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Information regarding our operations in different segments
 6 Months Ended
Apr. 30, 2014
Segment Reporting [Abstract]  
Information regarding our operations in different segments

2. Information regarding our operations in different segments

We report our operations in three different business segments: (1) Fresh products, (2) Calavo Foods, and (3) RFG. These three business segments are presented based on how information is used by our Chief Executive Officer to measure performance and allocate resources. The Fresh products segment includes all operations that involve the distribution of avocados and other fresh produce products. The Calavo Foods segment represents all operations related to the purchase, manufacturing, and distribution of prepared products, including guacamole and salsa. The RFG segment represents all operations related to the manufacturing and distribution of fresh-cut fruit, ready-to-eat vegetables, recipe-ready vegetables and deli meat products. Since it has not commenced principal operations, FreshRealm, LLC (FreshRealm) is currently considered in its development stage. Once principal operations commence, FreshRealm is expected to become our fourth segment. 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. The following table sets forth sales by product category, by segment (in thousands):

 

     Three months ended April 30, 2014     Three months ended April 30, 2013  
     Fresh
products		     Calavo
Foods		     RFG     Total     Fresh
products		     Calavo
Foods		     RFG     Total  

Third-party sales:

                 

Avocados

    $ 106,713      $ —        $ —        $ 106,713      $ 95,203      $ —        $ —        $ 95,203   

Tomatoes

      12,590        —          —          12,590        12,375        —          —          12,375   

Papayas

      3,139        —          —          3,139        3,146        —          —          3,146   

Pineapples

      1,858        —          —          1,858        2,152        —          —          2,152   

Other fresh products

      80        —          —          80        150        —          —          150   

Food service

      —            12,674        —          12,674        —          10,578        —          10,578   

Retail and club

      —            5,533        56,339        61,872        —          4,311        42,388        46,699   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total gross sales

      124,380        18,207        56,339        198,926        113,026        14,889        42,388        170,303   

Less sales incentives

      (428 )      (3,090 )      (514 )      (4,032 )      (538 )      (2,685 )      (744 )      (3,967 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net sales

    $ 123,952      $ 15,117      $ 55,825      $ 194,894      $ 112,488      $ 12,204      $ 41,644      $ 166,336   

 

     Six months ended April 30, 2014     Six months ended April 30, 2013  
     Fresh
products		     Calavo
Foods		     RFG     Total     Fresh
products		     Calavo
Foods		     RFG     Total  

Third-party sales:

                 

Avocados

    $ 196,077      $ —        $ —        $ 196,077      $ 169,285      $ —        $ —        $ 169,285   

Tomatoes

      19,096        —          —          19,096        19,336        —          —          19,336   

Papayas

      6,424        —          —          6,424        6,380        —          —          6,380   

Pineapples

      2,755        —          —          2,755        3,171        —          —          3,171   

Other fresh products

      144        —          —          144        213        —          —          213   

Food service

      —          22,645        —          22,645        —          20,502        —          20,502   

Retail and club

      —          11,055        112,872        123,927        —          8,971        85,666        94,637   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Total gross sales

      224,496        33,700        112,872        371,068        198,385        29,473        85,666        313,524   

Less sales incentives

      (822 )      (5,727 )      (1,460 )      (8,009 )      (830 )      (5,339 )      (1,520 )      (7,689 ) 
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Net sales

    $ 223,674      $ 27,973      $ 111,412      $ 363,059      $ 197,555      $ 24,134      $ 84,146      $ 305,835   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

 

     Fresh
products		      Calavo
Foods		      RFG      Total  

Three months ended April 30, 2014

            

Net sales

    $ 123,952       $ 15,117       $ 55,825       $ 194,894   

Cost of sales

      114,269         11,294         50,354         175,917   
  

 

 

     

 

 

     

 

 

     

 

 

  

Gross margin

    $ 9,683       $ 3,823       $ 5,471       $ 18,977   
  

 

 

     

 

 

     

 

 

     

 

 

  

Three months ended April 30, 2013

            

Net sales

    $ 112,488       $ 12,204       $ 41,644       $ 166,336   

Cost of sales

      108,422         7,901         38,477         154,800   
  

 

 

     

 

 

     

 

 

     

 

 

  

Gross margin

    $ 4,066       $ 4,303       $ 3,167       $ 11,536   
  

 

 

     

 

 

     

 

 

     

 

 

  

For the three months ended April 30, 2014 and 2013, inter-segment sales and cost of sales for Fresh products totaling $8.6 million and $8.8 million were eliminated. For the three months ended April 30, 2014 and 2013, inter-segment sales and cost of sales for Calavo Foods totaling $3.9 million and $3.4 million were eliminated.

 

     Fresh
products		      Calavo
Foods		      RFG      Total  

Six months ended April 30, 2014

            

Net sales

    $ 223,674       $ 27,973       $ 111,412       $ 363,059   

Cost of sales

      207,783         21,558         101,051         330,392   
  

 

 

     

 

 

     

 

 

     

 

 

  

Gross margin

    $ 15,891       $ 6,415       $ 10,361       $ 32,667   
  

 

 

     

 

 

     

 

 

     

 

 

  

Six months ended April 30, 2013

            

Net sales

    $ 197,555       $ 24,134       $ 84,146       $ 305,835   

Cost of sales

      186,720         16,743         77,712         281,175   
  

 

 

     

 

 

     

 

 

     

 

 

  

Gross margin

    $ 10,835       $ 7,391       $ 6,434       $ 24,660   
  

 

 

     

 

 

     

 

 

     

 

 

  

For the six months ended April 30, 2014 and 2013, inter-segment sales and cost of sales for Fresh products totaling $17.6 million and $18.5 million were eliminated. For the six months ended April 30, 2014 and 2013, inter-segment sales and cost of sales for Calavo Foods totaling $7.6 million and $6.5 million were eliminated.