Mission Produce (AVO) 11 Mar 212021 Q1 Earnings call transcript

Good morning, and welcome to the Mission Produce Fiscal First Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please also note, today's event is being recorded. At this time, I'd like to turn the conference over to Jeff Sonnek, Investor Relations at ICR. ahead. go please Sir,

Act for cause will participating statements good All during Chief presentation are Giles, expectations forward-looking Executive concerning a today's Browne, are is to The XXXX. Officer. on and by statements and Chief statements materially, be risks of the forward-looking Reform as meaning the of of Steve the differ other Mike today assumptions also and Officer, Operating in Barnard, current Such Harbor historical from Q&A. the Officer considered statements presentation events. results are Private future provisions Litigation and forward-looking subject results than facts, of and actual accompanying comments Chief the statements. discussed afternoon. available management's to be you contain within call These well of will that statements beliefs as forward-looking known Today's hosted call could Financial on the statements. the number based unknown Thank and Safe and Securities Bryan uncertainties

call Relations the Some can with GAAP turn measures. of comparable refer also directly included SEC. the at and be these I'd to non-GAAP investors.missionproduce.com like on to and our to today, their most website refer Steve the financial With found measures non-GAAP earnings certain to Investor financial for measures Barnard, reconciliations of We'll now which over to that, CEO. the Company's the are discussed please identified in risks tables release, filings in uncertainties

$XX.X growth XX% high prior and delivered call. 'XX fiscal EBITDA, compared to first our which a the represents for earnings of you Thank us adjusted for met of strong generating quarter, of joining expectations. We the end year, million our quarter

the our network was that retail our the and due to to the of Our network. shocks pandemic-induced the to global caused unfazed back and channels, quality operational Mission industry, disruptions Despite execution to comes solid financial foodservice infrastructure.

and business, ability to proved our our disruptions we relationships, The services and critical customer minimal value-added is the made fact, allowed our that share possible fostering in us stay Company during to new we nimble worldwide. manage with by all growth beneficial demonstrate the the in market consistency and Mission infrastructure, commitment ago. customers been is bring effects, In highly This be to since and to started investing creating to quarter. our first increasing while long-term hallmark existing which has XX years of in innovation

new fiscal fruit sourced is as value-added such ripening our North American storage seasonal border custom markets powerful it cold enhanced other What American our crossing, for include and distribution endeavor third completion XXX,XXX will scheduled a quarter latest in facility square for North the take is the Our capabilities peaks. makes and Mission. the and It and game center, centers, of during our pressure Laredo, Texas distribution of it changer distribution off support which so provides entire our in is of significant construction of 'XX. This foot Mexican network the packaging. is will flexibility

Supporting critical strategy. customer whether we our Provide flexibility the will while for remains to absorb ability other meet to today. in competitive global to unmatched to We changes more or growth have shocks the needs All having precise our their in than even the be needs. footprint service be customers and our system, changes volume, disruptions. are that

capabilities We chain are leveraging distribution and developing our continue global markets. international supply to

direct the providing and Peru, to to working capabilities, present grown sourcing complementary build to the have distribution to source advantage back a which into seasonal this with no access a households growth for what And the such Ultimately, in extremely are We round Mexico, Chinese they Japan assets facilities, grow consumption category or opportunities of than more longer immense our Mission. to retailers today. distribution our of for leveraging Asian in Both a years unique Netherlands, markets XX access Asia, key our is been Avocados through high-quality these of in comes and our substantial long-term as execute are us staple a distribution regions in platform growth Europe. capabilities. a our network. us are around and consistently, luxury, become network fruit with rates ability a US existing product, are ripe through year presence and competitive world. to the we have We've that fraction service to

this customers to value-added bolstering year a challenge. aim have the it are so, welcome retailer as farms continuously your own replicate and do come on We constant to ensure We focus neighborhood our as to our foresight providing favorite expect. trend assessing this sourcing opportunities optimize requires services consistent globally, We our and by to round and that but with to restaurants. to third-party supply, we capabilities in growers, investing control the and well quality supply that

as strategy to well. sourcing mangoes year-round expanded Our is

to complementary to very While our decades we business and find come, for will unique is avocado our and with to relationships in to position ourselves committed which that lend opportunity what results firmly the industry, financial a our organization is we assets, a themselves customers. drive continue think to

owning been in leverage wonderful to we've The mango know harvest that avocados. mangos since our labor operating in cycle genesis and a opposite is, this businesses of The well, Peru. XXXX, by was thing about For hectares workforce. us have those to XXX they of who mangos of the

employer and which round, a employ for operational regional consistent Mission. as us communities also thrive a can advantage such invest So, significant we that the year behind for and can is a workforce

same bigger, yields, became requesting saw Further, base to provided. mangoes higher in be several began similarities for small marketing Mission the consumption the window Both States, the start for our program, the United opportunity customer through and particularly round year in categories, expand customers and As under the are the capitalize see require buyer a we -- we already both demand possess. farms in our to avocados. we we technology trees to decided that in label rise, provide XXXX so an on from The the tends and our mangoes ripening Europe. needs. to demand fully trends to customer a A

Our the customer presence in year grow category based and to capacity on to demand support will measured a pace continue the round sourcing. at

for larger impact existing exceptional we and financial I'll pass While the our supply team. over won't base. recent strengths, that, with profitable have percent provide our Giles It as distribution, it results. also any to transportation growth retailers, profile, With our their relationship commentary it become strengthens avenue can of long-term network additional CFO, some Bryan leverage immediate our an our and does a call our our financial ripening around on we've a for

quarter with drivers Thank I'll of touch within a first you, of afternoon Steve outlook. brief our I'll Then the on snapshot and operating with position fiscal start a conclude segments. that financial January our good around our review of And XXst, some call. to thoughts our XXXX. ended two provide performance everyone the and some on strong

has base. have revenue had was and quarter for in but was price reflects average quarters, XX% mentioned, a over on plan by decrease our customer Total that million in Steve driven fresh past retail partially XXXX, as broader in the a offset million we our period strong foodservice been was leverage avocados driven $XXX.X moment, consistent to from drive our our in supply met our dynamics blue-chip in business like we and touch expectations. industry volume a infrastructure customers. with same volume our trend per-unit the of decrease volume, global place increase the to first $XXX.X which couple revenue we presence managed to representing service fiscal decrease, the global great reiterate prices, Mexico. share last X% a to to compared would that an of by which the The XX% year, sales which has by strong reflected As a targets, I'll

given degree the That of global and as as sought services leadership as changes. can value added of unaffected price forecast While by influences distributor our profits, and certainty. and Mission added or these gross storage largely is said, value such this fresh a marketer global are avocados, with our prices supply control any insulates not fluctuate something demand, distribution, ripening, of position after

and fees to As share. is per first the of priced margin maintain revenue of the was offset growth by as experienced gross to share Net quarter for now income inversely higher against able gross are profit through our of improvement base, as where such, our lower year, market despite profit to revenue, when price compared XX% first environment our other this, related margin a percentage in we margin measured volume, prior XX% lower higher dollars such our a driving decrease words, quarter total a volume in to XX% points increased XXXX to revenue. In profit for of $XX.X or with quarter million variances required gross $X.X gross lower that net million we SG&A Company. XXX compares first a non-operational $X.XX premiums first employee-related decreased diluted XXXX due two income affected diluted year. period quarter professional public per million same largely This accordingly. insurance costs net liability a expands of or the $X.X in and the million as higher $X.XX $X.X for last income. to Notably, basis

of subsidiaries to million positive proportionate year blueberry First the This from in Avocado, compared harvest $X.X our period, reflects per-unit equity current experienced earnings in from yields strong on unconsolidated period. in in which our and investment margins. nominal Laredo, their and was impact which Henry experienced higher earnings returns pricing year the prior the equity earnings

first period the last for million the income to compared tax million or XXXX, a figures, equity XX% of is $X.X last these diluted first tax quarter $X.X income million or of liabilities, the diluted per corporate same $X.X the $XX.X adjusted expense Note not. tax fiscal increased expense Adjusted rates deferred EBITDA due of the compared is to changes share deferred in net for the that future charge million first is share was $X.X quarter method period million for while year. to or I in revaluation included tax highlighted in net for quarter that $X.X per Peru. deferred Adjusted to year. $X.XX the adjusted non-cash $X.XX influencing variable the million same for of just Second to income income income and charge XXXX, Company's assets net

EBITDA increased the due XX% our revenue is segment to by Marketing decreased is net volume the I costs with of Distribution for gross drivers growth. average terms fact Distribution favorable due the offset volumes the for within for With segment to higher segment higher $XX.X lower and segment. similar that and are per pricing In our of This to those adjusted sales million XX% of results. lower all to $XXX.X described Marketing of third-party combination box million and consolidated fixed-cost partially our drivers; The being correlates that overhead. Segment a leveraging packaging generated that this to per-unit and margins, virtually quarter.

our manage dynamics segment farms quite own different that those business represents Distribution this International Our primarily our we are and Naturally, of Marketing Peru. the in Farming in segment. from

scale our we are operations and to Here, ability success. current profitable behave future manner and an to and in central efficient as an our operator our

more strategic and Mission. Distribution this to a exposed segment, Marketing this are we to in highly is our While price for compared initiative segment,

base key growing keep can't requires today's and growing customers of demand. with year-round up global regions supply, international Our

establish to close that a and commitment through own a a able decade to made operations. we presence to customers to sell where are our ago supply, Distribution we Marketing our result, segment we a control As

sales in avocados of the our the quarter maturing we runs producing our within yield season and growth come will year. generally that look alignment EBITDA in first subsequently quarters for year, Peru. short for the farms avocado in Farming concentrated each our term August typically from the by be improvement orchards, with fiscal International our the run, will realized fourth online growth for Nominal by forward, harvest affiliated mature. additional dictated will third International season and premium in within be Adjusted through while segment harvest supported in longer acreage As of is April since Farming were

million model cold Shifting quarter. loss increases primarily to to $X.X a and to of primarily adjusted XX% first revenues by improved XXst, of million compared overhead XXXX. to the cash which service were us million is equivalents of noted the past our provided with was after to to intercompany and decade, eliminations great ratio Segment prior very to by year. fixed-cost has the million out historically EBITDA $X.X net our increased improve as Despite support our infrastructure financial due objectives the volumes off-season. required the higher net million, Total position; investments $XXX better as quarter, generated which the in leverage segment long-term harvest XX% cash and $X.X significant for capabilities. over driven sales $XXX higher service XXst, For International Farming were increased the global blueberry built flexibility January debt packing $XX.X the footprint, flow, $X.X during compared enable Sales storage as above, cash operating million. healthy. growth sales to has leverage million and financial XXXX, avocado our we October sourcing Mission's to strong us business

volume, working capital source Mexican-sourced resulting which shorter cash markets. flows in operating payment other than are for be nature have by Our and terms influenced timing shifts from can temporarily seasonal

are the year. compared in income the fiscal in million half improvement of not activities shifts year, construction variables the can but indicative operating working sale fiscal net our $XX.X orchard to for XXXX, million of same positive the was for quarter higher cash that in were in our million changes. Capital compared Guatemala. changes $X.X Peru we operating influence inventory for cash for Additionally, $X.X new crops our year, is $XX.X last development and in flow concentrated year-over-year second cash same improvements year. expenditures first for growing in cause net the flows, used expect the and first $X.X operating can The fiscal to period center Texas last and and to of capital. XXXX, building that distribution period the of million were Laredo, quarter in for realize land These quarterly for in the we performance full reflected Net million of it favorable

our Our facility Laredo expand will in North America. capacity distribution

in While years. our future farming investments will provide avocado supply

due providing an some at the up our period of volume year. point second not of guidance our but XX% terms quarter-to-date are the of assumptions, quarter-to-date fluidity end to outlook; are inform for through of this trending market In Consolidated drivers approximately the to year. second we versus update February the prior the formal on of modeling providing is

as to which prudent. the Importantly, of we would disruption anomalies, the positive assume from forward high prior year considerable of quarter, variance the in balance look prior a year periods the due exclude If normalization range we the to we volumes, we those the is have quarterly pandemic. the period a believe trend in single-digit

Marketing progression prior To pricing XX% However, of given sales. low prices realized approaching quarter XX%. which Sales I'll we year. versus avocado the quarter-to-date the volume our volumes, is average first period the actual the during experience for February put approximately in second monthly for this may actual quarter, follows trending our down perspective, Distribution the for share segment and through end for year prior growth

an realized price pound. average we sales per For November, of $X.XX

$X.XX per which $X.XX quarter. was February pound. to December, for a second the realized first the in pound is of pound averaged pound we for per the was This For per December. January lows quarter, and it $X.XX per built was pricing $X approximately it off In

any we look balance the pricing based As available point market but the bias volume of will at the time. this the momentum on to to for is course, dictate continue, quarter, of in

some harvest, fiscal this adjusted balance are insights some full thinking dictates volume. terms as like starts our for the to key variables EBITDA, of In influence we with performance will XXXX. which of to about we of Naturally, would that year the share how the

crop of volume the based range to upon growth We single-digit assessments high industry track current expect annual sizes. in total

Peruvian good As fiscal is show shift evidence improvement of second by crop orchards. existing the year, come online. seeing that year, prior seeing half we are is our the start into crop we we expected our The news yield growth versus strong that to driven in Peru our

pricing below environment his in levels. year indicated remains improving, Steve still but the As remarks, prior is well

what half and late-season market of segment, to market signs smaller a provide due gradual guess on a to stop of indicate to expect instead the which While to some fiscal we pricing, on California pricing Regardless through more in the may what that and on due consistency we Marketing terms early comes it a expectations revenue experience harvest may dynamics. driven pass for is Distribution of call Mexican will we make extend year, line, to in market translate than by a margins crop, we to control see so of I'd re-emphasize the have with of line, the to better and like changes too forces. improvement again, smaller that adjusted you short EBITDA our a our offering our the price, second we within view of

metric year-out. with of box to margins. is open the the dynamics our you. the through Operator, goal continue look That marketplace, strive concludes We and year-in of a That at we what possible call for to to lens broader but it remarks. prepared Q&A. this a long-term Please over isn't maximizing given always now per

Thank be Brian Davidson. the you. Please At session. this proceed with a [Operator comes first time, from Your with of we'll question D.A. line question. your Instructions] Holland conducting question-and-answer

the afternoon congrats results. Yes, on strong and thanks. Good

know with forecast for in point So, like you don't by -- at hearing I reduced if crop. that. jives seeing. that you to give what confidence. California California know XXXX recently what are that know don't Avocado seeing I the something Commission I curious this or X% you're the you its

just I'll forward? there here the and of we as you give the maybe confidence moving stop parts that just So, look kind

ago. lower a got back-up we've Yes, winds high anticipated got two much case, little plans crop. like this. in we due Mission's originally to But support Peru month the than has can bit is I'll in heavy they specifically, that had crop larger a start and some or Mike a

supply. forward in a So, position as as going feel pretty good far we're we

commission -- XXX weather million I with so. I The out probably events, pounds prior and Steve. were recall, concur of came at to we California for forecasted you think, pounds while the these with million about adjusted had still XXX kind numbers of some they

are under million XXX those down pounds. Now, numbers well

year, right with nice but some help to with California, -- out sizing fruit, of the for for rains California there developing seems will here which natural have us a this window harvest. be We in now

color. And I'm the in appreciate repealed comments I me going new the which December. this I've for avocado there Yes. half one Peru to investment read promotion -- you limit from law, was agrarian in half about avocado me, in where, one reading then, the other Director excuse I, this producers you -- is know of plantations. know,

just provide you it's even is a a and around limited what's If if I'm around happening negative you, the a there? curious being to investments there? extent maybe maybe the context could you from standpoint, maybe positive, of bit if impacted competitive So, this or just a little dynamics

-- to Yes, We're I'll investment, weren't that tax challenges I it's that already really aren't and which future food program or in think slow in address there with off it of growth. starting down well it road creating side that the up I to promotion think and little a yet. that with it's now tax it, and big people some invested they from a but now bit volume. that harvest social let to backing both. where able I the they're the But think will create had, investment did. down And are keep we're Bryan they money situation was

probably it's think for breath. time them catch a their to I So,

for the stick it's to investors we'll our to to plan. going in us. new game and think our I good It's limit case,

build until we deferred investment and And related land XXXX. themselves over that actually or to rate liabilities the hit back of long-term, graduated nature. that million in of and our did, acquisition we related and mean, themselves of we revaluation they that very never to I the to was operation in That time. really revaluation tax of big The first step took, have, we $X.X the during line unless Yes, up the and the that are Peruvian or quarter, these it some to things relates property. the will sold really related tax

any unwind know number over have the but period acquisition million a rates of probably relatively $X.X other won't to impact $X.X But truly up our related those on long is So transaction you again, time, that that liability are tax step term. book of the XX%, that over and it we again million results. a going immediate to longer is, on did really will

luck forward. you. Appreciate that Thank going Best color. of

of Palmer with next with J.P. from your Morgan. line comes question Please Your proceed question. Tom the

for Hi on per get was wondered to ask we detail profit to first guys, the thanks in what very to the maybe for how in it quarter, saw last thus either was but the pound had to and pricing question. business second disclosures helpful and I compares relative Wanted how it trending volume the second quarter, if -- the far quarter? year the Distribution or you here in

it's now. right I very think early

on numbers half of we lies preliminary have than us. that so We have still of quarter ahead the month more first and our

increases, on today were it really to I quarter, did kind price bit the I customers the get when where at I part. saw same increases volatility moves seeing very line. think be the throughout towards it's will of trend a the little at the it's a of we back where than get price our quickly. the first terms margins in to of of we're going challenging the with end quarter, kind for rate, the they in it's that tighter end a in earlier of of to bit this think the say some say, us difficult Mexico our up And the of market

the ahead are we're into as that challenges, we manage per past and insurmountable don't long run on it. that's there some margins, we've are where that us. I in it's there challenges haul. box think mentioned again, very some But focused we'll of where, So, with term anything short lie the windows

was month, what wasn't don't it said, with of -- bad line I first Mexico with we'd starting can we the like market February to in ahead harvest quarter, California Peru get QX. think too bridge see the and what April us out to is stabilize, I when we and in far that March then volumes volumes certainly think our but that in a us, ran of growers heavy to to have I

Okay, the thanks for picture update other we about sourcing been. in know stabilizing maybe color or supply thinking may progression last then, it the of we of look supply and a there. And points. this when off but get call, as just update it, begins, just I as has switch bit, quite for not earnings be much data we growing comes terms regions an as on Mexico the on to little the should covered be an and Maybe just how that picture

Mexico too harvest will comes Mexico get and window, early start into off seize as for continue albeit to as this it's I summer. to lesser think we'll we the at early rates So, and California spring Peru.

going and Mexico harvest here spring I price also July, think West, We're just early new much that, strong California know right fuel fruit. bit June in getting to going and the cycle. a that metrics bit the -- early going September. out and size into Peru and even of will very through there's thing So And has of ready now be we then a of with a have little little But are up pretty time maybe and now it's June, August, get a and a growers battling of beyond to and pricing go. bit local the the little here back right kind of I crop into little bit, then you quality Mexico think

Understood.

going Peru is going filling that have to this fill of very of to be a program. this with Mexico, terms is current think in very I California situation But, Well, nicely. course, nice we --

guys. Thanks Okay.

Thank you.

of the Stephens. Ben Bienvenu with Your question. your question next Please comes from with proceed line

good guys. afternoon Hi,

Hi, Ben.

-- on that impact damages full as any that's question. the want there just And Any the relates to and recent my I now. Laredo had and storms, of the leave operationally to, ramping ask that it that's for facility? it I'll remaining first

thing, feed off time of because can and resolve, We've great to of one whole is, that we to product and that. our Texas freezing our still network there, things on kind thinking softer fortunately, it itself thanks pipes out, of satisfied move will open issues and let's the Laredo some the and management without our Dallas we it there have the going any and bit about around, but for we would customers Well, through We We're to up and of have that lifeboat -- April of will until moving, about we've can be is but state. rough facility, time keep go. little Laredo be get in to it up help put got and -- everything whatsoever. going take and and Dallas did schedule some a in through to be Dallas a place back up ready keep XXnd. had running. issues

see then And you through also volume along we it any be probably those hear your that fits -- demand. recovery. what for margin second offer curious to what by starts to Okay, is, varies as your My very helpful. means in be that It's lines, question and you color year? expect but could geography, and know we're within mix I relates would as I'd the great. as know, to seeing the well foodservice us foodservice develop of how and business and early your move you you're

they about mean actually not take is consumption, think and To our business as I which order percentage and phone on our foodservice up, computers car their pick and business, your the up it represents of volume the out had of with. up mostly, our adding -- all has computer gone have -- numbers totally stores. get even out foodservice that Well, set I in half because gone up to

there's seen starting they're that not lot direction business The a although we a in they big dropped nationwide of picked bit, more to their our off, not in some the in prolapse, which especially up, distributors is even where has as wholesale really are because come back up where category, business network. big We exposed they category, numbers a has right So, customers But haven't foodservice of be. move a foodservice taken a the had the it's drop hit. were retail. and hit need when then starting tablecloth foodservice but to export are little was of that actually we has it the category, likely to white foodservice within foodservice

thanks. Best Okay, of luck.

America. of proceed of next with Your question your Bank comes Galbo the with from question. Please Peter line

and guys, XX% you up was ask be know for pending February, the to for Bryan, down, maybe afternoon. question. do you wanted to some guess, I minus good it encompassed were of on guys as taking than you quarter, better something the have quarter-to-date, down decline. Thank the sure just that, pricing, here. also XX% I then, of low would things know, should Hi that it's recovery in watermark though April, maybe with the the public bit that, it's, was a make worse kind data but about that driving think reported wanted outpacing you just just we what the of And the you out pick USDA If so can heard March than we a I quite it even data understand, I see, if to whether data right. Mexico

April. the at when were move up we in trend Ideally, we performance you month when nice the you saw certainly March as our we we quarter. back, look we that through will continue seeing of Sure February, we from what a know thing. first during and know Yes, look

at then in into here leading So, really the pandemic-related shutdowns right and -- May gentle to we as look December April post of is year, I When pricing probably feeling it move where the it was we relatively time the post started of that year-over-year, into the prices low this was experiencing through point. last a mean balance summer very throughout kind were and year. during the that saw we high of we I kind think decline

a a little customer whole. more is a tend bit do -- retail-focused. the So, I different be seeing our industry we're think We base to little than as

pretty the outside quarter business, our We US. sales came from have XX% revenue export during first also the a driving supporting of roughly

what you an So, on to soften mix can think are differences on lower industry terms some year-over-year based to. are But in it's lean a things they're kind the their trends some But we're those lot I of customer company-by-company I doing. help of basis the selling business other a a we and of and a our where of we we're the do price blow, that have upon think of going broad parts whole, that know basis experiencing, see you're the on, again to consistent. as

to, is avocados this add refers we're not add, just is Bryan the Peru, that, exporting Mission Mike, nugget to South a just we're just from these exports from from that And of it's sourcing. Israel, one little or that lot globally or on on end Mexico Africa, California of

to helping it's that So, growth. XX% fuel

Chile. Colombia,

in supply place. that no infrastructure Yes, there doubt. we we the do put global without markets today is the Couldn't support that

Got it, that's okay. helpful. No,

just, just first maybe impact as being question the I Just any on it maybe a two make the then of the question it higher Peru, step rate on radar. seemed the -- harvest there the result but quarter, the there as from you as and Good forward. know just impact sure, a on tax adjusted ones, tax Ben's second know going just a in something hear guys. change in was should adjustment like to is very a much no to a you other of weather. in rate out, follow-up the Mexico incorporating tax we to is was quick also that wanted result Thanks to be now colder

plows a in didn't couple in piece We on we harvest, was into where because snow this any real the for bit -- trucks Texas. days there, getting border Mike. lot the roads of first have interference a grab have interference Texas of is that, have and don't I'll little the and and of So, across just into a of of they

but our through nice to were on okay. sand, nicely get system it manage able worked through pull it to an because So, there wasn't much we inventory, harvest, But, through your impact. we of and and were question a

[Indiscernible].

that earnings over the year leads and We to rate -- XX% was step that aggregate replacement is increases we from saw That's the a that little Historically increase Peru. tax rate agrarian of They've discussed tax in and What in rate. calendar time. talk on we've right. about a our tax agribusiness based to the our XX% repeal tax it's graduated And law XXXX. starting in statutory law Peru a same see be that they I'll earlier. in XX% had

of that related revalue tax of the impact but accounting of purchase going tax current couple non-cash tax, certainly land with related we a entry the had still of to it's expenses, but the a it, before out deferred it's chunk with us. driven years a good the one-time has our deferred on side deferred the revaluation to So,

So, those as our -- to areas time, United from I do watching We're monitor we're well. Peru, watchful income Mexico, constantly any tax we're changes but Peru, all on as where going a our the Peru, Peru, eye potential the two rates the locations. there regularly also in rate, in over the are think tax proportions different primary business, time, is United tax different evolve forward going we keeping States States, of over will Calif certainly and rates jurisdictions the US come rate

very much, Okay, that's helpful. Thanks Bryan.

question Sweeney comes Please Gerry of from with next proceed Your line with ROTH Capital. your question. the

for afternoon, call. Good Thanks taking guys. my

business hard of But, quickly, since, a different look the more mind touch assets? a and but a how of keeping Just it's the strategic competitive little little avocados a just want in bit just from now. pricing we're is -- on to huge is pretty did here. that we that to a at Just do move and we understanding interested mangoes your part it's well, as my more not of is leverage the market,

mangos here Yes, at yes. United the parts world, we we'd of higher. from there force Asia first of season That mangos the it's and fruit largest look And the Gerry. We -- -- keep intact. to States. planned in it, avocados mind the in just consumed are much in and part like there is our not keep Europe the they labor in we Peru But and labor to come off that leverage help

so them year. keep have don't ranch, a retrain the group to we whole next on will new We

into it, base, we're program. retailers, cost for beneficial it's the consistent scrubbers that the retailere, our i.e., So ripe those mango customer big and us learning etcetera, we as got are creating high-quality a

that have in assets already over category may Europe. the in So, decision And add on most model. cases, really place, only spots, the whole put but big on but here, we depending the distribution Asia mean the to there the we whole a top. It's and in fence. ripening a be the was have of win-win and sides been leader. the in us to in will industry both And how gets, consumption this lacking the items big problem, the here not but it nice has to I

think So, was to I for up and while anyone be going little a it's that I to get -- we're the it's try but up leader. everywhere take it's it's, going challenge, It's there, and to if step to think us. because

avocado If growers. on industry the that, to the fragmented mango highly similar and it's

well. mark Just side and side the the M as growing the as curious guess D competition I well like as,

I think much. so very probably more

as for And go really that's going to side reaching lot -- players. there. nice on side So, And but trying downstream region of Board. the that We're a were X the a going harvests doing going one governed -- experts good because a sourcing so work to have get XX-week one lot the it's shift small fragmented. much. the on have lot lot -- really another in of is quite with the industry cases, has been another where and the you matured going is that's have the and There growing to of regionally advent to by for -- is there whatever mango some us to sourcing really one from to from we've actually, Mango to a invent oligopoly us think the we a Scott we're to not they I a handling, be a lot mature. it's work of been doing more ripening, within as an USDA of and Board business far and already It's to be you advantage

think it's a I ready So, leader. for

States value to, Mission find come best in around I and to think we everyone leader legitimize and ready XX a out industry same very get United did guy is We the like to the in added and for there the the talked years category really to we ago. guy. looked much pointed the could

something in in that fact farm busy, ends So the to we we the crew hectares the largest hired just world. XXX is being and mango planted him Peru keep up the

time. --and didn't of that we is interest lot So a at in know the But there it.

I you lot helpful. the that to and similarities avocados. Perfect, of Yes. similar, very especially was details on how very just, why know a big the to

back XXXX is guys. a Thanks especially line. it. [indiscernible]. lot in So, appreciate something jump I'll I

conference gentlemen, And at and any turn questions. session question-and-answer further and the the I'm call remarks. closing end showing management time, to this I'd ladies no back for like over to

for just Produce. Mission like everyone to their Well, in thank I'd interest

it. ahead today. for you an have we're looking future and exciting we Thank time your to think I forward

call. and you thank do conference gentlemen We Ladies for that concludes today's attending.

your disconnect now may lines. You