The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Raj Sharma - B. Riley Securities, Inc. - Analyst
: Hi. Thank you for taking my questions. I have a couple of them. Just wanted to clarify on Harvest. The Phase 1, was that's completed; Phase 2 is
completed and now you have an additional 550 and Phase 1 with the 707 units and Phase 2 was 554. Is that correct? And then just trying to reconcile
the 1,261 done so far to the 1500 that was original, if you would clarify that. And I've got a couple of more questions?
Question: Raj Sharma - B. Riley Securities, Inc. - Analyst
: Got it. Okay, great. Thank you.
Question: Raj Sharma - B. Riley Securities, Inc. - Analyst
: Got it. That's very helpful. Thank you. And then just your comment on strategic review and I think Harold's comment on strategic review. How does
that relate to? I mean, you've obviously not announced the final results of the review. But how --could you help us understand how that related to
the Chilean pack in the half and being taken off the market and expanding the avocados from another -- by three years?
Can you provide some color there? Is it to make your ongoing operation, a more robust one asset light, and that perhaps helps the eventual
shareholder value unlock post to the strategic review?
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JUNE 06, 2024 / 8:30PM, LMNR.OQ - Q2 2024 Limoneira Co Earnings Call
Question: Raj Sharma - B. Riley Securities, Inc. - Analyst
: Got it. That's very helpful. And then just a last question from me. Could you help clarify the economics for the 1,000 acres of avocados over three
years? And how soon could you see this? I see that you're estimate of EBITDA has gone up from $30 million to $45 million. Is that the additional
$15 million to $20 million coming from the avocados, and at current prices, how would those economics work?
Question: Raj Sharma - B. Riley Securities, Inc. - Analyst
: Got it. And then just lastly, so obviously, you are expecting the next three years, you don't expect any sort of demand supply to suffer in avocados.
You expect the demand-supply dynamics to stay as robust as they probably look to you right now. I mean, any impact from Mexico that stood
upend --
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JUNE 06, 2024 / 8:30PM, LMNR.OQ - Q2 2024 Limoneira Co Earnings Call
Question: Raj Sharma - B. Riley Securities, Inc. - Analyst
: Great. Excellent. Thank you for taking my questions. I'll take this offline.
Question: Ben Klieve - Lake Street Capital Markets, LLC - Analyst
: All right. Thanks for taking my question. First, congratulations on the really exciting news out of the Harvest initiative. I know that will take a while
to be able to announce and yes just congratulations again on getting out over the finish line thus far.
My questions though, are related to the agribusiness operations. First of all on the avocado side. I'm wondering, if you can elaborate on kind of
what's different in your avocado expansion plans over the next few years than maybe you had thought over the last couple of quarters? Because
it seems like this is kind of the direction you were you were going. And I'm wondering if I'm wrong, is there something that's materially changed
here in your avocado expectations that you're announcing today?
Question: Ben Klieve - Lake Street Capital Markets, LLC - Analyst
: Got it. Thanks, Harold. You alluded to one of my other questions on lemon pricing, continues to seem like quite oversupply is driving this. Can you
kind of talk about the lemon pricing outlook? I mean, the $17.85, I think that was in the quarter. Was that kind of in line with your expectations at
this time three months ago? Or did that disappoint, and kind of what's your expectations now here in the second half of this fiscal year?
Question: Ben Klieve - Lake Street Capital Markets, LLC - Analyst
: Got it. That's helpful from both of you, thank you. Mark, one for you and then I'll get back in line. You talked about the kind of expectations in fiscal
'25 and '26 as you're ramping your avocado acreage. Totally understandable. I'm wondering, though, if you can help us, I understand a bit about
kind of the CapEx needs to go into this initiative and then the associated OpEx with managing these this level of acreage before it becomes
productive over the next couple of years?
Question: Ben Klieve - Lake Street Capital Markets, LLC - Analyst
: Okay, great. Very good. I appreciate all the color, and thanks for taking my questions. I'll get back in queue.
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