Calavo Growers, Inc. (NASDAQ:CVGW) reported weaker-than-expected results for its fourth quarter on Monday.
The avocado grower out of Santa Paula, Calif., revealed total revenue of $234.4 million, a 20% decrease year over year, reflecting 3% growth in avocado volume offset by 22% lower avocado prices and lower revenue in the Renaissance Food Group and Foods segments.
Gross profit was $21.2 million, or 9.0% of revenue, compared to $24.6 million, or 8.4% of revenue, for the comparable period last year. The increase in gross profit margin percentage was attributable to improvements in the RFG and Foods segments.
Net income proved to be $6.2 million, or $0.35 per diluted share, compared to $5.2 million, or $0.30 per diluted share. Adjusted net income was $6.0 million, or $0.34 per diluted share.
Adjusted EBITDA of $13.4 million, compared to $14.8 million for the same period last year.
The year-over-year decline in adjusted EBITDA was primarily due to $2.5 million of non-recurring charges related to various legacy items mostly in the international operations of the Company’s Fresh segment.
On December 4, Calavo paid an annual cash dividend on its common stock of $1.15 per share, a 4.5% increase over the prior year’s annual dividend.
CEO James Gibson said, "Our fourth-quarter results reflect a continuation of trends from the third quarter. With strong crops out of both Mexico and California, supply in the fourth quarter was plentiful, lowering the average selling price by 22% versus the year-ago quarter, when supply was very constrained."
CVGW dumped $8.46, or 11.7%, to $63.81 early Tuesday.
