Mission Produce, Inc. (Nasdaq: AVO) (“Mission” or the “Company”),
the world leader in sourcing, producing, and distributing fresh
avocados, today reported its financial results for the fiscal
fourth quarter and full year ended October 31, 2020.
Fiscal Fourth Quarter 2020
Highlights:
- Initial public
offering (“IPO”) completed in October 2020, with 7.5 million shares
sold at $12.00, and net proceeds of $78.1 million.
- Total revenue of
$206.8 million, an 11% decrease compared to prior year
- Avocado volume sold
increased 16%, average selling price decreased 24% compared to
prior year
- Gross profit decreased
7% to $39.5 million, and gross profit margin increased 70 basis
points to 19% of revenue compared to prior year
- Net Income of $18.8
million, or $0.29 per diluted share compared to $23.9 million, or
$0.38, for the comparable period last year.
- Adjusted net income
was $21.9 million, or $0.34 per diluted share.
- Adjusted EBITDA of
$32.1 million, compared to $36.8 million for the same period last
year.
CEO Message
Steve Barnard, Chief Executive Officer of Mission
Produce, commented, “I’m extremely proud of the organization we’ve
built over the past 37 years and our #1 global leadership position
in the industry. Our October IPO was yet another milestone for our
company and we are pleased to be in a position to continue pursuing
the significant growth opportunity that lies ahead. We have a
leading global infrastructure that we continue to invest behind,
which enables Mission to address the consumption trends that are
driving our business both domestically and abroad. We look forward
to growing this category through our year-round distribution
capabilities and meet consumer demand for this popular
Superfood.”
IPO
In October 2020, we completed our IPO of common
stock, in which we sold 7.5 million shares. The shares began
trading on the Nasdaq Global Select Market on October 1, 2020 at a
public offering price of $12.00 per share. Net proceeds after
deducting issuance costs were $78.1 million.
Fiscal Fourth Quarter 2020 Consolidated
Financial Review
Total revenue for the fourth quarter of 2020 was
$206.8 million compared to $231.7 million for the fourth quarter of
2019, representing an 11% decrease. The decrease in revenue was
driven by lower average selling prices, which declined 24%,
partially offset by volume growth of 16%.
Gross profit decreased 7% compared to prior year to
$39.5 million, while gross profit margin improved 70 basis points
to 19% of revenue . The increase in gross profit margin was
attributable to a reduction of field costs in Mexico.
Selling, general and administrative expense
(“SG&A”) for the fourth quarter increased $6.1 million to $16.8
million, reflecting higher stock-based compensation expense due to
awards that vested upon the successful completion of our IPO and
higher professional fees.
Net income for the fourth quarter of 2020 was $18.8
million, or $0.29 per diluted share. This compares with net income
of $23.9 million, or $0.38 per diluted share, for the same period
last year.
Adjusted net income was $21.9 million, or $0.34 per
diluted share, for the fourth quarter of 2020, compared to adjusted
net income of $24.7 million, or $0.39 per diluted share, for the
same period last year.
Adjusted EBITDA was $32.1 million for the fourth
quarter of 2020, compared to $36.8 million for the same period last
year.
Fiscal Fourth Quarter Business Segment
Performance
Marketing & Distribution
Net sales in our Marketing & Distribution
segment decreased 12% to $202.0 million for the quarter. The lower
revenue was driven by lower average selling prices, which declined
24%, and were partially offset by volume growth of 16%. Average
price decreases were concentrated in the second half of fiscal year
2020, affecting the fourth quarter, primarily due to strong
industry supply in California and Peru, relative to prior year.
Segment adjusted EBITDA decreased 4% to $19.4
million due to lower gross profit per pound sold, which was
impacted by lower selling prices.
International Farming
Total International Farming segment sales increased
24% to $22.0 million for the quarter due to volume growth of 46%
driven by higher yields per hectare on existing orchards and the
timing of harvests, partially offset by a decrease in per unit
pricing that was negatively impacted by the strong industry supply.
Fourth quarter average selling prices of the Company’s own fruit
decreased by 25%, which is similar to the selling price reduction
experienced in the Company’s Marketing & Distribution
segment.
Net sales increased 85% to $4.8 million due to
higher packing service revenues provided to third-party growers
driven by their higher volumes.
Segment adjusted EBITDA decreased 23% to $12.7
million due to lower selling prices during the second half of
fiscal year 2020. The lower sales pricing was due to overall supply
conditions resulting from large industry volumes from California
and Peru relative to prior year and harvest timing in Mexico.
Fiscal Year 2020 Consolidated Financial
Review
Total revenue for fiscal year 2020 was $862.3
million compared to $883.3 million for fiscal year 2019,
representing a 2% decrease. The decrease in revenue was driven by
lower average selling prices, which declined 12%, and were
partially offset by volume growth, which increased 11%.
Gross profit decreased 19% to $124.6 million for
fiscal year 2020 and gross profit margin decreased 310 basis points
to 14.4% of revenue, compared to the prior year period. Gross
profit decreased as a result of lower gross margin partially offset
by higher sales volumes. Gross margin decreased primarily due to
higher third-party fruit costs during first quarter of fiscal year
2020 compared to the same period of last year. The market
conditions experienced during the early part of fiscal year 2019
were non-recurring in nature, as customer prices remained steady
despite significant declines in fruit costs incurred due to the
instability of supply from Mexico. In addition, gross profit in the
International Farming segment was negatively impacted by lower
sales pricing during the second half of fiscal year 2020 due to
larger industry volumes from California and Peru relative to prior
year.
SG&A for the full year increased $8.0 million
to $56.2 million, reflecting higher stock-based compensation
expense and professional fees.
Net income for the fiscal year 2020 was $28.8
million, or $0.45 per diluted share, primarily reflecting lower
gross profit and an impairment charge on our equity method
investee. This compares with net income of $71.7 million, or $1.13
per diluted share, for fiscal year 2019.
Adjusted net income was $55.0 million, or $0.86 per
diluted share, for the fiscal year 2020, compared to adjusted net
income of $75.4 million, or $1.19 per diluted share, for fiscal
year 2019.
Adjusted EBITDA was $91.5 million for the fiscal
year 2020, compared to $123.0 million for fiscal year 2019,
primarily due to lower gross profit per pound of avocados sold. The
decrease in gross margin was due primarily to the benefit of lower
low third-party fruit costs during the first quarter of fiscal year
2019. The market conditions experienced in the prior year period
were non-recurring in nature, as customer prices remained steady
despite significant declines in fruit costs due to the instability
of supply from Mexico.
Balance Sheet and Cash Flow
Cash and cash equivalents were $124.0 million as of
October 31, 2020 compared to $64.0 million last year.
Net cash provided by operating activities was $78.9
million for fiscal year 2020, compared to $92.6 million for the
same period last year. The $13.7 million decrease reflected our
lower net income, due to the overall decrease in gross profit per
pound, partially offset by an increase in volume, and lower working
capital requirements, which were driven by lower pricing conditions
in market.
Capital expenditures were $67.3 million for fiscal
year 2020 compared to $29.7 million for the same period last year,
as we invested in the construction of our new Texas distribution
center, farm development and packinghouse expansion in Peru, and
land improvements on new land leased in Guatemala. Our Texas
distribution center is on-track to be completed in the third
quarter of fiscal 2021.
Outlook
For the first quarter of fiscal year 2021, the
Company is providing the following outlook:
- Consolidated volume
in the range of 155-165 million pounds
- Consolidated revenue
in the range of $165-$175 million
- Consolidated adjusted
EBITDA in the range of $11.0-$12.5 million
The Company is also providing its long-term
financial targets as follows:
- Compound volume
growth in the high-single digit range, in-line with our
expectations for industry growth rates
- Adjusted EBITDA
margins in the low-double digit range, excluding any material
non-recurring events or extreme market conditions
- Compound adjusted
EBITDA growth in the low-double digit range
Conference Call and Webcast
As previously announced, the Company will host a
conference call to discuss its fiscal fourth quarter and full year
2020 financial results today at 5:00 p.m. ET.
The conference call can be accessed live over the
phone by dialing (877) 407-9039 or for international callers by
dialing (201) 689-8470. A replay of the call will be available
until February 2, 2021 by dialing (844) 512-2921 or for
international callers by dialing (412) 317-6671; the passcode is
13714366.
The live audio webcast of the conference call will
be accessible in the Events & Presentations section of the
Company's Investor Relations website
at www.investors.missionproduce.com. An archived replay of the
webcast will also be available shortly after the live event has
concluded.
Non-GAAP Financial Measures
This press release contains the non-GAAP financial
measures “adjusted net income” and “adjusted EBITDA.” Management
believes these measures provide useful information for analyzing
the underlying business results. These measures are not in
accordance with, nor are they a substitute for or superior to, the
comparable financial measures by generally accepted accounting
principles.
Adjusted net income is calculated by adding
stock-based compensation expense, adding the unrealized loss on
derivative financial instruments, adding impairment of equity
method investment, subtracting remeasurement gain on acquisition of
equity method investee, subtracting foreign currency gains, adding
foreign currency losses, and adjusting for the tax effects of these
items.
Adjusted EBITDA refers to net income (loss), before
interest expense, income taxes, depreciation and amortization
expense, stock-based compensation expense, other income (expense),
and income (loss) from equity method investees, further adjusted by
any non-recurring or one-time items that are distortive to results
(impairment of equity method investment, remeasurement gain on
acquisition of equity method investee, and Grupo Arato’s
pre-acquisition adjusted EBITDA).
Reconciliations of these non-GAAP financial
measures to the most comparable GAAP measure are provided in the
table at the end of this press release.
About Mission Produce, Inc.
Mission Produce is a world leader in sourcing,
producing and distributing fresh avocados, servicing retail,
wholesale and foodservice customers in over 25 countries. The
Company’s operations consist of four packing facilities in the
United States, Mexico and Peru, 11 distribution and ripening
centers across the U.S., Canada, China and the Netherlands, as well
as three sales offices in the U.S., China and the Netherlands.
Forward-Looking Statements
Statements in this press release that are not
historical in nature are forward-looking statements that, within
the meaning of the federal securities laws including the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995, involve known and unknown risks and uncertainties. Words
such as "may", "will", "expect", "intend", "plan", "believe",
"seek", "could", "estimate", "judgment", "targeting", "should",
"anticipate", "goal" and variations of these words and similar
expressions, are also intended to identify forward-looking
statements. The forward-looking statements in this press release
address a variety of subjects, including statements about our
short-term and long-term assumptions, goals and targets, including
our outlook for our fiscal year 2021 operating results. Readers are
cautioned that actual results could differ materially from those
implied by such forward-looking statements due to a variety of
factors, including global economic conditions, competitive
pressures and pricing declines, the impact of and uncertainties
related to COVID-19, and other risks or uncertainties that are
described under the caption “Risk Factors” in our Annual Report on
Form 10-K and our other SEC filings. You can obtain copies of our
SEC filings on the SEC’s website at www.sec.gov. Additionally,
these forward-looking statements, particularly our guidance,
involve risk, uncertainties and assumptions, including those
related to the impact of COVID-19 on our business and global
economic conditions. Many of these assumptions relate to matters
that are beyond our control and changing rapidly, including, but
not limited to, the timeframes for and severity of the impact of
COVID-19 on our labor availability or our supply and distribution
chain. Although we believe the expectations reflected in such
forward-looking statements are based upon reasonable assumptions,
we can give no assurances that our expectations will be attained.
We undertake no obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Contact
Investor Relations ICRJeff
Sonnek646-277-1263jeff.sonnek@icrinc.com
MediaDenise JunqueiroSenior
Director of Marketing and CommunicationsMission Produce,
Inc.press@missionproduce.com
|
|
Condensed Consolidated Balance Sheets
(Unaudited) |
|
|
October 31, |
(In millions) |
2020 |
|
2019 |
Assets |
|
|
|
Current Assets: |
|
|
|
Cash and cash equivalents |
$ |
124.0 |
|
|
$ |
64.0 |
|
Restricted cash |
1.4 |
|
|
1.6 |
|
Accounts receivable |
|
|
|
Trade, net of allowances |
57.5 |
|
|
67.9 |
|
Grower and fruit advances |
1.5 |
|
|
3.8 |
|
Miscellaneous receivables |
13.4 |
|
|
12.9 |
|
Inventory |
38.6 |
|
|
44.9 |
|
Prepaid expenses and other current assets |
8.8 |
|
|
8.4 |
|
Income taxes receivable |
2.9 |
|
|
2.5 |
|
Total current assets |
248.1 |
|
|
206.0 |
|
Property, plant and equipment, net |
379.1 |
|
|
330.3 |
|
Equity method investees |
46.7 |
|
|
62.7 |
|
Loans to equity method investees |
4.5 |
|
|
3.9 |
|
Deferred income taxes |
4.4 |
|
|
3.0 |
|
Goodwill |
76.4 |
|
|
76.4 |
|
Other assets |
18.1 |
|
|
7.1 |
|
Total assets |
$ |
777.3 |
|
|
$ |
689.4 |
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
Liabilities: |
|
|
|
Accounts payable |
$ |
20.5 |
|
|
$ |
19.7 |
|
Accrued expenses |
28.3 |
|
|
21.2 |
|
Income taxes payable |
1.7 |
|
|
4.1 |
|
Grower payables |
18.8 |
|
|
27.2 |
|
Long-term debt—current portion |
7.4 |
|
|
6.3 |
|
Capital leases—current portion |
1.2 |
|
|
1.0 |
|
Total current liabilities |
77.9 |
|
|
79.5 |
|
Long-term debt, net of current portion |
166.7 |
|
|
174.0 |
|
Capital leases, net of current portion |
3.3 |
|
|
4.6 |
|
Income taxes payable |
3.8 |
|
|
3.4 |
|
Deferred income taxes |
27.8 |
|
|
27.3 |
|
Other long-term liabilities |
24.3 |
|
|
21.6 |
|
Total liabilities |
303.8 |
|
|
310.4 |
|
Shareholders' equity |
473.5 |
|
|
379.0 |
|
Total liabilities and shareholders' equity |
$ |
777.3 |
|
|
$ |
689.4 |
|
Condensed Consolidated Statements of Income
(Unaudited) |
|
|
Three Months Ended October 31, |
|
Year Ended October 31, |
(In millions, except for shares and per share
amounts) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Net sales |
$ |
206.8 |
|
|
$ |
231.7 |
|
|
$ |
862.3 |
|
|
$ |
883.3 |
|
Cost of sales |
167.3 |
|
|
189.0 |
|
|
737.7 |
|
|
728.6 |
|
Gross profit |
39.5 |
|
|
42.7 |
|
|
124.6 |
|
|
154.7 |
|
Selling, general and administrative expenses |
16.8 |
|
|
10.7 |
|
|
56.2 |
|
|
48.2 |
|
Operating income |
22.7 |
|
|
32.0 |
|
|
68.4 |
|
|
106.5 |
|
Interest expense |
(1.2 |
) |
|
(2.3 |
) |
|
(6.7 |
) |
|
(10.3 |
) |
Equity method income |
2.4 |
|
|
2.9 |
|
|
4.0 |
|
|
3.4 |
|
Impairment on equity method investment |
— |
|
|
— |
|
|
(21.2 |
) |
|
— |
|
Other expense |
(0.5 |
) |
|
(1.4 |
) |
|
(0.7 |
) |
|
(3.6 |
) |
Income before income tax |
23.4 |
|
|
31.2 |
|
|
43.8 |
|
|
96.0 |
|
Provision for income tax |
4.6 |
|
|
7.3 |
|
|
15.0 |
|
|
24.3 |
|
Net income |
$ |
18.8 |
|
|
$ |
23.9 |
|
|
$ |
28.8 |
|
|
$ |
71.7 |
|
Net income per share: |
|
|
|
|
|
|
|
Basic |
$ |
0.29 |
|
|
$ |
0.38 |
|
|
$ |
0.45 |
|
|
$ |
1.13 |
|
Diluted |
$ |
0.29 |
|
|
$ |
0.38 |
|
|
$ |
0.45 |
|
|
$ |
1.13 |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
Basic |
64,883,661 |
|
|
63,395,860 |
|
|
63,634,863 |
|
|
63,442,776 |
|
Diluted |
64,917,611 |
|
|
63,432,775 |
|
|
63,660,018 |
|
|
63,477,949 |
|
|
Condensed Consolidated Statements of Cash Flow
(Unaudited) |
|
|
Three Months Ended October 31, |
|
Year Ended October 31, |
(In millions) |
2020 |
|
2019 |
|
2020 |
2019 |
Operating Activities |
|
|
|
|
|
|
Net income |
$ |
18.8 |
|
|
$ |
23.9 |
|
|
$ |
28.8 |
|
|
$ |
71.7 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
|
|
|
|
Depreciation and amortization |
5.5 |
|
|
4.8 |
|
|
18.1 |
|
|
16.5 |
|
Equity method income |
(2.4 |
) |
|
(2.9 |
) |
|
(4.0 |
) |
|
(3.4 |
) |
Impairment on equity method investment |
— |
|
|
— |
|
|
21.2 |
|
|
— |
|
Dividends received from equity method investees |
— |
|
|
— |
|
|
1.7 |
|
|
1.4 |
|
Stock-based compensation |
3.9 |
|
|
— |
|
|
5.0 |
|
|
— |
|
Other |
(0.4 |
) |
|
1.3 |
|
|
0.2 |
|
|
4.6 |
|
Changes in working capital: |
|
|
|
|
|
|
Trade accounts receivable |
17.7 |
|
|
21.3 |
|
|
10.3 |
|
|
(2.7 |
) |
Grower fruit advances |
0.7 |
|
|
2.1 |
|
|
2.3 |
|
|
(2.7 |
) |
Miscellaneous receivables |
(0.7 |
) |
|
0.9 |
|
|
(3.8 |
) |
|
5.5 |
|
Inventory |
10.9 |
|
|
7.3 |
|
|
5.9 |
|
|
(12.3 |
) |
Accounts payable and accrued expenses |
(1.6 |
) |
|
(1.0 |
) |
|
8.2 |
|
|
5.2 |
|
Grower payables |
(7.5 |
) |
|
(21.9 |
) |
|
(8.6 |
) |
|
4.3 |
|
Income taxes |
0.3 |
|
|
0.2 |
|
|
(2.3 |
) |
|
2.5 |
|
Other |
0.8 |
|
|
2.2 |
|
|
(4.1 |
) |
|
2.0 |
|
Net cash provided by operating activities |
$ |
46.0 |
|
|
$ |
38.2 |
|
|
$ |
78.9 |
|
|
$ |
92.6 |
|
|
|
|
|
|
|
|
Investing Activities |
|
|
|
|
|
|
Purchases of property and equipment |
(26.9 |
) |
|
(7.7 |
) |
|
(67.3 |
) |
|
(29.7 |
) |
Proceeds from sale of property, plant and equipment |
2.9 |
|
|
— |
|
|
3.0 |
|
|
0.1 |
|
Investment in equity method investees |
(0.5 |
) |
|
(0.6 |
) |
|
(3.4 |
) |
|
(1.9 |
) |
Other |
0.2 |
|
|
1.4 |
|
|
— |
|
|
0.8 |
|
Net cash used in investing activities |
$ |
(24.3 |
) |
|
$ |
(6.9 |
) |
|
$ |
(67.7 |
) |
|
$ |
(30.7 |
) |
|
|
|
|
|
|
|
Financing Activities |
|
|
|
|
|
|
Proceeds from issuance of common stock in public offering, net of
issuance costs |
78.1 |
|
|
— |
|
|
78.1 |
|
|
— |
|
Dividends paid |
(5.5 |
) |
|
— |
|
|
(13.0 |
) |
|
(5.6 |
) |
Borrowings (payments) on revolving line of credit |
— |
|
|
— |
|
|
— |
|
|
(6.0 |
) |
Principal payments on long-term borrowings, capital leases and
supplier financing |
(6.5 |
) |
|
(8.3 |
) |
|
(13.0 |
) |
|
(14.6 |
) |
Other |
(0.1 |
) |
|
(0.3 |
) |
|
(2.0 |
) |
|
(0.6 |
) |
Net cash provided by (used in) financing activities |
$ |
66.0 |
|
|
$ |
(8.6 |
) |
|
$ |
50.1 |
|
|
$ |
(26.8 |
) |
Effect of exchange rate changes on cash |
(0.1 |
) |
|
0.1 |
|
|
0.1 |
|
|
— |
|
Net gain in cash, cash equivalents and restricted cash |
87.6 |
|
|
22.8 |
|
|
61.4 |
|
|
35.1 |
|
Cash, cash equivalents and restricted cash, beginning of
period |
39.4 |
|
|
42.8 |
|
|
65.6 |
|
|
30.5 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
127.0 |
|
|
$ |
65.6 |
|
|
$ |
127.0 |
|
|
$ |
65.6 |
|
|
|
|
|
|
|
|
Summary of cash, cash equivalents and restricted cash
reported within the condensed consolidated balance
sheets: |
Cash and cash equivalents |
$ |
124.0 |
|
|
$ |
64.0 |
|
|
$ |
124.0 |
|
|
$ |
64.0 |
|
Restricted cash |
1.4 |
|
|
1.6 |
|
|
1.4 |
|
|
1.6 |
|
Restricted cash included in other assets |
1.6 |
|
|
— |
|
|
1.6 |
|
|
— |
|
Total cash, cash equivalents, and restricted cash shown in the
condensed consolidated statements of cash flows |
$ |
127.0 |
|
|
$ |
65.6 |
|
|
$ |
127.0 |
|
|
$ |
65.6 |
|
Segment Sales (Unaudited) |
|
|
Marketing &Distribution |
|
InternationalFarming |
|
Total |
|
Marketing &Distribution |
|
InternationalFarming |
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended October 31, |
(In millions) |
2020 |
|
2019 |
Third party sales |
$ |
202.0 |
|
|
$ |
4.8 |
|
|
|
$ |
206.8 |
|
|
|
$ |
229.1 |
|
|
$ |
2.6 |
|
|
|
$ |
231.7 |
|
Affiliated sales |
— |
|
|
17.2 |
|
|
|
17.2 |
|
|
|
— |
|
|
15.2 |
|
|
|
15.2 |
|
Total segment sales |
$ |
202.0 |
|
|
$ |
22.0 |
|
|
|
$ |
224.0 |
|
|
|
$ |
229.1 |
|
|
$ |
17.8 |
|
|
|
$ |
246.9 |
|
Intercompany eliminations |
— |
|
|
(17.2 |
) |
|
|
(17.2 |
) |
|
|
— |
|
|
(15.2 |
) |
|
|
(15.2 |
) |
Total net sales |
$ |
202.0 |
|
|
$ |
4.8 |
|
|
|
$ |
206.8 |
|
|
|
$ |
229.1 |
|
|
$ |
2.6 |
|
|
|
$ |
231.7 |
|
|
Year Ended October 31, |
|
2020 |
|
2019 |
Third party sales |
$ |
846.9 |
|
|
$ |
15.4 |
|
|
|
$ |
862.3 |
|
|
|
$ |
873.7 |
|
|
$ |
9.6 |
|
|
|
$ |
883.3 |
|
Affiliated sales |
— |
|
|
66.4 |
|
|
|
66.4 |
|
|
|
— |
|
|
80.7 |
|
|
|
80.7 |
|
Total segment sales |
$ |
846.9 |
|
|
$ |
81.8 |
|
|
|
$ |
928.7 |
|
|
|
$ |
873.7 |
|
|
$ |
90.3 |
|
|
|
$ |
964.0 |
|
Intercompany eliminations |
— |
|
|
(66.4 |
) |
|
|
(66.4 |
) |
|
|
— |
|
|
(80.7 |
) |
|
|
(80.7 |
) |
Total net sales |
$ |
846.9 |
|
|
$ |
15.4 |
|
|
|
$ |
862.3 |
|
|
|
$ |
873.7 |
|
|
$ |
9.6 |
|
|
|
$ |
883.3 |
|
Other Information (Unaudited)
|
Three Months Ended October 31, |
|
Year Ended October 31, |
|
2020 |
|
2019 |
|
2020 |
|
2019 |
Other Information |
|
|
|
|
|
|
|
Pounds of avocados sold (millions) |
169 |
|
|
145 |
|
|
619 |
|
|
559 |
|
Average sales price per pound(1) |
$ |
1.20 |
|
|
$ |
1.58 |
|
|
$ |
1.37 |
|
|
$ |
1.56 |
|
Gross profit per pound(2) |
$ |
0.23 |
|
|
$ |
0.29 |
|
|
$ |
0.20 |
|
|
$ |
0.28 |
|
(1) Calculated by dividing net sales
from our Marketing & Distribution segment by the total pounds
of avocados sold in the stated period.
(2) Calculated by dividing gross profit
by the total sales volume in the stated period.
Reconciliation of Non-GAAP Financial
Measures to GAAP
The following tables reconciles the non-GAAP
measures “adjusted net income” and “adjusted EBITDA” to their
comparable GAAP measures. Refer also to “Non-GAAP Financial
Measures” earlier in this press release.
Adjusted net income
|
Three Months Ended October 31, |
|
Year Ended October 31, |
(In millions, except for per share amounts) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Net income |
$ |
18.8 |
|
|
$ |
23.9 |
|
|
$ |
28.8 |
|
|
$ |
71.7 |
|
Stock-based compensation |
3.9 |
|
|
— |
|
|
5.0 |
|
|
— |
|
Unrealized (gains) and losses on derivative financial
instruments |
(0.5 |
) |
|
1.2 |
|
|
2.8 |
|
|
3.7 |
|
Impairment on equity method investment |
— |
|
|
— |
|
|
21.2 |
|
|
— |
|
Foreign currency losses and (gains) |
0.8 |
|
|
(0.1 |
) |
|
(1.3 |
) |
|
1.3 |
|
Tax effects of adjustments to net income(1) |
(1.1 |
) |
|
(0.3 |
) |
|
(1.5 |
) |
|
(1.3 |
) |
Adjusted net income |
$ |
21.9 |
|
|
$ |
24.7 |
|
|
$ |
55.0 |
|
|
$ |
75.4 |
|
Adjusted net income per common share, diluted |
$ |
0.34 |
|
|
$ |
0.39 |
|
|
$ |
0.86 |
|
|
$ |
1.19 |
|
(1) Tax effects are calculated using
applicable rates that each adjustment relates to.
|
Adjusted EBITDA |
|
Three Months Ended October 31, |
|
Year Ended October 31, |
(In millions) |
2020 |
|
2019 |
|
2020 |
|
2019 |
Net income |
$ |
18.8 |
|
|
$ |
23.9 |
|
|
$ |
28.8 |
|
|
$ |
71.7 |
|
Interest expense |
1.2 |
|
|
2.3 |
|
|
6.7 |
|
|
10.3 |
|
Provision for income tax |
4.6 |
|
|
7.3 |
|
|
15.0 |
|
|
24.3 |
|
Depreciation and amortization |
5.5 |
|
|
4.8 |
|
|
18.1 |
|
|
16.5 |
|
Equity method income |
(2.4 |
) |
|
(2.9 |
) |
|
(4.0 |
) |
|
(3.4 |
) |
Impairment on equity method investment |
— |
|
|
— |
|
|
21.2 |
|
|
— |
|
Other expense |
0.5 |
|
|
1.4 |
|
|
0.7 |
|
|
3.6 |
|
Stock-based compensation |
3.9 |
|
|
— |
|
|
5.0 |
|
|
— |
|
Adjusted EBITDA |
$ |
32.1 |
|
|
$ |
36.8 |
|
|
$ |
91.5 |
|
|
$ |
123.0 |
|
Marketing & Distribution adjusted EBITDA |
19.4 |
|
|
20.2 |
|
|
68.2 |
|
|
88.0 |
|
International Farming adjusted EBITDA |
12.7 |
|
|
16.6 |
|
|
23.3 |
|
|
35.0 |
|
Total reportable segment adjusted EBITDA |
$ |
32.1 |
|
|
$ |
36.8 |
|
|
$ |
91.5 |
|
|
$ |
123.0 |
|
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