Calavo Growers, Inc. has reported that fiscal 2014 first quarter net income rose 47 percent on a 21 percent increase in revenues from the first quarter last year. Strong sales gains in each of its three principal business units paced top-line growth, said the company, the global avocado-industry leader and an expanding provider of value-added fresh foods.
For the three months ended January 31, 2014, net income climbed to $4.0 million, equal to $0.25 per diluted share, from $2.7 million, or $0.18 per diluted share, in the first quarter of fiscal 2013. Prior-year results include approximately $1.2 million in contingent consideration related to Calavo's 2011 purchase of Renaissance Food Group, LLC (RFG). The after-tax impact of that contingent consideration reduced fiscal 2013 first quarter net income by approximately $800,000, equal to $0.06 per diluted share.
Revenues advanced to $168.2 million, a new first quarter record, eclipsing last year's first quarter revenue of $139.5 million which had been the previous all-time period high. Gross margin expanded to $13.7 million, equal to 8.1 percent of total revenues, up from $13.1 million, or 9.4 percent of total revenues, in the fiscal 2013 first quarter. Operating income vaulted 26 percent in the most recent quarter to $5.4 million, which compares with $4.3 million in the year-earlier first quarter.
Chairman, President and Chief Executive Officer Lee E. Cole stated: "Calavo registered outstanding operating results in the first quarter to begin fiscal 2014 on a strong note. Our performance was in line with plan and we are executing very well against the internal growth targets management sets for the company."
