Mission Produce Files 10-Q for Q2 2024

TL;DR

Mission Produce filed its Q2 2024 10-Q. Check financials.

AI Summary

Mission Produce, Inc. filed its 10-Q for the period ending April 30, 2024. The filing covers the second quarter of fiscal year 2024. Key financial data and operational details for this period are presented.

Why It Matters

This filing provides investors with an update on Mission Produce's financial performance and operational status for the second quarter of fiscal year 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags.

Key Players & Entities

• Mission Produce, Inc. (company) — Filer of the 10-Q
• 20240430 (date) — End of the reporting period
• 20240606 (date) — Filing date

FAQ

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share AVO NASDAQ Global Select Mark

Filing Documents

• avo-20240430.htm (10-Q) — 1252KB
• ex32amendmenttoamendedandr.htm (EX-3.2) — 7KB
• offerletterdatedfebruary21.htm (EX-10.26) — 24KB
• exhibit311_2024-q2.htm (EX-31.1) — 9KB
• exhibit312_2024-q2.htm (EX-31.2) — 9KB
• exhibit321_2024-q2.htm (EX-32.1) — 4KB
• exhibit322_2024-q2.htm (EX-32.2) — 4KB
• image_0a.jpg (GRAPHIC) — 258KB
• 0001802974-24-000028.txt ( ) — 6564KB
• avo-20240430.xsd (EX-101.SCH) — 36KB
• avo-20240430_cal.xml (EX-101.CAL) — 92KB
• avo-20240430_def.xml (EX-101.DEF) — 138KB
• avo-20240430_lab.xml (EX-101.LAB) — 475KB
• avo-20240430_pre.xml (EX-101.PRE) — 338KB
• avo-20240430_htm.xml (XML) — 957KB

- FINANCIAL INFORMATION

PART I- FINANCIAL INFORMATION 5 Item 1.

Financial Statements

Financial Statements 5 Condensed Consolidated Balance Sheets (Unaudited) 5 Condensed Consolidated Statements of Income (Loss) (Unaudited) 6 Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) 7 Condensed Consolidated Statements of Changes in Equity (Unaudited) 8 Condensed Consolidated Statements of Cash Flows (Unaudited) 9 Notes to Unaudited Condensed Consolidated Financial Statements 11 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 19 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 28 Item 4.

Controls and Procedures

Controls and Procedures 28

- OTHER INFORMATION

PART II- OTHER INFORMATION 29 Item 1.

Legal Proceedings

Legal Proceedings 29 Item 1A.

Risk Factors

Risk Factors 29 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 29 Item 3. Defaults Upon Senior Securities 29 Item 4. Mine Safety Disclosures 29 Item 5. Other Information 30 Item 6. Exhibits 30

FORWARD LOOKING STATEMENTS

FORWARD LOOKING STATEMENTS This quarterly report on Form 10-Q contains forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, which statements involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may", "will", "should", "expects", "plans", "anticipates", "could", "intends", "target", "projects", "contemplates", "believes", "estimates", "predicts", "potential" or "continue" or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans or intentions. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. We believe that these factors include, but are not limited to, the following: Risks related to our business, including: limitations regarding the supply of fruit, either through purchasing or growing; fluctuations in the market price of fruit; increasing competition; risks associated with doing business internationally, including Mexican and Peruvian economic, political and/or societal conditions; inflationary pressures; establishment of sales channels and geographic markets; loss of one or more of our largest customers; general economic conditions or downturns; supply chain failures or disruptions; disruption to the supply of reliable and cost-effective transportation; failure to recruit or retain employees, poor employee relations, and/or ineffective organizational structure; inherent farming risks, including climate change; seasonality in operating results; failures associated with informa

- FINANCIAL INFORMATION

PART I- FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements MISSION PRODUCE, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (In millions, except for shares) April 30, 2024 October 31, 2023 Assets Current Assets: Cash and cash equivalents $ 46.2 $ 42.9 Restricted cash 1.0 0.3 Accounts receivable Trade, net of allowances of $ 1.3 and $ 0.9 , respectively 99.5 74.1 Grower and fruit advances 3.2 0.9 Other 12.9 12.4 Inventory 94.9 70.8 Prepaid expenses and other current assets 8.2 9.1 Income taxes receivable 10.4 9.6 Total current assets 276.3 220.1 Property, plant and equipment, net 523.1 523.2 Operating lease right-of-use assets 70.1 72.4 Equity method investees 29.6 31.0 Deferred income tax assets, net 8.8 8.5 Goodwill 39.4 39.4 Intangible asset, net — 0.5 Other assets 19.6 19.7 Total assets $ 966.9 $ 914.8 Liabilities and Equity Liabilities Accounts payable $ 26.4 $ 27.2 Accrued expenses 32.6 26.4 Income taxes payable 1.7 1.6 Grower payables 49.2 26.4 Short-term borrowings — 2.8 Notes payable 0.5 — Loans from noncontrolling interest holders—current portion 0.2 0.5 Long-term debt—current portion 3.1 3.4 Operating leases—current portion 6.1 6.6 Finance leases—current portion 1.9 2.6 Total current liabilities 121.7 97.5 Long-term debt, net of current portion 167.1 148.6 Loans from noncontrolling interest holders, net of current portion 1.8 2.5 Operating leases, net of current portion 69.1 71.0 Finance leases, net of current portion 19.9 14.7 Income taxes payable 1.3 2.3 Deferred income tax liabilities, net 22.7 23.5 Other long-term liabilities 23.3 26.4 Total liabilities 426.9 386.5 Commitments and contingencies (Note 7) Shareholders' Equity Common stock ($ 0.001 par value, 1,000,000,000 shares authorized; 70,909,467 and 70,728,404 shares issued and outstanding as of April 30, 2024 and October 31, 2023, respectively) 0.1 0.1 Additional paid-in capital 235.6 233.4 Accumulated other comprehensive loss ( 0.4 ) ( 0.9 ) Retained earnings 278.

Business

Business Mission Produce, Inc. together with its consolidated subsidiaries ("Mission," "the Company," "we," "us" or "our"), is a global leader in the avocado industry. The Company's expertise lies in the farming, packaging, marketing and distribution of avocados to food retailers, distributors and produce wholesalers worldwide. The Company procures avocados principally from California, Mexico and Peru. Through our various operating facilities, we grow, sort, pack, bag and ripen avocados and a small amount of other fruits for distribution to domestic and international markets. We report our results of operations in three operating segments: Marketing and Distribution, International Farming and Blueberries (see Note 12). Basis of presentation and consolidation The unaudited interim condensed consolidated financial statements are presented in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and include the Company's consolidated domestic and international subsidiaries and variable interest entity ("VIE") for which we are the primary beneficiary and have a controlling interest. Certain information and disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Accordingly, these unaudited interim condensed consolidated financial statements and accompanying footnotes should be read in conjunction with the Company's Annual Report for the year ended October 31, 2023. In the opinion of management, all adjustments, of a normal recurring nature, considered necessary for a fair statement have been included in the unaudited condensed consolidated financial statements. Interim results of operations are not necessarily indicative of future results, including results that may be expected for the twelve months ended October 31, 2024. Recently issued accounting and disclosure standards In March 2024, the Secu

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