Borderlands Mexico: Cargo crime continues to disrupt Mexican transport sector
Borderlands Mexico is a weekly rundown of developments in the world of United States-Mexico cross-border trucking and trade. This week: Cargo crime continues to disrupt Mexican transport sector; Bulkmatic plans $250M intermodal terminal near Monterrey, Mexico; Automotive supplier announces $84M expansion in Mexico; and Amazon plans new delivery station in South Texas.
Cargo theft remains one of the biggest challenges affecting the trucking industry between Mexico and the United States, transportation stakeholders said.
Mexico's National Public Security System (SNSP) reported first-quarter cargo theft cases dropped 20% year over year to 1,636 compared to the same period in 2024.
SNSP's claim of a reduced number of cases has been disputed by the Mexican Association of Private Security and Satellite Industry Companies (AMESIS), which said there were more than 2,000 cargo thefts incidents in just the first two months of the year.'In robberies, we have one every 33 minutes … so we have a problem there,' Rodrigo Larracilla, secretary for AMESIS, told Reforma.
While the number of cargo thefts across Mexico in 2025 is disputed, SNSP said 81% of reported cases in the first quarter involved violence against drivers.
'Cargo theft continues to be one of the main problems affecting logistics chains in the country,' supply chain visibility firm Overhaul said in its 'Mexico: Q1-2025 Cargo Theft Report' released on Tuesday.
Overhaul said 77% of cargo theft incidents in the quarter took place in the central (61%) and western regions (25%) of the country.The central states of Mexico and Puebla each accounted for 19% of the total cargo theft cases in the quarter.
The states of Guanajuato, Hidalgo, Querétaro, San Luis Potosí and Veracruz all showed increases compared to the first quarter of 2024.
The three most stolen product types from trucks in the first quarter of 2025 were food and beverages (34%), building and industrial (10%), and auto parts (9%).
The auto parts category increased by 4% year over year, with the most stolen products being
transport cars, tires, and electrical auto parts, Overhaul said.
Cargo theft from trucks in transit was the main tactic used by criminals in the first quarter, accounting for 62.6% of the cases.
Theft from parked trucks was the second most common cargo crime, accounting for 36.8% of
the incidents. Most of these events occurred in high-risk areas for cargo theft such as rest areas or fueling stations.To protect cargo, Overhaul said transporters should use tracking and monitoring devices that provide real-time visibility into the location and status of loads.
'In this way, companies can take immediate action to address potential security threats,' Overhaul said.
Bulkmatic de Mexico recently began construction of a new intermodal terminal in the municipality of Pesquería, Mexico.
The terminal has an initial investment of $250 million and is expected to generate more than 2,300 jobs. Pesquería is on the northern outskirts of Monterrey.
The terminal will handle bulk materials, such as grain, along with food and beverages, plastics, chemicals, and energy, according to a news release. It is expected to begin operations in 2026.
Monterrey-based Bulkmatic de Mexico, founded in 1965, is a transportation and logistics company that operates 14 rail terminals connecting with more than 40 destinations in the country.
China-based Kingfa plans to invest $84 million to expand operations in San Luis Potosi, Mexico.
The investment includes building a manufacturing, research and development complex in the Logistik III Industrial Park in the municipality of Villa de Reyes.
The expansion, scheduled to be completed in 2027, will create 500 direct jobs and enhance the local production chain by attracting more suppliers, officials said.
Kingfa is a global supplier of plastic injection and molding parts for the automotive and consumer products industries. The company operates 20 manufacturing sites across China, India, the U.S., Europe, Malaysia, Mexico and Vietnam.
Amazon plans to build a 62,000-square-foot delivery station in Brownsville, Texas.
The facility will serve as a last-mile delivery hub, receiving packages from fulfillment and sorting centers for final delivery to the local area.
Construction began earlier this month, but officials did not provide a timeline for the facility's completion. The delivery station is expected to create about 100 jobs.
Amazon recently announced it will spend $4 billion to build more than 200 delivery stations by the end of 2026 to triple the size of its rural delivery network in order to speed up delivery times in more parts of the country.
The post Borderlands Mexico: Cargo crime continues to disrupt Mexican transport sector appeared first on FreightWaves.
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SANTA PAULA, Calif., June 09, 2025 (GLOBE NEWSWIRE) -- Calavo Growers, Inc. (Nasdaq-GS: CVGW), a global leader in sourcing, packing and distribution of fresh avocados, tomatoes, papayas and processing of guacamole and other avocado products, today reported its financial results for the second fiscal quarter and six-month period ended April 30, 2025. Second Quarter Financial Overview Total net sales were $190.5 million, a 3.3% increase from the prior year quarter. Fresh segment sales were $174.7 million, a 4.7% increase from the prior year quarter. Prepared segment sales were $15.9 million, a 9.9% decrease from the prior year quarter. Gross profit was $18.1 million, an 11.9% decrease from the prior year quarter. Fresh segment gross profit was $14.1 million, a 13.4% decrease from the prior year quarter. Prepared segment gross profit was $4.0 million, a 6.3% decrease from the prior year quarter. 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Fresh segment sales were $314.4 million, a 12.4% increase from the prior year period. Prepared segment sales were $30.5 million, a 5.4% decrease from the prior year period. Gross profit was $33.8 million, an 8.0% increase from the prior year period. Fresh segment gross profit was $26.2 million, a 15.6% increase from the prior year period. Prepared segment gross profit was $7.6 million, a 11.7% decrease from the prior year period. Selling general and administrative expenses were $20.6 million, a 22.3% decrease from the prior year period. Net income from continuing operations attributable to Calavo Growers, Inc. was $11.3 million, or $0.63 per diluted share, compared to a loss of $0.2 million, or $(0.01) per diluted share, in the prior year period. Adjusted net income rose to $13.1 million, or $0.73 per diluted share, compared to $7.7 million, or $0.43 per diluted share. Adjusted EBITDA was $20.7 million, compared to $16.9 million in the prior year period. Highlights for the Six-Month Period Ended April 30, 2025 Fresh segment growth was driven by favorable pricing that more than offset lower avocado volume, despite a $0.9 million negative impact from tariffs described above, primarily related to avocados sourced from Mexico, during the quarter. Prepared segment sales declines were driven by decreases in volume and average selling price. Overall gross profit expansion was driven by improved gross profit per carton in the Fresh segment. Prepared segment gross profit declined primarily due to both lower sales volume and higher fruit costs. Selling general and administrative expenses declined primarily due to reduced professional fees, as well as lower headcount and lower severance costs in the current period. Management Commentary 'Our second fiscal quarter performance reflects the strength of our commercial strategy and disciplined operational execution amid continued volatility in the avocado market. Revenue grew year-over-year, driven by strong pricing performance,' said Lee Cole, President and Chief Executive Officer of Calavo Growers, Inc. Gross profit per avocado carton improved year-over-year, reflecting our disciplined pricing strategy and strong supply chain execution. Total gross profit declined, however, largely due to lower volumes in both tomatoes and avocados. The most pronounced year-over-year impact came from our tomato business, where gross profit declined sharply due to a substantial decrease in average selling price and volume. This was primarily the result of adverse weather in the Northeast and Midwest, which significantly dampened U.S. demand, coupled with abundant domestic supply that pressured pricing and reduced the need for imported product. In avocados, reduced volume stemmed from a combination of elevated prices, driven primarily by constrained supply out of Mexico, and USDA inspection delays. Cold weather in February and trade policy uncertainty in March further affected demand patterns. Looking ahead, we anticipate strong momentum in our Prepared segment during the second half of the year, supported by volume growth from new customer wins and expanded programs with existing accounts. While segment results declined year-over-year in the first half, we believe current initiatives will drive meaningful contribution growth beginning in the third quarter. We also expect continued strength from the California avocado season and remain confident in our ability to maintain pricing power while expanding customer reach. Our fundamentals are solid, our teams are aligned, and we're excited about the opportunities ahead. Second Quarter 2025 Consolidated Financial Review for Continuing Operations Total net sales for the second quarter of 2025 were $190.5 million, compared to $184.4 million for the second quarter of 2024, representing a 3.3% increase. 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Fresh segment gross profit declined 13.4% to $14.1 million, primarily reflecting lower avocado volume, while Prepared segment gross profit decreased 6.3% to $4.0 million, primarily driven by lower prepared volume. Selling general and administrative expenses for the second quarter totaled $10.3 million, or 5.4% of net sales, compared to $13.0 million, or 7.1% of net sales in the same period last year, representing a $2.7 million, or 20.9%, reduction. The decrease reflects lower compensation, severance, and professional fees. Six-Month 2025 Consolidated Financial Review for Continuing Operations Total net sales for the six months ended April 30, 2025, were $344.9 million, compared to $312.0 million for the same period in 2024, representing a 10.6% increase. Fresh segment sales increased $34.7 million, or 12.4%, primarily driven by a 35.6% increase in average price per carton, partially offset by a 10.7% decline in volume. Prepared segment sales decreased $1.7 million, or 5.4%, primarily due to a 2.3% decline in volume and a 3.1% decrease in average selling price. Gross profit for the six-month period was $33.8 million, or 9.8% of net sales, compared to $31.3 million and 10.0% of net sales in the same period last year. Fresh segment gross profit increased 15.6% to $26.2 million, primarily supported by favorable avocado pricing and improved cost control. Tomato gross profit, however, decreased reflecting both lower volume and modestly reduced average selling prices. Tomato demand was pressured by adverse weather conditions and abundant domestic supply, which limited import opportunities and compressed margins during the second quarter. Prepared segment gross profit decreased 11.7% to $7.6 million, driven by lower sales volume and compressed margins resulting from higher input costs. Selling, general and administrative expenses for the first half of 2025 totaled $20.6 million, or 6.0% of net sales, compared to $26.5 million, or 8.5% of net sales in the prior year period, representing a $5.9 million, or 22.3%, reduction. The decrease was primarily due to reduced professional fees, as well as headcount and severance costs. Net income from continuing operations attributable to Calavo Growers, Inc for the six-month period was $11.3 million, or $0.63 per diluted share, compared to a loss of $0.2 million, or $(0.01) per diluted share, in the same period last year. Adjusted net income was $13.1 million, or $0.73 per diluted share, compared to $7.7 million, or $0.43 per diluted share, in the prior-year period. Adjusted EBITDA was $20.7 million, compared to $17.2 million in the prior year period. Balance Sheet and LiquidityWe ended the second quarter with cash and cash equivalents of $60.4 million and $119.8 million in available liquidity. We had no borrowings under our credit facility and had total debt of $4.7 million consisting of other long-term obligations and finance leases as of April 30, 2025. Non-GAAP Financial MeasuresThis press release includes non-GAAP measures EBITDA, adjusted EBITDA, adjusted net income (loss) and adjusted net income (loss) per diluted share, which are not prepared in accordance with U.S. generally accepted accounting principles, or 'GAAP.' EBITDA is defined as net income (loss) from continuing operations attributable to Calavo Growers, Inc. excluding (1) interest income and expense, (2) income tax (benefit) provision, (3) depreciation and amortization and (4) stock-based compensation expense. Adjusted EBITDA is EBITDA with further adjustments for (1) acquisition-related costs, (2) restructuring-related costs, including certain severance costs, (3) certain litigation, internal investigation and other related costs, (4) foreign currency gain (loss) and, (5) asset impairments, (6) impact of discrete tariff or other tax charges that are distortive to results, and (7) one-time items. We believe adjusted EBITDA affords investors a different view of the overall financial performance of the Company than adjusted net income (loss) and the GAAP measure of net income (loss) from continuing operations. The adjustments to calculate EBITDA and adjusted EBITDA are items recognized and recorded under GAAP in particular periods but might be viewed as not necessarily coinciding with the underlying business operations for the periods in which they are so recognized and recorded. Adjusted net income (loss) is defined as net income (loss) from continuing operations attributable to Calavo Growers, Inc. excluding (1) acquisition-related costs, (2) restructuring-related costs, including certain severance costs, (3) certain litigation, internal investigation and other related costs, (4) foreign currency loss (gain) (5) asset impairments, (6) impact of discrete tariff or other tax charges that are distortive to results, and (7) one-time items. Adjusted net income (loss) and the related measure of adjusted net income (loss) per diluted share exclude certain items that are recognized and recorded under GAAP in particular periods but might be viewed as not necessarily coinciding with the underlying business operations for the periods in which they are so recognized and recorded. We believe adjusted net income (loss) affords investors a different view of the overall financial performance of the Company than adjusted EBITDA and the GAAP measure of net income (loss) from continuing operations. Reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the financial tables below. Items are considered one-time in nature if they are non-recurring, infrequent or unusual and have not occurred in the past two years or are not expected to recur in the next two years, in accordance with SEC rules. Non-GAAP information should be considered as supplemental in nature and not as a substitute for, or superior to, any measure of performance prepared in accordance with GAAP. None of these metrics are presented as measures of liquidity. The way the Company measures EBITDA, adjusted EBITDA and adjusted net income (loss) may not be comparable to similarly titled measures presented by other companies and may not be identical to corresponding measures used in Company agreements. About Calavo Growers, Growers, Inc. (Nasdaq: CVGW) is a global leader in the processing and distribution of avocados, tomatoes, papayas and guacamole. Calavo products are sold under the trusted Calavo brand name, proprietary sub-brands, private label and store brands. Founded in 1924, Calavo has a rich culture of innovation, sustainable practices and market growth. The Company serves retail grocery, foodservice, club stores, mass merchandisers, food distributors and wholesalers worldwide. Calavo is headquartered in Santa Paula, California, with facilities throughout the U.S. and Mexico. Learn more about The Family of Fresh™ at Safe Harbor StatementThis press release contains statements relating to future events and results of Calavo (including financial projections and business trends) that are 'forward-looking statements,' as defined in the Private Securities Litigation Reform Act of 1995, that involve risks, uncertainties, and assumptions. These statements are based on our current expectations and are not promises or guarantees. If any of the risks or uncertainties materialize or the assumptions prove incorrect, the results of Calavo may differ materially from those expressed or implied by such forward-looking statements and assumptions. The use of words such as 'anticipates,' 'estimates,' 'expects,' 'projects,' 'intends,' 'plans' and 'believes,' among others, generally identify forward-looking statements. All statements, other than statements of historical fact, are statements that could be deemed forward-looking statements, including, but not limited to, any projections of revenue, gross profit, expenses, income/(loss) from unconsolidated entities, earnings, earnings per share, tax provisions, cash flows and currency exchange rates; the impact of acquisitions or debt or equity investments or other financial items; any statements of the plans, strategies and objectives of management for future operations, including execution of restructuring and integration (including information technology systems integration) plans; any statements regarding current or future macroeconomic trends or events and the impact of those trends and events on Calavo and its financial performance; statements regarding pending internal or external investigations, legal claims or tax disputes; and any statements of expectation or belief; any statements about future risks associated with doing business internationally (including possible restrictive U.S. and foreign governmental actions, such as restrictions on transfers of funds, restrictions as a result of trade protection measures such as import/export/customs duties, tariffs and/or quotas). Risks and uncertainties that may cause our actual results to be materially different from any future results expressed or implied by the forward-looking statements include, but are not limited to, the following: the ability of our management team to work together successfully; the impact of weather on market conditions; seasonality of our business; sensitivity of our business to changes in market prices of avocados and other agricultural products and other raw materials including fuel, packaging and paper; changes or actions associated with USDA-APHIS and the Mexican Secretary of Agriculture, Secretariat of Agriculture and Rural Development (SADER) phytosanitary regulations (certification regulation for the importation of Hass avocados to the United States); potential disruptions to our supply chain; risks associated with potential future acquisitions, including integration; potential exposure to data breaches and other cyber-attacks on our systems or those of our suppliers or customers; dependence on large customers; dependence on key personnel and access to labor necessary for us to render services; susceptibility to wage inflation; potential for labor disputes; reliance on co-packers for a portion of our production needs; competitive pressures, including from foreign growers; risks of recalls and food-related injuries to our customers; changing consumer preferences; the impact of environmental regulations, including those related to climate change; risks associated with the environment and climate change, especially as they may affect our sources of supply; our ability to develop and transition new products and services and enhance existing products and services to meet customer needs, including but not limited to the new guacamole products referenced in this press release; risks associated with doing business internationally (including possible non-compliance with U.S. and foreign laws applicable to international trade and dealings and possible restrictive U.S. and foreign governmental actions, such as restrictions on transfers of funds and trade protection measures such as import/export/customs duties, tariffs and/or quotas and currency fluctuations); risks associated with receivables from, loans to and/or equity investments in unconsolidated entities; volatility in the value of our common stock; the impact of macroeconomic trends and events; the effects of increased interest rates on our cost of borrowing and consumer purchasing behavior; the resolution of pending internal and external investigations, legal claims and tax disputes, including an assessment imposed by the Mexican Tax Administrative Service (the 'SAT') and our defenses against collection activities commenced by the SAT; and our ability to realize the expected expense savings from the sale of the Fresh Cut business. For further discussion of these risks and uncertainties and other risks and uncertainties that we face, please see the risk factors described in our most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission and any subsequent updates that may be contained in our Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Forward-looking statements contained in this press release are made only as of the date of this press release, and we undertake no obligation to update or revise the forward-looking statements, whether because of new information, future events or otherwise. Investor Contact Jeremy AppleSenior Vice PresidentFinancial Profiles, Inc. calavo@ CALAVO GROWERS, CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands) April 30, October 31, 2025 2024 Assets Current assets: Cash and cash equivalents $ 60,361 $ 57,031 Accounts receivable, net of allowances of $3,399 (2025) and $3,624 (2024) 57,603 41,909 Inventories 41,625 34,157 Prepaid expenses and other current assets 9,457 9,976 Advances to suppliers 10,277 14,570 Income taxes receivable 936 936 Total current assets 180,259 158,579 Property, plant, and equipment, net 51,058 54,200 Operating lease right-of-use assets 17,610 18,316 Investments in unconsolidated entities 3,004 2,424 Deferred income tax assets 7,473 7,473 Goodwill 10,211 10,211 Other assets 51,838 49,916 $ 321,453 $ 301,119 Liabilities and shareholders' equity Current liabilities: Payable to growers $ 48,568 $ 18,377 Trade accounts payable 6,808 8,742 Accrued expenses 17,491 28,149 Income tax payable 2,002 2,767 Other current liabilities 11,000 11,000 Current portion of operating leases 3,466 3,296 Current portion of finance leases 836 874 Total current liabilities 90,171 73,205 Long-term liabilities: Long-term portion of operating leases 16,466 17,476 Long-term portion of finance leases 3,873 4,274 Other long-term liabilities 4,384 4,388 Total long-term liabilities 24,723 26,138 Commitments and contingencies Shareholders' equity: Common stock ($0.001 par value, 100,000 shares authorized; 17,841 (2025) and 17,802 (2024) shares issued and outstanding) 18 18 Additional paid-in capital 178,522 177,973 Noncontrolling interest 1,554 1,444 Retained earnings 26,465 22,341 Total shareholders' equity 206,559 201,776 $ 321,453 $ 301,119 CALAVO GROWERS, CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)(in thousands, except per share amounts) Three months ended Six months ended April 30, April 30, 2025 2024 2025 2024 Net sales $ 190,546 $ 184,383 $ 344,931 $ 311,989 Cost of sales 172,457 163,845 311,114 280,691 Gross profit 18,089 20,538 33,817 31,298 Selling, general and administrative 10,303 13,020 20,590 26,483 Expenses related to Mexican tax matters 156 202 551 585 Operating income 7,630 7,316 12,676 4,230 Foreign currency (loss) gain 957 (181 ) (5 ) 1,527 Interest income 762 — 1,607 — Interest expense (204 ) (962 ) (417 ) (1,786 ) Other income, net 613 520 725 720 Income before income taxes and net income (loss) from unconsolidated entities 9,758 6,693 14,586 4,691 Income tax expense (2,536 ) (390 ) (3,791 ) (963 ) Net income (loss) from unconsolidated entities (282 ) 204 580 205 Net income from continuing operations 6,940 6,507 11,375 3,933 Net loss from discontinued operations — (408 ) — (4,091 ) Net income (loss) 6,940 6,099 11,375 (158 ) Less: Net income attributable to noncontrolling interest (90 ) (37 ) (110 ) (47 ) Net income (loss) attributable to Calavo Growers, Inc. $ 6,850 $ 6,062 $ 11,265 $ (205 ) Calavo Growers, Inc.'s net income (loss) per share: Basic Continuing Operations $ 0.38 $ 0.36 $ 0.63 $ 0.22 Discontinued Operations $ — $ (0.02 ) $ — $ (0.23 ) Net income (loss) attributable to Calavo Growers, Inc $ 0.38 $ 0.34 $ 0.63 $ (0.01 ) Diluted Continuing Operations $ 0.38 $ 0.36 $ 0.63 $ 0.22 Discontinued Operations $ — $ (0.02 ) $ — $ (0.23 ) Net income (loss) attributable to Calavo Growers, Inc $ 0.38 $ 0.34 $ 0.63 $ (0.01 ) Number of shares used in per share computation: Basic 17,815 17,800 17,841 17,800 Diluted 17,828 17,872 17,903 17,866 CALAVO GROWERS, SALES AND GROSS PROFIT BY BUSINESS SEGMENT (UNAUDITED)(in thousands) Fresh Prepared Total (All amounts are presented in thousands) Three months ended April 30, 2025 Net sales $ 174,661 $ 15,885 $ 190,546 Cost of sales 160,608 11,849 172,457 Gross profit $ 14,053 $ 4,036 $ 18,089 Three months ended April 30, 2024 Net sales $ 166,755 $ 17,628 $ 184,383 Cost of sales 150,525 13,320 163,845 Gross profit $ 16,230 $ 4,308 $ 20,538 Fresh Prepared Total (All amounts are presented in thousands) Six months ended April 30, 2025 Net sales $ 314,456 $ 30,475 $ 344,931 Cost of sales 288,266 22,848 311,114 Gross profit $ 26,190 $ 7,627 $ 33,817 Six months ended April 30, 2024 Net sales $ 279,781 $ 32,208 $ 311,989 Cost of sales 257,121 23,570 280,691 Gross profit $ 22,660 $ 8,638 $ 31,298 CALAVO GROWERS, OF ADJUSTED NET INCOME AND ADJUSTED NET INCOME PER DILUTED SHARE (UNAUDITED)(in thousands, except per share amounts) The following table presents adjusted net income (loss) and adjusted net income (loss) per diluted share, each a non-GAAP measure, and reconciles them to net income (loss) attributable to Calavo Growers, Inc., and Diluted EPS, which are the most directly comparable GAAP measures. During the first quarter of fiscal 2025, we modified our calculation of Adjusted Net Income and Adjusted EBITDA to remove income (loss) from unconsolidated entities from excluded items. Management believes this change enhances comparability with industry peers and provides a clearer representation of our core operating performance. Prior-period amounts have been recast for comparability where applicable. This adjustment does not impact previously reported GAAP financial results. See 'Non-GAAP Financial Measures' earlier in this release. Three months ended April 30, Six months ended April 30, 2025 2024 2025 2024 Net income from continuing operations $ 6,940 $ 6,507 $ 11,375 $ 3,933 Less: Net income attributable to noncontrolling interest (90 ) (37 ) (110 ) (47 ) Net income from continuing operations attributable to Calavo Growers, Inc. 6,850 6,470 11,265 3,886 Non-GAAP adjustments: Restructure costs - consulting, management recruiting and severance (a) — 550 — 1,037 Expenses related to Mexican tax matters (b) 156 202 551 585 Professional fees related to internal investigation and legal settlement and related expenses (c) 248 2,656 925 5,036 Foreign currency loss (gain) (d) (957 ) 181 5 (1,527 ) Tariffs (e) 941 — 941 — Tax impact of adjustments (f) (101 ) (936 ) (630 ) (1,334 ) Adjusted net income from continuing operations $ 7,137 $ 9,123 $ 13,057 $ 7,683 Calavo Growers, Inc.'s continuing operations per share: Diluted EPS from continuing operations (GAAP) $ 0.38 $ 0.34 $ 0.63 $ (0.01 ) Adjusted net income from continuing operations per diluted share $ 0.40 $ 0.51 $ 0.73 $ 0.43 Number of shares used in per share computation: Diluted 17,828 17,872 17,903 17,866 ________________________________(a) For the three months ended April 30, 2024, we incurred $0.6 million in severance and other costs related to the departure of certain members of management. For the six months ended April 30, 2024, we incurred $0.9 million in severance and other costs and $0.1 million in stock-based compensation related to the departure of certain members of management.(b) For the three months ended April 30, 2025 and 2024, we incurred $0.2 million of professional fees related to the Mexican tax matters. For the six months ended April 30, 2025 and 2024, we incurred $0.6 million of professional fees related to the Mexican tax matters.(c) For the three months ended April 30, 2025 and 2024, we incurred $0.2 million and $2.7 million of professional fee expenses related to the FCPA investigation in Mexico. For the six months ended April 30, 2025 and 2024, we incurred $0.9 million and $5.0 million of professional fee expenses related to the FCPA investigation in Mexico.(d) Foreign currency remeasurement gains, net of losses, were $1.0 million and $0 for the three- and six-month periods ended April 30, 2025, compared to a net loss of $0.2 million for the three-month period ended April 30, 2024 and a net gain of $1.5 million for the six-month periods ended April 30, 2024.(e) For the three and six months ended April 30, 2025, we incurred $0.9 million in costs for tariffs that were levied primarily on United States-Mexico-Canada Agreement (USMCA)-compliant goods sourced from Mexico over a three-day period (March 4, 2025 through March 6, 2025) before being lifted. Because of the abrupt and unanticipated nature of this discrete event, we were unable to pass the added cost on to customers and we believe this expense was distortive to our results for the periods ended April 30, 2025. This amount represents only the expense of this discrete 3-day tariff event and does not include other tariffs paid by the Company during the reported periods.(f) Tax impact of non-GAAP adjustments are based on effective year-to-date tax GROWERS, OF EBITDA AND ADJUSTED EBITDA (UNAUDITED)(in thousands) The following table presents EBITDA and adjusted EBITDA, each a non-GAAP measure, and reconciles them to net income (loss) attributable to Calavo Growers, Inc., which is the most directly comparable GAAP measure. During the first quarter of fiscal 2025, we modified our calculation of Adjusted Net Income and Adjusted EBITDA to remove income (loss) from unconsolidated entities from excluded items. Management believes this change enhances comparability with industry peers and provides a clearer representation of our core operating performance. Prior-period amounts have been recast for comparability where applicable. This adjustment does not impact previously reported GAAP financial results. See 'Non-GAAP Financial Measures' earlier in this release. Three months ended April 30, Six months ended April 30, 2025 2024 2025 2024 Net income from continuing operations $ 6,940 $ 6,507 $ 11,375 $ 3,933 Less: Net income attributable to noncontrolling interest (90 ) (37 ) (110 ) (47 ) Net income from continuing operations attributable to Calavo Growers, Inc. 6,850 6,470 11,265 3,886 Interest Income (762 ) (115 ) (1,607 ) (240 ) Interest Expense 204 962 417 1,786 Provision for Income Taxes 2,536 390 3,791 963 Depreciation and Amortization 1,859 2,078 3,801 4,110 Stock-Based Compensation 323 456 595 1,348 EBITDA from continuing operations $ 11,010 $ 10,241 $ 18,262 $ 11,853 Adjustments: Restructure costs - consulting, management recruiting and severance (a) — 480 — 967 Expenses related to Mexican tax matters (b) 156 202 551 585 Professional fees related to internal investigation and legal settlement and related expenses (c) 248 2,656 925 5,036 Foreign currency loss (gain) (d) (957 ) 181 5 (1,527 ) Tariffs (e) 941 — 941 — Adjusted EBITDA from continuing operations $ 11,398 $ 13,760 $ 20,684 $ 16,914 ________________________________See prior page for footnote referencesSign in to access your portfolio
