LMNR 10-K Fiscal year ended Oct. 31, 2019

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•	changes in laws, regulations, rules, quotas, tariffs and import laws;

•	adverse weather conditions, natural disasters and other adverse natural conditions, including freezes, rains, fires and droughts, that affect the production, transportation, storage, import and export of fresh produce;

•	market responses to industry volume pressures;

•	increased pressure from disease, insects and other pests;

•	disruption of water supplies or changes in water allocations;

•	product and raw materials supplies and pricing;

•	energy supply and pricing;

•	changes in interest and currency exchange rates;

•	availability of financing for development activities;

•	general economic conditions for residential and commercial real estate development;

•	political changes and economic crises;

•	international conflict;

•	acts of terrorism;

•	labor disruptions, strikes, shortages or work stoppages;

•	loss of important intellectual property rights; and

•	other factors disclosed in this Annual Report.

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•	Our agricultural properties in Ventura County are located near the Pacific Ocean, which provides an ideal environment for growing lemons, avocados and row crops. Our agricultural properties in Tulare County, which is in the San Joaquin Valley in Central California, and in Yuma, Arizona, are also located in areas that are well-suited for growing citrus crops.

•	Historically, a higher percentage of our crops go to the fresh market, which is commonly referred to as fresh utilization, than that of other growers and packers with which we compete.

•	We have contiguous and nearby land resources that permit us to efficiently use our agricultural land and resources.

•	In all but one of our properties, we are not dependent on State or Federal water projects to support our agribusiness or real estate development operations.

•	We own approximately 94% of our agricultural land and take a long view on our fruit production practices.

•	A significant amount of our agribusiness property was acquired many years ago, which results in a low-cost basis and associated expenses.

•	We have a well-trained and retentive labor force with many employees remaining with us for more than 30 years.

•	In our fresh lemons and lemon packing segments, our integrated business model with respect to growing, packing, marketing and selling lemons allows us to better serve our customers.

•	Our lemon packing operations provide marketing opportunities with other citrus companies and their respective products.

•	Since 2010, we have achieved and maintained GLOBALGAP Certification by successfully demonstrating our adherence to specific GLOBALGAP standards. GLOBALGAP is an internationally recognized set of farm standards dedicated to “Good Agricultural Practices” or GAP. We believe that GLOBALGAP Certification differentiates us from our

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We have made investments in ground-based solar projects that provide us with tangible and intangible non-revenue generating benefits. The electricity generated by these investments provides us with a significant portion of the electricity required to operate our packinghouse and cold storage facilities located in Santa Paula, California and provides a significant portion of the electricity required to operate four deep-water well pumps at one of our ranches in Tulare County, California. Additionally, these investments support our sustainable agricultural practices, reduce our dependence on fossil-based electricity generation and lower our carbon footprint. Moreover, electricity that we generate and do not use is conveyed seamlessly back to the investor-owned utilities operating in these two markets. Finally, over time, we expect that our customers and the end consumers of our fruit will value the investments that we have made in renewable energy as a part of our farming and packing operations, which we believe may help us differentiate our products from similar commodities.

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We have made various other investments in water rights and mutual water companies. We own shares in the following mutual water companies: Farmers Irrigation Co., Canyon Irrigation Co., San Cayetano Mutual Water Co., Middle Road Mutual Water Co. and Pioneer Water Company, Inc. In 2007, we acquired additional water rights in the adjudicated Santa Paula Basin (aquifer) and in September 2013 we acquired water rights in the YMIDD with our acquisition of Associated Citrus Packers, Inc. (“Associated”). In February 2017, we acquired water rights with our purchase of 90% of PDA and in July 2018, we acquired additional water rights in Chile with our acquisition of San Pablo.

•	Our housing and land rentals provide a consistent, dependable source of cash flow that helps to counter the volatility typically associated with an agricultural business.

•	Our housing rental business allows us to offer a unique benefit to our employees, which in turn helps to provide us with a dependable, long-term employee base.

•	Our leased land business allows us to partner with other agricultural producers that can serve as a profitable alternative to under-producing tree crop acreage.

•	Our organic recycling tenant provides us with a low cost, environmentally friendly solution to weed and erosion control.

•	Our real estate development activities are primarily focused in coastal areas north of Los Angeles and south of Santa Maria, which we believe have desirable climates for lifestyle families, retirees and athletic and sports enthusiasts.

•	We have entitlements to build approximately 1,500 residential units in our East Area I (Harvest at Limoneira) development.

•	We have partnered with an experienced and financially strong land developer for our East Area I residential master plan development.

•	Several of our agricultural and real estate investment properties are unique and carry longer-term development potential.

•	Our East Area II property has approximately 30 acres of land commercially zoned, which is adjacent to our East Area I property.

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Acquire Additional Lemon Producing Properties .  To the extent attractive opportunities arise and our capital availability permits, we intend to consider the acquisition of additional lemon producing properties. In order to be considered, such properties would need to have certain characteristics to provide acceptable returns, such as an adequate source of water, a warm micro-climate and well-drained soils. We anticipate that the most attractive opportunities to acquire lemon producing properties will be in South America and in the San Joaquin Valley near our existing operations in Tulare County, California.

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Expand our Sources of Lemon Supply. Peak lemon production occurs at different times of the year depending on geographic region.  In addition to our lemon production in California and Arizona and lemons we acquire from third-party growers, we have expanded our lemon supply sources to international markets such as Mexico, Chile and Argentina. Increases in lemons procured from third-party growers and international sources improve our ability to provide our customers with fresh lemons throughout the year.

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Increase the Volume of our Lemon Packing Operations .  We regularly monitor our costs for redundancies and opportunities for cost reductions.  In this regard, cost per carton is a function of throughput. We continually seek to acquire additional lemons from third-party growers to pack through our plants. Third-party growers are only added if we determine their fruit is of good quality and can be cost effective for both us and the grower. Of most importance is the overall fresh utilization rate for our fruit, which is directly related to quality.

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Expand International Production and Marketing of Lemons .  We estimate that we currently have approximately 10% of the fresh lemon market in the United States and a larger share of the United States lemon export market. We intend to explore opportunities to expand our international production and marketing of lemons. We have the ability to supply a wide range of customers and markets and, because we produce high quality lemons, we can export our lemons to international customers, which many of our competitors are unable to supply.

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Construction of a New Lemon Packinghouse . Over the years, new machinery and equipment along with upgrades have been added to our original packinghouse and cold storage facilities. This, along with an aggressive and proactive maintenance program, has allowed us to operate an efficient, competitive lemon packing facility. A project to double the capacity and increase the efficiency of our lemon packing facilities became operational in fiscal year 2016. We expect that this project will ultimately increase fresh lemon processing capacity and lower packing costs by reducing labor and handling inputs.

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Opportunistically Expand our Plantings of Oranges, Specialty Citrus and Other Crops .  Our plantings of oranges, specialty citrus and other crops have been profitable and have been pursued to diversify our product line. Agricultural land that we believe is not suitable for lemons is typically planted with oranges, specialty citrus or other crops. While we intend to expand our orange, specialty citrus and other crops, we expect to do so on an opportunistic basis in locations that we believe offer a record of historical profitability.

•	Opportunistically Expand our Plantings of Avocados . We may opportunistically expand our plantings of avocados primarily because our profitability and cash flow realized from our avocados help to diversify our fruit production base.

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Maintain and Grow our Relationship with Calavo . Our alignment with and ownership stake in Calavo comprises our current marketing strategy for avocados. Calavo has expanded its sourcing into other regions of the world, including Mexico, Chile and Peru, which allows it to supply avocados to its retail and food service customers on a year-round basis. California avocados occupy a unique market window in the year-round supply chain and Calavo has experienced a general expansion of volume as consumption has grown. Thus, we intend to continue to have a strong and viable market for our California avocados as well as an equity participation in Calavo’s overall expansion and profitability.

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Diversify our Agribusiness Portfolio with the Development of a Vineyard at Windfall Farms. Our Windfall Farms property has approximately 500 acres suitable for vineyard development. During fiscal years 2014 and 2015, we planted approximately 200 acres of vineyards and an additional 100 acres in fiscal year 2017. We intend to continue to plant vineyards at the property up to the 500 suitable acres. We believe the vineyards are consistent with our agribusiness strategy and provide diversification to our crop production and operating results.

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Secure Additional Rental and Housing Units .  Our housing, commercial and land rental operations provide us with a consistent, dependable source of cash flow that helps to fund our overall activities.  Additionally, we believe our housing rental operation allows us to offer a unique benefit to our employees. We have built and leased 65 out of a total of 71 approved additional units through infill projects on existing sites and groupings of units on new sites within our owned acreage. We plan to build and lease the 6 additional remaining units in fiscal 2020.

•	Opportunistically Lease Land to Third-Party Crop Farmers .  We regularly monitor the profitability of our fruit-producing acreage to ensure acceptable per acre returns. When we determine that leasing the land to third-party row crop farmers would be more profitable than farming the land, we intend to seek third-party row crop tenants.

•	Opportunistically Expand our Income-Producing Commercial and Industrial Rental Assets .  We intend to redeploy our future financial gains to acquire additional income-producing real estate investments and agricultural properties.

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Selectively and Responsibly Develop our Agricultural Land . We recognize that long-term strategies are required for successful real estate development activities. We thus intend to maintain our position as a responsible agricultural landowner and major employer in Ventura County while focusing our real estate development activities on those agricultural land parcels that we believe offer the best opportunities to demonstrate our long-term vision for our community.

•	Opportunistically Increase our Real Estate Holdings .  We intend to redeploy our future financial gains to acquire additional income-producing real estate investments and agricultural properties.

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•	Some of our competitors may have greater operating flexibility and, in certain cases, this may permit them to respond better or more quickly to changes in the industry or to introduce new products and packaging more quickly and with greater marketing support.

•	We cannot predict the pricing or promotional actions of our competitors or whether those actions will have a negative effect on us.

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•	the seasonality of our supplies and consumer demand;

•	the ability to process products during critical harvest periods; and

•	the timing and effects of ripening and perishability.

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•	economic and competitive conditions;

•	changes in laws and regulations;

•	operating difficulties, increased operating costs or pricing pressures we may experience; and

•	delays in implementing any strategic projects.

•	incur additional indebtedness;

•	make certain investments or acquisitions;

•	create certain liens on our assets;

•	engage in certain types of transactions with affiliates;

•	merge, consolidate or transfer substantially all our assets; and

•	transfer and sell assets.

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•	employment levels;

•	availability of financing;

•	interest rates;

•	consumer confidence;

•	demand for the developed product, whether residential or industrial;

•	supply of similar product, whether residential or industrial; and

•	local, state and federal government regulation, including eminent domain laws, which may result in taking for less compensation than the owner believes the property is worth.

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•	Construction delays or cost overruns that may increase project costs;

•	Receipt of zoning, occupancy and other required governmental permits and authorizations;

•	Development costs incurred for projects that are not pursued to completion;

•	Earthquakes, hurricanes, floods, fires or other natural disasters that could adversely affect a project;

•	Defects in design or construction that may result in additional costs to remedy or require all or a portion of a property to be closed during the period required to rectify the situation;

•	Our ability to raise capital;

•	The impact of governmental assessments such as park fees or affordable housing requirements;

•	Governmental restrictions on the nature and size of a project or timing of completion; and

•	The potential lack of adequate building/construction capacity for large development projects.

•	the joint venture may not perform financially or operationally as expected;

•	land values, project costs, sales absorption or other assumptions included in the development plans may cause the joint venture’s operating results to be less than expected;

•	the joint venture may not be able to obtain project loans on acceptable terms;

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•	the joint venture partners may not be able to provide capital to the joint venture in the event external financing or project cash flows are not sufficient to finance the joint venture’s operations;

•	the joint venture partners may not manage the project properly; and

•	disagreements could occur between the joint venture partners that could affect the operating results of the joint venture or could result in a sale of a partner’s interest or the joint venture at undesirable values.

•	natural risks, such as geological and soil problems, earthquakes, fire, heavy rains and flooding and heavy winds;

•	shortages of qualified trades people;

•	reliance on local contractors, who may be inadequately capitalized;

•	shortages of materials;

•	increases in the cost of certain materials; and

•	environmental remediation costs.

•	quarterly fluctuations in our operating results;

•	changes in investors’ and analysts’ perception of the business risks and conditions of our business;

•	our ability to meet the earnings estimates and other performance expectations of financial analysts or investors;

•	unfavorable commentary or downgrades of our stock by equity research analysts;

•	fluctuations in the stock prices of our peer companies or in stock markets in general; and

•	general economic or political conditions.

•	division of our board of directors into three classes, with each class serving a staggered three-year term;

•	removal of directors by stockholders by a supermajority of two-thirds of the outstanding shares;

•	ability of the board of directors to authorize the issuance of preferred stock in series without stockholder approval; and

•	prohibitions on our stockholders that prevent them from acting by written consent and limitations on calling special meetings.

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Lemons: The increase in fiscal year 2019 was primarily the result of higher volume partially offset by lower prices of fresh lemons sold compared to fiscal year 2018 . A portion of the increased revenue was the result of fresh lemon sales of $14.7 million by Trapani Fresh on 746,000 cartons of fresh lemons sold in fiscal year 2019 . During fiscal years 2019 and 2018 , fresh lemon sales were $110.1 million and $83.9 million , respectively, on 5.2 million and 3.3 million cartons of fresh lemons sold at average per carton prices of $21.00 and $25.42 , respectively. Lemon revenues in fiscal year 2019 included $15.6 million shipping and handling, $10.8 million lemon by-products and $13.5 million other lemon sales. Other lemon sales in fiscal year 2019 included $2.9 million of lemon sales in Chile by PDA and San Pablo and $9.5 million of brokered fruit sales, of which $8.8 million is due to the adoption of FASB ASU 2014-19 . Lemon revenues in fiscal year 2018 included $9.0 million shipping and handling, $4.4 million lemon by-products and $6.5 million other lemon sales. Other lemon sales in fiscal year 2018 included $2.3 million of lemon sales in Chile by PDA and $1.1 million of commissions earned on 912,000 cartons of brokered fruit sales.

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Avocados: The decrease in fiscal year 2019 was the result of lower volume partially offset by higher prices of avocados sold. The California avocado crop typically experiences alternating years of high and low production due to plant physiology. During fiscal years 2019 and 2018 , 1.8 million and 6.3 million pounds of avocados were sold, respectively, at average per pound prices of $1.72 and $1.04 , respectively. Higher prices in fiscal year 2019 were primarily related to lower supply of fruit in the marketplace. Fiscal year 2019 avocados revenues included approximately $2.3 million of crop insurance.

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Navel and Valencia oranges: The decrease in fiscal year 2019 was primarily due to lower prices partially offset by higher volume of oranges sold. During fiscal years 2019 and 2018 , sales consisted of 907,000 and 712,000 40-pound carton equivalents of oranges sold at average per carton prices of $6.64 and $12.48 , respectively. Oranges revenues in fiscal year 2019 and 2018 include $0.3 million of orange sales in Chile.

•	Specialty citrus and other crops: The slight increase in fiscal year 2019 was primarily the result of higher volume of wine grapes and pistachios sold offset by lower specialty citrus revenues compared to fiscal year 2018 . In fiscal year 2019 , we sold

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Packing costs: Packing costs consist of the costs to pack lemons for sale such as labor and benefits, cardboard cartons, fruit treatments, packing and shipping supplies and facility operating costs. Lemon packing costs were $37.7 million and $21.4 million in fiscal years 2019 and 2018 , respectively. The increase in fiscal year 2019 was primarily attributable to higher average per carton costs and higher volume of fresh lemons packed and sold compared to fiscal year 2018 . In fiscal year 2019 , we packed and sold 5.2 million cartons of lemons at average per carton costs of $7.20 compared to 3.3 million cartons of lemons sold at average per carton costs of $6.48 in fiscal year 2018 . The increase in average per carton costs in fiscal year 2019 compared to fiscal year 2018 is primarily due to increased volume of lemon by-products and $5.8 million of operating costs incurred at the Oxnard Lemon facility. Additionally, packing costs include $3.2 million of shipping costs in fiscal year 2019 compared to $1.7 million in fiscal year 2018 .

•	Harvest costs: The increase in fiscal year 2019 was primarily attributable to increased volume of lemons and Navel oranges and specialty citrus harvested partially offset by decreased volume of avocados harvested compared to fiscal year 2018 .

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Growing costs: Growing costs, also referred to as cultural costs, consist of orchard maintenance costs such as cultivation, fertilization and soil amendments, pest control, pruning and irrigation. The increase in fiscal year 2019 is primarily due to net increased costs for fertilization and soil amendments and pruning in addition to San Pablo and Trapani Fresh growing costs compared to the same period in fiscal year 2018 . These net increases reflect farm management decisions based on weather, harvest timing and crop conditions.

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Third-party grower costs: We sell lemons that we grow and lemons that we procure from other growers. The cost of procuring lemons from other growers is referred to as third-party grower costs. The increase is primarily due to higher volume of third-party grower lemons sold. Of the 5.2 million and 3.3 million cartons sold during fiscal years 2019 and 2018 , respectively, 3.1 million ( 60% ) and 1.5 million ( 45% ) were procured from third-party growers at average per carton prices of $15.52 and $20.89 , respectively. Additionally, in fiscal year 2019 we incurred $9.0 million of costs for purchased, packed fruit for resale compared to $0.4 million in fiscal year 2018 .

•	Depreciation expense in fiscal year 2019 was $1.4 million higher than fiscal year 2018 primarily due to the acquisitions of San Pablo, Oxnard Lemon and Trapani Fresh and an increase in assets placed into service.

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•	$3.2 million in Trapani Fresh selling, general and administrative expenses;

•	$0.8 million increase in legal, consulting and other administrative expenses primarily associated with our acquisition of Trapani Fresh in May 2019;

•	$0.4 million increase in lemon selling expenses primarily due to an increase in personnel; and

•	$0.7 million increase in other selling, general and administrative expenses, including certain corporate overhead expenses.

•	$1.0 million increase in interest expense as a result of higher debt;

•	$2.5 million increase in equity in earnings of investments primarily from LLCB;

•	$4.3 million decrease in the gain on sales of stock in Calavo; and

•	$2.1 million in unrealized loss on stock in Calavo in fiscal year 2019.

•	Lemons: The increase in fiscal year 2018 was primarily the result of higher prices and volume of fresh lemons sold compared to fiscal year 2017. During fiscal years 2018 and 2017, fresh lemon sales were $83.9 million and $76.5 million, respectively, on 3.3 million and 3.2 million cartons of fresh lemons sold at average per carton prices of $25.42 and $23.91, respectively.

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Avocados: The decrease in fiscal year 2018 was primarily due to lower prices. The California avocado crop typically experiences alternating years of high and low production due to plant physiology. During fiscal years 2018 and 2017, 6.3 million pounds of avocados were sold each year at average per pound prices of $1.04 and $1.51, respectively. Lower prices in fiscal year 2018 are the result of higher supply of imported fruit in the marketplace.

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Navel and Valencia oranges: The increase in fiscal year 2018 was primarily due to higher prices for oranges sold partially offset by lower volume. During fiscal years 2018 and 2017, orange sales were $8.9 million and $7.1 million, respectively, on 712,000 and 893,000 40-pound carton equivalents of oranges sold at average per carton prices of $12.48 and $7.95, respectively. Orange revenues in fiscal year 2018 and 2017 include $0.5 million and $0.3 million, respectively, of orange sales in Chile.

•	Specialty citrus and other crops: The slight increase in fiscal year 2018 was primarily the result of higher specialty citrus revenues offset by lower volume of pistachios and wine grapes sold compared to fiscal year 2017. In fiscal year 2018, we sold approximately 600 tons of wine grapes for $0.9 million compared to approximately 800 tons of wine grapes for $1.2 million in fiscal year 2017.

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Packing costs: Packing costs consist of the costs to pack lemons for sale such as labor and benefits, cardboard cartons, fruit treatments, packing and shipping supplies and facility operating costs. Lemon packing costs were $21.4 million and $21.6 million in fiscal years 2018 and 2017, respectively. The decrease in fiscal year 2018 was primarily attributable to lower average per carton costs partially offset by higher volume of fresh lemons packed and sold compared to fiscal year 2017. In fiscal year 2018, we packed and sold 3.3 million cartons of lemons at average per carton costs of $6.48 compared to 3.2 million cartons of lemons sold at average per carton costs of $6.75 in fiscal year 2017. Additionally, packing costs include $1.7 million of shipping costs in fiscal year 2018 compared to $1.3 million in fiscal year 2017. Further, in fiscal year 2017 we incurred $2.2 million of packing service charges from an independent packinghouse to have a portion of our oranges and specialty citrus packed in Limoneira branded cartons.

•	Harvest costs: The decrease in fiscal year 2018 was primarily attributable to decreased volume of Navel oranges and specialty citrus harvested partially offset by increased volume of lemons harvested compared to fiscal year 2017.

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Growing costs: Growing costs, also referred to as cultural costs, consist of orchard maintenance costs such as cultivation, fertilization and soil amendments, pest control, pruning and irrigation. The increase in fiscal year 2018 is primarily due to net increased costs of $2.2 million for cultivation, fertilization and soil amendments, and irrigation plus San Pablo growing costs compared to the same period in fiscal year 2017. These net increases reflect farm management decisions based on weather, harvest timing and crop conditions.

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Third-party grower costs: We sell lemons that we grow and lemons that we procure from other growers. The cost of procuring lemons from other growers is referred to as third-party grower costs. The increase is primarily due to higher price and volume of third-party grower lemons sold. Of the 3.3 million and 3.2 million cartons sold during fiscal years 2018 and 2017, respectively, 1.5 million (45%) and 1.4 million (44%) were procured from third-party growers at average per carton prices of $20.89 and $19.02, respectively. Additionally, in fiscal year 2018 we incurred $0.4 million of costs for purchased, packed fruit for resale compared to $0.2 million in fiscal year 2017.

•	Depreciation expense in fiscal year 2018 was $0.8 million higher than fiscal year 2017 primarily due to the acquisitions of San Pablo and Oxnard Lemon and an increase in assets placed into service.

•	$0.5 million increase in legal, consulting and other administrative expenses primarily associated with our acquisitions in July 2018;

•	$0.5 million increase in administrative salaries, benefits and incentive compensation;

•	$0.4 million net increase in lemon selling expenses primarily due to an increase in personnel; and

•	$0.7 million net increase in other selling, general and administrative expenses, including certain corporate overhead expenses.

•	$0.7 million decrease in net interest expense as a result of lower debt levels;

•	$0.5 million increase in equity in earnings of investments primarily from Limco Del Mar, Ltd. and Rosales; and

•	$4.2 million gain on the sales of stock in Calavo in fiscal year 2018.

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•	Harvest costs for fiscal year 2019 were $5.6 million higher than fiscal year 2018 .

•	Growing costs for fiscal year 2019 were $1.3 million higher than fiscal year 2018 .

•	Third-party grower costs for fiscal year 2019 were $25.8 million higher than fiscal year 2018 .

•	Transportation costs for fiscal year 2019 were $3.3 million higher than fiscal year 2018 .

•	Intersegment costs and expenses for fiscal year 2019 were $10.1 million higher than fiscal year 2018 .

•	Avocado harvest costs for fiscal year 2019 were $0.8 million lower than fiscal year 2018 .

•	Growing costs for fiscal year 2019 were $0.5 million lower than fiscal year 2018 .

•	Navel and Valencia orange revenue in fiscal year 2019 was $2.9 million lower than fiscal year 2018 .

•	Specialty citrus and other crop revenue for fiscal year 2019 was $0.1 million higher than fiscal year 2018 .

•	Harvest costs for fiscal year 2019 were $0.6 million higher than fiscal year 2018 .

•	Growing costs for fiscal year 2019 were $2.9 million higher than fiscal year 2018 .

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•	Harvest costs for fiscal year 2018 were $0.2 million higher than fiscal year 2017.

•	Growing costs for fiscal year 2018 were $1.5 million higher than fiscal year 2017.

•	Third-party grower costs for fiscal year 2018 were $4.9 million higher than fiscal year 2017.

•	Intersegment costs and expenses for fiscal year 2018 were $0.8 million higher than fiscal year 2017.

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•	Avocado harvest costs for fiscal year 2018 were similar to fiscal year 2017.

•	Growing costs for fiscal year 2018 were $0.3 million higher than fiscal year 2017.

•	Navel and Valencia orange revenue in fiscal year 2018 was $1.8 million higher than in fiscal year 2017.

•	Specialty citrus and other crop revenue for fiscal year 2018 was similar to fiscal year 2017.

•	Orange and specialty citrus packing service charges for fiscal year 2018 were zero compared to $2.2 million in fiscal year 2017. In fiscal year 2017, we contracted with an independent packinghouse to pack a portion of our oranges and specialty citrus in Limoneira branded cartons.

•	Harvest costs for fiscal year 2018 were $0.4 million lower than fiscal year 2017.

•	Growing costs for fiscal year 2018 were $0.4 million higher than fiscal year 2017.

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Total revenues increased $21.8 million in the three months ended October 31, 2019 compared to the three months ended October 31, 2018 primarily due to increased lemon and orange crop revenues of $16.9 million and $1.9 million , respectively, in addition to $2.3 million in avocado crop insurance revenue. During the fourth quarter of fiscal year 2019 , we sold 793,000 cartons of fresh lemons, including 498,000 cartons procured from third-party growers, at an average per carton price of $21.46 , compared to 239,000 cartons of fresh lemons, including 150,000 cartons procured from third party growers, at an average per carton price of $29.71 in the fourth quarter of fiscal year 2018 . The increase in orange revenues in the fourth quarter of fiscal year 2019 compared to the fourth quarter of fiscal year 2018 was primarily due to higher brokered fruit sales.

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Total costs and expenses increased $15.8 million in the three months ended October 31, 2019 compared to the three months ended October 31, 2018 primarily due to increases in agribusiness costs of $16.2 million . The increase in agribusiness costs is primarily due to increased third-party grower, packinghouse and harvest costs and expenses of $10.1 million , $3.9 million and $1.9 million , respectively. These costs increased primarily due to higher volume of lemon cartons packed and sold and the acquisitions of Oxnard Lemon and Trapani Fresh.

•	Total other income decreased $5.2 million in the three months ended October 31, 2019 compared to the three months ended October 31, 2018 primarily due to the $4.2 million gain on the sale of stock in Calavo in fiscal year 2018.

•	Income tax benefit decreased $0.8 million in the three months ended October 31, 2019 compared to the three months ended October 31, 2018 primarily due to the decrease in pre-tax loss of $0.8 million .

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Net (loss) income was $(5.5) million , $20.2 million and $6.5 million for fiscal years 2019 , 2018 and 2017 , respectively. The components of net income in fiscal year 2019 compared to fiscal year 2018 consist of a decrease in operating income of $15.0 million , an increase in total other expense of $5.0 million and a decrease in income tax benefit of $5.6 million . The components of net income in fiscal year 2018 compared to fiscal year 2017 consist of a decrease in operating income of $2.3 million, an increase in total other income of $5.2 million and an increase in income tax benefit of $10.8 million.

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The adjustments to reconcile net (loss) income to net cash provided from operating activities provided $7.8 million of cash in fiscal year 2019 compared to using $1.4 million of cash in fiscal year 2018 primarily due to an increase in gain from disposals of assets, a decrease in deferred taxes, a decrease in loss on sale of stock in Calavo and an increase in unrealized loss on stock in Calavo. The adjustments to reconcile net income to net cash provided from operating activities used $1.4 million in cash in fiscal year 2018 compared to providing $11.2 million of cash in fiscal year 2017 primarily due to a decrease in deferred taxes and an increase in loss on sale of stock in Calavo.

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The changes in operating assets and liabilities, net of business combinations used $1.0 million of operating cash in fiscal year 2019 compared to using $0.4 million of operating cash in fiscal year 2018, primarily due to a decrease in cultural costs, an increase in prepaid expenses and other current assets, a net increase in accounts and growers payable and a decrease in accrued liabilities. The changes in operating assets and liabilities, net of business combinations used $0.4 million of operating cash in fiscal year 2018 compared to providing $0.7 million of operating cash in fiscal year 2017, primarily due to an increase in accounts receivable, an increase in cultural costs, an increase in income taxes receivable and an increase in accrued liabilities.

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Capital expenditures for fiscal year 2019 were comprised of $14.1 million for property, plant and equipment primarily related to orchard and vineyard development and the purchase of a photovoltaic solar array and $1.8 million for real estate development projects. Additionally, in fiscal year 2019, we purchased an agriculture property for $0.4 million, contributed $4.0 million to the Joint Venture for the development of our East Area I real estate development project and paid $15.0 million for the Trapani Fresh joint venture formation in Argentina. Further, we sold 50,000 shares of stock in Calavo for $4.8 million and sold property assets and a real estate development parcel for $4.0 million and $2.9 million, respectively.

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Capital expenditures for fiscal year 2018 were comprised of $12.2 million for property, plant and equipment primarily related to orchard and vineyard development and $1.7 million for real estate development projects. Additionally, in fiscal year 2018, we purchased San Pablo for $13.1 million, Oxnard Lemon for $25.0 million, a real estate development parcel for $1.4 million and contributed $3.5 million to the Joint Venture for the development of our East Area I real estate development project. Further, we sold 50,000 shares of stock in Calavo for $4.7 million and a real estate development parcel for $1.5 million.

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Capital expenditures for fiscal year 2017 were comprised of $11.6 million for property, plant and equipment primarily related to orchard and vineyard development and $1.3 million for real estate development projects. Additionally, in fiscal year 2017, we purchased PDA for $5.7 million and contributed $7.5 million to the Joint Venture for the development of our East Area I real estate development project.

•	The $22.4 million of cash provided by financing activities for fiscal year 2019 is primarily comprised of net borrowings of long-term debt in the amount of $28.9 million . Additionally, we paid common and preferred dividends, in aggregate, of $5.8 million in fiscal year 2019 .

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•	The $32.5 million of cash provided by financing activities for fiscal year 2018 is primarily comprised of net proceeds from our public offering of common stock of $64.1 million partially offset by net repayments of long-term debt in the amount of $26.4 million. Additionally, we paid common and preferred dividends, in aggregate, of $4.5 million in fiscal year 2018.

•	The $8.4 million of cash provided by financing activities for fiscal year 2017 is primarily comprised of net borrowings of long-term debt in the amount of $12.5 million partially offset by common and preferred dividends, in aggregate, of $3.7 million in fiscal year 2017.

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•	Term Loan Maturing November 2022. As of October 31, 2019 , we had $2.0 million outstanding under the Farm Credit West Term Loan that matures in November 2022. On October 1, 2019, the term loan was converted to a fixed rate of 3.76% and is payable in quarterly installments through November 2022. This term loan is secured by certain of our agricultural properties.

•	Term Loan Maturing October 2035. As of October 31, 2019 , Windfall had $1.1 million outstanding under the Farm Credit West Term Loan that matures in October 2035. On October 1, 2019, the term loan was converted to a fixed rate of 4.14% and is payable in monthly installments through October 2035. This term loan is secured by the Windfall Farms property.

•	Term Loan Maturing March 2036. As of October 31, 2019 , we had $8.8 million outstanding under the Farm Credit West Term Loan that matures in March 2036. On October 1, 2019, the term loan was converted to a fixed rate of 4.17% and is payable in monthly installments through March 2036. This term loan is secured by certain of our agricultural properties.

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Term Loan Maturing March 2036. As of October 31, 2019 , we had $6.5 million outstanding under the Farm Credit West Term Loan that matures in March 2036. This loan bears interest at a fixed rate of 3.62% until March 2021, becoming variable for the remainder of the loan at a variable rate equal to an internally calculated rate based on Farm Credit West’s internal monthly operations and their cost of funds and generally follows the changes in the 90-day treasury rates in increments divisible by 0.25%. This term loan is payable in monthly installments through March 2036 and is secured by certain of our agricultural properties.

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•	Identify the contract(s) with a customer.

•	Identify the performance obligations in the contract.

•	Determine the transaction price.

•	Allocate the transaction price to the performance obligations in the contract.

•	Recognize revenue when (or as) the entity satisfies a performance obligation.

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•	Identify the contract(s) with a customer.

•	Identify the performance obligations in the contract.

•	Determine the transaction price.

•	Allocate the transaction price to the performance obligations in the contract.

•	Recognize revenue when (or as) the entity satisfies a performance obligation.

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•	A lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and

•	A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.

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