Limoneira Co

should have access to the fourth quarter fiscal year 2025 earnings release, which went out today at approximately 4.05 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 limanera.com. This call is being webcast, and a replay will be available on Limanera'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 can cause its future results, performance, or achievements to differ significantly from the results, performance, or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risk details in the company's Form 10Qs and 10Ks 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 statement herein, whether a result of new information, future events, or otherwise. Please note that during today's call, we will 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 Lehman Air's ongoing results or operations, particularly when comparing underlying results from period to period. We provide as much detail as possible on any items that are discussed on an adjusted basis. Also, within the company's earnings release and in today's prepared remarks, we include adjusted EBITDA and adjusted diluted earnings per share, which are non-GAAP financial measures. A reconciliation of adjusted EBITDA and adjusted diluted earnings per share to the most directly comparable GAAP financial measures are included in the company's press release, which has been posted to its website. And with that, it is my pleasure to turn the call over to the company's president and CEO, Mr. Harold Edwards.

Thanks, John, and good afternoon, everyone. Today, I want to update you on the substantial progress we've made in transforming Limonera's business model. Over the past two years, we've systematically addressed the fundamental oversupply in the global lemon market by repositioning our company around multiple profit centers and dramatically improving our cost structure. The strategic initiatives we began implementing in fiscal year 2023 were driven by a clear assessment of market realities. We took decisive action to reduce our exposure to volatile lemon pricing while building sustainable competitive advantages. In the fourth quarter of fiscal year 2025, we accelerated this work by reducing future costs to position us for stronger fiscal year 2026 results. Our return to Sunkist exemplifies this strategy in action. In fiscal year 2026, we expect to generate $10 million in cost savings compared to fiscal year 2025. Importantly, Sunkist provides enhanced customer access to premium accounts and major U.S. retailers through a full category citrus offering. This positions us to deliver comprehensive solutions for retail buyers while removing pricing pressure from the marketplace and strengthening both our packing margins and grower partner relationships. Another key initiative involved expanding our avocado offering. Today we have 1,500 acres planted with only 800 acres currently bearing fruit. The additional 700 acres will begin bearing fruit over the next three to four years, representing a near 100% increase in our avocado production capacity. California avocados command premium pricing due to superior quality and our strategic location provides logistical advantages to the highest per capita consumption markets in the western United States. Our strategic initiatives extend well beyond agriculture. We have our planned 50-50 organic recycling joint venture with Ackerman that we expect to process 300,000 tons of organic waste annually and generate $4 to $5 million in additional EBITDA beginning in fiscal year 2027. We also have our real estate development project, Harvest at Lima Nera. We continue to expect future distributions to total $155 million over the next five fiscal years. Phase three of the project consists of approximately 500 home lots and 300 apartments, plus we have an additional 35-acre East Area 2 medical pavilion development that we believe could be begin to be monetized in fiscal year 2026. Additionally, we have Limco Del Mar, our 221-acre agricultural property that is infill property within the city of Ventura, which represents a strategic asset with potential for residential development and significant long-term value creation. We are also unlocking value by divesting non-strategic assets and monetizing our water rights, to fuel this transformation and strengthen our balance sheet. We successfully completed the sale of our Chilean assets in November for $15 million. We are now advancing the monetization of our windfall farms vineyard in Paso Robles and Argentina agricultural assets together valued at approximately $40 million with completion targeted by the end of fiscal year 2026. Simultaneously, our water monetization strategy is gaining momentum. We realized $1.7 million from the sales of Santa Paula Basin pumping water rights this past year and are positioned to capture an additional $50 to $70 million in value through fiscal year 2027 from our Class III Colorado River water rights and Santa Paula Basin conserved pumping rights. These represent a transformation of our business model, shifting from a focus on oversupplied lemons to higher demand avocados, optimizing our asset base through strategic divestitures and partnerships, and operating with a more asset-light structure across multiple profit centers. Fiscal year 2026 will mark the beginning of this transformation's financial impact, with multiple value drivers converging simultaneously. We expect to realize a 50% reduction in SG&A, or approximately $10 million in savings in fiscal year 2026 from our operational restructuring initiatives completed in the fourth quarter of fiscal year 2025. Our expanding avocado production will begin contributing meaningfully in fiscal year 2027 as our 700 acres of non-bearing trees begin maturing. Additionally, our diversification strategy gains momentum with our planned Agramon Organic Recycling joint venture moving toward its expected $4 to $5 million EBITDA contribution beginning in fiscal year 2027. Combined with continued asset optimization and reduced commodity exposure, we expect fiscal year 2026 to deliver substantially improved financial performance. The proof points are clear. Our cost structure is dramatically improved. Our customer access is enhanced. Our product mix is optimized. and our asset base is being monetized. These are strategic initiatives that we believe will drive financial results beginning in fiscal year 2026. As our cash generation improves, we will evaluate capital allocation opportunities, including share repurchases if our stock price doesn't reflect our operational improvements, debt reduction, and potential dividend increases as our diversified cash flows improve. In closing, Lee Minera today is fundamentally different from the company we were 18 months ago. We've transformed from a commodity lemon producer to a diversified agricultural and real estate company with multiple growth engines and a dramatically improved cost structure. Now let me turn it over to Mark for the financial details, and then we'll take your questions.

Thank you, Harold, and good afternoon, everyone. Before I begin, I would remind you it is best to view our business on an annual, not quarterly basis, due to the seasonal nature of our business. Historically, our first and fourth quarters have been the seasonally softer quarters, while our second and third quarters have been stronger, a pattern that has held true for the fiscal year 2025. However, beginning in fiscal year 2026, our seasonal cadence will shift due to our Sunkist partnership transition. Under this new structure, we expect the cadence of the quarterly results to be as follows. The first and second quarters will be the seasonally softer quarters, while our third and fourth quarters now will be stronger. This represents an important change in our quarterly rhythm that investors should factor into their modeling as we move forward. For the fourth quarter of fiscal year 2025, total net revenue was $42.8 million and compared to total net revenue of $43.9 million in the fourth quarter of the previous fiscal year. Agribusiness revenue was $41.3 million, compared to $42.5 million in the fourth quarter last year. Other operations revenue was $1.5 million in the fourth quarter of fiscal year 2025, compared to $1.4 million in the fourth quarter last year. Agribusiness revenue for the fourth quarter of fiscal year 2025 includes $19.2 million in fresh-packed lemon sales compared to $8.4 million during the same period of fiscal year 2024. Approximately 821,000 cartons of U.S. packed fresh lemons were sold during the fourth quarter of fiscal year 2025 at a $23.33 average price per carton compared to 470,000 cartons sold at a $17.95 average price per carton during the fourth quarter of fiscal year 2024. Brokered lemons and other lemon sales were $12.5 million and $14.7 million in the fourth quarter of fiscal years 2025 and 2024, respectively. The company recognized $300,000 of avocado revenue in the fourth quarter of fiscal year 2025 compared to $8.9 million of avocado revenue in the same period of fiscal year 2024. Approximately 396,000 pounds of avocados were sold in aggregate during the fourth quarter of fiscal year 2025 at a 79 cent average price per pound. compared to approximately 4.6 million pounds sold at a $1.92 average price per pound during the fourth quarter of fiscal year 2024. The California avocado crop typically experiences alternate years of high and low production due to plant physiology and was the primary reason for lower volume this year compared to last year. We achieved our avocado volume goal for fiscal year 2025. The company recognized $2.9 million of orange revenue in the fourth quarter of fiscal year 2025 compared to $1.7 million in the fourth quarter of fiscal year 2024. Approximately 148,000 cartons of oranges were sold during the fourth quarter of fiscal year 2025 at a $19.67 average price per carton compared to approximately 91,000 cartons sold at an $18.99 average price per carton during the fourth quarter of fiscal year 2024. Specialty citrus, wine grape, and other revenues were $2.9 million in the fourth quarter of fiscal year 2025, compared to $3.5 million in the fourth quarter of fiscal year 2024. Due to the termination of our farm management agreement effective March 31, 2025, there was no farm management revenue in the fourth quarter of fiscal year 2025 compared to $2.9 million in the same period of fiscal year 2024. Total costs and expenses for the fourth quarter of fiscal year 2025 were $53.9 million compared to $46.6 million in the fourth quarter of last year. Operating loss for the fourth quarter of fiscal year 2025 was $11.1 million compared to operating loss of $2.8 million in the fourth quarter of the previous fiscal year. Net loss applicable to common stock after preferred dividends for the fourth quarter of fiscal year 2025 was $8.8 million compared to net loss applicable to common stock of $2 million in the fourth quarter of fiscal year 2024. Net loss per diluted share for the fourth quarter of fiscal year 2025 was 49 cents compared to a net loss per diluted share of 11 cents for the same period of fiscal 2024. The increase in net loss and net loss per share compared to the prior year reflects $6.7 million in strategic transformation costs, including expenses related to the Sunkist transition, tree disposals for the expansion of avocado production, and other non-recurring costs and expenses. In addition, we incurred costs related to a power outage at our storage facilities, which we expect to recover through insurance proceeds in the first quarter of fiscal year 2026. Adjusted net loss for diluted EPS for the fourth quarter of fiscal year 2025 was $8 million, or 45 cents per diluted share, compared to adjusted net loss for diluted EPS of $1.6 million or $0.09 per diluted share in the same period of fiscal year 2024. A reconciliation of net income or loss attributable to Lehman Air Company to adjusted net income or loss for diluted EPS is provided at the end of the earnings release. Non-GAAP adjusted EBITDA for the fourth quarter of fiscal year 2025 with a loss of $7 million compared to income of $1.2 million in the same period of fiscal year 2024. A reconciliation of net income or loss attributable to limonera companies to adjusted EBITDA is also provided at the end of our earnings release. Looking beyond this year, the Citrus Sales and Marketing Plan we announced with Sunkist is anticipated to enhance our resilience to market volatility by creating a more efficient cost structure. For the fiscal year ended October 31, 2025, total net revenue was $159.7 million compared to $191.5 million last year. The decrease was primarily driven by decreased agribusiness revenues from lemons, avocados, wine grapes, and farm management. partially offset by increased agribusiness revenues from oranges. Operating loss for fiscal year 2025 was $20.4 million compared to an operating loss of $6.2 million last year. Net loss applicable to common stock after preferred dividends was $16.5 million for fiscal year 2025 compared to net income of $7.2 million for fiscal year 2024. Net loss for diluted share for fiscal year 2025 was 93 cents compared to net income for diluted share of 40 cents in fiscal year 2024. For fiscal year 2025, adjusted net loss for diluted EPS was $14 million compared to adjusted net income for diluted EPS of $11 million for fiscal year 2024. Adjusted net loss per diluted share for fiscal year 2025 was 79 cents compared to adjusted net income per diluted share of 62 cents for fiscal year 2024 based on approximately 17.8 million and 17.7 million weighted average diluted common shares outstanding respectively. The effective tax rates for fiscal year 2025 and 2024 were 22.1% and 37.9% respectively. For fiscal year 2025, adjusted EBITDA was a loss of $6.5 million compared to an income of $26.7 million for fiscal year 2024. Turning now to our balance sheet and liquidity. Long-term debt as of October 31 2025 was $72.5 million compared to $40 million at the end of fiscal year 2024. Debt levels as of October 31, 2025, less $1.5 million of cash on hand resulted in a net debt position of $71 million at the end of fiscal year 2025. In April 2025, we received $10 million of our share of a $20 million cash distribution from our 50-50 real estate development joint venture with the Lewis Group of Companies. The distribution came from the joint venture's available cash and cash equivalents, which as of October 31, 2025, totaled $31.2 million. Last week, we negotiated more favorable banking covenants that allow us to continue to use the full capacity of our $115 million credit facility, of which we had $41.6 million of availability as of October 31, 2025. Now, I'd like to turn the call back to Harold to discuss our fiscal year 2026 outlook and longer-term growth pipeline. Thank you, Mark.