Limoneira Co Q1 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ben Klieve - Lake Street Capital Markets, LLC - Analyst : Alright, thanks for taking my questions and apologies in advance of the background noise. I'm on the road today. A couple of questions for you guys. First around this water right transaction, it was very encouraging to see the per acre foot number. I'm curious about the total volume or total level of acre feet in this agreement. It's back to like 55 acre feet to something like that, barely a rounding here relative to your total asset base. So I'm wondering why was that 55 the right number? Were you guys holding back on the sale, wanting to retain these assets for a longer time? Were those customers not in need of more in this transaction? Can you just kind of give us some context for around that dynamic?

Question: Ben Klieve - Lake Street Capital Markets, LLC - Analyst : Got it. Very helpful. And then I guess one follow-up to this is the -- you seem pretty optimistic that there will be additional transactions of this asset base here within this fiscal year. Is this confidence derived from those existing partners that you had with this transaction? Are these new parties that you are bringing in? Just trying to get a sense of kind of how far down the road you are in this process.

Question: Ben Klieve - Lake Street Capital Markets, LLC - Analyst : Got it. Interesting. We'll look forward to hearing more about that later this year. And then one other one for me on the avocado front. I mean with each passing quarter, it seems that this initiative that you've had in place just gets more and more attractive. So congratulations on really making a pretty sensible move here in the avocado space. My question is around the kind of opportunity beyond what you already have announced. How much of your acreage that you have in lemons and other crops, would it be agronomically feasible for you to make additional plantings in the avocado space? And then in the context of a market that's pretty challenged with a lot of permanent crops and other citrus or stone fruits or nuts, do you see other growers in California doing this as well? Those are my two questions on the avocado front.

Question: Ben Klieve - Lake Street Capital Markets, LLC - Analyst : All right, very interesting stuff. Well, I appreciate you guys taking my questions. Look forward to some more updates here later this year. I'll get back in.