Cuộc họp công bố kết quả kinh doanh Quý 3 năm tài chính 2026 của Limoneira (LMNR): EBITDA tăng, nâng dự báo mảng bơ

Thông tin chính

• Doanh thu thuần trong quý 3 năm tài chính 2026 giảm xuống 43,8 triệu USD từ mức 47,8 triệu USD, chủ yếu do chuyển giao hoạt động môi giới trái cây họ cam quýt sang Sunkist.
• EBITDA điều chỉnh tăng lên 3,9 triệu USD từ mức 3,0 triệu USD. Chi phí bán hàng, quản lý và doanh nghiệp (SG&A) giảm 1,0 triệu USD xuống còn 4,0 triệu USD trong bối cảnh Limoneira tiến gần hơn đến mục tiêu tiết kiệm 10 triệu USD hàng năm.
• Doanh số chanh tươi tăng lên 27,3 triệu USD do giá bán trung bình tăng lên 19,88 USD/thùng, mặc dù sản lượng giảm xuống 1,373 triệu thùng.
• Limoneira đã nâng dự báo sản lượng bơ trong năm tài chính 2026 lên 7,0–7,25 triệu pound, từ mức 5,5–6,5 triệu pound, sau khi bán được khoảng 7,0 triệu pound trong quý 3.
• Ban lãnh đạo đã hạ dự báo sản lượng chanh tươi xuống 4,0–4,25 triệu thùng, do nguồn hàng nhập khẩu dư thừa từ Argentina gây áp lực lên cả sản lượng bán hàng và giá bán.
• Công ty dự kiến sản lượng bơ trong năm tài chính 2027 sẽ vượt 10 triệu pound, tăng ít nhất 30% so với năm tài chính 2026, nhờ diện tích trồng trong năm 2023 và 2024.

Dữ liệu tài chính chính

Tính đến ngày 31 tháng 7 năm 2026, nợ dài hạn không bao gồm phần đến hạn trả trong năm là 100,7 triệu USD, so với 72,5 triệu USD vào cuối năm tài chính 2025. Tiền và các khoản tương đương tiền đạt 2,2 triệu USD, so với 1,5 triệu USD.

Kết quả kinh doanh và hoạt động

Việc chuyển giao sang Sunkist đã làm mất đi doanh thu từ cam và trái cây họ cam quýt đặc sản, đồng thời giảm doanh số chanh môi giới. Những tác động này đã được bù đắp một phần nhờ giá chanh tươi và doanh số chanh thùng cao hơn. Limoneira không ghi nhận doanh thu từ cam trong quý, so với 1,7 triệu USD của cùng kỳ năm trước, trong khi doanh số chanh môi giới và các loại chanh khác giảm từ 3,8 triệu USD xuống mức không đáng kể.

Sản lượng bơ tăng mạnh, bao gồm cả lượng quả cố tình được giữ lại từ quý 2. Lợi ích này bị bù trừ một phần do giá bán trung bình giảm xuống 1,15 USD/pound từ mức 1,50 USD.

Limoneira dự kiến 400 mẫu Anh (acre) được trồng trong năm 2023 và 2024 sẽ bắt đầu đóng góp doanh thu trong năm tài chính 2027. 400 mẫu Anh chưa cho quả khác dự kiến sẽ bắt đầu cho thu hoạch trong vòng hai đến bốn năm tới.

Công ty đã thành lập một liên doanh tái chế hữu cơ theo tỷ lệ 50-50 với Agromin. Ban lãnh đạo cho biết cơ sở theo kế hoạch có thể xử lý tới 290.000 tấn rác thải hữu cơ mỗi năm và dự kiến sẽ bắt đầu đi vào hoạt động trong nửa sau của năm tài chính 2027.

Limoneira cũng đã đồng ý bán Windfall Farms với giá 15 triệu USD tiền mặt, dự kiến hoàn tất giao dịch vào ngày 14 tháng 9 năm 2026, tùy thuộc vào các điều kiện thông thường. Số tiền thu được dự kiến sẽ dùng để giảm nợ và tiếp tục mở rộng diện tích trồng bơ. Limoneira sẽ tiếp tục canh tác trên diện tích đất này với chi phí 200.000 USD mỗi năm cộng với việc hoàn trả các chi phí tài sản.

Dự báo của ban lãnh đạo

• Sản lượng chanh tươi năm tài chính 2026: 4,0–4,25 triệu thùng.
• Sản lượng bơ năm tài chính 2026: 7,0–7,25 triệu pound, tăng từ mức 5,5–6,5 triệu pound.
• Sản lượng bơ năm tài chính 2027: hơn 10 triệu pound và tăng trưởng ít nhất 30% so với năm tài chính 2026.
• Quý 4 năm tài chính 2026: ban lãnh đạo dự kiến EBITDA điều chỉnh sẽ đạt mức dương và có một sự kiện kiếm tiền từ quyền khai thác nước.
• Năm tài chính 2027: ban lãnh đạo dự kiến EBITDA sẽ tăng trưởng mạnh mẽ đáng kể, nhờ sự tăng trưởng của sản lượng bơ, lợi ích đầy đủ từ việc tiết kiệm chi phí, tối ưu hóa khâu đóng gói của Sunkist và dự kiến cải thiện thêm 4 triệu USD từ hoạt động vận hành.

Công ty đã xác định hơn 200 triệu USD tài sản phát triển bất động sản, đất phi chiến lược và quyền khai thác nước để tiềm năng chuyển đổi thành tiền. Ban lãnh đạo cũng dự kiến thu về tổng cộng khoảng 180 triệu USD từ Harvest at Limoneira, Limoneira Lewis Community Builders II và East Area II trong vòng bảy năm tài chính. Trong số đó, 25 triệu USD đã nhận được trong năm tài chính 2024 và năm tài chính 2025, còn lại dự kiến 155 triệu USD trong năm năm tài chính tiếp theo.

Rủi ro và điểm cần theo dõi

Nguồn chanh nhập khẩu bất ngờ từ Argentina đã gây dư thừa nguồn cung tại thị trường Mỹ sau khi nguồn cung từ Nam Phi gây áp lực lên giá tại Tây Âu. Ban lãnh đạo cho biết điều này đã làm giảm sản lượng và giá chanh của Limoneira. Giá chanh đã bắt đầu ổn định trở lại, nhưng công ty vẫn thận trọng trong việc đẩy thêm nguồn cung vào quý 4 của năm tài chính.

Sản lượng bơ năm tài chính 2027 vẫn phụ thuộc vào sự phát triển của quả, tỷ lệ đậu quả và điều kiện thời tiết. Ban lãnh đạo đặc biệt lưu ý đến gió và các sự kiện liên quan đến thời tiết khác là rủi ro. Mưa lớn ở California có thể hỗ trợ các tầng chứa nước và sức khỏe của cây, nhưng mưa tập trung có thể gây ra lũ lụt.

Nợ dài hạn tăng đáng kể so với cuối năm tài chính 2025. Kế hoạch giảm nợ phụ thuộc một phần vào việc hoàn tất bán tài sản và các giao dịch chuyển đổi tài sản thành tiền.

Tóm tắt phần Hỏi & Đáp với chuyên viên phân tích

Ban lãnh đạo cho rằng sự sụt giảm sản lượng chanh chủ yếu do chanh Argentina bị chuyển hướng sang Mỹ sau khi Tây Âu rơi vào tình trạng dư thừa nguồn cung chanh từ Nam Phi. Công ty dự kiến áp lực sẽ giảm bớt khi nguồn cung nhập khẩu giảm xuống, mặc dù các tác động vẫn chưa chấm dứt hoàn toàn.

Về việc kiếm tiền từ quyền khai thác nước, ban lãnh đạo cho biết quá trình này vẫn đi đúng hướng. Limoneira đã ngừng sản xuất chanh ở Arizona và đang xác định các loại cây trồng thay thế sử dụng ít nước hơn, điều này có thể giải phóng quyền khai thác nước sông Colorado cho các chương trình bảo tồn dài hạn phục vụ cư dân đô thị.

Liên quan đến sản lượng bơ trong năm tài chính 2027, ban lãnh đạo cho biết một vụ mùa bội thu đã hiện rõ trên cây, củng cố sự tự tin vào mục tiêu đạt trên 10 triệu pound. Tuy nhiên, công ty cảnh báo rằng sản lượng không được đảm bảo vì quả phải giữ được trên cây và chịu đựng được thời tiết trước khi thu hoạch.

Toàn văn biên bản cuộc họp công bố kết quả kinh doanh

Toàn văn cuộc gọi công bố kết quả kinh doanh

Phần trình bày của ban lãnh đạo

Operator

Thank you. Good afternoon, everyone, and thank you for joining us for Limoneira's Third Quarter Fiscal Year 2026 Conference Call. On the call today are Harold Edwards, President and Chief Executive Officer, and Greg Hamm, Chief Financial Officer. By now, everyone should have access to the third quarter fiscal year 2026 earnings release, which went out today at approximately 4 p.m. Eastern time. If you've not had a chance to view the release, it's available on the investor relations portion of the company's website at Limoneira.com. This call is being webcast and a replay will be available on Limoneira's website as well. Before we begin, we'd like to remind everyone that prepared remarks contain forward-looking statements and management may make additional forward-looking statements in response to your questions. Such statements involve a number of known and unknown risks and uncertainties, many of which are outside the company's control and could cause its future results, performance, or achievements to differ significantly from results, performance, or achievements expressed or implied by such forward-looking statements.

Important factors that could cause or contribute to such differences include risk detailed in the company's Form 10-Qs and 10-Ks filed with the SEC and those mentioned in the earnings release. Except as required by law, we undertake no obligation to update any forward-looking or other statements herein, whether a result of new information, future events, or otherwise. Please note that during today's call, we'll be discussing non-GAAP financial measures, including results on an adjusted basis. We believe these adjusted financial measures can facilitate a more complete analysis and greater understanding of Limoneira's ongoing results of operations, particularly when comparing underlying results from period to period. We have provided as much detail as possible on any items that are discussed on an adjusted basis. Also, in the company's earnings release and in today's prepared remarks, we include adjusted EBITDA and adjusted diluted EPS, which are non-GAAP financial measures. A reconciliation of adjusted EBITDA and adjusted diluted EPS to the most directly comparable GAAP financial measures are included in the company's press release, which has been posted to our website.

And with that, it is my pleasure to turn the call over to the company's president and CEO, Mr. Harold Edwards.

Harold Edwards

Thanks, John, and good afternoon, everyone. During the third quarter, we continued to make progress on our value creation strategy of growing long-term agricultural income, which includes streamlining operations, expanding avocado production, optimizing lemon packing with recently announced Sunkist partnership, and expanding our organic recycling facility. In addition, we have identified real estate development and non-strategic land assets and water rights of over $200 million. The third quarter results came in below our expectations due to lighter than anticipated lemon sales volume. However, adjusted EBITDA exceeded prior year third quarter results. The quarter benefited from higher total agribusiness operating income driven by stronger than expected avocado volume and progress toward our targeted $10 million in annual selling, general and administrative expense savings. We now expect to achieve the lower end of our lemon volume guidance as a result of higher lemon imports hitting the U.S. market.

However, we are again raising our avocado volume guidance for fiscal year 2026. Looking ahead, we expect to produce more than 10 million pounds of avocados in fiscal year 2027, an increase of approximately 30 percent over fiscal year 2026. This growth is driven by the 400 acres of avocados we planted in 2023 and 2024, which are expected to set a crop this year and contribute to volume in fiscal year 2027. We also have an additional 400 non-bearing acres that are expected to begin bearing in the next two to four years. As a reminder, California avocados command premium pricing due to the superior quality, and our strategic location provides logistical advantages to the highest per capita consumption markets in the U.S. Turning to the monetization of non-strategic assets, we expect the sale of Windfall Farms for $15 million to close on September 14, 2026, which is the most recent step in our ongoing strategy to monetize non-strategic assets, strengthen our balance sheet, reduce debt, and redeploy capital into higher return opportunities across our core agribusiness and real estate platforms. As we enter the fiscal fourth quarter, we expect another quarter of positive adjusted EBITDA and additional asset monetization events.

Regarding our water rights monetization, we've taken decisive steps in Arizona, ceasing citrus farming operations on 600 acres of lemons to focus on water monetization by farming low-water use crops, which we anticipate will make this asset significantly more profitable. We expect a monetization event from our Class III Colorado River water rights in 2026. Additionally, our Santa Paula Basin conserved pumping rights represent high-value, non-operational resources that we can convert to cash while maintaining our agricultural operations. Looking into fiscal year 2027, we are well positioned to achieve meaningfully stronger EBITDA. This includes the benefit from our recently signed 50-50 organic recycling joint venture with Agromin to create a potential high return facility with the capacity to process up to 290,000 tons of organic waste annually. This is expected to generate significant shared earnings when the facility becomes operational in the second half of fiscal year 2027. With a dramatic increase in our avocado volume from the additional acreage that was planted in 2023 and 2024, realizing the full benefit from our current cost savings initiatives, optimizing lemon packing with our transition to Sunkist, and an additional $4 million in anticipated operating improvement due to Windfall Farms management, improved lemon storage margins, and improved lemon logistics. Turning to our real estate development project, Harvest at Limoneira, we continue to expect future proceeds from Harvest, Limoneira Lewis Community Builders II and East Area II to total $155 million over the next five fiscal years.

Home sales for phase two continued to be robust with two to seven homes per week being sold. Phase three of the project consists of approximately 500 home lots, and we believe we will go to market with this phase in fiscal year 2027. In addition, we have 300 apartments approved and expect to break ground on this portion of the project in the second half of fiscal year 2027. Part of our real estate development is a 25-acre East Area II medical pavilion project that we believe could begin to be monetized in fiscal year 2026. Additionally, we have Leoncito Del Mar, our 221-acre agricultural infill property, which represents a strategic asset with potential for residential development and significant long-term value creation. In summary, as we enter the fourth quarter of fiscal year 2026, we believe we are very well positioned to achieve positive adjusted EBITDA and monetize one of our water assets in the quarter and continue building the foundation for sustained profitability. We've transformed our cost structure, focused our revenue streams, optimized our asset base, and positioned ourselves for sustainable EBITDA growth.

I believe the items just discussed have us very well positioned to unlock the tremendous asset value at Limoneira. Now let me turn the call over to Greg for the financial details, and then we'll take your questions. Thank you.

Greg Hamm

Thank you, Harold, and good afternoon, everyone. I'm pleased to be speaking with you today to discuss our third quarter fiscal year 2026 financial results. As we discussed last quarter, the third and fourth quarters were expected to be our seasonally stronger periods under the Sunkist Agreement, and our third quarter results are tracking in line with that expectation. Total net revenue for the third quarter of fiscal year 2026 were $43.8 million compared to $47.8 million in the third quarter of fiscal year 2025. Agribusiness revenues totaled $42.2 million compared to $45.9 million in the prior year third quarter. Other operations revenue was $1.6 million compared to $1.5 million in the prior year third quarter. The year-over-year decrease was primarily due to the transition of our citrus brokerage operations to Sunkist, which eliminated orange and specialty citrus revenues and decreased brokered lemon and other lemon sales, partially offset by increased fresh lemon and carton sales driven by higher pricing.

Additionally, avocado revenues decreased due to lower prices, partially offset by higher volume of avocados sold compared to the prior year third quarter. Fresh lemon carton sales were $27.3 million in the third quarter of fiscal year 2026, compared to $23.8 million in the same period last year. We sold approximately 1,373,000 cartons of fresh lemons at an average price of $19.88 per carton during the third quarter of fiscal year 2026, compared to 1,397,000 cartons at $17.02 per carton in the prior year third quarter. Fresh lemon carton sales and per carton prices for the third quarter of fiscal year 2026 are net of the Sunkist marketing fee. Brokered lemons and other lemon sales were immaterial in the third quarter of fiscal year 2026, compared to $3.8 million in the third quarter of fiscal year 2025. Turning to avocados, through the first nine months of fiscal year 2026, we sold approximately 7.3 million pounds of avocados, exceeding the high end of our previous full-year guidance range of 5.5 million to 6.5 million pounds. In the third quarter of fiscal year 2026, we sold approximately 7 million pounds at an average price of $1.15 per pound compared to 5.7 million pounds at $1.50 per pound in the prior year period.

The increase in volume includes some of the harvest we intentionally delayed from the second quarter to maximize pricing and reflects the alternating high and low production years that are typical of the California avocado crop, partially offset by lower average pricing this quarter compared to the prior year. There was no orange revenue in the third quarter of fiscal year 2026 compared to $1.7 million in the same period last year, and no specialty citrus and wine grape revenue compared to $600,000 in the third quarter of fiscal year 2025, both due to the transition of our citrus brokerage operations to Sunkist. Total costs and expenses in the third quarter of fiscal year 2026 were $46.8 million compared to $48.1 million in the third quarter of last fiscal year, primarily driven by a decrease in agribusiness costs and lower selling, general and administrative expenses partially offset by impairment of assets related to Windfall Farms. Selling, general and administrative expenses were $4 million compared to $5 million in the third quarter of fiscal year 2025, primarily reflecting lower salaries, benefits, and other selling expenses related to the Sunkist transition. Operating loss for the third quarter of fiscal year 2026 was $3 million, compared to an operating loss of $600,000 in the prior year period. This reflects the revenue and cost factors just described. Net loss applicable to common stock after preferred dividends was $3 million, or 17 cents per diluted share, in the third quarter of fiscal year 2026, compared to a net loss applicable to common stock of $1 million, or 6 cents per diluted share, in the third quarter of fiscal year 2025.

Now, let me turn to adjusted results. Adjusted net income for diluted EPS in the third quarter of fiscal year 2026 was $400,000, or two cents per diluted share, compared to an adjusted net loss of $400,000, or two cents per diluted share in the prior year period. A full reconciliation is provided in our earnings release. Non-GAAP adjusted EBITDA was $3.9 million in the third quarter of fiscal year 2026, compared to $3 million in the same period last year. Reconciliation to net loss attributable to Limoneira Company is provided in our earnings release. Turning to our balance sheet, long-term debt less current portion as of July 31st, 2026 was $100.7 million compared to $72.5 million at the end of fiscal year 2025. Cash and cash equivalents were $2.2 million as of July 31st, 2026 compared to $1.5 million at the end of fiscal year 2025.

During the first nine months of fiscal year 2026, we received aggregate insurance proceeds of $5.4 million related to combined business interruption and casualty loss claims arising from incidents at our packinghouses. On September 2, 2026, we received confirmation from our insurance company then an additional $2 million of insurance proceeds is to be paid for these claims. We anticipate receiving these additional insurance proceeds in the fourth quarter of fiscal year 2026, at which time income will be recognized for the amounts received. I also want to update you on the Windfall Farms transaction. Subsequent to quarter end on August 17, we announced that we entered into a new agreement to sell Windfall Farms for $15 million all cash following a competitive public auction process. We expect this transaction to close on September 14, 2026, subject to customary closing conditions, and we intend to use the proceeds to reduce debt and fund continued avocado acreage expansion, consistent with our capital allocation priorities. There are two additional pieces of the transaction worth highlighting.

First, the buyer has executed a farming agreement under which we will continue to farm the vineyard property and will be paid $200,000 per year in addition to full reimbursement of all expenses on the property. Second, the buyer elected to exclude the 2026 crop from the sale so we will be able to collect the economic benefit of this year's vineyard crop, which we expect to be substantially complete by October 31st. Now I'd like to turn the call back to Harold to discuss our remaining fiscal year 2026 outlook and longer-term growth objectives.

Harold Edwards

pipeline. Thank you, Greg. We expect to achieve the lower end of our fresh lemon volumes due to higher import volume and now believe we will sell 4.0 million to 4.25 million cartons for fiscal year 2026. We have increased our expected avocado volumes to now be in the range of 7 million to 7.25 million pounds compared to the previous range of 5.5 million to 6.5 million pounds for fiscal year 2026. We expect at least 30% increase in volume in fiscal year 2027 compared to fiscal year 2026. We have identified over $200 million in real estate development and non-strategic land assets and water rights that we expect to monetize beginning in the fourth quarter of this year and over the next few years. In addition, we expect to receive total proceeds of approximately $180 million from Harvest, Limoneira Lewis Community Builders II, and East Area II spread out over seven fiscal years, of which $10 million was received in fiscal year 2025 and $15 million was received in fiscal year 2024. We're excited about our overall business for fiscal year 2027 and the tremendous opportunity we have to enhance shareholder value through improved agricultural results and monetization events. Operator, we'll now open the call to questions.

Thank you. We'll now be conducting a question and answer session.

Operator

[Operator Instructions]

Thank you. Our first question is from Puran Sharma with Stephens.

Phần hỏi đáp

Pooran Sharma

Good afternoon and thanks for the question here. Just wanted to understand the lemon volumes and imports you called out. I believe you mentioned higher imports as the reason you're going to the lower end of the guide here. Could you maybe give us a sense as to where you're seeing these imports coming from? Is this mainly a timing issue? Or is it just more industry supply than you're anticipating here in the back half? Yes.

Harold Edwards

Hi, Puran. Thanks for the question. Yes, so as usual, there's a series of connected dots items that happened that caused the challenges in our sales volume in the third quarter. So the first thing that happened was Western Europe got oversupplied with lemons from South Africa. And Western Europe is typically the outlet for Argentina fruit. And so as the price went down in Western Europe, the Argentina fruit diverted to the U.S. and, in essence, oversupplied the market. And so that's really what happened is Sunkist's sales plan fell short because there were just too many lemons in the market at this time. And it hurt us on volume and it actually hurt us on price as well.

And it was just an unexpected oversupply from Argentina. And Argentina was the sole culprit of the oversupply in the lemons. And while that's beginning to be better and relieve itself as that fruit is diminishing in the market, we have intentionally held back on sort of pushing that additional supply forward in the fourth quarter out of an abundance of caution. We are seeing price beginning to firm and strengthen a bit, but there's still challenges with the aftermath of the oversupply caused by the imports of fruit from Argentina.

Pooran Sharma

Okay. Appreciate the color there. Maybe just on water monetization, I think you mentioned you have over $200 million of real estate, strategic land and certain water rights for potential monetization. I believe the Colorado River water monetization event, you're expecting it to occur here in fiscal 2026, which leaves kind of a narrow window. I just wanted to get your thoughts on what needs to happen here to complete a transaction. And has your confidence around the timing and the value of that monetization changed at all since the last quarter?

Harold Edwards

No, it's kind of right on track with the last quarter. So, a series of things needed to happen. The first is we needed to remove our lemons from our 1300 acres that we have of farmland in Yuma, Arizona. We've done that. The next thing is we needed to identify lower water-using crops that could be substituted for the lemons. And so we're close to some exciting announcements of what those crops will be. But by doing that, that then frees up a certain amount of water that won't be required for our agricultural operations, that we can contribute to following programs, long-term following programs that will allow water users, principally from municipalities, specifically probably the Central Arizona Project, so all of the housing Phoenix that goes all the way down to Tucson and throughout Arizona to take advantage of those water rights from the Colorado River. And so we're very confident that we're very close to entering into a long-term agreement to take advantage of these following programs, will provide significant benefit for us and our shareholders as we monetize those water rights in the fourth quarter of this fiscal year.

Great. Thank you very much. Thanks, Puran.

Operator

Thank you. Our next question is from Mark Smith with Lake Street Capital Markets.

Unknown Speaker

Hey guys, good afternoon. This is Alex Ewig on for Mark Smith. I just want to start. You guys raised avocado volume guidance again and are expecting over 10 million pounds in fiscal year 2027, which is about 30% increase year over year. Could you maybe walk us through the cadence of your 400 acres planted in 2023 and 2024 coming online and how much of that fiscal year 2024 is going to be? number is already locked in versus weather or yield dependent.

Greg Hamm

I would say that seven million, six to seven million is a lock-in because that's on acreage that is already producing and contributed to this year's volume. And then the rest of the increase would be on the expanded acreage from the 2022, 2023, 2024 planning.

Harold Edwards

I would just add to that that I think it's dangerous to use the word locked in because there's a lot of events that need to happen. Specifically, the fruit needs to grow. It needs to remain on the tree. It needs to survive wind events and weather-related events to get itself a runway between us and actual harvest and sales for 2027. But what we do know is we have a very large crop that's set for next year. We see the fruit on the tree right now. So we're off to a great start.

And so we're confident that we should see the trees that were planted in 2023 and 2024 begin to contribute to the overall production in 2027.

Unknown Speaker

Great, thank you. And what weather impact do you guys expect if the El Nino weather pattern is continuing?

Harold Edwards

Yes. So, they're predicting quite a bit of rain in this part of California, and just so long as it doesn't all come at once that creates flooding, then rain is actually a good thing for us. It fills up our aquifers and really helps with the physiology of our trees. The danger is, again, if it all comes all at once or too much at once, which causes flooding, which is always a challenge for us and potentially a risk for us. So we're ready. We've got our teams ready. We've got our culverts and our barrancas cleaned out, and we're ready for the rain. We're ready to face it. And I think the El Nino is predicted to have less rainfall in Mexico, which in theory would reduce the size of their crop and provide more opportunity for the California avocados.

Operator

Great. Thank you. I'll turn it over. Thank you. [Operator Instructions]

Thank you. At this time, there are no further questions. I'd like to hand the floor back over to Harold Edwards for any closing remarks.

Harold Edwards

So thank you all for your questions and your interest in Limoneira. Feel free to call Greg or I with additional questions, but we'd like to wish you a great day. Thank you. Thank you.

Operator

This concludes today's conference. You may disconnect your lines at this time. Thank you again for your participation.

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