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Calavo Growers, Inc. (Nasdaq-GS: CVGW), a global avocado-industry leader and an expanding provider of value-added fresh food, today reported that fiscal 2013 first-quarter revenues and gross margin climbed to new first-quarter records paced by sharply higher unit volume in its Fresh business segment and robust year-over-year top-line growth in its Renaissance Food Group, LLC (RFG) business segment. Net income increased 31 percent year-over-year, before giving effect to approximately $1.2 million in performance-based earn-out consideration expense related to the June 2011 acquisition of RFG.
Net income for the three months ended January 31, 2013 before the effect of the RFG performance-based earn-out consideration expense registered $3.5 million, equal to $0.24 per diluted share, versus $2.8 million, or $0.19 per diluted share in the first quarter last year. Including the RFG consideration expense, net income stood unchanged at $2.7 million, equal to $0.18 per diluted share. Revenues advanced 19 percent to $139.5 million in the most recent quarter from $117.4 million in the fiscal 2012 first period.
First-quarter gross margin rose 10 percent to $13.1 million, or 9.4 percent of total sales, from $11.9 million, or 10.1 percent of total sales, in the like period one year ago. Income from operations in the most recent quarter totaled $4.3 million, a modest decrease from $4.4 million in the initial period one year ago.
Chairman, President and Chief Executive Officer Lee E. Cole stated: “Calavo delivered excellent operating results in the first quarter with each of the company’s three business segments—Fresh, Calavo Foods and RFG—registering higher revenues to pace our performance. Of particular note, we sold 36 percent more cartons of fresh avocados quarter-over-quarter—nearly 900,000 additional units or about 22 million pounds—reflective of the steady rise in demand. Furthermore, in line with expectations, we saw a sharp recovery in fresh tomato volume and pricing over last year’s market glut, with units sold rising 132 percent, to augment results in the Fresh business segment.