Limoneira Company (LMNR) saw its loss narrow to $2.07 million, or $0.16 a share for the quarter ended Jan. 31, 2017. In the previous year period, the company reported a loss of $3.91 million, or $0.29 a share.
Revenue during the quarter grew 12.43 percent to $28.09 million from $24.99 million in the previous year period. Gross margin for the quarter period stood at positive 2.47 percent as compared to a negative 5.74 percent for the previous year period. Operating margin for the quarter stood at negative 11.53 percent as compared to a negative 25.35 percent for the previous year period.
Operating loss for the quarter was $3.24 million, compared with an operating loss of $6.33 million in the previous year period.
Adjusted EBITDA for the quarter stood at negative $1.30 million compared to negative $4.73 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at negative 4.63 percent for the quarter compared to negative 18.94 percent in the last year period.
Harold Edwards, president and chief executive officer, stated, "We achieved record lemon sales for the first quarter of fiscal 2017 and the efficiencies from our recently completed packing facility also benefited our first quarter results. Over the past few years, we have made many strategic investments including the purchase of additional citrus acreage, expansion of our One World of Citrus marketing program and increased partner relationships throughout the world which are enabling us to expand our share of the global citrus market." Mr. Edwards concluded, "As we enter the second quarter of fiscal 2017, we are excited about the drivers of our top and bottom line growth. These drivers include anticipated increase in avocado pricing and better than expected lemon revenues. Based on our first quarter results and an improved outlook for the year, we are raising our full year fiscal 2017 earnings guidance."
For fiscal year 2017, Limoneira Company expects operating income to be in the range of $14.40 million to $14.90 million. The company projects diluted earnings per share to be in the range of $0.48 to $0.52.
Working capital remains negative
Working capital of Limoneira Company was negative $1.24 million on Jan. 31, 2017 compared with negative $3.83 million on Jan. 31, 2016. Current ratio was at 0.93 as on Jan. 31, 2017, up from 0.80 on Jan. 31, 2016. Cash conversion cycle (CCC) has decreased to 16 days for the quarter from 20 days for the last year period. Days sales outstanding were almost stable at 33 days for the quarter, when compared with the last year period.
Days inventory outstanding has decreased to 3 days for the quarter compared with 10 days for the previous year period. At the same time, days payable outstanding went down to 20 days for the quarter from 23 for the same period last year.
Debt moves up marginally
Limoneira Company has witnessed an increase in total debt over the last one year. It stood at $103.08 million as on Jan. 31, 2017, up 4.03 percent or $4 million from $99.08 million on Jan. 31, 2016. Total debt was 33.13 percent of total assets as on Jan. 31, 2017, compared with 33.94 percent on Jan. 31, 2016. Debt to equity ratio was at 0.83 as on Jan. 31, 2017, down from 0.85 as on Jan. 31, 2016.
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