Calavo Growers Inc. Files 10-Q for Period Ending January 31, 2024

TL;DR

<b>Calavo Growers Inc. filed its Q1 2024 10-Q report, detailing financial positions and equity changes.</b>

AI Summary

CALAVO GROWERS INC (CVGW) filed a Quarterly Report (10-Q) with the SEC on March 11, 2024. Calavo Growers Inc. filed a 10-Q report for the period ending January 31, 2024. The filing covers the first quarter of fiscal year 2024. Key financial statement information and disclosures are included. The report details common stock, retained earnings, and additional paid-in capital as of January 31, 2024. Information regarding employee stock options and restricted stock units is also presented.

Why It Matters

For investors and stakeholders tracking CALAVO GROWERS INC, this filing contains several important signals. This 10-Q filing provides investors with the latest quarterly financial performance and position of Calavo Growers Inc. Understanding the changes in equity, stock options, and other financial metrics is crucial for assessing the company's current health and future prospects.

Risk Assessment

Risk Level: medium — CALAVO GROWERS INC shows moderate risk based on this filing. The company's financial health and operational performance are subject to various risks inherent in the agricultural and food industries, including market fluctuations and operational challenges, as indicated by the nature of a 10-Q filing which typically details such factors.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-Q to understand Calavo Growers Inc.'s current financial standing and potential risks.

Key Numbers

• 2024-01-31 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-03-11 — Filing Date (FILED AS OF DATE)
• 10-Q — Form Type (FORM TYPE)
• 000-33385 — SEC File Number (SEC FILE NUMBER)

Key Players & Entities

• CALAVO GROWERS INC (company) — FILER
• CVGW (company) — ticker symbol
• 2024-01-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-03-11 (date) — FILED AS OF DATE
• 1141A CUMMINGS ROAD (address) — BUSINESS ADDRESS STREET 1
• SANTA PAULA (location) — BUSINESS ADDRESS CITY
• CA (location) — BUSINESS ADDRESS STATE
• 93060 (postal_code) — BUSINESS ADDRESS ZIP

FAQ

Risk Factors

• Financial Reporting [medium — financial]: The filing includes detailed financial statements and disclosures for the period ending January 31, 2024.
• Business Operations [medium — operational]: The 10-Q report provides insights into the company's operational activities during the first quarter of fiscal year 2024.

Industry Context

Calavo Growers Inc. operates within the agriculture and food production industry, specifically focusing on avocados and other perishable products.

Regulatory Implications

The filing is made in accordance with SEC regulations for quarterly reports (10-Q) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Review the consolidated balance sheets for changes in assets, liabilities, and equity.
2. Analyze the consolidated statements of operations for revenue and net income trends.
3. Examine the notes to the financial statements for detailed disclosures on accounting policies and significant events.

Key Dates

• 2024-01-31: Quarter End Date — End of the reporting period for the 10-Q filing.
• 2024-03-11: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing analyzed for the period ending January 31, 2024. Comparative data from previous filings will be available in subsequent reports.

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value per share CVGW Nasdaq Glo

Filing Documents

• cvgw-20240131x10q.htm (10-Q) — 1434KB
• cvgw-20240131xex10d1.htm (EX-10.1) — 91KB
• cvgw-20240131xex31d1.htm (EX-31.1) — 14KB
• cvgw-20240131xex31d2.htm (EX-31.2) — 14KB
• cvgw-20240131xex32d1.htm (EX-32.1) — 10KB
• 0001558370-24-002910.txt (&nbsp;) — 6366KB
• cvgw-20240131.xsd (EX-101.SCH) — 33KB
• cvgw-20240131_cal.xml (EX-101.CAL) — 68KB
• cvgw-20240131_def.xml (EX-101.DEF) — 155KB
• cvgw-20240131_lab.xml (EX-101.LAB) — 372KB
• cvgw-20240131_pre.xml (EX-101.PRE) — 270KB
• cvgw-20240131x10q_htm.xml (XML) — 1075KB

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q, including the "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Item 2, contains statements relating to future events and results of Calavo Growers, Inc. and its consolidated subsidiaries (referred to in this report as "Calavo," the "Company," "we," "us" or "our"), including certain projections and business trends, that are "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995, that involve risks, uncertainties and assumptions. These statements are based on our current expectations and are not promises or guarantees. If any of the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of Calavo may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including, but not limited to, any projections of revenue, gross profit, expenses, income/(loss) from unconsolidated entities, earnings, earnings per share, tax provisions, cash flows and currency exchange rates; the impact of acquisitions or debt or equity investments or other financial items; any statements of the plans, strategies and objectives of management for future operations, including execution of restructuring and integration (including information technology systems integration) plans; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on Calavo and its financial performance, whether attributable to Calavo or any of its unconsolidated entities; any statements regarding pending investigations, legal claims or tax disputes; any statements of expectation or belief; any statements about future risks associated with doing business internationally (including possible restrictive U.S. and foreign governme

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements (unaudited)

Financial Statements (unaudited): Consolidated Balance Sheets –January 31, 2024 and October 31, 202 3 5 Consolidated Statements of Operations – Three Months Ended January 31, 2024 and 2023 6 Consolidated Statements of Cash Flows –Three Months Ended January 31, 2024 and 2023 7 Consolidated Statements of Shareholders' Equity – Three Months Ended January 31, 2024 and 2023 8

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 20 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 29 Item 4.

Controls and Procedures

Controls and Procedures 29

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 30 Item 1A.

Risk Factors

Risk Factors 30 Item 5. Other Information 30 Item 6. Exhibits 30

Signatures

Signatures 31 4 Table of Contents

FINANCIAL INFORMATIO N

PART I. FINANCIAL INFORMATIO N

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS CALAVO GROWERS, INC. CONSOLIDATED BALANCE SHEET S (UNAUDITED) (in thousands) January 31, October 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 5,658 $ 2,091 Restricted cash — 761 Accounts receivable, net of allowances of $ 3,591 (2024) and $ 3,364 (2023) 35,158 33,897 Inventories 39,551 31,571 Prepaid expenses and other current assets 10,256 11,739 Advances to suppliers 13,409 14,684 Current assets held for sale 140,671 37,533 Income taxes receivable 894 1,094 Total current assets 245,597 133,370 Property, plant, and equipment, net 59,206 60,924 Operating lease right-of-use assets 17,507 18,357 Investments in unconsolidated entities 2,903 2,902 Deferred income tax assets 3,010 3,010 Goodwill 10,211 10,211 Non-current assets held for sale — 105,424 Intangibles, net 275 275 Other assets 55,974 52,381 $ 394,683 $ 386,854 Liabilities and shareholders' equity Current liabilities: Payable to growers $ 21,964 $ 14,788 Trade accounts payable 4,916 5,097 Accrued expenses 20,582 15,809 Current liabilities held for sale 57,222 29,911 Other current liabilities 11,000 11,000 Current portion of term loan 792 647 Current portion of operating leases 3,585 3,663 Current portion of long-term obligations and finance leases 834 831 Total current liabilities 120,895 81,746 Long-term liabilities: Borrowings pursuant to line of credit, long-term 41,677 35,024 Long-term liabilities held for sale — 29,295 Long-term portion of term loan 3,213 3,416 Long-term portion of operating leases 16,488 17,328 Long-term portion of obligations and finance leases 4,478 4,645 Deferred income tax liabilities 746 746 Other long-term liabilities 4,653 4,425 Total long-term liabilities 71,255 94,879 Commitments and contingencies Shareholders' equity: Common stoc

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. Description of the business

Business

Business Calavo Growers, Inc. (referred to in this report as "Calavo", the "Company", "we", "us" or "our"), is a global leader in the avocado industry and a provider of value-added fresh food. Our expertise in marketing and distributing avocados, prepared avocados, and other perishable foods allows us to deliver a wide array of fresh and prepared food products to retail grocery, foodservice, club stores, mass merchandisers, food distributors and wholesalers on a worldwide basis. We procure avocados from California, Mexico and other growing regions around the world. Through our various operating facilities, we (i) sort, pack, and/or ripen avocados, tomatoes and/or Hawaiian grown papayas, (ii) create, process and package a portfolio of healthy fresh foods including fresh-cut fruit and vegetables, and prepared foods and (iii) process and package guacamole and salsa. We distribute our products both domestically and internationally and we report our operations in two different business segments: Grown and Prepared. We and certain of our subsidiaries have entered into non-binding, exclusive negotiations regarding the potential sale of all of the assets used in our Fresh Cut business and certain related real property for approximately $ 100.0 million, subject to certain adjustments that may be included in a binding agreement. The Proposed Transaction is expected to close in the second quarter of fiscal 2024. The Fresh Cut business represents substantially all of the business of the Prepared segment other than the guacamole business, which would be retained following the Proposed Transaction. In the first quarter of 2024, management has concluded that the Fresh Cut business meets the requirements to be classified as held for sale and discontinued operations. As a result, the financial results of that business are reported as discontinued operations in the accompanying statements of operations, and its assets and liabilities are reflected as amounts held for sale in th

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View this 10-Q filing on SEC EDGAR