Mission(AVO) - 2024 Q2 - Quarterly Report

Financial Performance - Net sales increased by $76.5 million or 35$12.9 million or 71% to $31.0 million, with a gross profit percentage of 10.4$7.0 million for the three months ended April 30, 2024, compared to a net loss of $4.6 million in the same period last year [77]. - Total net sales for the six months ended April 30, 2024, reached$556.3 million, an increase of $114.6 million or 29$20.2 million, compared to $7.6 million in the same period last year [103]. - Net income for the three months ended April 30, 2024, was$7.0 million, compared to a loss of $4.7 million in the same period last year [103]. Segment Performance - The Marketing and Distribution segment generated net sales of$287.1 million in the three months ended April 30, 2024, compared to $215.3 million in the same period last year [79]. - Total segment sales in the International Farming segment decreased by$4.6 million or 77% in the three months ended April 30, 2024, primarily due to lower third-party avocado packing service revenue [106]. - Blueberry revenue increased by $8.3 million or 488$13.1 million or 152% in the three months ended April 30, 2024, primarily due to improved per-unit gross margin on avocados sold [104]. - Segment adjusted EBITDA for the International Farming segment was $(2.2) million in the three months ended April 30, 2024, compared to$(1.1) million in the same period last year [107]. - Segment adjusted EBITDA for the Blueberries segment increased by $0.6 million or 600$0.6 million or 3% in the three months ended April 30, 2024, primarily due to a reduction in general corporate expenses [87]. - Cost of sales for the three months ended April 30, 2024, was $266.6 million, representing 90$0.7 million or 26% in the three months ended April 30, 2024, driven primarily by rising interest rates [89]. - The provision for income tax increased by $1.6 million or 89$3.4 million, due to higher income before taxes [98]. - The effective tax rate for the three months ended April 30, 2024, was 32.7%, compared to (62.1)% in the same period last year [98]. Cash Flow and Capital Expenditures - Net cash provided by operating activities was $12.9 million for the six months ended April 30, 2024, compared to cash used of$26.1 million in the same period last year [111]. - Capital expenditures for the six months ended April 30, 2024, totaled $17.7 million, a decrease from$34.9 million in the same period last year [113]. - As of April 30, 2024, cash and cash equivalents were $46.2 million, an increase from$42.9 million as of October 31, 2023 [121]. - The company expects capital expenditures for fiscal 2024 to be between $40 million to$45 million [124]. - Estimated remaining capital expenditures for the Moruga Blueberry Project were approximately $35 million as of April 30, 2024 [125]. - As of April 30, 2024, the consolidated leverage ratio was 2.14 to 1.00, in compliance with financial covenants [123]. Other Income and Equity Method - Equity method income was flat at$0.5 million for the three months ended April 30, 2024, compared to $0.4 million in the same period last year, with losses at Mr. Avocado offsetting income from HAC [91]. - Equity method income decreased by$0.5 million or 36% in the six months ended April 30, 2024, compared to the same period last year, primarily due to losses at Mr. Avocado [92]. - Other income increased by $0.4 million or 67$1.0 million, mainly due to prior year foreign currency transaction losses [94].