Good day and welcome to the Limoneira's Third Quarter Fiscal Year 2014 Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Laura Miller of ICR. Please go ahead.

Good afternoon, everyone, and welcome to Limoneira Company's third quarter fiscal year 2014 conference call. On the call today are Harold Edwards, President and Chief Executive Officer; and Joe Rumley, Chief Financial Officer. By now everyone should have access to the third quarter fiscal 2014 earnings release which went out today at approximately 4.00 PM Eastern Time. If you've not had a chance to review the release, it's available on the Investor Relations portion of the Company's Web-site at limoneira.com. This call is being webcast and a replay will be available on Limoneira's Web-site as well. Before we begin, we would like to remind everyone that the prepared remarks contain forward-looking statements and management may make additional forward-looking statements in response to your questions. Such statements involve a number of known and unknown risks and uncertainties, many of which are outside the Company's control that could cause its future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risk detailed in the Company's 10-Qs and 10-Ks filed with the SEC and those mentioned in the earnings release. Except as required by law, we undertake no obligation to update any forward-looking or other statements herein whether as a result of new information, future events, or otherwise. Also, within the Company's earnings release and in today's prepared remarks, we include EBITDA which is a non-GAAP financial measure. A reconciliation of EBITDA to the most directly comparable GAAP financial measure is included in the Company's press release which has been posted on our Web-site. And with that, it's my pleasure to turn the call over to the Company's President and CEO, Mr. Harold Edwards. Go ahead, Harold.

Thanks, Laura. Good afternoon, everyone, and thank you for joining us. On today's call, I'll begin with a brief overview of some financial highlights for the quarter and provide an update on our progress across all of our business areas. Joe will review the financial results for the third quarter in more detail, and I'll then discuss our 2014 outlook and open the call up for your questions. We are pleased to report very strong top and bottom line results for the third quarter, our seasonally strongest quarter of the year. We delivered top line growth of 22%, highlighting our expanding agribusiness, the robust growth of our lemon business as well as higher than historical lemon prices. In addition to our strong top line growth, we achieved significant improvements in adjusted EBITDA and operating income, which have increased by approximately 70% and 100% respectively in the first nine months of fiscal year 2014 compared to the prior year period. Based on our financial performance in the third quarter and outlook for the remainder of the year, we are raising our previously issued guidance which I'll review later during today's call. In the first nine months of fiscal year 2014, we generated operating cash flow of $17.8 million. This has enabled us to make strategic investments into our business and continue to pay down our debt. We have reduced our long-term debt by $10 million year-to-date, strengthening our balance sheet and positioning us to capitalize on additional investment opportunities in the future. We're excited about the momentum for Limoneira and continue to make progress across all aspects of our business. First, regarding our agribusiness, we're benefiting from the additional 2,300 agricultural acres that we acquired or leased in the last few years and a very strong pricing environment for our lemons.…

Thank you, Harold. Good afternoon, everyone. For the third quarter ended July 31, 2014, revenue was up 22% to $36.5 million compared to the third quarter of fiscal year 2013. Agribusiness revenue increased 23% to $35.2 million, primarily reflecting higher lemon revenue. Rental operations revenue was $1.2 million in the third quarter of fiscal year 2014 compared to $1.1 million in the third quarter of last year. Our third quarter 2014 agribusiness revenue includes $26.8 million in lemon sales compared to $19.1 million of lemon sales during the same period of fiscal year '13, primarily reflecting a higher average price per carton due to more favorable market conditions as well as a slight increase in cartons of lemons sold. Lemon prices we are currently enjoying are significantly higher than historical averages and while we expect favorable prices to continue for the remainder of the year, we anticipate a settling back to historical averages in the coming months. We generated avocado sales of $6.1 million in the third quarter of 2014 compared to $7.7 million in the same period of fiscal year 2013, reflecting lower pounds of avocados sold partially offset by higher prices. We anticipate that avocados sales will increase next year as the physiology of the trees is expected to generate higher fruit volumes in next year. We recognized $1.7 million of orange revenue in the third quarter of 2014 compared to $1.5 million of orange revenue in the same period last year. This increase reflects an increased number of field boxes sold at a higher average price per field box. Specialty citrus and other crop revenues were $470,000 in the third quarter of fiscal 2014 compared to $296,000 in the third quarter of 2013, primarily reflecting higher pistachio revenue compared to the third quarter of '13. Turning to…

Thanks, Joe. Based on our third quarter results and outlook for the remainder of the year, we are raising our previously issued guidance for fiscal year 2014. For the fiscal year ending October 31, 2014, we expect to sell approximately 3 million cartons of fresh lemons and expect to sell approximately 6.7 million pounds of avocados. The avocado harvest was substantially concluded in the third quarter. As a reminder, the California avocado crop typically experiences alternate years of high and low production due to plant physiology. Fiscal year 2014 was a lower avocado production year and fiscal 2015 is expected to be a higher avocado production year. Due to a number of positive factors including the continuation of higher lemon prices than previously expected, we are raising operating income guidance to a range of approximately $12.6 million to $13.7 million compared to previous guidance of approximately $10.6 million to $11.8 million. The expected increased operating income in fiscal year 2014 represents a more than 100% increase over fiscal year 2013 operating income of $5.4 million. Fiscal year 2014 pre-tax earnings are anticipated to be in the range of $13.2 million to $14.2 million compared to previous guidance of $11.3 million to $12.4 million. We now expect fiscal year 2014 earnings per diluted share to be in the range of $0.57 to $0.62 per share compared to our previous guidance of $0.45 to $0.50 per share based on estimated weighted average diluted common shares outstanding of approximately 14.3 million shares. Consistent with the typical seasonality of our agricultural operations, we expect to report a net loss in the fourth quarter. Overall, I'm very pleased with our performance during the first nine months of the year which has enabled us to raise our full-year guidance. We've got several exciting opportunities on the horizon and we believe we are well positioned for a strong year in fiscal year 2015. We anticipate adding the new rental income to our financial results and expect to complete the packinghouse expansion in Santa Paula during fiscal year 2015. We also expect to benefit from our investments in the packing operations in Arizona and in Chile. We plan to continue to invest in our strategic and growth initiatives and capitalize on acquisition opportunities where appropriate. We also expect to break ground on our East Area 1 development project in 2015. And with that, I'd like to now open the call up for your questions. Operator?

(Operator Instructions) We will go to Steve Martin with Slater.

Congratulations. We know lemon pricing was really strong last quarter I guess. Can you talk about lemon pricing for the fourth quarter and how you see it going forward? And additionally, I know you can't project volumes yet for 2015 but if you just look at acreage, planted acreage for lemons, what would you expect your acreage is up on a year-over-year basis?

Steve, I'll go ahead and handle the question on the pricing and then I'll turn it over to Joe on the volume for next year, but essentially we continue to be extremely pleased with lemon pricing. It continues to be robust and well above historic averages. We would have expected to see it begin to decline at this point, primarily due to the importation of Mexican fruit which typically hits the U.S. market at this time of the year. We have seen the importation of that Mexican fruit but due to a slower harvest transition in the desert regions from Coachella Valley all the way over to Yuma, Arizona where we are, we're still experiencing supply constrained environment in the United States and really around the world, and as such pricing continues to hold firm if not slightly increasing. We expect that as the desert kicks into full production mode, call it October, November or our first quarter of next year, we'll begin to see prices begin to come off of where they are today but we've been extremely pleased with these very high prices and continue to benefit from the high pricing.

In addition, in the past there were some drought conditions earlier in the year that resulted in your expectation that your volumes were going to be reduced this year. It seems like you ended up higher than what your original expectation was. Can you comment on that?

So there are eight different sizes and three different grades of fresh lemons that we sell. So part of our thinking in terms of what the actual trees will bear has some relevance related to fruit sizing and ultimately how many pieces of fruit we'll be able to create during the year given what's going on in the market conditions. Remember it was a freeze that really impacted us here in our California and Arizona production that for the rest of the industry stunted production somewhere to the tune of 20% but Limoneira's overall production we believe was sort of comparatively less affected, and as such I have been very pleased with the volumes that have come out, and it looks like we're going to come in pretty close to 3 million cartons to slightly below 3 million cartons for the year. I'll let Joe comment on next year's. What do you see for the volume next year, Joe?

And also just for clarification, earlier in the year we had actually expected between 3 million to 3.3 million. So we had said at different times during the year on that lemon production for this current year. And so with a combination of a slight impact from the freeze that Harold just spoke about and also just a little bit of drought conditions in certain locations here in California, we're going to end up on that lower end of that range. As we look at fiscal 2015, we are pretty early in the thinking but now starting to pull together our budgets and forecasts and volumes, and over the last few years we continue to plant new acreages and all. So I think our early thinking is probably going to be similar to a little bit more on that 3 million to 3.3 million, probably slightly above that, but directionally that way and slightly higher as we start to pull the expected volumes together.

Alright, thank you.

(Operator Instructions) There are no further questions at this time. Mr. Edwards, I will turn the conference back to you for closing remarks.

Great. Thank you for your questions and interest in Limoneira. Over the last several months, we will be attending select investor events and we hope to see many of you there. Thank you again and to everyone have a great day.

This does conclude today's conference. Thank you for your participation.