Calavo Growers (CVGW) 10-Q1 Sep 222022 Q3 Quarterly reportFinancial data

Company Profile

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Jul. 31, 2022	Aug. 31, 2022
Document and Entity Information
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jul. 31, 2022
Document Transition Report	false
Entity File Number	000-33385
Entity Registrant Name	CALAVO GROWERS, INC
Entity Incorporation, State or Country Code	CA
Entity Tax Identification Number	33-0945304
Entity Address, Address Line One	1141-A Cummings Road
Entity Address, City or Town	Santa Paula
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	93060
City Area Code	805
Local Phone Number	525-1245
Title of 12(b) Security	Common Stock, $0.001 par value per share
Trading Symbol	CVGW
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		17,731,661
Entity Central Index Key	0001133470
Current Fiscal Year End Date	--10-31
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED CONDENSED BALANCE

CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 31, 2022	Oct. 31, 2021
Current assets:
Cash and cash equivalents	$ 2,505	$ 1,885
Restricted cash	961	970
Accounts receivable, net of allowances of $4,429 (2022) and $4,816 (2021)	78,490	78,866
Inventories	36,073	40,757
Prepaid expenses and other current assets	9,216	11,946
Advances to suppliers	12,698	6,693
Income taxes receivable	8,502	11,524
Total current assets	148,445	152,641
Property, plant, and equipment, net	114,481	118,280
Operating lease right-of-use assets	55,838	59,842
Investment in Limoneira Company	21,251	27,055
Investments in unconsolidated entities	3,533	4,346
Deferred income taxes	5,316	5,316
Goodwill	28,653	28,653
Intangibles, net	7,587	8,769
Other assets	45,421	40,500
Total assets	430,525	445,402
Current liabilities:
Payable to growers	35,748	23,033
Trade accounts payable	11,551	9,794
Accrued expenses	51,672	42,063
Dividend payable		20,330
Other current liabilities	11,000	11,000
Current portion of operating leases	6,966	6,817
Current portion of long-term obligations and finance leases	1,517	1,587
Total current liabilities	118,454	114,624
Long-term liabilities:
Borrowings pursuant to credit facilities, long-term	25,600	37,700
Long-term operating leases, less current portion	53,437	57,561
Long-term obligations and finance leases, less current portion	4,280	5,553
Other long-term liabilities	2,915	3,081
Total long-term liabilities	86,232	103,895
Commitments and contingencies
Shareholders' equity:
Common stock ($0.001 par value, 100,000 shares authorized; 17,732 and 17,686 shares issued and outstanding as of July 31, 2022 and October 31, 2021, respectively)	18	18
Additional paid-in capital	170,208	168,133
Noncontrolling interest	1,183	1,368
Retained earnings	54,430	57,364
Total shareholders' equity	225,839	226,883
Total liabilities and shareholders' equity	$ 430,525	$ 445,402

CONSOLIDATED CONDENSED BALANC_2

CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jul. 31, 2022	Oct. 31, 2021
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)
Allowances of accounts receivable	$ 4,429	$ 4,816
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	100,000	100,000
Common stock, shares issued	17,732	17,686
Common stock, shares outstanding	17,732	17,686

CONSOLIDATED CONDENSED STATEMEN

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Jul. 31, 2021	Jul. 31, 2022	Jul. 31, 2021
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED)
Net sales	$ 341,991	$ 285,008	$ 947,501	$ 782,407
Cost of sales	323,477	277,141	894,017	734,101
Gross profit	18,514	7,867	53,484	48,306
Selling, general and administrative	16,713	12,387	48,566	40,374
Expenses related to Mexican tax matters	303	1,342	1,148	1,342
Impairment and charges related to Florida facility closure			959
Gain on sale of Temecula packinghouse	(54)	(54)	(162)	(162)
Operating income (loss)	1,552	(5,808)	2,973	6,752
Interest expense	(485)	(208)	(1,272)	(573)
Other income, net	278	180	1,433	792
Recovery on reserve for FreshRealm note receivable		6,000		6,130
Unrealized net gain (loss) on Limoneira shares	1,225	(252)	(5,803)	6,843
Income (loss) before income taxes and loss from unconsolidated entities	2,570	(88)	(2,669)	19,944
Income tax benefit (provision)	(984)	(12,358)	363	(17,073)
Net loss from unconsolidated entities	(269)	(469)	(812)	(1,755)
Net income (loss)	1,317	(12,915)	(3,118)	1,116
Add: Net loss (income) attributable to noncontrolling interest	(17)	(66)	185	21
Net income (loss) attributable to Calavo Growers, Inc.	$ 1,300	$ (12,981)	$ (2,933)	$ 1,137
Calavo Growers, Inc.'s net income (loss) per share:
Basic (in dollars per shares)	$ 0.07	$ (0.74)	$ (0.17)	$ 0.06
Diluted (in dollars per shares)	$ 0.07	$ (0.74)	$ (0.17)	$ 0.06
Number of shares used in per share computation:
Basic	17,667	17,630	17,661	17,616
Diluted	17,769	17,630	17,661	17,669

CONSOLIDATED CONDENSED STATEM_2

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2022	Jul. 31, 2021
Cash Flows from Operating Activities:
Net income (loss)	$ (3,118)	$ 1,116
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	12,472	12,925
Non-cash operating lease expense	40	57
Net loss from unconsolidated entities	812	1,755
Unrealized net loss (gain) on Limoneira shares	5,803	(6,843)
Impairment and non-cash charges related to closure of Florida facility	317
Gain on reserve for FreshRealm note receivable and impairment of investment		(6,130)
Stock-based compensation expense	2,123	2,818
Gain on sale of Temecula packinghouse	(162)	(162)
Gain on disposal of property, plant, and equipment		(170)
Effect on cash of changes in operating assets and liabilities:
Accounts receivable, net	376	(16,137)
Inventories	4,594	(5,687)
Prepaid expenses and other current assets	(30)	2,291
Advances to suppliers	(4,945)	(3,642)
Income taxes receivable/payable	3,022	4,014
Other assets	(3,205)	(7,003)
Payable to growers	12,716	18,694
Trade accounts payable, accrued expenses and other liabilities	11,369	14,500
Net cash provided by operating activities	42,184	12,396
Cash Flows from Investing Activities:
Purchases of property, plant, and equipment	(7,738)	(9,639)
Loan to Agricola Belher		(3,500)
Recovery on reserve for FreshRealm note receivable		6,000
Infrastructure advance to tomato growers		(1,326)
Net cash used in investing activities	(7,738)	(8,465)
Cash Flows from Financing Activities:
Payment of dividend to shareholders	(20,330)	(20,343)
Proceeds from revolving credit facility	221,500	266,350
Payments on revolving credit facility	(233,600)	(250,900)
Payments of minimum withholding taxes on net share settlement of equity awards	(95)	(650)
Payments on long-term obligations and finance leases	(1,357)	(1,152)
Proceeds from stock option exercises	47	47
Net cash used in financing activities	(33,835)	(6,648)
Net increase (decrease) in cash, cash equivalents and restricted cash	611	(2,717)
Cash, cash equivalents and restricted cash, beginning of period	2,855	4,055
Cash, cash equivalents and restricted cash, end of period	3,466	1,338
Noncash Investing and Financing Activities:
Right of use assets obtained in exchange for new financing lease obligations		1,222
Settlement of Agricola Belher infrastructure advance offset against payable to growers	1,060
Property, plant, and equipment included in trade accounts payable and accrued expenses	$ 309	$ 375

CONSOLIDATED CONDENSED STATEM_3

CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Noncontrolling Interest	Total
Beginning balance at Oct. 31, 2020	$ 18	$ 165,000	$ 89,512	$ 1,472	$ 256,002
Beginning balance, shares at Oct. 31, 2020	17,661
Exercise of stock options and income tax benefit		47			47
Exercise of stock options and income tax benefit, shares	2
Payments of minimum withholding taxes on net share settlement of equity awards		(467)			(467)
Stock compensation expense		907			907
Restricted stock issued, shares	23
Avocados de Jalisco noncontrolling interest				(40)	(40)
Net income (loss) attributable to Calavo Growers, Inc.			5,277		5,277
Ending balance at Jan. 31, 2021	$ 18	165,487	94,789	1,432	261,726
Ending balance, shares at Jan. 31, 2021	17,686
Beginning balance at Oct. 31, 2020	$ 18	165,000	89,512	1,472	256,002
Beginning balance, shares at Oct. 31, 2020	17,661
Net income (loss) attributable to Calavo Growers, Inc.					1,137
Ending balance at Jul. 31, 2021	$ 18	167,215	90,649	1,451	259,333
Ending balance, shares at Jul. 31, 2021	17,683
Beginning balance at Jan. 31, 2021	$ 18	165,487	94,789	1,432	261,726
Beginning balance, shares at Jan. 31, 2021	17,686
Payments of minimum withholding taxes on net share settlement of equity awards		(135)			(135)
Payments of minimum withholding taxes on net share settlement of equity awards, shares	(2)
Stock compensation expense		1,357			1,357
Avocados de Jalisco noncontrolling interest				(47)	(47)
Net income (loss) attributable to Calavo Growers, Inc.			8,841		8,841
Ending balance at Apr. 30, 2021	$ 18	166,709	103,630	1,385	271,742
Ending balance, shares at Apr. 30, 2021	17,684
Payments of minimum withholding taxes on net share settlement of equity awards		(48)			(48)
Stock compensation expense		554			554
Restricted stock issued, shares	(1)
Avocados de Jalisco noncontrolling interest				66	66
Net income (loss) attributable to Calavo Growers, Inc.			(12,981)		(12,981)
Ending balance at Jul. 31, 2021	$ 18	167,215	90,649	1,451	259,333
Ending balance, shares at Jul. 31, 2021	17,683
Beginning balance at Oct. 31, 2021	$ 18	168,133	57,364	1,368	226,883
Beginning balance, shares at Oct. 31, 2021	17,686
Exercise of stock options and income tax benefit		47			47
Exercise of stock options and income tax benefit, shares	2
Payments of minimum withholding taxes on net share settlement of equity awards		(44)			(44)
Stock compensation expense		556			556
Restricted stock issued, shares	28
Avocados de Jalisco noncontrolling interest				(117)	(117)
Net income (loss) attributable to Calavo Growers, Inc.			(4,043)		(4,043)
Ending balance at Jan. 31, 2022	$ 18	168,692	53,321	1,251	223,282
Ending balance, shares at Jan. 31, 2022	17,716
Beginning balance at Oct. 31, 2021	$ 18	168,133	57,364	1,368	226,883
Beginning balance, shares at Oct. 31, 2021	17,686
Net income (loss) attributable to Calavo Growers, Inc.					(2,933)
Ending balance at Jul. 31, 2022	$ 18	170,208	54,430	1,183	225,839
Ending balance, shares at Jul. 31, 2022	17,732
Beginning balance at Jan. 31, 2022	$ 18	168,692	53,321	1,251	223,282
Beginning balance, shares at Jan. 31, 2022	17,716
Payments of minimum withholding taxes on net share settlement of equity awards		(51)			(51)
Stock compensation expense		812			812
Restricted stock issued, shares	26
Avocados de Jalisco noncontrolling interest				(85)	(85)
Net income (loss) attributable to Calavo Growers, Inc.			(191)		(191)
Ending balance at Apr. 30, 2022	$ 18	169,453	53,130	1,166	223,767
Ending balance, shares at Apr. 30, 2022	17,742
Stock compensation expense		755			755
Forfeitures of restricted stock issued, shares	(10)
Avocados de Jalisco noncontrolling interest				17	17
Net income (loss) attributable to Calavo Growers, Inc.			1,300		1,300
Ending balance at Jul. 31, 2022	$ 18	$ 170,208	$ 54,430	$ 1,183	$ 225,839
Ending balance, shares at Jul. 31, 2022	17,732

Description of the business

Description of the business	9 Months Ended
Description of the business	Jul. 31, 2022
Description of the business
Description of the business	1. Description of the business Business Calavo Growers, Inc. (referred to in this report as “Calavo”, the “Company”, “we’, “us” or “our”), is a global leader in the avocado industry and a provider of value-added fresh food. Our expertise in marketing and distributing avocados, prepared avocados, and other perishable foods allows us to deliver a wide array of fresh and prepared food products to retail grocery, foodservice, club stores, mass merchandisers, food distributors and wholesalers on a worldwide basis. We procure avocados from California, Mexico and other growing regions around the world. Through our various operating facilities, we (i) sort, pack, and/or ripen avocados, tomatoes and/or Hawaiian grown papayas, (ii) create, process and package a portfolio of healthy fresh foods including fresh-cut fruit and vegetables, and prepared foods and (iii) process and package guacamole and salsa. We distribute our products both domestically and internationally and beginning in the third quarter of fiscal 2022 we report our operations in different business segments: Grown and Prepared. The accompanying unaudited consolidated condensed financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, the accompanying unaudited consolidated condensed financial statements contain all adjustments, consisting of adjustments of a normal recurring nature necessary to present fairly the Company’s financial position, results of operations and cash flows. The results of operations for interim periods are not necessarily indicative of the results that may be expected for a full year. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes," which amends and simplifies the accounting for income taxes by removing certain exceptions and providing new guidance to reduce complexity in certain aspects of the current guidance. This guidance was adopted by the Company during the first quarter of 2022 and did not impact the Company’s financial statements or related disclosures .

Information regarding our opera

Information regarding our operations in different segments	9 Months Ended
Information regarding our operations in different segments	Jul. 31, 2022
Information regarding our operations in different segments
Information regarding our operations in different segments	2. Information regarding our operations in different segments On April 13, 2022, the Company issued a press release announcing its plans to reorganize the business into two reporting segments, Grown and Prepared. The management transition to operate as Grown and Prepared began at the start of the third quarter of 2022. The Grown segment consists of fresh avocados, tomatoes and papayas. The Prepared segment comprises all other products including fresh cut fruits and vegetables, ready-to-eat sandwiches, wraps, salads and snacks, guacamole, and salsa sold at retail and food service as well as avocado pulp sold to foodservice. As a result of the Company's operating segment realignment, the composition of its reporting units for the evaluation of goodwill impairment was changed. RFG reporting unit goodwill is now included within the Prepared reporting unit. Therefore, the goodwill of $24.7 million, which was previously recorded within the RFG reporting unit, is now within Prepared and the goodwill previously reported as part of the Fresh segment remained unchanged in the amount of $4.0 million and is part of the Grown segment. Prior to the change in its reporting unit, the Company tested goodwill for impairment at the previous reporting unit, which did not result in any impairment charge. Goodwill impairment testing requires significant judgment and management estimates, including, but not limited to, the determination of (i) the number of reporting units, (ii) the goodwill and other assets and liabilities to be allocated to the reporting units and (iii) the fair values of the reporting units which includes forecasted cash flow. The fair value of the Company’s reporting units is determined using a combination of valuation techniques, including a discounted cash flow methodology. To corroborate the discounted cash flow analysis, a market approach is utilized using observable market data such as comparable companies in similar lines of business that are publicly traded. T business segments are presented based on how information is used by our Chief Executive Officer (our Chief Operating Decision Maker) to measure performance and allocate resources. Selling, general and administrative expenses, as well as other non-operating income/expense items, are evaluated by our Chief Executive Officer in the aggregate. We do not allocate assets, or specifically identify them, to our operating segments. Prior year information has been recast to conform with the new segment disclosures. The sales data in the following tables is presented in thousands: Three months ended July 31, 2022 Three months ended July 31, 2021 Grown Prepared Total Grown Prepared Total Avocados $ 196,443 $ — $ 196,443 $ 148,757 $ — $ 148,757 Tomatoes 8,990 — 8,990 11,344 — 11,344 Papayas 2,679 — 2,679 2,683 — 2,683 Other fresh income 54 — 54 95 — 95 Fresh-cut fruit — 59,159 59,159 — 58,703 58,703 Fresh-cut vegetables — 27,299 27,299 — 23,226 23,226 Prepared products — 31,083 31,083 — 25,917 25,917 Guacamole — 19,606 19,606 — 21,096 21,096 Salsa — 524 524 — 746 746 Total gross sales 208,166 137,671 345,837 162,879 129,688 292,567 Less sales allowances (577) (2,799) (3,376) (1,299) (5,588) (6,887) Less inter-company eliminations (470) — (470) (672) — (672) Net sales $ 207,119 $ 134,872 $ 341,991 $ 160,908 $ 124,100 $ 285,008 Nine months ended July 31, 2022 Nine months ended July 31, 2021 Grown Prepared Total Grown Prepared Total Avocados $ 538,882 $ — $ 538,882 $ 398,887 $ — $ 398,887 Tomatoes 36,331 — 36,331 33,963 — 33,963 Papayas 8,462 — 8,462 8,081 — 8,081 Other fresh income 87 — 87 548 — 548 Fresh-cut fruit — 151,361 151,361 — 149,652 149,652 Fresh-cut vegetables — 82,162 82,162 — 78,030 78,030 Prepared products — 83,281 83,281 — 68,425 68,425 Guacamole — 56,976 56,976 — 56,557 56,557 Salsa — 1,349 1,349 — 2,154 2,154 Total gross sales 583,762 375,129 958,891 441,479 354,818 796,297 Less sales allowances (2,591) (7,240) (9,831) (2,754) (9,221) (11,975) Less inter-company eliminations (1,559) — (1,559) (1,915) — (1,915) Net sales $ 579,612 $ 367,889 $ 947,501 $ 436,810 $ 345,597 $ 782,407 Interco. Grown Prepared Elimins. Total (All amounts are presented in thousands) Three months ended July 31, 2022 Net sales $ 207,589 $ 134,872 $ (470) $ 341,991 Cost of sales 195,818 128,129 (470) 323,477 Gross profit $ 11,771 $ 6,743 $ — $ 18,514 Three months ended July 31, 2021 Net sales $ 161,580 $ 124,100 $ (672) $ 285,008 Cost of sales 149,378 128,435 (672) 277,141 Gross profit $ 12,202 $ (4,335) $ — $ 7,867 Interco. Grown Prepared Elimins. Total (All amounts are presented in thousands) Nine months ended July 31, 2022 Net sales $ 581,171 $ 367,889 $ (1,559) $ 947,501 Cost of sales 539,577 355,999 (1,559) 894,017 Gross profit $ 41,594 $ 11,890 $ — $ 53,484 Nine months ended July 31, 2021 Net sales $ 438,725 $ 345,597 $ (1,915) $ 782,407 Cost of sales 398,370 337,646 (1,915) 734,101 Gross profit $ 40,355 $ 7,951 $ — $ 48,306 For the three months ended July 31, 2022 and 2021, intercompany sales and cost of sales of $0.5 million and $0.7 million between Grown products and Prepared products were eliminated. For the nine months ended July 31, 2022 and 2021, intercompany sales and cost of sales of $1.6 million and $1.9 million between Grown products and Prepared products were eliminated. Sales to customers outside the U.S. were approximately $6.1 million, and $8.8 million for the three months ended July 31, 2022 and 2021. Sales to customers outside the U.S. were approximately $21.5 million, and $25.7 million for the nine months ended July 31, 2022 and 2021. Our foreign operations in Mexico are subject to exchange rate fluctuations and foreign currency transaction costs. The functional currency of our foreign subsidiaries in Mexico is the United States dollar (U.S. dollar). As a result, monetary assets and liabilities are translated into U.S. dollars at exchange rates as of the balance sheet date and non-monetary assets, liabilities and equity are translated at historical rates. Sales and expenses are translated using a weighted-average exchange rate for the period. Gains and losses resulting from those remeasurements and foreign currency transactions are recognized within cost of sales. We recognized foreign currency remeasurement losses in the current quarter. These losses were due primarily to certain long-term net peso receivables. Foreign currency remeasurement losses, net of gains, for the three months ended July 31, 2022 was $0.4 million. Foreign currency remeasurement gains, net of losses, for the three months ended July 31, 2021 was $0.6 million. Foreign currency remeasurement losses, net of gains, for the nine months ended July 31, 2022 was $1.3 million. Foreign currency remeasurement gains, net of losses, for the nine months ended July 31, 2021 was $1.2 million. The net carrying value of long-lived assets attributed to geographic areas as of July 31, 2022 and October 31, 2021, are as follows (in thousands): United States Mexico Consolidated July 31, 2022 $ 78,087 $ 36,394 $ 114,481 October 31, 2021 $ 81,059 $ 37,221 $ 118,280

Inventories

Inventories	9 Months Ended
Inventories	Jul. 31, 2022
Inventories
Inventories	3. Inventories Inventories consist of the following (in thousands): July 31, October 31, 2022 2021 Fresh fruit $ 14,793 $ 17,648 Packing supplies and ingredients 14,621 13,088 Finished prepared foods 6,659 10,021 Total $ 36,073 $ 40,757 Inventories are stated at the lower of cost or net realizable value. We periodically review the value of items in inventory and record any necessary write downs of inventory based on our assessment of market conditions. Inventory includes reserves of million in slow moving and obsolete packing supply inventory as of July 31, 2022 and October 31, 2021.

Related party transactions

Related party transactions	9 Months Ended
Related party transactions	Jul. 31, 2022
Related party transactions
Related party transactions	4. Related party transactions Board of Directors Certain members of our Board of Directors market California avocados through Calavo pursuant to marketing agreements substantially similar to the marketing agreements that we enter into with other growers. For the three months ended July 31, 2022 and 2021, the aggregate amount of avocados procured from entities owned or controlled by members of our Board of Directors was $5.7 million and $10.4 million. For the nine months ended July 31, 2022 and 2021, the aggregate amount of avocados procured from entities owned or controlled by members of our Board of Directors was $7.3 million and $15.4 million. Amounts payable to these Board members were $2.0 million as of July 31, 2022. We did not have any amounts payable to these Board members as of October 31, 2021. Limoneira During the three months ended July 31, 2022 and 2021, we received $0.1 million as dividend income from Limoneira Company (Limoneira). During the nine months ended July 31, 2022 and 2021, we received $0.4 million and $0.3 million as dividend income from Limoneira. In addition, we lease office space from Limoneira for our corporate office. We paid rent expense to Limoneira totaling of Limoneira’s outstanding shares. In February 2022, Limoneira ended its marketing agreement with Calavo. Agricola Don Memo, S.A. de C.V. (“Don Memo”) Calavo and Agricola Belher (“Belher”) have an equal one -half ownership interest in Don Memo. Pursuant to a management service agreement, Belher, through its officers and employees, has day-to-day power and authority to manage the operations. As of July 31, 2022, and October 31, 2021, we had an investment of $3.5 million and $4.3 million, representing Calavo’s 50% ownership in Don Memo, which was included as an investment in unconsolidated entities on our balance sheet. We make advances to Don Memo for operating purposes, provide additional advances as shipments are made during the season, and return the proceeds from tomato sales under our marketing program to Don Memo, net of our commission and aforementioned advances. For the three months ended July 31, 2022, we advanced an additional $2.2 million of preseason advances to Don Memo. As of July 31, 2022 and October 31, 2021, we had outstanding advances of million secured by certain property and equipment of Don Memo. This infrastructure loan accrues interest at . In October 2020, we funded additional $0.7 million, and $0.6 million in the first, and second quarters of fiscal 2021, for a total outstanding balance at July 31, 2022 of $2.0 million ($0.4 million is included in prepaids and other current assets and $1.6 million in other assets). This infrastructure loan agreement will mature in fiscal 2024. During the three months ended July 31, 2022 and 2021, we incurred Belher We make advances to Belher for operating purposes, provide additional advances as shipments are made during the season, and return the proceeds from tomato sales under our marketing program to Belher, net of our commission and aforementioned advances. We had grower advances due from Belher totaling $3.5 million and $4.5 million as of July 31, 2022 and October 31, 2021, which are netted against the grower payable. In addition, we had infrastructure advances due from Belher of million as of July 31, 2022 and October 31, 2021. These infrastructure advances were recorded as a receivable in prepaid and other current assets as of July 31, 2022 and October 31, 2021. In July 2021, we made a bridge loan of million to Belher. This loan is secured by certain farmland in Mexico and accrues interest at million on July 31, 2024. As part of this amended loan agreement, we can withhold payments on both the infrastructure advances and the bridge loan through the netting against the grower payable due to Belher. For the three and nine months ended July 31, 2022, we withheld Avocados de Jalisco, S.A.P.I. de C.V. (“Avocados de Jalisco”) In August 2015, we entered into a Shareholder’s Agreement with various Mexican partners and created Avocados de Jalisco. Avocados de Jalisco is a Mexican corporation created to engage in procuring, packing and selling avocados. As of July 31, 2022, this entity was approximately owned by Calavo and was consolidated in our financial statements. Avocados de Jalisco built a packinghouse located in Jalisco, Mexico, which began operations in June of 2017. During the three months ended July 31, 2022 and 2021 we purchased approximately

Other assets and Intangibles

Other assets and Intangibles	9 Months Ended
Other assets and Intangibles	Jul. 31, 2022
Other assets and Intangibles
Other assets and Intangibles	5. Other assets and Intangibles Other assets consist of the following (in thousands): July 31, October 31, 2022 2021 Mexican IVA (i.e. value-added) taxes receivable (see note 11) $ 41,265 $ 37,493 Infrastructure advances to Agricola Belher 1,641 1,641 Bridge loan to Agricola Belher 1,700 — Other 815 1,366 Total $ 45,421 $ 40,500 Intangible assets consist of the following (in thousands): July 31, 2022 October 31, 2021 Weighted- Gross Net Gross Net Average Carrying Accum. Book Carrying Accum. Book Useful Life Value Amortization Value Value Amortization Value Customer list/relationships 7 years $ 17,340 $ (11,028) $ 6,312 $ 17,340 $ (9,989) $ 7,351 Trade names 11 years 4,060 (3,070) 990 4,060 (2,980) 1,080 Trade secrets/recipes 9 years 630 (620) 10 630 (567) 63 Brand name intangibles indefinite 275 — 275 275 — 275 Intangibles, net $ 22,305 $ (14,718) $ 7,587 $ 22,305 $ (13,536) $ 8,769 We anticipate recording amortization expense of $0.4 million for the remainder of fiscal 2022, $1.5 million for fiscal year 2023, $1.5 million for fiscal year 2024, $1.5 million for fiscal year 2025, and $2.4 million thereafter.

Stock-Based Compensation

Stock-Based Compensation	9 Months Ended
Stock-Based Compensation	Jul. 31, 2022
Stock-Based Compensation
Stock-Based Compensation	6. Stock-Based Compensation In April 2011, our shareholders approved the Calavo Growers, Inc. 2011 Management Incentive Plan (the “2011 Plan”). All directors, officers, employees and consultants (including prospective directors, officers, employees and consultants) of Calavo and its subsidiaries are eligible to receive awards under the 2011 Plan. Shares were issuable under the 2011 Plan through December 2020. On April 21, 2021, the shareholders of Calavo approved the Calavo Growers, Inc. 2020 Equity Incentive Plan (the “2020 Plan”). This is a Restricted Stock Awards On December 13, 2021, certain of our officers were granted a total of 5,355 restricted shares. These shares have full voting rights and participate in dividends as if unrestricted. The closing price of our stock on such date was . These shares vest over million for the three and nine months ended July 31, 2022. On January 3, 2022, all 10 of our current directors were granted 2,814 restricted shares each (for a total of 28,140 shares). These shares have full voting rights and participate in dividends as if unrestricted. The closing share price of our stock on such grant date was . As of January 3, 2023, these shares will vest and become unrestricted subject to the continued service of the director. The total recognized stock-based compensation expense for these grants was million for the three and nine months ended July 31, 2022. On January 20, 2022, one of our current directors was granted 1,500 unrestricted shares as a component of her compensation for services rendered during the 2021 fiscal year. The closing share price of our stock on such grant date was . The stock-based compensation expense for this grant was recognized in total upon grant and aggregated million for the nine months ended July 31, 2022. On February 1, 2022, Brian Kocher, our new Chief Executive Officer, was granted 28,993 restricted shares as part of his employment agreement. The closing share price of our stock on such grant date was . These shares will vest over million for the three months ended July 31, 2022. The total recognized stock-based compensation expense for this grant was million for the nine months ended July 31, 2022. A combined summary of restricted stock award activity, related to our 2011 and 2020 Plans, is as follows (in thousands, except for per share amounts): Weighted-Average Aggregate Number of Shares Grant Price Intrinsic Value Outstanding at October 31, 2021 43 $ 64.89 Vested (31) $ 45.44 Forfeited (9) $ 37.67 Granted 64 $ 41.88 Outstanding at July 31, 2022 67 $ 45.01 $ 2,672 The total recognized stock-based compensation expense for restricted stock was $0.4 million and $0.6 million for the three months ended July 31, 2022 and 2021. The total recognized stock-based compensation expense for restricted stock was million for the nine months ended July 31, 2022 and 2021. Total unrecognized stock-based compensation expense totaled Restricted Stock Units (RSUs) and Performance Restricted Stock Units (PRSUs) On April 1, 2022, we issued RSUs for officers and other members of management as part of our long-term incentive plan. The RSUs are time-based and vest annually in equal amounts over a three-year period. The PRSUs are based on three-year cumulative performance targets of net sales, adjusted EBITDA and return on invested capital and vest entirely at the third anniversary. We granted 34,269 RSUs and 34,269 PRSUs at a grant stock price of $37.49 . With the departure of our former Chief Financial Officer, shares each of RSUs and PRSUs were forfeited. Based on our current projections, we recognized approximately million of stock-based compensation for the three and nine months ended July 31, 2022. As of July 31, 2022, there was years. The total fair value of the restricted stock units at July 31, 2022, is approximately In the third quarter of fiscal 2022, Shawn Munsell, our new Chief Financial Officer, and Danny Demas, our new SVP of Grown products were granted 9,002 RSUs and 3,533 RSUs, respectively, as part of their employment agreements. The closing share price of our stock on such grant dates were , respectively. These shares will vest over on an annual basis, with the first third vesting on June 20, 2023, and July 11, 2023, respectively. The total recognized stock-based compensation expense for this grant was insignificant for the three and nine months ended July 31, 2022. On August 16, 2022, Helen Kurtz, our new SVP of Prepared products, was granted 6,778 RSUs as part of her employment agreement. The closing share price of our stock on such grant date was . These shares will vest over A combined summary of RSU activity, related to our 2020 Plan, is as follows (in thousands, except for per share amounts): Number of Shares Weighted-Average Aggregate Represented Grant Price Intrinsic Value Outstanding at April 30, 2022 34 $ 37.49 Forfeited (4) $ 37.49 Granted 13 $ 39.89 Outstanding at July 31, 2022 43 $ 38.18 $ 1,724 Stock Options Stock options are granted with exercise prices of not less than the fair market value at grant date, generally vest over one two after the vest date. We settle stock option exercises with newly issued shares of common stock. We measure compensation cost for all stock-based awards at fair value on the date of grant and recognize compensation expense in our consolidated statements of operations over the service period that the awards are expected to vest. We measure the fair value of our stock-based compensation awards on the date of grant. A summary of stock option activity, related to our 2011 and 2020 Plans, is as follows (in thousands, except for weighted-average exercise price): Weighted-Average Aggregate Exercise Intrinsic Number of Shares Price Value Outstanding at October 31, 2021 19 $ 42.89 Exercised (2) $ 23.48 Outstanding at July 31, 2022 17 $ 47.62 $ — Exercisable at July 31, 2022 12 $ 51.12 $ — At July 31, 2022, outstanding and exercisable stock options had a weighted-average remaining contractual term of 2.7 years. The total recognized and unrecognized stock-based compensation expense was insignificant for the three and nine months ended July 31, 2022 and 2021.

Other events

Other events	9 Months Ended
Other events	Jul. 31, 2022
Other events
Other events	7. Other events Dividend payment On December 3, 2021, we paid a $1.15 per share dividend in the aggregate amount of $20.3 million to shareholders of record on November 12, 2021. Litigation From time to time, we are involved in litigation arising in the ordinary course of our business that we do not believe will have a material adverse impact on our financial statements. Mexico tax audits We conduct business both domestically and internationally and, as a result, one or more of our subsidiaries files income tax returns in U.S. federal, U.S. state and certain foreign jurisdictions. Accordingly, in the normal course of business, we are subject to examination by taxing authorities, primarily in Mexico and the United States. 2011 Assessment On June 16, 2021 Calavo reached a settlement agreement with the Ministry of Finance and Administration of the government of the State of Michoacan, Mexico (MFM) regarding a 2011 Assessment of approximately $2.2 billion Mexican pesos related to income tax, flat rate business tax and value added tax. Calavo agreed to pay approximately $47.8 million Mexican pesos (approximately $2.4 million USD) as a full and final settlement of all taxes, fines, and penalties. 2013 Assessment In January 2017, we received preliminary observations from the Servicio de Administracion Tributaria in Mexico (the “SAT”) related to an audit for fiscal year 2013 outlining certain proposed adjustments primarily related to intercompany funding, deductions for services from certain vendors/suppliers and IVA. We provided a written rebuttal to these preliminary observations during our second fiscal quarter of 2017. During the period from our third fiscal quarter of 2017 through our third fiscal quarter of 2018, we attempted to resolve our case with the SAT through the conclusive agreement submitted before PRODECON (Mexican Tax Ombudsman), having several working meetings attended by representatives of the SAT, Calavo de Mexico (CDM) and the PRODECON. However, we were unable to materially resolve our case with the SAT through the PRODECON process. As a result, in July 2018, the SAT’s local office in Uruapan issued to CDM a final tax assessment (the “2013 Assessment”) totaling approximately $2.6 billion Mexican pesos (which includes annual adjustments for inflation, and equals approximately $127.6 million USD at July 31, 2022) related to Income Tax, Flat Rate Business Tax, and value added tax, related to this fiscal 2013 tax audit. This amount has been adjusted for inflation as of July 31, 2022 to the amount of $3.08 billion Mexican pesos (approx. $151.1 million USD). Additionally, the tax authorities have determined that we owe our employees profit-sharing liability, totaling approximately $118 million Mexican pesos (approx. $5.8 million USD at July 31, 2022). In August 2018, we filed an Administrative Appeal on the 2013 Assessment, appealing our case to the SAT’s central legal department in Michoacan. On June 25, 2021, we became aware that the Administrative Appeal had been resolved by the SAT against CDM on March 12, 2021, and that we had allegedly failed to timely respond to and challenge the SAT’s notification of such resolution, therefore rendering the 2013 Assessment as definitive. Consequently, the SAT placed liens on the fixed assets of CDM, with a net book value of approximately $26 million USD, and on bank accounts of CDM totaling approximately $1 million USD in order to guaranty the 2013 Assessment. Based on legal counsel from our tax advisory firm, we and our tax advisory firm have concluded that the March notification was not legally communicated. On August 18, 2021, we filed an Administrative Reconsideration (the Reconsideration) before the Central Legal Department of the SAT located in Mexico City, asserting that the resolution in March of the Administrative Appeal was wrongly concluded, in particular with respect to the following matters: o Failure to recognize CDM as a “maquiladora” o Considering the Company to have a permanent establishment in Mexico, o Including fruit purchase deposits transferred by the Company to CDM as taxable, o Application of 16% IVA tax to fruit purchase deposits; and o Imposing double-taxation on the fruit purchase transactions On August 20, 2021 we filed an Annulment Suit (the Annulment Suit) with the Federal Tax Court, which among other things, strongly contends that the notifications made by the SAT to CDM and its designated advisors of the resolution of the Administrative Appeal in March 2021 were not legally communicated. In addition, the Annulment Suit asserts the same matters central to the Reconsideration, as described above, as wrongly concluded in the resolution of the Administrative Appeal. On August 27, 2021, we filed a formal complaint, or queja On September 22, 2021, we had an initial in-person meeting with the SAT in Mexico City to formally present and discuss the Reconsideration. The SAT agreed to review our Reconsideration in more detail; however, on January 3, 2022, the SAT formally rejected our request for the Reconsideration. In response to this rejection, on January 21, 2022, we filed an injunction suit with a federal district court seeking to nullify the arguments against the Reconsideration made by the SAT on constitutional grounds. On February 4, 2022, we had a follow-up meeting with the SAT in Mexico City to begin a dialog with the objective of reaching a settlement of the 2013 Assessment. The SAT agreed in principle to continue this dialog, but requested that we provide a financial guaranty to secure the related tax as a pre-requisite to these discussions. On February 25, 2022, we filed an additional injunction in which we seek to have the liens against the bank accounts of CDM lifted. The injunction suit has been accepted by the court and we are expecting a response in the next 2 - 3 months. The main purpose of the injunction suit was to challenge the SAT’s response issued to the Reconsideration, and with that, to keep the Reconsideration alive until the injunction suit is decided. This would allow time to continue the discussions with SAT at the administrative level and would give SAT the legal basis to issue a new resolution. This injunction suit represents a further opportunity for a Court of Law to analyze this matter from a constitutional perspective. The injunction suit has been admitted for analysis by the District Court, however, SAT filed a complaint (queja) against the ruling allowing CDM to file an extension of the injunction suit aiming to appoint as a defendant other than SAT’s authority that were involved in the reconsideration appeal's resolution. This complaint was filed by SAT to challenge the admission and analysis of the injunction suit; this complaint is expected to be decided by the Circuit Courts within the next couple of months. On March 4, 2022, the Annulment Suit was formally accepted by the Federal Tax Court, which simultaneously granted a provisional suspension of the collections proceedings by the SAT. The acceptance by the court of the Annulment Suit renders the 2013 Assessment as non-definitive, until such time as the suit is resolved. On March 10, 2022, we met with the SAT and offered an Administrative Guaranty ( Embargo en Via Administrativa) , On April 27, 2022, the SAT provided a Positive Compliance Opinion to CDM, and consequently on April 29, 2022, the Tax Authority renewed the VAT Certification to CDM. These two resolutions signal a positive development on the Tax controversies in Mexico. On April 29, 2022, we submitted all the documentation required to the Tax Authority and the Federal Tax Court to continue with the consideration of the Administrative Guaranty. On June 16, 2022 we received a request from the Tax Authorities to provide information related to the Administrative Guaranty. The information was presented on July 7, 2022, and on August 2, 2022. On August 8, 2022, we met with Tax Authorities in Mexico City to review the information presented and agreed to next steps on the approval of the Guarantee. Since then, the Tax Authorities have visited Calavo Mexico to continue the validation process and we believe will have a resolution in the next 2 - 3 months. Once the Administrative Guaranty is ruled and accepted by the FTC and tax authority, they will permanently suspend and remove the liens on the fixed assets and bank accounts of CDM. While we continue to believe that the 2013 Assessment is completely without merit, and that we will prevail on the Annulment Suit in the Tax Court, we also believe that it is in the best interest of CDM and the Company to settle the 2013 Assessment as quickly as possible. Furthermore, we believe that the above actions taken by CDM will encourage the SAT to agree to reach a settlement. In accordance with our cumulative probability analysis on uncertain tax positions, our recent settlements made by the SAT in other cases, the 2011 Assessment settlement reached by CDM with the MFM, and the value of CDM assets, we recorded a provision of $11 million USD, in the third quarter of fiscal 2021, as a discrete item in Income Tax Provision. The provision includes estimated penalties, interest and inflationary adjustments. We believe that this provision remains appropriate as of July 31, 2022 based on or cumulative probability analysis. We incurred

Fair Value Measurements

Fair Value Measurements	9 Months Ended
Fair Value Measurements	Jul. 31, 2022
Fair Value Measurements
Fair Value Measurements	8. Fair value measurements A fair value measurement is determined based on the assumptions that a market participant would use in pricing an asset or liability. A three-tiered hierarchy draws distinctions between market participant assumptions based on (i) observable inputs such as quoted prices in active markets (Level 1), (ii) inputs other than quoted prices in active markets that are observable either directly or indirectly (Level 2) and (iii) unobservable inputs that require the Company to use present value and other valuation techniques in the determination of fair value (Level 3). The following table sets forth our financial assets and liabilities as of July 31, 2022 that are measured on a recurring basis during the period, segregated by level within the fair value hierarchy: Level 1 Level 2 Level 3 Total (All amounts are pres nted in thousands) Assets at Fair Value at July 31, 2022: Investment in Limoneira Company (1) $ 21,251 — — $ 21,251 Total assets at fair value $ 21,251 — — $ 21,251 Assets at Fair Value at October 31, 2021: Investment in Limoneira Company (1) $ 27,055 — — $ 27,055 Total assets at fair value $ 27,055 — — $ 27,055 (1) The investment in Limoneira Company consists of marketable securities in the Limoneira Company common stock. We currently own approximately of Limoneira’s outstanding common stock. These securities are measured at fair value using quoted market prices. For the three months ended July 31, 2022 and 2021, we recognized gains of million, respectively, on the consolidated condensed statements of operations. For the nine months ended July 31, 2022 and 2021, we recognized losses of .

Noncontrolling interest

Noncontrolling interest	9 Months Ended
Noncontrolling interest	Jul. 31, 2022
Noncontrolling interest.
Noncontrolling interest	9. Noncontrolling interest The following table reconciles shareholders’ equity attributable to noncontrolling interest related to Avocados de Jalisco (in thousands). Three months ended July 31, Avocados de Jalisco noncontrolling interest 2022 2021 Noncontrolling interest, beginning $ 1,166 $ 1,385 Net income attributable to noncontrolling interest of Avocados de Jalisco 17 66 Noncontrolling interest, ending $ 1,183 $ 1,451 Nine months ended July 31, Avocados de Jalisco noncontrolling interest 2022 2021 Noncontrolling interest, beginning $ 1,368 $ 1,472 Net loss attributable to noncontrolling interest of Avocados de Jalisco (185) (21) Noncontrolling interest, ending $ 1,183 $ 1,451

Earnings per share

Earnings per share	9 Months Ended
Earnings per share	Jul. 31, 2022
Earnings per share
Earnings per share	10. Earnings per share Basic and diluted net income per share is calculated as follows (data in thousands, except per share data): Three months ended July 31, 2022 2021 Numerator: Net income (loss) attributable to Calavo Growers, Inc. $ 1,300 $ (12,981) Denominator: Weighted average shares – Basic 17,667 17,630 Effect of dilutive securities – Restricted stock/units/options (1) 102 — Weighted average shares – Diluted 17,769 17,630 Net income (loss) per share attributable to Calavo Growers, Inc: Basic $ 0.07 $ (0.74) Diluted $ 0.07 $ (0.74) Nine months ended July 31, 2022 2021 Numerator: Net Income (loss) attributable to Calavo Growers, Inc. $ (2,933) $ 1,137 Denominator: Weighted average shares - Basic 17,661 17,616 Effect on dilutive securities – Restricted stock/units/options (1) — 53 Weighted average shares - Diluted 17,661 17,669 Net income (loss) per share attributable to Calavo Growers, Inc: Basic $ (0.17) $ 0.06 Diluted $ (0.17) $ 0.06 (1) For the nine months ended July 31 2022 approximately 65,000 shares of common stock equivalents were excluded in the computation of diluted net loss per share, as the effect would be anti-dilutive since the Company reported a net loss. For the three months ended July 31, 2021 approximately 52,000 share of common stock equivalents were excluded in the computation of dilated net loss per share, as the effect would be anti-dilutive since the Company reported a net loss.

Mexican IVA taxes receivable

Mexican IVA taxes receivable	9 Months Ended
Mexican IVA taxes receivable	Jul. 31, 2022
Mexican IVA taxes receivable
Mexican IVA taxes receivable	11. Mexican IVA taxes receivable Included in other assets are tax receivables due from the Mexican government for value-added taxes (“IVA”) paid in advance. CDM is charged IVA by vendors on certain expenditures in Mexico, which, insofar as they relate to the exportation of goods, translate into IVA amounts recoverable from the Mexican government. As of July 31, 2022, and October 31, 2021, CDM IVA receivables totaled $41.3 million (840.9 million Mexican pesos) and $37.5 million (762.1 million Mexican pesos). Historically, CDM received IVA refund payments from the Mexican tax authorities on a timely basis. Beginning in fiscal 2014 and continuing into fiscal 2022, the tax authorities began objecting to refund requests and supporting documentation that had previously been deemed acceptable to process a refund. Additionally, they are also questioning the refunds requested attributable to IVA paid to certain suppliers that allegedly did not fulfill their own tax obligations. We believe these factors and others have contributed to delays in the processing of IVA claims by the Mexican tax authorities. Currently, we are in the process of collecting such balances primarily through regular administrative processes, but these amounts may ultimately need to be recovered through Administrative Appeals and/or other legal means. During the first quarter of fiscal 2017, the tax authorities informed us that their internal opinion, based on the information provided by the local SAT office, considers that CDM is not properly documented relative to its declared tax structure and therefore CDM cannot claim the refundable IVA balance. CDM has strong arguments and supporting documentation to sustain its declared tax structure for IVA and income tax purposes. CDM started an Administrative Appeal for the IVA related to the request of the months of July, August and September of 2015 (the “2015 Appeal”) in order to assert its argument that CDM is properly documented and to therefore change the SAT’s internal assessment. In August 2018, we received a favorable ruling from the SAT’s Legal Administration in Michoacan on the 2015 Appeal indicating that they believe CDM’s legal interpretation of its declared tax structure is indeed accurate. While favorable on this central matter of CDM’s declared tax structure, the ruling, however, still does not recognize the taxpayers right to a full refund for the IVA related to the months of July, August and September 2015. Therefore, in October 2018, CDM filed a substance-over-form Annulment Suit in the Federal Tax Court to recover its full refund for IVA over the subject period, which is currently pending resolution. In April 2022, the Tax Court issued the ruling for the months of July, August and September 2015 through which it was declared that the following resolutions were resolved: ● It is recognized that CDM operates as a maquila under the authorization of the Ministry of Finance. ● It is recognized that all bank deposits corresponding to the purchase of avocados on behalf of Calavo Growers Inc. (CGI), are subject to the maquila program and it is not accruable income for purposes of Income Tax nor activities subject to VAT. ● It is recognized that VAT is recoverable, since CDM demonstrated the existence of operations carried under the maquila services. ● Resolved that certain VAT amounts attributed to the purchase of certain packing materials are not recoverable as CDM was not the buyer on record and therefore did not pay for the materials, which approximated $6.9 million pesos (approximately $0.3 million USD). The court is still reviewing the appeal filed by the Company on May 9, 2022, against the ruling resolving that certain VAT amounts are not recoverable . The latest court resolution sustains the Company’s position that it is entitled to substantially all of its VAT amounts, and the Company is considering its options for collecting the entire VAT receivable. In the unlikely event of an unfavorable resolution of the Administrative Appeals, we plan to file Annulment Suits with the Mexican Federal Tax Court. If these suits result in an unfavorable ruling, there is an option to appeal to the Collegiate Circuit Court. The estimated time for the resolution of these suits could be 2 – 3 years . We believe that our operations in Mexico are properly documented, and our internationally recognized tax advisors believe that there are legal grounds to prevail in collecting the corresponding IVA amounts. With assistance from our internationally recognized tax advisory firm, as of July 31, 2022, CDM has filed Administrative Appeals for months for which IVA refunds have been denied by the SAT, and will continue filing such appeals for any months for which refunds are denied in the future. Therefore, it is probable that the Mexican tax authorities will ultimately authorize the refund of the corresponding IVA amounts.

Credit Facility

Credit Facility	9 Months Ended
Credit Facility	Jul. 31, 2022
Credit Facility
Credit Facility	12. Credit Facility On December 1, 2021, we entered into the Fourth and Fifth Amendments to the Credit Agreement with Bank of America, N.A., as administrative agent (“Bank of America”), and Farm Credit West, PCA (together with Bank of America, the “Lenders”), relating to our Credit Agreement dated as of June 14, 2016, The Fourth and Fifth Amendments, among other terms, included CDM as a guarantor, increased the interest rate by 0.5% and amended the financial covenant requirements as follows: ● The Fixed Charge Coverage Ratio (FCCR) covenant was waived for the quarters ended October 31, 2021, January 31, 2022 and April 30, 2022. The covenant was resumed for the quarter ended July 31, 2022. ● The quarterly FCCR covenant was replaced by a cumulative monthly minimum Consolidated EBITDA covenant, with the first measurement occurring as of January 31, 2022 for the three months then ended, and continuing monthly thereafter through June 2022. ● Consolidated financial statements must be submitted monthly for the month and year-to-date period, beginning with the financial statements for the month of November 2021 and continuing through June 2022. The Company also pledged the 1,677,299 shares it holds of Limoneira stock as collateral (which was in addition to the general business assets of the Company that already secure the credit facility). The above terms and conditions will remain in effect until such time as the Company has certified compliance with a 1.15 to 1.0 minimum FCCR for two consecutive fiscal quarters. As of January 31, 2022, the Company was not in compliance with the cumulative monthly minimum Consolidated EBITDA covenant, and the Consolidated Leverage Ratio (CLR) covenant. In March 2022, the Company and the Lenders entered into the Sixth Amendment”). The Sixth Amendment, among other terms, waived the non-compliance of the financial covenants as of January 31, 2022 and amended the financial covenant requirements as follows: ● The cumulative monthly minimum Consolidated EBITDA testing has been waived and the CLR covenant testing is waived through July 31, 2022. ● Minimum Consolidated EBITDA of $3 million, $3 million and $5 million for the months of February, March and April 2022 will be required. ● Monthly cumulative FCCR of 1.20 starting with the quarter ended April 30, 2022, converting to trailing 12 months calculation starting as of October 31, 2022 and quarterly thereafter. For April through September 2022, dividends paid in December 2021 are included on a pro-rata basis. The interest rate of the facility increased to BSBY plus 3.0%, until the first business day of the month after we certify that no default or event of default exists for the period ended July 31, 2022, at which point the interest rate will range between BSBY plus 1.25 – 1.75% based on our CLR. The total facility reduced from $100 million to $80 million and will be limited to a borrowing base consisting of the sum of eligible accounts receivable (80%), eligible US inventory (50%), and Limoneira shares (60%), less grower payables. As of July 31, 2022, we were in compliance with the financial covenants, and we expect to remain in compliance through September 2023. As of July 31, 2022, approximately $16.8 million was available for borrowing, based on our borrowing base calculation discussed above.

COVID-19 Pandemic Impact

COVID-19 Pandemic Impact	9 Months Ended
COVID-19 Pandemic Impact	Jul. 31, 2022
COVID-19 Pandemic Impact
COVID-19 Pandemic Impact	13. COVID-19 Pandemic Impact The COVID-19 pandemic has created challenging and unprecedented conditions for our business, and we are committed to taking action in support of a Company-wide response to the crisis. The COVID-19 pandemic has negatively impacted the global economy, disrupted global supply chains, changed certain purchasing norms in retail and foodservice channels and created significant volatility and disruption of financial markets. This has resulted in inflationary and cost pressures that have significantly increased, and continue to adversely impact, our production and distribution costs, including costs of raw materials, packaging, labor, and freight. We are also experiencing pressure in our supply chain due to strained transportation capacity and lack of sufficient labor availability. We believe, however, that we are well-positioned for the future as we continue to navigate the crisis and have successfully implemented contingency plans in the U.S. and in Mexico to monitor the evolving needs of our businesses, as well as those related to our Peru partner in consignment avocado sales. The effects of the pandemic have been more pronounced in the portions of our business servicing foodservice customers and to a lesser extent certain segments of our retail business, including behind-the-glass deli and grab-and-go convenience items. While many restrictions have since been lifted, the pace of the recovery from the COVID-19 pandemic is not presently known. Additionally, we cannot forecast future variants or the impact on our business of such variants, if any. We cannot reasonably estimate the duration or extent of the pandemic’s adverse impact on our business, operating results, and long-term liquidity position.

Closure of Florida facility

Closure of Florida facility	9 Months Ended
Closure of Florida facility	Jul. 31, 2022
Closure of Florida facility
Closure of Florida facility	14. Closure of Florida facility On November 15, 2021, Prepared’s Green Cove Springs, Florida facility ceased operations. The Company’s Grown avocado operations at this facility will continue and are not affected. Prepared will continue to serve customers of this location from its other food processing locations, primarily in Georgia. The closure resulted in a reduction of 140 employees, impairment of leasehold improvements, writedowns of inventory and other assets, and certain cash expenditures for the relocation of machinery and equipment and the closure of the leased facilities. During the fourth quarter of fiscal 2021, we wrote down consolidated statement of operations under “Impairment and charges related to Florida facility closure”. There were As of July 31, 2022 and October 31, 2021, the Company had right of use assets with a net book value of $4.1 million and $4.8 million respectively, and lease liabilities of $5.3 million and $6.0 million, respectively, recorded on the balance sheet related to the closed facility. The facility lease has a maturity date of October 31, 2031. The Company intends to seek a sub-lease tenant to assume the vacated space, and believes such a sub-lease can be obtained at a lease rate, and for a lease period, sufficient to realize the right of use asset. Management will continue to evaluate the actual amounts and duration of expected future sub-lease revenues. Should the actual sub-lease revenues be less than those currently expected, the Company may need to record impairment of some or all its investment in the right of use asset. During the nine months ended July 31, 2022, we incurred $1.0 million of incremental restructuring and related costs due to the transition to other facilities.

Description of the business (Po

Description of the business (Policies)	9 Months Ended
Description of the business (Policies)	Jul. 31, 2022
Description of the business
Business	Business Calavo Growers, Inc. (referred to in this report as “Calavo”, the “Company”, “we’, “us” or “our”), is a global leader in the avocado industry and a provider of value-added fresh food. Our expertise in marketing and distributing avocados, prepared avocados, and other perishable foods allows us to deliver a wide array of fresh and prepared food products to retail grocery, foodservice, club stores, mass merchandisers, food distributors and wholesalers on a worldwide basis. We procure avocados from California, Mexico and other growing regions around the world. Through our various operating facilities, we (i) sort, pack, and/or ripen avocados, tomatoes and/or Hawaiian grown papayas, (ii) create, process and package a portfolio of healthy fresh foods including fresh-cut fruit and vegetables, and prepared foods and (iii) process and package guacamole and salsa. We distribute our products both domestically and internationally and beginning in the third quarter of fiscal 2022 we report our operations in different business segments: Grown and Prepared. The accompanying unaudited consolidated condensed financial statements have been prepared by the Company in accordance with accounting principles generally accepted in the United States and with the instructions to Form 10-Q and Article 10 of Regulation S-X of the Securities and Exchange Commission. Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. In the opinion of management, the accompanying unaudited consolidated condensed financial statements contain all adjustments, consisting of adjustments of a normal recurring nature necessary to present fairly the Company’s financial position, results of operations and cash flows. The results of operations for interim periods are not necessarily indicative of the results that may be expected for a full year. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board issued ASU 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes," which amends and simplifies the accounting for income taxes by removing certain exceptions and providing new guidance to reduce complexity in certain aspects of the current guidance. This guidance was adopted by the Company during the first quarter of 2022 and did not impact the Company’s financial statements or related disclosures .

Information regarding our ope_2

Information regarding our operations in different segments (Tables)	9 Months Ended
	Jul. 31, 2022
Information regarding our operations in different segments
Schedule of sales by product and segment	Three months ended July 31, 2022 Three months ended July 31, 2021 Grown Prepared Total Grown Prepared Total Avocados $ 196,443 $ — $ 196,443 $ 148,757 $ — $ 148,757 Tomatoes 8,990 — 8,990 11,344 — 11,344 Papayas 2,679 — 2,679 2,683 — 2,683 Other fresh income 54 — 54 95 — 95 Fresh-cut fruit — 59,159 59,159 — 58,703 58,703 Fresh-cut vegetables — 27,299 27,299 — 23,226 23,226 Prepared products — 31,083 31,083 — 25,917 25,917 Guacamole — 19,606 19,606 — 21,096 21,096 Salsa — 524 524 — 746 746 Total gross sales 208,166 137,671 345,837 162,879 129,688 292,567 Less sales allowances (577) (2,799) (3,376) (1,299) (5,588) (6,887) Less inter-company eliminations (470) — (470) (672) — (672) Net sales $ 207,119 $ 134,872 $ 341,991 $ 160,908 $ 124,100 $ 285,008 Nine months ended July 31, 2022 Nine months ended July 31, 2021 Grown Prepared Total Grown Prepared Total Avocados $ 538,882 $ — $ 538,882 $ 398,887 $ — $ 398,887 Tomatoes 36,331 — 36,331 33,963 — 33,963 Papayas 8,462 — 8,462 8,081 — 8,081 Other fresh income 87 — 87 548 — 548 Fresh-cut fruit — 151,361 151,361 — 149,652 149,652 Fresh-cut vegetables — 82,162 82,162 — 78,030 78,030 Prepared products — 83,281 83,281 — 68,425 68,425 Guacamole — 56,976 56,976 — 56,557 56,557 Salsa — 1,349 1,349 — 2,154 2,154 Total gross sales 583,762 375,129 958,891 441,479 354,818 796,297 Less sales allowances (2,591) (7,240) (9,831) (2,754) (9,221) (11,975) Less inter-company eliminations (1,559) — (1,559) (1,915) — (1,915) Net sales $ 579,612 $ 367,889 $ 947,501 $ 436,810 $ 345,597 $ 782,407
Schedule of segment gross margin	Interco. Grown Prepared Elimins. Total (All amounts are presented in thousands) Three months ended July 31, 2022 Net sales $ 207,589 $ 134,872 $ (470) $ 341,991 Cost of sales 195,818 128,129 (470) 323,477 Gross profit $ 11,771 $ 6,743 $ — $ 18,514 Three months ended July 31, 2021 Net sales $ 161,580 $ 124,100 $ (672) $ 285,008 Cost of sales 149,378 128,435 (672) 277,141 Gross profit $ 12,202 $ (4,335) $ — $ 7,867 Interco. Grown Prepared Elimins. Total (All amounts are presented in thousands) Nine months ended July 31, 2022 Net sales $ 581,171 $ 367,889 $ (1,559) $ 947,501 Cost of sales 539,577 355,999 (1,559) 894,017 Gross profit $ 41,594 $ 11,890 $ — $ 53,484 Nine months ended July 31, 2021 Net sales $ 438,725 $ 345,597 $ (1,915) $ 782,407 Cost of sales 398,370 337,646 (1,915) 734,101 Gross profit $ 40,355 $ 7,951 $ — $ 48,306
Schedule of long-lived assets by geographic areas	The net carrying value of long-lived assets attributed to geographic areas as of July 31, 2022 and October 31, 2021, are as follows (in thousands): United States Mexico Consolidated July 31, 2022 $ 78,087 $ 36,394 $ 114,481 October 31, 2021 $ 81,059 $ 37,221 $ 118,280

Inventories (Tables)

Inventories (Tables)	9 Months Ended
Inventories (Tables)	Jul. 31, 2022
Inventories
Schedule of Inventories	Inventories consist of the following (in thousands): July 31, October 31, 2022 2021 Fresh fruit $ 14,793 $ 17,648 Packing supplies and ingredients 14,621 13,088 Finished prepared foods 6,659 10,021 Total $ 36,073 $ 40,757

Other assets and Intangibles (T

Other assets and Intangibles (Tables)	9 Months Ended
Other assets and Intangibles (Tables)	Jul. 31, 2022
Other assets and Intangibles
Schedule of Other Assets	Other assets consist of the following (in thousands): July 31, October 31, 2022 2021 Mexican IVA (i.e. value-added) taxes receivable (see note 11) $ 41,265 $ 37,493 Infrastructure advances to Agricola Belher 1,641 1,641 Bridge loan to Agricola Belher 1,700 — Other 815 1,366 Total $ 45,421 $ 40,500
Schedule of Intangible Assets	Intangible assets consist of the following (in thousands): July 31, 2022 October 31, 2021 Weighted- Gross Net Gross Net Average Carrying Accum. Book Carrying Accum. Book Useful Life Value Amortization Value Value Amortization Value Customer list/relationships 7 years $ 17,340 $ (11,028) $ 6,312 $ 17,340 $ (9,989) $ 7,351 Trade names 11 years 4,060 (3,070) 990 4,060 (2,980) 1,080 Trade secrets/recipes 9 years 630 (620) 10 630 (567) 63 Brand name intangibles indefinite 275 — 275 275 — 275 Intangibles, net $ 22,305 $ (14,718) $ 7,587 $ 22,305 $ (13,536) $ 8,769

Stock-Based Compensation (Table

Stock-Based Compensation (Tables)	9 Months Ended
Stock-Based Compensation (Tables)	Jul. 31, 2022
Stock-Based Compensation
Summary of restricted stock award activity	A combined summary of restricted stock award activity, related to our 2011 and 2020 Plans, is as follows (in thousands, except for per share amounts): Weighted-Average Aggregate Number of Shares Grant Price Intrinsic Value Outstanding at October 31, 2021 43 $ 64.89 Vested (31) $ 45.44 Forfeited (9) $ 37.67 Granted 64 $ 41.88 Outstanding at July 31, 2022 67 $ 45.01 $ 2,672
Summary of RSU activity	A combined summary of RSU activity, related to our 2020 Plan, is as follows (in thousands, except for per share amounts): Number of Shares Weighted-Average Aggregate Represented Grant Price Intrinsic Value Outstanding at April 30, 2022 34 $ 37.49 Forfeited (4) $ 37.49 Granted 13 $ 39.89 Outstanding at July 31, 2022 43 $ 38.18 $ 1,724
Summary of stock option activity	A summary of stock option activity, related to our 2011 and 2020 Plans, is as follows (in thousands, except for weighted-average exercise price): Weighted-Average Aggregate Exercise Intrinsic Number of Shares Price Value Outstanding at October 31, 2021 19 $ 42.89 Exercised (2) $ 23.48 Outstanding at July 31, 2022 17 $ 47.62 $ — Exercisable at July 31, 2022 12 $ 51.12 $ —

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
Fair Value Measurements (Tables)	Jul. 31, 2022
Fair Value Measurements
Financial assets measured on recurring basis	Level 1 Level 2 Level 3 Total (All amounts are pres nted in thousands) Assets at Fair Value at July 31, 2022: Investment in Limoneira Company (1) $ 21,251 — — $ 21,251 Total assets at fair value $ 21,251 — — $ 21,251 Assets at Fair Value at October 31, 2021: Investment in Limoneira Company (1) $ 27,055 — — $ 27,055 Total assets at fair value $ 27,055 — — $ 27,055 (1) The investment in Limoneira Company consists of marketable securities in the Limoneira Company common stock. We currently own approximately of Limoneira’s outstanding common stock. These securities are measured at fair value using quoted market prices. For the three months ended July 31, 2022 and 2021, we recognized gains of million, respectively, on the consolidated condensed statements of operations. For the nine months ended July 31, 2022 and 2021, we recognized losses of .

Noncontrolling interest (Tables

Noncontrolling interest (Tables)	9 Months Ended
Noncontrolling interest (Tables)	Jul. 31, 2022
Noncontrolling interest.
Reconciliation of shareholders' equity attributable to noncontrolling interest	The following table reconciles shareholders’ equity attributable to noncontrolling interest related to Avocados de Jalisco (in thousands). Three months ended July 31, Avocados de Jalisco noncontrolling interest 2022 2021 Noncontrolling interest, beginning $ 1,166 $ 1,385 Net income attributable to noncontrolling interest of Avocados de Jalisco 17 66 Noncontrolling interest, ending $ 1,183 $ 1,451 Nine months ended July 31, Avocados de Jalisco noncontrolling interest 2022 2021 Noncontrolling interest, beginning $ 1,368 $ 1,472 Net loss attributable to noncontrolling interest of Avocados de Jalisco (185) (21) Noncontrolling interest, ending $ 1,183 $ 1,451

Earnings per share (Tables)

Earnings per share (Tables)	9 Months Ended
Earnings per share (Tables)	Jul. 31, 2022
Earnings per share
Schedule of basic and diluted net income per share	Basic and diluted net income per share is calculated as follows (data in thousands, except per share data): Three months ended July 31, 2022 2021 Numerator: Net income (loss) attributable to Calavo Growers, Inc. $ 1,300 $ (12,981) Denominator: Weighted average shares – Basic 17,667 17,630 Effect of dilutive securities – Restricted stock/units/options (1) 102 — Weighted average shares – Diluted 17,769 17,630 Net income (loss) per share attributable to Calavo Growers, Inc: Basic $ 0.07 $ (0.74) Diluted $ 0.07 $ (0.74) Nine months ended July 31, 2022 2021 Numerator: Net Income (loss) attributable to Calavo Growers, Inc. $ (2,933) $ 1,137 Denominator: Weighted average shares - Basic 17,661 17,616 Effect on dilutive securities – Restricted stock/units/options (1) — 53 Weighted average shares - Diluted 17,661 17,669 Net income (loss) per share attributable to Calavo Growers, Inc: Basic $ (0.17) $ 0.06 Diluted $ (0.17) $ 0.06 (1) For the nine months ended July 31 2022 approximately 65,000 shares of common stock equivalents were excluded in the computation of diluted net loss per share, as the effect would be anti-dilutive since the Company reported a net loss. For the three months ended July 31, 2021 approximately 52,000 share of common stock equivalents were excluded in the computation of dilated net loss per share, as the effect would be anti-dilutive since the Company reported a net loss.

Description of the business (De

Description of the business (Details)	9 Months Ended
Description of the business (Details)	Jul. 31, 2022 segment
Description of the business
Number of reportable segments	2

Information regarding our ope_3

Information regarding our operations in different segments - Product (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2022 USD ($)	Jul. 31, 2021 USD ($)	Jul. 31, 2022 USD ($) segment	Jul. 31, 2021 USD ($)	Oct. 31, 2021 USD ($)
Segment reporting information
Number of reportable segments \| segment			2
Goodwill	$ 28,653		$ 28,653		$ 28,653
Net sales	341,991	$ 285,008	947,501	$ 782,407
Grown [Member]
Segment reporting information
Goodwill	4,000		4,000
Net sales	207,119	160,908	579,612	436,810
Prepared [Member]
Segment reporting information
Goodwill	24,700		24,700
Net sales	134,872	124,100	367,889	345,597
Operating segments
Segment reporting information
Total gross sales	345,837	292,567	958,891	796,297
Less sales allowances	(3,376)	(6,887)	(9,831)	(11,975)
Operating segments \| Avocados [Member]
Segment reporting information
Total gross sales	196,443	148,757	538,882	398,887
Operating segments \| Tomatoes [Member]
Segment reporting information
Total gross sales	8,990	11,344	36,331	33,963
Operating segments \| Papayas [Member]
Segment reporting information
Total gross sales	2,679	2,683	8,462	8,081
Operating segments \| Other fresh income [Member]
Segment reporting information
Total gross sales	54	95	87	548
Operating segments \| Fresh-cut fruit
Segment reporting information
Total gross sales	59,159	58,703	151,361	149,652
Operating segments \| Fresh-cut vegetables
Segment reporting information
Total gross sales	27,299	23,226	82,162	78,030
Operating segments \| Prepared products
Segment reporting information
Total gross sales	31,083	25,917	83,281	68,425
Operating segments \| Guacamole
Segment reporting information
Total gross sales	19,606	21,096	56,976	56,557
Operating segments \| Salsa
Segment reporting information
Total gross sales	524	746	1,349	2,154
Operating segments \| Grown [Member]
Segment reporting information
Total gross sales	208,166	162,879	583,762	441,479
Less sales allowances	(577)	(1,299)	(2,591)	(2,754)
Operating segments \| Grown [Member] \| Avocados [Member]
Segment reporting information
Total gross sales	196,443	148,757	538,882	398,887
Operating segments \| Grown [Member] \| Tomatoes [Member]
Segment reporting information
Total gross sales	8,990	11,344	36,331	33,963
Operating segments \| Grown [Member] \| Papayas [Member]
Segment reporting information
Total gross sales	2,679	2,683	8,462	8,081
Operating segments \| Grown [Member] \| Other fresh income [Member]
Segment reporting information
Total gross sales	54	95	87	548
Operating segments \| Prepared [Member]
Segment reporting information
Total gross sales	137,671	129,688	375,129	354,818
Less sales allowances	(2,799)	(5,588)	(7,240)	(9,221)
Operating segments \| Prepared [Member] \| Fresh-cut fruit
Segment reporting information
Total gross sales	59,159	58,703	151,361	149,652
Operating segments \| Prepared [Member] \| Fresh-cut vegetables
Segment reporting information
Total gross sales	27,299	23,226	82,162	78,030
Operating segments \| Prepared [Member] \| Prepared products
Segment reporting information
Total gross sales	31,083	25,917	83,281	68,425
Operating segments \| Prepared [Member] \| Guacamole
Segment reporting information
Total gross sales	19,606	21,096	56,976	56,557
Operating segments \| Prepared [Member] \| Salsa
Segment reporting information
Total gross sales	524	746	1,349	2,154
Intersegment Eliminations [Member]
Segment reporting information
Net sales	(470)	(672)	(1,559)	(1,915)
Intersegment Eliminations [Member] \| Grown [Member]
Segment reporting information
Net sales	$ (470)	$ (672)	$ (1,559)	$ (1,915)

Information regarding our ope_4

Information regarding our operations in different segments - Gross Profit (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Jul. 31, 2021	Jul. 31, 2022	Jul. 31, 2021
Segment reporting information
Net sales	$ 341,991	$ 285,008	$ 947,501	$ 782,407
Cost of sales	323,477	277,141	894,017	734,101
Gross profit	18,514	7,867	53,484	48,306
Elimination between Grown products and Prepared products
Segment reporting information
Sales and cost of sales eliminated	500	700	1,600	1,900
Operating segments \| Grown [Member]
Segment reporting information
Net sales	207,589	161,580	581,171	438,725
Cost of sales	195,818	149,378	539,577	398,370
Gross profit	11,771	12,202	41,594	40,355
Operating segments \| Prepared [Member]
Segment reporting information
Net sales	134,872	124,100	367,889	345,597
Cost of sales	128,129	128,435	355,999	337,646
Gross profit	6,743	(4,335)	11,890	7,951
Intersegment Eliminations [Member]
Segment reporting information
Net sales	(470)	(672)	(1,559)	(1,915)
Cost of sales	$ (470)	$ (672)	$ (1,559)	$ (1,915)

Information regarding our ope_5

Information regarding our operations in different segments - Geographic (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jul. 31, 2022	Jul. 31, 2021	Jul. 31, 2022	Jul. 31, 2021	Oct. 31, 2021
Segment reporting information
Net sales	$ 341,991	$ 285,008	$ 947,501	$ 782,407
Long-lived assets	114,481		114,481		$ 118,280
Foreign currency gains (losses)	(400)	600	(1,300)	1,200
Outside United States
Segment reporting information
Net sales	6,100	$ 8,800	21,500	$ 25,700
United States
Segment reporting information
Long-lived assets	78,087		78,087		81,059
Mexico
Segment reporting information
Long-lived assets	$ 36,394		$ 36,394		$ 37,221

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jul. 31, 2022	Oct. 31, 2021
Inventories
Fresh fruit	$ 14,793	$ 17,648
Packing supplies and ingredients	14,621	13,088
Finished prepared foods	6,659	10,021
Total inventories	36,073	40,757
Inventory valuation reserves	$ 300	$ 200

Related party transactions (Det

Related party transactions (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended				9 Months Ended
	Oct. 31, 2020	Jul. 31, 2022	Jul. 31, 2021	Apr. 30, 2021	Jan. 31, 2021	Jul. 31, 2022	Jul. 31, 2021	Jan. 31, 2022	Oct. 31, 2021
Related Party Transactions
Investments in unconsolidated entities		$ 3,533				$ 3,533			$ 4,346
Advances to suppliers		12,698				12,698			$ 6,693
Non-cash settlement of advance						1,060
Proceeds received for repayment of related party loan							$ 6,000
Avocados de Jalisco
Related Party Transactions
Purchases from related parties		$ 1,200	$ 2,200			$ 4,700	5,400
Avocados de Jalisco \| Avocados de Jalisco
Related Party Transactions
Subsidiary ownership (as a percent)		83%				83%
Limoneira
Related Party Transactions
Dividend income from Limoneira		$ 100	100			$ 400	300
Rent paid		$ 100	100			$ 300	300
Non-equity method investment ownership (as a percent)		9%				9%			9%
Don Memo
Related Party Transactions
Purchases from related parties		$ 3,200	5,700			$ 7,100	9,600
Ownership interest (as a percent)		50%				50%			50%
Investments in unconsolidated entities		$ 3,500				$ 3,500			$ 4,300
Advances to suppliers		6,400				6,400			4,200
Commitment amount	$ 2,400
Loan receivable fixed interest rate (as a percent)	7.25%
Amount loaned	$ 700	2,200		$ 600	$ 700
Infrastructure advance		2,000				2,000
Don Memo \| Prepaid expenses and other current assets
Related Party Transactions
Infrastructure advance		400				400
Don Memo \| Other long-term assets
Related Party Transactions
Infrastructure advance		$ 1,600				$ 1,600
Don Memo \| Agricola Belher \| Don Memo
Related Party Transactions
Ownership interest (as a percent)		50%				50%
Directors
Related Party Transactions
Purchases from related parties		$ 5,700	10,400			$ 7,300	15,400
Accounts payable to related parties		2,000				2,000			0
Agricola Belher
Related Party Transactions
Purchases from related parties		1,400	1,800			19,000	16,300
Advances to suppliers		3,500				3,500			4,500
Bridge loan to related parties			$ 3,500				$ 3,500
Loan receivable fixed interest rate (as a percent)			10%				10%
Infrastructure advance		900				900			$ 900
Expected payment 2022								$ 900
Expected payment 2023								900
Expected payment 2024								$ 1,700
Non-cash settlement of advance						1,100
Agricola Belher \| Prepaid expenses and other current assets
Related Party Transactions
Bridge loan to related parties		700				700
Agricola Belher \| Other long-term assets
Related Party Transactions
Bridge loan to related parties		$ 1,700				$ 1,700

Other assets and Intangibles -

Other assets and Intangibles - Other (Details) - USD ($) $ in Thousands	Jul. 31, 2022	Oct. 31, 2021
CONSOLIDATED CONDENSED BALANCE SHEETS (UNAUDITED)
Mexican IVA (i.e. value-added) taxes receivable	$ 41,265	$ 37,493
Infrastructure advances to Agricola Belher	1,641	1,641
Bridge loan to Agricola Belher	1,700
Other	815	1,366
Other assets	$ 45,421	$ 40,500

Other assets and Intangibles _2

Other assets and Intangibles - Intangibles (Details) - USD ($) $ in Thousands	9 Months Ended
	Jul. 31, 2022	Oct. 31, 2021
Finite-Lived Intangible Assets
Accum. Amortization	$ (14,718)	$ (13,536)
Intangibles, net	7,587	8,769
Finite and indefinite lived intangible assets gross	22,305	22,305
Brand name intangibles [Member]
Finite-Lived Intangible Assets
Gross carrying value and net book value	$ 275	275
Customer list/relationships [Member]
Finite-Lived Intangible Assets
Weighted-Average Useful Life	7 years
Gross Carrying Value	$ 17,340	17,340
Accum. Amortization	(11,028)	(9,989)
Net Book Value	$ 6,312	7,351
Trade names [Member]
Finite-Lived Intangible Assets
Weighted-Average Useful Life	11 years
Gross Carrying Value	$ 4,060	4,060
Accum. Amortization	(3,070)	(2,980)
Net Book Value	$ 990	1,080
Trade secrets/recipes [Member]
Finite-Lived Intangible Assets
Weighted-Average Useful Life	9 years
Gross Carrying Value	$ 630	630
Accum. Amortization	(620)	(567)
Net Book Value	$ 10	$ 63

Other assets and Intangibles _3

Other assets and Intangibles - Amortization (Details) $ in Millions	Jul. 31, 2022 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense for remainder of fiscal 2022	$ 0.4
Amortization expense for 2023	1.5
Amortization expense for 2024	1.5
Amortization expense for 2025	1.5
Amortization expense thereafter	$ 2.4

Stock-Based Compensation - Narr

Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions								3 Months Ended		9 Months Ended
	Aug. 16, 2022	Apr. 01, 2022	Feb. 01, 2022	Jan. 20, 2022	Jan. 03, 2022	Dec. 13, 2021	Apr. 21, 2021	Jul. 31, 2022	Jul. 31, 2021	Jul. 31, 2022	Jul. 31, 2021
Restricted stock
Share-based Compensation
Shares granted (in shares)										64,000
Forfeited, Number of Shares										9,000
Stock closing price awarded (in dollars per share)										$ 41.88
Stock-based compensation expense								$ 0.4	$ 0.6	$ 1.8	$ 2.8
Unrecognized stock based compensation expenses								1.7		1.7
Restricted stock \| Officer
Share-based Compensation
Shares granted (in shares)						5,355
Stock closing price awarded (in dollars per share)						$ 40.53
Vesting period						2 years
Stock-based compensation expense								0.1		0.1
Restricted stock \| Directors
Share-based Compensation
Shares granted (in shares)					28,140
Stock closing price awarded (in dollars per share)					$ 42.64
Stock-based compensation expense								0.3		0.7
Number of shares granted per Director					2,814
Restricted stock \| Brian Kocher (CEO)
Share-based Compensation
Shares granted (in shares)			28,993
Stock closing price awarded (in dollars per share)			$ 41.39
Vesting period			3 years
Stock-based compensation expense								$ 0.1		0.2
Unrestricted Stock \| Directors
Share-based Compensation
Shares granted (in shares)				1,500
Stock closing price awarded (in dollars per share)				$ 41.73
Stock-based compensation expense										0.1
RSU and PRSU
Share-based Compensation
Vesting period								3 years
Stock-based compensation expense								$ 0.3		0.3
Fair value, non option										2.5
Unrecognized stock based compensation expenses								$ 2.2		$ 2.2
Unrecognized compensation cost period										2 years 3 months 18 days
RSU and PRSU \| Key Employees
Share-based Compensation
Stock closing price awarded (in dollars per share)		$ 37.49
RSU and PRSU \| Former CFO
Share-based Compensation
Forfeited, Number of Shares		4,014
RSU
Share-based Compensation
Shares granted (in shares)										13,000
Forfeited, Number of Shares										4,000
Stock closing price awarded (in dollars per share)										$ 39.89
RSU \| Key Employees
Share-based Compensation
Shares granted (in shares)		34,269
Vesting period		3 years
RSU \| Shawn Munsell (CFO)
Share-based Compensation
Shares granted (in shares)								9,002
Stock closing price awarded (in dollars per share)								$ 38.88
RSU \| Danny Demas
Share-based Compensation
Shares granted (in shares)								3,533
Stock closing price awarded (in dollars per share)								$ 42.46
RSU \| Helen Kurtz
Share-based Compensation
Shares granted (in shares)	6,778
Stock closing price awarded (in dollars per share)	$ 44.26
Vesting period	3 years
PRSU \| Key Employees
Share-based Compensation
Shares granted (in shares)		34,269
Vesting period		3 years
Stock options \| Minimum
Share-based Compensation
Award expiration period										2 years
Vesting period										1 year
Stock options \| Maximum
Share-based Compensation
Award expiration period										5 years
Vesting period										5 years
2020 Management Incentive Plan [Member]
Share-based Compensation
Common stock shares authorized (in shares)							1,500,000
Award expiration period							5 years

Stock-Based Compensation - Non-

Stock-Based Compensation - Non-options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Jul. 31, 2022
Restricted stock
Share-based Compensation
Outstanding, Number of Shares, Beginning Balance	43
Vested, Number of Shares	(31)
Forfeited, Number of Shares	(9)
Granted, Number of Shares	64
Outstanding, Number of Shares, Ending Balance	67
Outstanding, Weighted-Average Exercise Price, beginning balance	$ 64.89
Vested, Weighted-Average Grant Price	45.44
Forfeited, Weighted-Average Grant Price	37.67
Granted, Weighted-Average Grant Price	41.88
Outstanding, Weighted-Average Exercise Price, ending balance	$ 45.01
Aggregate Intrinsic Value	$ 2,672
RSU
Share-based Compensation
Outstanding, Number of Shares, Beginning Balance	34
Forfeited, Number of Shares	(4)
Granted, Number of Shares	13
Outstanding, Number of Shares, Ending Balance	43
Outstanding, Weighted-Average Exercise Price, beginning balance	$ 37.49
Forfeited, Weighted-Average Grant Price	37.49
Granted, Weighted-Average Grant Price	39.89
Outstanding, Weighted-Average Exercise Price, ending balance	$ 38.18
Aggregate Intrinsic Value	$ 1,724

Stock-Based Compensation - Stoc

Stock-Based Compensation - Stock Option (Details) - Stock options shares in Thousands	9 Months Ended
	Jul. 31, 2022 $ / shares shares
Share-based Compensation
Outstanding, Number of Shares, Beginning Balance \| shares	19
Exercised, Number of Shares \| shares	(2)
Outstanding, Number of Shares, Ending Balance \| shares	17
Exercisable, Number of Shares \| shares	12
Outstanding, Weighted-Average Exercise Price \| $ / shares	$ 42.89
Exercised, Weighted-Average Exercise Price \| $ / shares	23.48
Outstanding, Weighted-Average Exercise Price, ending balance \| $ / shares	47.62
Exercisable, Weighted-Average Exercise Price \| $ / shares	$ 51.12
Outstanding stock options, weighted-average remaining contractual term	2 years 8 months 12 days

Other Events (Details)

Other Events (Details) $ / shares in Units, $ in Thousands, $ in Millions				1 Months Ended	3 Months Ended		9 Months Ended
	Dec. 03, 2021 USD ($) $ / shares	Jun. 16, 2021 USD ($)	Jun. 16, 2021 MXN ($)	Jul. 31, 2018 MXN ($)	Jul. 31, 2022 USD ($)	Jul. 31, 2021 USD ($)	Jul. 31, 2022 USD ($)	Jul. 31, 2021 USD ($)	Jul. 31, 2022 MXN ($)	Jun. 25, 2021 USD ($)
Dividend declared per share \| $ / shares	$ 1.15
Dividend amount paid to shareholders	$ 20,300						$ 20,330	$ 20,343
Expenses related to Mexican tax matters					$ 303	$ 1,342	1,148	1,342
Mexican Tax Authority \| Tax Assessment 2011
Tax assessment			$ 2,200
Discreet tax expense (benefit)		$ 2,400	$ 47.8
Mexican Tax Authority \| Tax Assessment 2013
Amount disputed				$ 2,600			127,600
Estimate of loss					151,100		151,100		$ 3,080
Fixed assets net book value under lien										$ 26,000
Bank accounts under lien										$ 1,000
Tax dispute liability accrued						$ 11,000		$ 11,000
Expenses related to Mexican tax matters					300		1,100
Mexican Tax Authority \| Tax Assessment 2013 \| Employee Profit Sharing Liability
Estimate of loss					$ 5,800		$ 5,800		$ 118

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Fair Value Measurements (Details) - USD ($) $ in Thousands	Jul. 31, 2022	Jul. 31, 2021	Jul. 31, 2022	Jul. 31, 2021	Oct. 31, 2021
Assets at Fair Value:
Unrealized net gain (loss) on Limoneira shares	$ 1,225	$ (252)	$ (5,803)	$ 6,843
Limoneira
Assets at Fair Value:
Non-equity method investment ownership (as a percent)	9%		9%		9%
Unrealized net gain (loss) on Limoneira shares	$ 1,200	$ (300)	$ (5,800)	$ 6,800
Fair Value, recurring
Assets at Fair Value:
Total assets at fair value	21,251		21,251		$ 27,055
Fair Value, recurring \| Limoneira
Assets at Fair Value:
Investment in Limoneira Company	21,251		21,251		27,055
Fair Value, recurring \| Level 1
Assets at Fair Value:
Total assets at fair value	21,251		21,251		27,055
Fair Value, recurring \| Level 1 \| Limoneira
Assets at Fair Value:
Investment in Limoneira Company	$ 21,251		$ 21,251		$ 27,055

Noncontrolling Interest (Detail

Noncontrolling Interest (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Noncontrolling Interest (Details) - USD ($) $ in Thousands	Jul. 31, 2022	Jul. 31, 2021	Jul. 31, 2022	Jul. 31, 2021
Noncontrolling Interest
Noncontrolling interest, beginning			$ 1,368
Net loss attributable to noncontrolling interest of Avocados de Jalisco	$ 17	$ 66	(185)	$ (21)
Noncontrolling interest, ending	1,183		1,183
Avocados de Jalisco
Noncontrolling Interest
Noncontrolling interest, beginning	1,166	1,385	1,368	1,472
Net loss attributable to noncontrolling interest of Avocados de Jalisco	17	66	(185)	(21)
Noncontrolling interest, ending	$ 1,183	$ 1,451	$ 1,183	$ 1,451

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended						9 Months Ended
	Jul. 31, 2022	Apr. 30, 2022	Jan. 31, 2022	Jul. 31, 2021	Apr. 30, 2021	Jan. 31, 2021	Jul. 31, 2022	Jul. 31, 2021
Earnings per share
Net income (loss) attributable to Calavo Growers, Inc.	$ 1,300	$ (191)	$ (4,043)	$ (12,981)	$ 8,841	$ 5,277	$ (2,933)	$ 1,137
Weighted average shares - Basic (in shares)	17,667			17,630			17,661	17,616
Effect of dilutive securities - Restricted stock/units/options (in shares)	102							53
Weighted average shares - Diluted (in shares)	17,769			17,630			17,661	17,669
Basic (in dollars per shares)	$ 0.07			$ (0.74)			$ (0.17)	$ 0.06
Diluted (in dollars per shares)	$ 0.07			$ (0.74)			$ (0.17)	$ 0.06
Antidilutive shares excluded from EPS (in shares)				52			65

Mexican IVA taxes receivable (D

Mexican IVA taxes receivable (Details) $ in Millions, $ in Millions	1 Months Ended
	Apr. 30, 2022 USD ($)	Jul. 31, 2022 USD ($)	Jul. 31, 2022 MXN ($)	Apr. 30, 2022 MXN ($)	Oct. 31, 2021 USD ($)	Oct. 31, 2021 MXN ($)
IVA receivables
IVA receivables balance		$ 41.3	$ 840.9		$ 37.5	$ 762.1
Unrecoverable value added tax	$ 0.3			$ 6.9
Minimum
IVA receivables
Estimated term for resolution of law suits	2 years
Maximum
IVA receivables
Estimated term for resolution of law suits	3 years

Credit Facility (Details)

Credit Facility (Details) $ in Thousands		1 Months Ended
Credit Facility (Details) $ in Thousands	Dec. 01, 2021 shares	Mar. 31, 2022 USD ($)	Jul. 31, 2022 USD ($)	Oct. 31, 2021 USD ($)
Debt
Borrowings pursuant to credit facilities, long-term			$ 25,600	$ 37,700
Revolving Credit Facility
Debt
Basis point increase	0.50%
Fixed charge coverage ratio	1.15	1.20
Credit available under borrowing agreement		$ 80,000	100,000
Remaining credit available			$ 16,800
Revolving Credit Facility \| February 2022
Debt
Minimum Consolidated EBITDA		3,000
Revolving Credit Facility \| March 2022
Debt
Minimum Consolidated EBITDA		3,000
Revolving Credit Facility \| April 2022
Debt
Minimum Consolidated EBITDA		$ 5,000
Revolving Credit Facility \| Limoneira
Debt
Investment shares held (in shares) \| shares	1,677,299
Revolving Credit Facility \| BSBY
Debt
Applicable margin (as a percent)		3%
Revolving Credit Facility \| BSBY \| Minimum \| July 2022
Debt
Applicable margin (as a percent)		1.25%
Revolving Credit Facility \| BSBY \| Maximum \| July 2022
Debt
Applicable margin (as a percent)		1.75%

Closure of Florida facility (De

Closure of Florida facility (Details) $ in Thousands	3 Months Ended		9 Months Ended
Closure of Florida facility (Details) $ in Thousands	Jul. 31, 2022 USD ($)	Oct. 31, 2021 USD ($)	Jul. 31, 2022 USD ($) employee
Closure
Operating lease right-of-use assets	$ 55,838	$ 59,842	$ 55,838
Impairment and other charges
Incremental restructuring and related costs			$ 317
Project Uno, Florida facility
Closure
Employee reduction \| employee			140
Operating lease right-of-use assets	4,100	4,800	$ 4,100
Operating lease liability	5,300	6,000	5,300
Impairment and other charges
Leasehold improvements		8,700
Equipment		100
Inventory		600
Employee severance		$ 400
Impairment charges	$ 0		0
Incremental restructuring and related costs			$ 1,000