Calavo Growers Inc. (NASDAQ:CVGW) Q3 2020 Earnings Conference Call - Final Transcript

Sep 08, 2020 • 05:00 pm ET

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Calavo Growers Inc. (NASDAQ:CVGW) Q3 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Greetings, and welcome to Calavo Growers Incorporated Third Quarter 2020 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host Lisa Mueller, Investor Relations for Calavo Growers.

Thank you Ms. Mueller. You may begin.

Executive
Lisa Mueller

Thank you, operator, and thank you all for joining us today to discuss Calavo Growers third quarter 2020 financial results. This afternoon we issued our earnings release and this document is available in the Investor Relations section of our website at ir.calavo.com.

I am here today with Jim Gibson, Chief Executive Officer of Calavo and Kevin Manion, Chief Financial Officer. On today's call, management will provide prepared remarks and then we will open up the call for your questions. In order to maximize participation while keeping our call to an hour, we will be observing a two-question limit during the Q&A portion of the call. Participants can then re-enter the queue if you have follow-up questions.

Before we begin, I would like to remind you that today's comments will include forward-looking statements under the federal securities laws. Forward-looking statements are identified by words such as will, be, intend, believe, expect, anticipate or other comparable words and phrases.

Statements that are not historical facts such as statements about our outlook and adjusted EBITDA are also forward-looking statements. Our actual financial condition and results of operations may vary materially from those contemplated by such forward-looking statements. Discussion of the factors that could cause our results to differ materially from these forward-looking statements are contained in our SEC filings, including our reports on Form 10-K and 10-Q.

With that, I would now like to turn the call over to Jim Gibson. Jim, please go ahead.

Executive
Jim Gibson

Thank you, Lisa. Good afternoon and welcome to Calavo's third quarter earnings call. I want to thank our entire team across our global operations for all their hard work in navigating through the prolonged pandemic. Their resilience and resolve have allowed us to maintain our supply chain and remain a trusted partner to our customers.

Consumer demand for avocados remains robust. Our third quarter volume was up 18% year-over-year and well above our historical third quarter averages. This growth is reflective of the upward trend in industry volumes, which continues to signal that avocados are becoming a staple for customers.

And we are pleased to see our supply chain continuing to meet demand even in the face of a sustained pandemic environment. On a daily basis, we are working closely with our longstanding grower relationships in Mexico, California, and Peru to ensure that we maintain the supply of high-quality fruit to our customers year-round. We are also ensuring that our own plants and facilities remain a safe working environment for our employees.

While we are operating in a very dynamic environment, we remain confident in our abilities as a strong operator. The growing demand for avocados, our robust supply chain, and strong long-term relationships with growers around the globe continue to position segments of