Calavo Growers Q2 2024 10-Q Filed

TL;DR

Calavo Growers filed its Q2 2024 10-Q: Assets $177.61M, Liabilities $17.80M. Check financials.

AI Summary

Calavo Growers Inc. filed its 10-Q for the period ending April 30, 2024. The company reported total assets of $177.61 million and total liabilities of $17.80 million. Key financial statement items like retained earnings, noncontrolling interest, and additional paid-in capital were detailed as of various dates throughout fiscal years 2023 and 2024.

Why It Matters

This filing provides investors with an updated look at Calavo Growers' financial health and position as of the end of their second fiscal quarter in 2024.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing with no immediate red flags or significant negative news indicated.

Key Numbers

• $177.61M — Total Assets (As of April 30, 2024)
• $17.80M — Total Liabilities (As of April 30, 2024)

Key Players & Entities

• CALAVO GROWERS INC (company) — Filer of the 10-Q
• 20240430 (date) — End of the reporting period
• 17761000 (dollar_amount) — Total assets
• 17800000 (dollar_amount) — Total liabilities

FAQ

Key Financial Figures

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

Filing Documents

• cvgw-20240430x10q.htm (10-Q) — 2071KB
• cvgw-20240430xex31d1.htm (EX-31.1) — 14KB
• cvgw-20240430xex31d2.htm (EX-31.2) — 14KB
• cvgw-20240430xex32d1.htm (EX-32.1) — 10KB
• 0001558370-24-009042.txt ( ) — 7752KB
• cvgw-20240430.xsd (EX-101.SCH) — 31KB
• cvgw-20240430_cal.xml (EX-101.CAL) — 70KB
• cvgw-20240430_def.xml (EX-101.DEF) — 151KB
• cvgw-20240430_lab.xml (EX-101.LAB) — 367KB
• cvgw-20240430_pre.xml (EX-101.PRE) — 265KB
• cvgw-20240430x10q_htm.xml (XML) — 1573KB

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 –April 30, 2024 and October 31, 2023 4 Consolidated Statements of Operations –Three and Six Months Ended April 30, 2024 and 2023 5 Consolidated Statements of Cash Flows –Three and Six Months Ended April 30, 2024 and 2023 6 Consolidated Statements of Shareholders' Equity – Three and Six Months Ended April 30, 2024 and 2023 7

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 8 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 21 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 31 Item 4.

Controls and Procedures

Controls and Procedures 31

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 32 Item 1A.

Risk Factors

Risk Factors 32 Item 5. Other Information 32 Item 6. Exhibits 32

Signatures

Signatures 33 3 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) April 30, October 31, 2024 2023 Assets Current assets: Cash and cash equivalents $ 4,273 $ 2,091 Restricted cash — 761 Accounts receivable, net of allowances of $ 4,127 (2024) and $ 3,364 (2023) 56,142 33,897 Inventories 41,554 31,571 Prepaid expenses and other current assets 8,188 11,739 Advances to suppliers 11,196 14,684 Current assets held for sale 138,927 37,533 Income taxes receivable 2,064 1,094 Total current assets 262,344 133,370 Property, plant, and equipment, net 57,796 60,924 Operating lease right-of-use assets 16,664 18,357 Investments in unconsolidated entities 3,107 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 57,962 52,381 $ 411,369 $ 386,854 Liabilities and shareholders' equity Current liabilities: Payable to growers $ 37,491 $ 14,788 Trade accounts payable 6,505 5,097 Accrued expenses 19,829 15,809 Current liabilities held for sale 53,261 29,911 Other current liabilities 11,000 11,000 Current portion of term loan 813 647 Current portion of operating leases 3,401 3,663 Current portion of long-term obligations and finance leases 882 831 Total current liabilities 133,182 81,746 Long-term liabilities: Borrowings pursuant to line of credit, long-term 42,025 35,024 Long-term liabilities held for sale — 29,295 Long-term portion of term loan 3,009 3,416 Long-term portion of operating leases 15,759 17,328 Long-term portion of obligations and finance leases 4,708 4,645 Deferred income tax liabilities 746 746 Other long-term liabilities 4,609 4,425 Total long-term liabilities 70,856 94,879 Commitments and contingencies Shareholders' equity: Common stock

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 negotiations regarding the potential sale of all of the assets used in our Fresh Cut business and certain related real property (the "Proposed Transaction"). The terms, including price and structure, remain under negotiation, and we are targeting completion of the Proposed Transaction during the third 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. During the six-months period ended April 30, 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

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