The Limoneira Company, a diversified citrus growing, packing, selling and marketing company with related agribusiness activities and real estate development operations, reported financial results for the fourth quarter and full fiscal year ended October 31, 2019.
Harold Edwards, President and Chief Executive Officer of the Company, stated, “We achieved record revenue and expanded our market share in fiscal year 2019. However, the uncontrollable weather aspect of our business affected lemon and orange pricing throughout the year and dramatically reduced our avocado crop. Even with these temporary challenges, we generated positive EBITDA and adjusted EBITDA, closed a strategic acquisition and are very well positioned to continue our market share growth and return to strong EBITDA and adjusted EBITDA results in fiscal 2020.”
Alex Teague, Senior Vice President, stated, "Our strategic joint venture and land acquisition in Argentina with FGF Trapani completed in fiscal 2019 expands our global client reach and enables us to provide our customers with a year-round supply of citrus. This new relationship is a perfect fit with our One World of Citrus™ initiative and is instrumental in growing our international and domestic customer base.”
For the fourth quarter of fiscal year 2019, total net revenue was $36.5 million, compared to total net revenue of $14.7 million in the fourth quarter of the previous fiscal year. Agribusiness revenue was $35.3 million, compared to $13.5 million in the fourth quarter last year. The increase was primarily due to higher lemon volume offset by lower fresh lemon prices and lower fresh utilization.
For the fiscal year ended October 31, 2019, revenue increased to $171.4 million, compared to $129.4 million for the fiscal year ended October 31, 2018. Operating loss for the fiscal year 2019 was $5.5 million, compared to an operating income of $9.5 million for the fiscal year 2018. Net loss applicable to common stock, after preferred dividends, was $6.4 million for the fiscal year 2019, compared to net income of $19.7 million for the fiscal year 2018.
Looking into fiscal year 2020 and beyond, the Company has an additional 1,200 acres of non-bearing lemons estimated to become full bearing over the next four years, which will enable the Company to achieve strong organic growth for many years to come. The Company expects 300 of the 1,200 acres to become full bearing in fiscal year 2021.
Beyond these 1,200 acres, Limoneira intends to plant an additional 250 acres of lemons in the next two years that it believes will further build its long-term pipeline of productive acreage. The Company anticipates this additional acreage will increase its domestic supply of Limoneira owned lemons from its 2020 level by approximately 50%, or about 900 thousand to 1.3 million additional fresh cartons, as the non-bearing and planned acreage becomes productive. The Company also expects to have a steady increase in third party grower fruit.
