Limoneira Company reported financial results for the third quarter and nine months ended July 31, 2015. Revenue was $29.8 million, compared to revenue of $36.5 million in Q3 of the previous fiscal year.
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Agribusiness revenue was $28.5 million, compared to $35.2 million in the third quarter last year, primarily due to lower lemon and avocado sales.
Rental operations revenue was $1.3 million in the third quarter of fiscal year 2015, compared to $1.2 million in the third quarter of last year.
Real estate development revenue was $34,000 compared to $121,000 in the third quarter last year.
Agribusiness revenue for the third quarter of fiscal year 2015 includes $23.9 million in lemon sales, compared to $26.8 million of lemon sales during the same period of fiscal year 2014, primarily reflecting lower volume of fresh lemons sold partially offset by higher prices.
The company completed its fiscal year 2015 avocado harvest in July with total fiscal year 2015 revenue of $7.1 million on 7 million pounds compared to revenue of $7.3 million on 6.7 million pounds for fiscal year 2014. Avocado revenue for the third quarter of fiscal year 2015 was $3 million, compared to $6.1 million in the same period last year, primarily reflecting decreased volume and lower prices.
In addition, third quarter of fiscal year 2015 avocado sales were impacted by a shift in production and harvest timing due to the company's decision to accelerate its harvest plan due to early maturing of the California crop and the expected arrival of Peruvian avocados in the US market in June 2015.
This decision resulted in additional revenue in the second quarter of fiscal year 2015 that typically is recognized in the third quarter.
The company recognized $1 million of orange revenue in the third quarter of fiscal year 2015 due to lower volume that was partially offset by higher sales prices, compared to $1.7 million of orange revenue in the same period of fiscal year 2014.
Specialty citrus and other crop revenues were $0.6 million in the third quarter of fiscal year 2015, due to increased prices which were partially offset by lower sales volume, compared to $0.5 million in the third quarter of fiscal year 2014.
Costs and expenses for the third quarter of fiscal year 2015 were $22 million compared to $23.1 million in the third quarter of last fiscal year.
The year-over-year decrease in operating expenses reflects lower agribusiness costs, real estate development expenses and selling, general and administrative expenses. In addition, third quarter of fiscal year 2014 costs and expenses include an impairment charge on real estate development assets of $435,000 on the company's Centennial property.
Operating income for the third quarter of fiscal year 2015 was $7.8 million, compared to $13.4 million in the third quarter of the previous fiscal year.
Net income applicable to common stock, after preferred dividends, for the third quarter of fiscal year 2015 was $5.2 million, compared to $8.8 million in the third quarter of fiscal year 2014.
Earnings per diluted share for the third quarter of fiscal year 2015 were $0.36 on approximately 14.9 million weighted average diluted common shares outstanding, compared to earnings per diluted share of $0.61 on approximately 14.5 million weighted average diluted common shares outstanding in the same period of the prior year.
On August 21, 2015, the company completed the sale of its Wilson Ranch for approximately $2.8 million and the gain on the sale was approximately $0.9 million. The company previously expected the Wilson Ranch sale to be completed in the third quarter of 2015.
Adjusted EBITDA was $9.1 million in the third quarter of fiscal year 2015 compared to $14.9 million in the same period of fiscal year 2014. ■