized: 30,000 shares issued and outstanding at July 31, 2012

and October 31, 2011) (8.75% coupon rate)

3,000,000 3,000,000
Series A Junior Participating Preferred Stock – $.01 par value (50,000 shares

authorized: 0 issued or outstanding at July 31, 2012 and October 31, 2011)

- -
Common Stock – $.01 par value (19,900,000 shares authorized:
11,202,910 and 11,205,241 shares issued and outstanding at July 31,

2012 and October 31, 2011, respectively)

112,000 112,000
Additional paid-in capital 35,577,000 34,863,000
Retained earnings 16,742,000 14,980,000
Accumulated other comprehensive income (loss)   (134,000 )   (903,000 )
Total stockholders’ equity   55,297,000     52,052,000  
Total liabilities and stockholders’ equity $ 173,473,000   $ 159,028,000  
 

Limoneira Company

Consolidated Statements of Operations (unaudited)

 
Three months ended

July 31,

Nine months ended

July 31,

   
  2012     2011     2012   2011  
Revenues:
Agribusiness $ 23,664,000 $ 19,910,000 $ 47,912,000 $ 36,248,000
Rental operations 962,000 978,000 2,959,000 2,944,000
Real estate development   74,000     2,314,000     162,000     2,421,000  
Total revenues 24,700,000 23,202,000 51,033,000 41,613,000
Costs and expenses:
Agribusiness 13,554,000 10,518,000 36,624,000 27,896,000
Rental operations 649,000 596,000 1,747,000 1,688,000
Real estate development 266,000 2,613,000 755,000 3,270,000
Impairments of real estate development assets - - - 1,196,000
Selling, general and administrative   2,525,000     2,226,000     7,809,000     7,396,000  
Total costs and expenses   16,994,000     15,953,000     46,935,000     41,446,000  
Operating income 7,706,000 7,249,000 4,098,000 167,000
Other income (expense):
Interest expense (148,000 ) (340,000 ) (394,000 ) (962,000 )
Interest income (expense) from derivative instruments 172,000 (87,000 ) 527,000 428,000
Gain on sale of Rancho Refugio/Caldwell Ranch - - - 1,351,000
Interest income 26,000 28,000 78,000 84,000
Other income, net   6,000     155,000     214,000     458,000  
Total other income   56,000     (244,000 )   425,000     1,359,000  
Income before income tax provision

and equity in losses of investments

7,762,000 7,005,000

 

4,523,000 1,526,000

 

Income tax provision (2,696,000 ) (2,356,000 ) (1,501,000 ) (447,000 )
Equity in earnings (losses) of investments   15,000     (14,000 )   (13,000 )   (35,000 )
Net income 5,081,000 4,635,000 3,009,000 1,044,000
Preferred dividends   (66,000 )   (66,000 )   (197,000 )   (197,000 )
Net income applicable to common stock $ 5,015,000   $ 4,569,000   $ 2,812,000   $ 847,000  
                       
Basic net income per common share $ 0.45   $ 0.41   $ 0.25   $ 0.08  
                         
Diluted net income per common share $ 0.45   $ 0.41   $ 0.25   $ 0.08  
                       
Dividends per common share $ 0.03   $ 0.03   $ 0.09   $ 0.09  
 
Weighted-average common shares outstanding-basic 11,198,000 11,203,000 11,201,000 11,204,000
Weighted-average common shares outstanding-diluted 11,198,000 11,203,000 11,201,000 11,208,000
 




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