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Calavo -- >>> Avocado Grower Has One Influential Insider Sell Massive Block of Shares
April 19, 2016
by Gene Guzun
http://www.insidermonkey.com/blog/greenbrier-companies-inc-gbx-registers-cluster-of-insider-selling-while-top-execs-sell-shares-of-cavco-cvco-and-calavo-cvgw-444291/2/
Avocado Grower Has One Influential Insider Sell Massive Block of Shares
Calavo Growers Inc. (NASDAQ:CVGW) also had one of its most influential executives sell shares last week. President and Chief Operating Officer Kenneth J. Catchot discarded 14,666 shares on Thursday and 30,334 shares on Friday at prices between $55.02 and $56.41 per share, which trimmed his overall holding to 471,472 shares. Calavo Growers is a key player in the avocado industry, marketing and distributing avocados, prepared avocados, and other perishable foods to food distributors, supermarkets, and restaurants. The company conducts its business operations through three business segments: Fresh products; Calavo Foods; and RFG. The Fresh products segment involves the distribution of avocados and other fresh produce products. The Calavo Foods segment involves the purchasing, manufacturing and distribution of prepared products such as guacamole and salsa, while the RFG segment includes the manufacturing and distribution of fresh-cut fruit, ready-to-eat vegetables, recipe-ready vegetables, and deli products.
Calavo Growers reported net sales of $204.58 million for the first quarter of fiscal year 2016 that ended January 31, an increase of 5% year-over-year due to higher sales in all three segments. The largest percentage increase in sales was registered by the RFG segment (which accounted for 37% of net revenue in the quarter), which was driven by higher sales from deli products, vegetables platters and cut fruit. Fresh product sales, which accounted for 55% of net sales in the fiscal first quarter, increased by 1.3% year-over-year due to increased sales of tomatoes, which was partially offset by a decrease in the sales of Mexican- and California-sourced avocados. Meanwhile, Calavo Foods’ sales, which made up approximately 8% of Calavo Growers’ net sales, increased by 5.9% year-over-year due to higher sales of salsa and guacamole products. The Company’s management anticipates each segment to experience double-digit margin expansion for fiscal year 2016, saying that Calavo Growers will report record revenue and earnings per share for the fiscal year.
Shares of Calavo have advanced by 169% in the past five years and are 15% in the green year-to-date, so the COO might have decided to take some profits off the table to diversify his holdings. The stock is priced at around 25.3-times expected earnings, above the forward P/E multiple of 18.8 for the NASDAQ 100 benchmark. The smart money sentiment towards the avocado grower declined notably in the December quarter, with the number of money managers invested in the company shrinking to 11 from 18 quarter-over-quarter. Steve Cohen’s Point72 Asset Management had 136,900 shares of Calavo Growers Inc. (NASDAQ:CVGW) in its equity portfolio at the end of December.
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>>> Air T, Inc., through its subsidiaries, provides overnight air cargo, ground equipment sales, and ground support services in the United States and internationally. The company?s Overnight Air Cargo segment offers small package overnight airfreight delivery services on a contract basis to the air express delivery services industry. As of March 31, 2015, this segment had approximately 79 aircraft under agreement with FedEx in the United States and the Caribbean. Its Ground Equipment Sales segment manufactures, sells, and services aircraft deicers and other ground support equipment, including aircraft deicers, scissor-type lifts, military and civilian decontamination units, flight-line tow tractors, glycol recovery vehicles, and other special purpose mobile equipment. It offers its products to passenger and cargo airlines, ground handling companies, the United States Air Force, airports, and industrial customers. The company?s Ground Support Services segment provides aircraft ground support equipment, fleet, and facility maintenance services to airlines and aviation service providers. Air T, Inc. was founded in 1980 and is based in Maiden, North Carolina. <<<
>>> Exponent, Inc., together with its subsidiaries, provides engineering and scientific consulting services worldwide. It operates in two segments, Engineering and Other Scientific; and Environmental and Health. The Engineering and Other Scientific segment provides services in the areas of biomechanics, biomedical engineering, buildings and structures, civil engineering, construction consulting, electrical engineering and computer science, engineering management consulting, human factors, industrial structures, materials and corrosion engineering, mechanical engineering, polymer science and materials chemistry, statistical and data sciences, technology development, thermal sciences, and vehicle analysis. The Environmental and Health segment offers services in the areas of chemical regulation and food safety, ecological and biological sciences, environmental and earth sciences, exposure assessment and occupational health, and toxicology and mechanistic biology, as well as epidemiology, biostatistics, and computational biology. The company offers approximately 90 different technical disciplines to solve complicated issues facing industry and government. It serves clients in automotive, aviation, chemical, construction, consumer products, energy, government, health, insurance, manufacturing, technology, and other sectors. The company was formerly known as The Failure Group, Inc. and changed its name to Exponent, Inc. in 1998. Exponent, Inc. was founded in 1967 and is headquartered in Menlo Park, California. <<<
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>>> The Ensign Group, Inc., through its subsidiaries, provides skilled nursing and rehabilitative care services in the United States. It offers healthcare services, including skilled nursing, assisted living, home health and hospice, mobile ancillary, and urgent care services. The company provides its skilled nursing services to Medicaid, private pay, managed care, and Medicare payors. Its skilled nursing facilities offer Medicaid-covered services to individuals consisting of nursing care, room and board, and social services, as well as other services, such as physical, occupational, and speech and rehabilitation therapy services. As of July 17, 2014, the company operated 126 facilities, 10 hospice companies, 10 home health businesses, and 12 urgent care clinics in California, Arizona, Texas, Washington, Utah, Idaho, Colorado, Nevada, Iowa, Nebraska, Oregon and Wisconsin. The Ensign Group, Inc. was founded in 1999 and is based in Mission Viejo, California. <<<
>>> Calavo Growers, Inc. markets and distributes avocados, prepared avocados, and other perishable foods to food distributors, produce wholesalers, supermarkets, convenience stores, and restaurants worldwide. Its Fresh Products segment grades, sizes, packs, cools, and ripens avocados for delivery to the customers; and procures avocados grown in Chile and Mexico, as well as various other perishable commodities, including tomatoes, papayas, and pineapples. The company?s Calavo Foods segment procures and processes avocados into various guacamole products; distributes the processed products to customers; and prepares various fresh salsa products. Its RFG segment produces, markets, and distributes fresh-cut fruits, ready-to-eat vegetables, recipe-ready vegetables, and deli meat products. The company offers its products primarily under the Calavo and RFG brands and related logos; and Avo Fresco, Bueno, Calavo Gold, Calavo Salsa Lisa, Salsa Lisa, Celebrate the Taste, El Dorado, Fresh Ripe, Select, Taste of Paradise, The First Name in Avocados, Tico, Triggered Avocados, ProRipeVIP, Garden Highway Fresh Cut, Garden Highway, and Garden Highway Chef Essentials trademarks. Calavo Growers, Inc. was founded in 1924 and is headquartered in Santa Paula, California. <<<
>>> Reed's, Inc. Announces Record Second Quarter Results
18% Growth in Net Revenue Drives $633,000 Second Quarter Profit; Company Achieves Year-to-Date Profitability
LOS ANGELES, CA--(Marketwired - Aug 12, 2014) - Reed's, Inc. (NYSE MKT: REED), maker of the top-selling sodas in natural food stores nationwide, today announced the financial results for its fiscal second quarter ended June 30, 2014.
Financial Highlights: Second Quarter 2014 Compared to Second Quarter 2013
•Net revenue increased 18% to a record $11.2 million
•Gross profit increased 51% to $3.7 million
•Gross profit margin increased 700 basis points to 33% from 26%
•Plant Idle Capacity costs improved from 5% of net sales to 4%
•Company achieved net income of $633,000 versus a net loss of ($494,000)
•Earnings per diluted share of $0.05 versus loss of ($0.04) per diluted share
•Modified EBITDA was $1.1 million during the 2014 second quarter versus a negative $100,000 during the same period last year. (See EBITDA table at end of this release for further non-GAAP information).
Operational Highlights: Second Quarter 2014 Compared to Second Quarter 2013
•Reed's Ginger Brew sales increased by 34%
•Virgil's craft sodas sales increased by 10%
•Reed's Culture Club Kombucha sales increased by 35%
•Driven by plant improvements in Los Angeles in 2013, production was 221,000 cases during the second quarter 2014, an increase of 28% over the second quarter 2013
Marketing/Distribution Highlights:
•Reed's announced that Reed's and Virgil's premium craft sodas are now authorized at SpartanNash stores throughout the Midwest
•Reed's announced that Reed's and Virgil's premium craft sodas are now authorized at Food Lion grocery stores in the Mid-Atlantic and Southern states
•Reed's announced the rollout of Reed's Culture Club Kombucha into Dierbergs throughout Missouri and Illinois
•Reed's announced a new distribution partnership with Haralambos Beverage Company in Southern California
•Reed's announced that Reed's and Virgil's premium craft sodas are now authorized at Books-A-Million, Inc.
"Our sales momentum continues and we achieved profitability, not only in the second quarter, but also year-to-date. Sales for the quarter were driven by a 34% increase in sales of Reed's Ginger Brews that grew organically at an accelerated clip without any new marketing programs. Our Kombucha sales slowed while we changed packaging, but still racked up 35% sales growth for the quarter. We estimate that our Kombucha growth rate would have been approximately double this rate had we not experienced these production delays. We are second in market share and continue to believe that there is significant growth opportunity in this beverage category that is estimated to be $500 million in annual retail sales," commented Chris Reed, Founder and CEO of Reed's, Inc.
"Our second quarter sales were driven by a 21% increase in our core brands (Reed's & Virgil's) and a 35% increase in the sales of our Kombucha beverages. Our private label sales were off by $749,000 in the second quarter, accounting for only 5% of our gross sales, although we anticipate that the category will experience decent growth in the back half of the year. Our gross margin increased 100 basis points to 33% versus the first quarter of 2014 and 700 basis points when compared to the prior year when we had a contractual issue with a private label product offering. Year over year we had a 51% increase in gross profit dollars for the quarter," stated Larry Tomsic, Interim CFO at Reed's, Inc.
Chris Reed, CEO and Founder, continued, "We kicked off the third quarter with the launch of our first national TV advertising campaign targeted at foodies who can appreciate the taste and quality of our Reed's Extra Ginger Brew. We believe that in addition to increasing brand awareness it will ultimately drive sales to the doors that carry Reed's products. We continue to focus our efforts on driving sales and improving gross margins to fund our growth. Although our foundation was built in the natural grocery channel, we have seen significant growth coming from the traditional grocery channel where carbonated soft drinks are struggling and consumers are increasingly looking for unique and all natural beverages like our Reed's Ginger Brew and Virgil's craft sodas."
2014 Outlook
The Company expects revenue growth of 15-20% in fiscal 2014. Core brands (Reed's & Virgil's) are expected to grow 15-20%; Kombucha is expected to grow 40 to 50%; and our other product category, that includes private label, candy and non-core beverage assortments, is expected to be approximately flat. EBITDA is expected to range between $1.5 and $2.0 million for the year and the Company expects to generate a modest net income.
The Company will conduct a conference call @ 4:30PM EDT today, August 12th, to discuss its 2014 second quarter results and outlook for the future. To participate in the call, please dial the following number 5 to 10 minutes prior to the scheduled call time (800) 758-5606. International callers should dial +1 (212) 231-2939.
A replay of the call will be available on the Reed's website at www.reedsinc.com in the "Investors" section following the earnings call within a day.
About Reed's, Inc.
Reed's, Inc. makes the top-selling natural sodas in the natural foods industry and is sold in over 15,000 natural and mainstream supermarkets nationwide. In addition, Reed's products are sold through specialty gourmet, natural food stores, retail stores, convenience stores and restaurants nationwide and select international markets. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. The Company owns the top-selling root beer line in natural foods, the Virgil's Root Beer product line, and a top-selling cola line in natural foods, the China Cola product line. In 2012, the Company launched Reed's Culture Club Kombucha line of organic live beverages. Other product lines include: Reed's Ginger Candies and Reed's Ginger Ice Creams. In 2009, Reed's started producing private label natural beverages for select national chains. The company is celebrating 25 years of hand crafting the best sodas in the world, naturally, in 2014.
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>>> Reed's, Inc. Launches First-Ever TV Ad Campaign Featuring Reed's Ginger Brews
Commercial Features Founder and CEO Chris Reed
http://finance.yahoo.com/news/reeds-inc-launches-first-ever-123000277.html
LOS ANGELES, CA--(Marketwired - July 22, 2014) - Reed's, Inc. (NYSE MKT: REED) today announces the launch of a national cable advertising campaign - the first in the company's 25-year history. The ad, produced by Evans Media Group LLC out of Los Angeles and Fusion Idea Lab in Chicago, focuses on the company founder's affinity for ginger in his Reed's Ginger Brews sold nationwide. The four-week campaign will run over the course of the summer on national cable networks like Bravo, BBC America, Cooking Channel and HGTV - reaching an audience of approximately 27 million.
"Reed's Ginger Brews have been the number one selling sodas in natural foods practically from the start. Our customer advertising has for the most part been getting the stores to put us on the shelf and customers telling friends. We are excited to finally start advertising on national TV and sharing our beverages with a wider audience. The funding for our commercials is made possible by the improving profitability of the company," said CEO and Founder Chris Reed.
In the ad, Reed talks in detail about what goes into his famous Reed's Ginger Brew: fresh ginger root, spices, fruit juices and honey. The ad also includes positive testimonials, ends with a jump in the pool, a "cheers" and a promise that "you'll never drink another ginger ale again."
"First of all the products are awesome. It's always great to have amazing products to advertise. And Chris Reed, the CEO, is the real deal," said Michael Oberman, president and creative director at Fusion Idea Lab. "He is not only passionate about all his products and his company, but he is also true to himself -- all of which comes through in the commercial which I think consumers will fully embrace."
"From a planning perspective, we did the media research that told us exactly where potential new Reed's fans could be found," said Peter Evans, founder of Evans Media Group LLC. "We're fortunate to be able to take real advantage of Chris' national product distribution by using exactly the right cable television networks that will make a real impact for his new campaign."
About Reed's, Inc.
Reed's, Inc. makes the top-selling natural sodas in the natural foods industry and is sold in over 15,000 natural and mainstream supermarkets nationwide. In addition, Reed's products are sold through specialty gourmet, natural food stores, retail stores, convenience stores and restaurants nationwide and select international markets. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. The Company owns the top-selling root beer line in natural foods, the Virgil's Root Beer product line, and a top-selling cola line in natural foods, the China Cola product line. In 2012, the Company launched Reed's Culture Club Kombucha line of organic live beverages. Other product lines include: Reed's Ginger Candies and Reed's Ginger Ice Creams. The company is celebrating 25 years of hand crafting the best sodas in the world, naturally, in 2014.
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