An American Agribusiness... Built for Today's World

For the Investment Community

Keeping you Informed

Press Releases

Alico Reports First Quarter Earnings

Download PDF

LABELLE, Fla., Feb. 15, 2008 (PRIME NEWSWIRE) -- Alico, Inc. (Nasdaq:ALCO), a land management company, announced net earnings for the first quarter of fiscal year 2008 of $2.8 million, or $0.38 per share, compared with net earnings of $2.6 million, or $0.35 per share, during the three months ended December 31, 2006.

Operating revenues during the first quarter of fiscal year 2008 totaled $23.6 million, compared with $26.5 million for the three months ended December 31, 2006.

John R. Alexander, Chairman and Chief Executive Officer, noted, "The decrease in operating revenues for the three months ended December 31, 2007 was due to decreased revenues from operations, primarily citrus, as a result of lower prices in the current fiscal year."


                           Operating revenues       Gross Profits
                           Three months ended    Three months ended 
                               December 31,          December 31,
                             2007       2006       2007       2006
                          ---------  ---------  ---------  ---------
 Revenues
  Agriculture:
  Bowen Brothers Fruit    $   7,815  $   7,633  $     103  $     209
  Citrus groves               4,665      6,172        820      2,464
  Sugarcane                   3,221      3,738        (30)      (406)
  Cattle                        486      3,653       (372)       618
  Alico Plant World             902        749         69        258
  Vegetables                  1,724      1,117        324        (99)
  Sod                           196        349       (120)       147
                          ---------  ---------  ---------  ---------
  Agriculture operations     19,009     23,411        794      3,191
  Real estate operations      3,869      2,447      2,978      2,207
  Land leasing and rentals      536        259        459        187
  Mining royalties              140        411        109        370
  General and 
   administrative                --         --     (3,001)    (3,167)
                          ---------  ---------  ---------  ---------
 Total Operations         $  23,554  $  26,528  $   1,339  $   2,788
 Profit on bulk real 
  estate sales                  817      1,870        817      1,292
 Interest and 
  investments, net            4,333      1,626      1,867        365
 Other                          265         74        265         74
                          ---------  ---------  ---------  ---------
 Total                    $  28,969  $  30,098      4,288      4,519
 Provision for income 
  taxes                                             1,498      1,939
                                                ---------  ---------
 Net income                                     $   2,790  $   2,580
                                                =========  =========

 Earnings per share                             $    0.38  $    0.35
                                                ====================

Addressing the divisional results for the quarter, Mr. Alexander noted that:



 -- Citrus prices have declined an estimated 20% during fiscal year
    2008 from their prior year levels.  For this reason, the Company
    expects profits from its citrus groves to be lower in fiscal year
    2008 when compared with fiscal year 2007.  Prices have declined in
    the Florida citrus industry due to an increasing supply of citrus
    as groves have recovered from the damages brought on by the
    hurricanes of 2004 and 2005.

 -- Fewer calves were sold during the three months ended December 31,
    2007 compared with the three months ended December 31, 2006.  As a
    result, cattle revenues decreased from their prior year levels.
    Additionally, due to a decline in calving caused by the reduced
    size of the cattle herd and herd stress brought about by a severe
    drought, the cost per calf has increased and as a result unit
    margins have suffered.  Consequently, cattle operations are not
    expected to perform as well in fiscal year 2008 as they did in
    fiscal year 2007.

 -- The Company restructured a contract in October 2007, with the
    terms to be retroactive to the original closing in July 2005. The
    Company recognized approximately $0.8 million of non-operating
    gain and interest income of $1.5 million in connection with the
    restructure.

On September 28, 2007, the Board of Directors of the Company approved a change in the Company's fiscal year end from August 31 to September 30. The fiscal year change is effective beginning with the Company's 2008 fiscal year. The Company's 2008 fiscal year began on October 1, 2007 and will end September 30, 2008, resulting in a one month transition period that began September 1, 2007 and ended September 30, 2007.

About Alico, Inc.

Alico, Inc., a land management company operating in Central and Southwest Florida, owns approximately 135,500 acres of land located in Collier, Glades, Hendry, Lee and Polk counties. Alico is involved in various agricultural operations and real estate activities. Alico's mission is to grow its asset values through its agricultural and real estate activities to produce superior long-term returns for its shareholders.

Statements in this press release that are not statements of historical or current fact constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements include expectations regarding the future performance of the Company's operating divisions. Such forward-looking statements involve known and unknown risks, uncertainties and other unknown factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission.

Alico, Inc.
John R. Alexander
(863) 675-2966
La Belle, Florida