Mission(AVO) - 2025 Q1 - Quarterly Report

Financial Performance - Net sales increased by $75.5 million or 29$334.2 million for the three months ended January 31, 2025, compared to $258.7 million in the same period last year, primarily driven by a 25$2.8 million or 10% to $31.5 million, with a gross profit margin of 9.4$334.2 million, an increase of $75.5 million or 29$258.7 million in the same period last year [104]. - Net income for the three months ended January 31, 2025, was $6.2 million, up from$2.0 million in the same period last year, representing a 210% increase [113]. Segment Performance - The Marketing & Distribution segment generated net sales of $295.8 million, up from$224.6 million, while the Blueberries segment saw a revenue increase of $3.9 million or 12$71.2 million or 32% to $295.8 million for the three months ended January 31, 2025, driven by avocado pricing and volume increases [106]. - International Farming segment adjusted EBITDA increased by$2.3 million or 460% to $2.3 million for the three months ended January 31, 2025, compared to a loss of$0.5 million in the same period last year [108]. - Blueberries segment net sales increased by $3.9 million or 12$36.4 million for the three months ended January 31, 2025, driven by blueberry volume and pricing dynamics [109]. Expenses and Income - Selling, general and administrative expenses increased by $1.5 million or 7$22.2 million, primarily due to higher employee-related costs [90]. - Interest expense decreased by $1.1 million or 33$2.2 million, attributed to lower average balances on the revolving line of credit and reduced interest rates [92]. - Equity method income increased by $0.4 million or 100$0.8 million, primarily due to improved margins on fruit sold at Mr. Avocado [94]. - Other income was $1.5 million, compared to an expense of$1.0 million in the prior year, driven by foreign currency transaction gains from a strengthening U.S. dollar [96]. - The provision for income taxes increased by $1.1 million or 52$3.2 million, reflecting higher income before taxes [100]. - The effective tax rate decreased to 34.0% from 51.2% in the prior year, influenced by book losses in certain jurisdictions [100]. Cash Flow and Capital Expenditures - Operating cash flows for the three months ended January 31, 2025, were negative at $1.2 million, compared to positive cash flows of$9.5 million in the same period last year, largely due to growth in working capital [113]. - Total purchases of property, plant, and equipment for the three months ended January 31, 2025, were $14.8 million, an increase from$9.9 million in the same period last year [114]. - For fiscal 2025, total capital expenditures are expected to be between $50 million to$55 million, including approximately $10 million carryover from fiscal 2024 [124]. - The capital expenditures will primarily focus on the International Farming and Blueberries segments, with significant investment in Guatemala for avocado orchard maintenance and packhouse construction [124]. Financial Position and Liabilities - As of January 31, 2025, cash and cash equivalents were$40.1 million, down from $58.0 million as of October 31, 2024 [121]. - The company maintained compliance with financial covenants, including a consolidated leverage ratio of not more than 3.5 to 1.00 as of January 31, 2025 [123]. - As of January 31, 2025, undiscounted cash liabilities related to leases were approximately$174.3 million, with $107.4 million allocated for long-term land leases in the International Farming and Blueberries segments [125]. - Remaining maturities on term loans as of January 31, 2025, were$118.2 million [126]. Accounting and Risk Disclosures - There have been no material changes to critical accounting estimates since the Annual Report on Form 10-K for the year ended October 31, 2024 [127]. - No material changes have occurred in the quantitative and qualitative disclosures about market risk since the Annual Report on Form 10-K for the year ended October 31, 2024 [128].