Calavo Growers, Inc (CVGW) has reported a 17.33 percent fall in profit for the quarter ended Jan. 31, 2017. The company has earned $5.25 million, or $0.30 a share in the quarter, compared with $6.35 million, or $0.37 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $6 million, or $0.34 a share compared with $6.30 million or $0.37 a share, a year ago. Revenue during the quarter grew 10.74 percent to $226.55 million from $204.58 million in the previous year period. Gross margin for the quarter contracted 59 basis points over the previous year period to 9.68 percent. Total expenses were 96.43 percent of quarterly revenues, up from 95.07 percent for the same period last year. That has resulted in a contraction of 135 basis points in operating margin to 3.57 percent.
Operating income for the quarter was $8.10 million, compared with $10.08 million in the previous year period.
Chairman, President and Chief executive Officer Lee E. Cole stated: "Calavo’s double-digit revenue growth and solid profitability during the fiscal 2017 first quarter were paced by a sharply higher top line and notable gross margin expansion in our RFG business segment. RFG’s revenue growth rate accelerated in the initial period to 29 percent year-over-year, outstripping the mid-teen percentage gains we experienced throughout 2016. With its 260 basis point year-over-year improvement in gross margin, RFG’s stellar performance offset headwinds encountered during the period in our Fresh business segment."
Working capital turns negative
Working capital of Calavo Growers, Inc has turned negative to $0.60 million on Jan. 31, 2017 from positive $24.35 million on Jan. 31, 2016. Current ratio was at 1 as on Jan. 31, 2017, down from 1.24 on Jan. 31, 2016. Cash conversion cycle (CCC) has decreased to 25 days for the quarter from 32 days for the last year period. Days sales outstanding went down to 29 days for the quarter compared with 32 days for the same period last year.
Days inventory outstanding has decreased to 5 days for the quarter compared with 13 days for the previous year period. At the same time, days payable outstanding went down to 10 days for the quarter from 13 for the same period last year.
Debt increases substantially
Calavo Growers, Inc has witnessed an increase in total debt over the last one year. It stood at $60.05 million as on Jan. 31, 2017, up 30.63 percent or $14.08 million from $45.97 million on Jan. 31, 2016. Total debt was 17.30 percent of total assets as on Jan. 31, 2017, compared with 15.76 percent on Jan. 31, 2016. Debt to equity ratio was at 0.27 as on Jan. 31, 2017, up from 0.24 as on Jan. 31, 2016. Interest coverage ratio deteriorated to 32.79 for the quarter from 46.44 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
