Calavo Growers amends equity incentive plan following shareholder approval

Calavo Growers , Inc. (NASDAQ:CVGW), a California-based agriculture services company with a market capitalization of $479 million, announced today significant corporate updates following its recent annual meeting of shareholders. According to InvestingPro data, the company maintains a strong financial health score and has consistently paid dividends for 24 consecutive years. The company reported the approval of an amended and restated equity incentive plan and the election of its board of directors.

On Sunday, shareholders approved the Amended and Restated Calavo Growers, Inc. 2020 Equity Incentive Plan, which was previously adopted by the Board on February 27, 2025. The plan’s material terms were outlined in the company’s definitive proxy statement filed on February 28, 2025. This amendment aims to incentivize employees through equity participation, aligning their interests with those of the shareholders.

In addition to the equity plan amendment, shareholders elected eight directors to serve one-year terms. Each director received a significant number of votes for their election, with J. Link Leavens receiving the highest number of votes for and Farha Aslam receiving the lowest.

The meeting also saw shareholders ratify the appointment of Deloitte & Touche LLP as the company’s independent accountants for the fiscal year 2025. Furthermore, the executive compensation disclosed in Calavo Growers’ 2025 proxy statement was approved on an advisory basis.

These updates are based on the latest 8-K filing by Calavo Growers with the Securities and Exchange Commission. The filing provides detailed voting outcomes for each agenda item presented during the annual meeting. The approval of the equity incentive plan and the election of directors highlight the shareholders’ involvement in the company’s governance and their support for the proposed corporate strategies. InvestingPro analysis suggests the stock is currently undervalued, with analysts setting price targets between $29 and $35. Subscribers can access 10+ additional ProTips and detailed financial metrics at InvestingPro.

Investors and interested parties may refer to the full text of the Amended and Restated Calavo Growers, Inc. 2020 Equity Incentive Plan attached as Exhibit 10.1 in the 8-K filing for more detailed information. The company’s CEO, Lecil Cole, signed the report affirming the accuracy of the disclosed information. The company’s financial metrics show a current ratio of 2.23 and low debt levels, with more cash than debt on its balance sheet, indicating strong financial stability.

In other recent news, Calavo Growers reported first-quarter earnings that exceeded analysts’ expectations, posting an adjusted earnings per share of $0.33 compared to the anticipated $0.30. However, the company’s revenue of $154.4 million fell short of the projected $159.85 million, despite a year-over-year increase of 21%. The Fresh segment, including avocados and tomatoes, was a significant contributor, with sales rising 23.7% to $139.9 million, driven by a 30.5% increase in the average price per carton. Gross profit for the quarter increased by 46.2% to $15.7 million, with the Fresh segment’s gross profit surging 88.8% to $12.1 million. Calavo Growers also announced a $25 million stock buyback program, reflecting confidence in its long-term strategy and financial health. The company highlighted its strong balance sheet, with $48.5 million in cash and $96.7 million in available liquidity. Operational efficiencies and cost-cutting measures resulted in a 23.6% reduction in selling, general, and administrative expenses. The adjusted EBITDA nearly tripled to $9.3 million, underscoring the company’s strategic focus on margin improvement.

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